E-Commerce and Digital Business

Study Notes

E-Commerce is the use of the Internet, Web, and mobile apps and browsers to transact business
It involves digitally enabled commercial transactions between and among organizations and individuals

E-Business: the digital enabling of transactions and processes within a firm, involving information systems under the control of the firm
Mobile Platform: a platform that provides the ability to access the Internet from a variety of mobile devices such as smartphones and tablets
Personalization: targeting of marketing messages to specific individuals by adjusting the message to a person’s name, interests, and past purchases
Customization: changing the delivered product or service based on a user’s preferences or prior behavior

Business-to-Consumer (B2C) E-Commerce: online businesses selling to individual consumers
Business-to-Business (B2B) E-Commerce: online businesses selling to other businesses
Consumer-to-Consumer (C2C) E-Commerce: consumers selling to other consumers
Mobile E-Commerce (m-Commerce): use of mobile devices to enable online transactions
Social E-Commerce: E-Commerce enabled by social networks and online social relationships
Local E-Commerce: E-commerce that is focused on engaging the consumer based on his or her current geographic location

Disintermediation: displacement of market middlemen who traditionally are intermediaries between producers and consumers by a new direct relationship between producers and consumers
Friction-Free Commerce: a vision of commerce in which information is equally distributed, transaction costs are low, prices can be dynamically adjusted to reflect actual demand, intermediaries decline, and unfair competitive advantages are eliminated

Web 2.0: a set of applications and technologies that enable user-generated content
Business Model: a set of planned activities designed to result in a profit in a marketplace
E-Commerce Business Model: a business model that aims to use and leverage the unique qualities of the Internet, the Web, and the mobile platform
Value Proposition: defines how a company’s product or service fulfills the needs of customers
Revenue Model: describes how the firm will earn revenue, generate profits, and produce a superior return on invested capital

Advertising Revenue Model: a company provides a forum for advertisements and receives fees from advertisers
Subscription Revenue Model: a company offers its users content or services and charges a subscription fee for access to some or all of its offerings
Freemium Strategy: companies give away a certain level of product or services for free, but then charge a subscription fee for premium levels of the product or service
Transaction Fee Revenue Model: a company receives a fee for enabling or executing a transaction
Sales Revenue Model: a company derives revenue by selling goods, information, or services