dave chaffey, e-business and e-commerce management, 4 th edition, © marketing insights limited 2009...
TRANSCRIPT
![Page 1: Dave Chaffey, E-Business and E-Commerce Management, 4 th Edition, © Marketing Insights Limited 2009 Slide 1.1 Chapter 1 Introduction to e-business and](https://reader035.vdocuments.us/reader035/viewer/2022062409/5697bf701a28abf838c7d80a/html5/thumbnails/1.jpg)
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 1.1
Chapter 1
Introduction to e-business and e-commerce
![Page 2: Dave Chaffey, E-Business and E-Commerce Management, 4 th Edition, © Marketing Insights Limited 2009 Slide 1.1 Chapter 1 Introduction to e-business and](https://reader035.vdocuments.us/reader035/viewer/2022062409/5697bf701a28abf838c7d80a/html5/thumbnails/2.jpg)
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 1.2
Learning outcomes
• Define the meaning and scope of e-business and e-commerce and their different elements
• Summarize the main reasons for adoption of e-commerce and e-business and barriers that may restrict adoption
• Outline the ongoing business challenges of managing e-business and e-commerce in an organization.
![Page 3: Dave Chaffey, E-Business and E-Commerce Management, 4 th Edition, © Marketing Insights Limited 2009 Slide 1.1 Chapter 1 Introduction to e-business and](https://reader035.vdocuments.us/reader035/viewer/2022062409/5697bf701a28abf838c7d80a/html5/thumbnails/3.jpg)
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 1.3
Management issues
• How do we explain the scope and implications 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 do we evaluate our current e-business capabilities?
![Page 4: Dave Chaffey, E-Business and E-Commerce Management, 4 th Edition, © Marketing Insights Limited 2009 Slide 1.1 Chapter 1 Introduction to e-business and](https://reader035.vdocuments.us/reader035/viewer/2022062409/5697bf701a28abf838c7d80a/html5/thumbnails/4.jpg)
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 1.4
Figure 1.1 Google circa 1998Source: Wayback machine archive: http://web.archive.org/web/19981111183552/google.stanford.edu
![Page 5: Dave Chaffey, E-Business and E-Commerce Management, 4 th Edition, © Marketing Insights Limited 2009 Slide 1.1 Chapter 1 Introduction to e-business and](https://reader035.vdocuments.us/reader035/viewer/2022062409/5697bf701a28abf838c7d80a/html5/thumbnails/5.jpg)
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 1.5
E-business innovation and opportunity
• Since Google was launched in 1998 whiche-business startups have transformed the way we work, live and play?
• How has Google innovated in search and its business model?
• See Table 1.1 for some of major innovators
![Page 6: Dave Chaffey, E-Business and E-Commerce Management, 4 th Edition, © Marketing Insights Limited 2009 Slide 1.1 Chapter 1 Introduction to e-business and](https://reader035.vdocuments.us/reader035/viewer/2022062409/5697bf701a28abf838c7d80a/html5/thumbnails/6.jpg)
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 1.6
E-business innovation
• P. 5, Activity 1.1• Discussion
– Which company / website impacted on Internet or the web?
– How do we measure their success?– What made them successful?
![Page 7: Dave Chaffey, E-Business and E-Commerce Management, 4 th Edition, © Marketing Insights Limited 2009 Slide 1.1 Chapter 1 Introduction to e-business and](https://reader035.vdocuments.us/reader035/viewer/2022062409/5697bf701a28abf838c7d80a/html5/thumbnails/7.jpg)
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 1.7
The impact of the Internet on business
• Andy Grove, Chairman of Intel, one of the early adopters of e-commerce, has made a meteorological analogy with the Internet.
