Management Information System : E-Commerce
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The document discusses e-commerce and related topics. It defines e-commerce as using the internet and web to conduct business transactions digitally between organizations and individuals. It provides statistics on worldwide spending on e-commerce platforms and internet users. It also discusses different e-commerce models like business-to-consumer, business-to-business, and consumer-to-consumer. Mobile commerce revenue reached $700 billion in 2017. The document contrasts features of digital and traditional markets and goods. It also outlines considerations for building an e-commerce website like determining business objectives, system functionality, and information requirements.
Management Information System : E-Commerce
- 1. E-Commerce: Business & Technology By Mandalay University MBA 8th Batch , Group 7
- 2. E-Commerce E-COMMERCE E-commerce refers to use of the Internet and the Web to transact business. More formally, e-commerce is about digitally enabled commercial transations between and among organizations and individuals.
- 3. E-Commerce E-COMMERCE E-commerce refers to use of the Internet and the Web to transact business. More formally, e-commerce is about digitally enabled commercial transations between and among organizations and individuals. 2015 – Worldwide spending on digital commerce platform software reached approximately $ 4.7 B (a 15% year-over-year increase) 2018 – World population is 7.6 billion and the internet has 4.1 billion users. U.S shoppers spent $5 billion online during 2017’s black Friday. On average, millennials now make 54% of purchases online (versus 49% of non-millennials).
- 4. E-Commerce E-COMMERCE E-commerce refers to use of the Internet and the Web to transact business. More formally, e-commerce is about digitally enabled commercial transations between and among organizations and individuals. 2015 – Worldwide spending on digital commerce platform software reached approximately $ 4.7 B (a 15% year-over-year increase) 2018 – World population is 7.6 billion and the internet has 4.1 billion users. U.S shoppers spent $5 billion online during 2017’s black Friday. On average, millennials now make 54% of purchases online (versus 49% of non-millennials). 69% of B2B businesses say they expect to stop printing catalogs within five years. E-commerce is growing 23% year-over-year. Americans spend 64% of their shopping budget in-store, and 36% online. Mobile commerce hit $700 billion in revenue in 2017, which is more than 300% growth over the past four years.
- 5. E-Commerce E-COMMERCE E-commerce refers to use of the Internet and the Web to transact business. More formally, e-commerce is about digitally enabled commercial transations between and among organizations and individuals. 2015 – Worldwide spending on digital commerce platform software reached approximately $ 4.7 B (a 15% year-over-year increase) 2018 – World population is 7.6 billion and the internet has 4.1 billion users. U.S shoppers spent $5 billion online during 2017’s black Friday. On average, millennials now make 54% of purchases online (versus 49% of non-millennials). 69% of B2B businesses say they expect to stop printing catalogs within five years. E-commerce is growing 23% year-over-year. Americans spend 64% of their shopping budget in-store, and 36% online. Mobile commerce hit $700 billion in revenue in 2017, which is more than 300% growth over the past four years. There are over 500,000 businesses who make use of instagram as an advertising platform. The average order value for customers referred from instagram is $65. YouTube has over a billion users- nearly one-third of people online. Consumers spent $453,46 billion on the web for retail purchases In 2017, a 16% increase compared with $390.99 billion in 2016.
- 6. 0 100 200 300 400 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 The Growth Of E-Commerce B2B Revenue in Billion USD
- 7. Why E-Commerce Is Different ! Ubiquity ! Global Reach ! Universal Standards ! Richness ! Interactivity ! Information Density ! Personalization/Customization ! Social Technology
- 8. Ubiquity Internet/Web technology is available everywhere: at work, at home, and elsewhere via mobile devices. Mobile devices extend service to local areas and merchants.
- 9. Global Reach The technology reaches across national boundaries, around the Earth.
- 10. Universal Standards There is one set of technology standards, namely Internet standards.
- 11. Richness Video, audio, and text messages are possible.
- 12. Interactivity The technology works through interaction with the user.
- 13. Information Density The technology reduces information costs and raises quality.
- 14. Personalization/Customization The technology allows personalized messages to be delivered to individuals as well as groups.
- 15. Social Technology: User Content Generation & Social Networking User content generation and social networking.
