Today’s Strategic Imperative:
E-Business
Jeremy Malley
BSAD – 145
Ch. 3
20 February 2002
Table of Contents
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Business-To-Consumer e-commerce (B2C)
Business-To-Business e-commerce (B2B)
Security
CLJ
CTQ
Business-To-Consumer (B2C)
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Business to consumer e-business is the most
widely reported form of e-business.
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$38.5 billion dollar industry in 2000.
750 million Internet users by 2008
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50% of those users will shop online.
B2C Advantages
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Global accessibility, Reduced order processing,
Greater availability, Closer customer relationships,
Increased customer loyalty, New products and
services, Direct Marketing
B2C
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(cont.)
Disintermediation- the elimination of
intermediaries (distributors and resellers,
for example) in the chain.
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Customers have access to wide range of
competitive prices and sellers for products,
driving down profit margins and the price for
products.
Business-To-Business (B2B)
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B2B is doing business electronically over the
Internet, intranets, or private networks.
Automate the trading process in order to
improve it.
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It can be conducted directly between a buyer and a seller or
through an online intermediary.
Use a more efficient chain, or sell direct to
retailers and or businesses. (Dell)
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Management and redesign of the supply chain has
become a major strategic issue
B2B
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(cont.)
Businesses can use B2B to eliminate paper
based systems, speed up cycle time,
reduce errors, reduce costs, and increase
customer service.
Security
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Security ranks as one of the top management
and consumer concerns about e-business.
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Concerned about protecting company assets and
information and ensuring the integrity of e-business
transactions.
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Sniffing- the interception and reading of electronic messages.
Spoofing- the assumption of a false identity and the execution of
fraudulent transactions.
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Hacking- the unauthorized access to a host computer.
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Security
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Security has become increasingly important with the amount of
business that takes place on the Internet.
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(cont.)
Cyber attacks are on the increase; in 2000 70% of businesses
experienced unauthorized use.
71% of businesses experienced unauthorized use of by insiders, and
79% experienced employee abuse of internet privileges.
Managers need to understand the risks of poor security.
 Attacks can result in damage to technical and information
assets.
 Temporary loss of Web site and Internet access, which can result
in loss of income.
 Internal breaches are more prevalent than external breaches, so
management must take measure to address these inside threats.
CLJ
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“Disintermediation: is e-business a danger for
the channel?”
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By Paul Shearstone, 18 April, 2001
http://www.integratedmar.com/eyc.cfm?item=EYC041801-04
New direct commerce empowered by technology means
manufacturers will no longer require services of either reseller or
distributor middlemen to reach end-user customers, but……
Limits of e-commerce (present form)
 Still not prefered way of doing business
 Not replaced or reduced traditional operations to any significant
extent.
 Comfort level.
 Nor the evironment for skilled sales persons to sell.
CTQ
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What do you feel the role of
disintermediation will be in the future of ecommerce as far as strategic advantages
are concerned? (p.87)