• He says:
Is the Internet a typhoon force, a ten times force, or is it a bit of wind? Or is it a force that fundamentally alters our business? (Grove, 1996)
![Page 8: Dave Chaffey, E-Business and E-Commerce Management, 4 th Edition, © Marketing Insights Limited 2009 Slide 1.1 Chapter 1 Introduction to e-business and](https://reader035.vdocuments.us/reader035/viewer/2022062409/5697bf701a28abf838c7d80a/html5/thumbnails/8.jpg)
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 1.8
E-business opportunities
• 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…
– Personalized messages for users• Affiliation
– Partnerships are key in the networked economy
![Page 9: Dave Chaffey, E-Business and E-Commerce Management, 4 th Edition, © Marketing Insights Limited 2009 Slide 1.1 Chapter 1 Introduction to e-business and](https://reader035.vdocuments.us/reader035/viewer/2022062409/5697bf701a28abf838c7d80a/html5/thumbnails/9.jpg)
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 1.9
Internet risks – what can go wrong with a transactional site?
•
•
•
•
•
•
![Page 10: Dave Chaffey, E-Business and E-Commerce Management, 4 th Edition, © Marketing Insights Limited 2009 Slide 1.1 Chapter 1 Introduction to e-business and](https://reader035.vdocuments.us/reader035/viewer/2022062409/5697bf701a28abf838c7d80a/html5/thumbnails/10.jpg)
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 1.10
E-consultancy Interview
• How does HP drive traffic to their site?
• How do they communicate with partners?
• What do they syndicate?
• What’s driving their actions?
• What’s the benefit they can get by doing so?
• How do they manage user reviews?
•
![Page 11: Dave Chaffey, E-Business and E-Commerce Management, 4 th Edition, © Marketing Insights Limited 2009 Slide 1.1 Chapter 1 Introduction to e-business and](https://reader035.vdocuments.us/reader035/viewer/2022062409/5697bf701a28abf838c7d80a/html5/thumbnails/11.jpg)
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 1.11
What is e-commerce and e-business?
• You are attending a role in the e-business team of a global bank
• You anticipate you may be asked the distinction between e-commerce ande-business.
• Write down a definition for each
• E-commerce:–
• E-business:–
![Page 12: Dave Chaffey, E-Business and E-Commerce Management, 4 th Edition, © Marketing Insights Limited 2009 Slide 1.1 Chapter 1 Introduction to e-business and](https://reader035.vdocuments.us/reader035/viewer/2022062409/5697bf701a28abf838c7d80a/html5/thumbnails/12.jpg)
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 1.12
What is e-commerce and e-business?
• E-commerce :– All electronically mediated information
exchange between an organization and its external stakeholders (Chaffey)
– Digitally enabled commercial transactions between and among organizations and individuals
![Page 13: Dave Chaffey, E-Business and E-Commerce Management, 4 th Edition, © Marketing Insights Limited 2009 Slide 1.1 Chapter 1 Introduction to e-business and](https://reader035.vdocuments.us/reader035/viewer/2022062409/5697bf701a28abf838c7d80a/html5/thumbnails/13.jpg)
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 1.13
What is e-commerce and e-business?
• E-business:– All electronically mediated information
exchanges, both within an organization and with external stakeholders supporting the range of business process (Chaffey)
– Digital enablement of transactions and processes within a firm, involving information systems under firm’s control. Does not include commercial transactions involving an exchange of value across organizational boundaries (Laudon)
![Page 14: Dave Chaffey, E-Business and E-Commerce Management, 4 th Edition, © Marketing Insights Limited 2009 Slide 1.1 Chapter 1 Introduction to e-business and](https://reader035.vdocuments.us/reader035/viewer/2022062409/5697bf701a28abf838c7d80a/html5/thumbnails/14.jpg)
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 1.14
What is e-commerce and e-business?
