E-Commerce

E-commerce business models

1) Brokerage 2) Advertising 3) Infomediary 4) Merchant 5) Manufacturer/direct 6) Affiliate 7) Community 8) Subscription 9) Utility

Stages of community development

Attract members Promote participation Build loyalty Capture value

Consumer-to-Consumer

Consumers trading or swaping things electronically, on places like EBay, Face Book and Gumtree. They can sell swap or trade products, and even swap hoses with someone else if they are going away

Four building blocks of website optimization

Findability Usability Functionality Stylability

e-supply chain Order commitment

It is a system that allows vendors to accurately quote delivery dates to customers by providing real-time detailed visibility into the entire fulfillment cycle. It is linked to all other modules so that accurate delivery of goods and services can be guaranteed.

e-supply chain Advanced scheduling and manufacturing planning

It provides detail co-ordination of all manufacturing and supply efforts based on individual customer orders. Scheduling is based on real-time analysis of changing constraints throughout the process, from equipment malfunctioning to supply interruptions. Scheduling also creates job schedules for managing the manufacturing process as well as logistics.

E-Fulfillment

delivery, types: - Shop at a store - Home-delivery - Order online and pick up at store

Government-to-Consumer

electronic commerece ativities performed between a government and it's citizens. it includes; paying taxes, registering objects and providing information

E-commerce Business process perspective

the application of technology toward the automation of business transactions and workflow (Kalakota and Whinston, 1997)

E-commerce Online perspective

the capability of buying and selling products and information on the Internet and other online services (Kalakota and Whinston, 1997)

e-supply chain management

the co-ordination for managing the supply chain takes place by using Internet technologies

E-commerce Communications perspective

the delivery of goods, services, information or payments over computer networks by any electronic means (Kalakota and Whinston, 1997)

E-commerce Collaborations perspective

the framework for inter- and intraorganizational collaboration (Turban et al.)

Disintermediation

the intermediary is removed in the value chain. • known as: the threatened intermediaries hypothesis (TIH) (Sarkar et al., 1995). • Most sensitive: intermediaries proving information about demand, supply, prices and requirements to match buyers and sellers (Turban et al., 2010). • Example: Dell.com

E-commerce Service perspective

a tool that addresses the desire of firms, consumers and management to cut service costs while improving the quality of products and the increasing speed of service delivery (Kalakota and Whinston, 1997)

E-government adoption Layne and Lee model

(1) E-Governmentadoption:catalogue (2) E-Government adoption: transaction (3) E-Government adoption: vertical integration (4) E-Government adoption: horizontal integration

Public sector Process Rebuilding (PPR) model

1,Cultivation Limited use of online customer service, no online services. Website as gatekeeper. Horizontal and ver4cal integra4on, adop4on of intranet. 2,Extension Adop4on personalized web interface for customer service; many redirec4ons to online documents/online loca4ons. Extensive intranet use. 3,Maturity Transparency; focus on customer request for service; online self service is key (CDSS, SST). Abandoning intranet; merge over internet and intranet. 4,Revolution - Employees ac4ons are traced; customer owns the data (i.e. who is on my case, what is the status of the process, who have accessed my case?). - Intra- and extra-organiza4onal mobility of data and services.

Government 2.0 Categories of coproduction

1. Citizen sourcing (citizen->government). 2. Government as a platform (government->citizen). 3. Do it yourself government (citizen<-->citizen). Each category can be described in terms of a) service design, b) service execution, and c) service monitoring.

A Five-Step Approach to Developing an E-Commerce System

1. Identifying, justifying, and planning ec systems 2. Creating an EC architecture 3. Selecting a development option 4. Installing, testing, integrating, and deploying ec applications 5. Operations, maintenance, and updates

social marketing

A combina6on of social policy and marke6ng prac6ces to achieve a set of social behavioral goals within a target audience

business case

A document that justifies the investment of internal, organizational resources in a specific application or project

E-Tailer

A retailer that mainly uses the internet as a way for customers to shp for their goods and services, online sales intermediary, a seller that operates between manufacturers and consumers

social capital

A sociological concept that refers to connec6ons within and between social networks—the core idea is that social networks have value; just as physical capital or human capital can increase produc6vity (both individual and collec6ve), so do social contacts affect the produc6vity of individuals and groups

social media marketing (SMM)

A term that describes use of social media pla/orms such as networks, online communi6es, blogs, wikis, or any other online collabora6ve media for marke6ng, market research, sales, CRM, and customer service; it may incorporate ideas and concepts from social capital, Web 2.0, social media, and social marke6ng

Business-to-Consumer

A transaction or slae made directly between a business and consumer. It is a form of trading and buying or selling over the internet.

