ISYS104 Lecture Notes - Lecture 8: Virtual Community, Social Capital, Adwords
31 May 2018
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Chapter 8- Digital Commerce and Web 2.0
Q1: What Types of Inter-organisational Systems Exist?
- Four types of inter-organisational systems in use today:
▪ Pre-internet systems: Communicate via postal mail, telephone and fax; one-way, from
the vendor to the customer
▪ E-commerce: Digital commerce—buying and selling of goods and services over public
and private computer networks
▪ Web 2.0: Increased capabilities of browsers and browser extensions enabled thin-client
applications and new business models
▪ Enterprise 2.0: Application of technologies to facilitate cooperative work
Q2: How Do Companies Participate in Digital Commerce?
- Digital commerce is the buying and selling of goods and services over public and private
computer networks
- Restricted to buying and selling
- Does not include info retrieval without a fee
- May involve direct buying and selling to customers or brokers who sell on behalf of
companies
Digital Commerce Companies
- Three main types:
▪ Business-to-consumer (B2C): Sales between a supplier and a retail customer
- Involves a web storefront: Customer enters storefront and manages their order
▪ Business-to-business (B2B): Sales between companies
▪ Business-to-government (B2G): Sales between government agencies and businesses
Digital Commerce Brokers
▪ Auctions
- Digital commerce version of a standard auction: e.g eBay
▪ Clearinghouses
- Provide goods and services at stated price, arrange for delivery, but do not own them:
e.g Amazon.com
▪ Electronic exchange
- Matches buyers and sellers like a stock exchange: e.g Webjet & iSelect
Q3: How Does Digital Commerce Improve Market Efficiency?
▪ Disintermediation
- Elimination of middle layers in supply chain
▪ Improved info on prices and terms
- Customer can compare prices on several websites
▪ Price elasticity
- Suppliers can determine amount of change in demand against changes in price
find more resources at oneclass.com
find more resources at oneclass.com
Document Summary
Digital commerce is the buying and selling of goods and services over public and private computer networks. Does not include info retrieval without a fee. May involve direct buying and selling to customers or brokers who sell on behalf of companies. Three main types: business-to-consumer (b2c): sales between a supplier and a retail customer. Involves a web storefront: customer enters storefront and manages their order: business-to-business (b2b): sales between companies, business-to-government (b2g): sales between government agencies and businesses. Digital commerce version of a standard auction: e. g ebay: clearinghouses. Provide goods and services at stated price, arrange for delivery, but do not own them: e. g amazon. com: electronic exchange. Matches buyers and sellers like a stock exchange: e. g webjet & iselect. Q3: how does digital commerce improve market efficiency: disintermediation. Elimination of middle layers in supply chain. Customer can compare prices on several websites: price elasticity. Suppliers can determine amount of change in demand against changes in price.
