Unit 7 E-commerce
description
Transcript of Unit 7 E-commerce
Unit 7 E-commerce
bull Basic concepts of e-commercebull Applications of e-commerce
Starting up
bull Do you buy over the Net What goods or services have you brought over the Net
bull Name the most popular e-business company in your mind
bull Translate the term ldquo 电子商务rdquo into English
Part I Basic concepts
Key conceptsbull E-commerce
ndash The process of buying selling or exchanging products services and information via computer networks
bull E-business
ndash Application of Internet technologies in the management of day-to-day business processes
ndash A broader definition of EC which includes not just the buying and selling of goods and services but also servicing customers collaborating with business partners and conducting electronic transactions within an organization
E-business vs E-commercebull The main difference between them is that e-
commerce defines interaction between organizations and their customers clients or constituents On the other hand e-business is a broader term that also encompasses an organizationrsquos internal operations
bull E-commerce describes the buying and selling of products services and information via computer networks including the Internet where e-Business describes the broadest definition of EC It includes buying and selling of products and services servicing customers collaborating with business partners and conducting other intra-business tasks
Components of e-commerce
To execute those applications companies need the right information infrastructure and support services As shown
bull People Sellers buyers intermediaries information systems specialists and other employees and any other participants
bull Public policy Legal and other policy and regulating issues such as privacy protection and taxation
bull Marketing and advertising Like any other business EC usually requires the support of marketing and advertising
bull Support services Many services are needed to support EC They range from payments to order delivery and content creation
bull Business partnerships Joint ventures e-marketplaces and partnerships are some frequently occurring relationships in e-business
Discussion
bull What are the advantages of e-commercebull What are the disadvantages of e-commerce
bull Business-to-business (B2B)
ndash Business that sells products or provides services to other businesses
ndash WalMart GE Oraclebull Business-to-consumer (B2C)
ndash Business that sells products or provides services to end-user consumers
ndash Amazon Bank of Americabull Consumer-to-consumer (C2C)
ndash Consumers sell directly to other consumers
ndash e-bay Taobao
E-commerce transaction types
bull Business-to-government (B2G)
ndash Government buys or provides goods services or information tofrom businesses or individual citizens
bull Business-to-employee (B2E)
ndash Information and services made available to employees online
bull Mobile commerce (m-commerce)
ndash E-commerce transactions and activities conducted in a wireless environment
bull Collaborative commerce (c-commerce)
ndash Individuals or groups communicate or collaborate online
E-commerce transaction types
bull Consumer-to-business (C2B)
ndash Consumers make known a particular need for a product or service and suppliers compete to provide it
bull Government-to-citizenconsumer (G2C)
ndash A government provides services to its citizens via EC technologies
bull Consumer to Government (C2G)bull Government to Business (G2B)bull Government to Government (G2G)
E-commerce transaction types
Internet termsbull p55 Vocabulary
More termsbull Businessrevenue model 商业 经营 盈利模式
ndash How does a firm make money (generate revenues)ndash Advertising transaction fee sales subscription affiliate
bull Electronic funds transfers (EFT) 电子资金转帐ndash Electronic exchange of account information over
communications networksndash Online bill payment
bull Electronic data interchange (EDI) 电子数据交换ndash Electronic exchange of computer-readable data in a
standard format between trading partnersndash Purchase orders sales invoice request for quotes etc
bull Value-added network (VAN) 增值网络ndash Third party provider of connection and transaction
services to businesses for EDI EFT etcndash 通过计算机服务网络 使不同企业不同的网络系统可以相互连接
从而使不同形式的数据交换成为可能
More terms
bull E-CRM
ndash Process of building sustaining and improving e-business relationships with existing and potential customers through digital media
bull SCM = Supply Chain Management
ndash Process of moving goods from customer order through the raw materials supply production and the distribution of products to the customer
Part II Applications
Examples of e-commerce
bull Internet Advertisementbull Internet Shop bull Internet Bankbull Internet Auctionbull Internet Gambling
Internet advertisement
bull The most common money making method in the Internet is to establish a popular web site where other parties are willing to advertise on the web site
bull For example you can provide an Internet search engine for Internet surfers to search some specific information in a fast manner
bull Your web site may then receive a number of hits per day and could therefore become an ideal place for advertising How much money you can make is dependent upon how popular your site is
bull This kind of money making methods may not require complex clientserver but you need to have bright marketing thinking to find a hot topic for your site
Internet shop
bull With the growth of the Internet there are more and more on-line shops available in the Internet
bull An Internet shop functions like a normal shop where you buy goods by cash cheque or credit card
bull Most Internet shops use credit card based payment systems That is you pay your goods by sending your credit card information to the vendor through a secure channel provided by the Internet shop
bull Of course the security and fairness are the key issues to enable a payment
Internet bankingbull More and more banks now consider the Internet banking as a
must go way to further reduce banking costbull However many people are still cautious about Internet banking
due to security fearsbull If security is reassured more people will start to use the Internet
as a faster and more convenient way of bankingbull An Internet banking system is a clientserver system The bank is
the server who provides the banking servicebull When a customer opens the client page on a banking site what
he or she can do is dependent on the service provided The services include
1048708 Checking your account balance
1048708 Transferring your money from one account to the other
1048708 Doing digital cash transaction
1048708 Withdraw digital cash
1048708 Deposit digital cash
Internet auction
bull The auction server provides the service for bidders to submit their bids A typical Internet bidding protocol looks like
bull 1 Auction Server provide auction information on the Web
bull 2 Bidder cast its bid to the server via a secure channel
bull 3 Auction Server open bids after the bidding time is over and announces the highest bid (seller-oriented auction)
bull 4 Bidder send its payment to the Server via a secure channel
Internet gambling
bull Internet gambling is very much dependent upon the electronic commerce
bull The most on-line gambling systems use the existing electronic commerce protocols
bull Therefore an Internet gambling server must provide two basic services ie game service and e-commerce service
How a transaction takes place
Consumer finds something she wants to buy at a ldquoshoprdquo on the Net
Consumer sends on enciphered request for payment to her bank
The electronic bank sends back a secure packet of e-cash
Consumer sends the e-cash to the shop
Verification and remittance of actual funds
Consumer Public Key
The shop sends the packet of cash to its bank
Merchant Bank
Merchant Server
Shop
Consumerrsquos Bank
Shop
1
3
6
2
5
4
Trading on the Internet
bull Listening p54
ldquoTrading on the Internetrdquo
Major players
Success stories amazoncom
bull Opened July 1995bull Employees gt 9000 worldwidebull Revenue $692 billion net sales in 2004bull Customers Nearly 49 million active accounts
Success stories Dell Computers
bull Dell Computers made waves in industry circles when they announced that they sold over a billion dollars worth of Personal Computers directly off the Web in 1997
ndash Moving routine interactions to the Web
ndash 50000 customers use Dellrsquos web site to check their order status each week
ndash 90000 SW files are downloaded (It costs $150000 a week)
ndash 200000 customers access Dellrsquos trouble-shooting tips online
Business model
Why Did the ldquocomrdquo Companies Fail
bull Flawed business modelndash Companies view the technology as their business
rather than having a businessndash Lose money on individual transactions
bull Amazoncom loses almost $3 per order on multi-product orders
ndash Lack of control over supply of what they sellbull Pricelinecom
ndash All the good ideas duplicated by established concerns with deep pockets and staying power
e Business rules
Five rules need follow if you want to be profitable network business
1 If you are interested in a market and no competitors yet but the potential market volume is not significant Try to be the biggest e Business player
2 If you prefer enter a e-market and the overall market is large enough Then you make a quick enter and create your own advantage
3 If the e-market large enough but has a very strong competitor inside Then you use the model to subvert their profitability
Five basic rules
4 If the e-market is not big but has a very strong competitor inside Well you just make your own personal website
5 If you donlsquot clear about the market think about that who would be your first clear customers
e Business rules Five basic rules
Homework
bull Reading pp56-57
ldquoUsing the Netrdquo
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Slide 7
- Slide 8
- Slide 9
- Slide 10
- Slide 11
- Slide 12
- Slide 13
- Slide 14
- Slide 15
- Slide 16
- Slide 17
- Slide 18
- Slide 19
- Slide 20
- Slide 21
- Slide 22
- Slide 23
- Slide 24
- Slide 25
- Slide 26
- Slide 27
- Slide 28
- Slide 29
- Slide 30
- Slide 31
-
Starting up
bull Do you buy over the Net What goods or services have you brought over the Net
bull Name the most popular e-business company in your mind
bull Translate the term ldquo 电子商务rdquo into English
Part I Basic concepts
Key conceptsbull E-commerce
ndash The process of buying selling or exchanging products services and information via computer networks
bull E-business
ndash Application of Internet technologies in the management of day-to-day business processes
ndash A broader definition of EC which includes not just the buying and selling of goods and services but also servicing customers collaborating with business partners and conducting electronic transactions within an organization
E-business vs E-commercebull The main difference between them is that e-
commerce defines interaction between organizations and their customers clients or constituents On the other hand e-business is a broader term that also encompasses an organizationrsquos internal operations
bull E-commerce describes the buying and selling of products services and information via computer networks including the Internet where e-Business describes the broadest definition of EC It includes buying and selling of products and services servicing customers collaborating with business partners and conducting other intra-business tasks
Components of e-commerce
To execute those applications companies need the right information infrastructure and support services As shown
bull People Sellers buyers intermediaries information systems specialists and other employees and any other participants
bull Public policy Legal and other policy and regulating issues such as privacy protection and taxation
bull Marketing and advertising Like any other business EC usually requires the support of marketing and advertising
bull Support services Many services are needed to support EC They range from payments to order delivery and content creation
bull Business partnerships Joint ventures e-marketplaces and partnerships are some frequently occurring relationships in e-business
Discussion
bull What are the advantages of e-commercebull What are the disadvantages of e-commerce
bull Business-to-business (B2B)
ndash Business that sells products or provides services to other businesses
ndash WalMart GE Oraclebull Business-to-consumer (B2C)
ndash Business that sells products or provides services to end-user consumers
ndash Amazon Bank of Americabull Consumer-to-consumer (C2C)
ndash Consumers sell directly to other consumers
ndash e-bay Taobao
E-commerce transaction types
bull Business-to-government (B2G)
ndash Government buys or provides goods services or information tofrom businesses or individual citizens
bull Business-to-employee (B2E)
ndash Information and services made available to employees online
bull Mobile commerce (m-commerce)
ndash E-commerce transactions and activities conducted in a wireless environment
bull Collaborative commerce (c-commerce)
ndash Individuals or groups communicate or collaborate online
E-commerce transaction types
bull Consumer-to-business (C2B)
ndash Consumers make known a particular need for a product or service and suppliers compete to provide it
bull Government-to-citizenconsumer (G2C)
ndash A government provides services to its citizens via EC technologies
bull Consumer to Government (C2G)bull Government to Business (G2B)bull Government to Government (G2G)
E-commerce transaction types
Internet termsbull p55 Vocabulary
More termsbull Businessrevenue model 商业 经营 盈利模式
ndash How does a firm make money (generate revenues)ndash Advertising transaction fee sales subscription affiliate
bull Electronic funds transfers (EFT) 电子资金转帐ndash Electronic exchange of account information over
communications networksndash Online bill payment
bull Electronic data interchange (EDI) 电子数据交换ndash Electronic exchange of computer-readable data in a
standard format between trading partnersndash Purchase orders sales invoice request for quotes etc
bull Value-added network (VAN) 增值网络ndash Third party provider of connection and transaction
services to businesses for EDI EFT etcndash 通过计算机服务网络 使不同企业不同的网络系统可以相互连接
从而使不同形式的数据交换成为可能
More terms
bull E-CRM
ndash Process of building sustaining and improving e-business relationships with existing and potential customers through digital media
bull SCM = Supply Chain Management
ndash Process of moving goods from customer order through the raw materials supply production and the distribution of products to the customer
Part II Applications
Examples of e-commerce
bull Internet Advertisementbull Internet Shop bull Internet Bankbull Internet Auctionbull Internet Gambling
Internet advertisement
bull The most common money making method in the Internet is to establish a popular web site where other parties are willing to advertise on the web site
bull For example you can provide an Internet search engine for Internet surfers to search some specific information in a fast manner
bull Your web site may then receive a number of hits per day and could therefore become an ideal place for advertising How much money you can make is dependent upon how popular your site is
bull This kind of money making methods may not require complex clientserver but you need to have bright marketing thinking to find a hot topic for your site
Internet shop
bull With the growth of the Internet there are more and more on-line shops available in the Internet
bull An Internet shop functions like a normal shop where you buy goods by cash cheque or credit card
bull Most Internet shops use credit card based payment systems That is you pay your goods by sending your credit card information to the vendor through a secure channel provided by the Internet shop
bull Of course the security and fairness are the key issues to enable a payment
Internet bankingbull More and more banks now consider the Internet banking as a
must go way to further reduce banking costbull However many people are still cautious about Internet banking
due to security fearsbull If security is reassured more people will start to use the Internet
as a faster and more convenient way of bankingbull An Internet banking system is a clientserver system The bank is
the server who provides the banking servicebull When a customer opens the client page on a banking site what
he or she can do is dependent on the service provided The services include
1048708 Checking your account balance
1048708 Transferring your money from one account to the other
1048708 Doing digital cash transaction
1048708 Withdraw digital cash
1048708 Deposit digital cash
Internet auction
bull The auction server provides the service for bidders to submit their bids A typical Internet bidding protocol looks like
bull 1 Auction Server provide auction information on the Web
bull 2 Bidder cast its bid to the server via a secure channel
bull 3 Auction Server open bids after the bidding time is over and announces the highest bid (seller-oriented auction)
bull 4 Bidder send its payment to the Server via a secure channel
Internet gambling
bull Internet gambling is very much dependent upon the electronic commerce
bull The most on-line gambling systems use the existing electronic commerce protocols
bull Therefore an Internet gambling server must provide two basic services ie game service and e-commerce service
How a transaction takes place
Consumer finds something she wants to buy at a ldquoshoprdquo on the Net
Consumer sends on enciphered request for payment to her bank
The electronic bank sends back a secure packet of e-cash
Consumer sends the e-cash to the shop
Verification and remittance of actual funds
Consumer Public Key
The shop sends the packet of cash to its bank
Merchant Bank
Merchant Server
Shop
Consumerrsquos Bank
Shop
1
3
6
2
5
4
Trading on the Internet
bull Listening p54
ldquoTrading on the Internetrdquo
Major players
Success stories amazoncom
bull Opened July 1995bull Employees gt 9000 worldwidebull Revenue $692 billion net sales in 2004bull Customers Nearly 49 million active accounts
Success stories Dell Computers
bull Dell Computers made waves in industry circles when they announced that they sold over a billion dollars worth of Personal Computers directly off the Web in 1997
ndash Moving routine interactions to the Web
ndash 50000 customers use Dellrsquos web site to check their order status each week
ndash 90000 SW files are downloaded (It costs $150000 a week)
ndash 200000 customers access Dellrsquos trouble-shooting tips online
Business model
Why Did the ldquocomrdquo Companies Fail
bull Flawed business modelndash Companies view the technology as their business
rather than having a businessndash Lose money on individual transactions
bull Amazoncom loses almost $3 per order on multi-product orders
ndash Lack of control over supply of what they sellbull Pricelinecom
ndash All the good ideas duplicated by established concerns with deep pockets and staying power
e Business rules
Five rules need follow if you want to be profitable network business
1 If you are interested in a market and no competitors yet but the potential market volume is not significant Try to be the biggest e Business player
2 If you prefer enter a e-market and the overall market is large enough Then you make a quick enter and create your own advantage
3 If the e-market large enough but has a very strong competitor inside Then you use the model to subvert their profitability
Five basic rules
4 If the e-market is not big but has a very strong competitor inside Well you just make your own personal website
5 If you donlsquot clear about the market think about that who would be your first clear customers
e Business rules Five basic rules
Homework
