Chapter 05

Overview
• Discover the major applications of e-business, and identify the
services necessary for its support.
• Identify the major types of electronic commerce: business-to-
consumer (B2C), business-to-business (B2B), consumerto-
consumer (C2C), business-to employee (B2E), and government-
to-citizen (G2C).
• Identify M-Commerce
Objectives
After completing this unit, you’ll be able to:
• Describe the six common types of electronic commerce.
• Describe the various online services of business-to-consumer
(B2C) commerce, providing specific examples of each.
• Describe the three business models for business-to-business
electronic commerce.
• Identify M-Commerce
Contents
1. Overview of E-Business and E-Commerce
2. Business-to-Consumer (B2C) Electronic
Commerce
3. Business-to-Business (B2B) Electronic
Commerce
4. Mobile Commerce
 [Opening Case]
The Flash Crash

• The Problem
• A Stopgap Solution
• The Results
• What We Learned from This Case
 [About Business]

•Gemvara
E-Business and E-Commerce [5.1]
 Overview of E-Business and
E-Commerce
• Definitions and Concepts
• Types of E-Commerce
• Major E-Commerce Mechanisms
• Electronic Payment Mechanisms
• Benefits and Limitations of E-
Commerce
 Definitions and Concepts
• Electronic Commerce
- The process of buying, selling, transferring,
or exchanging products, services, or
information via computer networks,
including the Internet.
• Electronic Business (e-business)
- A much broader concept than e-commerce
- Servicing customers, collaborating with
business partners, and performing
electronic transactions within an
organization
Definitions and Concepts (Con’t)

• Degree of digitization
• Brick-and-Mortar organizations
• Virtual Organizations
• Clicks-and-Mortar Organizations
 Types of E-Commerce
• Business-to-consumer (B2C)
• Business-to-business (B2B)
• Consumer-to-consumer (C2C)
• Business-to-employee (B2E)
• E-Government
• Mobile commerce (M-commerce)
Major E-Commerce Mechanisms

• Electronic catalogs
• Electronic auctions
• E-storefronts
• E-malls
• E-marketplaces
 E-Commerce Business Models
1. Online direct marketing
2. Electronic tendering system
3. Name-your-own-price
4. Find-the-best-price
5. Affiliate marketing
6. Viral marketing
7. Group purchasing (e-coops)
 E-Commerce Business Models
(Continued)
8. Online Auctions
9. Product customization
10.Electronic marketplaces
11.Bartering online
12.Deep discounters
13.Membership
 E-Commerce Business Models

Source: Introduction to Information Systems, Supporting and Transforming Business (Rainer, Prince, Cegielski) Fifth Edition, Chapter 07.
 Electronic Payment Mechanisms
•Electronic Checks (e-checks)
•Electronic Cards
-Electronic credit cards
-Virtual credit cards
-Purchasing cards
-Stored-value money cards
-Smart cards
•Person-to-Person Payments
 How e-credit cards work.
(The numbers 1–9 indicate the sequence of activities)

Source: Introduction to Information Systems, Supporting and Transforming Business (Rainer, Prince, Cegielski) Fifth Edition, Chapter 07.
 Benefits of E-Commerce
• National and International markets are more
Accessible
• Lowers costs of processing, distributing, and
retrieving information
• Provides access to a vast number of products
and services 24/7
• Deliver information, services, and products
to people in cities, rural areas, and
developing countries
 Limitations of E-Commerce
• Lack of universally accepted security
standards
• In less-developed countries
telecommunications bandwidth is often
insufficient, and Web access is expensive
• Perceptions that e-commerce is insecure
• Unresolved legal issues
• Lacks a critical mass of buyers and sellers
E-Business and E-Commerce [5.2]
 Business-to-Consumer (B2C)
Electronic Commerce
• Electronic Storefronts and Malls
• Electronic Malls
• Online Service Industries
• Issues in E-Tailing
 Online Services Industry
• Disintermediation
• Cyberbanking
• Online Securities Trading
• The Online Job Market
• Travel Services
• Online Advertising
• Advertising Methods
 Advertising Methods
• Banners
• Pop-up Ad
• Pop-under Ad
• Spamming
• Permission Marketing
• Viral Marketing
 Issues in E-Tailing
• Channel Conflict
• Multichanneling
• Order Fulfillment
 [About Business]
• Macy’s Increases Its Online Presence
• Can Traditional Retailers Survive?
• The Future of Shopping
E-Business and E-Commerce [5.3]
 Business-to-Business (B2B)
Electronic Commerce
• Sell-Side Marketplaces
• Buy-Side Marketplaces
• Electronic Exchanges
E-Business and E-Commerce [5.4]
 Mobile Commerce

•Also known as “M-commerce”

•Drivers of M-commerce
-Widespread availability of mobile
devices
-Declining prices
-Bandwidth improvement
 Mobile Commerce (continued)
• Mobile Commerce Applications Include:
- Location-Based Applications and Services
- Financial Services
- Intrabusiness Applications
- Accessing Information
- Telemetry Applications
[ Closing Case : What’s Your eScore? ]
• The Problem
• One Solution
• The Results
Lesson Summary
You should now be able to:
• Describe the six common types of electronic commerce
• Describe the various online services of business-to-consumer
(B2C) commerce, providing specific examples of each
• Describe the three business models for business-to-business
electronic commerce
• Describe M-Commerce
Unit Summary
You should now be able to:
• Describe the definitions and concepts of e-commerce and e-business
• Describe Types of E-Commerce
• Define E-Commerce Business Models
• Identify Electronic Payment Mechanisms
• Describe Benefits and Limitations of E-Commerce
• Identify Advertising Methods
• Describe Issues in E-Tailing
• Describe three business models for B2B electronic commerce
• Describe M-Commerce
Question & Answers