Information Technology Reference
In-Depth Information
the day after Thanksgiving—the so-called Black Friday—it suffered no degradation in
performance.
Staples realizes that online competition poses a serious threat to its market dominance.
Selling online is no longer considered an accessory to a brick-and-mortar business, but
has become a major sales channel that can make or break a business. E-commerce tactics
and strategies have become an important consideration in meeting a company's primary
goals and objectives. Staples and most other large corporations are engaged in serious e-
commerce battles online to gain or maintain rank in their respective markets.
As you read this chapter, consider the following:
•
What advantages do e-commerce and m-commerce offer sellers and vendors over
traditional shopping venues?
•
What are the limitations of m-commerce and e-commerce? What doesn't sell well online,
and why are some shoppers uncomfortable shopping online?
Electronic and mobile commerce have transformed many areas of our lives and
careers. One fundamental change has been the manner in which companies interact
with their suppliers, customers, government agencies, and other business partners.
As a result, most organizations today have or are considering setting up business on
the Internet. To be successful, all members of the organization need to participate in
that effort. As a sales or marketing manager, you will be expected to help define your
firm's e-commerce business model. Customer service employees can expect to par-
ticipate in the development and operation of their firm's Web site. As a human
resource or public relations manager, you will likely be asked to provide Web site
content for use by potential employees and investors. Analysts in finance need to
know how to measure the business impact of their firm's Web operations and how to
compare that to competitors' efforts. Clearly, as an employee in today's organization,
you must understand what the potential role of e-commerce is, how to capitalize on
its many opportunities, and how to avoid its pitfalls. The emergence of m-commerce
adds an exciting new dimension to these opportunities and challenges. This chapter
begins by providing a brief overview of the dynamic world of e-commerce and defin-
ing its various components.
Why Learn About
Electronic and
Mobile
Commerce?
Electronic commerce
is the conducting of business activities (e.g., distribution, buying, sell-
ing, marketing, and servicing of products or services) electronically over computer networks
such as the Internet, extranets, and corporate networks. Business activities that are strong
candidates for conversion to e-commerce are paper-based, time-consuming, and inconve-
nient activities for customers. Thus, some of the first business processes that companies
converted to an e-commerce model were those related to buying and selling. For example,
after Cisco Systems, the maker of Internet routers and other telecommunications equipment,
put its procurement operation online, the company reported that it halved cycle times and
saved an additional $170 million in material and labor costs. Similarly, Charles Schwab &
Co. slashed transaction costs by more than half by shifting brokerage transactions from
traditional channels such as retail and phone centers to the Internet.
electronic commerce
Conducting business activities
(e.g., distribution, buying, selling,
marketing, and servicing of
products or services) electronically
over computer networks such as the
Internet, extranets, and corporate
networks.
Business-to-Business (B2B) E-Commerce
Business-to-business (B2B) e-commerce
is a subset of e-commerce where all the partici-
pants are organizations. B2B e-commerce is a useful tool for connecting business partners in
a virtual supply chain to cut resupply times and reduce costs. Although the business-to-
consumer market grabs more of the news headlines, the B2B market is considerably larger
business-to-business (B2B)
e-commerce
A subset of e-commerce where all
the participants are organizations.