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Chapter1OverviewofElectronicCommerceCopyright?2010PearsonEducation,Inc.PublishingasPrenticeHallLearningObjectives

Defineelectroniccommerce(EC)anddescribeitsvariouscategories.DescribeanddiscussthecontentandframeworkofEC.DescribethemajortypesofECtransactions.Discusse-commerce2.0.Understandtheelementsofthedigitalworld.1-2Copyright?2010PearsonEducation,Inc.PublishingasPrenticeHallLearningObjectives

DescribethedriversofECastheyrelatetobusinesspressuresandorganizationalresponses.DescribesomeECbusinessmodels.DescribethebenefitsandlimitationsofECtoorganizations,consumers,andsociety.1-3Copyright?2010PearsonEducation,Inc.PublishingasPrenticeHallElectronicCommerce:

DefinitionsandConceptselectroniccommerce(EC) Theprocessofbuying,selling,orexchangingproducts,services,orinformationviacomputere-business AbroaderdefinitionofECthatincludesnotjustthebuyingandsellingofgoodsandservices,butalsoservicingcustomers,collaboratingwithbusinesspartners,andconductingelectronictransactionswithinanorganization1-4Copyright?2010PearsonEducation,Inc.PublishingasPrenticeHallElectronicCommerce:

DefinitionsandConcepts1-5Copyright?2010PearsonEducation,Inc.PublishingasPrenticeHallElectronicCommerce:

DefinitionsandConceptsOTHERECCONCEPTSPureVersusPartialECECOrganizationsbrick-and-mortar(oldeconomy)organizations Old-economyorganizations(corporations)thatperformtheirprimarybusinessoff-line,sellingphysicalproductsbymeansofphysicalagentsvirtual(pure-play)organizations Organizationsthatconducttheirbusinessactivitiessolelyonlineclick-and-mortar(click-and-brick)organizations Organizationsthatconductsomee-commerceactivities,usuallyasanadditionalmarketingchannel1-6Copyright?2010PearsonEducation,Inc.PublishingasPrenticeHallElectronicCommerce:

DefinitionsandConceptselectronicmarket(e-marketplace) Anonlinemarketplacewherebuyersandsellersmeettoexchangegoods,services,money,orinformation1-7Copyright?2010PearsonEducation,Inc.PublishingasPrenticeHallElectronicCommerce:

DefinitionsandConceptsInterorganizationalinformationsystems(IOSs) CommunicationssystemsthatallowroutinetransactionprocessingandinformationflowbetweentwoormoreorganizationsIntraorganizationalinformationsystems Communicationsystemsthatenablee-commerceactivitiestogoonwithinindividualorganizations1-8Copyright?2010PearsonEducation,Inc.PublishingasPrenticeHallTheElectronicCommerceField:Classification,Content,andHistoryintranet AninternalcorporateorgovernmentnetworkthatusesInternettools,suchasWebbrowsers,andInternetprotocolsextranet AnetworkthatusestheInternettolinkmultipleintranets1-9Copyright?2010PearsonEducation,Inc.PublishingasPrenticeHallTheElectronicCommerceField:Classification,Content,andHistoryANECFRAMEWORKFivesupportareasforECapplicationsPeoplePublicpolicyMarketingandadvertisementSupportservicesBusinesspartnerships1-10Copyright?2010PearsonEducation,Inc.PublishingasPrenticeHall1-11Copyright?2010PearsonEducation,Inc.PublishingasPrenticeHallTheElectronicCommerceField:Classification,Content,andHistoryECISCLASSIFIEDBYTHENATUREANDDIRECTIONOFTRANSACTIONSANDINTERACTIONSbusiness-to-business(B2B) E-commercemodelinwhichalloftheparticipantsarebusinessesorotherorganizationsbusiness-to-consumer(B2C) E-commercemodelinwhichbusinessesselltoindividualshopperse-tailing Onlineretailing,usuallyB2C1-12Copyright?2010PearsonEducation,Inc.PublishingasPrenticeHallTheElectronicCommerceField:Classification,Content,andHistorybusiness-to-business-to-consumer(B2B2C) E-commercemodelinwhichabusinessprovidessomeproductorservicetoaclientbusinessthatmaintainsitsowncustomersconsumer-to-business(C2B) E-commercemodelinwhichindividualsusetheInternettosellproductsorservicestoorganizationsorindividualswhoseeksellerstobidonproductsorservicestheyneed1-13Copyright?2010PearsonEducation,Inc.PublishingasPrenticeHallTheElectronicCommerceField:Classification,Content,andHistoryintrabusinessEC E-commercecategorythatincludesallinternalorganizationalactivitiesthatinvolvetheexchangeofgoods,services,orinformationamongvariousunitsandindividualsinanorganizationbusiness-to-employees(B2E) E-commercemodelinwhichanorganizationdeliversservices,information,orproductstoitsindividualemployees1-14Copyright?2010PearsonEducation,Inc.PublishingasPrenticeHallTheElectronicCommerceField:Classification,Content,andHistoryconsumer-to-consumer(C2C) E-commercemodelinwhichconsumersselldirectlytootherconsumerscollaborativecommerce(c-commerce) E-commercemodelinwhichindividualsorgroupscommunicateorcollaborateonline1-15Copyright?2010PearsonEducation,Inc.PublishingasPrenticeHallTheElectronicCommerceField:Classification,Content,andHistorye-learning Theonlinedeliveryofinformationforpurposesoftrainingoreducatione-government E-commercemodelinwhichagovernmententitybuysorprovidesgoods,services,orinformationfromortobusinessesorindividualcitizens1-16Copyright?2010PearsonEducation,Inc.PublishingasPrenticeHallE-Commerce2.0:FromWeb2.0toEnterpriseSocialNetworkingandVirtualWorldssocialcomputing Anapproachaimedatmakingthehuman-computerinterfacemorenaturalWeb2.0 Thesecond-generationofInternet-basedservicesthatletpeoplecollaborateandshareinformationonlineinnewways,suchassocialnetworkingsites,wikis,communicationtools,andfolksonomies1-17Copyright?2010PearsonEducation,Inc.PublishingasPrenticeHallE-Commerce2.0:FromWeb2.0toEnterpriseSocialNetworkingandVirtualWorldssocialnetwork AcategoryofInternetapplicationsthathelpconnectfriends,businesspartners,orindividualswithspecificinterestsbyprovidingfreeservicessuchasphotopresentations, e-mail,blogging,andsoonusingavarietyoftools1-18Copyright?2010PearsonEducation,Inc.PublishingasPrenticeHallE-Commerce2.0:FromWeb2.0toEnterpriseSocialNetworkingandVirtualWorlds1-19Copyright?2010PearsonEducation,Inc.PublishingasPrenticeHallE-Commerce2.0:FromWeb2.0toEnterpriseSocialNetworkingandVirtualWorldssocialnetworkservice(SNS) Aservicethatbuildsonlinecommunitiesbyprovidinganonlinespaceforpeopletobuildfreehomepagesandthatprovidesbasiccommunicationandsupporttoolsforconductingdifferentactivitiesinthesocialnetworksocialnetworking Thecreationorsponsoringofasocialnetworkserviceandanyactivity,suchasblogging,doneinasocialnetwork(externalorinternal)1-20Copyright?2010PearsonEducation,Inc.PublishingasPrenticeHallE-Commerce2.0:FromWeb2.0toEnterpriseSocialNetworkingandVirtualWorldsenterprise-orientednetworks SocialnetworkswhoseprimaryobjectiveistofacilitatebusinessExamplesofEnterpriseSocialNetworks1-21Copyright?2010PearsonEducation,Inc.PublishingasPrenticeHallE-Commerce2.0:FromWeb2.0toEnterpriseSocialNetworkingandVirtualWorldsvirtualworld Auser-definedworldinwhichpeoplecaninteract,play,anddobusiness.ThemostpublicizedvirtualworldisSecondLifeHowStudentsMakeMoneyinaVirtualWorld1-22Copyright?2010PearsonEducation,Inc.PublishingasPrenticeHallTheDigitalWorld:

Economy,Enterprises,andSocietydigitaleconomy Aneconomythatisbasedondigitaltechnologies,includingdigitalcommunicationnetworks,computers,software,andotherrelatedinformationtechnologies;alsocalledtheInterneteconomy,theneweconomy,ortheWebeconomy1-23Copyright?2010PearsonEducation,Inc.PublishingasPrenticeHallTheDigitalWorld:

Economy,Enterprises,andSocietydigitalenterprise AnewbusinessmodelthatusesITinafundamentalwaytoaccomplishoneormoreofthreebasicobjectives:reachandengagecustomersmoreeffectively,boostemployeeproductivity,andimproveoperatingefficiency.Itusesconvergedcommunicationandcomputingtechnologyinawaythatimprovesbusinessprocesses1-24Copyright?2010PearsonEducation,Inc.PublishingasPrenticeHall1-25Copyright?2010PearsonEducation,Inc.PublishingasPrenticeHallTheDigitalWorld:

Economy,Enterprises,andSocietycorporateportal Amajorgatewaythroughwhichemployees,businesspartners,andthepubliccanenteracorporateWebsite1-26Copyright?2010PearsonEducation,Inc.PublishingasPrenticeHallTheDigitalWorld:

Economy,Enterprises,andSociety1-27Copyright?2010PearsonEducation,Inc.PublishingasPrenticeHall1-28Copyright?2010PearsonEducation,Inc.PublishingasPrenticeHallElectronicCommerceDrivers

andtheChangingBusinessEnvironmentTheChangingBusinessEnvironmentEconomic,legal,societal,andtechnologicalfactorshavecreatedahighlycompetitivebusinessenvironmentinwhichcustomersarebecomingmorepowerfulTheseenvironmentalfactorscanchangequickly,vigorously,andsometimesinanunpredictablemannerCompaniesneedtoreactquicklytoboththeproblemsandtheopportunitiesresultingfromthisnewbusinessenvironment1-29Copyright?2010PearsonEducation,Inc.PublishingasPrenticeHallElectronicCommerceDrivers

andtheChangingBusinessEnvironment1-30Copyright?2010PearsonEducation,Inc.PublishingasPrenticeHallElectronicCommerceDrivers

andtheChangingBusinessEnvironmentTheBusinessEnvironmentandPerformanceImpactModelBusinessPressuresOrganizationalResponseStrategies1-31Copyright?2010PearsonEducation,Inc.PublishingasPrenticeHallElectronicCommerceBusinessModelsbusinessmodel Amethodofdoingbusinessbywhichacompanycangeneraterevenuetosustainitself1-32Copyright?2010PearsonEducation,Inc.PublishingasPrenticeHallElectronicCommerceBusinessModelsTHESTRUCTUREANDPROPERTIESOFBUSINESSMODELSRevenueModelsSalesTransactionfeesSubscriptionfeesAdvertisingfeesAffiliatefeesOtherrevenuesources1-33Copyright?2010PearsonEducation,Inc.PublishingasPrenticeHall1-34Copyright?2010PearsonEducation,Inc.PublishingasPrenticeHall1-35Copyright?2010PearsonEducation,Inc.PublishingasPrenticeHallElectronicCommerceBusinessModelsvalueproposition ThebenefitsacompanycanderivefromusingECFunctionsofaBusinessModel1-36Copyright?2010PearsonEducation,Inc.PublishingasPrenticeHallElectronicCommerceBusinessModelsTYPICALECBUSINESSMODELSOnlinedirectmarketingElectronictenderingsystemstendering(bidding)system Modelinwhichabuyerrequestswould-besellerstosubmitbids;thelowestbidderwinsElectronicmarketplacesandexchangesViralmarketingSocialnetworkingandWeb2.0tools1-37Copyright?2010PearsonEducation,Inc.PublishingasPrenticeHallTheBenefits,Limitations,andImpactsofElectronicCommerceTHEBENEFITSANDIMPACTSOFECECprovidesbenefitstoorganizations,individualcustomers,andsocietyEthicalIssuesethics ThebranchofphilosophythatdealswithwhatisconsideredtoberightandwrongWHYSTUDYE-COMMERCE?1-38Copyright?2010PearsonEducation,Inc.PublishingasPrenticeHallManagerialIssuesIsitreal?WhyisB2Be-commercesoessential?Whatshouldbemybusinessmodel?Howdowetransformourorganizationintoadigitalone?Howshouldweevaluatethemagnitudeofbusinesspressuresandtechnologicaladvancement?Howcanweexploitsocial/businessnetworking?Whatshouldbemycompany’sstrategytowardEC?WhatarethetopchallengesofEC?1-39Chapter2E-Marketplaces:Mechanisms,Tools,andImpactsofE-commerceCopyright?2010PearsonEducation,Inc.PublishingasPrenticeHallLearningObjectives