bull Reading pp56-57
ldquoUsing the Netrdquo
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Slide 7
- Slide 8
- Slide 9
- Slide 10
- Slide 11
- Slide 12
- Slide 13
- Slide 14
- Slide 15
- Slide 16
- Slide 17
- Slide 18
- Slide 19
- Slide 20
- Slide 21
- Slide 22
- Slide 23
- Slide 24
- Slide 25
- Slide 26
- Slide 27
- Slide 28
- Slide 29
- Slide 30
- Slide 31
-
Part I Basic concepts
Key conceptsbull E-commerce
ndash The process of buying selling or exchanging products services and information via computer networks
bull E-business
ndash Application of Internet technologies in the management of day-to-day business processes
ndash A broader definition of EC which includes not just the buying and selling of goods and services but also servicing customers collaborating with business partners and conducting electronic transactions within an organization
E-business vs E-commercebull The main difference between them is that e-
commerce defines interaction between organizations and their customers clients or constituents On the other hand e-business is a broader term that also encompasses an organizationrsquos internal operations
bull E-commerce describes the buying and selling of products services and information via computer networks including the Internet where e-Business describes the broadest definition of EC It includes buying and selling of products and services servicing customers collaborating with business partners and conducting other intra-business tasks
Components of e-commerce
To execute those applications companies need the right information infrastructure and support services As shown
bull People Sellers buyers intermediaries information systems specialists and other employees and any other participants
bull Public policy Legal and other policy and regulating issues such as privacy protection and taxation
bull Marketing and advertising Like any other business EC usually requires the support of marketing and advertising
bull Support services Many services are needed to support EC They range from payments to order delivery and content creation
bull Business partnerships Joint ventures e-marketplaces and partnerships are some frequently occurring relationships in e-business
Discussion
bull What are the advantages of e-commercebull What are the disadvantages of e-commerce
bull Business-to-business (B2B)
ndash Business that sells products or provides services to other businesses
ndash WalMart GE Oraclebull Business-to-consumer (B2C)
ndash Business that sells products or provides services to end-user consumers
ndash Amazon Bank of Americabull Consumer-to-consumer (C2C)
ndash Consumers sell directly to other consumers
ndash e-bay Taobao
E-commerce transaction types
bull Business-to-government (B2G)
ndash Government buys or provides goods services or information tofrom businesses or individual citizens
bull Business-to-employee (B2E)
ndash Information and services made available to employees online
bull Mobile commerce (m-commerce)
ndash E-commerce transactions and activities conducted in a wireless environment
bull Collaborative commerce (c-commerce)
ndash Individuals or groups communicate or collaborate online
E-commerce transaction types
bull Consumer-to-business (C2B)
ndash Consumers make known a particular need for a product or service and suppliers compete to provide it
bull Government-to-citizenconsumer (G2C)
ndash A government provides services to its citizens via EC technologies
bull Consumer to Government (C2G)bull Government to Business (G2B)bull Government to Government (G2G)
E-commerce transaction types
Internet termsbull p55 Vocabulary
More termsbull Businessrevenue model 商业 经营 盈利模式
ndash How does a firm make money (generate revenues)ndash Advertising transaction fee sales subscription affiliate
bull Electronic funds transfers (EFT) 电子资金转帐ndash Electronic exchange of account information over
communications networksndash Online bill payment
bull Electronic data interchange (EDI) 电子数据交换ndash Electronic exchange of computer-readable data in a
standard format between trading partnersndash Purchase orders sales invoice request for quotes etc
bull Value-added network (VAN) 增值网络ndash Third party provider of connection and transaction
services to businesses for EDI EFT etcndash 通过计算机服务网络 使不同企业不同的网络系统可以相互连接
从而使不同形式的数据交换成为可能
More terms
bull E-CRM
ndash Process of building sustaining and improving e-business relationships with existing and potential customers through digital media
bull SCM = Supply Chain Management
ndash Process of moving goods from customer order through the raw materials supply production and the distribution of products to the customer
Part II Applications
Examples of e-commerce
bull Internet Advertisementbull Internet Shop bull Internet Bankbull Internet Auctionbull Internet Gambling
Internet advertisement
bull The most common money making method in the Internet is to establish a popular web site where other parties are willing to advertise on the web site
bull For example you can provide an Internet search engine for Internet surfers to search some specific information in a fast manner
bull Your web site may then receive a number of hits per day and could therefore become an ideal place for advertising How much money you can make is dependent upon how popular your site is
bull This kind of money making methods may not require complex clientserver but you need to have bright marketing thinking to find a hot topic for your site
Internet shop
bull With the growth of the Internet there are more and more on-line shops available in the Internet
bull An Internet shop functions like a normal shop where you buy goods by cash cheque or credit card
bull Most Internet shops use credit card based payment systems That is you pay your goods by sending your credit card information to the vendor through a secure channel provided by the Internet shop
bull Of course the security and fairness are the key issues to enable a payment
Internet bankingbull More and more banks now consider the Internet banking as a
must go way to further reduce banking costbull However many people are still cautious about Internet banking
due to security fearsbull If security is reassured more people will start to use the Internet
as a faster and more convenient way of bankingbull An Internet banking system is a clientserver system The bank is
the server who provides the banking servicebull When a customer opens the client page on a banking site what
he or she can do is dependent on the service provided The services include
1048708 Checking your account balance
1048708 Transferring your money from one account to the other
1048708 Doing digital cash transaction
1048708 Withdraw digital cash
1048708 Deposit digital cash
Internet auction
bull The auction server provides the service for bidders to submit their bids A typical Internet bidding protocol looks like
bull 1 Auction Server provide auction information on the Web
bull 2 Bidder cast its bid to the server via a secure channel
bull 3 Auction Server open bids after the bidding time is over and announces the highest bid (seller-oriented auction)
bull 4 Bidder send its payment to the Server via a secure channel
Internet gambling
bull Internet gambling is very much dependent upon the electronic commerce
bull The most on-line gambling systems use the existing electronic commerce protocols
bull Therefore an Internet gambling server must provide two basic services ie game service and e-commerce service
How a transaction takes place
Consumer finds something she wants to buy at a ldquoshoprdquo on the Net
Consumer sends on enciphered request for payment to her bank
The electronic bank sends back a secure packet of e-cash
Consumer sends the e-cash to the shop
Verification and remittance of actual funds
Consumer Public Key
The shop sends the packet of cash to its bank
Merchant Bank
Merchant Server
Shop
Consumerrsquos Bank
Shop
1
3
6
2
5
4
Trading on the Internet
bull Listening p54
ldquoTrading on the Internetrdquo
Major players
Success stories amazoncom
bull Opened July 1995bull Employees gt 9000 worldwidebull Revenue $692 billion net sales in 2004bull Customers Nearly 49 million active accounts
Success stories Dell Computers
bull Dell Computers made waves in industry circles when they announced that they sold over a billion dollars worth of Personal Computers directly off the Web in 1997
ndash Moving routine interactions to the Web
ndash 50000 customers use Dellrsquos web site to check their order status each week
ndash 90000 SW files are downloaded (It costs $150000 a week)
ndash 200000 customers access Dellrsquos trouble-shooting tips online
Business model
Why Did the ldquocomrdquo Companies Fail
bull Flawed business modelndash Companies view the technology as their business
rather than having a businessndash Lose money on individual transactions
bull Amazoncom loses almost $3 per order on multi-product orders
ndash Lack of control over supply of what they sellbull Pricelinecom
ndash All the good ideas duplicated by established concerns with deep pockets and staying power
e Business rules
Five rules need follow if you want to be profitable network business
1 If you are interested in a market and no competitors yet but the potential market volume is not significant Try to be the biggest e Business player
2 If you prefer enter a e-market and the overall market is large enough Then you make a quick enter and create your own advantage
3 If the e-market large enough but has a very strong competitor inside Then you use the model to subvert their profitability
Five basic rules
4 If the e-market is not big but has a very strong competitor inside Well you just make your own personal website
5 If you donlsquot clear about the market think about that who would be your first clear customers
e Business rules Five basic rules
Homework
bull Reading pp56-57
ldquoUsing the Netrdquo
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Slide 7
- Slide 8
- Slide 9
- Slide 10
- Slide 11
- Slide 12
- Slide 13
- Slide 14
- Slide 15
- Slide 16
- Slide 17
- Slide 18
- Slide 19
- Slide 20
- Slide 21
- Slide 22
- Slide 23
- Slide 24
- Slide 25
- Slide 26
- Slide 27
- Slide 28
- Slide 29
- Slide 30
- Slide 31
-
Key conceptsbull E-commerce
ndash The process of buying selling or exchanging products services and information via computer networks
bull E-business
ndash Application of Internet technologies in the management of day-to-day business processes
ndash A broader definition of EC which includes not just the buying and selling of goods and services but also servicing customers collaborating with business partners and conducting electronic transactions within an organization
E-business vs E-commercebull The main difference between them is that e-
commerce defines interaction between organizations and their customers clients or constituents On the other hand e-business is a broader term that also encompasses an organizationrsquos internal operations
bull E-commerce describes the buying and selling of products services and information via computer networks including the Internet where e-Business describes the broadest definition of EC It includes buying and selling of products and services servicing customers collaborating with business partners and conducting other intra-business tasks
Components of e-commerce
To execute those applications companies need the right information infrastructure and support services As shown
bull People Sellers buyers intermediaries information systems specialists and other employees and any other participants
bull Public policy Legal and other policy and regulating issues such as privacy protection and taxation
bull Marketing and advertising Like any other business EC usually requires the support of marketing and advertising
bull Support services Many services are needed to support EC They range from payments to order delivery and content creation
bull Business partnerships Joint ventures e-marketplaces and partnerships are some frequently occurring relationships in e-business
Discussion
bull What are the advantages of e-commercebull What are the disadvantages of e-commerce
bull Business-to-business (B2B)
ndash Business that sells products or provides services to other businesses
ndash WalMart GE Oraclebull Business-to-consumer (B2C)
ndash Business that sells products or provides services to end-user consumers
ndash Amazon Bank of Americabull Consumer-to-consumer (C2C)
ndash Consumers sell directly to other consumers
ndash e-bay Taobao
E-commerce transaction types
bull Business-to-government (B2G)
ndash Government buys or provides goods services or information tofrom businesses or individual citizens
bull Business-to-employee (B2E)
ndash Information and services made available to employees online
bull Mobile commerce (m-commerce)
ndash E-commerce transactions and activities conducted in a wireless environment
bull Collaborative commerce (c-commerce)
ndash Individuals or groups communicate or collaborate online
E-commerce transaction types
bull Consumer-to-business (C2B)
ndash Consumers make known a particular need for a product or service and suppliers compete to provide it
bull Government-to-citizenconsumer (G2C)
ndash A government provides services to its citizens via EC technologies
bull Consumer to Government (C2G)bull Government to Business (G2B)bull Government to Government (G2G)
E-commerce transaction types
Internet termsbull p55 Vocabulary
More termsbull Businessrevenue model 商业 经营 盈利模式
ndash How does a firm make money (generate revenues)ndash Advertising transaction fee sales subscription affiliate
bull Electronic funds transfers (EFT) 电子资金转帐ndash Electronic exchange of account information over
communications networksndash Online bill payment
bull Electronic data interchange (EDI) 电子数据交换ndash Electronic exchange of computer-readable data in a
standard format between trading partnersndash Purchase orders sales invoice request for quotes etc
bull Value-added network (VAN) 增值网络ndash Third party provider of connection and transaction
services to businesses for EDI EFT etcndash 通过计算机服务网络 使不同企业不同的网络系统可以相互连接
从而使不同形式的数据交换成为可能
More terms
bull E-CRM
ndash Process of building sustaining and improving e-business relationships with existing and potential customers through digital media
bull SCM = Supply Chain Management
ndash Process of moving goods from customer order through the raw materials supply production and the distribution of products to the customer
Part II Applications
Examples of e-commerce
bull Internet Advertisementbull Internet Shop bull Internet Bankbull Internet Auctionbull Internet Gambling
Internet advertisement
bull The most common money making method in the Internet is to establish a popular web site where other parties are willing to advertise on the web site
bull For example you can provide an Internet search engine for Internet surfers to search some specific information in a fast manner
bull Your web site may then receive a number of hits per day and could therefore become an ideal place for advertising How much money you can make is dependent upon how popular your site is
bull This kind of money making methods may not require complex clientserver but you need to have bright marketing thinking to find a hot topic for your site
Internet shop
bull With the growth of the Internet there are more and more on-line shops available in the Internet
bull An Internet shop functions like a normal shop where you buy goods by cash cheque or credit card
bull Most Internet shops use credit card based payment systems That is you pay your goods by sending your credit card information to the vendor through a secure channel provided by the Internet shop
bull Of course the security and fairness are the key issues to enable a payment
Internet bankingbull More and more banks now consider the Internet banking as a
must go way to further reduce banking costbull However many people are still cautious about Internet banking
due to security fearsbull If security is reassured more people will start to use the Internet
as a faster and more convenient way of bankingbull An Internet banking system is a clientserver system The bank is
the server who provides the banking servicebull When a customer opens the client page on a banking site what
he or she can do is dependent on the service provided The services include
1048708 Checking your account balance
1048708 Transferring your money from one account to the other
1048708 Doing digital cash transaction
1048708 Withdraw digital cash
1048708 Deposit digital cash
Internet auction
bull The auction server provides the service for bidders to submit their bids A typical Internet bidding protocol looks like
bull 1 Auction Server provide auction information on the Web
bull 2 Bidder cast its bid to the server via a secure channel
bull 3 Auction Server open bids after the bidding time is over and announces the highest bid (seller-oriented auction)
bull 4 Bidder send its payment to the Server via a secure channel
Internet gambling
bull Internet gambling is very much dependent upon the electronic commerce
bull The most on-line gambling systems use the existing electronic commerce protocols
bull Therefore an Internet gambling server must provide two basic services ie game service and e-commerce service
How a transaction takes place
Consumer finds something she wants to buy at a ldquoshoprdquo on the Net
Consumer sends on enciphered request for payment to her bank
The electronic bank sends back a secure packet of e-cash
Consumer sends the e-cash to the shop
Verification and remittance of actual funds
Consumer Public Key
The shop sends the packet of cash to its bank
Merchant Bank
Merchant Server
Shop
Consumerrsquos Bank
Shop
1
3
6
2
5
4
Trading on the Internet
bull Listening p54
ldquoTrading on the Internetrdquo
Major players
Success stories amazoncom
bull Opened July 1995bull Employees gt 9000 worldwidebull Revenue $692 billion net sales in 2004bull Customers Nearly 49 million active accounts
Success stories Dell Computers
bull Dell Computers made waves in industry circles when they announced that they sold over a billion dollars worth of Personal Computers directly off the Web in 1997
ndash Moving routine interactions to the Web
ndash 50000 customers use Dellrsquos web site to check their order status each week
ndash 90000 SW files are downloaded (It costs $150000 a week)
ndash 200000 customers access Dellrsquos trouble-shooting tips online
Business model
Why Did the ldquocomrdquo Companies Fail
bull Flawed business modelndash Companies view the technology as their business
rather than having a businessndash Lose money on individual transactions
bull Amazoncom loses almost $3 per order on multi-product orders
ndash Lack of control over supply of what they sellbull Pricelinecom
ndash All the good ideas duplicated by established concerns with deep pockets and staying power
e Business rules
Five rules need follow if you want to be profitable network business
1 If you are interested in a market and no competitors yet but the potential market volume is not significant Try to be the biggest e Business player
2 If you prefer enter a e-market and the overall market is large enough Then you make a quick enter and create your own advantage
3 If the e-market large enough but has a very strong competitor inside Then you use the model to subvert their profitability
Five basic rules
4 If the e-market is not big but has a very strong competitor inside Well you just make your own personal website
5 If you donlsquot clear about the market think about that who would be your first clear customers
e Business rules Five basic rules
Homework
bull Reading pp56-57
ldquoUsing the Netrdquo
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Slide 7
- Slide 8
- Slide 9
- Slide 10
- Slide 11
- Slide 12
- Slide 13
- Slide 14
- Slide 15
- Slide 16
