e-comma E-commerce developer BM 01: Project planning e-comma e-commerce Developer BM 01: Project Planning

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1 e-comma E-commerce developer BM 01: Project planning

2 E-commerce developer BM 01: Project Planning Training Contents 1. E-commerce: Introduction to Product Planning 2. E-commerce Tools and Solutions 2.1. Preliminary Steps 2.2. Building an e-commerce Website 2.3. Financial Issues 2.4. Promotion and Marketing Plan 3. Project Management Standards

3 E-commerce developer BM 01: Project Planning Sources and further readings CIAPE(2016), En-youth teacher, How to create an e-business project ( ), E-leadership community ftp://ftp.repec.org/opt/redif/repec/rau/jisomg/wi07/jisom-wi07-a5.pdf

4 e-comma 1 E-commerce: introduction to product planning

5 1. E-commerce: Introduction to Product Planning What is E-commerce? Commonly known as Electronic Marketing, it consist of buying and selling. E-commerce provides new outlets and opportunities for both consumers and businesses. Goods and services over electronic systems such as the Internet and other computer networks. E-commerce is nothing more than trade conducted by electronic means and based on electronic data transmission.

6 E-commerce: Introduction to Product Planning Why choose e commerce? From the consumer point of view: lower price, the convenience of shopping, less time to make a purchase, 24/7 purchasing power, the possibility for cross-border purchases, the certainty of legal rights and guarantees, the web reliability, the greater variety of products/services.

7 1. E-commerce: introduction to product planning Why choose e-commerce? From the company point of view: low entry cost, reduces transaction costs, access to the global market, secure market share, 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,

8 E-commerce: Introduction to Product Planning While planning and creating an e-business website, the developer should keep in mind benefits connected both to the clients and the company.

9 e-comma 2 E-commerce tools and solutions

10 How does an e-commerce developer operate? The first thing that has to be done for the development of an e-business is a market research for the sector that this e-business is activated. The aim of this step is the study of the: target group (i.e. characteristics of the potential clients), direct or indirect competitors, 2. E-commerce Tools and Solutions 2.1. Preliminary Steps businesses that may affect the operation of our business (i.e. suppliers). It is necessary to carry out a detailed description of the market by reference to characteristics such as size, stage of development, concentration and rate of technological innovation.

11 . E-commerce Tools and Solutions 2.1. Preliminary Steps The analysis should also identify elements and factors as well as data and projections that will lead to further market development and are crucial for its future pace of development. Another field that has to be analysed is the market shares. This analysis must be based on geographic, demographic, psychographic and other criteria. If the e-business is aiming at different market shares, it is recommended to elaborate an analysis for each of them individually.

12 Effective Market Research is based on 3 basic analyses : 2. E-commerce Tools and Solutions 2.1. Preliminary Steps Competition Analysis P.E.S.T. Analysis SWOT Analysis

13 Competition Analysis 2. E-commerce Tools and Solutions 2.1. Preliminary Steps This analysis begins with an examination of direct competition of the e-business, which means the e-businesses that meet the needs of customers in a similar way (similar products services). The competition analysis is completed by the determination of remaining competitive forces in the sector based for example on Porter's Framework. Porter s five forces analysis is a framework that attempts to analyse the level of competition within an industry and business strategy development.

14 2. E-commerce Tools and Solutions 2.1. Preliminary Steps It examines: Bargaining power of customers (and the possibility of converting them to competitors through integration backwards). Bargaining power of suppliers (and the probability of their conversion to competitors through integration forward). The risk of entry of new competitors. The risk of substitute products.

15 Wider Environment Analysis 2. E-commerce Tools and Solutions 2.1. Preliminary Steps An analysis of the wider business environment in order to identify critical trends and factors affecting the industry and new business. This presentation can be done on the basis of P.E.S.T. Analysis. PEST Analysis (Political, Economic, Social and Technological) describes a framework of macroenvironmental factors used in the environmental scanning component of strategy.

16 2. E-commerce Tools and Solutions 2.1. Preliminary Steps P E S T POLITICAL FACTORS ECONOMIC FACTORS SOCIAL FACTORS TECHNOLOGICAL FACTORS Political Factors: how and at what level the Government intervenes in the economy and entrepreneurship. For example legislation for tax and labour issues, environmental legislation, political stability etc. Economic Factors: affect the purchasing power of customers and the capital cost of enterprise. For example economic growth, inflation, interest rates etc.

17 2. E-commerce Tools and Solutions 2.1. Preliminary Steps P E S T POLITICAL FACTORS ECONOMIC FACTORS SOCIAL FACTORS TECNHOLOGICAL FACTORS Social Factors: demographic and cultural features and/or changes of the social environment. For example, population age distribution, population growth, lifestyle, religious values, emphasis on safety/quality, etc. These factors affect customer demand and size of the potential market. Technological Factors: here are included automation, research and development activities, technology incentives, rate of technological change/innovation and technology maturity. Generally, new technologies create new products, new processes, reduce costs, improve quality, lead to innovation. Technological development creates new markets.

