1“Topic1-E-businessBasics”JunXUSouthernCrossBusinessSchoolSouthernCrossUniversity2LearningObjectivesDefinee-businessandidentifydifferenttypesofe-business,differente-businessbusinessmodels,andcomponentsofe-business.Discussbenefitsandlimitationsofe-businessDiscussthedevelopmentofe-businessinrelationtochangesinthebusinessenvironment.Discusstheimpactofe-businessoncompetitionDiscusstheimpactofe-businessonindustrystructureEvaluatethelikelyimpactofe-businessonanindustry3IntroduceE-Commerce/E-Business“Fewconceptshaverevolutionizedbusinessmoreprofoundlythane-commerce.E-commerceischangingtheshapeofcompetition,thespeedofaction,andthestreamliningofinteractions,products,andpaymentsfromcustomerstocompaniesandfromcompaniestosuppliers.”(kalakota&Whinston1997)4BackgroundTheInternethasemergedasamajor,perhapseventuallythemajor,worldwidedistributionchannelforgoods,services,managerialandprofessionaljobsThisisprofoundlychangingeconomics,marketsandindustrystructure,productsandservicesandtheirflow,consumersegmentation,consumervalues,consumerbehavior,jobs,andlabormarketsTheimpactmaybeevengreateronsocietiesandpolitics,andonthewayweseetheworldandourselvesinitTheinternethasrewrittentherulesforbusinessandtransformedmanyindustries,e.g.,book,travel,music,accommodation,internetphone,realestate….5ECDevelopmentFromEFT(forlargefirms)toEDI(needprivatenetworks)toWeb-basedEDI,Extranet,Intranet,ElectronicMarketplace,…..ECisgettingmoreandmorepopularandexpandrapidly…Why?Asaresultoftherapiddevelopmentofinternettechnologiesandtheincreaseincompetitionandotherbusinesspressures.6GlobalOnlinePopulation-Dec2011Data(seeinformationofothercountriesat:)WorldRegionsPopulation(2011Est.)InternetUsersDec.31,2000InternetUsersLatestData(Dec2011)Penetration(%Population)Growth2000-2011Users%ofTableAfrica1,037,524,0584,514,400139,875,24213.5%2,988.4%6.2%Asia3,879,740,877114,304,0001,016,799,07626.2%789.6%44.8%Europe816,426,346105,096,093500,723,68661.3%376.4%22.1%MiddleEast216,258,8433,284,80077,020,99535.6%2,244.8%3.4%NorthAmerica347,394,870108,096,800273,067,54678.6%152.6%12.0%LatinAmerica/Carib.597,283,16518,068,919235,819,74039.5%1,205.1%10.4%Oceania/Australia35,426,9957,620,48023,927,45767.5%214.0%1.1%WORLDTOTAL6,930,055,154360,985,4922,267,233,74232.7%528.1%100.0%7TopTenLanguagesUsedintheWeb()InternetUsersbyLanguageInternetPenetrationbyLanguageGrowthinInternet(2000-2011)InternetUsers%ofTotalWorldPopulationforthisLanguage(2011Estimate)English565,004,12643.4%301.4%26.8%1,302,275,670Chinese509,965,01337.2%1,478.7%24.2%1,372,226,042Spanish164,968,74239.0%807.4%7.8%423,085,806Japanese99,182,00078.4%110.7%4.7%126,475,664Portuguese82,586,60032.5%990.1%3.9%253,947,594German75,422,67479.5%174.1%3.6%94,842,656Arabic65,365,40018.8%2,501.2%3.3%347,002,991French59,779,52517.2%398.2%3.0%347,932,305Russian59,700,00042.8%1,825.8%3.0%139,390,205Korean39,440,00055.2%107.1%2.0%71,393,343TOP10LANGUAGES1,615,957,33336.4%421.2%82.2%4,442,056,069RestoftheLanguages350,557,48314.6%588.5%17.8%2,403,553,891WORLDTOTAL2,099,926,96530.3%481.7%100.0%6,930,055,1548(SeeReading1.3)9(SeeReading1.4)10E-CommerceRevenueAccordingtoEconomistIntelligenceUnit(2009)aroundhalfoftheapproximate1.5billionInternetuserswillshoponlinein2009andfurther400millionmoreinternetuserswillpurchaseontheInternetby2012.Theprojectedover1billiononlineshoppersby2012willmakethetransactionvalueofbusinesstoconsumer(B2C)e-businessmarketreachingUS$1.2trillion.ButbythenB2Be-businesswillbeworthUS$12trillion(10timesofB2Ce-businesstransactions)11Whatise-commerce?MeansdifferentthingstodifferentpeoplelikethesixblindmenandtheelephantCanbedefinedfromdifferentperspectives,CommunicationsCommercial(trading)BusinessProcessServiceLearningCollaborativeCommunitye-business,e-commerce,digitalbusiness,digitalenterprise:differentorsame?Whatdoyouthink?12E-Commerce/E-BusinessDefinede-business:abroaderdefinitionofEC,whichincludes:buyingandsellingofgoodsandservicesservicingcustomerscollaboratingwithbusinesspartnersconductingelectronictransactionswithinanorganizationInourtext,E-businessandE-commerceareusedinterchangeably.13FocusofthisUnit…E-commercehasmanyperspectivesInthisunitwefocusprimarilyongeneralknowledgeandunderstandingrequiredbymanagers-inotherwordsamanagementandbusinessperspectiveWefocusonconceptsandapplicationsratherthanontechnology14Whatdoyouneedtoknow-TopicsdiscussedinthisunitT1FoundationsofE-commerce/E-BusinessT2TechnologyFoundationsT3B2C:E-retailingT4:B2C:InternetMarketingT5:B2B&SupplyChainT7/T8/T9OtherTypesofEB/ECT10:PlanningandLaunchingE-initiativesT11:StrategicandPolicyIssuesT12:SuccessFactors,Challenges,FutureDirections15AssessmentAssignment1:Casestudyofwww.dstore.com.auweight20%(individual)dueThursdayweek5(07/06/2012)Assignment2-Workplacebasedweight30%(individual)dueThursdayweek10(12/07/2012)Examinationweight50%Openbook16(Turbanetal.2010,p.48)17(Turbanetal.2012,p.50)18ClassificationofECbyTransacti