Advertising model

A web site provides content and services (like e-mail, chat, forums) mixed with advertising messages (banners), The banner ads may be the major or sole source of revenue for the broadcaster, Important submodels: portal, user registration (NYTimes digital), classifieds ('your own'individual ads), query- based paid placement (google), contextual advertising (ads with freeware), content-targeted ads (Google: ads in line with content of a website->Adsense).

business plan

A written document that identifies a company's goals and outlines how the company intends to achieve the goals and at what cost

E-business

E-commerce (narrow) + servicing, collaborating and intra-organizational transactions and communication

Social commerce

E-commerce conducted via social media and/or using Web 2.0 technology.

E-commerce Community perspective

a gathering place for community members, to learn, transact and collaborate (Turban et al.)

Business-to-Business

The exchange of products, information and services betwen businesses.

social media

The online pla/orms and tools that people use to share opinions, experiences, insights, percep6ons, and various media, including photos, videos, and music, with each other

e-supply chain Distribution planning

This is integrated with demand forecasting, manufacturing schedule and transportation planning to reach the customer. This module addresses customer-specified requirements.

e-supply chain Demand forecasting

This module supports a range of statistical tools and business forecasting techniques. It takes into account changing market scenarios and economic factors while making decisions.

e-supply chain Transportation planning

This programme facilitates resource allocation and execution to ensure that materials and finished goods are delivered at the right time and at the right place, according to the planning schedule at a minimal cost. It considers such variable as transportation mode like railways, trucks, airlines, and availability of each mode.

Business model

a method of doing business, shows how the company is positioned in the value chain, a method of doing business by which a company can generate revenue to sustain itself

Merchant model

Wholesalers and retailers of goods and services, Sales may be made based on list prices or through auction. Important submodel: Virtual Merchant (e-tailer, solely over the web, Amazon.com), Catalog Merchant (Wehkamp), Click and Mortar (Barnes and Noble), Bit Vendor (strictly in digital products, both sales and distribution over the web, Apple I-tunes)

Manufacturer model

a company that creates a product or service reaches buyers directly, The Dell.com model. • Important submodels: Purchase (transfer right of ownership), Lease (rental fee), License (usage rights), Brand Integrated Content (created by the manufacturer, bmwfilms.com)

E-commerce (broad)

communication, business processes, service, online, collaborations, community

Infomediary model

firm assisting buyers and/or sellers in understanding a given market by analyzing consumer data, (usually) used to support targeted marketing campaigns, Advertising Networks (access to banner space at many sites drawing upon insights from customer data), Audience Measurement Services (online research firms such as Nielsen-Netratings; (new) sentiment analysis firms)

Brokerage model

market-makers: they bring buyers and sellers together and facilitate transactions, charges a fee or commission for each transaction it enables, Important submodels: marketplace exchange/virtual marketplace, auction broker (eBay), transaction broker (TTP), demand collection system (priceline.com)

Intermediary

matcher between buyer and seller • Services: - providing information (e.g. about demand, supply, prices) - additional services (e.g. consulting) • Examples intermediaries: - Amazon.com (retail) - Auto-by-tel (online buying services) - Alex.nl (discount brokers) - Covisint (e-marketplaces; cloud based)

E-commerce (narrow)

transactions conducted via electronic networks

E-commerce

transactions conducted via electronic networks (Web, mobile etc...)

Disadvantages intermediaries

• Costs: fee, tariff • Information: loss of information • Direct contact: who's responsible? • Abuse of power: conflicts

Government-to-employees (G2E)

• E-Government category that includes ac4vi4es and services between government units and their employees.

Government-to-government (G2G)

• E-Government category that includes ac4vi4es within government units and those between governments.

E-Government (G2C)

• E-Government category that includes all the interac4ons between a government and its citizens. • Major areas: - discovery of government services - informa4on about public policy - advice about health and safety issues - tourism and recrea4on - downloadable forms - taxes - vo4ng - digital identification & digital profile (DigID) - digital counter/digitaal loket

Government-to-business (G2B)

• E-government category that includes interac4ons between governments and businesses (government selling to businesses and providing them with services and businesses selling products and services to government).

online consumer behavior Factor-oriented models

• Focus on consumer psychology • Psychological states and theories of consumer while they are going through their decision processes • Factor: measurement at a specified moment in =me • Factor: interrelated factors • Goal: understanding and predic=ng purchase behavior

(4) E-Government adoption horizontal integration

• Focus on integra4ng horizontal services. • Purpose (website) =one stop service centers for the ci4zen. • Examples: - housing, educa4on, medical aeen4on record integrated via one portal; easy administra4on when moving to another city. • Func4onality: (next slide). • Main challenges: database communica4on across func4onal areas, integra4on of heterogeneous databases, change of mindset (managerial challenge).

online consumer behavior Process models

• Focus on the processes consumer go through • Consumer behavior = series of steps • Assump=on: the steps spread out over =me • Goal: describing and understanding purchase behavior • Example: website as Customer Decision Support System (CDSS).

