group presentation
DESCRIPTION
OMIS E-BUSINESS PRESENTATIONTRANSCRIPT
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Group 3
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E-Commerce and E-BusinessE-Commerce E-BusinessBuying and selling of
goods and services on-line (Transaction)
- Online shopping- Online purchasing
Example: Buy a Shirt online and try to return it to the retailer
Spin-off of E-commerceInvolves more of the
business processes (Exchange of Information)
-Buying -Selling -Trading-Working with business
partners
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Phases to Becoming an E-Business
Does not understand the Internet
Hires outside
company (mostly
informational)
Starts some E-
Commerce Activities
Starting to integrate channels but not quite there yet
Integrating all channels Everyone uses web to conduct business
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Four E-Business ModelsBusiness to Business (B2B)Business to Consumer (B2C)Consumer to Business (C2B)Consumer to Consumer (C2C)
- Each model must be approached differently and the business must make sure that they have the appropriate tools to successful implement different strategies.
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Business to Business (B2B)Buying, selling, and other business transactions
among businessesCommonly referred to as E-marketplaceBusiness have to make sure that they work with
other businesses that supports their strategy (product quality, price, time)
- Car Manufactures (Glasses and Tires)- Dell Computer (Computer Components)
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Business to Consumer (B2C)Selling of products/services to consumersE-shoppingOn-line stores represents the same brand image
as physical stores if they exist. Pure Play (Internet only), Click and Mortar
(Internet and Physical Store), and Brick and Mortar (Physical Store Only)
-
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Consumer to Business (C2B)Consumers selling to a businessIndividual are creating value for the firmGrowing Trend
-Surveys -Blogs-Customer Reviews
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Consumer to Consumer (C2C)Consumers conducting business between each
otherCompanies can help to facilitate transaction
-Online Auctions (Craig’s List, EBay, and Angie’s List)
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Impacts on MarketingIndividuals can stay at home and buyLess time consumingLess costlyMore research can be doneAnytime access to information
Click-throughViral contentMobile computing
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Click-ThroughThe process of clicking through an online
advertisement to the advertiser’s destinationCan track:
Where the individual clicked fromWhich pages were visitedWhich links were interesting enough to click
through
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Viral ContentViral videos get viewed more often than
regular banner adsViewers pass on interesting or humerous
content to othersRelatively cheap advertising
word of mouthUse of social networks
Increases the chances of making a video go viral
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Mobile ComputingCan advertise anywhere to a target market
50% more effective than TV130% more effective than radio
Hasn’t boomed yet, but will very soonDeveloped by phone companies and GoogleThe next form on personalized advertising
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Benifits to MarketingBi-directional flow of informationDecreased time lag for customer service
Organization is reachable at any timeDecreased cost of customer servicePersonalized advertisements
More information on customers
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Ford’s E-BusinessVirtual store and information center coupled
with physical car dealershipsAverage of $24,000 on an initial purchaseAverage of $68,000 spent in total throughout
the life of the carMore time is spent on the life of the car than
the initial pruchaseE-business maintains customer intamacy for
life
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FinanceE-business decreases transaction costsE-business can provide easy acces to
international customersOrganizations may not know how to deal with
international currencies which may increase transaction costs a little
Increased customer service and sales revenues
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Finance24-hour online access requires 24-hour order
processingIncreases salesOnline payment methods
Pay pal, Credit cards, Electronic cashFunding for Data acquisition and security
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Supply Chain ManagementMass production to demand drivenIncreased supply chain performanceShorten the supply chainCut costsCan eliminate the bullwhip effect
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E-Commerce and E-BusinessAdvantages DisadvantagesShortens the supply chainReduced facility costsDecreased processing
timeLower inventory levelsMore personalized buying
experienceMore potential customersIncreased financial data
and salesEliminate the bullwhip
effect
Increased transportation costs
Start-up costs
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Case Study: BHP and BHP Steel
Broken Hill Proprietary manufacturing firmIndustries: minerals, copper, petroleum, and
engineering 60,000 employees in 60 countries
BHP Steel $7.6 billion revenuesComplex structure
BHP considered leader in E-commerce
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E-commerce Implementationand BenefitsStage 1: Early Implementation-Electronic
Data Interchange Send/receive business documents/orders
Stage 2: Electronic Trading Gateway Centralize all trading
Stage 3: Internet Site Serve Small customers
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Obstacles Stage 1: Management Commitment and Lack
of technical knowledge. 1st EDI in AustraliaStage 2: Technology issues (no standards)
and lack of customers participationStage 3: immaturity standards internet and
readiness of third parties
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Factors Affecting ImplementationCommitmentTrading partner participationSupplier vs. CustomerTechnology/Media HypeBusiness ValueTraining and EducationRapid technology change +
Complexity/Compatibility (technology and processes)
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Management of Information Systems and E-businessIT AuditInformation Flow AnalysisManufacturing Software SelectionIT Project ManagementData Security Audit
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Global ImplicationsCater to international customers.Follow international customs procedures,
currencies, taxes and regulationsCustomize to local tasteKnowing the global rules for shipmentMake payment easy for international
customers
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Future of E-Commerce and E-BusinessInformation MarketingM-CommerceNew Jobs and Business Oppurtunities
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Ethical IssuesSimilar to ethical issues surrounding other
facets of business lifeRelative anonymity, speed of information
create special issues
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Ethical IssuesIntellectual Property ConcernsPrivacy ConcernsComputer CrimesConsumer Protection
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Ethical IssuesAdwareKey LoggingBait and SwitchEmail SpoofingURL Hijacking
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RecommendationImplement E-Commerce and E-BusinessAdvantages outweigh disadvantages
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