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