...Challenges of E-Commerce MKT552 The Challenges of E-Commerce Today’s business managers face many challenges when migrating a traditional ‘brick and mortar’ company to that which is now known as the evolutionary ‘click and mortar’ business model – that is, a business that operates in the Internet market space. To stand boldly in the face of challenges presented by the networked economy, firms must develop competencies that enable not only high performance market interactivity and adaptive, intuitive customer engagement platforms, but also contribute to the development of sound business strategies that ensure a firm’s competitiveness in the vast web-based business environment. Considering this, important factors such as copyright infringement, regulatory compliance, and policy and procedure guidelines must be considered in order to ensure safe business practices while endorsing and protecting a company’s brand, reputation, and intellectual property. This paper serves to identify the primary challenges posed by e-commerce landscapes, while profiling the characteristics of the four infrastructures most commonly found in web-based business models. Furthermore, this paper also discusses the ways that managers can optimize their business strategies to gain competitive advantage by employing the opportunities provided by the Internet market space. Overview of e-Commerce Business Models Today’s networked economy presents a variety of business challenges that are unique to e-commerce...
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...Electronic Commerce Research and Applications 3 (2004) 389–404 www.elsevier.com/locate/ecra Analysis of E-commerce innovation and impact: a hypercube model Jen-Her Wu a a,b,* , Tzyh-Lih Hisa a,c Department of Information Management, National Sun Yat-Sen University, 70 Lien-Hai Road, Kaohsiung 80424, Taiwan b Institute of Health Care Management, National Sun Yat-Sen University, Kaohsiung, Taiwan c Department of Information Management, Chinese Navel Academy, Kaohsiung, Taiwan Received 17 February 2004; received in revised form 19 April 2004; accepted 19 May 2004 Available online 2 July 2004 Abstract Electronic commerce (E-commerce) innovating applications have posed novel, technical, organizational and commercial challenges. This study uses a hypercube model to investigate these innovative changes and focuses on their impacts on E-commerce stakeholders: providers, E-commerce companies, customers, and complementors. The results indicate that mobile commerce (M-commerce) differs substantially from Web-based commerce in some technological components, yet both share common business model. However, from Web-based to M-commerce, innovation is architectural for customers and E-commerce companies, but a radical change for complementors. From M-commerce to Ucommerce, innovation is modular to customers, architectural to complementors and radical to E-commerce companies and providers. Thereafter, the critical impacts of E-commerce innovations on the stakeholders are identified...
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...analytical framework for evaluating e-commerce business models and strategies Chung-Shing Lee The author Chung-Shing Lee is Director of Electronic Commerce Resource Center and an Assistant Professor of Information Systems and Technology Management in the School of Business at Pacific Lutheran University, Tacoma, Washington, USA. Keywords Internet, Economy, Innovation, Strategy Abstract Electronic commerce or business is more than just another way to sustain or enhance existing business practices. Rather, e-commerce is a paradigm shift. It is a ``disruptive’’ innovation that is radically changing the traditional way of doing business. The industry is moving so fast because it operates under totally different principles and work rules in the digital economy. A general rule in e-commerce is that there is no simple prescription and almost no such thing as an established business or revenue model for companies even within the same industry. Under such conditions, an analytical framework is needed to assist e-commerce planners and strategic managers in assessing the critical success factors when formulating e-commerce business models and strategies. This research develops an analytical framework based on the theories of transaction costs and switching costs. Both demand-side and supply-side economies of scale and scope are also applied to the development of this framework. In addition, e-commerce revenue models and strategies are also discussed. Based on the analytical framework developed...
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...called ‘Internet revolution’, electronic commerce, commonly known as e-commerce or eCommerce, remains a relatively new, emerging and constantly changing area of business management and information technology. There has been and continues to be, much publicity and discussion about e-commerce. According to the editor-in-chief of the International Journal of Electronic Commerce, Vladimir Zwass, ‘Electronic commerce is sharing business information, maintaining business relationships and conducting business transactions by means of telecommunications networks’ (Zwass, 1996). However, the term may refer to more than just buying and selling products online. It also includes the entire online process of developing, marketing, selling, delivering, servicing and paying for products and services. The amount of trade conducted electronically has grown extraordinarily with widespread Internet usage and is predicted to continue at this rate, or even accelerate. Electronic commerce covers a range of different types of businesses, from consumer based retail sites, through auction or music sites to business exchanges trading goods and services between corporations (Beyon-Davies, 2009). It is currently one of the most important aspects of the Internet to emerge (Curtis and Cobham, 2005). Although "conventional" commerce is still used by many companies, there is a growing tend to use electronic commerce, as more and more businesses move sections of their operations onto the Internet. As a result...