• P. 10, Activity 1.2
• Use Google, Yahoo, and BING to do the search and report the number of hits
![Page 15: Dave Chaffey, E-Business and E-Commerce Management, 4 th Edition, © Marketing Insights Limited 2009 Slide 1.1 Chapter 1 Introduction to e-business and](https://reader035.vdocuments.us/reader035/viewer/2022062409/5697bf701a28abf838c7d80a/html5/thumbnails/15.jpg)
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 1.15
Figure 1.2 The distinction between buy-side and sell-side e-commerce
![Page 16: Dave Chaffey, E-Business and E-Commerce Management, 4 th Edition, © Marketing Insights Limited 2009 Slide 1.1 Chapter 1 Introduction to e-business and](https://reader035.vdocuments.us/reader035/viewer/2022062409/5697bf701a28abf838c7d80a/html5/thumbnails/16.jpg)
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 1.16
Figure 1.3 Three definitions of the relationship between e-commerce and e-business
![Page 17: Dave Chaffey, E-Business and E-Commerce Management, 4 th Edition, © Marketing Insights Limited 2009 Slide 1.1 Chapter 1 Introduction to e-business and](https://reader035.vdocuments.us/reader035/viewer/2022062409/5697bf701a28abf838c7d80a/html5/thumbnails/17.jpg)
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 1.17
What is e-commerce and e-business?
Activity 1.3, P. 11 – Discussion—Question 1
Intranet vs. Extranet
![Page 18: Dave Chaffey, E-Business and E-Commerce Management, 4 th Edition, © Marketing Insights Limited 2009 Slide 1.1 Chapter 1 Introduction to e-business and](https://reader035.vdocuments.us/reader035/viewer/2022062409/5697bf701a28abf838c7d80a/html5/thumbnails/18.jpg)
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 1.18
Intranet vs. Extranet
• P. 11, Activity 1.3
• Discussion—Question 1
![Page 19: Dave Chaffey, E-Business and E-Commerce Management, 4 th Edition, © Marketing Insights Limited 2009 Slide 1.1 Chapter 1 Introduction to e-business and](https://reader035.vdocuments.us/reader035/viewer/2022062409/5697bf701a28abf838c7d80a/html5/thumbnails/19.jpg)
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 1.19
Figure 1.4 The relationship between intranets, extranets and the Internet
![Page 20: Dave Chaffey, E-Business and E-Commerce Management, 4 th Edition, © Marketing Insights Limited 2009 Slide 1.1 Chapter 1 Introduction to e-business and](https://reader035.vdocuments.us/reader035/viewer/2022062409/5697bf701a28abf838c7d80a/html5/thumbnails/20.jpg)
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 1.20
Why Study E-commerce?
• E-commerce technology is different, more powerful than previous technologies
• E-commerce bringing fundamental changes to commerce
• Traditional commerce:– Passive consumer– Sales-force driven– Fixed prices– Information asymmetry
![Page 21: Dave Chaffey, E-Business and E-Commerce Management, 4 th Edition, © Marketing Insights Limited 2009 Slide 1.1 Chapter 1 Introduction to e-business and](https://reader035.vdocuments.us/reader035/viewer/2022062409/5697bf701a28abf838c7d80a/html5/thumbnails/21.jpg)
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 1.21
Unique Features of E-commerce Technology
1. Ubiquity
2. Global reach
3. Universal standards
4. Information richness
5. Interactivity
6. Information density
7. Personalization/customization
8. Social technology
![Page 22: Dave Chaffey, E-Business and E-Commerce Management, 4 th Edition, © Marketing Insights Limited 2009 Slide 1.1 Chapter 1 Introduction to e-business and](https://reader035.vdocuments.us/reader035/viewer/2022062409/5697bf701a28abf838c7d80a/html5/thumbnails/22.jpg)
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 1.22
Origins & Growth of E-commerce
• Precursors:– Electronic Data Interchange (EDI)
• 1995: Beginning of e-commerce– First sales of banner advertisements
• Since then, e-commerce fastest growing form of commerce in the United States
![Page 23: Dave Chaffey, E-Business and E-Commerce Management, 4 th Edition, © Marketing Insights Limited 2009 Slide 1.1 Chapter 1 Introduction to e-business and](https://reader035.vdocuments.us/reader035/viewer/2022062409/5697bf701a28abf838c7d80a/html5/thumbnails/23.jpg)
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 1.23
The Growth of B2C E-commerce
SOURCES: eMarketer, Inc., 2009a; U.S. Census Bureau, 2009b;
![Page 24: Dave Chaffey, E-Business and E-Commerce Management, 4 th Edition, © Marketing Insights Limited 2009 Slide 1.1 Chapter 1 Introduction to e-business and](https://reader035.vdocuments.us/reader035/viewer/2022062409/5697bf701a28abf838c7d80a/html5/thumbnails/24.jpg)
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 1.24
The Growth of B2B E-commerce
SOURCES: U.S. Census Bureau, 2009a; authors’ estimates.
