Managing Information Systems Government of Canada B2B Exchange Websites Case Study E-Business and E-Commerce Please read the case (in word document) and a

Managing Information Systems Government of Canada B2B Exchange Websites Case Study E-Business and E-Commerce

Please read the case (in word document) and answer three questions based on Rubric. If it is possible, please write references and in-text citations.

1. What type of B2B exchange website is MERX? What type of B2B exchange website is BuyandSell.gc.ca?

2. Visit the MERX or BuyandSell.gc.ca website and give three more examples of the goods and services being tendered. Provide some detail in describing the tender: e.g., size/value of the contract, work and time involved to fulfill; i.e. not just a couple of words description.

3. Are there any goods or services that might not be suitable to be tendered on MERX or BuyandSell.gc.ca? Justify your answer.

Rubric

Q1: Type of B2B Exchange (MERX and BuyandSell.gc.ca)

(20 marks)

– The difference between each of the B2B exchange is clear and correctly identified

– The type of functional exchange of each of the exchanges in question is identified (vertical, horizontal, etc) with supporting details from research

– References are properly cited.

Q2: Three examples of goods and services being tendered on the exchanges in question (30 marks)

– Three examples were provided

– Sufficient details that describe the tenders were provided (e.g., size/ value of the contract, work and time involved to fulfill, conditions for completion, etc)

Q3: if there are goods and services not suitable to be tendered on MERX or BuyandSell.gc.ca

(25 marks)

