Do lecommerce
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E-commerce involves the exchange of goods and services over electronic systems like the internet. It requires products or services to sell, a way to accept orders and payments, fulfillment of orders, and customer service. There are four main categories of e-commerce: business to business, business to consumer, consumer to consumer, and consumer to business. Key drivers include technology, policies, skills, economics, and competition. Benefits include lower costs, larger markets, and improved customer interactions, while limitations relate to security, access, standards, and lack of human interaction.
Do lecommerce
- 1. E-commerce 1
- 2. Definition of Commerce The exchange of goods and services for money Consists of: Buyers - these are people with money who want to purchase a good or service. Sellers - these are the people who offer goods and services to buyers. Producers - these are the people who create the products and services that sellers offer to buyers. 2
- 3. Elements of Commerce You need a Product or service to sell You need a Place from which to sell the products You need to figure out a way to get people to come to your place. You need a way to accept orders. You also need a way to accept money. You need a way to deliver the product or service, often known as fulfillment. Sometimes customers do not like what they buy, so you need a way to accept returns. You need a customer service and technical support department to assist customers with products. 3
- 4. What is a network Seriesof points or nodes interconnected by communication paths Node is a connection point for transmitting data Network can interconnect with other networks to form global networks 4
- 5. Benefits of a network Facilitatesresource sharing Provides reliability Cost effective Provide a powerful medium across geographical divide 5
- 6. Introduction to E-commerce E-Commerce, Web, Networks, Internet The evolution of new businesses The adoption of Brick and Mortar companies to the new economy Market failures and economic explanations for the new economy 6
- 7. History of E-commerce ECapplications first Limited to: developed in the early - Large corporations 1970s - Financial institutions - Electronic funds - A few other daring transfer (EFT) businesses 7
- 8. E-Commerce Mechanisms Transformation of economic activity into digital media - Exchange information, content, agreements, and services among parties that are connected to through the Internet. Enablesnew ways of creating, delivering and capturing value to customers. - Availability - Convenience 10
- 9. What is E-commerce Distributing, buying, selling and marketing products and services over electronic systems E-business for commercial transactions Involves supply chain management, e-marketing, online marketing, EDI Uses electronic technology such as: - Internet - Extranet/Intranet - Protocols 11
- 10. Forces Shaping the Digital Age 12
- 11. E-commerce as the Networked Economy Create value largely through gathering, synthesizing and distribution of information Formulate strategies that make management of the enterprise and technology convergent Compete in real time rather than in “cycle time” Operate in a world characterized by low barriers to entry, near-zero variable costs of operation and shifting competition Organize resources around the demand side rather than supply side Manage better relationships with customers through technology 13
- 12. E-commerce Today The Internet is the perfect vehicle for e- commerce because of its open standards and structure. No other methodology or technology has proven to work as well as the Internet for distributing information and bringing people together. It’s cheap and relatively easy to use it as a medium for connecting customers, suppliers, and employees of a firm. No other mechanism has been created that allow organizations to reach out to anyone and everyone like the Internet. 14
- 13. E-commerce Today The Internet allows big businesses to act like small ones and small businesses to act big. The challenge to businesses is to make transactions not just cheaper and easier for themselves but also easier and more convenient for customers and suppliers. It’s more than just posting a nice looking Web site with lots of cute animations and expecting customers and suppliers to figure it out Web-based solutions must be easier to use and more convenient than traditional methods if a company hopes to attract and keep customers. 15
- 14. Four Categories of E-Commerce Business originating from... Business Consumers Business B2B C2B And selling to... Consumers B2C C2C 16
- 15. Distinct Categories of E-Commerce Business to Business (B2B) refers to the full spectrum of e- commerce that can occur between two organizations. This includes purchasing and procurement, supplier management, inventory management, channel management, sales activities, payment management &service and support. Examples: FreeMarkets, Dell and General Electric Business to Consumer (B2C) refers to exchanges between business and consumers, activities tracked are consumer search, frequently asked questions and service and support. Examples: Amazon, Yahoo and Charles Schwab & Co 17
