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Chapter 1
Introduction to e-business and e-commerce
OHT 1.2
Learning objectives
Define the meaning and scope of e-business and
e-commerce and their different elements;
Summarise the main reasons for adoption of
e-commerce and e-business and barriers that may
restrict adoption;
Use resources to define the extent of adoption of the
Internet as a communications medium for consumers
and businesses;
Outline the business challenges of introducing ebusiness and e-commerce to an organization.
Marketing Insights Limited 2004
OHT 1.3
OHT 1.4
OHT 1.5
May 1995
Dec. 2002
6,000
50
14,000
5 million
100
million
300,000
28 million
100,000
50 million
1.5 million
Table 1.1 7.5 years of web banking. Source: Online banking report, Number 89, December 10, 2002.
Source: Online Banking Report estimates, +/- 25%, 11/02
Marketing Insights Limited 2004
OHT 1.6
UK adults online?
31%
41%
51%
61%
16-24 year olds online?
50%
60%
80%
90%
Percentage bought groceries online?
6%
16%
26%
36%
Statistics.gov.uk
Source: www.statistics.gov.uk Oct 2002
Marketing Insights Limited 2004
OHT 1.7
OHT 1.8
OHT 1.9
Definitions
You are asked to distinguish between ecommerce and e-business at a job interview.
Write down your definitions.
Use examples to illustrate your points.
OHT 1.10
E-commerce defined
All electronically mediated information exchanges
between an organization and its external
stakeholders
Examples:
Buying books online (transactional)
Selecting a car online (informational)
Interacting with brand online (relationship building /
experiential, e.g. www.tango.com)
Asking a customer service query, e.g.
www.easyJet.com
Marketing Insights Limited 2004
OHT 1.11
E-business defined
All electronically mediated information exchanges,
both within an organization and with external
stakeholders supporting the range of business
processes
Examples:
Purchasing from suppliers (e-procurement)
A company intranet
Supplying partners with information through an
extranet
Marketing Insights Limited 2004
OHT 1.12
Driver
Marketing approach
1 Reduced costs
3 Customer demand
4 Competitive threats
Ditto
OHT 1.13
Barrier
Marketing approach
1 Security
Reassurance
2 No need
3 Costs
4 Skills
6
Marketing Insights Limited 2004
OHT 1.14
OHT 1.15
Barriers to e-commerce
OHT 1.16
Answer the 7 Ss