- Slide 17
- Slide 18
- Slide 19
- Slide 20
- Slide 21
- Slide 22
- Slide 23
- Slide 24
- Slide 25
- Slide 26
- Slide 27
- Slide 28
- Slide 29
- Slide 30
- Slide 31
-
E-business vs E-commercebull The main difference between them is that e-
commerce defines interaction between organizations and their customers clients or constituents On the other hand e-business is a broader term that also encompasses an organizationrsquos internal operations
bull E-commerce describes the buying and selling of products services and information via computer networks including the Internet where e-Business describes the broadest definition of EC It includes buying and selling of products and services servicing customers collaborating with business partners and conducting other intra-business tasks
Components of e-commerce
To execute those applications companies need the right information infrastructure and support services As shown
bull People Sellers buyers intermediaries information systems specialists and other employees and any other participants
bull Public policy Legal and other policy and regulating issues such as privacy protection and taxation
bull Marketing and advertising Like any other business EC usually requires the support of marketing and advertising
bull Support services Many services are needed to support EC They range from payments to order delivery and content creation
bull Business partnerships Joint ventures e-marketplaces and partnerships are some frequently occurring relationships in e-business
Discussion
bull What are the advantages of e-commercebull What are the disadvantages of e-commerce
bull Business-to-business (B2B)
ndash Business that sells products or provides services to other businesses
ndash WalMart GE Oraclebull Business-to-consumer (B2C)
ndash Business that sells products or provides services to end-user consumers
ndash Amazon Bank of Americabull Consumer-to-consumer (C2C)
ndash Consumers sell directly to other consumers
ndash e-bay Taobao
E-commerce transaction types
bull Business-to-government (B2G)
ndash Government buys or provides goods services or information tofrom businesses or individual citizens
bull Business-to-employee (B2E)
ndash Information and services made available to employees online
bull Mobile commerce (m-commerce)
ndash E-commerce transactions and activities conducted in a wireless environment
bull Collaborative commerce (c-commerce)
ndash Individuals or groups communicate or collaborate online
E-commerce transaction types
bull Consumer-to-business (C2B)
ndash Consumers make known a particular need for a product or service and suppliers compete to provide it
bull Government-to-citizenconsumer (G2C)
ndash A government provides services to its citizens via EC technologies
bull Consumer to Government (C2G)bull Government to Business (G2B)bull Government to Government (G2G)
E-commerce transaction types
Internet termsbull p55 Vocabulary
More termsbull Businessrevenue model 商业 经营 盈利模式
ndash How does a firm make money (generate revenues)ndash Advertising transaction fee sales subscription affiliate
bull Electronic funds transfers (EFT) 电子资金转帐ndash Electronic exchange of account information over
communications networksndash Online bill payment
bull Electronic data interchange (EDI) 电子数据交换ndash Electronic exchange of computer-readable data in a
standard format between trading partnersndash Purchase orders sales invoice request for quotes etc
bull Value-added network (VAN) 增值网络ndash Third party provider of connection and transaction
services to businesses for EDI EFT etcndash 通过计算机服务网络 使不同企业不同的网络系统可以相互连接
从而使不同形式的数据交换成为可能
More terms
bull E-CRM
ndash Process of building sustaining and improving e-business relationships with existing and potential customers through digital media
bull SCM = Supply Chain Management
ndash Process of moving goods from customer order through the raw materials supply production and the distribution of products to the customer
Part II Applications
Examples of e-commerce
bull Internet Advertisementbull Internet Shop bull Internet Bankbull Internet Auctionbull Internet Gambling
Internet advertisement
bull The most common money making method in the Internet is to establish a popular web site where other parties are willing to advertise on the web site
bull For example you can provide an Internet search engine for Internet surfers to search some specific information in a fast manner
bull Your web site may then receive a number of hits per day and could therefore become an ideal place for advertising How much money you can make is dependent upon how popular your site is
bull This kind of money making methods may not require complex clientserver but you need to have bright marketing thinking to find a hot topic for your site
Internet shop
bull With the growth of the Internet there are more and more on-line shops available in the Internet
bull An Internet shop functions like a normal shop where you buy goods by cash cheque or credit card
bull Most Internet shops use credit card based payment systems That is you pay your goods by sending your credit card information to the vendor through a secure channel provided by the Internet shop
bull Of course the security and fairness are the key issues to enable a payment
Internet bankingbull More and more banks now consider the Internet banking as a
must go way to further reduce banking costbull However many people are still cautious about Internet banking
due to security fearsbull If security is reassured more people will start to use the Internet
as a faster and more convenient way of bankingbull An Internet banking system is a clientserver system The bank is
the server who provides the banking servicebull When a customer opens the client page on a banking site what
he or she can do is dependent on the service provided The services include
1048708 Checking your account balance
1048708 Transferring your money from one account to the other
1048708 Doing digital cash transaction
1048708 Withdraw digital cash
1048708 Deposit digital cash
Internet auction
bull The auction server provides the service for bidders to submit their bids A typical Internet bidding protocol looks like
bull 1 Auction Server provide auction information on the Web
bull 2 Bidder cast its bid to the server via a secure channel
bull 3 Auction Server open bids after the bidding time is over and announces the highest bid (seller-oriented auction)
bull 4 Bidder send its payment to the Server via a secure channel
Internet gambling
bull Internet gambling is very much dependent upon the electronic commerce
bull The most on-line gambling systems use the existing electronic commerce protocols
bull Therefore an Internet gambling server must provide two basic services ie game service and e-commerce service
How a transaction takes place
Consumer finds something she wants to buy at a ldquoshoprdquo on the Net
Consumer sends on enciphered request for payment to her bank
The electronic bank sends back a secure packet of e-cash
Consumer sends the e-cash to the shop
Verification and remittance of actual funds
Consumer Public Key
The shop sends the packet of cash to its bank
Merchant Bank
Merchant Server
Shop
Consumerrsquos Bank
Shop
1
3
6
2
5
4
Trading on the Internet
bull Listening p54
ldquoTrading on the Internetrdquo
Major players
Success stories amazoncom
bull Opened July 1995bull Employees gt 9000 worldwidebull Revenue $692 billion net sales in 2004bull Customers Nearly 49 million active accounts
Success stories Dell Computers
bull Dell Computers made waves in industry circles when they announced that they sold over a billion dollars worth of Personal Computers directly off the Web in 1997
ndash Moving routine interactions to the Web
ndash 50000 customers use Dellrsquos web site to check their order status each week
ndash 90000 SW files are downloaded (It costs $150000 a week)
ndash 200000 customers access Dellrsquos trouble-shooting tips online
Business model
Why Did the ldquocomrdquo Companies Fail
bull Flawed business modelndash Companies view the technology as their business
rather than having a businessndash Lose money on individual transactions
bull Amazoncom loses almost $3 per order on multi-product orders
ndash Lack of control over supply of what they sellbull Pricelinecom
ndash All the good ideas duplicated by established concerns with deep pockets and staying power
e Business rules
Five rules need follow if you want to be profitable network business
1 If you are interested in a market and no competitors yet but the potential market volume is not significant Try to be the biggest e Business player
2 If you prefer enter a e-market and the overall market is large enough Then you make a quick enter and create your own advantage
3 If the e-market large enough but has a very strong competitor inside Then you use the model to subvert their profitability
Five basic rules
4 If the e-market is not big but has a very strong competitor inside Well you just make your own personal website
5 If you donlsquot clear about the market think about that who would be your first clear customers
e Business rules Five basic rules
Homework
bull Reading pp56-57
ldquoUsing the Netrdquo
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Slide 7
- Slide 8
- Slide 9
- Slide 10
- Slide 11
- Slide 12
- Slide 13
- Slide 14
- Slide 15
- Slide 16
- Slide 17
- Slide 18
- Slide 19
- Slide 20
- Slide 21
- Slide 22
- Slide 23
- Slide 24
- Slide 25
- Slide 26
- Slide 27
- Slide 28
- Slide 29
- Slide 30
- Slide 31
-
Components of e-commerce
To execute those applications companies need the right information infrastructure and support services As shown
bull People Sellers buyers intermediaries information systems specialists and other employees and any other participants
bull Public policy Legal and other policy and regulating issues such as privacy protection and taxation
bull Marketing and advertising Like any other business EC usually requires the support of marketing and advertising
bull Support services Many services are needed to support EC They range from payments to order delivery and content creation
bull Business partnerships Joint ventures e-marketplaces and partnerships are some frequently occurring relationships in e-business
Discussion
bull What are the advantages of e-commercebull What are the disadvantages of e-commerce
bull Business-to-business (B2B)
ndash Business that sells products or provides services to other businesses
ndash WalMart GE Oraclebull Business-to-consumer (B2C)
ndash Business that sells products or provides services to end-user consumers
ndash Amazon Bank of Americabull Consumer-to-consumer (C2C)
ndash Consumers sell directly to other consumers
ndash e-bay Taobao
E-commerce transaction types
bull Business-to-government (B2G)
ndash Government buys or provides goods services or information tofrom businesses or individual citizens
bull Business-to-employee (B2E)
ndash Information and services made available to employees online
bull Mobile commerce (m-commerce)
ndash E-commerce transactions and activities conducted in a wireless environment
bull Collaborative commerce (c-commerce)
ndash Individuals or groups communicate or collaborate online
E-commerce transaction types
bull Consumer-to-business (C2B)
ndash Consumers make known a particular need for a product or service and suppliers compete to provide it
bull Government-to-citizenconsumer (G2C)
ndash A government provides services to its citizens via EC technologies
bull Consumer to Government (C2G)bull Government to Business (G2B)bull Government to Government (G2G)
E-commerce transaction types
Internet termsbull p55 Vocabulary
More termsbull Businessrevenue model 商业 经营 盈利模式
ndash How does a firm make money (generate revenues)ndash Advertising transaction fee sales subscription affiliate
bull Electronic funds transfers (EFT) 电子资金转帐ndash Electronic exchange of account information over
communications networksndash Online bill payment
bull Electronic data interchange (EDI) 电子数据交换ndash Electronic exchange of computer-readable data in a
standard format between trading partnersndash Purchase orders sales invoice request for quotes etc
bull Value-added network (VAN) 增值网络ndash Third party provider of connection and transaction
services to businesses for EDI EFT etcndash 通过计算机服务网络 使不同企业不同的网络系统可以相互连接
从而使不同形式的数据交换成为可能
More terms
bull E-CRM
ndash Process of building sustaining and improving e-business relationships with existing and potential customers through digital media
bull SCM = Supply Chain Management
ndash Process of moving goods from customer order through the raw materials supply production and the distribution of products to the customer
Part II Applications
Examples of e-commerce
bull Internet Advertisementbull Internet Shop bull Internet Bankbull Internet Auctionbull Internet Gambling
Internet advertisement
bull The most common money making method in the Internet is to establish a popular web site where other parties are willing to advertise on the web site
bull For example you can provide an Internet search engine for Internet surfers to search some specific information in a fast manner
bull Your web site may then receive a number of hits per day and could therefore become an ideal place for advertising How much money you can make is dependent upon how popular your site is
bull This kind of money making methods may not require complex clientserver but you need to have bright marketing thinking to find a hot topic for your site
Internet shop
bull With the growth of the Internet there are more and more on-line shops available in the Internet
bull An Internet shop functions like a normal shop where you buy goods by cash cheque or credit card
bull Most Internet shops use credit card based payment systems That is you pay your goods by sending your credit card information to the vendor through a secure channel provided by the Internet shop
bull Of course the security and fairness are the key issues to enable a payment
Internet bankingbull More and more banks now consider the Internet banking as a
must go way to further reduce banking costbull However many people are still cautious about Internet banking
due to security fearsbull If security is reassured more people will start to use the Internet
as a faster and more convenient way of bankingbull An Internet banking system is a clientserver system The bank is
the server who provides the banking servicebull When a customer opens the client page on a banking site what
he or she can do is dependent on the service provided The services include
1048708 Checking your account balance
1048708 Transferring your money from one account to the other
1048708 Doing digital cash transaction
1048708 Withdraw digital cash
1048708 Deposit digital cash
Internet auction
bull The auction server provides the service for bidders to submit their bids A typical Internet bidding protocol looks like
bull 1 Auction Server provide auction information on the Web
bull 2 Bidder cast its bid to the server via a secure channel
bull 3 Auction Server open bids after the bidding time is over and announces the highest bid (seller-oriented auction)
bull 4 Bidder send its payment to the Server via a secure channel
Internet gambling
bull Internet gambling is very much dependent upon the electronic commerce
bull The most on-line gambling systems use the existing electronic commerce protocols
bull Therefore an Internet gambling server must provide two basic services ie game service and e-commerce service
How a transaction takes place
Consumer finds something she wants to buy at a ldquoshoprdquo on the Net
Consumer sends on enciphered request for payment to her bank
The electronic bank sends back a secure packet of e-cash
Consumer sends the e-cash to the shop
Verification and remittance of actual funds
Consumer Public Key
The shop sends the packet of cash to its bank
Merchant Bank
Merchant Server
Shop
Consumerrsquos Bank
Shop
1
3
6
2
5
4
Trading on the Internet
bull Listening p54
ldquoTrading on the Internetrdquo
Major players
Success stories amazoncom
bull Opened July 1995bull Employees gt 9000 worldwidebull Revenue $692 billion net sales in 2004bull Customers Nearly 49 million active accounts
Success stories Dell Computers
bull Dell Computers made waves in industry circles when they announced that they sold over a billion dollars worth of Personal Computers directly off the Web in 1997
ndash Moving routine interactions to the Web
ndash 50000 customers use Dellrsquos web site to check their order status each week
ndash 90000 SW files are downloaded (It costs $150000 a week)
ndash 200000 customers access Dellrsquos trouble-shooting tips online
Business model
Why Did the ldquocomrdquo Companies Fail
bull Flawed business modelndash Companies view the technology as their business
rather than having a businessndash Lose money on individual transactions
bull Amazoncom loses almost $3 per order on multi-product orders
ndash Lack of control over supply of what they sellbull Pricelinecom
ndash All the good ideas duplicated by established concerns with deep pockets and staying power
e Business rules
Five rules need follow if you want to be profitable network business
1 If you are interested in a market and no competitors yet but the potential market volume is not significant Try to be the biggest e Business player
2 If you prefer enter a e-market and the overall market is large enough Then you make a quick enter and create your own advantage
3 If the e-market large enough but has a very strong competitor inside Then you use the model to subvert their profitability
Five basic rules
4 If the e-market is not big but has a very strong competitor inside Well you just make your own personal website
5 If you donlsquot clear about the market think about that who would be your first clear customers
e Business rules Five basic rules
Homework
bull Reading pp56-57
ldquoUsing the Netrdquo
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Slide 7
- Slide 8
- Slide 9
- Slide 10
- Slide 11
- Slide 12
- Slide 13
- Slide 14
- Slide 15
- Slide 16
- Slide 17
- Slide 18
- Slide 19
- Slide 20
- Slide 21
- Slide 22
- Slide 23
- Slide 24
- Slide 25
- Slide 26
- Slide 27
- Slide 28
- Slide 29
- Slide 30
- Slide 31
-
Discussion
bull What are the advantages of e-commercebull What are the disadvantages of e-commerce
bull Business-to-business (B2B)
ndash Business that sells products or provides services to other businesses
ndash WalMart GE Oraclebull Business-to-consumer (B2C)
ndash Business that sells products or provides services to end-user consumers
ndash Amazon Bank of Americabull Consumer-to-consumer (C2C)
ndash Consumers sell directly to other consumers
ndash e-bay Taobao
E-commerce transaction types
bull Business-to-government (B2G)
ndash Government buys or provides goods services or information tofrom businesses or individual citizens
bull Business-to-employee (B2E)
ndash Information and services made available to employees online
bull Mobile commerce (m-commerce)
ndash E-commerce transactions and activities conducted in a wireless environment
bull Collaborative commerce (c-commerce)
ndash Individuals or groups communicate or collaborate online
E-commerce transaction types
bull Consumer-to-business (C2B)
ndash Consumers make known a particular need for a product or service and suppliers compete to provide it
bull Government-to-citizenconsumer (G2C)
ndash A government provides services to its citizens via EC technologies
bull Consumer to Government (C2G)bull Government to Business (G2B)bull Government to Government (G2G)
E-commerce transaction types
Internet termsbull p55 Vocabulary
More termsbull Businessrevenue model 商业 经营 盈利模式
ndash How does a firm make money (generate revenues)ndash Advertising transaction fee sales subscription affiliate
bull Electronic funds transfers (EFT) 电子资金转帐ndash Electronic exchange of account information over
