1 / 37

E-Commerce Strategies

E-Commerce Strategies. Kelly Halbert Verizon E-Business Group December 2000. Definition: E-Commerce. Any business transaction that takes place via digital processes over a network. History of E-Commerce. 1969 ARPANET 1970s Bitnet and Usenet 1970s Electronic Funds Transfer 1980s EDI

erik
Download Presentation

E-Commerce Strategies

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. E-CommerceStrategies Kelly Halbert Verizon E-Business Group December 2000

  2. Definition: E-Commerce Any business transaction that takes place via digital processes over a network

  3. History of E-Commerce • 1969 ARPANET • 1970s Bitnet and Usenet • 1970s Electronic Funds Transfer • 1980s EDI • 1980s Business Commerce • 1992 World Wide Web • 2000 E-Commerce is Expanding Exponentially

  4. Types of E-Commerce • Business-to-Business • Business-to-Consumer

  5. Why E-Commerce? • Everyone else is doing it • Direct-to-Consumer • On-line companies perceived as aggressive • Customer Satisfaction

  6. E-Commerce Forces • Customer Forces • Technological Forces • Economic Forces

  7. Business Imperatives • Lower Costs • Increased Revenues • Increased Speed of Transactions • Reduced Inventory Levels

  8. Benefits of E-Commerce • Manage Supply and Value Chains • Buy and Sell Products on the Internet • Automates business transactions. • Cuts customer service cost and improves the quality of service.

  9. E-Biz Model • Virtual Companies • Automated Supply and Value Chains • Internal Value Chain

  10. B-B Supply Chain

  11. Internal Value Chain

  12. Infonomics • New World Economy • Information

  13. E-Commerce Obstacles

  14. How are Businesses using E-Commerce? • Product Catalogs and Online Buying • Purchase Orders • Logistics Control • Customer Service • Call Centers

  15. Transactions and Functions • EDI – Electronic Data Interchange • EFT – Electronic Funds Transfer • Purchases • Marketing • Customer Service • Inventory • Intranet

  16. Key Components of a Digital Nervous System • Hardware • Software • People • Data • Procedures

  17. Hardware • Servers • Routers • Bridges • Hubs • Switches • Gateways

  18. Software • Web Server Software • Transaction Server Software • Browser • Security

  19. E-Commerce Architecture

  20. Myths • Cheap, Easy, and Lucrative • Everyone is Doing It • Middlemen are Eliminated • All Products become Commodities

  21. Risk Management • Project Related Risks • Technical Risks • Business Risks

  22. Risk Management Alternatives • What are our options and what do those options cost? • What is the risk of not doing something? • Outsourcing vs. Insourcing • Is the technology proven or new?

  23. Top 10 E-Commerce Failure Risks • Project has unclear mission statement. • Project does not have a clear business case. • Project specifications are vague. • Project is due to be delivered in one big chunk. • Project team does not have the experience. • Some team members are not committed. • Project plan does not include time for holidays, vacations, sick days. • Project plan includes no knowledge transfer plan for when consultants leave. • Project schedule was dictated by management without regard to the amount of work required. • Customer, partner, and management expectations are unrealistic.

  24. Cost • Promotional Site = $300,000 • Transactional Site = 1 to 3 Million • The largest cost associated with e-commerce is labor because of IT staffing shortage

  25. Measuring Success • Customer Satisfaction • Business Partner Satisfaction • Number of New Customers • Customer Attrition • Product Availability

  26. Brand ManagementMoving from Brick-and-Mortar to the Virtual World • Create a cyberbrand that attracts customer loyalty • Customer loyalty in cyberspace is much lower than in the real world • Customer retention cost are much higher in cyberspace • Customer acquisition costs are lower in cyberspace

  27. Internet Innovations • Portals – Yahoo! • E-Tailing – Amazon • Auctions – e-Bay • Application Hosting – Application Service Providers

  28. Portals • Gateway to the Web • Search Tool • Links • News • Advertisers

  29. External Service Providers • Internet Service Providers • Web Hosting Providers • Application Server Providers

  30. Choosing a Partner • Trust • Culture • Reputation and Image • Technology • Financial Stability

  31. Independent Software Vendors • ERP Vendors = SAP, Oracle, Peoplesoft • Database Software Manufacturers = Oracle • Web Software Co = iFront, Mercado • Home Productivity = Intuit, Norton

  32. Technical Standards • United Nations’ Electronic Data Interchange for Administration, Commerce, and Transport (UN/EDIFACT). • American National Standards Institute (ANSI)

  33. Tax Issues • State Sales Tax • Foreign Taxes

  34. Legal Issues • Since cyberspace doesn’t really exist as a physical place, where should legal issues be resolved. • The electronic trail is not treated with the same respect as a paper trail.

  35. Top 10 Benefits • Greater market share • Reduces administrative cost • Streamline business processes • Improves relationship between business partners and customers • Equal market access for small and large businesses • New ways to manage supply and value chains • Seamless business operating environment • Makes it possible to buy and sell on the Internet • Automates business transactions • Allows businesses to provide better customer service

  36. Reference Trepper, Charles, E-Commerce Strategies, Microsoft Press, 2000.

  37. Thanks Special Thanks to Chris Jones For His PowerPoint Assistance

More Related