Mastering E-business
Summary
,Chapter 1
E-business: specific kinds of business activities performed by one or
more organizations with the use of information technology.
Criteria:
• the activities must be core activities
• the use of technology must be essential for the what the activities are
performed. If efficiency or effectiveness are only improved, it’s IT-
support; not e-business.
• information must be both transformed and transported digitally
Scope of activities: determines whether activities are executed entirely
within the boundaries of a single organization or across the boundaries of
organizations (= inter-organizational).
Inter-organizational e-business has greater consequences that intra-
organizational
Dynamism of relations: determines how dynamic the relations are
between organizations that engage in e-business activities together.
E-business scenario: a setting in which two or more parties engage in e-
business to achieve a specific business goal (possibly more than just one).
Before the internet:
• dedicated digital communication channels: created for specific business
activities between pairs of business partners
• low-volume e-business relied on using existing phone lines and modems
to connect computers
• usually expensive and time-consuming to set up and maintain
• channels only supported long-term, stable business collaborations
The rise of the internet:
• ARPANET: established as research network, linking a few research
institutions
• late 1980s: Internet for global network based on TCP/IP.
• ubiquitous and inexpensive infrastructure became available for business
transactions
• HTML as standard web markup language and Mosaic: first web browser
1993
• these two together enabled world wide web
The e-commerce hype: number of e-business companies grew
exponentially
E-commerce: electronic business is e-business in which objects are
explicitly traded between participating parties.
1
, E-commerce is e-business, but not the other way around
Mobile business: e-business is restricted to m-business if we only use
wireless channels
M-commerce: m-business if it is about explicit trading of objects
Technology push vs requirements pull
Example: the web was not developed because business has demanded
this, but the mere existence of the web has pushed business into new
directions.
2
,Chapter 2
Structure of the classification space
• Parties in e-business: contains the options for the combination of parties
that perform the e-business activities
• Objects of e-business: contains the options for the type of object that is
primarily manipulated by e-business activities in a scenario
• Time scopes of e-business: used to classify e-business scenarios with
respect to the duration of relationships between e-business parties.
These dimensions are in principle mutually independent.
Parties in e-business
• Business party: any commercial organization
• Consumer party: individual acting as a private person (not as a business)
• Government party: (a part of) a government organization or a related
non-profit organization
B2B: from an economic perspective, B2B is by far the most important form
of e-business in the party dimension. Examples of scenarios are:
• supply chains
• industry-level market places
• complex logistic scenarios
• inter-bank financial traffic
Most importantly, in B2B e-business we often find a certain level of
symmetry. This means that the complexity of business processes and
supporting automated systems for realizing e-business if divided between
two business parties.
B2C: for example web shops.
Characteristic for the B2C scenario is asymmetry in the realization of the
scenario. The B party is where the main part of the business processes
take place and the complex e-business information systems reside. The C
party has simple process and a limited information system infrastructure.
C2C: for example market places.
3
, Usually there is a third party involved that facilitates C2C transactions.
G2C and G2B: example of government bodies are municipality offices, tax
offices and bureaus that give out documents etc.
A special case that we can classify as G2C/G2B are the scenarios of charity
organizations.
If not of a commercial nature, we classify it as G2C of G2B, even though it
might also be seen as B2C of B2B.
Typically, the G side in these scenarios is often bound with more
regulations.
Objects of e-business
• Physical goods: tangible goods that are physically exchanged between
parties
• Digital goods: intangible goods that are electronically exchanged
between parties
• Services: activities that one party specifically performs for another party
• Financial goods: sums of money or guarantees for the later delivery of a
sum of money
• Hybrid objects: combinations of the above. if so: specify the combination
Physical goods:
• Discrete goods: exchanged on a per piece basis. Both in B2C and B2B.
• Bulk goods: exchanged in large quantities on a per volume or per weight
basis. Typically in B2B.
Physical goods hardly play a role in G2B and G2C.
Digital goods:
• Digital content: copies of published and catalogued (multimedia)
content. Examples are e-books and movies.
• Digital information: on-demand produced informational data. Examples
are electronic weather forecasts and on-demand stock analyses.
• Software: copies of software products. Examples are multimedia players
and bookkeeping systems.
Characteristics digital goods:
• Can be copies in an arbitrary number almost without any cost to the
producer
• Can be transported almost instantaneously
• Can be transported almost without cost from seller to buyer, using the
internet
Services:
• Physical services: activities that involve the manipulation of physical
objects that are not exchanged goods. Examples are flights/air
transportation and car wash.
• Digital services: activities that do not involve manipulation of physical
objects. Examples are shopping advice and financial services.
