Person: Mika Mäkelä Mail: firstname.lastname@example.org Tel: 0500-363269 Web: www.digicomp.fi Year of birth:1981 Birth place: Ähtäri School: University of Vaasa Majority: Industrial management Minor: eCommerce Minor: Business Law Profession: Marketing manager Company: Oy DigiComp Finland Ab
Basics about DigiComp: Official name: DigiComp Finland Oy. Year of establishment: 2002 Employees: 11 Turnover: - 2003 EUR 362.000 2004 EUR 1.385.000 2005 EUR 1.700.000 2006 EUR 2.000.000 (budget) Registered in Vaasa No long term debts Stores are located in: Mustasaari, Pietarsaari, Porvoo and a shop-in-shop in ProGradu. New DigiComp Store to Vaasa 11.2.2006
History: May -02 Idea of HTPC May -02 Idea to use e-commerce for supply chain August -02 Web shop no. I Only one product line Need to expand assortment of products Web shop no. II in august 2003 Hardware and accessories Mass customization of computers Automatic price and logistical updates Web shop no. III September 2004 Automatic product descriptions and product adding Almost 30 000 products Automation of own stock Possibility to manage several stores Automatic order handling
History: Christmas -04 First DigiComp Store to Pietarsaari August -05 Shop-in-Shop in co-operation with ProGradu October -05 DigiComp Store Porvoo Christmas -05 web shop no. IV About 100 000 products Extranet Customer personalization New graphical layout Different web shops for companies and for consumer customers Intelligent search engine Integrated CRM
What does DigiComp offer today: DigiComp wants to offer everything for their customers, hardware, software and services with the best delivery reliability. Our product range is already the largest in Finland, almost 100 000 products. - Computers - Hardware and accessories - Services - Assembly and configuration - After sales-services In autumn we start to offer tailor made web shops, extranets and logistical systems for companies, according to their specific needs and preferences
Customers of DigiComp: Mission of DigiComp is to serve all its clients trough web shop regardless of where the client is located. We put effort on customers that have contract for supplying and we try to get long customer relationships that benefits both parties. Our most important customers: - Software companies - Small and medium sized companies - Government and schools - Large companies
History of eCommerce: 60-70 started mail order business 1990 first graphical www-browser First www-sites were for adults... In the middle of 90´s first known eCommerce companies and web orders 1994 Pizza Hut, you could order pizza to home 1995 www.amazon.com, books 1996 eBay, web auction End of 1990´s people believed that eCommerce would grow rabidly www.boo.com, ”boo hoo” 2003 Amazon.com had first profitable year After 8-years of launching
What are the benefits of being on the net: Open 24/7 Always near the customer You can ”carry” your business No more printed sales material Real time availability and price updates Less money invested to stocks Less ”out of date” stocks Efficient to get facts about sales and marketing Whole business is linked to databases Business can be efficient managed
Problems about being on the net: No direct contact to customer eCommerce has been very little scientifically examined Customers have a need to have an face to face contact with the supplier Problem for customer loyalty Easy to get in and get out Unhealthy price competition Doesn't find reasons for eCommerce to fit to own business Customer segment is not ready to buy over the net In new business areas it is expensive to get customers to buy over the net Not enough ideas, how could we better answer for customer needs.
What are already sold over net: Most of the distributors have an extranet based ordering system for their resellers Standardized products that have strong brand Service providers, barbershops, sport shifts Immaterial rights Tickets, traveling, sport events Experimental: Eyewear: www.glasogondirekt.com Building industry: www.SunSauna.fi Tayloring: www.leftfootcompany.com
What will happened on the net: Virtual interaction Personalization for customers Onsite warranties, customers don't have to leave their homes Services at the customer Systems for customer loyalty Direct sales to end-users from manufactures Bricks-and-Clicks stores before eCommerce hit trough Professional web shop builders and consulting companies
What does it need to go to net: Vision how you could sell your products on the net and why would the customer prefer eCommerce than normal shop Courage to change normal supply chains Risk taking to see if customers could accept eCommerce in own business area Developed business control systems Know brand or huge amount of marketing resources Time
Ideas for conversation: What would you / what would you not buy over net? Do you believe that e-commerce is efficient and saves your money? What should web shops do to get you to their customers? Are web shops reliable? Would you dare to give your money to some one that you have never seen and has nothing solid like a physical store, just website that looks reliable?