WHAT IS E-BUSINESS?

• Conducting business via the Internet.

Capabilities and Benefits of E-Business

• Global reach, personalization, interactivity, right-time and integrated marketing, and cost savings

Business Web Sites

• Corporate Web site

• Marketing Web site

BUSINESS-TO-BUSINESS (B2B) E-BUSINESS

• Electronic business transactions between businesses using the Internet.

• Electronic data interchanges

• Extranet

• Private exchanges

• Electronic exchanges

• E-procurement

ONLINE SHOPPING COMES OF AGE

• Business-to-consumer e-business (B2C) Selling directly to consumers over the Internet.

• E-tailing accounts for eight percent of all U.S. sales.

• Thirty percent of the U.S. population shops online.

• Services also are important participants in e-business.

E-Tailing and Electronic Store Fronts

• Electronic storefronts Company Web site that sells products to consumers.

• Growth of broadband is aiding e-tailing.

Who Are the Online Buyers and Sellers?

• Online market is changing as customers become more familiar with online shopping.

Benefits of B2C e-Business

• Lower prices

• Convenience

• Personalization

Developing Safe Online Payment Systems

• Encryption, Secure Sockets Layer (SSL), and electronic payment method

E-BUSINESS CHALLENGES

Privacy Issues• Unauthorized sharing of data, cookies, and spyware.

• Employees have concerns that employers are monitoring their Internet behavior.

• Companies worry about data theft.

Internet Fraud• Phishing

Poor Web Site Design and Service• Two-thirds of Internet shopping carts are abandoned before purchase.

Channel Conflicts• Direct sales to customers can compete with business partners.

USING THE WEB’S COMMUNICATION FUNCTION

• Communicate with customers and suppliers through e-mail, instant messaging.

Online Communities

• Internet forums, newsgroups, electronic bulletin boards, and Web communities.

Blogs• Online journal written by a blogger.

Web-Based Promotions• Banner ads and pop-up ads

• Search marketing

MANAGING A WEB SITE

Developing Successful Web Sites

• Planning and preparation

• Content and connections

Costs and Maintenance• Variety of costs:

• Development

• Placing the site on a Web server.

• Maintaining and updating the site.

• Promoting the site.

Measuring Web Site Effectiveness

• profitability

• website traffic counts

• click-through rates

• conversion rates

• research studies

GLOBAL ENVIRONMENT OF E-BUSINESS

• Future growth of many companies is linked to a global strategy that incorporate e-business.

• Use of Internet is growing internationally.

• International competition is growing.

• Can heighten competition in the global marketplace.