Electronic Commerce: Digital Firm, Digital Goods - Shakili

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5 Νοε 2013 (πριν από 3 χρόνια και 11 μήνες)

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Electronic Commerce:
Digital Firm, Digital
Goods

DIS 302

E
-
Business

Laudon & Laudon

Electronic Business, Electronic
Commerce, and the Emerging Digital
Firm



E
-
commerce refers to:


The use of the Internet and the Web to transact
business


Digitally enabled commercial transactions between
and among organizations and individuals.


GROWTH OF E
-
COMMERCE

THE GROWTH OF E
-
COMMERCE


The rapid growth of e
-
commerce since 1995 is due to
the unique features of the Internet and the Web as a
commercial medium:


Ubiquity:

Internet/Web technology is everywhere, at work,
home, and elsewhere, and anytime, providing a ubiquitous
marketspace
, a marketplace removed from a temporal and
geographical location.


Global reach:

The technology reaches across national
boundaries.


Universal standards:

There is one set of Internet
technology standards, which greatly lower market entry
costs (the costs to bring goods to market) and reduce
search costs

(the effort to find products) for the consumer.

THE GROWTH OF E
-
COMMERCE


Richness:

Information
richness

refers to the
complexity and content of a message. Internet
technology allows for rich video, audio, and text
messages to be delivered to large numbers of
people.


Interactivity:

The technology works through
interaction with the user.

THE GROWTH OF E
-
COMMERCE


Information density:

Information density

is the total
amount and quality of information available to all market
participants. Internet technology reduces information costs
and raises quality of information, enabling
price
transparency

(the ease for consumers of finding a variety
of prices) and
cost transparency

(the ability of consumers
to determine the actual costs of products). Information
density allows merchants to engage in
price
discrimination

(selling goods to targeted groups at
different prices).


Personalization/customization:

E
-
commerce technologies
permit
personalization

(targeting personal messages to
consumers) and
customization

(changing a product or
service based on consumer preference or history.


Digital Markets


Digital markets are very flexible and efficient
because they allow:


Reduced search and transaction costs


Lower menu costs

(merchant's costs of changing
prices)


Price discrimination


Dynamic pricing

(prices changing based on the
demand characteristics of the customer or the seller's
supply situation)


Disintermediation:

Elimination of intermediaries
such as distributors or retailers


Electronic Commerce


The three major types of electronic commerce
are:


Business
-
to
-
consumer (B2C)
: Retailing products and
services to individual shoppers


Business
-
to
-
business (B2B)
: Sales of goods and
services among businesses


Consumer
-
to
-
consumer (C2C)
: Consumers selling
directly to other consumers.


m
-
commerce

is a form of E
-
Commerce but with
the purchase of goods and services using
handheld wireless devices, rather than wired
networks


E
-
Commerce


Marketers can use the interactive features of Web
pages to hold consumers' attention or to capture
information about their tastes and interests. This
information may be obtained by asking visitors to
"register" online and provide information about
themselves or by using special software such as
clickstream tracking

to track the activities of
Web site visitors. Companies can then analyze
this information to develop more precise profiles
of their customers.

WEB SITE VISITOR
TRACKING

Personalization: tailored products and
services


Communications and product offerings can also
be tailored precisely to individual customers.


By using Web personalization technology to
modify Web pages presented to each customer,
marketers can achieve the benefits of using
individual salespeople at dramatically lower costs.


Personalization can help firms form lasting
relationships with customers by providing
individualized content, information and services.

WEB SITE
PERSONALIZATION

Firms can create
unique personalized
Web pages that
display content or ads
for products or
services of special
interest to individual
users, improving the
customer experience
and creating additional
value.

B2B E
-
Commerce


Much of B2B e
-
commerce is still based on
proprietary systems for electronic data
interchange (EDI).
Electronic data
interchange (EDI)

enables automated
computer
-
to
-
computer exchange between two
organizations of standard transactions such as
invoices, bills of lading, shipment schedules,
or purchase orders.

ELECTRONIC DATA
INTERCHANGE (EDI)

Companies use EDI to automate transactions for B2B e
-
commerce and continuous inventory replenishment.
Suppliers can automatically send data about shipments to
purchasing firms. The purchasing firms can use EDI to
provide production and inventory requirements and
payment data to suppliers.

B2B E
-
Commerce


B2B e
-
commerce environments include:


Private industrial networks

or
private
exchanges
: Typically consisting of a large firm
using an extranet to link to its suppliers and other
key business partners.


