Ecommerce S1

Question 1

Please define E-Business and E-Commerce:

Answer 1

1. E-Commerce Definition: This is E-business that involves financial transactions
   E-Business:
2. Electronic Business = Automation of Businesses through electronic technology.

Question 2

Please state the four elements what E-business include:

Answer 2

1. Online Marketing & Sales
2. Supply Chain & Value Chain management
3. Manufacturing & inventory control
4. Financial operations

Question 3

Give the advantages of automation (4 statements).

Answer 3

1. Processes will be faster
2. You need less people
3. You can work and manufacture with more precision
4. Errors caused by human will be eliminated

Question 4

There are three different levels of business. Please enumerate.

Answer 4

1. Some requires a websites
2. Some only require the use of email
3. Each business determines the level of E-business they adopt.

Question 5

Give six reasons why your company should adopt e-business?

Answer 5

1. Increase revenue (Newer Markets, New Target groups)
2. Reduce costs (Less Human Capital)
3. Achieve channel efficiency & effectiveness (Effectiveness = I’ve been effective next door; Efficiency = How many resources are used to get the results, you are more efficient if for the same result you need less resources.
4. **Automation **
5. **Control ** Some people automate because they want to have control.
6. Recognition You automate to attend a higher status.

Question 6

Please enumerate 6 benefits of E-Business

Answer 6

1. Cost-reduction (* May also increase cost)
2. Increased market penetration
3. Communication
4. Control (e.g. online service tracking systems)
5. Customer service improved
6. Competitive advantage (Who better than the other = Competition; Advantage= you are a step ahead of your friend). (Having more qualified workers than your competitors, the use of technology brings more advantages

Question 7

Which 5 elements does E-Commerce have? Enumerate!

Answer 7

1. Online ordering, payment & delivery of intangible goods & services e.g. software, magazines, etc.
2. Electronic funds transfer (Überweisungen)
3. Electronic share trading (stocks)
4. Commercial auctions (ebay)
5. Direct consumer marketing, etc (Marketing to individual using technology)

Question 8

Please enumerate 7 types of categories in E-Commerce.

Answer 8

1. Business to customer (B2C)
2. business to business (B2B)
3. customer to customer (C2C)
4. business to machine (B2M)
5. Business to government (B2G)
6. Customer to business (C2B)
7. Business to employee (B2E)

Question 9

Define Transaction and the term business process.

Answer 9

• **Transaction **
  An exchange of value – purchase , sale , conversion of raw material into finished goods
• Business Process
  The group of logical, related & sequential activities & transactions in which businesses engage

Question 10

Please define the following terms:

1. Telecommunication and telework
2. Electronic funds transfer (EFT’s)
3. Electronic data interchange (EDI) ->
4. Trading partners
5. Value added network (VAN)

Answer 10

Telecommunicating and telework

Employee logs in to company computer through internet instead of traveling to office

Electronic funds transfers (EFT’s)

Also called wire transfer
Electronic transmissions of account exchange information over private communications networks
Used by banks
Has been in use for more than 30 years.

Electronic data interchange (EDI) -> Internet nowadays (public)

Transmitting computer-readable data in a standard format to another business
Companies agree on the format of documents to be transmitted
A type of e-commerce (NU – Challenge Bookshop = B2B)

Trading partners

Businesses that engage in EDI with each other

Value added network (VAN)

Independent firms
Offers connection with a charge for customers

Question 11

There are 5 possible types of E-Commerce Business models: Please enumerate them and explain.

Answer 11

Brokerage Models

Buying shares and options would have been sold through a brokerage
Also Ebay is an example for a selling brokerage model
Often fee-based
Facilitate transactions
Brings buyers & seller together

Advertising Model

Supported by advertising revenue
Websites provide content & services together with advertising
E.g. Yahoo.de ; Gmx.de ;

Intermediary model

Collecting data about consumers &
their purchase habits &
selling this information to other businesses
e.g. search engines & directories
E-Tailers consumer shopping sites e.g. amazon.de
Auction sites e.g. Ebay
Malls group different online stores as tenants

Merchandise models

Selling of goods & services (food, book, music,)
You can be a trader

Manufacturer Model

Direct selling by the creator of a product or service to consumers, cutting out intermediaries.