Ch.2-Part 2-Key Concepts in E-Commerce.pdf

key concepts in e-commerce

1. Dr. Ahmed Mounir
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KEY CONCEPTS IN E-COMMERCE: E-BUSINESS, DIGITAL
MARKETS AND DIGITAL GOODS IN A GLOBAL
MARKETPLACE

2. Content
1.DigitalGoods
2.E-Marketplaces(orMarketspaces)
3.TypesofE-Marketplaces
4.E-CommerceandE-Business
5.E-BusinessandDigitalBusiness
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3. 1. Digital Goods
Inelectroniccommerce,digitalgoodsisageneralphraseusedto
describeanygoodsthatarestored,deliveredandusedinits
electronicformat.Digitalgoodsareshippedelectronicallytothe
consumerthroughemailordownloadfromtheInternet.
Examplesofdigitalgoodsincludee-books,musicfiles,software,
digitalimages,Websitetemplates,manualsinelectronicformat,
andanyitemwhichcanbeelectronicallystoredinafileor
multiplefiles.
Digitalgoodsissues:Intellectualpropertyprotectionis
consideredoneofthebiggestissueswithdigitalgoods.Because
digitalgoodsaresoldinsuchtransferableformat,producersand
distributorshavetomakesurethattheyarepackagedin
technologiesthatarerelativelyimmunetopiracyorillegal
sharing.Forexample,AppleiTunesfilesareprotectedusingthe
thornyemergenceofdigitalrightsmanagement orDigitalRights
Management (DRM)wrappingfor.ManybelieveApplewenttoo
farincontrollingwhatdevicesthefilescanbeplayedon,
althoughthecompanymaintainsthatDRMwrappertechnology
ismainlytoprotectIP.
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4. 2. E-Marketplaces (or Marketspaces)
Similartoamarketplace,inamarketspacesellersandbuyers
exchangegoodsandservicesformoney(orforothergoods
andservicesifbarteringisused),buttheydoitelectronically.
Amarketspaceincludeselectronictransactionsthatbring
aboutanewdistributionofgoodsandservices.Themajor
componentsandplayersofamarketspaceare:
Customers
Sellers
Products
Infrastructure
Frontend
Backend
Intermediaries
Otherbusinesspartners
Supportservices
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5. 3. Types of E-Marketplaces
TypesofE-MarketplacesinB2B:
Publice-marketplaces(manytomany),usuallyownedand/or
managedbyanindependentthirdparty,thatincludemanysellers
andmanybuyers;alsoknownasexchanges
Privatee-marketplaces(onetomany):Onlinemarketsownedbya
singlecompany;maybeeithersell-sideand/orbuy-sidee-
marketplaces
Sell-sidee-marketplace:Aprivatee-marketplaceinwhichonecompany
sellseitherstandardand/orcustomizedproductstoqualifiedcompanies
Buy-sidee-marketplace:Aprivatee-marketplaceinwhichonecompany
makespurchasesfrominvitedsuppliers
TypesofE-MarketplacesinB2C(ElectronicStorefronts):
Storefront:Asinglecompany’sWebsitewhereproductsorservices
aresold.Itmaybebelongtomanufacture,retailer,individual,orto
overtypeofbusiness.
e-mall(onlinemall):Anonlineshoppingcenterwheremanyonline
storesarelocated.Somemallsareactuallylargeclick-and-mortar
retailerandsomearevirtualretailer
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6. 4. E-Commerce and E-Business
E-Businessreferstobroaderdefinitionofecommerce notjust
buying,sellingofgoods&services,butalsoservicing
customers,collaboratingwithbusinesspartners,and
processingelectronictransactions.
Examples:
Inventorymanagement
Emailmarketing
Acontentmanagement system
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7. 4. E-Commerce and E-Business
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8. 4. E-Commerce and E-Business
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Criteria E-Business E-Commerce
Meaning Running business using the
internet is known as E-
Business.
Trading of merchandise, over
the internet is known as E-
Commerce.
What is it? Superset Subset
Is it limited to monetary
transactions?
No Yes
What they carry out? Business transactions Commercial transactions
Requires Website, CRM, ERP, etc. Website
Which network is used? Internet, Intranet and
Extranet.
Internet

9. 5. E-Business and Digital Business
Digitalbusinessrelatedtohowtechnologysupportcompanies
toachieveacompetitiveedgeovertheirpeersbyallowing
themcreatenewvalue,revenue,andexperiencesthat
differentiatecompaniesoverotherspeers.
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10. 5. E-Business and Digital Business
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11. 5. E-Business and Digital Business
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12. 5. E-Business and Digital Business
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13. 5. E-Business and Digital Business
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14. 5. E-Business and Digital Business
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