A private industrial network, also known as a private exchange, links a firm to
its suppliers, distributors, and other key business partners for efficient supply
-
chain management and other collaborative commerce activities.

PRIVATE INDUSTRIAL NETWORK

B2B E
-
Commerce


Net marketplaces

or
e
-
hubs
: Internet
-
based marketplaces
for many different buyers and sellers. Net marketplaces are
industry owned or operate as independent intermediaries
between buyers and sellers, generating revenue from
transaction fees or services to clients. Net marketplaces
may sell direct goods (used in a production process) and
some sell indirect goods. They may support contractual
purchasing based on long
-
term relationships with
designated suppliers, and others support short
-
term spot
purchasing, where goods are purchased based on
immediate needs, often from many different suppliers.
Some net marketplaces may serve vertical markets for
specific industries or horizontal markets, with goods and
services for many industries.

A NET MARKETPLACE


Net marketplaces
are online
marketplaces
where multiple
buyers can
purchase from
multiple sellers.

B2B E
-
Commerce


Exchanges
: Independently owned third
-
party Net
marketplaces that can connect thousands of
suppliers and buyers for spot purchasing. Many
exchanges provide vertical markets for a single
industry. However, many exchanges have failed
because they encourage competitive bidding that
drove prices down without offering long
-
term
relationships.


M
-
Commerce


Although m
-
commerce represents a small
fraction of total e
-
commerce transactions,
revenue has been steadily growing.


Africa has been particularly fast due to greater
reliance on mobile phones


GLOBAL M
-
COMMERCE REVENUE, 2000
-
2009


M
-
commerce sales represent a small fraction of total e
-
commerce sales, but that
percentage is steadily growing.

Source: Jupiter Research; eMarketer, 2006; eMarketer, 2005; authors.

M
-
Commerce


M
-
commerce applications have taken off for
services that are time
-
critical, that appeal to
people on the move, or that accomplish a task
more efficiently than other methods. Popular
m
-
commerce applications include:


Content and location
-
based services:

For
checking travel information, schedules, news,
movie times, weather forecasts, etc


Banking and financial services:

For checking
account balances, transferring funds, paying bills

M
-
Commerce


Wireless advertising:

Selling of advertising space in
m
-
commerce applications, such as sponsored search
results from the go2Directory search site


Games and entertainment:

Downloadable digital
games, movies, music, and ringtones


Because handheld mobile devices can only
display small amounts of information at a time,
m
-
commerce enabled Web sites are being
designed as special
wireless portals

(mobile
portals) with content optimized for smaller
screens.


M
-
Commerce Challenges


Although Wi
-
Fi hotspots are increasing, m
-
commerce faces challenges such as:


Awkwardness and small screens of handheld
devices


Security risks


Slow transfer speeds with second generation cell
networks


Lack of standardized payment systems


Payment Systems


Digital credit card payment systems
: These systems extend the
functionality of credit cards so they can be used for online shopping
payments, providing mechanisms authentication and money
transfers.


Digital wallets
: Digital wallets store credit card, electronic cash,
and owner identification information and provide that information at
an e
-
commerce site's checkout page, making paying for purchases
over the Web more efficient by eliminating the need for shoppers to
repeatedly enter their information into order forms.


Micropayment systems
: These systems use accumulated balance or
stored value payment systems for purchases of less than $10. Many
m
-
commerce transactions are small, frequent purchases for items
such as soft drinks, sports scores, newspapers, or mobile games that
require special micropayment systems.

Payment Systems


Accumulated balance digital payment systems

allow
users to make payments on the Web, accumulating a debit
balance on their credit card or telephone bills.


Stored value payment systems
, including smart cards,
enable users to make instant payments based on the value
stored in a digital account.


Smart cards

(plastic cards that store digital information,
such as health records, identification, or financial data) can
be used for micropayments in a stored value system. A
smart card requires use of a special card reading and writing
device to recharge the card with cash or to transfer cash
either to an online or offline merchant.

Payment Systems


Digital cash

is currency represented in electronic form that
is moving outside the normal network of money. Users are
supplied with client software and can exchange money with
another e
-
cash user.


Peer
-
to
-
peer payment systems

serve people who want to
send money to vendors or individuals who are not set up to
accept credit card payments.


Digital checking systems

extend existing checking
accounts by using a digital signature that can be verified
and can be used for payments in electronic commerce.


Electronic bill presentment and payment services

are
used for paying and managing routine monthly bills
electronically.

Discussion


M
-
Commerce in Kenya


M
-
Pesa


Zap


KCB


Opportunities and challenges

The End