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10/3/2010 Neeraj Sharma@GJIMT 1


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How has Internet technology changed value


propositions and business models?

What is electronic commerce? How has


electronic commerce changed consumer
retailing and business-to-business
transactions?

What are the principal payment systems for


electronic commerce?

10/3/2010 Neeraj Sharma@GJIMT 2


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How can Internet technology support


management and coordination of internal
business processes and supply chain
management?

What are the major managerial and


organizational challenges posed by electronic
business and electronic commerce?

10/3/2010 Neeraj Sharma@GJIMT 3


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Emerging digital firm

Electronic commerce

Electronic business

Challenges and opportunities

10/3/2010 Neeraj Sharma@GJIMT 4


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1. Digitally enabling the enterprise requires a


new mind set

2. Finding a successful Internet business


model

10/3/2010 Neeraj Sharma@GJIMT 5


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Information technology infrastructure:


Provides a universal and easy-to-use set of
technologies and technology standards that
can be adopted by all organizations

Direct communication between trading


partners: Disintermediation removes
intermediate layers, streamlines process

10/3/2010 Neeraj Sharma@GJIMT 6


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Round-the-clock service: Web sites


available to consumers 24 hours a day

Extended distribution channels:


Outlets created for attracting customers who
otherwise would not patronize

Reduced transaction costs: Costs of


searching for buyers, sellers, etc. reduced

10/3/2010 Neeraj Sharma@GJIMT 7


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Business Model:
Defines an enterprise

Describes how the enterprise delivers a


product or service

Shows how the enterprise creates wealth

10/3/2010 Neeraj Sharma@GJIMT 8


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Information asymmetry: One party in a


transaction has more information than the
other

Increases richness: Depth and detail of


information

Increases reach: Number of people


contacted

10/3/2010 Neeraj Sharma@GJIMT 9


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10/3/2010 Neeraj Sharma@GJIMT 23


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10/3/2010 Neeraj Sharma@GJIMT 27