Digital Technology Week 2 - Digital Business
What are the advantages of E-Commerce?
- May eliminate need for maintaining physical shop front - Reduced transaction costs; increased transaction speed - Ease of crossing geographical boundaries - Web sites available 24/7 - Ease of updating existing and distributing new information - May empower smaller companies
What are the disadvantages of E-Commerce
- SMEs' digital readiness - Regulatory barriers: for example, using a website that is banned - Suitability of product - "feel and touch" - Trust, and fraud issues - Digital divide
Categories of E-Commerce
-Business to Consumer (B2C): retailing products and services to individual shoppers-Business to Business (B2B): sales of goods and services among businesses-Consumer to Consumer (C2C): consumers selling to consumers
What is Reintermediation
The shifting of the intermediary function in a value chain to a new source - E.g., for delivery now need a third-party logistics provider such as Royal Mail, Parcelforce, UPS - New intermediaries: transaction brokers, e-marketplaces, price comparison sites, etc. -Also, drop shipping
What is Digital Business?
Using digital technology to enable new forms of business and commerce. Technologies are no longer just enabling doing the same things faster and cheaper, but changing the very way we conduct business.
What is meant by Order Fulfilment?
all of the activities needed to provide customers with ordered goods and services, including related customer services
What is E-Commerce
process of buying and selling goods and services electronically through any electronic means, not just the internet
What are Logistics?
the operations involved in the efficient and effective flow and storage of goods, services and related information from point of origin to point of consumption
What is Disintermediation?
the removal of intermediary steps in a value chain, e.g., selling directly to consumers
What is the difference between the Internet and the Web?
Internet: network of connected computers that the web works on, as well as what emails and files travel across Web: the pages you see when you're at a device and you're online.
Examples of Business Digitisation
-Products themselves starting to become digital (e.g., music downloads, e-books, etc.) -Digital channels extending to mobile and everyday devices -The digital footprints we leave behind being analysed in ever more depth so as to drive key business decisions or create new opportunities (cf. analytics and big data) -New digital entrants such as Uber, Airbnb, etc. shaking up existing business sectors
What is E-Business
E-Commerce + the use of internet or other digital technologies for performing (internal) business processes and coordinating with suppliers and partners
