chapter 01d

8/10/2019 Chapter 01d

http://slidepdf.com/reader/full/chapter-01d 1/18

Slide 1.1

Chapter 1

‐

e‐commerce

Slide 1.2

• ‐

and e‐commerce and their different elements

• u mm ar ze

e

ma n

reasons

or

a op on

o

e‐commerce and e‐business and barriers that

may r e s t r c t a opt on

• Use resources to define the extent of adoption

of the Internet as a communications medium

for consumers and businesses

• Outline

the

business

challenges

of

introducing

‐ ‐ .

8/10/2019 Chapter 01d


Slide 1.3

•

of

e‐

business

and

e‐

commerce

to

staff?• What is the full range of benefits of introducing

e‐business and what are the risks?

• How great will the impact of the Internet be on

predicted adoption levels?

Slide 1.4

‐

T h e r e a r e t h r e e c h a r a c t e r i s t i c s o f i n f o r m a t i o n w h i c h

when combined with disruptive technologies can

have major impact on marketplace

• Reach: – Over 1 billion users globally

– Connect to millions of products

• Richness – Detailed product information on 20 billion + pages

indexed by Google. Blogs, videos, feeds…

–

• Affiliation –

8/10/2019 Chapter 01d


Slide 1.5

‐

•

products

and

services

there

are

now

great

,

particularly since many consumers and business

p e o p e now na ura y urn o e we w en

searching for products and services.

• This enables online suppliers to target their

me ssa es

to

consumers

lookin

for

these

roducts

in the search engines through advertising services such

a s G oo l e a nd O ve rt ure Ya ho o s ea rch m ar ke ti n .

Slide 1.6

‐

• There are also significant opportunities for many businesses to

build closer relationships with their existing customers and

suppliers online to achieve customer retention.

• ‐

costs.

• Through high quality online services organization can build

lasting relationships with their stakeholders and achieve “soft lock‐in”. This means customer or supplier continue to use a

service since the find the service valuable and the have

invested a lot of time in learning the service or integrating it

with their system and there are some costs in switching.

. .

have

succeeded

in

migrating

the

majority

of

their

customers

to online booking within few years while acquiring more

c u s o m er s.

8/10/2019 Chapter 01d


Slide 1.7

• Andy

Grove,

Chairman

of

Intel,

one

of

the

early adopters of e‐commerce, has made a

m et eo ro l o i ca l analo with the Internet.

He says:

,

force, or is it a bit of wind? Or is it a force

that fundamentally alters our business?

(Grove, 1996)

Slide 1.8

‐

• Th e ri sks o f introd uci n e‐b u s i n e s s s e r v i c e s v a r

from strategic risks to practical risks.

• One of the main st ra te i c risks is makin the wron

decision

about

e‐

business

investments.

– Some companies have taken advantage of e‐business,

– but others have achieved no return either because the

execution of the plan was flawed or simply because

inappropriate.

• There are also man ractical risks to mana e which

if

ignored

can

lead

to

bad

customer

experiences

and

bad news stories which lead to damage the

repu a on o e company.

8/10/2019 Chapter 01d


Slide 1.9

Internet risks – what can go wrong with a transactional site?

If the customers experience very bad services they

will stop using it and switch to other online options. Examples of poor online customer experience:

• e s t e s t at a ecause o a sp e n v s t o r tra c

after a peak‐hour TV advertising campaign

•

stealing credit card details.

• Problems with fulfilment of oods ordered online

(missing ordered or are delayed)

• Annoying

customers

with

emails

without

their

p e r m s s o n

• Email customer service enquiries from the website

’ .

Slide 1.10

.

• Examine

the

growth

of

the

Internet

use

by

consumers in your country and the

neighbouring countries

. . ‐

8/10/2019 Chapter 01d


Slide 1.11

‐ ‐

• ‐

thought simply to refer to buying and selling using

the

Internet• But e‐commerce involves much more than

electronically mediated financial transactions

between organizations and customers.

• Many commentators refer to e‐commerce as all e e ctron c a y me ate t r an sac t o n s etween an

organization and any third party it deals with. By

‐,

customer requests for further information would

also be considered to be art of e‐commerce."

Slide 1.12

‐ ‐

• ‐

commerce on an organization, it is useful to

‐ ‐

e‐commerce transactions

• uy‐s e e‐commerce r e e r s to t r a n s a c t o n s to

procure resources needed by an organization

rom its s u p p i e r s .