- 16. Distinct Categories of E-Commerce (cont’d) Peer to Peer (C2C) exchanges involve transactions between and among consumers. These can include third party involvement, as in the case of the auction website Ebay. Examples: Owners.com, Craiglist, Monster Consumer to Business (C2B) involves when consumers band together to present themselves as a buyer in group. Example: www.planetfeedback.com 18
- 17. Convergence of e-Commerce Categories Business originating from… Business Consumers Publishers order paper supplies from Consumers search Business paper companies And Selling to… out sellers, offers and initiate Amazon orders purchases from from publishers Amazon Consumers Consumers buy Consumers resell thousands of Harry copies on eBay Potter books from Amazon 19
- 18. What is a web-based business Business that uses the WWW to fulfill it’s business process Four basic business processes: - information dissemination - data capture - promotions and marketing - transacting with stakeholders Business objectives interact with web based applications 20
- 19. Key Drivers of E-commerce Technological – degree of advancement of telecommunications infrastructure Political – role of government, creating legislation, funding and support Social – IT skills, education and training of users Economic – general wealth and commercial health of the nation 25
- 20. Key Drivers of E-business Organizational culture- attitudes to R&D, willingness to innovate and use technology Commercial benefits- impact on financial performance of the firm Skilled/committed workforce- willing and able to implement and use new technology Requirements of customers/suppliers- in terms of product and service Competition- stay ahead of or keep up with competitors 26
- 21. Appeal of E-commerce Lower transaction costs - if an e-commerce site is implemented well, the web can significantly lower both order-taking costs up front and customer service costs Larger purchases per transaction - Amazon offers a feature that no normal store offers Integration into the business cycle People can shop in different ways. The ability to build an order over several days – The ability to configure products and see actual prices – The ability to easily build complicated custom orders – The ability to compare prices between multiple vendors easily – The ability to search large catalogs easily Larger catalogs Improved customer interactions - company. 27
- 22. Limitations of E-commerce To organizations: lack of security, reliability, standards, changing technology, pressure to innovate, competition, old vs. new technology To consumers: equipment costs, access costs, knowledge, lack of privacy for personal data, relationship replacement To society: less human interaction, social division, reliance on technology, wasted resources, JIT manufacturing 28
- 23. Technical limitations There is a lack of universally accepted standards for quality, security, and reliability The telecommunications bandwidth is insufficient Software development tools are still evolving There are difficulties in integrating the Internet and EC software with some existing (especially legacy) applications and databases. Special Web servers in addition to the network servers are needed (added cost). Internet accessibility is still expensive and/or inconvenient 29
- 24. Web based technology Websites E-mail Search engines Interactive communications 30
- 25. Old Economy Firms Brick and Mortar companies need to adopt to the new economy - Create a new Internet company. - Create a new subsidiary. - Invest in an Internet competitor. - Buy the technology from a consultant. - Work with other firms to create an exchange. - Integrate with suppliers and or customers. 31
- 26. Old Economy Firms Failureof old economy companies to adopt may result in: - Loss of market share. - Inability to meet new economy competitors ´prices. - Reduced profits and cash flows. - Inability to raise new financing. - Loss of control in an acquisition by a new economy firm. 32
- 27. Business Opportunity The Internet revolutionized ways of doing business Entrepreneurs found ways to exploit market failures and earn economic rents New businesses were created that were not feasible earlier The new economy poses threats to old economy firms that do not wish to adapt The transformation is still in process. The evolution continues 33
- 28. Benefits and Challenges of E-commerce Benefits Benefits Challenges Challenges Persistent connection with customers Persistent connection with customers Cannibalization Cannibalization New value for customers New value for customers Channel conflict Channel conflict Access to new customers Access to new customers Customer confusion Customer confusion Scalability Scalability Investor confusion Investor confusion 34
- 29. Front end systems Direct user interface with business processes Accessible via WWW Front-end systems: - e-CRM - e-marketing - e-services - e-marketplace - e-auction 35
- 30. Marketing Strategy in the Digital Age Requires a new model for marketing strategy and practice Some suggest that all buying and selling will eventually be done electronically Companies need to retain old skills and practices but add new competencies 36