communications networksndash Online bill payment
bull Electronic data interchange (EDI) 电子数据交换ndash Electronic exchange of computer-readable data in a
standard format between trading partnersndash Purchase orders sales invoice request for quotes etc
bull Value-added network (VAN) 增值网络ndash Third party provider of connection and transaction
services to businesses for EDI EFT etcndash 通过计算机服务网络 使不同企业不同的网络系统可以相互连接
从而使不同形式的数据交换成为可能
More terms
bull E-CRM
ndash Process of building sustaining and improving e-business relationships with existing and potential customers through digital media
bull SCM = Supply Chain Management
ndash Process of moving goods from customer order through the raw materials supply production and the distribution of products to the customer
Part II Applications
Examples of e-commerce
bull Internet Advertisementbull Internet Shop bull Internet Bankbull Internet Auctionbull Internet Gambling
Internet advertisement
bull The most common money making method in the Internet is to establish a popular web site where other parties are willing to advertise on the web site
bull For example you can provide an Internet search engine for Internet surfers to search some specific information in a fast manner
bull Your web site may then receive a number of hits per day and could therefore become an ideal place for advertising How much money you can make is dependent upon how popular your site is
bull This kind of money making methods may not require complex clientserver but you need to have bright marketing thinking to find a hot topic for your site
Internet shop
bull With the growth of the Internet there are more and more on-line shops available in the Internet
bull An Internet shop functions like a normal shop where you buy goods by cash cheque or credit card
bull Most Internet shops use credit card based payment systems That is you pay your goods by sending your credit card information to the vendor through a secure channel provided by the Internet shop
bull Of course the security and fairness are the key issues to enable a payment
Internet bankingbull More and more banks now consider the Internet banking as a
must go way to further reduce banking costbull However many people are still cautious about Internet banking
due to security fearsbull If security is reassured more people will start to use the Internet
as a faster and more convenient way of bankingbull An Internet banking system is a clientserver system The bank is
the server who provides the banking servicebull When a customer opens the client page on a banking site what
he or she can do is dependent on the service provided The services include
1048708 Checking your account balance
1048708 Transferring your money from one account to the other
1048708 Doing digital cash transaction
1048708 Withdraw digital cash
1048708 Deposit digital cash
Internet auction
bull The auction server provides the service for bidders to submit their bids A typical Internet bidding protocol looks like
bull 1 Auction Server provide auction information on the Web
bull 2 Bidder cast its bid to the server via a secure channel
bull 3 Auction Server open bids after the bidding time is over and announces the highest bid (seller-oriented auction)
bull 4 Bidder send its payment to the Server via a secure channel
Internet gambling
bull Internet gambling is very much dependent upon the electronic commerce
bull The most on-line gambling systems use the existing electronic commerce protocols
bull Therefore an Internet gambling server must provide two basic services ie game service and e-commerce service
How a transaction takes place
Consumer finds something she wants to buy at a ldquoshoprdquo on the Net
Consumer sends on enciphered request for payment to her bank
The electronic bank sends back a secure packet of e-cash
Consumer sends the e-cash to the shop
Verification and remittance of actual funds
Consumer Public Key
The shop sends the packet of cash to its bank
Merchant Bank
Merchant Server
Shop
Consumerrsquos Bank
Shop
1
3
6
2
5
4
Trading on the Internet
bull Listening p54
ldquoTrading on the Internetrdquo
Major players
Success stories amazoncom
bull Opened July 1995bull Employees gt 9000 worldwidebull Revenue $692 billion net sales in 2004bull Customers Nearly 49 million active accounts
Success stories Dell Computers
bull Dell Computers made waves in industry circles when they announced that they sold over a billion dollars worth of Personal Computers directly off the Web in 1997
ndash Moving routine interactions to the Web
ndash 50000 customers use Dellrsquos web site to check their order status each week
ndash 90000 SW files are downloaded (It costs $150000 a week)
ndash 200000 customers access Dellrsquos trouble-shooting tips online
Business model
Why Did the ldquocomrdquo Companies Fail
bull Flawed business modelndash Companies view the technology as their business
rather than having a businessndash Lose money on individual transactions
bull Amazoncom loses almost $3 per order on multi-product orders
ndash Lack of control over supply of what they sellbull Pricelinecom
ndash All the good ideas duplicated by established concerns with deep pockets and staying power
e Business rules
Five rules need follow if you want to be profitable network business
1 If you are interested in a market and no competitors yet but the potential market volume is not significant Try to be the biggest e Business player
2 If you prefer enter a e-market and the overall market is large enough Then you make a quick enter and create your own advantage
3 If the e-market large enough but has a very strong competitor inside Then you use the model to subvert their profitability
Five basic rules
4 If the e-market is not big but has a very strong competitor inside Well you just make your own personal website
5 If you donlsquot clear about the market think about that who would be your first clear customers
e Business rules Five basic rules
Homework
bull Reading pp56-57
ldquoUsing the Netrdquo
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Slide 7
- Slide 8
- Slide 9
- Slide 10
- Slide 11
- Slide 12
- Slide 13
- Slide 14
- Slide 15
- Slide 16
- Slide 17
- Slide 18
- Slide 19
- Slide 20
- Slide 21
- Slide 22
- Slide 23
- Slide 24
- Slide 25
- Slide 26
- Slide 27
- Slide 28
- Slide 29
- Slide 30
- Slide 31
-
bull Business-to-business (B2B)
ndash Business that sells products or provides services to other businesses
ndash WalMart GE Oraclebull Business-to-consumer (B2C)
ndash Business that sells products or provides services to end-user consumers
ndash Amazon Bank of Americabull Consumer-to-consumer (C2C)
ndash Consumers sell directly to other consumers
ndash e-bay Taobao
E-commerce transaction types
bull Business-to-government (B2G)
ndash Government buys or provides goods services or information tofrom businesses or individual citizens
bull Business-to-employee (B2E)
ndash Information and services made available to employees online
bull Mobile commerce (m-commerce)
ndash E-commerce transactions and activities conducted in a wireless environment
bull Collaborative commerce (c-commerce)
ndash Individuals or groups communicate or collaborate online
E-commerce transaction types
bull Consumer-to-business (C2B)
ndash Consumers make known a particular need for a product or service and suppliers compete to provide it
bull Government-to-citizenconsumer (G2C)
ndash A government provides services to its citizens via EC technologies
bull Consumer to Government (C2G)bull Government to Business (G2B)bull Government to Government (G2G)
E-commerce transaction types
Internet termsbull p55 Vocabulary
More termsbull Businessrevenue model 商业 经营 盈利模式
ndash How does a firm make money (generate revenues)ndash Advertising transaction fee sales subscription affiliate
bull Electronic funds transfers (EFT) 电子资金转帐ndash Electronic exchange of account information over
communications networksndash Online bill payment
bull Electronic data interchange (EDI) 电子数据交换ndash Electronic exchange of computer-readable data in a
standard format between trading partnersndash Purchase orders sales invoice request for quotes etc
bull Value-added network (VAN) 增值网络ndash Third party provider of connection and transaction
services to businesses for EDI EFT etcndash 通过计算机服务网络 使不同企业不同的网络系统可以相互连接
从而使不同形式的数据交换成为可能
More terms
bull E-CRM
ndash Process of building sustaining and improving e-business relationships with existing and potential customers through digital media
bull SCM = Supply Chain Management
ndash Process of moving goods from customer order through the raw materials supply production and the distribution of products to the customer
Part II Applications
Examples of e-commerce
bull Internet Advertisementbull Internet Shop bull Internet Bankbull Internet Auctionbull Internet Gambling
Internet advertisement
bull The most common money making method in the Internet is to establish a popular web site where other parties are willing to advertise on the web site
bull For example you can provide an Internet search engine for Internet surfers to search some specific information in a fast manner
bull Your web site may then receive a number of hits per day and could therefore become an ideal place for advertising How much money you can make is dependent upon how popular your site is
bull This kind of money making methods may not require complex clientserver but you need to have bright marketing thinking to find a hot topic for your site
Internet shop
bull With the growth of the Internet there are more and more on-line shops available in the Internet
bull An Internet shop functions like a normal shop where you buy goods by cash cheque or credit card
bull Most Internet shops use credit card based payment systems That is you pay your goods by sending your credit card information to the vendor through a secure channel provided by the Internet shop
bull Of course the security and fairness are the key issues to enable a payment
Internet bankingbull More and more banks now consider the Internet banking as a
must go way to further reduce banking costbull However many people are still cautious about Internet banking
due to security fearsbull If security is reassured more people will start to use the Internet
as a faster and more convenient way of bankingbull An Internet banking system is a clientserver system The bank is
the server who provides the banking servicebull When a customer opens the client page on a banking site what
he or she can do is dependent on the service provided The services include
1048708 Checking your account balance
1048708 Transferring your money from one account to the other
1048708 Doing digital cash transaction
1048708 Withdraw digital cash
1048708 Deposit digital cash
Internet auction
bull The auction server provides the service for bidders to submit their bids A typical Internet bidding protocol looks like
bull 1 Auction Server provide auction information on the Web
bull 2 Bidder cast its bid to the server via a secure channel
bull 3 Auction Server open bids after the bidding time is over and announces the highest bid (seller-oriented auction)
bull 4 Bidder send its payment to the Server via a secure channel
Internet gambling
bull Internet gambling is very much dependent upon the electronic commerce
bull The most on-line gambling systems use the existing electronic commerce protocols
bull Therefore an Internet gambling server must provide two basic services ie game service and e-commerce service
How a transaction takes place
Consumer finds something she wants to buy at a ldquoshoprdquo on the Net
Consumer sends on enciphered request for payment to her bank
The electronic bank sends back a secure packet of e-cash
Consumer sends the e-cash to the shop
Verification and remittance of actual funds
Consumer Public Key
The shop sends the packet of cash to its bank
Merchant Bank
Merchant Server
Shop
Consumerrsquos Bank
Shop
1
3
6
2
5
4
Trading on the Internet
bull Listening p54
ldquoTrading on the Internetrdquo
Major players
Success stories amazoncom
bull Opened July 1995bull Employees gt 9000 worldwidebull Revenue $692 billion net sales in 2004bull Customers Nearly 49 million active accounts
Success stories Dell Computers
bull Dell Computers made waves in industry circles when they announced that they sold over a billion dollars worth of Personal Computers directly off the Web in 1997
ndash Moving routine interactions to the Web
ndash 50000 customers use Dellrsquos web site to check their order status each week
ndash 90000 SW files are downloaded (It costs $150000 a week)
ndash 200000 customers access Dellrsquos trouble-shooting tips online
Business model
Why Did the ldquocomrdquo Companies Fail
bull Flawed business modelndash Companies view the technology as their business
rather than having a businessndash Lose money on individual transactions
bull Amazoncom loses almost $3 per order on multi-product orders
ndash Lack of control over supply of what they sellbull Pricelinecom
ndash All the good ideas duplicated by established concerns with deep pockets and staying power
e Business rules
Five rules need follow if you want to be profitable network business
1 If you are interested in a market and no competitors yet but the potential market volume is not significant Try to be the biggest e Business player
2 If you prefer enter a e-market and the overall market is large enough Then you make a quick enter and create your own advantage
3 If the e-market large enough but has a very strong competitor inside Then you use the model to subvert their profitability
Five basic rules
4 If the e-market is not big but has a very strong competitor inside Well you just make your own personal website
5 If you donlsquot clear about the market think about that who would be your first clear customers
e Business rules Five basic rules
Homework
bull Reading pp56-57
ldquoUsing the Netrdquo
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Slide 7
- Slide 8
- Slide 9
- Slide 10
- Slide 11
- Slide 12
- Slide 13
- Slide 14
- Slide 15
- Slide 16
- Slide 17
- Slide 18
- Slide 19
- Slide 20
- Slide 21
- Slide 22
- Slide 23
- Slide 24
- Slide 25
- Slide 26
- Slide 27
- Slide 28
- Slide 29
- Slide 30
- Slide 31
-
bull Business-to-government (B2G)
ndash Government buys or provides goods services or information tofrom businesses or individual citizens
bull Business-to-employee (B2E)
ndash Information and services made available to employees online
bull Mobile commerce (m-commerce)
ndash E-commerce transactions and activities conducted in a wireless environment
bull Collaborative commerce (c-commerce)
ndash Individuals or groups communicate or collaborate online
E-commerce transaction types
bull Consumer-to-business (C2B)
ndash Consumers make known a particular need for a product or service and suppliers compete to provide it
bull Government-to-citizenconsumer (G2C)
ndash A government provides services to its citizens via EC technologies
bull Consumer to Government (C2G)bull Government to Business (G2B)bull Government to Government (G2G)
E-commerce transaction types
Internet termsbull p55 Vocabulary
More termsbull Businessrevenue model 商业 经营 盈利模式
ndash How does a firm make money (generate revenues)ndash Advertising transaction fee sales subscription affiliate
bull Electronic funds transfers (EFT) 电子资金转帐ndash Electronic exchange of account information over
communications networksndash Online bill payment
bull Electronic data interchange (EDI) 电子数据交换ndash Electronic exchange of computer-readable data in a
standard format between trading partnersndash Purchase orders sales invoice request for quotes etc
bull Value-added network (VAN) 增值网络ndash Third party provider of connection and transaction
services to businesses for EDI EFT etcndash 通过计算机服务网络 使不同企业不同的网络系统可以相互连接
从而使不同形式的数据交换成为可能
More terms
bull E-CRM
ndash Process of building sustaining and improving e-business relationships with existing and potential customers through digital media
bull SCM = Supply Chain Management
ndash Process of moving goods from customer order through the raw materials supply production and the distribution of products to the customer
Part II Applications
Examples of e-commerce
bull Internet Advertisementbull Internet Shop bull Internet Bankbull Internet Auctionbull Internet Gambling
Internet advertisement
bull The most common money making method in the Internet is to establish a popular web site where other parties are willing to advertise on the web site
bull For example you can provide an Internet search engine for Internet surfers to search some specific information in a fast manner
bull Your web site may then receive a number of hits per day and could therefore become an ideal place for advertising How much money you can make is dependent upon how popular your site is
bull This kind of money making methods may not require complex clientserver but you need to have bright marketing thinking to find a hot topic for your site
Internet shop
bull With the growth of the Internet there are more and more on-line shops available in the Internet
bull An Internet shop functions like a normal shop where you buy goods by cash cheque or credit card
bull Most Internet shops use credit card based payment systems That is you pay your goods by sending your credit card information to the vendor through a secure channel provided by the Internet shop
bull Of course the security and fairness are the key issues to enable a payment
Internet bankingbull More and more banks now consider the Internet banking as a
must go way to further reduce banking costbull However many people are still cautious about Internet banking
due to security fearsbull If security is reassured more people will start to use the Internet
as a faster and more convenient way of bankingbull An Internet banking system is a clientserver system The bank is
the server who provides the banking servicebull When a customer opens the client page on a banking site what
he or she can do is dependent on the service provided The services include
1048708 Checking your account balance
1048708 Transferring your money from one account to the other
1048708 Doing digital cash transaction
1048708 Withdraw digital cash
1048708 Deposit digital cash
Internet auction
bull The auction server provides the service for bidders to submit their bids A typical Internet bidding protocol looks like
bull 1 Auction Server provide auction information on the Web
bull 2 Bidder cast its bid to the server via a secure channel
bull 3 Auction Server open bids after the bidding time is over and announces the highest bid (seller-oriented auction)
bull 4 Bidder send its payment to the Server via a secure channel
Internet gambling
bull Internet gambling is very much dependent upon the electronic commerce
bull The most on-line gambling systems use the existing electronic commerce protocols
bull Therefore an Internet gambling server must provide two basic services ie game service and e-commerce service
How a transaction takes place
Consumer finds something she wants to buy at a ldquoshoprdquo on the Net
Consumer sends on enciphered request for payment to her bank
The electronic bank sends back a secure packet of e-cash
Consumer sends the e-cash to the shop
Verification and remittance of actual funds
Consumer Public Key
The shop sends the packet of cash to its bank
Merchant Bank
Merchant Server
Shop
Consumerrsquos Bank
Shop
1
3
6
2
5
4
Trading on the Internet
bull Listening p54
ldquoTrading on the Internetrdquo
Major players
Success stories amazoncom
bull Opened July 1995bull Employees gt 9000 worldwidebull Revenue $692 billion net sales in 2004bull Customers Nearly 49 million active accounts
Success stories Dell Computers
bull Dell Computers made waves in industry circles when they announced that they sold over a billion dollars worth of Personal Computers directly off the Web in 1997
