Chapter 10 Laudon Management Information System
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Publicado: 4 de febrero de 2013
Management Information Systems
Chapter 10 E-Commerce: Digital Markets, Digital Goods
10.1 Electronic Commerce and the Internet
Perhaps Internet is used to research the cost of products without actually purchasing a product or service online. Perhaps you emailed a company to get an answer to a question you had about a product after you purchased it at a regularbrick-and-mortar store. If you did any of these you are among the growing legions that rely on the Internet as a new way of conducting business and commerce. Or, maybe you compared prices between two businesses to get the best deal.
E-Commerce Today
The text provides useful statistics to demonstrate the solid growth in e-commerce. Many companies that failed during the “dot.com” bust did so because theydidn’t have solid business plans, not because e-commerce as a whole wasn’t a good idea.
The Internet has proved to be the perfect vehicle for e-commerce because of its open standards and structure. No other methodology or technology has proven for distributing information and bringing people together. It’s cheap and relatively easy to use it as a conduit for connecting customers, suppliers,and employees of a firm. No other mechanism has been created that allow organizations to reach out to anyone and everyone like the Internet.
The Internet allows big businesses to act like small ones and small businesses to act big. Web-based solutions must be easier to use and more convenient than traditional methods, not to mention competitors, if a company hopes to attract and keepcustomers.
Why E-commerce is Different
Ubiquity: 24/7 365 days a year, anytime, anywhere. New marketspaces change the balance of power from being business-centric to customer-centric. Transactions costs for both businesses and customers are reduced.
Global Reach: The Internet opens markets to new customers. If you live in New York City and desire for fresh Montana-grown beef, you can order itfrom a Web site and receive it the next day. You benefit from new markets previously not available.
Universal standards: One of the primary reasons e-commerce has grown so quickly and has become so wide-spread is due to the universal standards upon which the technology is built. Businesses don’t have to build proprietary hardware, software, or networks in order to reach customers thereby keepingmarket entry costs to a minimum. Customers can use the universally accepted Internet tools to find new products and services quickly and easily thereby keeping search costs to a minimum. It truly is a win-win situation for both sides.
Richness: The richness of information available to customers, coupled with information that merchants are able to collect about them, is opening up newopportunities for both businesses and consumers. Consumers can access more information than was previously available and businesses collect more information than they were previously able to. Now, instead of trying to gather information about businesses or consumers from multiple sources, both parties can use the Internet to cobble together more information than ever. And do it much easier and fasterthan ever before.
Interactivity: E-commerce originally presented simple, static Web sites to customers with limited possibilities of interactivity between the two. Now, most major retailers and even small shops, use a variety of ways to communicate with customers and create new relationships around the globe.
Information Density: While many people complain about having too much informationpouring from the Internet, it provides information density like no other medium. Consumers enjoy price transparency allowing them to comparison shop quickly and easily. Cost transparency is another benefit consumers enjoy that they’ve never had available as readily as what they can find on the Internet. On the other hand merchants gather much more information about customers and use it for price...
Chapter 10 E-Commerce: Digital Markets, Digital Goods
10.1 Electronic Commerce and the Internet
Perhaps Internet is used to research the cost of products without actually purchasing a product or service online. Perhaps you emailed a company to get an answer to a question you had about a product after you purchased it at a regularbrick-and-mortar store. If you did any of these you are among the growing legions that rely on the Internet as a new way of conducting business and commerce. Or, maybe you compared prices between two businesses to get the best deal.
E-Commerce Today
The text provides useful statistics to demonstrate the solid growth in e-commerce. Many companies that failed during the “dot.com” bust did so because theydidn’t have solid business plans, not because e-commerce as a whole wasn’t a good idea.
The Internet has proved to be the perfect vehicle for e-commerce because of its open standards and structure. No other methodology or technology has proven for distributing information and bringing people together. It’s cheap and relatively easy to use it as a conduit for connecting customers, suppliers,and employees of a firm. No other mechanism has been created that allow organizations to reach out to anyone and everyone like the Internet.
The Internet allows big businesses to act like small ones and small businesses to act big. Web-based solutions must be easier to use and more convenient than traditional methods, not to mention competitors, if a company hopes to attract and keepcustomers.
Why E-commerce is Different
Ubiquity: 24/7 365 days a year, anytime, anywhere. New marketspaces change the balance of power from being business-centric to customer-centric. Transactions costs for both businesses and customers are reduced.
Global Reach: The Internet opens markets to new customers. If you live in New York City and desire for fresh Montana-grown beef, you can order itfrom a Web site and receive it the next day. You benefit from new markets previously not available.
Universal standards: One of the primary reasons e-commerce has grown so quickly and has become so wide-spread is due to the universal standards upon which the technology is built. Businesses don’t have to build proprietary hardware, software, or networks in order to reach customers thereby keepingmarket entry costs to a minimum. Customers can use the universally accepted Internet tools to find new products and services quickly and easily thereby keeping search costs to a minimum. It truly is a win-win situation for both sides.
Richness: The richness of information available to customers, coupled with information that merchants are able to collect about them, is opening up newopportunities for both businesses and consumers. Consumers can access more information than was previously available and businesses collect more information than they were previously able to. Now, instead of trying to gather information about businesses or consumers from multiple sources, both parties can use the Internet to cobble together more information than ever. And do it much easier and fasterthan ever before.
Interactivity: E-commerce originally presented simple, static Web sites to customers with limited possibilities of interactivity between the two. Now, most major retailers and even small shops, use a variety of ways to communicate with customers and create new relationships around the globe.
Information Density: While many people complain about having too much informationpouring from the Internet, it provides information density like no other medium. Consumers enjoy price transparency allowing them to comparison shop quickly and easily. Cost transparency is another benefit consumers enjoy that they’ve never had available as readily as what they can find on the Internet. On the other hand merchants gather much more information about customers and use it for price...
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