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...April 1, 2013 Janine Lyn A. David Internet Retailing TM – CHAPTER 1 1. Introduction It has been predicted by scholars and experts over the past decade that there will be a steady migration from a brick and mortar retailing model to internet/online shopping stores (Levy & Weitz 2001; Chiang and Dholakia, 2003) (Solorzano, 2011; Ferguson, 2011). With this trend, many traditional retailers have developed their own online stores. There were also the “pure plays”, companies that are mainly start-up e-commerce businesses, which are competing alongside traditional retailers in the marketplace. According to the Internet World Stats 2011, there are currently over two billion Internet users daily at the growth of 480 percent in the past 10 years. This has certainly led to tougher competition for many internet retailers that want to stay competitive and profitable. These businesses want to differentiate themselves, become visible, and stand out above their competitors – gain a competitive advantage. According to Forrester, CIOs have a vital role to play in developing business strategy and framing business technology strategy. Through this approach, IT is viewed as a business enabler for value creation and with this thinking they believe it has a great opportunity to influence business agenda through technology innovation. Even though the effect of a high IT investment on the business’s performance has not been proved (Bharadwaj, 2000), these businesses, both the online-only...
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...1 Overview of Electronic Commerce © 2008 Pearson Prentice Hall, Electronic Commerce 2008, Efraim Turban, et al. Learning Objectives 1. Define electronic commerce (EC) and describe its various categories. 2. Describe and discuss the content and framework of EC. 3. Describe the major types of EC transactions. 4. Describe the digital revolution as a driver of EC. 5. Describe the business environment as a driver of EC. 1-2 1 9/12/2011 Learning Objectives 6. Describe some EC business models. 7. Describe the benefits of EC to organizations, consumers, and society. 8. Describe the limitations of EC. 9. Describe the contribution of EC to organizations responding to environmental pressures. 10. Describe online social and business networks. 1-3 Electronic Commerce: Definitions and Concepts electronic commerce (EC) The process of buying, selling, or exchanging products, services, or information via computer networks 1-4 2 9/12/2011 Electronic Commerce: Definitions and Concepts EC can be defined from these perspectives: Business process Service Learning Collaboration Community 1-5 Electronic Commerce: Definitions and Concepts e-business A broader definition of EC that includes not just the buying and selling of goods and services, but also servicing customers, collaborating with business partners, and conducting electronic transactions within an organization 1-6 3 9/12/2011 Electronic Commerce: Definitions and Concepts ...
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...framework for evaluating e-commerce business models and strategies Chung-Shing Lee The author Chung-Shing Lee is Director of Electronic Commerce Resource Center and an Assistant Professor of Information Systems and Technology Management in the School of Business at Pacific Lutheran University, Tacoma, Washington, USA. Keywords Internet, Economy, Innovation, Strategy Abstract Electronic commerce or business is more than just another way to sustain or enhance existing business practices. Rather, e-commerce is a paradigm shift. It is a ``disruptive’’ innovation that is radically changing the traditional way of doing business. The industry is moving so fast because it operates under totally different principles and work rules in the digital economy. A general rule in e-commerce is that there is no simple prescription and almost no such thing as an established business or revenue model for companies even within the same industry. Under such conditions, an analytical framework is needed to assist e-commerce planners and strategic managers in assessing the critical success factors when formulating e-commerce business models and strategies. This research develops an analytical framework based on the theories of transaction costs and switching costs. Both demand-side and supply-side economies of scale and scope are also applied to the development of this framework. In addition, e-commerce revenue models and strategies are also discussed. Based on the analytical framework...