- 31. E-Business in the Digital Age Involvesthe use of electronic platforms to conduct company business. – Web sites for selling and customer relations – Intranets for within-company communication – Extranets connecting with major suppliers and distributors 37
- 32. E-Commerce in the Digital Age More specific than e-business. Involves buying and selling processes supported by electronic means, primarily the Internet. Includes: – e-marketing – e-purchasing (e-procurement) 38
- 33. E-commerce vs. E-business E-commerce is about doing business electronically E-commerce conducting financial transactions electronically E-business is conducting business on the Internet E-business is the transformation of business processes through the Internet 39
- 34. E-Marketing in the Digital Age The marketing side of e-commerce. Includes efforts to communicate about, promote, and sell products and services over the Internet. E-purchasing is the buying side of e- commerce. – It consists of companies purchasing goods, services, and information from online suppliers. 40
- 35. Types of e-Marketers 41
- 36. Click-Only Companies E-tailers Search Enabler Engines and Sites Portals Types of Sites Internet Content Service Sites Providers Transaction Sites 42
- 37. Reasons for dot.com Failures Poor research or planning. Relied on spin and hype instead of marketing strategies. Spent too heavily on brand identities. Devoted too much effort to acquiring new customers instead of building loyalty. 43
- 38. Click-and-Mortar Companies Most established companies resisted adding Web sites because of the potential for channel conflict and cannibalization. Many are now doing better than click-only companies. Reasons: – Trusted brand names and more resources – Large customer bases – More knowledge and experience – Good relationships with suppliers – Can offer customers more options 44
- 39. Setting Up for E-Marketing Online Marketing 45
- 40. Setting up for E-Marketing Options Corporate websites – Build goodwill and Creating websites relationships; generate Placing online ads and excitement promotions Marketing websites Creating or using Web – Engage consumers communities and attempt to influence Using E-mail purchase Website design – 7 C’s of effective website design 46
- 41. Conducting E-Commerce Seven C’s of Website Design Context Communication Content Connection Community Commerce Customization 47
- 42. The 7C’s of Website design Context Content Site’s layout and design Text, pictures, sound and video that web pages contain Commerce Community Site’s capabilities to enable The ways sites enable user-to- commercial transactions user communication Connection Customization Degree site is linked to other Site’s ability to self-tailor to sites different users or to allow users to personalize the site Communication The ways sites enable site-to- user communication or two-way 48 communication
- 43. Fit and Reinforcement of Cs Business Model Business Model Individually Supporting Fit Context Context Content Content Community Community Customization Communication Customization Communication Connection Connection Commerce Commerce Consistent Reinforcement 49
- 44. Setting up for E-Marketing Options Online forms of ads and Creating websites promotions Placing online ads – Banner ads/tickers and promotions – Skyscrapers – Interstitials Creating or using – Content sponsorships Web communities – Microsites Using E-mail – Viral marketing Future of online ads 50
- 45. Web Advertising Banner ads: allows for more targeted advertising Pop-up ads: pop-under ads are displayed in a separate browser window beneath your main browser window and remain there until you close them This is a pop-up ad Click here to close me Skyscrapers: An advertisement on a Web site that is vertically oriented on the page and larger than the typical banner ad 51
- 46. Web Advertising Interstitials: are usually full-page ads displayed while a user is in transit from one page to another, triggered by code included in the link 52
- 47. Web Advertising Content Sponsorship: are sites that pay for placement in search results on keywords that are relevant to their business The upper: This is the part of the shoe that wraps around and over the top of the foot. It may be made of leather or a synthetic material that is lighter and breathable (to reduce heat from inside the running shoe). The tongue of the upper should be padded to cushion the top of the foot against the pressure from the laces. Often, at the back of the running shoe, the upper is padded to prevent rubbing and irritation against the achilles tendon. The heel counter: This is a firm and inflexible cup which is built into the upper of running shoes and surrounds the heel. It is usually very firm so that it can control motion of the rearfoot. Post or footbridge: This is the firm material in the midsole which increases stability along the inner side (arch side; medial side) of the running shoe. 53
- 48. Web Advertising Microsites: limited areas on the Web managed and paid for by external companies http://www.autotrader.com/ 54
- 49. Viral Marketing Gillette used viral marketing to introduce the 3-bladed Venus razor for women, greatly expanding the audience reached by its “Reveal the Goddess in You” truck tour and beach-site promotions. 55