ndash Moving routine interactions to the Web
ndash 50000 customers use Dellrsquos web site to check their order status each week
ndash 90000 SW files are downloaded (It costs $150000 a week)
ndash 200000 customers access Dellrsquos trouble-shooting tips online
Business model
Why Did the ldquocomrdquo Companies Fail
bull Flawed business modelndash Companies view the technology as their business
rather than having a businessndash Lose money on individual transactions
bull Amazoncom loses almost $3 per order on multi-product orders
ndash Lack of control over supply of what they sellbull Pricelinecom
ndash All the good ideas duplicated by established concerns with deep pockets and staying power
e Business rules
Five rules need follow if you want to be profitable network business
1 If you are interested in a market and no competitors yet but the potential market volume is not significant Try to be the biggest e Business player
2 If you prefer enter a e-market and the overall market is large enough Then you make a quick enter and create your own advantage
3 If the e-market large enough but has a very strong competitor inside Then you use the model to subvert their profitability
Five basic rules
4 If the e-market is not big but has a very strong competitor inside Well you just make your own personal website
5 If you donlsquot clear about the market think about that who would be your first clear customers
e Business rules Five basic rules
Homework
bull Reading pp56-57
ldquoUsing the Netrdquo
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Slide 7
- Slide 8
- Slide 9
- Slide 10
- Slide 11
- Slide 12
- Slide 13
- Slide 14
- Slide 15
- Slide 16
- Slide 17
- Slide 18
- Slide 19
- Slide 20
- Slide 21
- Slide 22
- Slide 23
- Slide 24
- Slide 25
- Slide 26
- Slide 27
- Slide 28
- Slide 29
- Slide 30
- Slide 31
-
bull Consumer-to-business (C2B)
ndash Consumers make known a particular need for a product or service and suppliers compete to provide it
bull Government-to-citizenconsumer (G2C)
ndash A government provides services to its citizens via EC technologies
bull Consumer to Government (C2G)bull Government to Business (G2B)bull Government to Government (G2G)
E-commerce transaction types
Internet termsbull p55 Vocabulary
More termsbull Businessrevenue model 商业 经营 盈利模式
ndash How does a firm make money (generate revenues)ndash Advertising transaction fee sales subscription affiliate
bull Electronic funds transfers (EFT) 电子资金转帐ndash Electronic exchange of account information over
communications networksndash Online bill payment
bull Electronic data interchange (EDI) 电子数据交换ndash Electronic exchange of computer-readable data in a
standard format between trading partnersndash Purchase orders sales invoice request for quotes etc
bull Value-added network (VAN) 增值网络ndash Third party provider of connection and transaction
services to businesses for EDI EFT etcndash 通过计算机服务网络 使不同企业不同的网络系统可以相互连接
从而使不同形式的数据交换成为可能
More terms
bull E-CRM
ndash Process of building sustaining and improving e-business relationships with existing and potential customers through digital media
bull SCM = Supply Chain Management
ndash Process of moving goods from customer order through the raw materials supply production and the distribution of products to the customer
Part II Applications
Examples of e-commerce
bull Internet Advertisementbull Internet Shop bull Internet Bankbull Internet Auctionbull Internet Gambling
Internet advertisement
bull The most common money making method in the Internet is to establish a popular web site where other parties are willing to advertise on the web site
bull For example you can provide an Internet search engine for Internet surfers to search some specific information in a fast manner
bull Your web site may then receive a number of hits per day and could therefore become an ideal place for advertising How much money you can make is dependent upon how popular your site is
bull This kind of money making methods may not require complex clientserver but you need to have bright marketing thinking to find a hot topic for your site
Internet shop
bull With the growth of the Internet there are more and more on-line shops available in the Internet
bull An Internet shop functions like a normal shop where you buy goods by cash cheque or credit card
bull Most Internet shops use credit card based payment systems That is you pay your goods by sending your credit card information to the vendor through a secure channel provided by the Internet shop
bull Of course the security and fairness are the key issues to enable a payment
Internet bankingbull More and more banks now consider the Internet banking as a
must go way to further reduce banking costbull However many people are still cautious about Internet banking
due to security fearsbull If security is reassured more people will start to use the Internet
as a faster and more convenient way of bankingbull An Internet banking system is a clientserver system The bank is
the server who provides the banking servicebull When a customer opens the client page on a banking site what
he or she can do is dependent on the service provided The services include
1048708 Checking your account balance
1048708 Transferring your money from one account to the other
1048708 Doing digital cash transaction
1048708 Withdraw digital cash
1048708 Deposit digital cash
Internet auction
bull The auction server provides the service for bidders to submit their bids A typical Internet bidding protocol looks like
bull 1 Auction Server provide auction information on the Web
bull 2 Bidder cast its bid to the server via a secure channel
bull 3 Auction Server open bids after the bidding time is over and announces the highest bid (seller-oriented auction)
bull 4 Bidder send its payment to the Server via a secure channel
Internet gambling
bull Internet gambling is very much dependent upon the electronic commerce
bull The most on-line gambling systems use the existing electronic commerce protocols
bull Therefore an Internet gambling server must provide two basic services ie game service and e-commerce service
How a transaction takes place
Consumer finds something she wants to buy at a ldquoshoprdquo on the Net
Consumer sends on enciphered request for payment to her bank
The electronic bank sends back a secure packet of e-cash
Consumer sends the e-cash to the shop
Verification and remittance of actual funds
Consumer Public Key
The shop sends the packet of cash to its bank
Merchant Bank
Merchant Server
Shop
Consumerrsquos Bank
Shop
1
3
6
2
5
4
Trading on the Internet
bull Listening p54
ldquoTrading on the Internetrdquo
Major players
Success stories amazoncom
bull Opened July 1995bull Employees gt 9000 worldwidebull Revenue $692 billion net sales in 2004bull Customers Nearly 49 million active accounts
Success stories Dell Computers
bull Dell Computers made waves in industry circles when they announced that they sold over a billion dollars worth of Personal Computers directly off the Web in 1997
ndash Moving routine interactions to the Web
ndash 50000 customers use Dellrsquos web site to check their order status each week
ndash 90000 SW files are downloaded (It costs $150000 a week)
ndash 200000 customers access Dellrsquos trouble-shooting tips online
Business model
Why Did the ldquocomrdquo Companies Fail
bull Flawed business modelndash Companies view the technology as their business
rather than having a businessndash Lose money on individual transactions
bull Amazoncom loses almost $3 per order on multi-product orders
ndash Lack of control over supply of what they sellbull Pricelinecom
ndash All the good ideas duplicated by established concerns with deep pockets and staying power
e Business rules
Five rules need follow if you want to be profitable network business
1 If you are interested in a market and no competitors yet but the potential market volume is not significant Try to be the biggest e Business player
2 If you prefer enter a e-market and the overall market is large enough Then you make a quick enter and create your own advantage
3 If the e-market large enough but has a very strong competitor inside Then you use the model to subvert their profitability
Five basic rules
4 If the e-market is not big but has a very strong competitor inside Well you just make your own personal website
5 If you donlsquot clear about the market think about that who would be your first clear customers
e Business rules Five basic rules
Homework
bull Reading pp56-57
ldquoUsing the Netrdquo
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Slide 7
- Slide 8
- Slide 9
- Slide 10
- Slide 11
- Slide 12
- Slide 13
- Slide 14
- Slide 15
- Slide 16
- Slide 17
- Slide 18
- Slide 19
- Slide 20
- Slide 21
- Slide 22
- Slide 23
- Slide 24
- Slide 25
- Slide 26
- Slide 27
- Slide 28
- Slide 29
- Slide 30
- Slide 31
-
Internet termsbull p55 Vocabulary
More termsbull Businessrevenue model 商业 经营 盈利模式
ndash How does a firm make money (generate revenues)ndash Advertising transaction fee sales subscription affiliate
bull Electronic funds transfers (EFT) 电子资金转帐ndash Electronic exchange of account information over
communications networksndash Online bill payment
bull Electronic data interchange (EDI) 电子数据交换ndash Electronic exchange of computer-readable data in a
standard format between trading partnersndash Purchase orders sales invoice request for quotes etc
bull Value-added network (VAN) 增值网络ndash Third party provider of connection and transaction
services to businesses for EDI EFT etcndash 通过计算机服务网络 使不同企业不同的网络系统可以相互连接
从而使不同形式的数据交换成为可能
More terms
bull E-CRM
ndash Process of building sustaining and improving e-business relationships with existing and potential customers through digital media
bull SCM = Supply Chain Management
ndash Process of moving goods from customer order through the raw materials supply production and the distribution of products to the customer
Part II Applications
Examples of e-commerce
bull Internet Advertisementbull Internet Shop bull Internet Bankbull Internet Auctionbull Internet Gambling
Internet advertisement
bull The most common money making method in the Internet is to establish a popular web site where other parties are willing to advertise on the web site
bull For example you can provide an Internet search engine for Internet surfers to search some specific information in a fast manner
bull Your web site may then receive a number of hits per day and could therefore become an ideal place for advertising How much money you can make is dependent upon how popular your site is
bull This kind of money making methods may not require complex clientserver but you need to have bright marketing thinking to find a hot topic for your site
Internet shop
bull With the growth of the Internet there are more and more on-line shops available in the Internet
bull An Internet shop functions like a normal shop where you buy goods by cash cheque or credit card
bull Most Internet shops use credit card based payment systems That is you pay your goods by sending your credit card information to the vendor through a secure channel provided by the Internet shop
bull Of course the security and fairness are the key issues to enable a payment
Internet bankingbull More and more banks now consider the Internet banking as a
must go way to further reduce banking costbull However many people are still cautious about Internet banking
due to security fearsbull If security is reassured more people will start to use the Internet
as a faster and more convenient way of bankingbull An Internet banking system is a clientserver system The bank is
the server who provides the banking servicebull When a customer opens the client page on a banking site what
he or she can do is dependent on the service provided The services include
1048708 Checking your account balance
1048708 Transferring your money from one account to the other
1048708 Doing digital cash transaction
1048708 Withdraw digital cash
1048708 Deposit digital cash
Internet auction
bull The auction server provides the service for bidders to submit their bids A typical Internet bidding protocol looks like
bull 1 Auction Server provide auction information on the Web
bull 2 Bidder cast its bid to the server via a secure channel
bull 3 Auction Server open bids after the bidding time is over and announces the highest bid (seller-oriented auction)
bull 4 Bidder send its payment to the Server via a secure channel
Internet gambling
bull Internet gambling is very much dependent upon the electronic commerce
bull The most on-line gambling systems use the existing electronic commerce protocols
bull Therefore an Internet gambling server must provide two basic services ie game service and e-commerce service
How a transaction takes place
Consumer finds something she wants to buy at a ldquoshoprdquo on the Net
Consumer sends on enciphered request for payment to her bank
The electronic bank sends back a secure packet of e-cash
Consumer sends the e-cash to the shop
Verification and remittance of actual funds
Consumer Public Key
The shop sends the packet of cash to its bank
Merchant Bank
Merchant Server
Shop
Consumerrsquos Bank
Shop
1
3
6
2
5
4
Trading on the Internet
bull Listening p54
ldquoTrading on the Internetrdquo
Major players
Success stories amazoncom
bull Opened July 1995bull Employees gt 9000 worldwidebull Revenue $692 billion net sales in 2004bull Customers Nearly 49 million active accounts
Success stories Dell Computers
bull Dell Computers made waves in industry circles when they announced that they sold over a billion dollars worth of Personal Computers directly off the Web in 1997
ndash Moving routine interactions to the Web
ndash 50000 customers use Dellrsquos web site to check their order status each week
ndash 90000 SW files are downloaded (It costs $150000 a week)
ndash 200000 customers access Dellrsquos trouble-shooting tips online
Business model
Why Did the ldquocomrdquo Companies Fail
bull Flawed business modelndash Companies view the technology as their business
rather than having a businessndash Lose money on individual transactions
bull Amazoncom loses almost $3 per order on multi-product orders
ndash Lack of control over supply of what they sellbull Pricelinecom
ndash All the good ideas duplicated by established concerns with deep pockets and staying power
e Business rules
Five rules need follow if you want to be profitable network business
1 If you are interested in a market and no competitors yet but the potential market volume is not significant Try to be the biggest e Business player
2 If you prefer enter a e-market and the overall market is large enough Then you make a quick enter and create your own advantage
3 If the e-market large enough but has a very strong competitor inside Then you use the model to subvert their profitability
Five basic rules
4 If the e-market is not big but has a very strong competitor inside Well you just make your own personal website
5 If you donlsquot clear about the market think about that who would be your first clear customers
e Business rules Five basic rules
Homework
bull Reading pp56-57
ldquoUsing the Netrdquo
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Slide 7
- Slide 8
- Slide 9
- Slide 10
- Slide 11
- Slide 12
- Slide 13
- Slide 14
- Slide 15
- Slide 16
- Slide 17
- Slide 18
- Slide 19
- Slide 20
- Slide 21
- Slide 22
- Slide 23
- Slide 24
- Slide 25
- Slide 26
- Slide 27
- Slide 28
- Slide 29
- Slide 30
- Slide 31
-
More termsbull Businessrevenue model 商业 经营 盈利模式
ndash How does a firm make money (generate revenues)ndash Advertising transaction fee sales subscription affiliate
bull Electronic funds transfers (EFT) 电子资金转帐ndash Electronic exchange of account information over
communications networksndash Online bill payment
bull Electronic data interchange (EDI) 电子数据交换ndash Electronic exchange of computer-readable data in a
standard format between trading partnersndash Purchase orders sales invoice request for quotes etc
bull Value-added network (VAN) 增值网络ndash Third party provider of connection and transaction
services to businesses for EDI EFT etcndash 通过计算机服务网络 使不同企业不同的网络系统可以相互连接
从而使不同形式的数据交换成为可能
More terms
bull E-CRM
ndash Process of building sustaining and improving e-business relationships with existing and potential customers through digital media
bull SCM = Supply Chain Management
ndash Process of moving goods from customer order through the raw materials supply production and the distribution of products to the customer
Part II Applications
Examples of e-commerce
bull Internet Advertisementbull Internet Shop bull Internet Bankbull Internet Auctionbull Internet Gambling
Internet advertisement
bull The most common money making method in the Internet is to establish a popular web site where other parties are willing to advertise on the web site
bull For example you can provide an Internet search engine for Internet surfers to search some specific information in a fast manner
bull Your web site may then receive a number of hits per day and could therefore become an ideal place for advertising How much money you can make is dependent upon how popular your site is
bull This kind of money making methods may not require complex clientserver but you need to have bright marketing thinking to find a hot topic for your site
Internet shop
bull With the growth of the Internet there are more and more on-line shops available in the Internet
bull An Internet shop functions like a normal shop where you buy goods by cash cheque or credit card
bull Most Internet shops use credit card based payment systems That is you pay your goods by sending your credit card information to the vendor through a secure channel provided by the Internet shop
bull Of course the security and fairness are the key issues to enable a payment
Internet bankingbull More and more banks now consider the Internet banking as a
must go way to further reduce banking costbull However many people are still cautious about Internet banking
due to security fearsbull If security is reassured more people will start to use the Internet
as a faster and more convenient way of bankingbull An Internet banking system is a clientserver system The bank is
the server who provides the banking servicebull When a customer opens the client page on a banking site what
he or she can do is dependent on the service provided The services include
1048708 Checking your account balance
1048708 Transferring your money from one account to the other
1048708 Doing digital cash transaction
1048708 Withdraw digital cash
1048708 Deposit digital cash
Internet auction
bull The auction server provides the service for bidders to submit their bids A typical Internet bidding protocol looks like
bull 1 Auction Server provide auction information on the Web
bull 2 Bidder cast its bid to the server via a secure channel
bull 3 Auction Server open bids after the bidding time is over and announces the highest bid (seller-oriented auction)
bull 4 Bidder send its payment to the Server via a secure channel
Internet gambling
bull Internet gambling is very much dependent upon the electronic commerce
bull The most on-line gambling systems use the existing electronic commerce protocols
bull Therefore an Internet gambling server must provide two basic services ie game service and e-commerce service
How a transaction takes place
Consumer finds something she wants to buy at a ldquoshoprdquo on the Net
Consumer sends on enciphered request for payment to her bank
The electronic bank sends back a secure packet of e-cash
Consumer sends the e-cash to the shop
Verification and remittance of actual funds
Consumer Public Key
The shop sends the packet of cash to its bank
Merchant Bank
Merchant Server
Shop
Consumerrsquos Bank
Shop
1
3
6
2
5
4
Trading on the Internet
bull Listening p54
ldquoTrading on the Internetrdquo