• Sell‐side e‐commerce refers to transactions

involved

with

selling

products

to

an o r a n i za t io n ’s customers.

8/10/2019 Chapter 01d


Slide 1.13

Figure 1.1 - - -

Slide 1.14

‐ ‐

‐

of products online. These include retail sites, travel sites and online banking services.

2. Services oriented

relationship

building

web

site.

Provides information to stimulate purchase and build

purchase online.

3. Brand building site. Provide an experience to support

the brand. Products are not typically available for

online purchase.

. .

about

a

range

of

topics.

Portal

refers

to

a

gateway

of information. This is information both on the site and

links through other sites.

8/10/2019 Chapter 01d


Slide 1.15

• When distinguishing between buy‐side and

sell‐side e‐commerce we are looking at the

different aspects of managing organization’s

supply chain.

• Supply Chain Management (SCM) is the

organization from its suppliers and delivery of .

Slide 1.16

Figure 1.2 ,

consumers and governmental organizations

8/10/2019 Chapter 01d


Slide 1.17

‐

• t he o ri i nal d ef in it io n b IB M wh ic h wa s on e of t he f i rst

suppliers to use the term in 1997 to promote its

services:• "e‐business e’biz’nis – the transformation of key

business processes through the use of Internet “.

• The key business processes are the organizational processes or units in the centre of Figure 1.1. They

include research and development, marketing, manufacturing and inbound and outbound logistics. The

‐ ‐

the sell‐side e‐commerce transactions with customers

can also be considered to be key business processes.

Slide 1.18

‐

‐

within organizations.

strategy and operations. For example, ‘our

‐

strategy (or E‐business technology)’.

‐

describe businesses that mainly operate online, . . ‐

streets

and

seek

to

minimize

customer‐

service

and

‘ ‐ ’ .

8/10/2019 Chapter 01d


Slide 1.19

Figure 1.3 . . .

Slide 1.20

Figure 1.4 - -

8/10/2019 Chapter 01d


Slide 1.21

Figure 1.5 Source : MORI Technology Tracker, January 2006. See www.mori.com/technology/techtracker.shtml for latest details

Slide 1.22

• Content: This means more detailed in‐de th

information to support the buying process for

transactional or relationship‐building sites

• us om za on:

persona za on

roug

we

pages or email alerts

•

forums, chat rooms, and blog comments.• Convenience: service is available all time from

your desktop• Choice: Web gives a wider choice of products and

.

• Cost reduction:

on

‐line

traders

have

lower

cost

‐base

8/10/2019 Chapter 01d


Slide 1.23

•

• Lack of

trust

• Security problems

• Lack of skills

• Cost

Slide 1.24

Activity – drivers and barriers to

adoption•

link (a local government agency encouraging

‐

• List:

– Drivers to adoption of sell‐side e‐commerce by

business and how you can reinforce these by

mar e ng ene s .

– Barriers to adoption of sell‐side e‐commerce by

u s n e s s an ow you can r e n o r c e ese y

stressing

benefits.

8/10/2019 Chapter 01d


Slide 1.25

Cost/efficiency and competitiveness

drivers•

– Increasing speed with which supplies can be obtained

–

– Reduced sales and purchasing costs

– .

• Competitiveness drivers

– u s o me r eman

– Improving the range and quality of services offered

– vo o s n g mar e s are o u s n e s s e s a rea y u s n g e‐

commerce.

Slide 1.26

I ncreased sales from new sales leads giving rise to

increased revenue from:

– new customers, new markets

Corporate image communication

Enhancement of brand

More rapid, more responsive marketing

– ex st ng customers repeat‐se ng

– existing

customers

(cross‐

selling).

Marketing cost reductions from:

– reduced time in customer service

c o m m u n c a t o n s nc u ng PR

Faster

product

development

lifecycle

enabling

faster response to market needs

Improved customer service

– on ne s a e s

– reduced printing and distribution costs of

marketing communications.

Supply‐chain cost reductions from:

L e a rn n g or t e uture

Meeting customer expectations to have a web

site

I dentifying new partners, supporting existing

– re uce e v e s o n v en o r y

– increased competition from suppliers

– shorter cycle time in ordering.

Administrative cost reductions from more efficient

p a r n e rs e er

Better management of marketing information

and customer information

Feedback from customers on products

ro u n e u s n e s s processes suc as r ec ru m en ,

invoice payment and holiday authorization.