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...Instructor’s Manual: Chapter 2 E-commerce Business Models and Concepts Teaching Objectives • Identify the key components of e-commerce business models. • Describe the major B2C business models. • Describe the major B2B business models. • Explain the key business concepts and strategies applicable to e-commerce. Key Terms business model, p. 65 business plan, p. 65 e-commerce business model, p. 65 value proposition, p. 66 revenue model, p. 66 advertising revenue model, p. 67 subscription revenue model, p. 67 transaction fee revenue model, p. 67 sales revenue model, p. 67 affiliate revenue model, p. 67 market opportunity, p. 68 marketspace, p. 68 competitive environment, p. 72 competitive advantage, p. 72 asymmetry, p. 72 first-mover advantage, p. 73 complementary resources, p. 73 unfair competitive advantage, p. 73 perfect market, p. 73 leverage, p. 73 market strategy, p. 74 organizational development, p. 74 management team, p. 74 e-tailer, p. 78 barriers to entry, p. 78 community provider, p. 80 intellectual property, p. 81 content provider, p. 81 portal, p. 84 transaction broker, p. 85 market creator, p. 86 service provider, p. 86 e-distributor, p. 88 e-procurement firm, p. 88 B2B service provider, p. 89 application service provider (ASP), p. 89 scale economies, p. 89 exchange, p. 89 industry consortia, p. 90 private industrial networks, p. 90 industry structure, p. 93 industry structural analysis, p. 94 ...
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...Lecture 1, 2, 3, 4 Business: Formal organization that makes profit. MIS: How to use information system and technology to help your firm achieve business objectives. Why is information system important for business? 1. Operational excellence 2. New products, services, and business models. 3. Improved decision making 4. Attain consumer and supplier intimacy. 5. Promote competitive advantages. 6. Ensure survival of organization. Data: Raw facts that represent objects and events occurring in an organization. Data > -Input devices- > Process > Information What is the difference between Data & Information? Information is processed data, it is data that has been shaped into a meaningful form. Information technology: consists of all hardware and software that a firm needs to use in order to achieve its goals and objectives. Information system: A set of components that collect data, store it and then distribute it as information to support decision making and control in an organization which is an application. What are the 4 activities in an information system? 1. Input data. 2. Process data. 3. Output information. 4. Feedback. List and describe the 3 dimensions of an information system. Organization: Structure, history, and culture of the organization affect how information system is used and built. People: Information system needs skilled people to build them, maintain them, and understand how to use them in achieving business goals. Technology: 1. Computer hardware. 2....
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...Electronic Commerce Decisions The decision to take up electronic commerce should be a strategic one, which is informed by the broad objectives of the firm. Whether or not electronic commerce will build value, reduce costs, or simply result in an extra layer of IT infrastructure that requires on-going support, are still issues for debate. Haag, S., & Cummings, M. (2008, pg. 227), in their case study of America Online (AOL) imply that AOL is "inching" toward becoming an Internet bank. In this posting, I discuss the recommendations I would make to AOL management, and the advice I would make to them, on the processes and outcomes they should expect from implementing the recommendations. Furthermore, recommendations on whether to follow the B2B or B2C model would be made for a small office supply company, with a small budget for IT, whose customers are local businesses, but does have a big need to be able to manage materials, delivery schedules, and build customer loyalty. The critical factors that would come into play in making this decision will also be discussed, as supported by documentary evidence and research. E-commerce processes According to Duffy, G., & Dale, B. G. (2002), it is not easy to find a generally accepted definition of Electronic commerce (e-commerce). Haag, S., & Cummings, M. (2008), state that e-commerce is commerce accelerated and enhanced by Information technology (IT), in particular the internet, enabling customers, consumers, and companies...
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...Beginning 1) The term e-business refers to the digital enabling of transactions and processes involving an exchange of value across organizational boundaries. Answer: FALSE 2) Price discovery refers to the ability of merchants to segment the market into groups willing to pay different prices. Answer: FALSE 3) Personalization involves targeting marketing messages to specific individuals by adjusting the message based upon a consumer's preferences or past purchasing behavior. Answer: TRUE 4) The online marketplace is characterized by persistent price dispersion. Answer: TRUE 5) The future of e-commerce is likely to include a decrease in government regulation both in the United States and worldwide. Answer: FALSE 6) Which of the following statements about e-commerce in the United States in 2014 is not true? D) Growth rates for retail e-commerce are higher in the United States than in China. 7) In 2014, roughly ________ million people in the United States accessed the Internet via tablets. C) 147 8) Which of the following is not a major business trend in e-commerce in 2014-2015? B) Small businesses and entrepreneurs are hampered by the rising cost of market entry caused by increased presence of industry giants. 9) All of the following are major social trends in e-commerce in 2014-2015 except for: C) the refusal of online retailers to accept taxation of Internet sales. 10) Which of the following features of e-commerce technology is related to...