18 SWOT Analysis 2. E-commerce Tools and Solutions 2.1. Preliminary Steps After the presentation of all of the above, the business plan concludes with a SWOT Analysis. SWOT Analysis (alternatively SWOT matrix) is a structured planning method used to evaluate the strengths, weaknesses, opportunities and threats.

19 2. E-commerce Tools and Solutions 2.1. Preliminary Steps The SWOT analysis is a useful strategic tool for mapping the relationship between inside and outside environment of an enterprise. Factors in the indoor environment classified as Strengths or Weaknesses, while agents from the external environment as Opportunities and Threats. Essentially, the SWOT analysis provides to the management of enterprise information appropriate for the matching resources and capabilities of the enterprise with the conditions of the competitive environment in which it operates.

20 2. E-commerce Tools and Solutions 2.1. Preliminary Steps Regarding the communication and transactions between the parties involved, e- commerce is categorized into seven main categories (types of e-commerce transactions, also called business models): Business-to-Business (Β2Β): are companies that include any Internet business selling products online or services to other businesses. Business-to-consumer (B2C): is the most common category from the consumer side. It includes transactions between businesses and consumers. It focuses on retail products and services. Consumer-to-consumer (C2C): the consumer sells directly to other consumers. E.g. people who make sales of items through web sites, advertisements etc. where anyone can sell anything.

21 2. E-commerce Tools and Solutions 2.1. Preliminary Steps Consumer-to-government (C2G): the key characteristics of this category is the fulfilment of tax obligations, the procurement of appropriate certificates etc. Business-to-government (B2G): it covers all transactions between companies and public entities. Government-to-government (G2G): includes the IT application within public organisations and between them. Intra-business commerce (B2E): the main goal of this category is the effective operation of the activities of an enterprise to be able to offer better products and services to its customers.

22 2. E-commerce Tools and Solutions 2.2. Building an e-commerce Website Building ane-commerce Website in 7 Simple Steps: Step 1: Choose a domain for your e-commerce website A custom domain gives your e-commerce store: A recognisable brand that belongs to you e.g. mystore.com. A professional address linked to your domain where people can contact you. Search engine optimisation (SEO) benefits. Step 2: Choose the right platform Choose an e-commerce platform that s flexible and easy to use: a platform that integrates easily with their existing site or allows them to set up a site from scratch in only a few simple steps.

23 2. E-commerce Tools and Solutions 2.2. Building an e-commerce Website Step 3: Design your store: Add pages, products, blog posts, images, text, videos and more to your online store to make your customers feel more comfortable about making the purchase. Make sure to choose a theme that represents your brand and allows you to showcase your products in the best light possible. Other important items for your e-commerce website include: a photo: People like dealing with real people, a store name, a logo: For branding and recognition. Step 4: Set up payments There are two key aspects of payments for your e-commerce website: how customers are going to pay you and how you are going to get those payments into your own bank account. In many cases, this means finding a third party payment processor to act as the go-between.

24 2. E-commerce Tools and Solutions 2.2. Building an e-commerce Website Step 5: Add products Choose your product type (physical, digital or service). Give your product a name and description. Set the price and the quantities available for sale. Create a preview of your item by uploading a photo, an audio file or even a video preview. Step 6: Test the checkout Making sure your website and especially your checkout works on tablets and smartphones. Letting people purchase multiple items at once. Offer free shipping if you can, or be very clear about shipping costs). Step 7: Look after SEO and analytics Use the latest guidance on SEO to help people find your e-commerce website, products, and services online. Integrate with Google Analytics so that you can gain deeper insight into how your marketing efforts are performing.

25 2. E-commerce Tools and Solutions 2.3. Financial Issues Revenue categories for an e-business As all types of companies, an e-business usually uses a revenue model in order to describe in what way and how is planning to gain money and to increase its income. Advertising Model: Income from this model arises from advertisements. Example: Google (AdWords/AdSense), Facebook, etc. Subscription Model: Fees from the members subscription to a website. Example: online Newspapers/Magazines/TV channels, Internet and network providers, etc. Transaction Fee Model: Fees from transactions to the operator of a market place platform. Example: ebay, Amazon, etc. Sales Model: Individuals or wholesales or retailers who sell their own products or services online through an e-shop. Example: many e-shops all around the world. Affiliate Model: fees are coming from the reference of the clients to other links. Example: Amazon, affilinet, etc.

26 2. E-commerce Tools and Solutions 2.3. Financial Issues Expenses categories for the creation of an e-business : Domain Name and Hosting: The domain name cost is usually for one year and it depends on the extension of the domain name (i.e..com,.net,.org,.eu etc). During the last years the price of domain names is cheaper than the previous years. Programming Cost: Includes the cost for the creation of the website and its functions to the final user/visitor as well as the website manager/administrator. Graphic Cost: Includes the static and animation graphics of a website. This category is one of the most important as it is the attraction medium to the users/visitors who could be the potential clients/collaborators. Promotion Cost in Search Engines: This cost is known as Search Engine Optimisation (SEO) of the website. Internet Advertisement Cost: Includes the promotion of the website to other Internet media like Facebook, Youtube, etc. Cost for Legal Advice: All costs related to legal suport.

