Bài giảng Management information systems - Chapter 5: Electronic Commerce: Strategies for the New Economy

Chapter 5Electronic Commerce:Strategies for the New EconomyINTRODUCTIONE-commerce is changing everythingElectronic commerce (e-commerce) – commerce, but it is commerce accelerated and enhanced by ITBuild powerful relationships with customersBuild powerful relationships with suppliersBuild powerful relationships with partnersE-COMMERCE BUSINESS MODELSB2B & B2C E-CommerceB2B e-commerce – business sells products and services to customers who are primarily other businessesWhere all the e-commerce money isB2C)e-commerce – business sells products and services to customers who are primarily individualsB2C is the glitzy e-commerce like iTunes, eBay, etcUNDERSTAND YOUR BUSINESS, PRODUCTS, SERVICES, & CUSTOMERSTo be successful, you mustDefine your products and servicesDefine your target customersB2B (other businesses)B2C (individuals)Define your customers perception of the value of your products and servicesB2C: Convenience Versus SpecialtyConvenience vs. specialtyLower vs. high pricedFrequency of purchaseFood items vs. stereos and computersCommoditylike and digitalSame no matter where you purchase itDelivered over the InternetBest product types for B2C e-commerceB2B: Horizontal Versus Vertical E-MarketplacesElectronic marketplace (e-marketplace) – interactive business providing a central market where multiple buyers and sellers can engage in e-commerceFIND CUSTOMERS AND ESTABLISH RELATIONSHIPSYou must first find customersThen establish relationshipsOtherwise, you can’t make a saleB2C and B2B techniques are very differentBusiness to ConsumerDetermine your marketing mix - set of marketing tools your organization will use to pursue its marketing objectives in reaching and attracting potential customersSearch enginesOnline adsViral marketingAffiliate programsBusiness to Business MarketingMuch more personalNot usually done with generic ads designed for mass distributionOften take place in e-marketplacesMOVE MONEY EASILY & SECURELYIn e-commerce, security becomes very importantB2CCredit cards, financial cybermediaries, electronic checks, EBPP, & smart cardsB2BElectronic data interchange (EDI)Value-added networks (VANs)Financial EDIE-BUSINESS TREND – LONG TAILLong Tail – first offered by Chris Anderson; explains e-commerce profitability in terms of a sales curveE-BUSINESS TREND - CROWDSOURCINGCrowdsourcing – when businesses provide enabling technologies that allow people – instead of designated employees – to create, modify, and oversee the development of a product or service.Netflix – gave a million $$ to improve its recommendation engine by 10%eBay, Facebook, Twitter, YouTubeE-BUSINESS TREND – VIRTUAL GOODSVirtual good – nonphysical objectMusicE-cardsToys, weapons, clothes, and accessories you buy in online communities like Farmville and World of Warcraft2007 - $2.1 billion2010 - $7.3 billion (245% increase)2014 - $14 billion (projected)E-BUSINESS TREND – MOBILE COMMERCEMobile commerce – electronic commerce transactions conducted over a wireless device such as a smartphone, laptop, or tablet PC.