- 16. Key Concepts In E-Commerce Digital Markets & Digital Goods In Global Marketplace
- 17. Manufacturer Manufacturer Manufacturer Distributor Retailer Retailer Customer Customer Customer Cost Per Sweater $48.50 $40.34 $20.45 The Benefits Of Disintermediation To The Customer
- 18. Digital Goods Traditional Goods Cost Of Production Hight (Most Of The Cost) Variable Copying Cost Zero Greater Than Zero, High Marginal Cost/Unit Zero Greater Than Zero, High Distributed Delivery Cost Approximately 0 Greater Than Zero, High Inventory Cost Low High Marketing Cost Variable Variable Pricing More Variable (Bundling, Random Pricing Games ) Fixed , Based on unit costs Digital Markets Traditional Market Information asymmetry Asymmetry reduced Asymmetry high Search costs Low High Transaction costs Low (sometimes virtually nothing) High (time, travel) Delayed gratification High (or lower in the case of a digital good) Lower: purchase now Menu costs Low High Dynamic pricing Low cost, instant High cost, delayed Price discrimination Low cost, instant High cost, delayed Market segmentation Low cost, moderate precision High cost, less precision Switching costs Higher/lower (depending on product characteristics) High Network effects Strong Weaker Disintermediation More possible/likely Less possible/unlikely Digital Markets Compared to Traditional Markets
- 19. Digital Goods Traditional Goods Cost Of Production Hight (Most Of The Cost) Variable Copying Cost Zero Greater Than Zero, High Marginal Cost/Unit Zero Greater Than Zero, High Distributed Delivery Cost Approximately 0 Greater Than Zero, High Inventory Cost Low High Marketing Cost Variable Variable Pricing More Variable (Bundling, Random Pricing Games ) Fixed , Based on unit costs
- 21. E-Commerce: Business & Technology Business-To-Consumer (B2C) ❖Retailing Products & Services
- 22. E-Commerce: Business & Technology Consumer-To-Consumer (C2C) ❖ Sell Goods To Other Customers By Auctioning Their Merchandise ❖ Off To The Highest Bidder Or A Fixed Price
- 23. E-Commerce: Business & Technology Business-To-Business (B2B) ❖ Sales Of Goods & Services Among Businesses
- 24. E-Commerce Business Models Portals Gateways to World Wide Web (WWW.)
- 25. E-Commerce Business Models E-Tailer : Virtual Stores & Subsidiaries Of Physical Stores
- 26. E-Commerce Business Models Content Providers Steaming/podcasting musics , videos , music videos , & movies
- 27. E-Commerce Business Models Transaction Broker Saves users money & time by processing online sales transaction & generating a fee each time a transaction occurs Financial Services & Travel Services
- 28. E-Commerce Business Models Market Creator Provides platform where buyers & sellers meet , display products , establish prices
- 29. E-Commerce Business Models Service Provider Sell software as a service(SaaS) / Services Online
- 30. E-Commerce Business Models Community Provider Provide digital online environment where people socially network / transact
- 31. E-Commerce Revenue Models Advertising Revenue Model Highly Specialized , Differentiated Viewership & Those With High Users Attention Can Charge Higher Ads Rates ❖ Banners ❖ Search Engine Optimization ❖ Targeted Advertising ( Selling Keywords ) ❖ Sell User Preference Information
- 32. E-Commerce Revenue Models Sales Revenue Model Revenues from selling goods , informations , or services
- 33. E-Commerce Revenue Models Subscription Revenue Model Contents/Services provided for a price on a regular ongoing basis
- 34. E-Commerce Revenue Models Free/Freemium Revenue Model Basic Contents For Free / Premium For Advanced or Special Features
- 35. E-Commerce Revenue Models Transaction Fee Revenue Model Revenue From Fee For Enabling/Executing A Transaction
- 36. E-Commerce Revenue Models Affiliate Revenue Model Revenue From Referral Fee For Redirecting To A Certain Website
- 37. WEB 1.0 WEB 2.0 ❖ Mostly Read Only Web ❖ Widely Read-Write Web ❖ Focused On Companies ❖ Focused On Communities ❖ Home Pages ❖ Blogs ❖ Owning Contents ❖ Sharing Contents ❖ Page Views ❖ Cost Per Clicks ❖ Eg.Netscape ❖ Eg.Google
- 38. Web 2.0 : Social Networking & The Wisdom Of Crowds Wisdom Of Crowds (n) the collective knowledge of a group of people as expressed through their aggregated actions or opinions
- 42. PERCENT OF TIME THE AUDIENCE WAS CORRECT PERCENT OF TIME THE EXPERTS WERE CORRECT
- 44. How The Wisdom Of Crowds Impacts Your Business Seeking Advices & Opinions Solving Business Problems (Crowdsourcing) Prediction Markets
- 45. E-Commerce Marketing Enables Long Tail Marketing Increase Effectiveness Of Ads Through Behavioral Targeting