Time scopes of e-business
4
Summary
,Chapter 1
E-business: specific kinds of business activities performed by one or
more organizations with the use of information technology.
Criteria:
• the activities must be core activities
• the use of technology must be essential for the what the activities are
performed. If efficiency or effectiveness are only improved, it’s IT-
support; not e-business.
• information must be both transformed and transported digitally
Scope of activities: determines whether activities are executed entirely
within the boundaries of a single organization or across the boundaries of
organizations (= inter-organizational).
Inter-organizational e-business has greater consequences that intra-
organizational
Dynamism of relations: determines how dynamic the relations are
between organizations that engage in e-business activities together.
E-business scenario: a setting in which two or more parties engage in e-
business to achieve a specific business goal (possibly more than just one).
Before the internet:
• dedicated digital communication channels: created for specific business
activities between pairs of business partners
• low-volume e-business relied on using existing phone lines and modems
to connect computers
• usually expensive and time-consuming to set up and maintain
• channels only supported long-term, stable business collaborations
The rise of the internet:
• ARPANET: established as research network, linking a few research
institutions
• late 1980s: Internet for global network based on TCP/IP.
• ubiquitous and inexpensive infrastructure became available for business
transactions
• HTML as standard web markup language and Mosaic: first web browser
1993
• these two together enabled world wide web
The e-commerce hype: number of e-business companies grew
exponentially
E-commerce: electronic business is e-business in which objects are
explicitly traded between participating parties.
1
, E-commerce is e-business, but not the other way around
Mobile business: e-business is restricted to m-business if we only use
wireless channels
M-commerce: m-business if it is about explicit trading of objects
Technology push vs requirements pull
Example: the web was not developed because business has demanded
this, but the mere existence of the web has pushed business into new
directions.
2
,Chapter 2
Structure of the classification space
• Parties in e-business: contains the options for the combination of parties
that perform the e-business activities
• Objects of e-business: contains the options for the type of object that is
primarily manipulated by e-business activities in a scenario
• Time scopes of e-business: used to classify e-business scenarios with
respect to the duration of relationships between e-business parties.
These dimensions are in principle mutually independent.
Parties in e-business
• Business party: any commercial organization
• Consumer party: individual acting as a private person (not as a business)
• Government party: (a part of) a government organization or a related
non-profit organization
B2B: from an economic perspective, B2B is by far the most important form
of e-business in the party dimension. Examples of scenarios are:
• supply chains
• industry-level market places
• complex logistic scenarios
• inter-bank financial traffic
Most importantly, in B2B e-business we often find a certain level of
symmetry. This means that the complexity of business processes and
supporting automated systems for realizing e-business if divided between
two business parties.
B2C: for example web shops.
Characteristic for the B2C scenario is asymmetry in the realization of the
scenario. The B party is where the main part of the business processes
take place and the complex e-business information systems reside. The C
party has simple process and a limited information system infrastructure.
C2C: for example market places.
3
, Usually there is a third party involved that facilitates C2C transactions.
G2C and G2B: example of government bodies are municipality offices, tax
offices and bureaus that give out documents etc.
A special case that we can classify as G2C/G2B are the scenarios of charity
organizations.
If not of a commercial nature, we classify it as G2C of G2B, even though it
might also be seen as B2C of B2B.
Typically, the G side in these scenarios is often bound with more
regulations.
Objects of e-business
• Physical goods: tangible goods that are physically exchanged between
parties
• Digital goods: intangible goods that are electronically exchanged
between parties
• Services: activities that one party specifically performs for another party
• Financial goods: sums of money or guarantees for the later delivery of a
sum of money
• Hybrid objects: combinations of the above. if so: specify the combination
Physical goods:
• Discrete goods: exchanged on a per piece basis. Both in B2C and B2B.
• Bulk goods: exchanged in large quantities on a per volume or per weight
basis. Typically in B2B.
Physical goods hardly play a role in G2B and G2C.
Digital goods:
• Digital content: copies of published and catalogued (multimedia)
content. Examples are e-books and movies.
• Digital information: on-demand produced informational data. Examples
are electronic weather forecasts and on-demand stock analyses.
• Software: copies of software products. Examples are multimedia players
and bookkeeping systems.
Characteristics digital goods:
• Can be copies in an arbitrary number almost without any cost to the
producer
• Can be transported almost instantaneously
• Can be transported almost without cost from seller to buyer, using the
internet
Services:
• Physical services: activities that involve the manipulation of physical
objects that are not exchanged goods. Examples are flights/air
transportation and car wash.
• Digital services: activities that do not involve manipulation of physical
objects. Examples are shopping advice and financial services.
Time scopes of e-business
4
