LOGOwww.themegallery.com1ManagementSchoolofTJNUEC2Chapter1IntroductiontoElectronicCommerceECEC3ContentsofChapter1ECElectronicCommerce:TheSecondWave1BusinessModels,RevenueModels,andBusinessProcesses2EconomicForcesandElectronicCommerce3IdentifyingElectronicCommerceopportunities4InternationalNatureofElectronicCommerce5EC4LearningObjectives:Inthischapter,youwilllearnabout:(1)Whatelectroniccommerceisandhowitisexperiencingasecondwaveofgrowthwithanewfocusonprofitability(2)Whycompaniesnowconcentrateonrevenuemodelsandtheanalysisofbusinessprocessesinsteadofbusinessmodelswhentheyundertakeelectroniccommerceinitiatives(3)Howeconomicforceshavecreatedabusinessenvironmentthatisfosteringthesecondwaveofelectroniccommerce(4)HowbusinessesusevaluechainsandSWOTanalysistoidentifyelectroniccommerceopportunities(5)TheinternationalnatureofelectroniccommerceandthechallengesthatariseinengaginginelectroniccommerceonaglobalscaleECEC51.1ElectronicCommerce:TheSecondWaveECEC6Fromhumblebeginningsinthemid-1990s,electroniccommercegrewrapidlyuntil2000,whenamajordownturnoccurred.Manypeoplehaveseennewsstoriesaboutthe“dot-comboom”followedbythe“dot-comburst”orthe“dot-bomb.”Inthe2000to2003period,manyindustryobserverswerewritingobituaries(讣告)forelectroniccommerce.Justastheunreasonableexpectationsforimmediatesuccessfueledthehighexpectationsduringtheboomyears,overlygloomynewsreportscoloredperceptionsduringthistime.Beginningin2003,withthegeneraleconomystillinthedoldrums,electroniccommercebegantoshowsignsofnewlife.Companiesthathadsurvivedthedownturnwerenotonlyseeinggrowthinsalesagain,butmanyofthemwereshowingprofits.Althoughtherapidexpansionandhighlevelsofinvestmentoftheboomyearsarenotlikelytoberepeated,thesecondwaveofelectroniccommerceiswellunderway.EC7ContentsElectroniccommerceandElectronicbusiness12ECCategoriesofElectronicCommerce3TheDevelopmentandGrowthofE-Commerce45Thedot-comboom,bust,andrebirthTheSecondWaveofElectronicCommerceEC8ElectronicCommerce:TheSecondWave(cont.)1ElectroniccommerceandElectronicbusinessECElectronicbusiness(e-business)-broadersense•Termusedinterchangeablywithe-commerce•ThetransformationofkeybusinessprocessesthroughtheuseofInternettechnologies(IBM’sdefinition)Electroniccommerce(e-commerce)-narrowersense•shoppingonthepartoftheInternetcalledtheWorldWideWeb(theWeb).•alsoincludesmanyotheractivities,suchasbusinessestradingwithotherbusinessesandinternalprocessesthatcompaniesusetosupporttheirbuying,selling,hiring,planning,andotheractivities.•BusinessactivitiesconductedusingelectronicdatatransmissionovertheInternetandtheWorldWideWeb.EC92CategoriesofElectronicCommerce1)Business-to-business(B2B):请看中国新能源网2)Businessprocesses:见ElementofElectronicCommerce3)Business-to-consumer(B2C):请看当当网(B2C)Fivegenerale-commercecategories4)Business-to-government(B2G):请看握奇信安网(B2G)ElectronicCommerce:TheSecondWave(cont.)EC5)Consumer-to-consumer(C2C):请看淘宝网(C2C)mostcommonlyusedEC10GlossaryActivityataskperformedbyaworkerinthecourseofdoinghisorherjobTransactionAnexchangeofvaluesuchasapurchase,asale,ortheconversionofrawmaterialsintoafinishedproductAtransactionalwayshasoneormoreactivitiesassociatedwithit,butanactivitymightnotberelatedtoatransaction.BusinessprocessesThegroupoflogical,related,andsequentialactivitiesandtransactionsinwhichbusinessesengageEg.Thebusinessprocessofshippinggoodstocustomers:•inspectingthegoods,•packingthegoods,•negotiatingwithafreightcompanytodeliverthegoods,•creatingandprintingtheshippingdocuments,•loadingthegoodsontothetruck,•sendingachecktothefreightcompany.TelecommutingorteleworkEmployeeslogintocompanycomputersthroughtheInternetinsteadoftravelingtotheoffice.EC11CategoriesofElectronicCommerceThethreecategoriesthataremostcommonlyusedare:ConsumershoppingontheWeb,oftencalledbusiness-to-consumer(orB2C)TransactionsconductedbetweenbusinessesontheWeb,oftencalledbusiness-to-business(orB2B,sometimescallede-procurement)Transactionsandbusinessprocessesinwhichcompanies,governments,andotherorganizationsuseInternettechnologiestosupportsellingandpurchasingactivitiesEC12EXAMPLEConsideracompanythatmanufacturesstereospeakers.ThecompanymightsellitsfinishedproducttoconsumersontheWeb(B2C).ItmightalsopurchasethematerialsitusestomakethespeakersfromothercompaniesontheWeb(B2B).Thecompanymustalsoundertakemanyotheractivitiestoconvertthepurchasedmaterialsintospeakers.Theseactivitiesmightinclude:•hiringandmanagingthepeoplewhomakethespeakers,•rentingorbuyingthefacilitiesinwhichthespeakersaremadeandstored,•shippingthespeakers,•maintainingaccountingrecords,•purchasinginsurance,•developingadvertisingcampaigns,•designingnewversionsofthespeakers.AnincreasingnumberofthesetransactionsandbusinessprocessescanbedoneontheWeb.Manufacturingprocesses(suchasthefabricationofthespeakers)canbecontrolledusingInternettechnologieswithinthebusiness.EC13EC14EC15ClassificationofECbyTransactionsorInteractions(fromTurban)business-to-consumer(B2C):onlinetransactionsaremadebetweenbusinessesandindividualconsumersbusiness-to-business(B2B):businessesmakeonlinetransactionsw