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Pertemuan 1

E-Commerce and E-Business

Matakuliah : M0284/Teknologi & Infrastruktur E-Business

Tahun : 2005

Versi : <<versi/revisi>>

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Learning Objectives

� Differentiate between E-Commerce and E-Business.

� Understand B-to-C and B-to-B E-Commerce.

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Overview

� What is E-Commerce?

� Types of E-Commerce

� Drivers, Activities, Values and Models of 

B-to-C E-Commerce

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What is E-Commerce?

� Business activities running over the Internet andWorld Wide Web platform

� Use of TV and toll-free telephones in businessare not usually associated with e-commerce

� Depending on the situation, electronic datainterchange (EDI) may or may not be associatedwith e-commerce. EDI is used for business-to-business transactions

� Examples of e-commerce:

 ± Buying books on Amazon.com ± Promoting cars on Toyota.com

 ± Participating in auctions at eBay.com

 ± Customer support at Fedex.com

 ± Industrial exchanges such as Covisint.com

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Types of E-Commerce

� Business-to-Consumer E-Commerce ± Serves direct consumers. Important activity is

buying

� Business-to-business E-Commerce

 ± Serves businesses. Important activity ispurchasing. Purchasing is differentiated frombuying in that instead of individualsdepartments are involved, formal processes

are followed, high monetary values may beinvolved, and complex negotiations andcontracts may take place

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E-Commerce

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Drivers to B2C E-Commerce

� Social: Affordability and Convenience

� Technological: Stability and Availability

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Social Drivers: B2C E-Commerce

999

6

8

% of US

Households

 Year 

Estimated % of US Households with PCs

Multiple PCs

Single PC

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Social Drivers: B2C E-Commerce

0

0.5

1

1.5

2

2.5

Dollar in '000

1995 1997 1999 2001 2003

 Year 

Estimated Average Price of a PC

Pr ice of PC

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Acceptability profile of various

technologies

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Activities: B2C E-Commerce

� Advertisement and Promotion

� Ordering

� Product Delivery

� After-sales Support

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Values: B2C E-Commerce

� Creating Business Values ± Operational excellence

 ± Customer intimacy

 ± Product and service leadership

� Creating Consumer Values ± Cost

 ± Choice

 ± Convenience

 ± Customization

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Business Models:B2C

Business Model of eBay.com :

� Who? Everybody

� What? Any product

� How? Exchange through auction

� Business value? Efficiency + relationship

� Consumer value? Low price + choice

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Models: B2C E-Commerce.

� Pure-play (primarily Internet based) ± Portal sites/ Advertisements Yahoo.com

  ± Auction-based ebay.com

 ± Retail Merchants Amazon.com

� Brick and Mortar (Click and brick)

  ± New Channels Gateway.com

  ± Reinforce existing channels Promotion

(Toyota.com), transaction (bn.com) support

(Fedex.com)