Describethemajorelectroniccommerce(EC)activitiesandprocessesandthemechanismsthatsupportthem.Definee-marketplacesandlisttheircomponents.Listthemajortypesofe-marketplacesanddescribetheirfeatures.Describeelectroniccatalogs,searchengines,andshoppingcarts.Describethemajortypesofauctionsandlisttheircharacteristics.2-41Copyright?2010PearsonEducation,Inc.PublishingasPrenticeHallLearningObjectives

Discussthebenefits,limitations,andimpactsofauctions.Describebarteringandnegotiatingonline.ListthemajorWeb2.0toolsandtheiruseinEC.UnderstandvirtualworldsandtheiruseinEC.Discusscompetitioninthedigitaleconomy.Describetheimpactofe-marketplacesonorganizations,intermediation,andindustries.2-42Copyright?2010PearsonEducation,Inc.PublishingasPrenticeHall2-43Copyright?2010PearsonEducation,Inc.PublishingasPrenticeHall2-44Copyright?2010PearsonEducation,Inc.PublishingasPrenticeHall2-45Copyright?2010PearsonEducation,Inc.PublishingasPrenticeHallE-Marketplacese-marketplace Anonlinemarket,usuallyB2B,inwhichbuyersandsellersexchangegoodsorservices;thethreetypesofe-marketplacesareprivate,public,andconsortiamarketspace Amarketplaceinwhichsellersandbuyersexchangegoodsandservicesformoney(orforothergoodsandservices),butdosoelectronically2-46Copyright?2010PearsonEducation,Inc.PublishingasPrenticeHallE-MarketplacesE-MARKETPLACECOMPONENTSANDPARTICIPANTSdigitalproducts GoodsthatcanbetransformedtodigitalformatanddeliveredovertheInternetfrontend Theportionofane-seller’sbusinessprocessesthroughwhichcustomersinteract,includingtheseller’sportal,electroniccatalogs,ashoppingcart,asearchengine,andapaymentgateway2-47Copyright?2010PearsonEducation,Inc.PublishingasPrenticeHallE-Marketplacesbackend Theactivitiesthatsupportonlineorderfulfillment,inventorymanagement,purchasingfromsuppliers,paymentprocessing,packaging,anddeliveryintermediary Athirdpartythatoperatesbetweensellersandbuyers2-48Copyright?2010PearsonEducation,Inc.PublishingasPrenticeHallE-MarketplacesTYPESOFE-MARKETPLACESPrivateE-Marketplacessell-sidee-marketplace Aprivatee-marketplaceinwhichonecompanysellseitherstandardand/orcustomizedproductstoqualifiedcompaniesbuy-sidee-marketplace Aprivatee-marketplaceinwhichonecompanymakespurchasesfrominvitedsuppliersPublicE-Marketplaces2-49Copyright?2010PearsonEducation,Inc.PublishingasPrenticeHallCustomerInteractionMechanisms:Storefronts,Malls,andPortalsstorefront Asinglecompany’sWebsitewhereproductsorservicesaresolde-mall(onlinemall) Anonlineshoppingcenterwheremanyonlinestoresarelocated2-50Copyright?2010PearsonEducation,Inc.PublishingasPrenticeHallCustomerInteractionMechanisms:Storefronts,Malls,andPortalsTYPESOFSTORESANDMALLSGeneralstores/mallsSpecializedstores/mallsRegionalversusglobalstoresPure-playonlineorganizationsversusclick-and-mortarstoresWebportal Asinglepointofaccess,throughaWebbrowser,tocriticalbusinessinformationlocatedinsideandoutside(viaInternet)ofanorganization2-51Copyright?2010PearsonEducation,Inc.PublishingasPrenticeHallCustomerInteractionMechanisms:Storefronts,Malls,andPortalsTypesofPortalsCommercial(public)portalCorporateportalsPublishingportalsPersonalportalsmobileportal Aportalaccessibleviaamobiledevicevoiceportal AportalaccessedbytelephoneorcellphoneKnowledgeportals2-52Copyright?2010PearsonEducation,Inc.PublishingasPrenticeHallCustomerInteractionMechanisms:Storefronts,Malls,andPortalsTHEROLESANDVALUEOFINTERMEDIARIESINE-MARKETPLACESinfomediaries Electronicintermediariesthatprovideand/orcontrolinformationflowincyberspace,oftenaggregatinginformationandsellingittootherse-distributor Ane-commerceintermediarythatconnectsmanufacturerswithbusinessbuyers(customers)byaggregatingthecatalogsofmanymanufacturersinoneplace—theintermediary’sWebsite2-53Copyright?2010PearsonEducation,Inc.PublishingasPrenticeHallElectronicCatalogs,

