Please enable JavaScript.
Coggle requires JavaScript to display documents.
Lecture 4: E-business and commerce (E-commerce (Types of e-commerce (○…
Lecture 4: E-business and commerce
E-commerce
Types of e-commerce
○ Customer to customer (C2C)
E.g eBay where customer can be a seller as well, company acts as platform to mediate sales
○ Business to customer (B2C)
E.g Takealot where you buy a good from a business
○ Business to business (B2B)
Two businesses having to buy goods or services from each other in order to operate; e.g a building company buying cement from a cement company
Government to business (G2B)
Government to citizens (G2C)
e.g Eskom website where you can request your bill online
•Any transaction completed over a computer mediated network that involves the transfer of ownership or rights to use goods or services
e.g Online shopping sites (Takealot)
Competitive advantages of e-commerce:
•offers personalised products/services
•reduces lead time
•reduces overall cost for seller and customers
•expands to global marketplace
•improves utilisation of resources throughout the supply chain
Basic e-commerce strategies
•Competing on reach
- access and connection to customers
Competing on richness
- depth and detail of information to/from customers
Competing on affiliation
- advancing customers interests; is the company focused on this or are they just focused on maximising profits?
What drives the use of different IS?
•Perceived
usefulness
and
ease of use
•Perceived utilitarian value
•Perceived hedonic value
There are various factors that can influence usage. it is a
dependent variable
Hedonic vs. Utilitarian IS
Utilitarian
typically used in work or education environments for work related tasks
usage is driven by its
usefulness
e.g:
how it helps improve the quality of work, helps accomplish tasks at a faster rate, increases productivity and job performance
•these systems provide instrumental value to users by improving productivity and task performance
Hedonic
typically used in homes and leisure settings for fun and breaks
•focused on fun, playfulness, enjoyment and social interaction
hedonic IS should be easy to use, learn and navigate
an IS that combines hedonic and utilitarian benefits is known as a
hybrid information system
E-business
•Any business process that is conducted over a computer mediated network
Used in:
•
Production
- procurement, ordering stock, payment processing
•
Customer focused
- marketing, selling, customer order processing
•
Internal or management focused
- employee service, training
Potential benefits of e-business:
•higher productivity
•improved accessibility and convenience
•stronger competitive position
•shorter lead time (time between a process starting and it finishing)
Risks of using IS:
•
financial risk:
the potential for financial through fraud or ransomware for example
•
product performance risk:
the possibility of a product failing to deliver desired performance e.g quality isn't as high as advertised on website
•
privacy risk:
the risk of websites gathering data about you through cookies etc.
•psychological
•physical
NB
look at how different systems function as information systems e.g social media as an IS