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CHAPTER 1A

INTRODUCTION TO E-BUSINESS AND E-COMMERCE


Dave Chaffey(2011), E-Business and E-Commerce Management, 5th Edition, Prentice Hall
Kenneth C. Laudon (2015), E-Commerce 2015: Business, Technology, Society, 11th Edition, Pearson
INTRODUCTION

 Organizations have now been applying technologies


based on the Internet, World Wide Web and wireless
communications to transform their businesses since the
creation of the first web site (http://info.cern.ch) by Sir
Tim Berners-Lee in 1991.
 Deploying these disruptive digital technologies has
offered many opportunities for innovative businesses to
transform their services.
Table 1.1: Timeline of websites indicating innovation in business model
or marketing communication approach
“ “The Internet a typhoon force, a ten
times force, or is it a bit of wind? Or
is it a force that fundamentally alters
our business?” (Grove, 1996).
ANDY GROVE, CHAIRMAN OF INTEL, ONE OF THE EARLY ADOPTERS OF E-COMMERCE, HAS MADE A METEOROLOGICAL
ANALOGY WITH THE INTERNET

The impact of Internet on Business
E-Business Opportunities

 Reach
 Over 1 billion users globally
 Connect to millions of products
 Richness
 Detailed product information on 20 billion + pages indexed by
Google. Blogs, videos, feeds…
 Personalised messages for users
 Affiliation
 Partnerships are key in the networked economy
E-commerce Trends 2015-2016

 Retail e-commerce grows over 14%


 Continues expansion of mobile, social, and local e-commerce
 On demand service firms show explosive growth
 Cloud computing completes transformation of mobile platform
by storing user content
 Continued growth in Big Data and business analytics
 Government surveillance of online communications expands
Digital Business Transformation

 Significant changes to organisational processes,


structures and system implemented to improve
organisational performance through increasing the use
of digital media and technology platforms.
 How?
 Inbound Marketing
 Mobile Marketing
Inbound Marketing

 The consumer is proactive


 seeking out information for their needs
 interactions with brands are attracted
through content, search and social
media marketing.
 Zero Moment of Truth (ZMOT)
 A summary of today’s multichannel
consumer decision- making for product
purchase where they search, review
ratings, styles, prices and comments on
social media before visiting a retailer.
Inbound Marketing

 Is powerful - advertising wastage is reduced


 Search marketing, content marketing and social media
marketing can be used to target prospects with a defined
need
 they are proactive and self- selecting.
 BUT, marketers may have less control than in traditional
communications where the message is pushed out
 Define audience
 Generate awareness and demand
Inbound Marketing

 Search Marketing
 improve their visibility in search engines for relevant search terms
 Content Marketing
 The management of text, rich media, audio and video content aimed at
engaging customers and prospects to meet business goals, published through
print and digital media
 Social Media Marketing
 Monitoring and facilitating customer–customer interaction and participation
throughout the web to encourage positive engagement with a company
and its brands
 company site, social networks and other third-party sites.
Social Media Marketing

1. Social networking
 The emphasis here is on listening to customers and sharing
engaging content.
 Facebook tends to be most important for consumer audiences
 LinkedIn for business audiences.

2. Social knowledge
 These are informational social networks
 Yahoo! Answers - solving problems and subtly showing how the
products have helped others.
 Wikipedia - relatively little application for marketing.
Social Media Marketing

3. Social sharing/Bookmark
 is a centralized online service which allows users to add,
annotate, edit, and share bookmarks of web documents
 Pinboard- focus on personal management
of bookmarks using tags to organize them.
 Pinterest - an image sharing site that allows users to create
and label theme-based image collections called “boards.”

4. Social news.
 Twitter is the best-known example.
Social Media Marketing

5. Social streaming.
 Rich and streaming media social sites for sharing photos,
video and podcasting.
 YouTube
 Vimeo

6. Company user- generated content and


community.
 Independent
 company’s own social space which may be integrated
into product content (reviews and ratings), a customer
support community or a blog.
 https://www.smartinsights.com/wp-content/uploads/2012/02/social-radar-low-res.jpg
What is E-commerce?

 Use of Internet, Web and wireless communication to


transact business
 More formally:
 Digitally
enabled commercial transactions between and
among organizations and individuals
 Commercial transactions include the exchange of money
or value across organizational boundary, in exchange for
goods, and services
E-commerce from different perspectives

1. A communications perspective
 the delivery of information, products or services or payment by electronic means.
2. A business process perspective
 the application of technology towards the automation of business transactions and
workflows.
3. A service perspective
 enabling cost cutting at the same time as increasing the speed and quality of
service delivery.
4. An online perspective
 the buying and selling of products and information online.
Buy-side e-commerce
 transactions to procure
resources needed by
an organisation from its
suppliers

Sell-side e-commerce
 Transactions involved
with selling products to
an organisation’s
customers.
E-Business defined

Electronic business (e-business)


 All electronically mediated information exchanges, both within an
organization and with external stakeholders supporting the range of
business processes.
 How businesses apply digital technology and media to improve the
competitiveness of their organisation through optimising internal
processes with online and traditional channels to market and supply.

Information and communication technology (ICT or IT)


 The software applications, computer hardware and networks used to
create e-business systems.
“ The transformation of key
business processes through the
use of Internet technologies.
DEFINITION BY IBM, 1997 ”
E-Business
“ when a business has fully integrated information and
communications technologies (ICTs) into its operations,
potentially redesigning its business processes around ICT
or completely reinventing its business model . . . e-
business, is understood to be the integration of all


these activities with the internal processes of a business
through ICT.
DTI (2000)

E-Business
Three definitions of the relationship
between e-commerce and e-business
E-commerce Vs E-Business

 E - Commerce (EC)
 Describes the process of buying, selling, transferring or exchanging
products, services, and/or information via computer networks
 E – Business
 Refers to a broader definition of EC, not just buying and selling of
goods and services,
 but also servicing customers, collaborating with business partners,
conducting e-learning
 Eg: Online Inventory System
The relationship between intranets,
extranets and the Internet
Intranet
 A private network within a
single company using
Internet standards to enable
employees to access and
share information using web
publishing technology.
Extranet
 A service provided through
Internet and web
technology delivered by
extending an intranet
beyond a company to
customers, suppliers and
collaborators.
Why Intranet?

1. Improved information sharing


2. Enhanced communications and information sharing
3. Increased consistency of information
4. Increased accuracy of information
5. Reduced or eliminated processing
6. Easier organizational publishing
Enterprise Social Media Software

 Enterprise social media software


 Systems used inside organisations to
enable real-time Collaboration
between employees and other
stakeholders
 customers and suppliers to support
business processes (customer service)
 supply chain management
 new product development.

Yammer Enterprise Social Media tool


(www.yammer.com)