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Electronic Commerce Strategy Management 493L April 1, 2002 Professor Kleist Why have an electronic commerce strategy? Electronic Commerce "Strategies for Success" Or, how to win at ecommerce? Objectives for Today’s Class: Why use electronic commerce? Benefits of electronic commerce

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electronic commerce strategy

Electronic Commerce Strategy

Management 493L

April 1, 2002

Professor Kleist

why have an electronic commerce strategy
Why have an electronic commerce strategy?

Electronic Commerce

"Strategies for Success"

Or, how to win at ecommerce?

objectives for today s class
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
why use electronic commerce
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)
benefits to electronic commerce greenstein and feinman 2000 p 3 direct quote
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
reasons to move to ec amor 2000 p 12
Reasons to Move to EC (Amor, 2000, P. 12)
  • Expand market reach
  • Visibility
  • Responsiveness
  • New Services
  • Strengthen business relationships
  • Cost- Reduction
  • Channel Conflicts
ecommerce business strategies
Ecommerce Business Strategies

Corporate Mission and Strategy

MIS Strategy

Web Based Ecommerce Mission

Ecommerce Plan

ecommerce business strategies8
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?
planning for ecommerce amor 2000 p 59 131 135
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
issues of web marketing amor 200 p 137



Dynamic Sites


Free Givaways

Global Village

Color schema

File size

Live Events

Niche Markets






Navigation Aids

Issues of Web Marketing (Amor, 200, p. 137)
why is the web so compelling in a marketing sense bruner 1998 chapter 2
Why is the web so compelling in a marketing sense? (Bruner 1998, Chapter 2)
  • Interactive
  • Personal
  • Infocentric
  • Instantaneous
  • Measurable
  • Flexible
  • Interlinked
  • Economical
  • Resources
enterprise com market leadership in the information age papows 1998
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
new rules for the new economy kelly 1998
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)
sample strategic ec firms ware et al 1998


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.


Sample Strategic EC Firms(Ware, et al. 1998)
outlook for the future based on amor chapter 16
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

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.
internet building blocks pricewaterhousecoopers 2001 technology forecast
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
applications programming interfaces pricewaterhousecoopers 2001 technology forecast
Applications Programming Interfaces (PriceWaterhouseCoopers, 2001 Technology Forecast)
  • Apache
  • CGI
  • API
  • Oracle Request Broker
  • Netscape Server API
server side programming pricewaterhousecoopers 2001 technology forecast
Server Side Programming (PriceWaterhouseCoopers, 2001 Technology Forecast)
  • Java
  • Perl
  • ASP
  • ColdFusion
  • VB
  • Personal Home Page
  • Python
web server products pricewaterhousecoopers 2001 technology forecast
Web server products (PriceWaterhouseCoopers, 2001 Technology Forecast)
  • Apache
  • Microsoft IIS
  • Iplanet
  • IBM/Lotus Domino
improving web server performance pricewaterhousecoopers 2001 technology forecast
Improving Web Server Performance (PriceWaterhouseCoopers, 2001 Technology Forecast)
  • Caching
  • Web balancing
  • SSL Accelerators
client side technologies pricewaterhousecoopers 2001 technology forecast
Client Side Technologies (PriceWaterhouseCoopers, 2001 Technology Forecast)
  • Browser
  • Plug-ins
  • Markup languages
  • SGML
  • XML
  • JavaScript
  • Java
  • ActiveX
schemas frameworks and vocabularies pricewaterhousecoopers 2001 technology forecast
Schemas, Frameworks and Vocabularies (PriceWaterhouseCoopers, 2001 Technology Forecast)
  • XML Schemas
  • Extensible Business Reporting Language
  • DSML
  • XAML
  • eBRL
internet related products and services pricewaterhousecoopers 2001 technology forecast
Internet Related Products and Services (PriceWaterhouseCoopers, 2001 Technology Forecast)
  • Streaming audio and video
  • IP Multicasting
  • Mbone
  • Voice over Ip
  • Cisco’s AVVID