- 50. Setting up for E-Marketing Options Web communities allow Creating websites members with special Placing online ads interests to exchange views and promotions – Social communities Creating or using – Work-related communities Web communities Marketers find well- Using E-mail defined demographics and shared interests useful when marketing 56
- 51. Setting up for E-Marketing Options E-mail marketing Creating websites Placing online ads and – Key tool for B2B and promotions B2C marketing Creating or using Web – Clutter is a problem communities – Enriched forms of Using E-mail e-mail attempt to break through clutter – Spam is a problem 57
- 52. Benefits of E-commerce To consumers: 24/7 access, more choices, price comparisons, improved delivery, competition To organizations: International marketplace (global reach), cost savings, customization, reduced inventories, digitization of products/services To society: flexible working practices, connects people, delivery of public services 58
- 53. Benefits to Consumers Convenience Buying is easy and private Provides greater product access and selection Provides access to comparative information Buying is interactive and immediate 59
- 54. Benefits to Organizations Powerful tool for building customer relationships Can reduce costs Can increase speed and efficiency Offers greater flexibility in offers and programs Is a truly global medium 60
- 55. Benefits to Society More individuals can work from home Benefits less affluent people Third world countries gain access Facilitates delivery of public services 61
- 56. Discussion Questions What features do you look for on a Web site that you feel make the site appealing? What are your major concerns about making online purchases? What types of things can an online retailer do to create a more secure buying environment? 62
- 57. Online Ads and Promotion Forms of online advertising & promotion: – Banner ads & tickers (move across the screen) – Skyscrapers (tall, skinny ads at the side of a page) – Rectangles (boxes that are larger than a banner) – Interstitials (pop up between changes on Web site) – Content sponsorships (sponsoring special content) – Microsites (limited areas paid for by an external company) – Viral marketing (Internet version of word-of-mouth) 63
- 58. Business Pressures The term business environment refers to the social, economic, legal, technological, and political actions that affect business activities Business pressures are divided into the following categories: - Market (economic) - Societal - Technological 64
- 59. Major Business Pressures & the Role of EC 65
- 60. Organizational Responses Strategic systems - Provide organizations with strategic advantages, enabling them to: Increase their market share Better negotiate with their suppliers Prevent competitors from entering into their territory Continuous improvement efforts - Many companies continuously conduct programs to improve: Productivity Quality Customer service Business process reengineering (BPR) - Strong business pressures may require a radical change - Such an effort is referred to as business process reengineering (BPR) 66
- 61. Organizational Responses Business alliances - Alliances with other companies, even competitors, can be beneficial - Virtual corporation—electronically supported temporary joint venture Special organization for a specific Time-limited mission Electronic markets - Optimize trading efficiency - Enable their members to compete globally - Require the collaboration of the different companies and competitors 67
- 62. Organizational Responses Reduction in cycle time and time to market - Cycle time reduction—shortening the time it takes for a business to complete a productive activity from its beginning to end - Extremely important for increasing productivity and competitiveness - Extranet-based applications expedite steps in the process of product or service development, testing, and implementation 68
- 63. Strategy Formulation Porter’s three generic strategies for business: - focus - low cost leadership - differentiation Differentiation in the new e-commerce sector is the key to success 69
- 64. Classic Framework for Strategy Management Mission Goals Internal External Strategy (Company) Analysis Formulation Analysis •Corporate •Business-unit •Functional •Operating Implementation Control and Monitoring 70
- 65. E-commerce and Organizations Organizations that undertake e-commerce do so from two possible starting points: - new online organizations - traditional established organizations Factors for success: - first-mover advantage - differentiation in the marketplace - flexibility and agility in the electronic marketspace 71
- 66. Seven dimensions of E-commerce Strategy Four positional factors Four positional factors Three bonding factors Three bonding factors ••Technology: goal must be Technology: goal must be ••Leadership: vision of CEO for e- Leadership: vision of CEO for e- understood within its’ market and understood within its’ market and commerce commerce industry industry ••Infrastructure: technology Infrastructure: technology ••Market: must determine its’ Market: must determine its’ support for new model of support for new model of target market and whether it is target market and whether it is business business still open to new entrants still open to new entrants ••Organizational Learning: does Organizational Learning: does ••Service: must know its’ Service: must know its’ the organization support internal the organization support internal customer’s expectations customer’s expectations learning learning ••Brand: must understand if it has Brand: must understand if it has the ability to create a strong the ability to create a strong brand brand 72
