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