Driving the E-Commerce Revolution

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1 Driving the E-Commerce E Revolution

2 Electronic Commerce Activities Product or service search Price search Activities payments Actual purchase

3 Electronic Commerce Activities -2 Direct selling of goods and/or services over the internet Provision of company homepage Advertising Priced Information Agent Services Research and Developement

4 Niche, Broad or Target Customer Niche - targeting a single customer or a group of customers Broad entire population of appropriate customers

5 Targeting Strategy Strategy Differentiation Cost Leadership Customer segment Niche Broad Focus Internet Differentiation e.g., Jb mountainbikes.com Broad Internet Differentiation e.g., Old tools.com Focus Internet cost leadership e.g., Southwest.com Broad Internet cost leadership e.g., Amazon.com

6 Differentiation (features & services) Developing unique products/services & brand building Providing value added services and customisation through the internet Cost advantage by reducing transaction costs through appropriate use of internet

7 Major Modes Found in E- commerce -1 Four modes: Revenue generating modes Product delivery modes Payment collection modes Operating modes

8 Major Modes Found in E- commerce - 2 i. Revenue Generating Modes Profit from purchase/ sale of goods Agent fees Income from priced packaged information Advertising revenues Priced information Income from sale of aggregated marketing information

9 Major Modes Found in E- commerce - 3 (ii) Product Delivery Modes Physical Maintenance Repairs Replacements Other types of follow-up activity virtual

10 Major Modes Found in E- commerce - 4 (iii) Payment Collection Modes Physical Virtual

11 Major Modes Found in E- commerce - 5 (iv) Operating Modes Completely outsourced operations Completely self- handled operations Hybrid operations

12 Matrix of E Commerce Models Principal Business Models: B2B B2C C2B C2C Single or multiple individual consumers Single or multiple businesses The nature of delivery Customisation Seller characteristics Price selling mechanism

13 Business to Consumer (B2C) Commerce Electronic commerce and technology Consumer behaviour and choice Business processes and marketplace competition Retailing on www Service efficiency Personalisation Socialisation Look & feel of site Incentives security

14 Elements & Resources impacting Electronic Commerce Changes Network practices Cultural change Technology Cost and Time Frame Management Work Process Consultants Integrators vendors

15 Opportunity Development for E-Commerce E Stages Step 1 : look for business opportunities Opportunity development Step 2 : map the opportunities & functions Map all the three steps & form an e commerce opportunity framework Step 3 : Require opportunities with executives

16 Factors in Decision Making Strategy Business Goal Technology Processes Application (Final system)

17 Developing an E Commerce strategy Ensure manageme nt support Involve appropriate parties Good understanding of technology by all involved Focus on high return Think fresh on alternatives Prioritize alternatives E COMMERC E STRATEG Y Develop & agree budget Develop a phased approach Document business case

18 International Strategy Development Direct/ Indirect Does product meet the local needs? Shipping delivery & support Distribution Model Product Suitability Agreements & pricing Fulfillment and support INTERNATIONAL E-COMMERCE Pricing & legal factors The Transaction Localisation Purchase & acquisition Consulting & education for change Transaction & customisation

19 Client/server Paradigm Client program Server TCP/IP Server program Result

20 Reverse Generic Country domain Domain Name System Root-Level arpa In-addr 181 co m edu gov int mil NETORG AB ID hg US cn ZW 53 gun Painter rakr

21 Metadata sales Meta- Data sales ]al is a naughty Girl. She is good but naughty Soghty Girl. She is good but naughty Sonal is ty Girl. She is good but naughty Sonal ighty Girl. She is good but naughty Soghty Girl. She is good but naughty Sos aghty Girl. She is good but naughty

22 FTP client User Interface Protocol Interpreter Data Transfer unit Control connection TCP/IP Data connection server Protocol interpreter Data Transfer unit Local disk Remove disk

23 The Basic Website Communication Proce HTTP request Get HTML file Web Browser Web Server File system Returned HTML file

24 Basic Data Configuration Web browser Web server CGI SCRIPT Back-end Application