Mar 20 (Ch 14): Ebusiness

In the past few years, ebusiness seems to have permeated every aspect of daily life. In just a short time, both individuals and organizations have embraced Internet technologies to enhance productivity, maximize convenience, and improve com¬munications globally. This chapter focuses on the ebusiness processes changing the nature of the buyer-seller relationship, the role of information technology (IT), and organizational structures and tasks.

LEARNING OUTCOMES

14.1. Compare ecommerce and ebusiness.
Ecommerce is the buying and selling of goods and services over the Internet. Ecommerce refers only to online transactions. Ebusiness is the conducting of business on the Internet, not only buying and selling, but also serving customers and collaborating with business partners. The primary difference between ecommerce and ebusiness is that ebusiness also refers to online exchanges of information. For example, a manufacturer allows its suppliers to monitor production schedules or a financial institution allowing its customers to review their banking, credit card, and mortgage accounts.

14.2. Compare the four types of ebusiness models.
• Business-to-business (B2B) Applies to businesses buying from and selling to each other over the Internet.
• Business-to-consumer (B2C) Applies to any business that sells its products or services to consumers over the Internet.
• Consumer-to-business (C2B) Applies to any consumer that sells a product or service to a business over the Internet.
• Consumer-to-consumer (C2C) Applies to sites primarily offering goods and services to assist consumers interacting with each other over the Internet.

The primary difference between B2B and B2C are the customers; B2B customers are other businesses while B2C markets to consumers. Overall, B2B relations are more complex and have higher security needs; plus B2B is the dominant ebusiness force, representing 80 percent of all online business.

14.3. Describe the benefits and challenges associated with ebusiness.
Ebusiness is the conducting of business on the Internet, not only buying and selling, but also serving customers and collaborating with business partners. Ebusiness benefits include:
• Highly accessible
• Increased customer loyalty
• Improved information content
• Increased convenience
• Increased global reach
• Decreased cost

Ebusiness challenges include:
• Protecting consumers
• Leveraging existing systems
• Increasing liability
• Providing security
• Adhering to taxation rules

14.4. Explain the differences among eshops, emalls, and online auctions.
An eshop is a version of a retail store where customers can shop at any hour of the day without leaving their home or office. An emall consists of a number of eshops; it serves as a gateway through which a visitor can access other eshops. An online auction is a place where buyers and sellers come together to auction items and prices are determined dynamically.

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Business Driven Technology (Customized WMU Edition)
Baltzan & Phillips.