SearchEngines,andShoppingCartselectroniccatalogs(e-catalogs) Thepresentationofproductinformationinanelectronicform;thebackboneofmoste-sellingsitesOnlineCatalogsVersusPaperCatalogsECSEARCHACTIVITIES,TYPES,ANDENGINESTypesofECSearchesInternet/WebSearchenterprisesearch Thepracticeofidentifyingandenablingspecificcontentacrosstheenterprisetobeindexed,searched,anddisplayedtoauthorizedusers2-54Copyright?2010PearsonEducation,Inc.PublishingasPrenticeHallElectronicCatalogs,

SearchEngines,andShoppingCartsdesktopsearch Searchtoolsthatsearchthecontentsofauser’sororganization’scomputerfiles,ratherthansearchingtheInternet.Theemphasisisonfindingalltheinformationthatisavailableontheuser’sPC,includingWebbrowserhistories,e-mailarchives,andword-processeddocuments,aswellasinallinternalfilesanddatabases2-55Copyright?2010PearsonEducation,Inc.PublishingasPrenticeHallElectronicCatalogs,

SearchEngines,andShoppingCartssearchengine AcomputerprogramthatcanaccessdatabasesofInternetresources,searchforspecificinformationorkeywords,andreporttheresultsSoftware(Intelligent)AgentsVoice-PoweredSearch2-56Copyright?2010PearsonEducation,Inc.PublishingasPrenticeHallElectronicCatalogs,

SearchEngines,andShoppingCartselectronicshoppingcart Anorder-processingtechnologythatallowscustomerstoaccumulateitemstheywishtobuywhiletheycontinuetoshopProductConfiguration2-57Copyright?2010PearsonEducation,Inc.PublishingasPrenticeHallAuctions,Bartering,

andNegotiatingOnlineauction Acompetitiveprocessinwhichasellersolicitsconsecutivebidsfrombuyers(forwardauctions)orabuyersolicitsbidsfromsellers(backwardauctions).Pricesaredetermineddynamicallybythebidselectronicauctions(e-auctions) AuctionsconductedonlineInnovativeAuctions2-58Copyright?2010PearsonEducation,Inc.PublishingasPrenticeHallAuctions,Bartering,

andNegotiatingOnlinedynamicpricing PricesthatchangebasedonsupplyanddemandrelationshipsatanygiventimeOneBuyer,OneSellerOneSeller,ManyPotentialBuyersforwardauction Anauctioninwhichasellerentertainsbidsfrombuyers.Biddersincreasepricesequentially2-59Copyright?2010PearsonEducation,Inc.PublishingasPrenticeHallAuctions,Bartering,

