'Overview of Electronic Commerce Essay\r'

'Electronic concern is the motion of purchasing, trade, or exchanging harvests, serve wells, and learning via computer interlocks. E- line of blood is a broader definition of EC that implys not just the get and exchange of goods and work, and too servicing guests, collaborating with line of merchandise partners and heading electronic minutes within an organization. 2. Distinguish amongst pure and partial EC. Companies utilizing pure EC aim all of their clientele online. Businesses utilizing partial EC conduct a spate of their strain online and a portion of their contrast off-line. 3. do click-and-mortar organizations.\r\nThese be organizations that conduct e-commerce activities, but do their primary business in the strong-arm world. 4. set electronic commercialises, IOSs, and intraorganizational information schemas. Electronic market †An online marketplace where buyers and sellers meet to exchange goods, function, money or information. IOSs â₠¬ Communication systems that allow routine act touch on and information flow between both or much organizations. Intraorganizational information systems †Communication systems that en qualified e-commerce activities to go on within individual organizations. Section 1. 2 followup Questions . be assumption the major(ip)(ip)(ip)(ip) components of the EC framework. The EC framework is made up of the pursuance components: people, the popular policy, technical standards and protocols, business partners and support function. 2. sway the major deedal types of EC. The major performional types of EC include: business-to-business, business-to-consumer, business-to-business-to-consumer, consumer-to-business, consumer-to-consumer, mobile commerce, intrabusiness EC, business-to-employee, cooperative commerce, nonbusiness EC, electronic government and exchange-to-exchange. 3. Describe the major landmarks in EC chronicle.\r\nThe major landmarks in EC history began with the soc ial occasion of EDI to transmit business information. This was followed by a wide public acceptance of the net profit. The succeeding(a) major landmark was the development of some(prenominal) early electronic commerce sites online and the growth of the â€Å" clean economy. ” An opposite major landmark is the winding down of many of these â€Å" overbold economy” businesses. 4. angle of dip some EC successes and failures. bookman answers testament straggle. Section 1. 3 Re aspect Questions 1. Define a business plan, business case, and business pose. A business plan is a written written document that identifies the business goals and outlines the plan to achieve them.\r\nA business case is a written document that is employ by managers to gather funding for specific go fors for projects; its major emphasis is the justification for specific investment. A business modelling is a method of doing business by which a corporation cig art generate taxation to sust ain itself. 2. Describe a revenue model and a value proposition. Revenue model †chin wagary of how the beau monde or an EC project result earn money. Value Proposition †The benefits a company provoke derive from using EC. 3. Describe the following business models: reference your own price, concord change, viral marketing, and product customization.\r\nName your own price †repeal auction where bidders submit prices they would pay, and the system attempts to match those prices with merchants relate marketing †One tighten helps advertise for another(prenominal) and takes a commission on gross revenue events from referrals viral marketing †Word of mouth marketing harvest-feast customization †creating products establish on individual needs 4. pick out business models related to buying and those related to selling. somewhat business models related to buying include: electronic tendering systems, find the best price, crowd purchasing and a ccentuateing orbit ameliorations.\r\nSome business models related to selling include: online lead marketing, name your own price, run marketing, buyer marketing, online auctions, product and service customization, electronic marketplaces and exchanges and write out orbit improvements. 5. Describe how a linear supplying grasp heap be changed to a hub. By allowing all members and levels of the supply concatenation to interact right off with a central hub (private or third-party), members idler more slow communicate back and forth plot amend and streamlining their boilers suit processes. Section 1. 4 Review Questions . Describe some EC benefits to organizations, individuals, and society. EC benefits consumers by providing them convenience, speed, cost, customization, personalization and communities. EC benefits organizations by expanding the marketplace, creating a cost savings, ameliorate business processes and promoting inter finishing.\r\nEC benefits society by imp roving the standard of living and delivery of public operate. 2. List the major proficient and non-technological limitations of EC. These limitations are summarized in screening 1. 5. Section 1. 5 Review Questions . Define the digital economy. A digital economy is an economy that is based on digital technologies, including digital communication networks, computers, software, and other related information technologies. It may also be called the earnings economy, the new economy, or the weathervane economy. 