CHAPTER 14: E-BUSINESS

·         An E-business model is a plan that details how a company creates, delivers, and generates revenue on the internet

·         Categories E-business models:

E-business term	Definition
Business-to- business (B2B)	Applies to business buying from and selling to each other over the Internet
Business-to-consumer (B2C)	Applies to any business that sells its products or services to consumers over the Internet   -emalls   :   a number  of eshops   -eshops  :   version of retail store where customer can shop at any                       hour of the day without leaving their homes or offices   -online auction
Consumer-to-business(C2B)	Applies to any customer that sells a product or service to a business over the Internet
Consumer-to-consumer (C2C)	Applies to sites primarily offering goods and services to assists consumers interacting with each other over the Internet

·         6 E-business tools

o   Email

o   Instant messaging

§  Real-time communication occurs when a system updates information at the same rate it receives it

§  Instant messaging is a service that enables instant or real-time communication between people

o   Podcasting

§  Podcasting converts an audio broadcast to a digital music player

o   Videoconferencing

§  Videoconferencing allows people at two or more locations to interact via two-way video and audio transmission simultaneously as well as share documents, data, computer displays, and whiteboards

o   Web conferencing

§  Web conferencing or webinar is blends videoconferencing with a document sharing and allows the user to deliver a presentation over the web to a group of geographically dispersed participants

                  o   Content management system

§  Helps companies manage the creation, storage, editing, and publications of their website context

§  Taxonomy is the scientific classification of organism into groups based on similarities of structure or origin

§  Information architecture is the set of ideas about how all information in a given context should be organized

·         E-business benefits:

E-business benefits
Highly accessible	-businesses can operate 24 hours a day, 7 days a week, 365 days a year
Increased customer loyalty	-additional channels to contact, respond to, and access customers helps contribute to customer loyalty
Reduce cost	-the cost of conducting business on the Internet is substantially less than traditional forms of business communication
Improved information content	- electronic catalogs and web pages present customers with updated information in real time about goods, services and prices
Increased convenience	-Ebusiness automates and improves many of the activities that make up a buying

·         The challenges of E-business:

o   Identifying limited market segments

o   Managing consumer trust

o   Ensuring consumer protection

o   Adhering to taxation rules