Electronic Commerce Strategy

1. Electronic Commerce Strategy Management 493L April 1, 2002 Professor Kleist

2. Why have an electronic commerce strategy? Electronic Commerce "Strategies for Success" Or, how to win at ecommerce?

3. Objectives for Today’s Class: • Why use electronic commerce? • Benefits of electronic commerce • Ecommerce business strategies • Planning for ecommerce • Issues of Web marketing • Competitive, strategic advantage from electronic commerce • Discussion of business strategies of ecommerce from readings for today • Internet Building Blocks

4. Why use electronic commerce? • Fundamental change in the way businesses interact with each other • Not a fad, but the use of electronic mechanisms to distribute information and provide business customer support • Benefits to consumers (horizontal) • Benefits to business (vertical)

5. Benefits to Electronic Commerce (Greenstein and Feinman 2000, p. 3, direct quote) • Internet and web-based electronic commerce is more affordable than traditional EDI • Internet and web-based electronic commerce allows more business partners to be reached than with traditional EDI • Internet and web-based electronic commerce can reach a more geographically dispersed customer base • Procurement processing costs can be lowered • reductions in inventories • lower cycle times • better customer service • lower sales and marketing costs

6. Reasons to Move to EC (Amor, 2000, P. 12) • Expand market reach • Visibility • Responsiveness • New Services • Strengthen business relationships • Cost- Reduction • Channel Conflicts

7. Ecommerce Business Strategies Corporate Mission and Strategy MIS Strategy Web Based Ecommerce Mission Ecommerce Plan

8. Ecommerce Business Strategies • How much business on web in next 12 months, two years? • Fully digital, web based business, or just fourth channel for your firm (e.g., face to face, telephone or mail)? • How fast is the company going to grow? • What are your expectations for return on investment? Cost reduction?

9. Planning for Ecommerce (Amor, 2000, p. 59, 131-135) • Find a champion • Plan for change • Define a pilot project • Estimate the costs • Measure productivity • Re-engineer business processes • Learn as you go • Prepare for resistance • Prepare for disaster • Create a dark site

10. Brands Change Conciseness Dynamic Sites Finances Free Givaways Global Village Color schema File size Live Events Niche Markets Promotion Syndication Technology Feedback FAQ Navigation Aids Issues of Web Marketing (Amor, 200, p. 137)

11. Why is the web so compelling in a marketing sense? (Bruner 1998, Chapter 2) • Interactive • Personal • Infocentric • Instantaneous • Measurable • Flexible • Interlinked • Economical • Resources

12. Enterprise.com: Market Leadership in the Information Age (Papows 1998) • The Network Centric Era and the Changing Workplace • The Web: Forger of the New IT Economics • The Web/Virtual Office Based Era • The Market Facing Enterprise • Knowledge Management: The Sustainable Competitive Advantage • Converging and Transforming Industries • The Great American Economic Surprise • The Race For Global Leadership

13. Embrace the swarm Increasing returns Plentitude, not scarcity Follow the free Feed the web first Let go at the top From places to spaces No harmony. All flux Relationship tech Opportunities before efficiencies New Rules for the New Economy(Kelly, 1998)

14. Cybergold Inktomi Levi Strauss Ford Motor Company Silicon Graphics McKesson, Inc. Cisco Systems, Inc. Virtual Vineyards, Inc. Mpath Interactive Onsale, Inc. The Gap, Inc. Marshall Industries, Inc. MCA/Universal Sample Strategic EC Firms(Ware, et al. 1998)

15. Outlook for the Future (based on Amor, Chapter 16) • Consumer devices • Privacy and Security • Next Generation Internet • Brokers • Total automation of business • Social impacts • Electronic commerce vs. .coms

16. Discussion: Answer one of the following questions using either today’s readings or the current periodicals distributed in class, and be able to defend your answer with a concrete example. Discuss what aspects of web marketing are also in evidence in your article or website. • How can electronic commerce reduce inventory costs? • How can electronic commerce reduce production cycle time? • How can electronic commerce enhance customer service? • How can electronic commerce help a firm reach its customers in a very low-cost fashion? • Does Internet access make employees more or less productive? • Give an example of electronic commerce in the supplier’s value chain.

17. Internet Building Blocks (PriceWaterhouseCoopers, 2001 Technology Forecast) • Applications Programming Interfaces • Server side programming languages and environments • Web Server Products • Improving Web server performance • Client side technologies • Schemas, frameworks and vocabularies • Internet related products and services

18. Applications Programming Interfaces (PriceWaterhouseCoopers, 2001 Technology Forecast) • Apache • CGI • API • Oracle Request Broker • Netscape Server API

19. Server Side Programming (PriceWaterhouseCoopers, 2001 Technology Forecast) • Java • Perl • ASP • ColdFusion • VB • Personal Home Page • Python

20. Web server products (PriceWaterhouseCoopers, 2001 Technology Forecast) • Apache • Microsoft IIS • Iplanet • IBM/Lotus Domino

21. Improving Web Server Performance (PriceWaterhouseCoopers, 2001 Technology Forecast) • Caching • Web balancing • SSL Accelerators

22. Client Side Technologies (PriceWaterhouseCoopers, 2001 Technology Forecast) • Browser • Plug-ins • Markup languages • SGML • XML • JavaScript • Java • ActiveX

23. Schemas, Frameworks and Vocabularies (PriceWaterhouseCoopers, 2001 Technology Forecast) • XML Schemas • Extensible Business Reporting Language • DSML • XAML • eBRL

24. Internet Related Products and Services (PriceWaterhouseCoopers, 2001 Technology Forecast) • Streaming audio and video • IP Multicasting • Mbone • Voice over Ip • Cisco’s AVVID