27 2. E-commerce Tools and Solutions 2.3. Financial Issues Expenses categories after the creation of an e-business Maintenance and Renewal of the website Cost: It includes hosting and technical support of the website with the sole aim of continuous (100% uptime) and high-speed operation of it. Further Internet Advertising Cost: Newsletters ( marketing), banners in portals etc. A cost should be spent for the needs of Google Adwords, as it is one of the best promotion and advertising tools on global level. Functional Cost: Here are included financial support, fixed (monthly) costs (telephone, internet connection, etc). Staff Cost: If there are employees or people who participate and contribute to the development process of the e-business.

28 E-Commerce Topic Consumer Protection 2. E-commerce Tools and Solutions 2.3. Financial Issues Directive(s)/Regulation(s) Directive 2000/31/EC Distance Contracts Directive 97/7/EC Distance Marketing of Consumer Financial Services Directive 2002/65/EC EU Directives and Regulations Pertaining to E-Commerce Copyrights, Database Rights, and Similar Rights Data Protection Database Rights Directive 96/9/EC Copyrights Directive 2001/29/EC General Directive 95/46/EC Privacy and Electronic Communications Directive 97/66/EC Directive 2002/58/EC Private International Law Applicable Law Regulation (EC) No. 593/2008 Jurisdiction Regulation (EC) No. 44/2001 Taxation Directive 2002/38/EC Directive 2006/112/EC Directive 2008/8/EC Directive 2008/9/EC

29 6 Key Benefits of a Strategic E-Marketing Plan: Building Visibility & Brand Awareness Gaining Wider Target Audience Customer Acquisition Lower Marketing Cost Traceable and Measurable Results Customer Retention 2. E-commerce Tools and Solutions 2.4. Promotion and Marketing Plan

30 2. E-commerce Tools and Solutions 2.4. Promotion and Marketing Plan Step 1 - Define Objectives synchronised with strategies; Performance specifications; Cost estimates; Scheduled delivery dates. SITUATION ANALYSIS MARKETING OBJECTIVES MARKETING STRATEGY The organisation's situation and how it got there Goals of the marketing effort Ways of goals achievement MARKETING TACTICS Specific short-term actions to support strategy

31 2. E-commerce Tools and Solutions 2.4. Promotion and Marketing Plan Step 2 - Craft an E-commerce Strategy Target a specific market Build recognition of company name Convey a cutting edge image Conduct market research Interact with existing customers Real-time information about customers, products, etc. Sell products and services Sell more efficiently Advertise in a new medium Generate leads Provide customer service medium Build strong relationships

32 Internet Strategy 2. E-commerce Tools and Solutions 2.4. Promotion and Marketing Plan Internet Product Website Successful design Internet catalogs Reverse auctions Channel Considerations Automated services Effect on Current Intermediaries Disintermediation Can be a cheap method of distribution

33 2. E-commerce Tools and Solutions 2.4. Promotion and Marketing Plan

34 22. E-commerce Tools and Solutions 2.4. Promotion and Marketing Plan MARKETING MIX: The combination of all that is relevant to market a product or service, analysed in a context consistent with the policy (objectives) you have set. This ensemble derives from market analysis and the collection of information about customers (target), product or service, competition and suppliers. The function of the marketing mix is essentially that of realising the corporate and strategic objectives by acting in a harmonious way on the "4P", so as to achieve a unique characterisation of your company.

35 TARGET MARKET 2. E-commerce Tools and Solutions 2.4. Promotion and Marketing Plan MARKETING MIX Place Promotion Product Price

36 e-comma 4 Project management standards

37 3. Project Management Standards The term e-project has been used in context of building e-commerce portals. An e-project is different from traditional software projects as projects are normally short duration projects and technology intensive. E-Commerce project management means more than a simple project management because we are talking about particular features or characteristics of e-commerce activity. E-projects follow the 4D process of Discover, Design, Develop and Deploy (PM Network 2001).

38 3. Project Management Standards The framework of e-commerce project management contains briefly the following knowledge areas: Scope Management, Time Management, Cost Management, Quality Management, Human Resources Management, Communication Management, Risk Management, and Procurement Management. Those knowledge management areas are bound through Project Integration Management using appropriate tools and techniques.

39 3. Project Management Standards In real life every e-commerce project, actually every project, is restricted in different ways by its: scope objectives, time objectives, cost objectives, quality objectives client satisfaction, it is the project manager s duty to balance these competing goals.

40 3. Project Management Standards Some advantages of proper project management are: good project management provides assurance and reduces risk; PM provides the tools and environment to plan, monitor, track, and manage schedules, resources, costs, and quality, PM provides a history or metrics base for future planning as well as good documentation, project members learn and grow by working in a cross-functional team environment.