– The question is answered correctly

– Good justification for the answer is provided Case Study
IT’s About Business 7.4
Public Exchanges for Government Agencies?
Many Canadian businesses want to sell to the Government of Canada, which buys about
$16 billion worth of goods and services annually, ranging from buying a spare part for an
army helicopter to placing an ad on a TV station. The government does business with
home-based entrepreneurs through to multinational corporations.
About 1 in 5 members of the Canadian Federation of Independent Business (www.cfibfcei.ca) do business with the federal government and other public agencies, learning
about opportunities through online portals such as MERX (www.merx.com).
Most small entrepreneurs turn to online providers such as MERX or BuyandSell.gc.ca for
information on tender opportunities by different government and public sector agencies.
For example, the coffee-shop contract for the newly renovated National Arts Centre in
Ottawa was tendered through MERX and a recent contract to build a small remotely
operated vehicle training simulator for the Government of Canada was tendered through
BuyandSell.gc.ca.
While MERX is a privately owned website, BuyandSell.gc.ca is government-owned, free,
and open-source, although both provide similar services: businesses can search and
browse through current and upcoming government bid opportunities and submit their bids
online. In addition, potential or existing suppliers can register online to receive email alerts
about opportunities in their field and set up direct deposit information. The two platforms
are designed to entice more businesses to bid on government tenders and make the
process of bidding for government contracts more transparent and open to any potential
contractor. At the same time they are intended to facilitate the procurement process for
government agencies by defining a very structured procurement process. This means
bidders will have less chance of missing information on a tender opportunity.
Read the case, and answer the following questions.
1.
What type of B2B exchange website is MERX? What type of B2B exchange website is
BuyandSell.gc.ca?
2.
Visit the MERX or BuyandSell.gc.ca website and give three more examples of the goods and
services being tendered. Provide some detail in describing the tender: e.g., size/value of
the contract, work and time involved to fulfill; i.e. not just a couple of words description.
3.
Are there any goods or services that might not be suitable to be tendered on MERX or
BuyandSell.gc.ca? Justify your answer.
Rubric
Q1: Type of B2B
Exchange (MERX and
BuyandSell.gc.ca)
(20 marks)
Q3: if there are
goods and services
not suitable to be
tendered on MERX
or BuyandSell.gc.ca
(25 marks)
– The difference
between each of the
B2B exchange is
clear and correctly
identified
– The type of
functional exchange
of each of the
exchanges in
question is identified
(vertical, horizontal,
etc) with supporting
details from research
– References are
properly cited.
– The question is
answered correctly
– Good justification
for the answer is
provided
Q2: Three examples
of goods and
services being
tendered on the
exchanges in
question (30 marks)
– Three examples
were provided
– Sufficient details
that describe the
tenders were
provided (e.g., size/
value of the
contract, work and
time involved to
fulfill, conditions for
completion, etc)
CHAPTER 7
E-Business and
E-Commerce
OUTLINE
7.1
Overview/Definition of E-Business & E-Commerce
7.2
Business-to-Consumer (B2C) Electronic Commerce
7.3
Business-to-Business (B2B) Electronic Commerce
7.4
Ethical and Legal Issues in E-Business
2
DEFINITIONS AND CONCEPTS
• E-Commerce (EC): the process of buying, selling,
transferring or exchanging products, services or
information via computer networks, including the
Internet
• E-Business: in addition to EC, E-Business also
refers to servicing customers, collaborating with
business partners, and performing electronic
transactions within an organization
3
Degree of Digitization
• Pure versus Partial Electronic Commerce
• Depends on the degree of digitization involved.
• the product, process or delivery agent can be physical or
digital.
a) Brick-and-mortar organizations: purely physical
b) Virtual organizations: also called “pure play”
c) Click-and-mortar (also called “clicks and bricks”
organizations): conduct some e-commerce activities, yet
their business is primarily done in the physical world, i.e.
“partial EC”
4
Examples
• Buy books at university bookstore in person:
• Bricks-and-mortar (pure physical)
• Use Internet to order physical book from Amazon:
• Partial EC
• Order and download e-book from Amazon:
• Pure EC
5
TYPES OF E-COMMERCE
• Business-to-Consumer (B2C): business sells to consumers
• Business-to-Business (B2B): business sells to business
• Consumer-to-Consumer (C2C): consumers sell to consumers