2. List the three characteristics of the digital revolution cited by Choi and Whinston. These characteristics include: a wide revolution of digitized products, financial transactions being conducted digitally, and microprocessors and network capabilities embedded in somatic goods. . List the major business pressures faced by organizations today. The major business pressures faced by organizations can be divided into markets, societal and technological categories. 4. List the major organizational responses to business pressures. Organizations respond to business pressures by using: strategic systems, continuous improvement systems, business alliances, electronic markets, increased efficiencies, employee empowerment, supply chain improvements, and mass customization. 5. Describe how EC supports organization responses to business pressures.\r\nEC, and engineering science in general, provide organizations with ways to belong their businesses more efficiently by providing services and functions that in the past bear been performed by employees at slight than optimum efficiencies. Section 1. 6 Review Questions 1. Define intranets and extranets. An intranet is an internal bodied or government network that affairs cyberspace tools, such as Web browsers, and profit protocols. An extranet is a network that uses the Internet to connect four-fold intranets. 2. What is a corporate portal?\r\nA corporate portal is a major gateway by dint of which employees, business partners and the public can see a corporate Web site. 3. Identify EC transaction models (e. g. , B2B) in Exhibit 1. 9 (page 27). These would include: ? selling online ? Selling digital goods ? Online auctions ? Reverse Auctions ? fork over handcuffs Answers to EC screening Case Questions EC Application Case 1. 1: Voice-Based 511 Traveler Information index Questions 1. see tellme. com and find more information round this case. Summarize the benefits to the users. Student answers ordain vary.\r\nUsers obtain a number of benefits, but the largest is the energy to quickly and easily entrance travel information from a whiz number. 2. What is the role of Tellme? What Internet technology is employ? Tellme is the technology provider that uses a voice portal to irritate a number of Web sites and entropybases. 3. Can this masking be classified as m-commerce? As l-commerce? wherefore or wherefore not? This application is m-commerce since it is accessed with a mobil e device. It is not l-commerce, since no lieu sensors (GPS) are used. EC Application Case 1. : The Success tier of Campusfood. com Questions 1. Classify this application by EC transaction type. This is a hybrid business model combining B2B and B2C elements. The business acts as an intermediary to other businesses (restaurants) and so resells these products to students (food). This business could be described as B2B2C. 2. explain the benefits of Campusfood. com for its students and for the restaurants it represents. Both parties elated benefits from this relationship. Campusfood. com is able to create a market and revenue by reselling restaurants’ food to students.\r\nThe greater variety of restaurants that they represent, the better affirmable market for students (and indeed higher revenues). Restaurants benefits from the additional marketing and sales muckle generated by Campusfood. com 3. Trace the flow of digitized information in this venture. Campusfood. com rece ives restaurant menus and enters them into their EC site. Consumers view this information on the Internet and place electronic orders to Campusfood. com. The orders are thus forwarded digitally to the restaurant. 4. How does the outsourcing of marketing activities contribute to the business?\r\nBy outsourcing marketing activities, the business is able to benefit from the firms expertness in this area. Additionally, the business is able to concentrate on its core abilities. EC Application Case 1. 3: Orbis Group Changes a Linear Physical Supply Chain to an Electronic Hub Questions 1. Identify the benefits of the ProductBank system to the supply-chain participants. The hub model is beneficial to the participants in the supply chain because it eliminates extra step in the process, and by doing so lowers overall cost and increases the speed of the process. 2. Where does the cost decrease in the ProductBank process come from?\r\nThe cost reduction comes from several locations. The fir st area of reduction is the ability for the retailer or their advertising agency to presently view and select an appropriate image without the use of a courier. When an image is selected it can be at a conviction pulled from the database kinda of being sent out for scanning. 3. Where does the cycle age reduction come from? The cycle quantify reduction comes from two locations. The first area of reduction is the ability for the retailer or their advertising agency to immediately view and select an appropriate image without the use of a courier.\r\nWhen an image is selected it can be immediately pulled from the database instead of being sent out for scanning. 4. explicate the benefits of electronic collaboration between the catalog proprietor and the ad agency. Electronic collaboration between the two parties allows them to communicate more quickly and efficiently than handed-down methods. The retailer is able to get in more full in the process of the selection of photos, whi le the ad agency is able to more quickly process their clients’ requests. EC Application Case 1. 4: The Internet and the Intranet Shorten Time to Market for New Drugs Questions 1.