- 46. B2B E-Commerce : New Efficiency & Relationships Electronic Data Interchange ( EDI ) EDI is an international standard that allows for digital transactions with minimum error, at maximum speed, with the lowest cost and in a transparent way for any member of a business chain
- 47. Previous Then
- 49. Mobile Digital Platform & Mobile E-Commerce
- 50. Hosting Vs Co-Location • Hosting:Hosting company responsible for ensuring site is accessible 24/7, for monthly fee • Co-location:Firm purchases or leases Web server(with control over its operation),but server is located at vendor’s facility What is M Commerce? • M commerce represented the selling music, videos, ring tones, applications, movies, television and location-based services like local restaurant locators and traffic updates by paying through wireless handheld devices such as mobile phone or tablet Eg. Wavemoney, kbz pay, shop.com, mobile ticketing(airline, cinema, bus, concert/event)
- 51. Hosting Vs Co-Location • Hosting:Hosting company responsible for ensuring site is accessible 24/7, for monthly fee • Co-location:Firm purchases or leases Web server(with control over its operation),but server is located at vendor’s facility M Commerce services and applications q Location-based services q Banking and Financial services q Wireless Advertising and retailing q Games and Entertainment
- 52. Hosting Vs Co-Location • Hosting:Hosting company responsible for ensuring site is accessible 24/7, for monthly fee • Co-location:Firm purchases or leases Web server(with control over its operation),but server is located at vendor’s facility M Commerce services and applications q Location-based services q Banking and Financial services q Wireless Advertising and retailing q Games and Entertainment Location-based services - Built-in global positioning system (GPS) and compass that can identify your precise location and where the phone is pointed Eg. Oway, Grab, Wikitude, Loopt, maps, traffic and weather, directory services Banking and Financial services - Banks and credit card companies provide services to customers to manage their accounts via mobile devices Eg. Mobile banking, MPU, Union pay
- 53. Hosting Vs Co-Location • Hosting:Hosting company responsible for ensuring site is accessible 24/7, for monthly fee • Co-location:Firm purchases or leases Web server(with control over its operation),but server is located at vendor’s facility M Commerce services and applications q Location-based services q Banking and Financial services q Wireless Advertising and retailing q Games and Entertainment Wireless Advertising and Retailing Eg. SMS advertising, shopping, booking and reservations, mobile coupon or voucher, travel vouchers, ads on homepage (Yahoo, Google), mobile application, games and videos, websites Games and Entertainment - Cell phones have developed into portable entertainment platforms Eg. Broadband services like video clips, weather reports, TV shows and live TV programs such as MSNBC and Fox Sports, music and ringtones, mobile apps for social networking sites (facebook, Myspace, Youtube) and games application on mobile phones
- 55. -Business,Technology and social issues -Needed to be systematic approach ( Business , Technology , Social ) :Two most important management challenges -(1)clear understanding of business objectives -(2)how to use the right technology !
- 56. •First .Aware of main areas .Bring a team .Manage closely • Second .Make decision about hardware,software and telecommunications infracture .determining the demands .Easy to find out,view,purchase and receive
- 59. System Analysis : Business Objectives,System Functionality and Information Requirements Business Objectives: • List of capabilities you want your site have System functionalities: • List of information system capabilities needed to achieve business objectives Information requirements • Information elements that system must produce in order to achieve business objectives
- 61. Building The Web:In-House Vs Outsourcing • Outsourcing:Hiring vendors to provide services involved in building site • Build own vs outsourcing • Build your own requires team with diverse skill set; • Choice of software tools; -Adobe Dreamwaver ,Adobe In-Design , & Microsoft Expression - Can Change Business Environment - Unlimited - Number Of Risks - Delaying Entry To Market
- 62. Hosting Vs Co-Location • Hosting:Hosting company responsible for ensuring site is accessible 24/7, for monthly fee • Co-location:Firm purchases or leases Web server(with control over its operation),but server is located at vendor’s facility
- 63. Thank You