• Business-to-Employee (B2E): business interacts with employees
(e.g. payroll, benefits)
• Government-to-Citizen(G2C) or Government-to- Business (G2B):
government interacts with consumers or business (e.g. CRA, CIC)
• Mobile Commerce (m-commerce): any of the e-commerce types
handled using mobile systems
6
E-COMMERCE BUSINESS MODELS
A business model is the method by which a
company generates revenue to sustain itself:
• Online direct marketing: selling online directly to
customers
• Electronic tendering system: B2B reverse auction that
involves requesting quotes from suppliers
• Name-your-own-price: using an intermediary customers
decide how much they are willing to pay
• Find-the-best-price: intermediaries search for and provide
the best price for what customers want
7
E-COMMERCE BUSINESS MODELS (CONTINUED)
• Affiliate marketing: logos or banners are placed on partner sites; if
purchases are made then the advertiser pays a commission to the
affiliate
• Viral marketing: relying on people to tell their friends electronically
about products
• Group purchasing (e-coops): groups of buyers negotiate volume
discounts
• Online auctions: products are auctioned online
• Product customization: online self-configuration of products that are
individually produced
• Electronic marketplaces and exchanges: online private (one seller)
or public (many sellers) marketplaces attract many buyers
8
E-COMMERCE BUSINESS MODELS (CONTINUED)
• Bartering Online: exchanges or sales of products without
the exchange of cash using an intermediary (i.e. auction
using “points”)
• Deep discounters: online direct sales at low prices (i.e.
deeply discounted) for special promotions or “fire sales”
e.g. ends of lines
• Membership: only members can use the services, which
could be products or services. Membership could be free or
paid.
9
MAJOR E-COMMERCE PRICING MODELS
• Electronic catalogues display products or
services available for sale at a fixed price
• On-line auctions. Both types can feature
thousands of products or quotes
• Forward auctions try to obtain the highest amount
for a product or service placed on sale by a buyer,
e.g. http://www.ebay.ca/
• Reverse auctions the buyer tries to obtain the
lowest price from a seller by requesting a quote, e.g.
http://www.merx.com
10
ELECTRONIC PAYMENT MECHANISMS
• Electronic Payments
• e-mail transfer, Stored-value money cards, Smart
cards
• Digital Wallets
• Electronic cheques (e-cheques)
11
BENEFITS OF E-COMMERCE
• Benefits to organizations
• Makes national and international markets more accessible
• Lowering costs of processing, distributing, and retrieving
information
• Benefit to customers
• Access a vast number of products and services around the
clock (24/7/365)
• Benefit to society
• Ability to easily and conveniently deliver information, services,
and products to people in cities, rural areas, and developing
countries
12
LIMITATIONS OF E-COMMERCE
• Technological Limitations include:
•
Lack of universally accepted security standards
•
Insufficient telecommunications bandwidth in some areas
•
Expensive accessibility to the web in some countries or
regions
• Non-technological Limitations are perceptions
that:
•
Perception that E-commerce is insecure
•
There are unresolved legal issues
13
OUTLINE
7.1
Overview/Definition of E-Business & E-Commerce
7.2
Business-to-Consumer (B2C) Electronic Commerce
7.3
Business-to-Business (B2B) Electronic Commerce
7.4
Ethical and Legal Issues in E-Business
14
7.2 BUSINESS-TO-CONSUMER (B2C) ELECTRONIC
COMMERCE
• Smaller than B2B but more complex
• Many buyers making millions of diverse transactions daily
• Companies need to process many (potentially small) orders
quickly and efficiently
• B2B Related Topics:
•
•
•
•
Electronic storefronts and malls
Online service industries
Advertising models
Issues in e-tailing
15
ELECTRONIC STOREFRONTS AND MALLS
(use of e-tailing)
• Electronic storefronts (e-storefronts)
unique URL for a single organization; they can be extensions of
physical stores
• Electronic malls (e-malls)
many individual shops also grouped under a single URL.
Two Types:
• Referral malls, which transfer you to the web site of
the shop that is part of the referral mall, e.g.
http://shopping.google.com
• Purchasing malls provide a common shopping cart
for multiple vendors, e.g. http://www.shop.ca or
http://www.amazon.ca
16
ONLINE SERVICE INDUSTRIES
• Online service
involves customers accessing services via the Web.
•
•
•
•
•
Cyber-banking
Online securities trading
Online job market
Travel services
Online advertising
17
ONLINE ADVERTISING METHODS
•
•
•
•
•
•
Banners
Pop-up ad
Pop-under ad
Spamming
Permission marketing
Viral marketing
18
CHALLENGES IN E-TAILING
• Channel conflict:
• occurs when clicks-and-mortar companies may face
a conflict with their regular distributors when they sell
directly to customers on-line.
• Showrooming:
• shoppers visit a bricks-and-mortar store to look at
