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Chapter 4 The Digital Firm: Electronic Business and Electronic Commerce Learning Objectives: Analyze how Internet technology has changed value propositions and business models Define electronic commerce and describe how it has changed consumer retailing and business-to-business transactions Compare the principal payment systems for electronic commerce Learning Objectives: Evaluate the role of Internet technology in facilitating management and coordination of internal and interorganizational business processes Assess the challenges posed by electronic business and electronic commerce and management solutions Chapter 4 The Digital Firm: Electronic Business and Electronic Commerce 4.1 Electronic Business, Electronic Commerce, and the Emerging Digital Firm 4.2 Electronic commerce 4.3 Electronic Business and the Digital Firm 4.4 Management Opportunities, Challenges, and Solutions Electronic Business, Electronic Commerce, and the Emerging Digital Firm Internet Technology and the Digital Firm New Business Models and Value Propositions Discussion: Internet Benefits to Organization Internet Benefits to Organization Connectivity and global reach Reduced communication costs Lower transaction costs Reduced agency costs Interactivity, flexibility, and customization Accelerated distribution of knowledge Internet Technology and the Digital Firm (P114) Become the infrastructure for EC Directly communicate between trading partners Available 24 hours a day Replace existing distribution channels or extend Reduce transaction costs Electronic Business, Electronic Commerce, and the Emerging Digital Firm Internet Technology and the Digital Firm New Business Models and Value Propositions New Business Models and Value Propositions Value Propositions: (P115) In the past, information about products and services was usually tightly bundled with the physical value chain. The Internet has changed that relationship. New Business Models and Value Propositions Business Model: (P115) Describe