E-commerce is buying and selling using an electronic medium. It is accepting credit and payments over the net, doing banking transactions using the Internet, selling commodities or information using the World Wide Web and so on.
E-Business in addition to encompassing E-commerce includes both front and back-office applications that form the engine for modern E-commerce. E-business is not just about E-commerce transactions; it's about re-defining old business models, with the aid of technology to maximize customer value. E-Business is the overall strategy and E-commerce is an extremely important facet of E-Business.
Thus e-business involves not merely setting up the company website and being able to accept credit card payments or being able to sell products or services on time. It involves fundamental re-structuring and streamlining of the business using technology by implementing enterprise resource planning (ERP) systems, supply chain management, customer relationship management, data ware housing, data marts, data mining, etc
E BUSINESS MODELS
Ø E business model – An approach to conducting electronic business on the Internet
Business-to-Business (B2B)
Ø Electronic marketplace (E market place) – interactive business communities providing a central market where multiple buyers and sellers can engage in e business activities.
Business-to-Consumer (B2C)
Ø Common B2C e business models include;
§ E shop – A version of retail store where customers can shop at any hour of the day without leaving their home or office
§ E mall – consists of a number of e shops; it serves as a gateway through which a visitor can access other e shops
Ø Business types;
§ Brick-and-mortar business
§ Pure-play business
§ Click-and-mortar business
Consumer-to-Business (C2B)
Ø Priceline.com is an example of a C2B e business model
Ø The demand for C2B e business will increase over the next few years due to customer’s desire for greater convenience and lower prices
Consumer-to-Consumer (C2C)
Ø Online auctions
§ Electronic auction (E auction) – Sellers and buyers solicit consecutive bids from each other and prices are determined dynamically
§ Forward auction – Sellers use as a selling channel to many buyers and the highest bid wins
§ Reverse auction – Buyers use to purchase a product or service, selecting the seller with the lowest bid
Ø C2C communities include;
§ Communities of interest – People interact with each other on specific topics, such as golfing and stamps collecting
§ Communities of relations – People come together to share certain life experiences, such as cancer patients, senior citizens, and car enthusiasts
§ Communities of fantasy – People participate in imaginary environments, such as fantasy football teams and playing one-to-one with Michael Jordan
EBUSINESS BENEFITS AND CHALLENGES
Ø E business benefits include;
§ Highly accessible
§ Increased customer loyalty
§ Improved information content
§ Increased convenience
§ Increased global reach
§ Decreased cost
Ø E business challenges include;
§ Protecting consumers
§ Leveraging existing systems
§ Increased liability
§ Providing security
§ Adhering to taxation rules
Ø There are numerous advantages and limitations in e business revenue models including;
§ Transaction fees
§ License fees
§ Subscription fees
§ Value-added fees
§ Advertising fees
MASHUPS
Ø Web mash up – A Web site or Web application that uses content from more than one source to create a completely new services
§ Application programming interface (API) – A set of routines, protocols, and tools for building software applications
§ Mash up editor – WSYIWYGs (What You See Is What You Get) for mash ups
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