- 67. Technology Leadership Involves more than hardware and software Seven major areas: - strategy: focus upon alignment and planning - structure: focus upon becoming an e-organization - systems: technology integration - staffing: developing a strong pool of skills - skills: developing the necessary knowledge - style: add value to customers - shared values: must build value to the organization 73
- 68. Service Leadership Established strategies of customer still apply Internet service strength derived from providing additional information to the customer Internet provides a low-cost, high-quality service channel with a global reach Call centre strategy must be defined E-mail interface channel must be defined 74
- 69. Brand Leadership Branding strength comes from being a first mover Brand reinforcement is a continuous task Brand positioning can be defined using the Internet service value chain Brand followers need to reposition as quickly and effectively as possible Four brand 75
- 70. Developing a Winning E-strategy Ensure that the project is backed by senior management Develop a strategy before a Web presence Develop a strategy by focusing on technology, branding, marketing and service Identify and use knowledge in the organization Strategy must add value for customers and must change as the requirements of the customers change 76
- 71. The Three Approaches to Strategy Position approach: “Where should we be vs. our competition?” Resources approach: “what resources should we possess?” Simple rules approach: “What processes should we follow?” 77
- 72. Three Approaches to Strategy Position Resources Simple Rules Strategic Logic • Establish position • Leverage resources • Pursue opportunities • Identify an attractive • Establish a vision • Jump into the confusion market Strategic Steps • Locate a defensible • Build resources •Keep moving position •Leverage across markets •Seize opportunities • Fortify and defend •Finish strong Strategic Question • Where should we be? • What should we be? • How should we proceed? • Unique, valuable position • Unique, valuable, • Key processes and Source of with tightly integrated inimitable resources unique simple rules Advantage activity system • Slowly changing, well- • Moderately changing, • Rapidly changing, Works Best In structured markets well structured markets ambiguous markets Duration of • Sustained • Sustained • Unpredictable Advantage • It will be too difficult to • Company will be too slow • Managers will be too Risk alter position as conditions to build new resources as tentative in executing on change conditions change promising opportunities Performance Goal • Profitability • Long-term dominance • Growth 78
- 73. Business Model 79
- 74. Business Models A method of doing business by which a company can generate revenue to sustain itself Spells out where the company is positioned in the value chain Business models are a component of a business plan or a business case 80
- 75. Business Plans & Business Cases Business plan: Business case: - A written document - A written document that identifies the that is used by business goals and managers to garner outlines the plan of funding for specific how to achieve them applications or projects; its major emphasis is the justification for a specific investment 81
- 76. The Content of a Business Plan Mission statement and Marketing and sales company description plan The management team Operations plan The market and the Financial projections customers and plans The industry and Risk analysis competition Technology analysis The specifics of the products and/or services 82
- 77. Structure of Business Models All business models must specify their revenue model (the description of how the company or an E-commerce project will earn revenue) Value proposition is the description of the benefits a company can derive from using EC Revenue sources are - Transaction fees - Affiliate fees - Subscription fees - Sales - Advertisement fees - Other models 83
- 78. Business Models in E-commerce Method of doing business Well-planned model gives a competitive advantage Impacts on sustainability and growth Three areas: - value stream - revenue stream - logistical stream 84
- 79. Transaction costs Cost of providing some good or service through the market Effects of e-commerce and the internet that impacts the business model Searching for an obtaining information Participating in a market Policing and enforcing transactions Bargaining and decision costs Actual cost of buying or selling the product 85
- 80. Value Stream Create long-term sustainability Benefit for business stakeholders Can be achieved in four ways: - creation/participation in an e-marketplace - creation/participation of virtual communities - additional value offers - exploitation of offers 86