8/10/2019 Chapter 01d


Slide 1.27

Figure 1.6 Source : DTI (2002)

Slide 1.28

Figure 1.7 . . .Source : Opportunity Wales

8/10/2019 Chapter 01d


Slide 1.29

Figure 1.8 -Source : Eurostat, Community Survey on ICT usage in enterprises, eEurope (2005) Information Society Benchmarking Report, © European Communities 2005,

http://europa.eu.int/information_society

Slide 1.30

Figure 1.9 Source : DTI (2002)

8/10/2019 Chapter 01d


Slide 1.31

•

• Turnover £100m

• –

– See www.globalcomposites.com

• –

and agents

• C om e ti to rs :

– Derakan (www.dow.com/derakane)

– Scott

Bader

(www.scottbader.com ) – Owens Corning (www.owenscorning.com )

Slide 1.32

• ,

• Products – Kitchenware

• Distribution

–

• Competitors

– Cooking.com (www.cooking.com)

– Lakeland www.lakelandlimited.com

– Tupperware

(www.tupperware.com).

8/10/2019 Chapter 01d


Slide 1.33

Activity – Benefits to B2B and B2C

Company• .

• Give

examples

of

these

benefits

of

an

online

. to each: –

– New capability

–

– Customer service

– – Competitive advantage

Slide 1.34

Figure 1.10 Source : Adapted from Waterman et al . (1980)

8/10/2019 Chapter 01d


Slide 1.35

Element of 7S model Application to digital marketing team Key issues from practice and literature

Strategy The si gni fi cance o f di gi tal marketi ng i n Gai ni ng appro pri ate budgets and demo nstrati ng / delivering

i nfl uenci ng and suppo rti ng organisations'

strategy

value and R OI from budgets. Annual pl anni ng appro ach.

Techniques fo r usi ng di gi tal marketi ng to i mpact organisation

strategy

Techniques fo r al i gni ng di gi tal strategy wi th o rgani sati o nal and

m a r ke t i n s t ra t e

Structure The modification o f organizational structure to

suppo rt

di gi tal

marketing. Integration

o f

team

wi th

o ther

management,

marketi ng

(corporate communications, brand marketing, direct marketing)

an s a

Use o f cross‐functi o nal teams and steeri ng groups

Inso urci ng vs. o utso urci ng

The development o f speci fi c processes, Campai gn pl anni ng appro ach‐integration

Systems procedures o r information systems to suppo rt

di gi tal marketing

Managi ng/ shari ng customer information

Managi ng content qual i ty

Uni fi ed repo rti ng o f di gi tal marketi ng effectiveness

In‐ho use vs. ex ternal best‐o f ‐breed vs. ex ternal integrated

Staff The breakdown o f staff i n terms o f thei r

backgro und and characteri sti cs such as IT vs.

Marketi ng,

use

o f

contractors/consultants,

age

Inso urci ng vs. o utso urci ng

Achi evi ng senior management buy‐in/involvement wi th di gi tal

marketingan sex . a r e cr u m en an r e en o n. r ua w or n g

Staff development and trai ni ng

Slide 1.36

Styl e

Incl udes bo th the way i n whi ch key

managers behave i n achi evi ng the

o r a n iz at i on s ' o a ls a n d t h e c ul t ur a l st l e

Relates to role o f di gi tal marketing team i n i nfl uenci ng

strategy –

i t i s i t d n a m i c a n d i n f lu e n t ia l o r c o n s e r va t i ve a n d

o f the organization as a who l e.

looking fo r a voice

Skills

Di sti ncti ve capabi l i ti es o f key staff, but

c a n b e i nt e r r et e d a s s e ci f ic s k i ll‐s e t s o f

Staff skills i n speci fi c areas: suppl i er selection, pro ject

management, Content management, speci fi c e‐

m ar ke ti n a r oa ch es S EO P PC a ff il ia te m ar ke ti n e‐

team

members.

, , ,

mai l

marketi ng,

online

adverti si ng)

Superordinate goals

The gui di ng co ncepts o f the di gi tal

marketi ng o rgani sati o n whi ch are al so

Improving the perception o f the i mpo rtance and

effectiveness o f the di gi tal marketing team amo ngst

.

i nternal and ex ternal perception o f these

go al s may vary

generalists and IT)

chapter 01d

Documents