ch. 12 planning for electronic commerce kevin lyles
Post on 22-Dec-2015
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Learning ObjectivesLearning Objectives
Planning electronic commerce Planning electronic commerce initiativesinitiatives
Strategies for developing electronic Strategies for developing electronic commerce web sitescommerce web sites
Managing electronic commerce Managing electronic commerce implementationsimplementations
Planning Electronic Planning Electronic Commerce InitiativesCommerce Initiatives
OBJECTIVE OBJECTIVE
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Identifying objectivesIdentifying objectives
Increasing sales in existing marketsIncreasing sales in existing marketsOpening new marketsOpening new marketsServing existing customers betterServing existing customers better Identifying new vendorsIdentifying new vendorsCoordinating more efficiently with Coordinating more efficiently with
existing vendorsexisting vendorsRecruiting employees more Recruiting employees more
effectivelyeffectively
Linking Objectives to Business Linking Objectives to Business StrategiesStrategies
Downstream strategies- improve the Downstream strategies- improve the value that the business provides to value that the business provides to its customersits customers
Upstream strategies- focus on Upstream strategies- focus on reducing costs or generating value reducing costs or generating value by working with suppliers or inbound by working with suppliers or inbound shipping and freight service shipping and freight service providersproviders
Linking Objectives to Business Linking Objectives to Business StrategiesStrategies
Building brandsBuilding brands Enhancing existing marketing programsEnhancing existing marketing programs Selling products and servicesSelling products and services Developing a better understanding of Developing a better understanding of
customers needscustomers needs Improving after-sale service and supportImproving after-sale service and support Purchasing products and servicesPurchasing products and services Managing supply chainsManaging supply chains Operating auctionsOperating auctions Building virtual communities and web Building virtual communities and web
portalsportals
Measuring BenefitsMeasuring Benefits
Tangible- easy to measure. Sales and Tangible- easy to measure. Sales and costs for examplecosts for example
Intangible- difficult to measure. Intangible- difficult to measure. Increased customer satisfactionIncreased customer satisfaction
Online SurveysOnline SurveysMetrics- measurements used to Metrics- measurements used to
assess the value of benefitsassess the value of benefits
Managing CostsManaging Costs
Total Cost of Ownership- everythingTotal Cost of Ownership- everythingChange Management- process of Change Management- process of
helping employees cope with helping employees cope with impending changeimpending change
Opportunity cost- Best use?Opportunity cost- Best use?Web-site costs-79% labor, 10% Web-site costs-79% labor, 10%
software, and 11% hardwaresoftware, and 11% hardware10 of top 100 spent over $10,000,00010 of top 100 spent over $10,000,000
Comparing Benefits to costsComparing Benefits to costs
Capital Projects- major investments Capital Projects- major investments in equipment, personnel, and other in equipment, personnel, and other assetsassets
Return On InvestmentReturn On Investment
ROI= return divided by the ROI= return divided by the investmentinvestment
ROI requires all costs and benefits be ROI requires all costs and benefits be stated in dollarsstated in dollars
ROI focuses on benefits that can be ROI focuses on benefits that can be predictedpredicted
Cisco exampleCisco example
Strategies for Developing Strategies for Developing Electronic Commerce Electronic Commerce
WebsitesWebsites
ObjectiveObjective
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Internal Development vs. Internal Development vs. OutsourcingOutsourcing
The internal teamThe internal teamKnowledgeKnowledgeCreative ThinkersCreative ThinkersCredibilityCredibilitySuccess should be measurableSuccess should be measurable
Early OutsourcingEarly Outsourcing
Initial site design and development Initial site design and development for quick launchfor quick launch
Internal IT should be involvedInternal IT should be involved
Late OutsourcingLate Outsourcing
Design is internalDesign is internalMaintenance is externalMaintenance is externalElectronic commerce lend Electronic commerce lend
themselves more to early themselves more to early outsourcingoutsourcing
Partial OutsourcingPartial Outsourcing
A.K.A. Component outsourcingA.K.A. Component outsourcingOutsource specific portionsOutsource specific portionsExamples: e-payment, e-mail Examples: e-payment, e-mail
systems, Web-hostingsystems, Web-hosting
Selecting a Hosting ServiceSelecting a Hosting Service
FunctionalityFunctionalityReliabilityReliabilityBandwidth and server scalabilityBandwidth and server scalabilitySecuritySecurityBackup and disaster recoveryBackup and disaster recoveryCostCost
New Methods for Implementing New Methods for Implementing Partial OutsourcingPartial Outsourcing
Incubators: Idealab! Was an incubator for Incubators: Idealab! Was an incubator for Carsdirect.com, Overstock.com, and Carsdirect.com, Overstock.com, and Tickets.comTickets.com
Fast VenturingFast Venturing
Managing Electronic Managing Electronic Commerce InitiativesCommerce Initiatives
ObjectiveObjective
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Project ManagementProject Management
Developed by US military in 1950sDeveloped by US military in 1950sProject Plan: Cost, schedule, and Project Plan: Cost, schedule, and
performanceperformanceProject management softwareProject management software
Microsoft ProjectMicrosoft ProjectPrimavera Project PlannerPrimavera Project Planner
Project Portfolio managementProject Portfolio management
Each project is monitored as if it Each project is monitored as if it were in an investment portfoliowere in an investment portfolio
Staffing for Electronic Staffing for Electronic CommerceCommerce
Business ManagersBusiness ManagersProject ManagersProject ManagersAccount ManagersAccount ManagersApplications SpecialistApplications SpecialistWeb ProgrammersWeb ProgrammersWeb Graphics DesignersWeb Graphics DesignersContent CreatorsContent Creators
Staffing for Electronic Staffing for Electronic CommerceCommerce
Content Managers and EditorsContent Managers and EditorsCustomer ServiceCustomer ServiceSystems AdministratorSystems AdministratorNetwork OperationsNetwork OperationsDatabase AdministratorDatabase Administrator