- 81. Creation/participation in an e-marketplace Reduce transaction costs directly/indirectly Economics of e-market similar to traditional market Can be setup by supplier/buyer or run independently Buyer value: - reduced costs - improved service - convenience Supplier value: - reduced costs - differentiation - reduced lead time 87
- 82. Creation/participation of virtual communities Bringing together members of a community Larger communities mean larger sources Improves customer service 88
- 83. Additional value offers Valueis added by improving product mix Through association or partnership Can be achieved with minimum costs Can be integrated into the host sites 89
- 84. Exploitation of offers E-commerce/Internet economy founded on information Value can be added by using this information Target customers demographically Can bridge the uncertainty gap Can post RFP’s 90
- 85. Revenue Stream Short-term realization of value proposition Direct: - cost reduction - free offerings of service/products - pricing strategies Indirect: - internet advertising - selling customer information - joining affiliate programs 91
- 86. Logistical stream Examines organization restructure to deliver value added and revenue streams Issues such as: - organizational culture - pre/post restructuring - implementing information - communication and training - reward systems for motivation 92
- 87. Kinds of business models Brokerage: market makers bring together buyer and sellers Advertising: web advertising providing advertising messages Infomediary: collecting and disseminating information 94
- 88. Assessing a business model Can be assessed by looking at the marketing strategy Can also be assessed by technology - imitation - complementary assets Financial measures Competitor benchmarking Market analysis 95
- 89. Traditional vs. New Business Models Traditional New Business Production Mass Personalized Manufactures push Customer Pull Distribution Middleman Direct Communications Closed Open Finance Slow Fast Difficult Easier Markets Local Global Mass Niche Assets Physical Virtual 96
- 90. Consumer Decision Process Problem --Recognition Problem Recognition PRE-PURCHASE Information Search Information Search Evaluation of Alternatives Evaluation of Alternatives PURCHASE Purchase Decision Purchase Decision Satisfaction Satisfaction POST-PURCHASE Loyalty Loyalty Disposal Disposal 97
- 91. Consumer Decision Process — Flower Example Flowers Need recognition, potentially triggered by a Problem --Recognition Problem Recognition holiday, anniversary or everyday events Search for ideas and offerings, including: Pre-Purchase Information Search Information Search – Available on-line and off-line stores – Gift ideas and recommendations – Advice on selection style and match Evaluation of alternatives along a number of Evaluation of Alternatives Evaluation of Alternatives dimensions, such as price, appeal, availability, etc. Purchase decision Purchase Purchase Decision Purchase Decision Message selection (medium and content) Post-sales support Satisfaction Satisfaction – Order tracking – Customer service Post- Education on flowers and decoration Purchase Loyalty Loyalty Post sales perks Disposal Disposal 98
- 92. Metrics Metrics: If it moves, measure it! Measures of performance; may be quantitative or qualitative Response Security and privacy times Site availability On-time order Download times fulfillment Return policy Timeliness Navigability 99
Editor's Notes
- #3: Sellers are generally recognized in two different forms: retailers who sell directly to consumers and wholesalers or distributors who sell to retailers A producer is always, by necessity, a seller as well. The producer sells the products produced to wholesalers, retailers or directly to the consumer. and other businesses.
- #4: This process is known as marketing . If no one knows that your place exists, you will never sell anything. Many businesses do not require you to pay for the product or service at the time of delivery, and some products and services are delivered continuously (water, power, phone and pagers are like this). That gets into the whole area of billing and collections . In mail-order businesses the item is packaged and mailed. Large items must be loaded onto trucks or trains and shipped.
- #6: Fac res share – all data, programs are available to everyone regardless of location Reliable – back up resources. Can use alternative resources on the network Cost – small computer has a better price/performance ratio than a large one. Using nnetworks is cheaper than one computer directly contacting another Medium – exchange of text graphics, video can take place in real time.
- #7: Internet Definitions Business Models
- #21: dissemination – distributing, giving out allocating, information Stakeholders – customers, suppliers, partners
- #22: Such as share holder info, product specs. And details, corporate policies. Use to inform the public such as plane crash, eg. Swiss air
- #23: Collect info in order to profile them and develop marketing strategies. Manual input from visitors through surveys, feedback, online questions. Auto- uses log files to track users and their habits. Eg cookies server log files.