Major players
Success stories amazoncom
bull Opened July 1995bull Employees gt 9000 worldwidebull Revenue $692 billion net sales in 2004bull Customers Nearly 49 million active accounts
Success stories Dell Computers
bull Dell Computers made waves in industry circles when they announced that they sold over a billion dollars worth of Personal Computers directly off the Web in 1997
ndash Moving routine interactions to the Web
ndash 50000 customers use Dellrsquos web site to check their order status each week
ndash 90000 SW files are downloaded (It costs $150000 a week)
ndash 200000 customers access Dellrsquos trouble-shooting tips online
Business model
Why Did the ldquocomrdquo Companies Fail
bull Flawed business modelndash Companies view the technology as their business
rather than having a businessndash Lose money on individual transactions
bull Amazoncom loses almost $3 per order on multi-product orders
ndash Lack of control over supply of what they sellbull Pricelinecom
ndash All the good ideas duplicated by established concerns with deep pockets and staying power
e Business rules
Five rules need follow if you want to be profitable network business
1 If you are interested in a market and no competitors yet but the potential market volume is not significant Try to be the biggest e Business player
2 If you prefer enter a e-market and the overall market is large enough Then you make a quick enter and create your own advantage
3 If the e-market large enough but has a very strong competitor inside Then you use the model to subvert their profitability
Five basic rules
4 If the e-market is not big but has a very strong competitor inside Well you just make your own personal website
5 If you donlsquot clear about the market think about that who would be your first clear customers
e Business rules Five basic rules
Homework
bull Reading pp56-57
ldquoUsing the Netrdquo
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Slide 7
- Slide 8
- Slide 9
- Slide 10
- Slide 11
- Slide 12
- Slide 13
- Slide 14
- Slide 15
- Slide 16
- Slide 17
- Slide 18
- Slide 19
- Slide 20
- Slide 21
- Slide 22
- Slide 23
- Slide 24
- Slide 25
- Slide 26
- Slide 27
- Slide 28
- Slide 29
- Slide 30
- Slide 31
-
More terms
bull E-CRM
ndash Process of building sustaining and improving e-business relationships with existing and potential customers through digital media
bull SCM = Supply Chain Management
ndash Process of moving goods from customer order through the raw materials supply production and the distribution of products to the customer
Part II Applications
Examples of e-commerce
bull Internet Advertisementbull Internet Shop bull Internet Bankbull Internet Auctionbull Internet Gambling
Internet advertisement
bull The most common money making method in the Internet is to establish a popular web site where other parties are willing to advertise on the web site
bull For example you can provide an Internet search engine for Internet surfers to search some specific information in a fast manner
bull Your web site may then receive a number of hits per day and could therefore become an ideal place for advertising How much money you can make is dependent upon how popular your site is
bull This kind of money making methods may not require complex clientserver but you need to have bright marketing thinking to find a hot topic for your site
Internet shop
bull With the growth of the Internet there are more and more on-line shops available in the Internet
bull An Internet shop functions like a normal shop where you buy goods by cash cheque or credit card
bull Most Internet shops use credit card based payment systems That is you pay your goods by sending your credit card information to the vendor through a secure channel provided by the Internet shop
bull Of course the security and fairness are the key issues to enable a payment
Internet bankingbull More and more banks now consider the Internet banking as a
must go way to further reduce banking costbull However many people are still cautious about Internet banking
due to security fearsbull If security is reassured more people will start to use the Internet
as a faster and more convenient way of bankingbull An Internet banking system is a clientserver system The bank is
the server who provides the banking servicebull When a customer opens the client page on a banking site what
he or she can do is dependent on the service provided The services include
1048708 Checking your account balance
1048708 Transferring your money from one account to the other
1048708 Doing digital cash transaction
1048708 Withdraw digital cash
1048708 Deposit digital cash
Internet auction
bull The auction server provides the service for bidders to submit their bids A typical Internet bidding protocol looks like
bull 1 Auction Server provide auction information on the Web
bull 2 Bidder cast its bid to the server via a secure channel
bull 3 Auction Server open bids after the bidding time is over and announces the highest bid (seller-oriented auction)
bull 4 Bidder send its payment to the Server via a secure channel
Internet gambling
bull Internet gambling is very much dependent upon the electronic commerce
bull The most on-line gambling systems use the existing electronic commerce protocols
bull Therefore an Internet gambling server must provide two basic services ie game service and e-commerce service
How a transaction takes place
Consumer finds something she wants to buy at a ldquoshoprdquo on the Net
Consumer sends on enciphered request for payment to her bank
The electronic bank sends back a secure packet of e-cash
Consumer sends the e-cash to the shop
Verification and remittance of actual funds
Consumer Public Key
The shop sends the packet of cash to its bank
Merchant Bank
Merchant Server
Shop
Consumerrsquos Bank
Shop
1
3
6
2
5
4
Trading on the Internet
bull Listening p54
ldquoTrading on the Internetrdquo
Major players
Success stories amazoncom
bull Opened July 1995bull Employees gt 9000 worldwidebull Revenue $692 billion net sales in 2004bull Customers Nearly 49 million active accounts
Success stories Dell Computers
bull Dell Computers made waves in industry circles when they announced that they sold over a billion dollars worth of Personal Computers directly off the Web in 1997
ndash Moving routine interactions to the Web
ndash 50000 customers use Dellrsquos web site to check their order status each week
ndash 90000 SW files are downloaded (It costs $150000 a week)
ndash 200000 customers access Dellrsquos trouble-shooting tips online
Business model
Why Did the ldquocomrdquo Companies Fail
bull Flawed business modelndash Companies view the technology as their business
rather than having a businessndash Lose money on individual transactions
bull Amazoncom loses almost $3 per order on multi-product orders
ndash Lack of control over supply of what they sellbull Pricelinecom
ndash All the good ideas duplicated by established concerns with deep pockets and staying power
e Business rules
Five rules need follow if you want to be profitable network business
1 If you are interested in a market and no competitors yet but the potential market volume is not significant Try to be the biggest e Business player
2 If you prefer enter a e-market and the overall market is large enough Then you make a quick enter and create your own advantage
3 If the e-market large enough but has a very strong competitor inside Then you use the model to subvert their profitability
Five basic rules
4 If the e-market is not big but has a very strong competitor inside Well you just make your own personal website
5 If you donlsquot clear about the market think about that who would be your first clear customers
e Business rules Five basic rules
Homework
bull Reading pp56-57
ldquoUsing the Netrdquo
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Slide 7
- Slide 8
- Slide 9
- Slide 10
- Slide 11
- Slide 12
- Slide 13
- Slide 14
- Slide 15
- Slide 16
- Slide 17
- Slide 18
- Slide 19
- Slide 20
- Slide 21
- Slide 22
- Slide 23
- Slide 24
- Slide 25
- Slide 26
- Slide 27
- Slide 28
- Slide 29
- Slide 30
- Slide 31
-
Part II Applications
Examples of e-commerce
bull Internet Advertisementbull Internet Shop bull Internet Bankbull Internet Auctionbull Internet Gambling
Internet advertisement
bull The most common money making method in the Internet is to establish a popular web site where other parties are willing to advertise on the web site
bull For example you can provide an Internet search engine for Internet surfers to search some specific information in a fast manner
bull Your web site may then receive a number of hits per day and could therefore become an ideal place for advertising How much money you can make is dependent upon how popular your site is
bull This kind of money making methods may not require complex clientserver but you need to have bright marketing thinking to find a hot topic for your site
Internet shop
bull With the growth of the Internet there are more and more on-line shops available in the Internet
bull An Internet shop functions like a normal shop where you buy goods by cash cheque or credit card
bull Most Internet shops use credit card based payment systems That is you pay your goods by sending your credit card information to the vendor through a secure channel provided by the Internet shop
bull Of course the security and fairness are the key issues to enable a payment
Internet bankingbull More and more banks now consider the Internet banking as a
must go way to further reduce banking costbull However many people are still cautious about Internet banking
due to security fearsbull If security is reassured more people will start to use the Internet
as a faster and more convenient way of bankingbull An Internet banking system is a clientserver system The bank is
the server who provides the banking servicebull When a customer opens the client page on a banking site what
he or she can do is dependent on the service provided The services include
1048708 Checking your account balance
1048708 Transferring your money from one account to the other
1048708 Doing digital cash transaction
1048708 Withdraw digital cash
1048708 Deposit digital cash
Internet auction
bull The auction server provides the service for bidders to submit their bids A typical Internet bidding protocol looks like
bull 1 Auction Server provide auction information on the Web
bull 2 Bidder cast its bid to the server via a secure channel
bull 3 Auction Server open bids after the bidding time is over and announces the highest bid (seller-oriented auction)
bull 4 Bidder send its payment to the Server via a secure channel
Internet gambling
bull Internet gambling is very much dependent upon the electronic commerce
bull The most on-line gambling systems use the existing electronic commerce protocols
bull Therefore an Internet gambling server must provide two basic services ie game service and e-commerce service
How a transaction takes place
Consumer finds something she wants to buy at a ldquoshoprdquo on the Net
Consumer sends on enciphered request for payment to her bank
The electronic bank sends back a secure packet of e-cash
Consumer sends the e-cash to the shop
Verification and remittance of actual funds
Consumer Public Key
The shop sends the packet of cash to its bank
Merchant Bank
Merchant Server
Shop
Consumerrsquos Bank
Shop
1
3
6
2
5
4
Trading on the Internet
bull Listening p54
ldquoTrading on the Internetrdquo
Major players
Success stories amazoncom
bull Opened July 1995bull Employees gt 9000 worldwidebull Revenue $692 billion net sales in 2004bull Customers Nearly 49 million active accounts
Success stories Dell Computers
bull Dell Computers made waves in industry circles when they announced that they sold over a billion dollars worth of Personal Computers directly off the Web in 1997
ndash Moving routine interactions to the Web
ndash 50000 customers use Dellrsquos web site to check their order status each week
ndash 90000 SW files are downloaded (It costs $150000 a week)
ndash 200000 customers access Dellrsquos trouble-shooting tips online
Business model
Why Did the ldquocomrdquo Companies Fail
bull Flawed business modelndash Companies view the technology as their business
rather than having a businessndash Lose money on individual transactions
bull Amazoncom loses almost $3 per order on multi-product orders
ndash Lack of control over supply of what they sellbull Pricelinecom
ndash All the good ideas duplicated by established concerns with deep pockets and staying power
e Business rules
Five rules need follow if you want to be profitable network business
1 If you are interested in a market and no competitors yet but the potential market volume is not significant Try to be the biggest e Business player
2 If you prefer enter a e-market and the overall market is large enough Then you make a quick enter and create your own advantage
3 If the e-market large enough but has a very strong competitor inside Then you use the model to subvert their profitability
Five basic rules
4 If the e-market is not big but has a very strong competitor inside Well you just make your own personal website
5 If you donlsquot clear about the market think about that who would be your first clear customers
e Business rules Five basic rules
Homework
bull Reading pp56-57
ldquoUsing the Netrdquo
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Slide 7
- Slide 8
- Slide 9
- Slide 10
- Slide 11
- Slide 12
- Slide 13
- Slide 14
- Slide 15
- Slide 16
- Slide 17
- Slide 18
- Slide 19
- Slide 20
- Slide 21
- Slide 22
- Slide 23
- Slide 24
- Slide 25
- Slide 26
- Slide 27
- Slide 28
- Slide 29
- Slide 30
- Slide 31
-
Examples of e-commerce
bull Internet Advertisementbull Internet Shop bull Internet Bankbull Internet Auctionbull Internet Gambling
Internet advertisement
bull The most common money making method in the Internet is to establish a popular web site where other parties are willing to advertise on the web site
bull For example you can provide an Internet search engine for Internet surfers to search some specific information in a fast manner
bull Your web site may then receive a number of hits per day and could therefore become an ideal place for advertising How much money you can make is dependent upon how popular your site is
bull This kind of money making methods may not require complex clientserver but you need to have bright marketing thinking to find a hot topic for your site
Internet shop
bull With the growth of the Internet there are more and more on-line shops available in the Internet
bull An Internet shop functions like a normal shop where you buy goods by cash cheque or credit card
bull Most Internet shops use credit card based payment systems That is you pay your goods by sending your credit card information to the vendor through a secure channel provided by the Internet shop
bull Of course the security and fairness are the key issues to enable a payment
Internet bankingbull More and more banks now consider the Internet banking as a
must go way to further reduce banking costbull However many people are still cautious about Internet banking
due to security fearsbull If security is reassured more people will start to use the Internet
as a faster and more convenient way of bankingbull An Internet banking system is a clientserver system The bank is
the server who provides the banking servicebull When a customer opens the client page on a banking site what
he or she can do is dependent on the service provided The services include
1048708 Checking your account balance
1048708 Transferring your money from one account to the other
1048708 Doing digital cash transaction
1048708 Withdraw digital cash
1048708 Deposit digital cash
Internet auction
bull The auction server provides the service for bidders to submit their bids A typical Internet bidding protocol looks like
bull 1 Auction Server provide auction information on the Web
bull 2 Bidder cast its bid to the server via a secure channel
bull 3 Auction Server open bids after the bidding time is over and announces the highest bid (seller-oriented auction)
bull 4 Bidder send its payment to the Server via a secure channel
Internet gambling
bull Internet gambling is very much dependent upon the electronic commerce
bull The most on-line gambling systems use the existing electronic commerce protocols
bull Therefore an Internet gambling server must provide two basic services ie game service and e-commerce service
How a transaction takes place
Consumer finds something she wants to buy at a ldquoshoprdquo on the Net
Consumer sends on enciphered request for payment to her bank
The electronic bank sends back a secure packet of e-cash
Consumer sends the e-cash to the shop
Verification and remittance of actual funds
Consumer Public Key
The shop sends the packet of cash to its bank
Merchant Bank
Merchant Server
Shop
Consumerrsquos Bank
Shop
1
3
6
2
5
4
Trading on the Internet
bull Listening p54
ldquoTrading on the Internetrdquo
Major players
Success stories amazoncom
bull Opened July 1995bull Employees gt 9000 worldwidebull Revenue $692 billion net sales in 2004bull Customers Nearly 49 million active accounts
Success stories Dell Computers
bull Dell Computers made waves in industry circles when they announced that they sold over a billion dollars worth of Personal Computers directly off the Web in 1997
ndash Moving routine interactions to the Web
ndash 50000 customers use Dellrsquos web site to check their order status each week
ndash 90000 SW files are downloaded (It costs $150000 a week)
ndash 200000 customers access Dellrsquos trouble-shooting tips online
Business model
Why Did the ldquocomrdquo Companies Fail
bull Flawed business modelndash Companies view the technology as their business
rather than having a businessndash Lose money on individual transactions
bull Amazoncom loses almost $3 per order on multi-product orders
ndash Lack of control over supply of what they sellbull Pricelinecom
ndash All the good ideas duplicated by established concerns with deep pockets and staying power
e Business rules
Five rules need follow if you want to be profitable network business
1 If you are interested in a market and no competitors yet but the potential market volume is not significant Try to be the biggest e Business player
2 If you prefer enter a e-market and the overall market is large enough Then you make a quick enter and create your own advantage
3 If the e-market large enough but has a very strong competitor inside Then you use the model to subvert their profitability
Five basic rules
4 If the e-market is not big but has a very strong competitor inside Well you just make your own personal website
5 If you donlsquot clear about the market think about that who would be your first clear customers
e Business rules Five basic rules
Homework
bull Reading pp56-57
ldquoUsing the Netrdquo
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Slide 7
- Slide 8
- Slide 9
- Slide 10
- Slide 11
- Slide 12
- Slide 13
- Slide 14
- Slide 15
- Slide 16
- Slide 17
- Slide 18
- Slide 19
- Slide 20
- Slide 21
- Slide 22
- Slide 23
- Slide 24
- Slide 25
- Slide 26
- Slide 27
- Slide 28
- Slide 29
- Slide 30
- Slide 31
-
Internet advertisement
bull The most common money making method in the Internet is to establish a popular web site where other parties are willing to advertise on the web site
bull For example you can provide an Internet search engine for Internet surfers to search some specific information in a fast manner
bull Your web site may then receive a number of hits per day and could therefore become an ideal place for advertising How much money you can make is dependent upon how popular your site is
bull This kind of money making methods may not require complex clientserver but you need to have bright marketing thinking to find a hot topic for your site
