Chapter 1 – Introduction to Ebusiness
Cloud computing: applications being hosted on the internet rather than on an
enterprise’s own computer systems
SaaS: Software as a Service = software that is provided for rent to businesses over
Ebusiness: strategic use of technology, particularly the internet to integrate and
streamline the business processes enterprise applications and organizational
structure of a business to create a high performance business model.
Electronic Data Interchange (EDI) : structured way of creating forms that can be
transmitted between trading partners to execute business transactions without the
need to generate any paper.
Integrated Systems: Info Systems that are joined together in such a way that they
can easily share data with each other
Foundations of Ebusiness:
Ebusiness Models: how the business is going to make money: Speed, convenience,
customization, redefinition of product value, media flexibility
Ebusiness Strategy: how it plans to achieve the business objectives within the
desired business model.
The Structure of Ebusiness:
CRM: set of strategies, technolgoies and processes that enable a business to
continuously improve offerings to customers
Eprocurement: complete business process of acquiring goods and services through
electronic means, from requisition to fulfillment and payment
Intranet: Networks within a company
Extranet: networks outside the company
Tools for System Integration
Internet, World Wide Web, ERP, SCM, CRM, eprocurment
Business Intellligence: allows business to capture, analyze, interpret and report on
data across an enterprise.
The Domains of Ebusiness: B2C, B2B, G2B, B2G
The Benefits of Ebusiness:
Increasing sales, reducing costs, improving customer service, responding to
competitive pressure, expanding market research
Internet Service Providers (ISP): company that offers internet access and related
services to individuals and businesses for a fee through telephone lines, cable,
satellite or wireless technology.
The Challenges of Ebusiness:
Privacy and Security, Security and Payment Systems
Encryption: Use of a mathematical formula that is applied to electronic data to
render it illegible to anyone without the decoding key. Chapter 2: Internet Business Models and Strategy
Business Model: Manner in which a business organizes itself to achieve its
objectives ie. generation of profits
Internet Business Model: using the internet to support, amplify, or develop a B.M.
Business Strategy: sum of all choices made to offer unique value to its customers
Components of business model:
External Forces: Technicological developments, legal forces, politics, etc.
Markets/customers: B2B, B2C, B2E, reverse auctions, etc.
Core business processes: Bricks to clicks
Core products and services/revenue models: 11 models. See below.
Alliances: partnerships to leverage resources and create competitive advantage
Resource Management processes: acquisition, development and allocation
Core Products and Services/Revenue Models components:
Merchant model: wholesailers or retailers of goods and services
Direct sales by manufacturer model: Nike selling to customers directly + shops
Manufacturer service model: use the web for customer service for their products
Subscription model: Ex. Netflix
Utility model: Pay as you go ex. Skype
Infomediary model: sites that build on information b