introduction to e-business chapter 1. learning outcomes define the meaning and scope of e-business...
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Introduction to e-BusinessChapter 1
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Learning outcomes
• Define the meaning and scope of e-business and e-commerce and their different elements
• Identify the main reasons for adoption of e-commerce and e-business, and barriers that may restrict the process
• Define the Internet as a communications medium for consumers and businesses
• Identify the business challenges of introducing e-business and e-commerce to an organization.
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Examples
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Examples
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Examples
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Examples
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What is e-Business?
Definition by IBM and Chaffey (2009)
The transformation of key business processes through the use of Internet technologies
The transformation of key business processes through the use of Internet technologies
Business concept : strategy and operationsBusiness concept : strategy and operations
Business description: business that mainly operate online
Business description: business that mainly operate online
All electronically mediated information exchanges, both within an organization and with external
stakeholders supporting the range of business processes
All electronically mediated information exchanges, both within an organization and with external
stakeholders supporting the range of business processes
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What is e-Business?
Stakeholders – internal users, supplier, vendor, distributor, customers , etc.
Business processes involved: purchase raw material, marketing, planning, stock checking, ordering, delivery, and many more.
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What is e-Commerce?
Definition by Chaffey(2009)
All electronically mediated information exchanges between an organization and its external
stakeholders
All electronically mediated information exchanges between an organization and its external
stakeholders
Buy sideBuy side
Sell sideSell side
E-commerce transactions between a purchasing organization, its suppliers and partner
E-commerce transactions between a supplier Organization and its customers
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What is e-Commerce?
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e-Business vs e-Commerce
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Drivers of consumer Internet adoption
Content
Customization
Community
Convenience
Choice
Cost reduction
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Barriers of consumer Internet adoption
No perceived benefit
Lack of trust
Security problems
Lack of skills
Cost
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Drivers of e-Business adoption
Cost efficiency increasing speed to get supplies increasing speed to deliver products reduced sales and purchasing costs reduced operating costs
CompetitivenessCustomer demand improving the range and quality of products & services offeredAvoid losing market share
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Drivers of e-Business adoption
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Barriers for e-Business adoption
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Internet Technology as a communication tool
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Internet Technology as a communication tool
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E-Business Challenges
Read this articles and we will discuss it in the next class.
http://www.intel.com/intelpress/chapter-book3.pdf
http://www.ifp.uni-stuttgart.de/publications/phowo01/Reiss.pdf
http://www.worldscibooks.com/etextbook/7097/7097_chap01.pdf
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Summary
Electronic Business – refers to how technology can benefit all internal processes and interactions with third parties.
There are many drivers and barriers that trigger people to move towards this direction or the opposite.
The success of the transformation requires clearly defined objectives, right culture for change, e-Business skills, partnership or networking, and organization structure and infrastructure.
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Activity 1
Instruction: Answer all the questions below, work in a group of 4.
1. Define e-Business and e-Commerce. What are the differences?
2. Identify three possible drivers for an offline flower shop to consider e-Business.
3. Identify the possible barriers for customers to shop groceries online.
4. Choose ONE article from slide 18, read it and outline the main challenges in e-Business. Elaborate your answer based on your understanding.
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References
Chaffey, D., (2007, 2009), E-Business and e-Commerce Management, 3rd and 4th Edition, Prentice Hall
Google Image, http://www.google.com accessed on 11 April 2011.
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