Chapter 9 E Commerce Digital Markets Digital Goods 9 1 2007 by Prentice Hall Essentials of Business Information Systems Chapter 9 E Commerce Digital Markets Digital Goods STUDENT OBJECTIVES Describe the unique features of e commerce digital markets and digital goods Analyze how Internet technology has changed value propositions and business models Describe the various types of e commerce and how e commerce has changed consumer retailing and business to business transactions 9 2 2007 by Prentice Hall Essentials of Business Information Systems Chapter 9 E Commerce Digital Markets Digital Goods STUDENT OBJECTIVES Evaluate the role of m commerce digital markets and digital goods Compare the principal payment systems for electronic commerce 9 3 2007 by Prentice Hall Essentials of Business Information Systems Chapter 9 E Commerce Digital Markets Digital Goods Gap Remodels Its Web Sites Problem Multiple competitors unwieldy Web site Solutions Set up Web sales channel and rebuild Web site using custom software to provide seamless Web shopping experience New Web site running on custom built proprietary software increases sales and adds flexibility Demonstrates IT s role in gaining an advantage in a competitive industry Illustrates digital technology as a major factor in modern commerce 9 4 2007 by Prentice Hall Essentials of Business Information Systems Chapter 9 E Commerce Digital Markets Digital Goods Gap Remodels Its Web Sites Interactive Session Gap What experiences have you had with shopping online Describe a good experience What did you like about the online store you used Describe a bad experience What problems did you have with the online store What features make an online store more appealing Less appealing 9 5 2007 by Prentice Hall Essentials of Business Information Systems Chapter 9 E Commerce Digital Markets Digital Goods Electronic Commerce and the Internet E Commerce Today E commerce the use of the Internet and Web to transact business digitally enabled transactions Began in 1995 and grew exponentially still growing at an annual rate of 25 percent Companies that survived the dot com bubble burst and now thrive The e commerce revolution is still in its early stages 9 6 2007 by Prentice Hall Essentials of Business Information Systems Chapter 9 E Commerce Digital Markets Digital Goods Electronic Commerce and the Internet The Growth of E Commerce Retail e commerce revenues have grown exponentially since 1995 and have only recently slowed to a very rapid 25 percent annual increase which is projected to remain the same until 2008 9 7 Figure 9 1 2007 by Prentice Hall Essentials of Business Information Systems Chapter 9 E Commerce Digital Markets Digital Goods Electronic Commerce and the Internet Why E commerce Is Different Ubiquity market space transaction costs Global reach Universal standards market entry costs search costs Richness Interactivity Information density price transparency cost transparency price discrimination Personalization Customization 9 8 2007 by Prentice Hall Essentials of Business Information Systems Chapter 9 E Commerce Digital Markets Digital Goods Electronic Commerce and the Internet Web Site Personalization Firms can create unique personalized Web pages that display content or ads for products or services of special interest to individual users improving the customer experience and creating additional value 9 9 Figure 9 4 2007 by Prentice Hall Essentials of Business Information Systems Chapter 9 E Commerce Digital Markets Digital Goods Electronic Commerce and the Internet Key Concepts in E commerce Digital Markets and Digital Goods Information symmetry Menu costs Dynamic pricing Disintermediation 9 10 2007 by Prentice Hall Essentials of Business Information Systems Chapter 9 E Commerce Digital Markets Digital Goods Electronic Commerce and the Internet Key Concepts in E commerce Digital Markets and Digital Goods Digital goods delivered over a digital network Internet business models pure play clicks andmortar Communication and community banner ads popup ads social networking sites Digital content entertainment and services podcasting syndicators 9 11 2007 by Prentice Hall Essentials of Business Information Systems Chapter 9 E Commerce Digital Markets Digital Goods Electronic Commerce Categories of Electronic Commerce Business to consumer B2C Business to business B2B Consumer to consumer C2C Mobile commerce m commerce 9 12 2007 by Prentice Hall Essentials of Business Information Systems Chapter 9 E Commerce Digital Markets Digital Goods Electronic Commerce Achieving Customer Intimacy Interactive Marketing Personalization and Self Service Interactive marketing and personalization Clickstream tracking Collaborative filtering Blogs Customer self service 9 13 2007 by Prentice Hall Essentials of Business Information Systems Chapter 9 E Commerce Digital Markets Digital Goods Electronic Commerce Stonyfield Farm Blogs for Organic Communication Read the Focus on People and then discuss the following questions What are Stonyfield Farm s business model and business strategy What challenges and problems does the company face How do blogs help the company solve these problems and compete in the industry How successful is this solution Explain your answer 9 14 2007 by Prentice Hall Essentials of Business Information Systems Chapter 9 E Commerce Digital Markets Digital Goods Electronic Commerce Business to Business Electronic Commerce New Efficiencies and Relationships Electronic data interchange EDI Procurement E procurement Private industrial networks Private exchanges Net marketplaces Exchanges 9 15 2007 by Prentice Hall Essentials of Business Information Systems Chapter 9 E Commerce Digital Markets Digital Goods Electronic Commerce Electronic Data Interchange EDI Companies use EDI to automate transactions for B2B e commerce and continuous inventory replenishment Suppliers can automatically send data about shipments to purchasing firms The purchasing firms can use EDI to provide production and inventory requirements and payment data to suppliers 9 16 Figure 9 5 2007 by Prentice Hall Essentials of Business Information Systems Chapter 9 E Commerce Digital Markets Digital Goods M Commerce M Commerce Services and Applications Mobile bill payment Content and products Banking and financial services Wireless advertising Location based services Games and entertainment 9 17 2007 by Prentice Hall Essentials of Business Information Systems Chapter 9 E Commerce Digital Markets