Chapter 5 - E-Business and E-Commerce
Process of disintermediation
-The first function can be fully automated and most likely will be assumed by e-market places and portals that provide information for free -When this occurs, the intermediaries who perform only (or primarily) this function are likely to be eliminated
E-business
In addition to the buying and selling of goods and services, e-business also refers to servicing customers, collaborating with business partners, and performing electronic transactions within an organization
Disintermediation
Intermediaries also known as middlemen have two functions: (1) they provide information, and (2) they perform value-added services such as consulting
Middlemen
Intermediaries to disintermediation
Auction
a competitive process in which either a seller solicits consecutive bids from buyers or a buyer solicits bids from sellers
Consumer-to-consumer (C2C)
an individual sells products or services to other individuals
Business-to-employee (B2E)
an organization uses EC internally to provide information and services to its employees
Permission marketing
asks consumers to give their permission to voluntarily accept online advertising and e-mail
Business-to-business (B2B)
both the sellers and the buyers are business organizations
Channel conflict
clicks-and-mortar companies may face a conflict with their regular distributors when they sell directly to customers online
Virtual Organizations
companies only engaged in EC
Smart cards
contain a chip that can store a considerable amount of information - more than 100 times that of a stored-value money card
Electronic payment systems
enable you to pay for goods and services electronically rather than by writing a cheque or using cash
Cyberbanking
involves conducting various banking activities from home, at a place of business, or on the road instead of at a physical bank location
Multichanneling
many companies are integrating their online and off-line channels because having them separated may increase expenses and reduce the synergy between the two organizational channels
Brick-and-mortar organizations
purely physical organizations
Spamming
the indiscriminate distribution of electronic ads without the permission of the receiver
Business model
the method by which a company generates revenue to sustain itself
Electronic Commerce (EC or e-commerce)
the process of buying, selling, transferring, or exchanging products, services, or information via computer networks, including the Internet
Business-to-consumer (B2C)
the sellers are organizations, and the buyers are individuals
Mobile commerce (m-commerce)
the term m-commerce refers to e-commerce that is conducted entirely in a wireless environment
E-government
the use of Internet technology in general and e-commerce in particular to deliver information and public services to citizens
Clicks-and-mortar organizations
those that conduct some e-commerce activities, yet carry out their primary business in a physical world