- #24: Banner adv. Placed on a website Affil prog. – places a link to website form another site Reg. – ensure that the website can be found, register with search engines Trad mark – promoting online for customers, encouraging visitors to become customers
- #25: Main use of website is to generate revenue through direct selling of products and services. One of the major benefits is that a whole range of products and services can be displayed. Cross – whole range of products and services can be displayed on the web, employ cross to ensure max value is obtained from the customer. Amazon lists books from an author, gives a list of other books bought from that author. Can customize websites to cater for ind. Customers React to competition due to the reactive and dynamic nature of the Net. Can react to competitive offers and pricing. Can provide customer service through online queries, e-mail, FAQ’s, provide answers through feedback.
- #26: Tele comm factors – infrastructure, architecture, pricing, range of service available, speed of development Political – gov’t incentive to use and support technology, laws supporting or restricting use Social – skill of workforce, number of users, accessibility to computers, level of education, PZc skills, computer literacy Economic – GDP, average income, cost of technology, cost of access
- #27: Comm benefits, in terms of cost savings and improved efficiency Requirements if you are not up to date customers go somewhere else
- #29: Websites being hacked for information, not all websites are functionally the same, trying to catch up. Not being left behind, constantly changing business models, competition from national and international companies, cannot communicate with another system due to platform incompatibility. Consumers, need for equipment which means initial costs, IT technological knowledge, security laws are not universal, varies from country to country, unable to feel or touch goods. Society, erosion of personal skills, more comfortable interacting with screens than people. Division between the haves and haves not because of technology. Rely on tech. which may not be available in developing countries. JIT can possibly cripple an economy if they have low stocks.
- #31: Web based tech. being used Websites – used for displaying company’s product or services over the Net, incorporate other kinds of technology such as banners for promotion, shopping carts to enable transactions E-mail- to improve and facilitate comm. And info dissemination and capture Search eng.- for promoting corporate website and improving the information flow Inter comm.- for enabling collaborative working with stake holders and improved comm. And service delivery to cust.
- #36: E-crm – enabling 360 degrees customer visibility by capturing relationships and interaction throughout the customer’s lifetime E-mark- identifying prospective cust tracking and collecting data E-service – bundled services through the net, determine cust req., acquiring the service or product, after sales service support. E-market, e-auction – enable commercial exchange of goods and services with customers over the net
- #40: E-business conducting business on the Net, not only buying and selling but also servicing customers and collaborating with business partners Often used interchangeably, e-business is everything to do with the back end.
- #43: E-tailers: Amazon.com, CDNow Search Engines & Portals: Yahoo, Excite, Google ISPs: Juno, AOL Transactions Sites: auction sites Content Sites: Newspapers, other databases Enabler Sites: Provide hardware and software the enable internet communication.
- #51: Just as magazines and newspapers can’t exist without advertising, so too with many Web sites.
- #59: Turns a single marketplace into a borderless marketplace, access to people all around the world, cost of creating, processing, distributing etc., has decreased in a paper based env., enables products to be configured to cust specs., ‘pull’ type supply chain mgmt. based on collecting orders and delivering through JIT manufacturing (Dell). In case of software/music sent directly to cust. Immediate to online tracking of products, competition for discounts, bulk ordering. Work from home, reduces travel time, people in rural areas to connect, health services, doctor’s information, etc.
- #62: Enables more individuals to work at home, resulting in less traffic on the roads, less traveling and lower air pollution Allows some merchandise to be sold at lower prices, benefiting less affluent people Enables people in Third World countries and rural areas to enjoy products and services which otherwise are not available to them Facilitates delivery of public services at a reduced cost, increases effectiveness, and/or improves quality
- #72: New – born on the Net, built on flexibility and agility Trad- established orgs moving onto the net and repositioning themselves to take advantage of that marketplace
- #85: Model – method of doing business whereby and organization can sustain itself in the short term and develop and grow in the medium to long term. Well planned and successful will give compet. Advantage enabling it to gain more profits. Affects the ability to survive, keep going and growth of an e-business Revenue – short term realization of value proposition Value – create long term sustainability of the business Logistical – restructure the corporate value chain
- #86: One of the more prominent (well known important) effects on e-comm and the net that impacts on the business model is trans costs. The higher the cost of the product/service and the more specialized and complex it is, the higher the transaction cost. Eg. Buying a chocolate bar, buying a hard drive.