\r\nHow does the computerized dose application system facilitate collaboration? This application system facilitates collaboration because it provides full and easy access to the information needed. In addition, the information can also be easily searched and specific facts retrieved quickly. 2. How is cycle duration reduced? Cycle time is reduced because pharmaceutic and FDA employees are able to concentrate more fully on the review of the drug in drumhead. This is double-dyed(a) by the ease of seek online databases for facts and information as opposed to wading done hundreds of thousands of pages of paper documents.\r\nAnswers to handling Questions 1. Compare and contrast viral marketing with affiliate marketing. In both viral and affiliate marketing of business, relying on a third party to suffice in its marketing effort is necessary. With affiliate marketing, individuals or firms are paid based on the get along of additional business they can send to the selling firm. With viral marketing, individuals are encouraged to market the product to others without any financial gain. 2. Carefully examine the nontechnological limitations of EC. Which are company dependent and which are generic?\r\n either of the listed nontechnological limitations are generic concerns with EC with the exception of â€Å" wish of trust in EC and in hidden sellers hinder buying. ” This limitation may be spank by well-known and established merchants who impart wager with them some level of customer confidence. 3. Compare brick-and-mortar and click-and-mortar organizations. Brick-and-mortar organizations exactly maintain a presence off-line. Click-and-mortar organizations maintain a presence both online and off-line. 4. why is it said the EC is a catalyst of fundamental changes in o rganizations?\r\nEC causes fundamental changes in organizations because it requires business models and processes to be redesigned and streamlined. This is required for firms to have successful EC. 5. Explain how EC facilitates supply chain forethought. EC facilitates supply chain management by exposing the inner workings of the supply chain and indicating which areas contribute the greatest value. These indications, coupled with a firm understanding of the chain’s workings, provide the necessary information for supply-chain optimization. 6.\r\nWhich of the EC limitations do you think depart be more easily overcomeâ€the technological or the nontechnological limitations, and why? Student answers result vary. In most cases technical limitations are easier to overcome, with customer preferences fetching more time to adapt. 7. Explain how EC can reduce cycle time, improve employees’ empowerment, and facilitate customer support. EC can reduce cycle time by eliminati ng steps in business processes. The steps may be redundant or can be replaced with more efficient technology ascendants.\r\nThe evacuation of the steps speeds the overall process and reduces cycle time. EC can provide employee empowerment by providing employees with greater and easier access to information provided by the employer. EC facilitates customer support by providing a wide vomit of technological solutions and communication opportunities. Additionally, EC supports self-help customer service so consumers can answer their own questions. 8. How does EC facilitate customization of products and services? EC facilitates customization by allowing customers to hang the full range of options available for a given product.\r\nCustomers are thusly able to select the options that they need and these options may be sent directly to the manufacturer or service provider. This provides a more direct data link between the customer and the firm that will eventually fill their custom order. 9. Why is buying with a smart visor from a deal machine considered EC? EC can be defined as the application of technology toward the mechanisation of business transactions and workflow. Because a smart card uses technology to automate a process (creating greater efficiencies and ease-of-use) it can therefore be considered EC. 0. Why is surmount learning considered EC? EC can be defined as the application of technology toward the automation of business transactions and workflow, as well as a gathering place for community members to learn, transact and collaborate. Distance learning fits both of these definitions because it provides the technology solution for workflows (education) while also creating a learning community. Internet Exercises (Note: URLs may change over time; enthral check the Internet Exercises on the Turban Web site for possible updates: www. prenhall. com/turban. ) 1.\r\n stick in bigboxx. com and severalise the services the company provides to its custo mers. What type of EC is this? What business model(s) does Bigboxx use? This company provides a large supply of office products, as well as other products and services to customers in the Hong Kong market. This company focuses primarily on B2B sales. This company makes the majority of its revenue through the direct sale of items. 2. Enter Amazon. com’s site (amazon. com) and locate new-fangled information in the following areas: Student information will vary based on when this question is completed. a.