Slide 1.

Introduction to e-business and

e-commerce

Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, Marketing Insights Limited 2009

Slide 1.2

The impact of the Internet on

business
Andy Grove, Chairman of Intel, one of the
early adopters of e-commerce, has made a
meteorological analogy with the Internet.
He says:
Is the Internet a typhoon force, a ten times
force, or is it a bit of wind? Or is it a force that
fundamentally alters our business? (Grove,
1996)

Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, Marketing Insights Limited 2009

Slide 1.3

E-business opportunities
Reach
Over 1 billion users globally
Connect to millions of products

Richness
Detailed product information on 20 billion +
pages indexed by Google. Blogs, videos,
feeds
Personalized messages for users

Affiliation
Partnerships are key in the networked
economy
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, Marketing Insights Limited 2009

Slide 1.4

What is e-commerce and e-business?

You are attending a role in the e-business
team of a global bank
You anticipate you may be asked the
distinction between e-commerce and
e-business.
Write down a definition for each
E-commerce:

E-business:

Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, Marketing Insights Limited 2009

Slide 1.5

What is e-commerce and e-business?

E-commerce :
All electronically mediated information
exchange between an organization and its
external stakeholders (Chaffey)
Digitally enabled commercial transactions
between and among organizations and
individuals

Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, Marketing Insights Limited 2009

Slide 1.6

What is e-commerce and e-business?

E-business:
All electronically mediated information
exchanges, both within an organization and with
external stakeholders supporting the range of
business process (Chaffey)
Digital enablement of transactions and
processes within a firm, involving information
systems under firms control. Does not include
commercial transactions involving an exchange
of value across organizational boundaries
(Laudon)
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, Marketing Insights Limited 2009

Slide 1.7

Figure 1.2

The distinction between buy-side and sell-side e-commerce

Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, Marketing Insights Limited 2009

Slide 1.8

Figure 1.3

Three definitions of the relationship between e-commerce and e-business

Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, Marketing Insights Limited 2009

Slide 1.9

Intranet vs. Extranet

Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, Marketing Insights Limited 2009

Slide 1.10

Figure 1.4

The relationship between intranets, extranets and the Internet

Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, Marketing Insights Limited 2009

Slide 1.11

Why Study E-commerce?

E-commerce technology is different, more

powerful than previous technologies
E-commerce bringing fundamental
changes to commerce
Traditional commerce:

Passive consumer
Sales-force driven
Fixed prices
Information asymmetry
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, Marketing Insights Limited 2009

Slide 1.12

Unique Features of E-commerce

Technology
1.
2.
3.
4.
5.
6.
7.
8.

Ubiquity
Global reach
Universal standards
Information richness
Interactivity
Information density
Personalization/customization
Social technology
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, Marketing Insights Limited 2009

Slide 1.13

Origins & Growth of E-commerce

Precursors:
Electronic Data Interchange (EDI)

1995: Beginning of e-commerce

First sales of banner advertisements

Since then, e-commerce fastest growing

form of commerce in the United States

Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, Marketing Insights Limited 2009

Slide 1.14

The Growth of B2C E-commerce

SOURCES: eMarketer, Inc., 2009a; U.S. Census Bureau, 2009b;

Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, Marketing Insights Limited 2009

Slide 1.15

The Growth of B2B E-commerce

SOURCES: U.S. Census Bureau, 2009a; authors estimates.

Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, Marketing Insights Limited 2009

Slide 1.16

E-commerce: A Brief History

19952000: Innovation
Key concepts developed
Dot-coms; heavy venture capital investment

20012006: Consolidation
Emphasis on business-driven approach

2006Present: Reinvention
Extension of technologies
New models based on user-generated content, social
networking, services

Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, Marketing Insights Limited 2009

Slide 1.17

Web 2.0 and Beyond

Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, Marketing Insights Limited 2009

Slide 1.18

Figure 1.7

Evolution of web technologies

Source: Adapted from Spivack (2007)

Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, Marketing Insights Limited 2009

Slide 1.19

Business-Consumer Model of e-Commerce

Classified by market relationship
Business-to-Consumer (B2C)
Business-to-Business (B2B)
Consumer-to-Consumer (C2C)

Classified by technology used

Peer-to-Peer (P2P), e.g., BitTorrent and Napster
Mobile commerce (M-commerce)

Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, Marketing Insights Limited 2009

Slide 1.20

Summary and examples of transaction alternatives between businesses,

consumers and governmental organizations
Figure 1.8

Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, Marketing Insights Limited 2009

Slide 1.21

E-government
What is?
What are the benefits?

Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, Marketing Insights Limited 2009

Slide 1.22

Thank You
for
Your Attention

Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, Marketing Insights Limited 2009