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...Overview of Electronic Commerce 1. Define electronic commerce (EC) and describe its various categories. 2. Describe and discuss the content and framework of EC. 3. Describe the major types of EC transactions. 4. Discuss e-commerce 2.0. 5. Understand the elements of the digital world. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 1-1 6. Describe the drivers of EC as they relate to business pressures and organizational responses. 7. Describe some EC business models. 8. Describe the benefits and limitations of EC to organizations, consumers, and society. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 1-2 • electronic commerce (EC) The process of buying, selling, or exchanging products, services, or information via computer • e-business A broader definition of EC that includes not just the buying and selling of goods and services, but also servicing customers, collaborating with business partners, and conducting electronic transactions within an organization Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 1-3 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 1-4 • OTHER EC CONCEPTS – Pure Versus Partial EC – EC Organizations • brick-and-mortar (old economy) organizations Old-economy organizations (corporations) that perform their primary business off-line, selling physical products by means of physical agents • virtual (pure-play)...
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...Comp3710 / Comp7580 E-Transformation in Business Dr. Alfredo Milani Reference: Dave Chaffey. E-Business and E-Commerce Management. 2nd Edition. Prentice Hall, 2004, Chapter 4, 5. K.C. Laudon, and J.P. Laudon. Management Information Systems: Management the Digital Firm. 8th Edition. Prentice Hall, 2004, Chapter 3. Lecture 3 E-business Strategy Learning objectives Follow an appropriate strategy process model for e-business; Apply tools to generate and select e-business strategies Comp3710/Comp7580 3 Michael Porter on the Internet ‘The key question is not whether to deploy Internet technology – companies have no choice if they want to stay competitive – but how to deploy it.’ Porter, M. (2001) Strategy and the Internet, Harvard Business Review, March 2001, 62–78. Comp3710/Comp7580 4 Strategy What is a strategy? • • • • ‘Defines how we will meet our objectives’ ‘Sets allocation of resources to meet goals’ ‘Selects preferred strategic option to compete within a market’ ‘Provides a long-term plan for the development of the organization’ Strategy: A broad-based formula for how a business is going to compete, what its goals should be, and what plans and policies will be needed to carry out those goals Comp3710/Comp7580 5 E-commerce strategy (e-strategy) The formulation and execution of a vision of how a new or existing company intends to do business electronically Comp3710/Comp7580 6 Different forms of organizational strategy ...
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...multi-stage e-commerce model Rajesh Salunkhe May 13th, 2013 Kaplan University (Prof. Sheila Fournier-Bonilla) Abstract This paper is written to review some of the challenges associated with all global systems attempting to implement a multi-stage e-commerce model. The paper endeavors to examine these challenges from a cultural, language, time and distance, infrastructure, and currency perspective. Additionally challenges related to state, regional and national law too are examined. Challenges implementing multi-stage e-commerce model Implementing global systems for a multi-stage ecommerce model can be a daunting challenge and yet provide a growth opportunity simultaneously. Simplistically, e-commerce refers to some form of electronic activity (e.g. buying or selling goods or services online) , that cross organizational barriers, with or without the involvement of WWW or Internet. Ecommerce systems can be implemented as Business-to-Business (B2B), Business-to-Consumer (B2C) , Consumer-to-Consumer (C2C) and Business-to-Government (B2G) models (IBMR, 2008). Regardless of the model, if their associated challenges are well-identified and proactively addressed, then a new world of opportunity due to market expansion and growth potential, awaits the companies, undertaking the risk to implement these e-commerce models...
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...In the history of the development of e-commerce, innovations such as WWW and Internet are seen at the heart of understanding the subject. Over the past twenty years Internet has become the lifeline of any business. Current trends show that the use of Internet, smart phones and the confidence of the people in using their cards online are growing exponentially. Experts such as AMR research, Jupiter Media, Emarketer.com predict a promising and glorious future for the e-commerce in the 21st century. The total volume of e-commerce has been growing by 15 to 25 percent every year and will continue to grow. However, there are challenges for e-commerce to grow in future, it will grow but the growth will vary from country to country and affect the online market at various time periods and the main question is how fast will it grow and what will be the scope of its growth in the future 5 years. These are the main questions that will be addressed in this essay, which will focus on three interrelated broad themes that e-commerce involve: society, business and technology. It is a period of reinvention involving the extension of Internet technologies, and the discovery of new business models based on consumer-generated content and social networking. While a variety of definitions of the term e-commerce have been suggested this essay will use the term suggested by Cabinet Office in 1999: ‘E-commerce is the exchange of information across electronic networks, at any stage in the supply chain...
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