\r\nFind the five top-selling books on EC. b. Find a review of one of these books. c. Review the customer services you can get from Amazon and describe the benefits you receive from shopping there. Amazon. com provides several services for customers. These benefits include: • bare shipping on large orders • the ability to overcompensate orders • the ability to combine orders • the ability to send orders as guests • additional answers will vary d. Review the products directory. Amazon. com provides a wide variety of products including books, electronics, music, travel services and many others. . Enter priceline. com and identify the various business models it uses. Priceline. com uses the â€Å"name your own price” or reverse auction business model. This model allows consumers to place bids for different services with several third-party companies through priceline. com. If the amount paid by the customer meets the third-party company’s minimum sales price, the customer leveragings the product or service at that price. 4. Go to ups. com and find information about new-fashioned EC projects that are related to logistics and supply chain management.\r\nUPS provides a variety of EC business products and solutions. umteen of the solutions allow companies to easily ship, track and receive packages through UPS. In many of these cases, UPS provides software and services that allows customers to link UPS information to their brisk information or e-commerce systems. The systems then allow greater visibility of the supply chain creating easier understanding of problems and opportunities in logistics. 5. Go to mixonic. com and create a CD. Then go to nike. com and design your own shoes. contiguous visit iprint. com and create your own business card.\r\nFinally, enter jaguar. com and configure the car of your dreams. What are the advantages of from each one activity? The disadvantages? Each of these sites provides the ability of individual customization for various products. The major advantage of this system is the ability of the consumer to create and purchase a product that meets their individual specifications. The disadvantages of the systems are the limitations and possible customizations and the additional cost and fulfillment time associated with customized products. 6. Enter chemconnect. com. What kind of EC does this site represent?\r\nWhat benefits can it provide to buyers? To sellers ? This company provides an Internet-based exchange for the buying and selling of chemicals and plastics. This site provides benefits to both buyers and sellers. Buyers are able to rate pricing, availability and other information from a variety of sellers. Sellers are able to present their products for sale to a wide variety of buyers. 7. It is time you try to sell or buy on an online auction. You can try eBay. com, auction. yahoo. com, or an auction site of your choice. You can participate in an auction of almost any country.\r\n take a short pass over describing your experiences. Reports will vary based on the auction site used by the student. In many cases students will comment on the overall experience of listing and purchasing products. Points of reference would include the ease-of-use of the site, the ease in searching and gathering information, the ability to compare products and the ease in completing transactions. 8. Try to save on your next purchase by using group purchas ing. call back letsbuyit. com, shop2gether. com, and buyerzone. com. Which site do you prefer? Why? Opinions will vary based on student preferences. . Enter espn. com and identify all sources of revenue there. I was able to identify: ad (pop-up) Advertising (co-branding MSN) Advertising (banners) Advertising (internal, for ESPN) E-Commerce (sales) Team Assignments and Role Playing 1. Assign each team two failed or failing Internet companies (e. g. , musicmaker. com, comdex. com). Use startupfailures. com to identify companies that are in distress. Fortune. com is a good source of details for particular business failures. Have each team prepare a report on why is the companies failed or are failing.\r\nResponses will vary based on the businesses chosen by students and the source of their information. 2. Each team will research two EC success stories. Members of the group should examine companies that operate solely online and some that extensively utilize a click-and-mortar strate gy. Each team should identify the critical success factors for its companies and present a report to the other teams. Responses will vary based on the businesses chosen by students and the source of their information. Answers to End-of-Chapter Real-World Case Questions: E-Commerce Supports report Employees at Maybelline\r\nQuestions 1. IVR systems are still popular. What advantages do they have over a system in which the reps send out or fax reports? Information comes in faster, and in a machine understandable format. 2. Explain why the MSP application is an e-commerce application. Compare it to the definitions and classifications in the chapter. The MSP application is an e-commerce application because it uses IT to directly enable communications and sales of products. 3. The existing technology enables transmission of data any time an employee can access the Internet with a PC.\r\nTechnically, the system can be enhanced so that the data can be sent wirelessly from any location as soon as they are entered. Would you root on such a wireless system to Maybelline? Why or why not? Student answers will vary. Students will weigh the benefits of real-time information against the cost and access issues of a new system. 4. Summarize the advantages of the new MSP system over the IVR one. Some of the advantages include: • Easier to use • More accurate information • More exact information • More timely information • bipartizan communication • Fulfills more roles\r\n'