E-Business

1. E-Business • CANAN KESKİN • EMİNE TAŞKESEN • DERYA ERSÖZ • KÜBRA MACİT • MELİS DURMAZ

2. LEARNING OBJECTIVES • WHAT IS E-BUSINESS ? • WHAT IS COMMERCE ? • WHAT IS STRATEGY ? • MODELS OF E-BUSINESS • ADVANTAGES AND DISADVANTAGES • APPLICATIONS IN TURKEY AND WORLD

3. What is E-Business • E-business, or electronic business, systems use a number of information technology-based business practices to enhance relationships between the business and the customer. E-business includes changes in marketing communication, distribution systems, and business models.

4. Evolution of e-business • 1997: Introduction of a brand new phrase – e-business • 1999: The emphasis of e-business shifted from B2C to B2B • 2001: The emphasis shifted from B2B to B2E, c-commerce, e-government, e-learning, and m-commerce • 2004: Total online shopping and transactions in the United States between $3 to $7 trillion

5. Evolution of e-business • 2007: Business.com acquired by R.H. Donnelley for $345 million. • 2010: Groupon reportedly rejects a $6 billion offer from Google. Instead, the group buying websites went ahead with an IPO on 4 November 2011. It was the largest IPO since Google • 2012: US eCommerce and Online Retail holiday sales reach $33.8 billion, up 13 percent • 2014: India’s e-commerce industry is estimated to have grown more than 30% from a year earlier to $12.6 billion in 2013

6. Why E-Business • Lack of time at public or consumer • Flexibility in timings for payment • Easy delivery at door steps • Planning for payment • Safe transactions

7. E-commerce • E-commerce – Process of buying or selling goods or services across a telecommunications network

8. E-Business Industry Terms(1) • Internet: A global network of computer networks that use a common interface for communication. • World Wide Web: A graphically based Internet standard that allows easy access to information from around the world. • E-Business: This is the process of using information technology (IT) to support a fuller operation of a business.

9. E-Business Industry Terms(2) • E-Commerce: Uses electronic information based systems to engage in transactions or commerce online. • Extranet: An Internet based connection between a business and its suppliers, distributors, and partners. This is not open to the general public. • Intranets: Internal private network that use the same types of hardware, software, and connections as the Internet.

10. The Traditional Business System Distribution Flow Product Target Customers Communication Price Information Flow Payment Flow

11. E-Business Systems E-Business Systems are fostering a number of changes to the marketing system: • Customized production. • Increasing price pressure resulting in lowering prices. • Shorter channels of distribution dominated by facilitators. • Extranet-enhanced supply chain management. • Non-linear promotions. • Electronic transfer of funds. • Database information management systems.

12. E-Business Systems Shorter Channels Dominated by Facilitators Customized Production Customized Non-Linear Promotion Market-of-One Customer Dynamic Pricing Knowledge Management & Data Warehousing Electronic Payments

13. E-business Strategy

14. Strategy: • Definition of the future direction and actions of a company defined as approaches to achieve specific objectives.

15. E-businessstrategy and planning includes the following: • E-risk management • Web site technology, applications, infrastructure, security, resources and budget. • Web site content - Information architecture, customer experience, design, branding and marketing. • Marketing planning and budgeting. • E-Commerce planning

16. Figure1.A generic strategy process model

17. Figure 2.Elements of strategic situation analysis for the e-business

18. Figure 3.Elements of strategic objective setting for the e-business

19. Figure 4.Elements of strategy definition for the e-business

20. Figure 5:Elements of strategy implementation for the e-business

21. Why is an e-business strategy important? • While e-business can help you increase your visibility, profits and competitive advantage, it is much more than just a website. Before jumping headfirst, it is important to understand the basics, recent models and applications that can help you grow your business.

22. What happens where there is no e-businessstrategy

23. Missed opportunities for additional sales on thesell-side and more efficient purchasing on thebuy-side • Fall-behind competitors in delivering online services – may become difficult to catch-up. • Poor customer experience from poorly integrated channels.

24. E-Business Models • Business models • How a company conducts business in order to generate revenue • Widespread access to the Internet and Web allows companies to adapt old models and create new ones • E -business model is an approach to conducting electronic business on the Internet.E-business transactions take place between two major entities—businessesand consumers. • E-business models are often categorized by type of customer

25. Majorthee-business models: • Business-to-business • Business-to-consumer • Consumer-to-consumer • Consumer-to-business

26. TYPES OF E-BUSINESS:

27. Business-to-Business (B2B) • Business-to-business (B2B) applies to businesses buying from and selling to eachother over the Internet. Online access to data, including expected shipping date,delivery date, and shipping status, provided either by the seller or a third-party provideris widely supported by B2B models. Electronic marketplaces represent anewwave in B2B e-business models.