(3) E-Government adoption vertical integration

• Focus on transforma4on of government services towards an integrated approach of scaeered systems at different levels (local level, state level, federal/na4onal level). • Integra4on of the systems at different ver4cal levels. • Purpose (website) = transac4ons conducted at a par4cular level are communicated with databases at al levels . • Example: renewal of driver license should be communicated at federal level as well. • Func4onality: - Integrated oriented backoffice applica4ons (ERP, CRM) - Portals • Main challenges: system integra4on, database flexibility, privacy and confiden4ality issues.

online consumer behavior Process models

• Goal: targeted website investments • Methods have been applied to understand which components to invest in: content analysis • Goal: website finetuning • Methods have been applied to track consumers going through the decision process: website traffic monitoring (see previous discussion on observing consumer behavior)

online consumer behavior Factor-oriented models

• Goal: understanding and predic=ng online behavior • Useful insights in the impact of website percep=ons on on online consumer behavior • Various website percep=ons have been related to awtudes and inten=ons (usage and purchase) • E.g.: website style, website enjoyment, website familiarity, usefulness, ease-of-use, trust, perceived risk.

Community model

• Model based on user loyalty • Revenue can be based on sale ancillary products, services or voluntary contributions. • Important submodels: Open Source Software (revenue through related services; Red Hat), Open content (Wikipedia), Public Broadcasting (revenue through donations), Social networking services (Flickr, Hyves; Youtube; revenue through ads).

Affiliate model

• Offers financial incentives (in the form of a percentage of revenue) to ....... partner sites • Provides purchase opportunities wherever people may be surfing • The ...... provides purchase-point click-through to the merchant (pay-for-performance model). • Important submodels: Banner Exchange (banner placement among network of affiliated sites), Pay-Per- Click (click-through), Revenue Sharing (percent-of-sale commission based on an user click-through)

(2) E-Government adoption transaction

• Online comple4on of paper/forms. • Registering vehicles, filling in taxes... • Purpose website = improving efficiency for customer and agency. • Website func4onality: - electronic forms - more focused on ac4ve users - helpdesk • Main challenges: integra4on with business processes, integra4on website with backoffice, outsourcing, reprogramming of databases.

virtual community

• People with shared interests or goals for whom electronic communica-on is a primary form of interac-on (Dennis, Pootheri, & Natarajan, 1998). • Groups of people who meet regularly to discuss a subject of interest to all members (Figallo, 1998). • Groups of people brought together by shared interests or a geographic bond (Kilsheimer, 1997). • Groups of people with common interests and prac-ces that communicate regularly and for some dura-on in an organized way over the Internet through a common loca-on or mechanism (Ridings, 2002).

online consumer behavior Conceptual models

• Provide an overall picture • Conceptual models • Goal: overview & discussion purposes • Star=ng point for further research

online consumer behavior Conceptual models

• Provide the 'overall picture' • Integrate mul=ple references into one model • Input for strategy and tac=cs • Overview of aspects at different levels (e.g. consumer lifestyle versus service quality)

Advantages intermediaries

• Search costs: reduce search costs and match buyers and sellers • Privacy: protection of sensitive information • Information: provide information from different sources • Risk: 'risk-mediator' • Pricing: reassure appropriate trades for both parties (e.g. for houses)

virtual community as a business model

• Subscrip-on fees • Member fees: content delivery fees & service fees • Transac-ons • Plaeorm for social media marketing

Utility model

• The ..... or "on-demand" model is based on metering usage • Unlike subscriber services, metered services are based on actual usage rates • Important submodels: Metered Usage (measures/bills on actual service usage), Metered Subscriptions (purchase access to content in metered portions, e.g. numbers of pages viewed).

E-Government

• The use of IT and e-commerce to provide access to government informa4on and delivery of public services to ci4zens and business partners. • Offers an opportunity to improve the efficiency and effec4veness of the func4ons of government and to make governments more transparent to ci4zens and businesses by providing access to more of the informa4on generated by government.

Subscription model

• Users are charged a periodic fee to subscribe to a service. • ...... fees are incurred irrespective of actual usage rates. • Often combined with advertising models. • Content Services: text, audio, or video content • Important examples: Content services (content for a fee), Person-to-Person Networking Services (search for former schoolmates), Trust Services/Assurance services (Truste/ Thuiswinkel waarborg).

(1) E-Government adoption catalogue

• Website created for online presence. • Not much experience within the organiza4on. • Purpose website = informing ci4zens. • Website func4onality: - descrip4on department - contact informa4on - Informa4on - links • Main challenges: resource alloca4on, website maintenance and answering e-mail.

Transaction cost Theory (TCT)

• search, information, bargaining, decision, policing, enforcement (Coase, 1937, Downes and Mui, 1998). • organizational structure of an organization depends on the balance between external and internal transaction costs. • External transaction costs: transaction costs of an activity performed by the market. • Internal transaction costs: transaction costs of an activity performed by the organization itself. • two governance structures - hierarchy: internal TC < external TC (TIH) - market: external TC < internal TC • there is a spectrum in between.