andNegotiatingOnlinereverseauction(biddingortenderingsystem) Auctioninwhichthebuyerplacesanitemforbid(tender)onarequestforquote(RFQ)system,potentialsuppliersbidonthejob,withthepricereducingsequentially,andthelowestbidwins;primarilyaB2BorG2Bmechanism“name-your-own-price”model Auctionmodelinwhichawould-bebuyerspecifiestheprice(andotherterms)heorsheiswillingtopaytoanywillingandableseller.ItisaC2BmodelthatwaspioneeredbyP2-60Copyright?2010PearsonEducation,Inc.PublishingasPrenticeHall2-61Copyright?2010PearsonEducation,Inc.PublishingasPrenticeHallAuctions,Bartering,

andNegotiatingOnlineManySellers,ManyBuyersdoubleauction Anauctioninwhichmultiplebuyersandtheirbiddingpricesarematchedwithmultiplesellersandtheiraskingprices,consideringthequantitiesonbothsides2-62Copyright?2009PearsonEducation,Inc.PublishingasPrenticeHallCopyright?2010PearsonEducation,Inc.PublishingasPrenticeHall2-63Copyright?2010PearsonEducation,Inc.PublishingasPrenticeHallAuctions,Bartering,

andNegotiatingOnlineLimitationsofE-AuctionsMinimalSecurityPossibilityofFraudLimitedParticipationImpactsofAuctionsAuctionsasaCoordinationMechanismAuctionsasaSocialMechanismtoDetermineaPriceAuctionsasaHighlyVisibleDistributionMechanismAuctionsasanECComponentAuctionsforProfitforIndividuals2-64Copyright?2010PearsonEducation,Inc.PublishingasPrenticeHallAuctions,Bartering,

andNegotiatingOnlineONLINEBARTERINGbartering Theexchangeofgoodsandservicese-bartering(electronicbartering) Barteringconductedonline,usuallyinabarteringexchangebarteringexchange AmarketplaceinwhichanintermediaryarrangesbartertransactionsONLINENEGOTIATING2-65Copyright?2010PearsonEducation,Inc.PublishingasPrenticeHallWeb2.0ToolsandServices:

FromBlogstoWikisBLOGGING(WEBLOGGING)blog ApersonalWebsitethatisopentothepublictoreadandtointeractwith;dedicatedtospecifictopicsorissuesvlog(orvideoblog) Ablogwithvideocontent2-66Copyright?2010PearsonEducation,Inc.PublishingasPrenticeHallWeb2.0ToolsandServices:

FromBlogstoWikismicro-blogging Aformofbloggingthatallowsuserstowritemessages(usuallyupto140characters)andpublishthem,eithertobeviewedbyanyoneorbyarestrictedgroupthatcanbechosenbytheuser.Thesemessagescanbesubmittedbyavarietyofmeans,includingtextmessaging,instantmessaging,e-mail,MP3,orjustontheWeb2-67Copyright?2010PearsonEducation,Inc.PublishingasPrenticeHallWeb2.0ToolsandServices:

FromBlogstoWikisTwitter Afreemicro-bloggingservicethatallowsitsuserstosendandreadotherusers’updates.tweets Text-basedpostsupto140charactersinlengthpostedtoTwitterCommercialUsesofBlogsUsingBloggingtoFacilitateCollaborationPotentialRisksofCorporateBlogsBloggersandPolitics2-68Copyright?2010PearsonEducation,Inc.PublishingasPrenticeHallWeb2.0ToolsandServices:

FromBlogstoWikisMechanismAidsforWeb2.0Toolstag Anonhierarchicalkeywordortermassignedtoapieceofinformation(suchasanInternetbookmark,digitalimage,videoclip,oranycomputerdocument)folksonomy(collaborativetagging,socialclassification,socialindexing,socialtagging) Thepracticeandmethodofcollaborativelycreating,classifying,andmanagingtagstoannotateandcategorizecontent2-69Copyright?2010PearsonEducation,Inc.PublishingasPrenticeHallWeb2.0ToolsandServices:

FromBlogstoWikissocialbookmarking WebserviceforsharingInternetbookmarks.Thesitesareapopularwaytostore,classify,share,andsearchlinksthroughthepracticeoffolksonomytechniquesontheInternetandintranetswiki(wikilog) Ablogthatallowseveryonetoparticipateasapeer;anyonemayadd,delete,orchangecontent2-70Copyright?2010PearsonEducation,Inc.PublishingasPrenticeHallVirtualWorldsAsan

