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E-business 개론
2주차- E-business Concept
Spring 2014
Learning Objectives
Discuss e-business basics
EC vs. E-business
Discuss the role of e-business in the global economy
Discuss e-business 2.0
Understand the elements of the digital world
List e-business advantages and disadvantages
Describe the major limitations of e-business
Commerce
What is Commerce?
Middle French, from Latin commercium, from com- (together)+ merc- (merchandise) (1537)
Buying and selling ( transactions )
Large scale ( scalability )
Transportation ( supply chain )
Every business process in the world must be re-engineered:
“Can it be made electronic?”
http://www2.uncp.edu/home/rwb/lecture_nonwest_world.htm
EC: Electronic Commerce
Internet / World Wide Web: Major Enabler
Partners/ Suppliers
Consumers
Company
Communication Network (Internet)
Bank/ Government
Defining Electronic Commerce
Communications: Electronic delivery of information, products/services, payments
Process: Reconfiguration of process and workflow
Service: Increase speed and quality of service delivery
Online: New media for creating brand image and product definition
Seller
Products/Service
Content
Process
Buyer
Products/Service
Content
Process Payment Flow
Physical Flow
Information Flow
E-commerce?
Process of buying, selling, or exchanging goods or
services across a communications network
E-Business Basics
E-business A broader definition of EC
Widest spectrum of business activities using communication technologies
wide range of activities up and down the value-network outside the organization and the entire value chain within the organization
from its point of origin to its end point along the entire value chain of business processes
conducted electronically to enable the accomplishment of a business goal.
Many technologies facilitate e-business information and communication technology
Value Chain vs. Value Network
Source: http://www.electroniccommerce.5u.com/strategic_business_unit_value_ch.htm
Value Chain vs. Value Network
http://www.alternativesjournal.ca/science-and-solutions/wheres-fish
Source: Turban et al. Electronic Commerce 2012
EC vs E-Business
R&D Operation
Sales
Management
Government/Banks
Partner
Supplier Customer
EC(Firmbanking, EFT)
EC
(TDI/EDI) EC
(cyber shopping mall,
IETM)
EC(TDI/EDI)
CRM: Customer Relationship Management
SCM: Supply Chain Management
ERP: Enterprise Resource Planning
SEM: Strategic Enterprise Management
ERP CRM
SCM
E-Business
EDI: Electronic Data Interchange
TDI: Technical Data Interchange
EFT: Electronic Fund Transfer
IETM: Interactive Electronic Technical Manual
Pure Vs. Partial E-Business
the degree of digitization Information intensity
Three dimensions the product (service) sold [physical / digital];
the process [physical / digital]
the delivery agent (or intermediary) [physical / digital]
Traditional business all dimensions are physical
Pure E-Business all dimensions are digital
Partial E-Business all other possibilities include a mix of digital and
physical dimensions
The Dimensions of E-Business
Physical
agent
Digital
agent
Digital
Product
Physical
Product Physical process
Digital process
Virtual process
Virtual delivery agent
Vir
tua
l p
rod
uct
E-business areas
Pure
E-business
Traditional
business
Source: Turban et al. Electronic Commerce 2012
E-business and the Global Economy
Widespread linking of individuals and businesses Time and space
Business value of information
Information access
New types of intermediaries
Buyers - more powerful Information on competing products
Changes in Internet and Web access Buyers expectations
Transaction speed and convenience
Value chain or value network
Businesses to rethink their value chains
e-business 2.0
The second generation of Internet-based services that lets people collaborate and share information online in new ways
Web 2.0 Wikis
RSS feeds
Blogs
Microblogs (e.g.,Twitter)
Social media platform
Social media a group of Internet-based applications
that allow the creation and exchange of User Generated Content and
that help connect friends, business partners, or individuals with specific interests by providing diverse services
e-business 2.0 social networking service (SNS)
A service that builds online communities by providing an online space and support tools for people to build
free homepages
Share photos, videos, news, blogs, etc.
social commerce The e-commerce activities conducted in social networks
and/or by using social software (i.e., Web 2.0 tools)
virtual world A user-defined world in which people can interact, play,
and do business
Second Life
Digital World
Digital Economy
An economy that is based on digital technologies
Digital Society
Communicate & Collaborate
Discussions
Access & Gather Information
Entertainment
Education
Business Transactions
Elements
Impact of e-business Individual level
Corporate level
Economy level
Source: Turban et al. Electronic Commerce 2012
Advantages at the Individual Level
Convenience:
Efficiency
Consumer oriented market
Disadvantages at the Individual Level
Delivery time
Loss of ability to inspect products
Digital divide
Negative effects
Advantages at the Business Level
Operational efficiency
Time to market changes
Responsiveness to customers
Cost down
Management efficiency
New business opportunity
Disadvantages at the Business Level
Consumer centered, empowered
Investment for E-business
Channel Conflict
Unexpected competitors
Economy Level New Economy:
changes in game rules
digital economy – long tail economy
Efficiency
Smart work
Network effect
Cultural and legal obstacles also exist
3 nodes 3 connections
How many connections with:
5 nodes?
6 nodes?
7 nodes?
2 nodes, 1 connection
4 nodes 6 connections
limitations of e-business
Technological limitations Standards
Bandwidth
Software tools
Integration
Special servers
Non-technological limitations Trust
Security
Ethics
Email monitoring
Privacy invasion
Legal and public issues
Tax, online fraud, and so on
Touch and feel
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