28. Business-to-Business (B2B) Business Model • “B2B” is business-to- business commerce conducted over the Internet(called B2B e-commerce space, or e-marketplaces)

29. Electronic marketplaces, or e -marketplaces , areinteractive business communities providing a central market where multiple buyersand sellers can engage in e-business activities . They presentstructures for conducting commercial exchange, consolidating supply chains, andcreating new sales channels. Their primary goal is to increase market efficiency bytightening and automating the relationship between buyers and sellers. Existinge-marketplaces allow access to various mechanisms in which to buy and sell almostanything, from services to direct materials.

30. B2B Applications • Advertising • Auctioning • Procurement • Channel management • E-commerce

31. www.Alibaba.com • www.kobionline.com • www.tradeturkey.com

32. Business-to-Consumer (B2C) • Business-to-consumer (B2C) applies to any business that sells its products or services to consumers over the Internet. The business-to-consumer, or B2C, model of e-business sells products directly to retail consumers online.. The e-business has only an online identity through which it offers a range of products to customers. Most B2C models generate revenue from direct sales and processing fees. B2C also is known as electronic retail or e-tail.

33. B2C Applications • Electronic storefront • Electronic malls • Advertising online • Service online • selling books, toys, computers • e-banking (cyber banking) • online stock trading • online job market, travel, real estate

35. Consumer-to-Business (C2B) • Consumer-to-business (C2B) applies to any consumer that sells a product or service to a business over the Internet. One example of this e-business model is Priceline.com where bidders (or customers) set their prices for items such as airline tickets or hotel rooms, and a seller decides whether to supply them. The demandfor C2B e-business will increase over the next few years due to customer’s desire for greater convenience and lower prices.

36. C2B model, also called a reverse auction or demand collection model, enables buyers to name their own price often binding, for a specific good or service generating demand. The website collects the demand bids and then offers the bids to the participating sellers.

37. C2B Application • For example, when a consumer writes reviews, or when a consumers gives a useful idea for new product development, then this individual is creating value to the firm, if the firm adopts the input. Excepted concepts are crowd sourcing and co-creation. • Another form of C2B is the electronic commerce business model, in which consumers can offer products and services to companies and the companies pay them. We can see this example in blogs or internet forumswhere the author offers a link back to an online business facilitating the purchase of some product (like a book on Amazon.com), and the author might receive affiliate revenue from a successful sale.

39. Consumer-to-Consumer (C2C) • Consumer-to-consumer (C2C) applies to sites primarily offering goods and servicesto assist consumers interacting with each other over the Internet. auctions.C2C online communities, orvirtualcommunities, interactvia e-mail groups,Web-based discussion forums. C2C business models are consumerdrivenand opportunities are available to satisfy most consumers’ needs, rangingfrom finding a mortgage to job hunting. They are global swap shops based oncustomer-centered communication.

40. C2C Application eBay, theInternet’s most successful C2C online auction Web site, links like-minded buyersand sellers for a small commission • Gittigidiyor.com

41. ADVANTAGES

42. 1. Youcan be Your Own Boss • Have full control over what you sell • Charge the amount you want for your products and/or services • Keep 100% of the profits

43. 2. No need to Rent a Building for a Store or Hire Sales Staff

44. 3. You can Operate Your Online BusinessIn the Comfort of Your Own Home Youdon’t have to worry about the long commute to work.

45. 4. You can Sell Directly From Your Website • Your customers can order your products directly from your website and you can ship them to your customers from one central location.

46. 5. You can Reach a Larger Target Audience • You are not restricted to selling to consumers located in your neighbourhood or local region. Your consumers can be located all around the world.

47. 6. YOU DO NOT NEED A LOT OF MONEY • Internet business are fast, cheap and easy to set up. • Reduced cost.

48. 7. You do not Need a LargeAdvertising Budget • You can promote your online business for FREE very easily by producing a video, submitting articles to article directories, interacting with other users on social networks, and creating slideshow presentations.

49. Advantages (count.) • Widen the availability of information • Closer relationship • Enhance work integration up to the world level • Free samples. • Media breaks. • Time to market. • Customer loyalty. • Save time, movement, space and papers.

50. DISADVANTAGES