Introduction to e business & e-commerce

Dave Chaffey, E-Business and E-Commerce Management, 4th
Edition, © Marketing Insights Limited 2009
Slide 1.1
Introduction to e-business and
e-commerce

Slide 1.2
Learning outcomes
• Define the meaning and scope of e-business
and e-commerce and their different elements
• Summarize the main reasons for adoption of
e-commerce and e-business and barriers that
may restrict adoption
• Outline the ongoing business challenges of
managing e-business and e-commerce in an
organization.

Slide 1.3
Management issues
• How do we explain the scope and implications
of e-business and e-commerce to staff?
• What is the full range of benefits of
introducing e-business and what are the
risks?
• How do we evaluate our current e-business
capabilities?

Slide 1.4
Figure 1.1 Google circa 1998
Source: Wayback machine archive: http://web.archive.org/web/19981111183552/google.stanford.edu

Slide 1.5
E-business innovation and
opportunity
• Since Google was launched in 1998 which
e-business startups have transformed the way
we work, live and play?
• How has Google innovated in search and its
business table?
• See Table 1.1 for some of major innovators

Slide 1.6
The impact of the Internet on
business
• Andy Grove, Chairman of Intel, one of the
early adopters of e-commerce, has made a
meteorological analogy with the Internet. He
says:
Is the Internet a typhoon force, a ten times
force, or is it a bit of wind? Or is it a force that
fundamentally alters our business? (Grove,
1996)

Slide 1.7
E-business opportunities
• Reach
– Over 1 billion users globally
– Connect to millions of products
• Richness
– Detailed product information on 20 billion +
pages indexed by Google. Blogs, videos,
feeds…
– Personalized messages for users
• Affiliation
– Partnerships are key in the networked
economy

Slide 1.8
Internet risks – what can go wrong
with a transactional site?
•
•
•
•
•
•

Slide 1.9
What is e-commerce and e-business?
• You are attending a role in the
e-business team of a global bank
• You anticipate you may be asked the
distinction between e-commerce and
e-business.
• Write down a definition for each
• E-commerce:
–
• E-business:
–

Slide 1.10
Figure 1.2 The distinction between buy-side and sell-side e-commerce

Slide 1.11
Figure 1.3 Three definitions of the relationship between e-commerce and e-business

Slide 1.12
Figure 1.4 The relationship between intranets, extranets and the Internet

Slide 1.13
Figure 1.5 First Direct Interactive (www.firstdirect.com)

Slide 1.14
Figure 1.6 Blendtec viral campaign micro-site (www.willitblend.com)

Slide 1.15
Figure 1.7 Evolution of web technologies
Source: Adapted from Spivack (2007)

Slide 1.16
Figure 1.8 Summary and examples of transaction alternatives between businesses,
consumers and governmental organizations

Slide 1.17
Figure 1.9 Betfair peer-to-peer gambling exchange

Slide 1.18
Additional activity – drivers and
barriers to adoption
• You are in a team of advisers at a local
business link (a local government agency
encouraging adoption of e-commerce)
• List
– Drivers to adoption of sell-side e-commerce by
business and how you can reinforce these by
marketing benefits
– Barriers to adoption of sell-side e-commerce
by business and how you can reinforce these
by stressing benefits

Slide 1.19
Cost/efficiency and competitiveness
drivers
• Cost/efficiency drivers
– Increasing speed with which supplies can be
obtained
– Increasing speed with which goods can be
dispatched
– Reduced sales and purchasing costs
– Reduced operating costs
• Competitiveness drivers
– Customer demand
– Improving the range and quality of services offered
– Avoid losing market share to businesses already
using e-commerce

Slide 1.20
Figure 1.10 Usage of different e-business services in European countries
Source: European Commission, 2008

Slide 1.21
Figure 1.11 North West Supplies Ltd site (www.northwestsupplies.co.uk)
Source: Opportunity Wales

Slide 1.22
Figure 1.12 Barriers to development of online technologies
Source: DTI (2002)

Slide 1.23
Figure 1.13 A simple stage model for buy-side and sell-side e-commerce

Slide 1.24
Drivers of consumer adoption
Driver Marketing approach
1
2
3
4
5
6

Slide 1.25
Barriers to consumer adoption
Barrier Marketing approach
1
2
3
4
5
6

Slide 1.26
Figure 1.14 Variation in different online activities by gender
Source: UK National Statistics (2006) Individuals accessing the Internet – Report from the UK National Statistics Omnibus Survey. Published online at www.statistics.gov.uk

Introduction to e business & e-commerce

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