products in person, then research the product online,
often buying it elsewhere
• Order fulfillment:
• involves finding the product to be shipped; packaging
the product; arrange for speedy delivery to the
customer; and handle the return of unwanted or
defective products.
19
Solving the Problem of Channel Conflict
• Multi-channelling: a process many companies
use to integrate their on-line and off-line channels
(also known as omni-channelling)
• See Case 7.1. The Omni-Channel Strategy to
Compete with Amazon
20
DIS-INTERMEDIATION
• In Online service Intermediaries or middlemen
provide information and/or provide value-added
services.
• When the function(s) of these intermediaries is
automated or eliminated, this process is called
disintermediation.
IT’s About Business 7.2 illustrates how Penske went
about selling its own used trucks rather than selling
them via dealers, which “dis-intermediated” their
dealers
21
OUTLINE
7.1
Overview/Definition of E-Business & E-Commerce
7.2
Business-to-Consumer (B2C) Electronic Commerce
7.3
Business-to-Business (B2B) Electronic Commerce
7.4
Ethical and Legal Issues in E-Business
22
7.3 BUSINESS-TO-BUSINESS (B2B) ELECTRONIC
COMMERCE
• In B2B e-commerce, the buyers and sellers are
organizations.
Three types:
1) Sell-side marketplaces
2) Buy-side marketplaces
3) Electronic exchanges
23
B2B SELL-SIDE MARKETPLACE
• In the sell-side marketplace, organizations sell
their products or services to other organizations
electronically from their own Web site and/or from
a third-party Web site.
• Key mechanisms: electronic catalogues and
forward auctions
• Example of Sell-Side Marketplace:
Dell Auction
24
B2B BUY-SIDE MARKETPLACE
• The buy-side marketplace is a model in which
organizations attempt to buy needed products or
services from other organizations electronically
• Key mechanism: reverse auctions
• Example of a Buy-Side Marketplace:
• United Sourcing Alliance
• Buy-side supporting processes:
• E-procurement
• Group purchasing
25
ELECTRONIC EXCHANGES
• Private exchanges have one buyer and many sellers
• E-marketplaces, called public exchanges or just
exchanges, are independently owned by a third party and
connect many sellers and many buyers.
•
There are three basic types of public exchanges:
•
Vertical Exchanges: connect buyers and sellers in a given
industry
•
Horizontal Exchanges: connect buyers and sellers across
many industries
•
Functional Exchanges: provide needed services such as
temporary help or extra office space on an “as-needed” basis
26
OUTLINE
7.1
Overview/Definition of E-Business & E-Commerce
7.2
Business-to-Consumer (B2C) Electronic Commerce
7.3
Business-to-Business (B2B) Electronic Commerce
7.4
Ethical and Legal Issues in E-Business
27
7.4 ETHICAL AND LEGAL ISSUES
Ethical Issues
• Privacy (i.e. who the buyers are)
• Tracking (i.e. using cookies)
• Use of the Internet for selling illegal or unethical
products
28
LEGAL AND ETHICAL ISSUES SPECIFIC TO
E-COMMERCE
• Fraud on the Internet: fraudulent activity i.e. stocks,
auctions, investments, stolen credit card, phishing, etc.
• Domain Names are considered to be legal when the
person or business who owns the name has operated a
legitimate business under that name for some period of
time. Canada’s Internet Registration Authority
http://www.cira.ca/
• Cybersquatting is the practice of registering or using
domain names for the purpose of profiting from the
goodwill or the trademark that belongs to someone else.
29
LEGAL ISSUES SPECIFIC TO E-COMMERCE
(CONTINUED)
• Domain Tasting is a practice of registrants using the five-day
“grace period” at the beginning of a domain registration to profit from
pay-per-click advertising.
•
• See policies on the Internet Corporation for Assigned Names
and Numbers (ICANN): www.icann.org
• Taxes and Other Fees require appropriate collection from web
site vendors
• Web Copyright protecting intellectual property in e-commerce
and enforcing copyright laws is extremely difficult because it involves
hundreds of millions of people who have access to billions of web
pages in about 200 countries with differing copyright laws.
30
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use of the information contained herein.
31
CASE 7.1 THE OMNI-CHANNEL STRATEGY TO
COMPETE WITH AMAZON
The Problem
Amazon.ca has become the largest Internet retailer in
Canada. Traditional retailers are struggling to compete for
online sales.
Amazon offers low-cost delivery and multiple delivery options,
at more competitive prices than Canadian retailers, making
it difficult for them to also compete on delivery.
32
CASE 7.1 THE OMNI-CHANNEL STRATEGY TO
COMPETE WITH AMAZON
The Solutions
Multiple delivery and pick-up models are being tested by
many stores for their online sales
• Lockers that are PIN-protected
• Grab-and-go groceries
• Pick up at stores with home delivery of larger items
33

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