Internet shop
bull With the growth of the Internet there are more and more on-line shops available in the Internet
bull An Internet shop functions like a normal shop where you buy goods by cash cheque or credit card
bull Most Internet shops use credit card based payment systems That is you pay your goods by sending your credit card information to the vendor through a secure channel provided by the Internet shop
bull Of course the security and fairness are the key issues to enable a payment
Internet bankingbull More and more banks now consider the Internet banking as a
must go way to further reduce banking costbull However many people are still cautious about Internet banking
due to security fearsbull If security is reassured more people will start to use the Internet
as a faster and more convenient way of bankingbull An Internet banking system is a clientserver system The bank is
the server who provides the banking servicebull When a customer opens the client page on a banking site what
he or she can do is dependent on the service provided The services include
1048708 Checking your account balance
1048708 Transferring your money from one account to the other
1048708 Doing digital cash transaction
1048708 Withdraw digital cash
1048708 Deposit digital cash
Internet auction
bull The auction server provides the service for bidders to submit their bids A typical Internet bidding protocol looks like
bull 1 Auction Server provide auction information on the Web
bull 2 Bidder cast its bid to the server via a secure channel
bull 3 Auction Server open bids after the bidding time is over and announces the highest bid (seller-oriented auction)
bull 4 Bidder send its payment to the Server via a secure channel
Internet gambling
bull Internet gambling is very much dependent upon the electronic commerce
bull The most on-line gambling systems use the existing electronic commerce protocols
bull Therefore an Internet gambling server must provide two basic services ie game service and e-commerce service
How a transaction takes place
Consumer finds something she wants to buy at a ldquoshoprdquo on the Net
Consumer sends on enciphered request for payment to her bank
The electronic bank sends back a secure packet of e-cash
Consumer sends the e-cash to the shop
Verification and remittance of actual funds
Consumer Public Key
The shop sends the packet of cash to its bank
Merchant Bank
Merchant Server
Shop
Consumerrsquos Bank
Shop
1
3
6
2
5
4
Trading on the Internet
bull Listening p54
ldquoTrading on the Internetrdquo
Major players
Success stories amazoncom
bull Opened July 1995bull Employees gt 9000 worldwidebull Revenue $692 billion net sales in 2004bull Customers Nearly 49 million active accounts
Success stories Dell Computers
bull Dell Computers made waves in industry circles when they announced that they sold over a billion dollars worth of Personal Computers directly off the Web in 1997
ndash Moving routine interactions to the Web
ndash 50000 customers use Dellrsquos web site to check their order status each week
ndash 90000 SW files are downloaded (It costs $150000 a week)
ndash 200000 customers access Dellrsquos trouble-shooting tips online
Business model
Why Did the ldquocomrdquo Companies Fail
bull Flawed business modelndash Companies view the technology as their business
rather than having a businessndash Lose money on individual transactions
bull Amazoncom loses almost $3 per order on multi-product orders
ndash Lack of control over supply of what they sellbull Pricelinecom
ndash All the good ideas duplicated by established concerns with deep pockets and staying power
e Business rules
Five rules need follow if you want to be profitable network business
1 If you are interested in a market and no competitors yet but the potential market volume is not significant Try to be the biggest e Business player
2 If you prefer enter a e-market and the overall market is large enough Then you make a quick enter and create your own advantage
3 If the e-market large enough but has a very strong competitor inside Then you use the model to subvert their profitability
Five basic rules
4 If the e-market is not big but has a very strong competitor inside Well you just make your own personal website
5 If you donlsquot clear about the market think about that who would be your first clear customers
e Business rules Five basic rules
Homework
bull Reading pp56-57
ldquoUsing the Netrdquo
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Slide 7
- Slide 8
- Slide 9
- Slide 10
- Slide 11
- Slide 12
- Slide 13
- Slide 14
- Slide 15
- Slide 16
- Slide 17
- Slide 18
- Slide 19
- Slide 20
- Slide 21
- Slide 22
- Slide 23
- Slide 24
- Slide 25
- Slide 26
- Slide 27
- Slide 28
- Slide 29
- Slide 30
- Slide 31
-
Internet shop
bull With the growth of the Internet there are more and more on-line shops available in the Internet
bull An Internet shop functions like a normal shop where you buy goods by cash cheque or credit card
bull Most Internet shops use credit card based payment systems That is you pay your goods by sending your credit card information to the vendor through a secure channel provided by the Internet shop
bull Of course the security and fairness are the key issues to enable a payment
Internet bankingbull More and more banks now consider the Internet banking as a
must go way to further reduce banking costbull However many people are still cautious about Internet banking
due to security fearsbull If security is reassured more people will start to use the Internet
as a faster and more convenient way of bankingbull An Internet banking system is a clientserver system The bank is
the server who provides the banking servicebull When a customer opens the client page on a banking site what
he or she can do is dependent on the service provided The services include
1048708 Checking your account balance
1048708 Transferring your money from one account to the other
1048708 Doing digital cash transaction
1048708 Withdraw digital cash
1048708 Deposit digital cash
Internet auction
bull The auction server provides the service for bidders to submit their bids A typical Internet bidding protocol looks like
bull 1 Auction Server provide auction information on the Web
bull 2 Bidder cast its bid to the server via a secure channel
bull 3 Auction Server open bids after the bidding time is over and announces the highest bid (seller-oriented auction)
bull 4 Bidder send its payment to the Server via a secure channel
Internet gambling
bull Internet gambling is very much dependent upon the electronic commerce
bull The most on-line gambling systems use the existing electronic commerce protocols
bull Therefore an Internet gambling server must provide two basic services ie game service and e-commerce service
How a transaction takes place
Consumer finds something she wants to buy at a ldquoshoprdquo on the Net
Consumer sends on enciphered request for payment to her bank
The electronic bank sends back a secure packet of e-cash
Consumer sends the e-cash to the shop
Verification and remittance of actual funds
Consumer Public Key
The shop sends the packet of cash to its bank
Merchant Bank
Merchant Server
Shop
Consumerrsquos Bank
Shop
1
3
6
2
5
4
Trading on the Internet
bull Listening p54
ldquoTrading on the Internetrdquo
Major players
Success stories amazoncom
bull Opened July 1995bull Employees gt 9000 worldwidebull Revenue $692 billion net sales in 2004bull Customers Nearly 49 million active accounts
Success stories Dell Computers
bull Dell Computers made waves in industry circles when they announced that they sold over a billion dollars worth of Personal Computers directly off the Web in 1997
ndash Moving routine interactions to the Web
ndash 50000 customers use Dellrsquos web site to check their order status each week
ndash 90000 SW files are downloaded (It costs $150000 a week)
ndash 200000 customers access Dellrsquos trouble-shooting tips online
Business model
Why Did the ldquocomrdquo Companies Fail
bull Flawed business modelndash Companies view the technology as their business
rather than having a businessndash Lose money on individual transactions
bull Amazoncom loses almost $3 per order on multi-product orders
ndash Lack of control over supply of what they sellbull Pricelinecom
ndash All the good ideas duplicated by established concerns with deep pockets and staying power
e Business rules
Five rules need follow if you want to be profitable network business
1 If you are interested in a market and no competitors yet but the potential market volume is not significant Try to be the biggest e Business player
2 If you prefer enter a e-market and the overall market is large enough Then you make a quick enter and create your own advantage
3 If the e-market large enough but has a very strong competitor inside Then you use the model to subvert their profitability
Five basic rules
4 If the e-market is not big but has a very strong competitor inside Well you just make your own personal website
5 If you donlsquot clear about the market think about that who would be your first clear customers
e Business rules Five basic rules
Homework
bull Reading pp56-57
ldquoUsing the Netrdquo
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Slide 7
- Slide 8
- Slide 9
- Slide 10
- Slide 11
- Slide 12
- Slide 13
- Slide 14
- Slide 15
- Slide 16
- Slide 17
- Slide 18
- Slide 19
- Slide 20
- Slide 21
- Slide 22
- Slide 23
- Slide 24
- Slide 25
- Slide 26
- Slide 27
- Slide 28
- Slide 29
- Slide 30
- Slide 31
-
Internet bankingbull More and more banks now consider the Internet banking as a
must go way to further reduce banking costbull However many people are still cautious about Internet banking
due to security fearsbull If security is reassured more people will start to use the Internet
as a faster and more convenient way of bankingbull An Internet banking system is a clientserver system The bank is
the server who provides the banking servicebull When a customer opens the client page on a banking site what
he or she can do is dependent on the service provided The services include
1048708 Checking your account balance
1048708 Transferring your money from one account to the other
1048708 Doing digital cash transaction
1048708 Withdraw digital cash
1048708 Deposit digital cash
Internet auction
bull The auction server provides the service for bidders to submit their bids A typical Internet bidding protocol looks like
bull 1 Auction Server provide auction information on the Web
bull 2 Bidder cast its bid to the server via a secure channel
bull 3 Auction Server open bids after the bidding time is over and announces the highest bid (seller-oriented auction)
bull 4 Bidder send its payment to the Server via a secure channel
Internet gambling
bull Internet gambling is very much dependent upon the electronic commerce
bull The most on-line gambling systems use the existing electronic commerce protocols
bull Therefore an Internet gambling server must provide two basic services ie game service and e-commerce service
How a transaction takes place
Consumer finds something she wants to buy at a ldquoshoprdquo on the Net
Consumer sends on enciphered request for payment to her bank
The electronic bank sends back a secure packet of e-cash
Consumer sends the e-cash to the shop
Verification and remittance of actual funds
Consumer Public Key
The shop sends the packet of cash to its bank
Merchant Bank
Merchant Server
Shop
Consumerrsquos Bank
Shop
1
3
6
2
5
4
Trading on the Internet
bull Listening p54
ldquoTrading on the Internetrdquo
Major players
Success stories amazoncom
bull Opened July 1995bull Employees gt 9000 worldwidebull Revenue $692 billion net sales in 2004bull Customers Nearly 49 million active accounts
Success stories Dell Computers
bull Dell Computers made waves in industry circles when they announced that they sold over a billion dollars worth of Personal Computers directly off the Web in 1997
ndash Moving routine interactions to the Web
ndash 50000 customers use Dellrsquos web site to check their order status each week
ndash 90000 SW files are downloaded (It costs $150000 a week)
ndash 200000 customers access Dellrsquos trouble-shooting tips online
Business model
Why Did the ldquocomrdquo Companies Fail
bull Flawed business modelndash Companies view the technology as their business
rather than having a businessndash Lose money on individual transactions
bull Amazoncom loses almost $3 per order on multi-product orders
ndash Lack of control over supply of what they sellbull Pricelinecom
ndash All the good ideas duplicated by established concerns with deep pockets and staying power
e Business rules
Five rules need follow if you want to be profitable network business
1 If you are interested in a market and no competitors yet but the potential market volume is not significant Try to be the biggest e Business player
2 If you prefer enter a e-market and the overall market is large enough Then you make a quick enter and create your own advantage
3 If the e-market large enough but has a very strong competitor inside Then you use the model to subvert their profitability
Five basic rules
4 If the e-market is not big but has a very strong competitor inside Well you just make your own personal website
5 If you donlsquot clear about the market think about that who would be your first clear customers
e Business rules Five basic rules
Homework
bull Reading pp56-57
ldquoUsing the Netrdquo
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Slide 7
- Slide 8
- Slide 9
- Slide 10
- Slide 11
- Slide 12
- Slide 13
- Slide 14
- Slide 15
- Slide 16
- Slide 17
- Slide 18
- Slide 19
- Slide 20
- Slide 21
- Slide 22
- Slide 23
- Slide 24
- Slide 25
- Slide 26
- Slide 27
- Slide 28
- Slide 29
- Slide 30
- Slide 31
-
Internet auction
bull The auction server provides the service for bidders to submit their bids A typical Internet bidding protocol looks like
bull 1 Auction Server provide auction information on the Web
bull 2 Bidder cast its bid to the server via a secure channel
bull 3 Auction Server open bids after the bidding time is over and announces the highest bid (seller-oriented auction)
bull 4 Bidder send its payment to the Server via a secure channel
Internet gambling
bull Internet gambling is very much dependent upon the electronic commerce
bull The most on-line gambling systems use the existing electronic commerce protocols
bull Therefore an Internet gambling server must provide two basic services ie game service and e-commerce service
How a transaction takes place
Consumer finds something she wants to buy at a ldquoshoprdquo on the Net
Consumer sends on enciphered request for payment to her bank
The electronic bank sends back a secure packet of e-cash
Consumer sends the e-cash to the shop
Verification and remittance of actual funds
Consumer Public Key
The shop sends the packet of cash to its bank
Merchant Bank
Merchant Server
Shop
Consumerrsquos Bank
Shop
1
3
6
2
5
4
Trading on the Internet
bull Listening p54
ldquoTrading on the Internetrdquo
Major players
Success stories amazoncom
bull Opened July 1995bull Employees gt 9000 worldwidebull Revenue $692 billion net sales in 2004bull Customers Nearly 49 million active accounts
Success stories Dell Computers
bull Dell Computers made waves in industry circles when they announced that they sold over a billion dollars worth of Personal Computers directly off the Web in 1997
ndash Moving routine interactions to the Web
ndash 50000 customers use Dellrsquos web site to check their order status each week
ndash 90000 SW files are downloaded (It costs $150000 a week)
ndash 200000 customers access Dellrsquos trouble-shooting tips online
Business model
Why Did the ldquocomrdquo Companies Fail
bull Flawed business modelndash Companies view the technology as their business
rather than having a businessndash Lose money on individual transactions
bull Amazoncom loses almost $3 per order on multi-product orders
ndash Lack of control over supply of what they sellbull Pricelinecom
ndash All the good ideas duplicated by established concerns with deep pockets and staying power
e Business rules
Five rules need follow if you want to be profitable network business
1 If you are interested in a market and no competitors yet but the potential market volume is not significant Try to be the biggest e Business player
2 If you prefer enter a e-market and the overall market is large enough Then you make a quick enter and create your own advantage
3 If the e-market large enough but has a very strong competitor inside Then you use the model to subvert their profitability
Five basic rules
4 If the e-market is not big but has a very strong competitor inside Well you just make your own personal website
5 If you donlsquot clear about the market think about that who would be your first clear customers
e Business rules Five basic rules
Homework
bull Reading pp56-57
ldquoUsing the Netrdquo
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Slide 7
- Slide 8
- Slide 9
- Slide 10
- Slide 11
- Slide 12
- Slide 13
- Slide 14
- Slide 15
- Slide 16
- Slide 17
- Slide 18
- Slide 19
- Slide 20
- Slide 21
- Slide 22
- Slide 23
- Slide 24
- Slide 25
- Slide 26
- Slide 27
- Slide 28
- Slide 29
- Slide 30
- Slide 31
-
Internet gambling
bull Internet gambling is very much dependent upon the electronic commerce
bull The most on-line gambling systems use the existing electronic commerce protocols
bull Therefore an Internet gambling server must provide two basic services ie game service and e-commerce service
How a transaction takes place
Consumer finds something she wants to buy at a ldquoshoprdquo on the Net
Consumer sends on enciphered request for payment to her bank
The electronic bank sends back a secure packet of e-cash
Consumer sends the e-cash to the shop
Verification and remittance of actual funds
Consumer Public Key
The shop sends the packet of cash to its bank
Merchant Bank
Merchant Server
Shop
Consumerrsquos Bank
Shop
1
3
6
2
5
4
Trading on the Internet
bull Listening p54
ldquoTrading on the Internetrdquo
Major players
Success stories amazoncom
bull Opened July 1995bull Employees gt 9000 worldwidebull Revenue $692 billion net sales in 2004bull Customers Nearly 49 million active accounts
Success stories Dell Computers
bull Dell Computers made waves in industry circles when they announced that they sold over a billion dollars worth of Personal Computers directly off the Web in 1997
ndash Moving routine interactions to the Web
ndash 50000 customers use Dellrsquos web site to check their order status each week
ndash 90000 SW files are downloaded (It costs $150000 a week)
ndash 200000 customers access Dellrsquos trouble-shooting tips online
Business model
Why Did the ldquocomrdquo Companies Fail
bull Flawed business modelndash Companies view the technology as their business
rather than having a businessndash Lose money on individual transactions
bull Amazoncom loses almost $3 per order on multi-product orders
ndash Lack of control over supply of what they sellbull Pricelinecom
ndash All the good ideas duplicated by established concerns with deep pockets and staying power
e Business rules
Five rules need follow if you want to be profitable network business
1 If you are interested in a market and no competitors yet but the potential market volume is not significant Try to be the biggest e Business player
2 If you prefer enter a e-market and the overall market is large enough Then you make a quick enter and create your own advantage
3 If the e-market large enough but has a very strong competitor inside Then you use the model to subvert their profitability
Five basic rules
4 If the e-market is not big but has a very strong competitor inside Well you just make your own personal website
5 If you donlsquot clear about the market think about that who would be your first clear customers