ElectronicCommerceMechanismavatars AnimatedcomputercharactersthatexhibithumanlikemovementsandbehaviorsBUSINESSACTIVITIESANDVALUEINVIRTUALWORLDSTypesofbusinessactivitiesinvirtualworlds:CreatingandmanagingavirtualbusinessConductingregularbusinessactivitiesProvidingservicesforthosewhobuild,manage,ormakemoneywithvirtualproperties2-71Copyright?2010PearsonEducation,Inc.PublishingasPrenticeHallCompetitionintheDigitalEconomyandItsImpactonIndustriesCOMPETITIONINTHEINTERNETECOSYSTEMCompetitivenessFactorsLowersearchcostsforbuyersSpeedycomparisonsLowerpricesCustomerserviceBarrierstoentryarereducedVirtualpartnershipsmultiplyMarketnichesabounddifferentiation Providingaproductorservicethatisunique2-72Copyright?2010PearsonEducation,Inc.PublishingasPrenticeHallCompetitionintheDigitalEconomyandItsImpactonIndustriesCustomization,Personalization,andCompetitioncustomization Creationofaproductorserviceaccordingtothebuyer’sspecificationspersonalization Theabilitytotailoraproduct,service,orWebcontenttospecificuserpreferences2-73Copyright?2010PearsonEducation,Inc.PublishingasPrenticeHall2-74Copyright?2010PearsonEducation,Inc.PublishingasPrenticeHall2-75Copyright?2010PearsonEducation,Inc.PublishingasPrenticeHallImpactsofElectronicCommerceonBusinessProcessesandOrganizationsTRANSFORMINGORGANIZATIONSTechnologyandOrganizationalLearningTheChangingNatureofWorkDisintermediationandReintermediationdisintermediation EliminationofintermediariesbetweensellersandbuyersreintermediationDisintermediatedentitiesornewcomerstakeonnewintermediaryroles2-76Copyright?2010PearsonEducation,Inc.PublishingasPrenticeHallImpactsofElectronicCommerceonBusinessProcessesandOrganizationsREDEFININGORGANIZATIONSNewandImprovedProductCapabilitiesmasscustomization Amethodthatenablesmanufacturerstocreatespecificproductsforeachcustomerbasedonthecustomer’sexactneedsbuild-to-order(pullsystem) Amanufacturingprocessthatstartswithanorder(usuallycustomized).Oncetheorderispaidfor,thevendorstartstofulfillit2-77Copyright?2010PearsonEducation,Inc.PublishingasPrenticeHall2-78Copyright?2010PearsonEducation,Inc.PublishingasPrenticeHall2-79Copyright?2010PearsonEducation,Inc.PublishingasPrenticeHallManagerialIssuesWhataboutintermediaries?Shouldweauction?Shouldwebarter?Howdowecompeteinthedigitaleconomy?Whatorganizationalchangeswillbeneeded?2-80Chapter3RetailinginElectronicCommerce:ProductsandServicesCopyright?2010PearsonEducation,Inc.PublishingasPrenticeHallLearningObjectives

Describeelectronicretailing(e-tailing)anditscharacteristics.Defineanddescribetheprimarye-tailingbusinessmodels.Describehowonlinetravelandtourismservicesoperateandtheirimpactontheindustry.Discusstheonlineemploymentmarket,includingitsparticipants,benefits,andlimitations.Describeonlinerealestateservices.Discussonlinestock-tradingservices.3-82Copyright?2010PearsonEducation,Inc.PublishingasPrenticeHallLearningObjectives

Discusscyberbankingandonlinepersonalfinance.Describeon-demanddeliveryofgroceriesandsimilarproducts/services.Describethedeliveryofdigitalproductsandonlineentertainment.Discussvariousonlineconsumeraids,includingcomparison-shoppingaids.DescribedisintermediationandotherB2Cstrategicissues.3-83Copyright?2010PearsonEducation,Inc.PublishingasPrenticeHallInternetMarketing

andElectronicRetai