- #87: Value – can help keep the business going, benefit to various business stakeholders of offering something distinctive from their competitors. Can arise out of reduced transaction costs, lower product cost, improved product or service, brand name and reputation.
- #88: E-market – is an Internet based broker of goods and services in a community of buyers and sellers. Directly in terms of cash saved, indirect in terms of improved efficiency. Economics – markets will grow and develop if stakeholders are benefiting ad if there is equal unrestricted and free movement to enter/exit the market Suppliers offer differentiated products/services to attract buyers, as more suppliers joinn the market they expand the benefits and choices for buyers. This attracts more buyers. As more buyers join the market benefiting from the reduced costs, suppliers benefit form wider and accessible cust. Base. Eg. Chemconnect market place for buying/selling chemicals. Pay subscription to chemcomnnect.
- #89: Bringing together members of a community where they can exchange ideas or info. Adding value in a number of ways. Expertise, experience, knowledge. Lloyd’s bank has success4business, where business customers interact with each other exchanging ideas and expertise. Microsoft set up their website to allow downloads software patches to their products
- #90: Value is added by improving product mix being offered by widening the variety of product or service for ex. By into the one stop shop where cust can access all that they need. Widening the product mix can be achieved through association or partnership with other org. offering complementary services or products. Eg. E-bay offers a range of services, such as fraud protection, security, third party escrow. Other services can be intergrated in the the host site such as Amazon, with tracking, delivery, sales etc.
- #91: This info can be either consumed, collected analyzed and manipulated in some way. Value adde by capturing this information and personalizing it, such as personal web[age Travelocity. This adds value by improving customer satisfaction , use data to suggest personalized choices. Lack of information lack of info cannot link buyers and sellers, also benefit to sellers, buyers cannot compare and shop. Where there is a wide variety of products and high levels of doubt about consumption, websites link people and sellers together known as infomediaries. Such as travel and tourism. Priceline . Com set a price and it find the info.
- #92: Revenue stream is the source of information for the org. and is the financ. Realization of its success year after year. Can be direct or indirect depends on the flow of revenue. Direct – as a result of what the org. produces to sell, saves costs by direct dist. Onlins no postage, eliminating physical storage but high initial cost for development. AOL spent millions to develop its software and brand, once developed the cost in maintaining each cust is small. Theory is that by offering free samples the cust. Is locked in for future purchases. High switching costs ADOBE.pdf. Pricing different products and different markets require different pricing in order to max. revenues. Period price changes or dynamic price customization. Periodic means depending on the popularity of the product eg. Travel, car rental, hotels. Dynamic involves the use of info collected from customers and allows for different prices for different customers. Eg. Dell Premier pages, clothing retailers, Indirect – additional source of revenue that is not core to the org. Int adv. Placing banner ads for other services, monthly fees. Selling cust info. Details gathered during a site visit. Affiliate paid to send a customer to another website.
- #93: Inter connected with value and revenue. Concept of logistical stream is based on the theory of value chain which examines the connected activities and processes within and outside the org. and how these activities are linked. This process allows the org. to reconfigure activities or re-engineer processes to create value for the customer or lower costs for the org. resulting in higher profit margins or increased revenue streams.
- #94: Disinter – internet has shrunk the value chain by offering products directly from the supplier to the buyer eg. Dell Re-inter – adding affiliated programs on amazon.com Infomed – abundance of data needs to be captured and broken down into smaller fragments can be seen as brokers of info. Eg. Autobytel gather info about company, products before buying.
- #96: Markk strat. For example what competitive advantage can be built, market positioning (include product/price position), marketing mix, product-market strategy. Imit – the extent to which tech can be copied, substituted or leapfrogged by competitors. Compl assets control and strength of the capabilities of the org. such as image, reputation, manufacturing, distribution channels, customer service. Easy to imit assets free – difficult to make money; easy to imit but assets are tightly controlled controller of assets make money eg. RC made diet Pepsi/Coke had the assets. Difficult to imit but assets are not important inventor profits. Both difficult then both make money eg. Sony and virgin records. Comp bench analyzing the competitor and their products, services, prices, range of performance, market share. Market analysis understanding the market how it works and the impact of new technology