Introduction to emanagement MGMT 230 WEEK 2: JANUARY 15. Concepts of basic ecommerce
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1 Introduction to emanagement MGMT 230 WEEK 2: JANUARY 15 Concepts of basic ecommerce
2 Today s Class Team Assignments Overview Basic ecommerce Overview Video Case Study Discussion Course Outline Update Timeline, Assignment Value
3 Team Based Project DETAILS POSTED ONLINE: Review online copy and instructions Teams assigned and communication Scenarios have been ed to you. We will have sufficient time to discuss in our upcoming labs. For now, take a step back and think big picture about the opportunities and challenges that exist in developing an ecommerce strategy for these organizations. Technological application can only be considered once you know what you are trying to achieve, who your customers are, etc.
4 Understanding ecommerce
5 Typical ecommerce Process
6 Examples of ecommerce: B2C Direct between the company and consumers. Provides direct selling through online channels. Examples: Dominoes selling me a pizza Apple selling me an ipad
7 Examples of ecommerce: B2B Defined as trade between companies. About 80% of ecommerce Examples: Lumber traders moving inventory between processing facilities Hospital ordering medical supplies for operations Heinz selling ketchup to A&W
8 Examples of ecommerce: C2C Trade between private individuals/consumers. Examples: Renting a room on AirBnB Uber ebay
9 Aspects of the ecommerce Model 1. Value proposition: How a company's product or service fulfills the needs of customers Revenue Model: Define how the company will generate profit Market Opportunity: The revenue potential within a company's intended market space.
10 Tech does not replace Good Marketing Practices Technology is no substitute for a good understanding of the basic principles of marketing. Basic marketing questions: Who is the customer? What does the customer need? What does the customer want? What message do you want the customer to remember? How can information be presented to the customer effectively? How can we utilize/leverage/employ various ecommerce platforms to achieve our goals in this context?
11 ecommerce Value Chain Looking at the value chain for a business helps to define areas of focus: what the business is best at, or where the most emphasis should be placed. Consider 2 bookstores: one that emphasizes on large selection, and one that emphasizes personal service. A focus on large selection should require a comprehensive database, and tools for searching for books in different ways, and to do so with ease and efficiency A focus on personalized service may result in forums for discussions among customers, interaction between customers and employees, etc., emphasizing personalized engagement as a value add
12 Considerations for Businesses Business issues for ecommerce cross the entire range of business activities: How does ecommerce fit with our strategy? Should we change our strategy? What does this mean to our competitive situation? Do we expect return in the short term, or is this a long-term investment? How much will it cost? What do we expect to accomplish? How will we measure the success? How does this affect our sales channels, our partners, and our suppliers?
13 Considerations for Businesses There are two key technology issues: Which technology to use? How to deal with the fast pace of technological change? First issue: Which (and how) technology to apply to the business? ecommerce applications bring together many technologies: the Web, databases, high-speed networking, algorithms, multimedia, etc. Putting them together to form a secure, high-performing, integrated e-commerce system can be challenging.
14 Considerations for Businesses Second issue: how to deal with the fast pace of technological change? Any ecommerce system must be prepared to accommodate and incorporate new technologies as they become available. Why is this important? The key to such adaptability is a coherent system architecture that clearly lays out what is to be accomplished and why. By focusing on the fundamental principles we can adopt new technologies that help us to achieve our goals avoiding new technologies that may seem exciting but do not really fit in with our goals or the system.
15 Social Commerce The use of social networks and social interaction (e.g. Facebook, Twitter, Pinterest, etc) to encourage consumers to buy products and services online. If a friend or someone you know is recommending you to buy a product or service, you are more likely to buy it. Online reviews, consumer forums, etc. provide immediate feedback on quality, reliability for the consumer. Part of many ecommerce strategies. traditional approach: the brand controls the reviews not really social, no trust vs. word-of-mouth, consumer feedback, instant and accessible trust + social proof = $$$ More to follow in week 3
16 Case Study: NIXON WATCHES
17 Class Discussion What were some of Nixon s key needs/opportunities in thinking about their new digital engagement/presence? How well did they consider the end user and how customers would experience the site? What opportunities might they think about moving forward to enhance their customer engagement, and perhaps increase online sales? How have they thought about Social Commerce and how to get their users to engage in a community within their website? Does this matter for their products?
18 Next Class: Wednesday Jan 17 Preparing reports and presentations Developing a website plan How to Website Assignment instructions
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