e Business rules Five basic rules
Homework
bull Reading pp56-57
ldquoUsing the Netrdquo
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Slide 7
- Slide 8
- Slide 9
- Slide 10
- Slide 11
- Slide 12
- Slide 13
- Slide 14
- Slide 15
- Slide 16
- Slide 17
- Slide 18
- Slide 19
- Slide 20
- Slide 21
- Slide 22
- Slide 23
- Slide 24
- Slide 25
- Slide 26
- Slide 27
- Slide 28
- Slide 29
- Slide 30
- Slide 31
-
How a transaction takes place
Consumer finds something she wants to buy at a ldquoshoprdquo on the Net
Consumer sends on enciphered request for payment to her bank
The electronic bank sends back a secure packet of e-cash
Consumer sends the e-cash to the shop
Verification and remittance of actual funds
Consumer Public Key
The shop sends the packet of cash to its bank
Merchant Bank
Merchant Server
Shop
Consumerrsquos Bank
Shop
1
3
6
2
5
4
Trading on the Internet
bull Listening p54
ldquoTrading on the Internetrdquo
Major players
Success stories amazoncom
bull Opened July 1995bull Employees gt 9000 worldwidebull Revenue $692 billion net sales in 2004bull Customers Nearly 49 million active accounts
Success stories Dell Computers
bull Dell Computers made waves in industry circles when they announced that they sold over a billion dollars worth of Personal Computers directly off the Web in 1997
ndash Moving routine interactions to the Web
ndash 50000 customers use Dellrsquos web site to check their order status each week
ndash 90000 SW files are downloaded (It costs $150000 a week)
ndash 200000 customers access Dellrsquos trouble-shooting tips online
Business model
Why Did the ldquocomrdquo Companies Fail
bull Flawed business modelndash Companies view the technology as their business
rather than having a businessndash Lose money on individual transactions
bull Amazoncom loses almost $3 per order on multi-product orders
ndash Lack of control over supply of what they sellbull Pricelinecom
ndash All the good ideas duplicated by established concerns with deep pockets and staying power
e Business rules
Five rules need follow if you want to be profitable network business
1 If you are interested in a market and no competitors yet but the potential market volume is not significant Try to be the biggest e Business player
2 If you prefer enter a e-market and the overall market is large enough Then you make a quick enter and create your own advantage
3 If the e-market large enough but has a very strong competitor inside Then you use the model to subvert their profitability
Five basic rules
4 If the e-market is not big but has a very strong competitor inside Well you just make your own personal website
5 If you donlsquot clear about the market think about that who would be your first clear customers
e Business rules Five basic rules
Homework
bull Reading pp56-57
ldquoUsing the Netrdquo
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Slide 7
- Slide 8
- Slide 9
- Slide 10
- Slide 11
- Slide 12
- Slide 13
- Slide 14
- Slide 15
- Slide 16
- Slide 17
- Slide 18
- Slide 19
- Slide 20
- Slide 21
- Slide 22
- Slide 23
- Slide 24
- Slide 25
- Slide 26
- Slide 27
- Slide 28
- Slide 29
- Slide 30
- Slide 31
-
Consumer finds something she wants to buy at a ldquoshoprdquo on the Net
Consumer sends on enciphered request for payment to her bank
The electronic bank sends back a secure packet of e-cash
Consumer sends the e-cash to the shop
Verification and remittance of actual funds
Consumer Public Key
The shop sends the packet of cash to its bank
Merchant Bank
Merchant Server
Shop
Consumerrsquos Bank
Shop
1
3
6
2
5
4
Trading on the Internet
bull Listening p54
ldquoTrading on the Internetrdquo
Major players
Success stories amazoncom
bull Opened July 1995bull Employees gt 9000 worldwidebull Revenue $692 billion net sales in 2004bull Customers Nearly 49 million active accounts
Success stories Dell Computers
bull Dell Computers made waves in industry circles when they announced that they sold over a billion dollars worth of Personal Computers directly off the Web in 1997
ndash Moving routine interactions to the Web
ndash 50000 customers use Dellrsquos web site to check their order status each week
ndash 90000 SW files are downloaded (It costs $150000 a week)
ndash 200000 customers access Dellrsquos trouble-shooting tips online
Business model
Why Did the ldquocomrdquo Companies Fail
bull Flawed business modelndash Companies view the technology as their business
rather than having a businessndash Lose money on individual transactions
bull Amazoncom loses almost $3 per order on multi-product orders
ndash Lack of control over supply of what they sellbull Pricelinecom
ndash All the good ideas duplicated by established concerns with deep pockets and staying power
e Business rules
Five rules need follow if you want to be profitable network business
1 If you are interested in a market and no competitors yet but the potential market volume is not significant Try to be the biggest e Business player
2 If you prefer enter a e-market and the overall market is large enough Then you make a quick enter and create your own advantage
3 If the e-market large enough but has a very strong competitor inside Then you use the model to subvert their profitability
Five basic rules
4 If the e-market is not big but has a very strong competitor inside Well you just make your own personal website
5 If you donlsquot clear about the market think about that who would be your first clear customers
e Business rules Five basic rules
Homework
bull Reading pp56-57
ldquoUsing the Netrdquo
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Slide 7
- Slide 8
- Slide 9
- Slide 10
- Slide 11
- Slide 12
- Slide 13
- Slide 14
- Slide 15
- Slide 16
- Slide 17
- Slide 18
- Slide 19
- Slide 20
- Slide 21
- Slide 22
- Slide 23
- Slide 24
- Slide 25
- Slide 26
- Slide 27
- Slide 28
- Slide 29
- Slide 30
- Slide 31
-
Trading on the Internet
bull Listening p54
ldquoTrading on the Internetrdquo
Major players
Success stories amazoncom
bull Opened July 1995bull Employees gt 9000 worldwidebull Revenue $692 billion net sales in 2004bull Customers Nearly 49 million active accounts
Success stories Dell Computers
bull Dell Computers made waves in industry circles when they announced that they sold over a billion dollars worth of Personal Computers directly off the Web in 1997
ndash Moving routine interactions to the Web
ndash 50000 customers use Dellrsquos web site to check their order status each week
ndash 90000 SW files are downloaded (It costs $150000 a week)
ndash 200000 customers access Dellrsquos trouble-shooting tips online
Business model
Why Did the ldquocomrdquo Companies Fail
bull Flawed business modelndash Companies view the technology as their business
rather than having a businessndash Lose money on individual transactions
bull Amazoncom loses almost $3 per order on multi-product orders
ndash Lack of control over supply of what they sellbull Pricelinecom
ndash All the good ideas duplicated by established concerns with deep pockets and staying power
e Business rules
Five rules need follow if you want to be profitable network business
1 If you are interested in a market and no competitors yet but the potential market volume is not significant Try to be the biggest e Business player
2 If you prefer enter a e-market and the overall market is large enough Then you make a quick enter and create your own advantage
3 If the e-market large enough but has a very strong competitor inside Then you use the model to subvert their profitability
Five basic rules
4 If the e-market is not big but has a very strong competitor inside Well you just make your own personal website
5 If you donlsquot clear about the market think about that who would be your first clear customers
e Business rules Five basic rules
Homework
bull Reading pp56-57
ldquoUsing the Netrdquo
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Slide 7
- Slide 8
- Slide 9
- Slide 10
- Slide 11
- Slide 12
- Slide 13
- Slide 14
- Slide 15
- Slide 16
- Slide 17
- Slide 18
- Slide 19
- Slide 20
- Slide 21
- Slide 22
- Slide 23
- Slide 24
- Slide 25
- Slide 26
- Slide 27
- Slide 28
- Slide 29
- Slide 30
- Slide 31
-
Major players
Success stories amazoncom
bull Opened July 1995bull Employees gt 9000 worldwidebull Revenue $692 billion net sales in 2004bull Customers Nearly 49 million active accounts
Success stories Dell Computers
bull Dell Computers made waves in industry circles when they announced that they sold over a billion dollars worth of Personal Computers directly off the Web in 1997
ndash Moving routine interactions to the Web
ndash 50000 customers use Dellrsquos web site to check their order status each week
ndash 90000 SW files are downloaded (It costs $150000 a week)
ndash 200000 customers access Dellrsquos trouble-shooting tips online
Business model
Why Did the ldquocomrdquo Companies Fail
bull Flawed business modelndash Companies view the technology as their business
rather than having a businessndash Lose money on individual transactions
bull Amazoncom loses almost $3 per order on multi-product orders
ndash Lack of control over supply of what they sellbull Pricelinecom
ndash All the good ideas duplicated by established concerns with deep pockets and staying power
e Business rules
Five rules need follow if you want to be profitable network business
1 If you are interested in a market and no competitors yet but the potential market volume is not significant Try to be the biggest e Business player
2 If you prefer enter a e-market and the overall market is large enough Then you make a quick enter and create your own advantage
3 If the e-market large enough but has a very strong competitor inside Then you use the model to subvert their profitability
Five basic rules
4 If the e-market is not big but has a very strong competitor inside Well you just make your own personal website
5 If you donlsquot clear about the market think about that who would be your first clear customers
e Business rules Five basic rules
Homework
bull Reading pp56-57
ldquoUsing the Netrdquo
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Slide 7
- Slide 8
- Slide 9
- Slide 10
- Slide 11
- Slide 12
- Slide 13
- Slide 14
- Slide 15
- Slide 16
- Slide 17
- Slide 18
- Slide 19
- Slide 20
- Slide 21
- Slide 22
- Slide 23
- Slide 24
- Slide 25
- Slide 26
- Slide 27
- Slide 28
- Slide 29
- Slide 30
- Slide 31
-
Success stories amazoncom
bull Opened July 1995bull Employees gt 9000 worldwidebull Revenue $692 billion net sales in 2004bull Customers Nearly 49 million active accounts
Success stories Dell Computers
bull Dell Computers made waves in industry circles when they announced that they sold over a billion dollars worth of Personal Computers directly off the Web in 1997
ndash Moving routine interactions to the Web
ndash 50000 customers use Dellrsquos web site to check their order status each week
ndash 90000 SW files are downloaded (It costs $150000 a week)
ndash 200000 customers access Dellrsquos trouble-shooting tips online
Business model
Why Did the ldquocomrdquo Companies Fail
bull Flawed business modelndash Companies view the technology as their business
rather than having a businessndash Lose money on individual transactions
bull Amazoncom loses almost $3 per order on multi-product orders
ndash Lack of control over supply of what they sellbull Pricelinecom
ndash All the good ideas duplicated by established concerns with deep pockets and staying power
e Business rules
Five rules need follow if you want to be profitable network business
1 If you are interested in a market and no competitors yet but the potential market volume is not significant Try to be the biggest e Business player
2 If you prefer enter a e-market and the overall market is large enough Then you make a quick enter and create your own advantage
3 If the e-market large enough but has a very strong competitor inside Then you use the model to subvert their profitability
Five basic rules
4 If the e-market is not big but has a very strong competitor inside Well you just make your own personal website
5 If you donlsquot clear about the market think about that who would be your first clear customers
e Business rules Five basic rules
Homework
bull Reading pp56-57
ldquoUsing the Netrdquo
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Slide 7
- Slide 8
- Slide 9
- Slide 10
- Slide 11
- Slide 12
- Slide 13
- Slide 14
- Slide 15
- Slide 16
- Slide 17
- Slide 18
- Slide 19
- Slide 20
- Slide 21
- Slide 22
- Slide 23
- Slide 24
- Slide 25
- Slide 26
- Slide 27
- Slide 28
- Slide 29
- Slide 30
- Slide 31
-
Success stories Dell Computers
bull Dell Computers made waves in industry circles when they announced that they sold over a billion dollars worth of Personal Computers directly off the Web in 1997
ndash Moving routine interactions to the Web
ndash 50000 customers use Dellrsquos web site to check their order status each week
ndash 90000 SW files are downloaded (It costs $150000 a week)
ndash 200000 customers access Dellrsquos trouble-shooting tips online
Business model
Why Did the ldquocomrdquo Companies Fail
bull Flawed business modelndash Companies view the technology as their business
rather than having a businessndash Lose money on individual transactions
bull Amazoncom loses almost $3 per order on multi-product orders
ndash Lack of control over supply of what they sellbull Pricelinecom
ndash All the good ideas duplicated by established concerns with deep pockets and staying power
e Business rules
Five rules need follow if you want to be profitable network business
1 If you are interested in a market and no competitors yet but the potential market volume is not significant Try to be the biggest e Business player
2 If you prefer enter a e-market and the overall market is large enough Then you make a quick enter and create your own advantage
3 If the e-market large enough but has a very strong competitor inside Then you use the model to subvert their profitability
Five basic rules
4 If the e-market is not big but has a very strong competitor inside Well you just make your own personal website
5 If you donlsquot clear about the market think about that who would be your first clear customers
e Business rules Five basic rules
Homework
bull Reading pp56-57
ldquoUsing the Netrdquo
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Slide 7
- Slide 8
- Slide 9
- Slide 10
- Slide 11
- Slide 12
- Slide 13
- Slide 14
- Slide 15
- Slide 16
- Slide 17
- Slide 18
- Slide 19
- Slide 20
- Slide 21
- Slide 22
- Slide 23
- Slide 24
- Slide 25
- Slide 26
- Slide 27
- Slide 28
- Slide 29
- Slide 30
- Slide 31
-
Business model
Why Did the ldquocomrdquo Companies Fail
bull Flawed business modelndash Companies view the technology as their business
rather than having a businessndash Lose money on individual transactions
bull Amazoncom loses almost $3 per order on multi-product orders
ndash Lack of control over supply of what they sellbull Pricelinecom
ndash All the good ideas duplicated by established concerns with deep pockets and staying power
e Business rules
Five rules need follow if you want to be profitable network business
1 If you are interested in a market and no competitors yet but the potential market volume is not significant Try to be the biggest e Business player
2 If you prefer enter a e-market and the overall market is large enough Then you make a quick enter and create your own advantage
3 If the e-market large enough but has a very strong competitor inside Then you use the model to subvert their profitability
Five basic rules
4 If the e-market is not big but has a very strong competitor inside Well you just make your own personal website
5 If you donlsquot clear about the market think about that who would be your first clear customers
e Business rules Five basic rules
Homework
bull Reading pp56-57
ldquoUsing the Netrdquo
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Slide 7
- Slide 8
- Slide 9
- Slide 10
- Slide 11
- Slide 12
- Slide 13
- Slide 14
- Slide 15
- Slide 16
- Slide 17
- Slide 18
- Slide 19
- Slide 20
- Slide 21
- Slide 22
- Slide 23
- Slide 24
- Slide 25
- Slide 26
- Slide 27
- Slide 28
- Slide 29
- Slide 30
- Slide 31
-
Why Did the ldquocomrdquo Companies Fail
bull Flawed business modelndash Companies view the technology as their business
rather than having a businessndash Lose money on individual transactions
bull Amazoncom loses almost $3 per order on multi-product orders
ndash Lack of control over supply of what they sellbull Pricelinecom
ndash All the good ideas duplicated by established concerns with deep pockets and staying power
e Business rules
Five rules need follow if you want to be profitable network business
1 If you are interested in a market and no competitors yet but the potential market volume is not significant Try to be the biggest e Business player
2 If you prefer enter a e-market and the overall market is large enough Then you make a quick enter and create your own advantage
3 If the e-market large enough but has a very strong competitor inside Then you use the model to subvert their profitability
Five basic rules
4 If the e-market is not big but has a very strong competitor inside Well you just make your own personal website
5 If you donlsquot clear about the market think about that who would be your first clear customers
e Business rules Five basic rules
Homework
bull Reading pp56-57
ldquoUsing the Netrdquo
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Slide 7
- Slide 8
- Slide 9
- Slide 10
- Slide 11
- Slide 12
- Slide 13
- Slide 14
- Slide 15
- Slide 16
- Slide 17
- Slide 18
- Slide 19
- Slide 20
- Slide 21
- Slide 22
- Slide 23
- Slide 24
- Slide 25
- Slide 26
- Slide 27
- Slide 28
- Slide 29
- Slide 30
- Slide 31
-
e Business rules
Five rules need follow if you want to be profitable network business
1 If you are interested in a market and no competitors yet but the potential market volume is not significant Try to be the biggest e Business player
2 If you prefer enter a e-market and the overall market is large enough Then you make a quick enter and create your own advantage
3 If the e-market large enough but has a very strong competitor inside Then you use the model to subvert their profitability
Five basic rules
4 If the e-market is not big but has a very strong competitor inside Well you just make your own personal website
5 If you donlsquot clear about the market think about that who would be your first clear customers
e Business rules Five basic rules
Homework
bull Reading pp56-57
ldquoUsing the Netrdquo
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Slide 7
- Slide 8
- Slide 9
- Slide 10
- Slide 11
- Slide 12
- Slide 13
- Slide 14
- Slide 15
- Slide 16
- Slide 17
- Slide 18
- Slide 19
- Slide 20
- Slide 21
- Slide 22
- Slide 23
- Slide 24
- Slide 25
- Slide 26
- Slide 27
- Slide 28
- Slide 29
- Slide 30
- Slide 31
-
4 If the e-market is not big but has a very strong competitor inside Well you just make your own personal website
5 If you donlsquot clear about the market think about that who would be your first clear customers
e Business rules Five basic rules
Homework
bull Reading pp56-57
ldquoUsing the Netrdquo
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Slide 7
- Slide 8
- Slide 9
- Slide 10
- Slide 11
- Slide 12
- Slide 13
- Slide 14
- Slide 15
- Slide 16
- Slide 17
- Slide 18
- Slide 19
- Slide 20
- Slide 21
- Slide 22
- Slide 23
- Slide 24
- Slide 25
- Slide 26
- Slide 27
- Slide 28
- Slide 29
- Slide 30
- Slide 31
-
Homework
bull Reading pp56-57
ldquoUsing the Netrdquo
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Slide 7
- Slide 8
- Slide 9
- Slide 10
- Slide 11
- Slide 12
- Slide 13
- Slide 14
- Slide 15
- Slide 16
- Slide 17
- Slide 18
- Slide 19
- Slide 20
- Slide 21
- Slide 22
- Slide 23
- Slide 24
- Slide 25
- Slide 26
- Slide 27
- Slide 28
- Slide 29
- Slide 30
- Slide 31
-