Chapter 1: Overview of E-Commerce

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1. The 5 Support Areas: 1. People 16. digital enterprise: A new business model that uses IT in a
2. Public Policy fundamental way to accomplish one or more of three basic
3. Marketing and Advertising objectives: reach and engage customers more effectively,
4. Support Services boost employee productivity, and improve operating
5. Business Partnerships efficiency. It uses converged communication and computing
2. brick-and-mortar (old economy) organizations: Old-economy technology in a way that improves business processes.
organizations (corporations) that perform their primary 17. e-business: A broader definition of EC that includes not just the
business offline, selling physical products by means of buying and selling of goods and services, but also servicing
physical agents. customers, collaborating with business partners, and
3. business model: A method of doing business by which a conducting electronic transactions within an organization.
company can generate revenue to sustain itself. 18. e-government: E-commerce model in which a government
4. Business Pressures (Exhibit 1.7): 1. market (economic) entity provides goods, services, or information from or to
2. societal businesses or individual citizens.
3. technological 19. electronic commerce (EC): The process of buying, selling, or
5. Business Processes (Exhibit 1.7): Also called critical response exchanging products, services, or information via computer.
activities or solutions. They include: 20. electronic market (e-marketplace): An online marketplace
1. core competencies where buyers and sellers meet to exchange goods, services,
2. critical response money, or information.
3. activities (solutions) 21. e-tailing: Online retailing, usually B2C.
6. business-to-business (B2B): E-commerce model in which all of 22. ethics: The branch of philosophy that deals with what is
the participants are businesses or other organizations. considered to be right and wrong.
7. business-to-business-to-consumer: E-commerce model in 23. extranet: A network that uses the Internet to link multiple
which a business provides some product or service to a client intranets.
business that maintains its own customers.
24. f-commerce: E-commerce activities conducted on Facebook
8. business-to-consumer (B2C): E-commerce model in which or influenced by the site.
businesses sell to individual shoppers.
25. intrabusiness EC: E-commerce category that includes all
9. business-to-employees: E-commerce model in which an internal organizational activities that involve the exchange of
organization delivers services, information, or products to its goods, services, or information among various units and
individual employees. individuals in an organization.
10. click-and-mortar (click-and-brick) organizations: 26. intranet: An internal corporate or government network that
Organizations that conduct some e-commerce activities, uses Internet tools, such as web browsers, and Internet
usually as an additional marketing channel. protocols.
11. collaborative commerce (c-commerce): E-commerce model in 27. Major Barriers to EC: 1. resistance to new technology
which individuals or groups communicate or collaborate 2. implementation difficulties
online. 3. security concerns
12. consumer-to-business (C2B): E-commerce model in which 4. lack of technology skills
individuals use the Internet to sell products or services to 5. lack of potential customers
organizations or individuals who seek sellers to bid on 6. cost
products or services they need. 28. Major Capabilities That Contribute to the Growth of EC
13. consumer-to-consumer: E-commerce model in which (Exhibit 1.10): 1. efficient transactions
consumers sell directly to other consumers. 2. fast dissemination of information
14. corporate portal: A major gateway through which employees, 3. price comparison for customers
business partners, and the public can enter a corporate 4. personalization, customization
website. 5. global reach
6. rich media, entertainment, social networking
15. digital economy: An economy that is based on digital
7. anytime, anywhere convenience
technologies, including digital communication networks,
8. easy to find product/vendor information
computers, software, and other related information
9. productivity booster
technologies; also called the Internet economy, the new
10. knowledge, advice, collaboration
economy, or the Web economy.
29. Revenue Models: 1. sales
2. transaction fees
3. subscription fees
4. advertising fees
5. affiliate fees
6. licensing fees
7. other revenue sources
30. social commerce: The e-commerce activities conducted in social networks and/or by using social software (i.e., Web 2.0 tools).
31. social computing: An approach aimed at making the human-computer interface more natural.
32. social network: A category of Internet applications that help connect friends, business partners, or individuals with specific interests
by providing free services such as photo presentations, e-mail, blogging, and so on using a variety of tools.
33. social networking: The creation or sponsoring of a social network service and any activity, such as blogging, done in a social network
(external or internal).
34. social networking service (SNS): A service that builds online communities by providing an online space for people to build free
homepages and that provides basic communication and support tools for conducting different activities in the social network.
35. tendering (bidding) system: Model in which a buyer requests would-be sellers to submit bids; the lowest bidder wins.
36. value proposition: The benefits a company can derive from using EC.
37. virtual (pure-play) organizations: Organizations that conduct their business activities solely online.
38. virtual world: A user-defined world in which people can interact, play, and do business. The most publicized virtual world is Second
Life.
39. Web 2.0: The second generation of Internet-based services that lets people collaborate and share information in new ways, such as
social networking sites, wikis, communication tools, and folksonomies.