E commerce the second wave fifth annual edition
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E-Commerce: The Second Wave Fifth Annual Edition. Chapter 12: Planning for Electronic Commerce. Objectives. In this chapter, you will learn about: Planning electronic commerce initiatives Strategies for developing electronic commerce Web sites Managing electronic commerce implementations.

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E commerce the second wave fifth annual edition

E-Commerce: The Second WaveFifth Annual Edition

Chapter 12:

Planning for Electronic Commerce


Objectives

Objectives

In this chapter, you will learn about:

  • Planning electronic commerce initiatives

  • Strategies for developing electronic commerce Web sites

  • Managing electronic commerce implementations

E-Commerce: The Second Wave, Fifth Annual Edition


Planning electronic commerce initiatives

Planning Electronic Commerce Initiatives

  • Objectives of electronic commerce

    • Increasing sales in existing markets

    • Opening new markets

    • Serving existing customers better

    • Identifying new vendors

    • Coordinating more efficiently with existing vendors

    • Recruiting employees more effectively

E-Commerce: The Second Wave, Fifth Annual Edition


Linking objectives to business strategies

Linking Objectives to Business Strategies

  • Downstream strategies

    • Used to improve the value that the business provides to its customers

  • Upstream strategies

    • Focus on reducing costs or generating value

      • Work with suppliers or inbound shipping and freight service providers

E-Commerce: The Second Wave, Fifth Annual Edition


Linking objectives to business strategies continued

Linking Objectives to Business Strategies (Continued)

  • Electronic commerce opportunities can inspire businesses to undertake activities such as

    • Building brands

    • Enhancing existing marketing programs

    • Selling products and services

    • Selling advertising

    • Developing a better understanding of customer needs

E-Commerce: The Second Wave, Fifth Annual Edition


Measuring benefits

Measuring Benefits

  • Tangible benefits of electronic commerce initiatives

    • Increased sales

    • Reduced costs

  • Intangible benefits of electronic commerce initiatives

    • Increased customer satisfaction

E-Commerce: The Second Wave, Fifth Annual Edition


Measuring the benefits of electronic commerce initiatives

Measuring the Benefits of Electronic Commerce Initiatives

E-Commerce: The Second Wave, Fifth Annual Edition


Managing costs

Managing Costs

  • Total cost of ownership

    • Includes costs of hardware, software, design work outsourced, and salaries

  • Change management

    • Process of helping employees cope with changes

  • Opportunity costs

    • Lost benefits from an action not taken

E-Commerce: The Second Wave, Fifth Annual Edition


Comparing benefits to costs

Comparing Benefits to Costs

  • Capital projects (Capital investments)

    • Major investments in equipment, personnel, and other assets

  • Key part of creating business plan for electronic commerce initiatives

    • Identifying potential benefits

    • Identifying costs required to generate benefits

    • Evaluating whether benefits exceed costs

E-Commerce: The Second Wave, Fifth Annual Edition


Cost benefit evaluation of electronic commerce strategy elements

Cost/benefit Evaluation of Electronic Commerce Strategy Elements

E-Commerce: The Second Wave, Fifth Annual Edition


Strategies for developing electronic commerce web sites

Strategies for Developing Electronic Commerce Web Sites

  • Typical early Web site

    • Static brochure not updated frequently

    • Seldom had any capabilities for helping the company’s customers

  • Today’s Web site includes

    • Transaction-processing tools

    • Automated homes for business processes of all kinds

E-Commerce: The Second Wave, Fifth Annual Edition


Increasing complexity of web site functions

Increasing Complexity of Web Site Functions

E-Commerce: The Second Wave, Fifth Annual Edition


Internal development vs outsourcing

Internal Development vs. Outsourcing

  • Outsourcing

    • Hiring another company to provide outside support for all or part of a project

  • Internal team

    • Should include people with enough knowledge about the Internet and its technologies

    • Should be creative thinkers

  • Measuring achievements of internal team is very important

E-Commerce: The Second Wave, Fifth Annual Edition


Early outsourcing

Early Outsourcing

  • Outsource initial site design and development to launch project quickly

  • Outsourcing team trains company’s information systems professionals in the new technology

  • It is best to have

    • Company’s own information systems people working closely with outsourcing team

E-Commerce: The Second Wave, Fifth Annual Edition


Late outsourcing

Late Outsourcing

  • Information systems professionals

    • Do initial design and development work

    • Implement system

    • Operate system until it becomes a stable part of business operation

  • Once company has gained competitive advantage

    • Maintenance of electronic commerce system can be outsourced

E-Commerce: The Second Wave, Fifth Annual Edition


Partial outsourcing

Partial Outsourcing

  • Company identifies specific portions of the project that can be completely:

    • Designed, developed, implemented, and operated by another firm

  • Many smaller Web sites

    • Outsource their e-mail handling and response functions

E-Commerce: The Second Wave, Fifth Annual Edition


Selecting a hosting service

Selecting a Hosting Service

  • Factors to evaluate when selecting a hosting service

    • Functionality

    • Reliability

    • Bandwidth and server scalability

    • Security

    • Backup and disaster recovery

    • Cost

E-Commerce: The Second Wave, Fifth Annual Edition


Managing electronic commerce implementations

Managing Electronic Commerce Implementations

  • Project management

    • Formal techniques for planning and controlling activities undertaken to achieve a specific goal

  • Project plan

    • Includes criteria for cost, schedule, and performance

  • Project management software products

    • Microsoft Project

    • Primavera Project Planner

E-Commerce: The Second Wave, Fifth Annual Edition


General areas of staffing

General Areas of Staffing

  • Business manager

    • Should be member of internal team that sets objectives for project

  • Project manager

    • Person with specific training or skills in

      • Tracking costs and accomplishment of specific objectives

  • Account manager

    • Keeps track of multiple Web sites in use by a project

E-Commerce: The Second Wave, Fifth Annual Edition


General areas of staffing continued

General Areas of Staffing (Continued)

  • Applications specialists

    • Maintain accounting, human resources, and logistics software

  • Web programmers

    • Design and write underlying code for dynamic database-driven Web pages has increased

  • Web graphics designer

    • Person trained in art, layout, and composition

    • Understands how Web pages are constructed

E-Commerce: The Second Wave, Fifth Annual Edition


General areas of staffing continued1

General Areas of Staffing (Continued)

  • Customer service personnel

    • Help design and implement customer relationship management activities

  • Call center

    • Company that handles incoming customer telephone calls and e-mails for other companies

  • Systems administrator

    • Responsible for the system’s reliable and secure operation

E-Commerce: The Second Wave, Fifth Annual Edition


Postimplementation audit

Postimplementation Audit

  • Formal review of a project after it is up and running

  • Gives managers a chance to examine

    • Objectives

    • Performance specifications

    • Cost estimates

    • Scheduled delivery dates

E-Commerce: The Second Wave, Fifth Annual Edition


Postimplementation audit continued

Postimplementation Audit (Continued)

  • Allows internal team, business manager, and project manager to

    • Raise questions about the project’s objectives

    • Provide feedback on strategies

  • Final report should analyze

    • Project’s overall performance

    • How well the project was administered

    • Specific performance of the project team(s)

E-Commerce: The Second Wave, Fifth Annual Edition


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