![Page 25: Dave Chaffey, E-Business and E-Commerce Management, 4 th Edition, © Marketing Insights Limited 2009 Slide 1.1 Chapter 1 Introduction to e-business and](https://reader035.vdocuments.us/reader035/viewer/2022062409/5697bf701a28abf838c7d80a/html5/thumbnails/25.jpg)
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 1.25
E-commerce: A Brief History
• 1995–2000: Innovation– Key concepts developed– Dot-coms; heavy venture capital investment
• 2001–2006: Consolidation– Emphasis on business-driven approach
• 2006–Present: Reinvention– Extension of technologies– New models based on user-generated content, social
networking, services
![Page 26: Dave Chaffey, E-Business and E-Commerce Management, 4 th Edition, © Marketing Insights Limited 2009 Slide 1.1 Chapter 1 Introduction to e-business and](https://reader035.vdocuments.us/reader035/viewer/2022062409/5697bf701a28abf838c7d80a/html5/thumbnails/26.jpg)
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 1.26
Types of E-commerce
• Selling Side
– Transaction e-commerce sites
– Service-oriented relationship-building site
– Brand-building sites
– Portal, publisher or media sites
![Page 27: Dave Chaffey, E-Business and E-Commerce Management, 4 th Edition, © Marketing Insights Limited 2009 Slide 1.1 Chapter 1 Introduction to e-business and](https://reader035.vdocuments.us/reader035/viewer/2022062409/5697bf701a28abf838c7d80a/html5/thumbnails/27.jpg)
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 1.27
Types of E-commerce
• Digital Marketing
• The management and execution of marketing using e-media in conjunction with digital data about customer
– Involves using digital technology
• …………
– To achieve these objectives
• …………..
– Through using these marketing tactics
• ………..
![Page 28: Dave Chaffey, E-Business and E-Commerce Management, 4 th Edition, © Marketing Insights Limited 2009 Slide 1.1 Chapter 1 Introduction to e-business and](https://reader035.vdocuments.us/reader035/viewer/2022062409/5697bf701a28abf838c7d80a/html5/thumbnails/28.jpg)
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 1.28
Figure 1.5 First Direct Interactive (www.firstdirect.com)
![Page 29: Dave Chaffey, E-Business and E-Commerce Management, 4 th Edition, © Marketing Insights Limited 2009 Slide 1.1 Chapter 1 Introduction to e-business and](https://reader035.vdocuments.us/reader035/viewer/2022062409/5697bf701a28abf838c7d80a/html5/thumbnails/29.jpg)
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 1.29
Figure 1.6 Blendtec viral campaign micro-site (www.willitblend.com)
![Page 30: Dave Chaffey, E-Business and E-Commerce Management, 4 th Edition, © Marketing Insights Limited 2009 Slide 1.1 Chapter 1 Introduction to e-business and](https://reader035.vdocuments.us/reader035/viewer/2022062409/5697bf701a28abf838c7d80a/html5/thumbnails/30.jpg)
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 1.30
Web 2.0 and Beyond
• Web 2.0
– Features-p. 24
– Web 2 examples
• Web 3.0 Features-pp. 24-25 Box 1.1
– Research the web to discover what Web 3.0 technology and features have been used by which company
![Page 31: Dave Chaffey, E-Business and E-Commerce Management, 4 th Edition, © Marketing Insights Limited 2009 Slide 1.1 Chapter 1 Introduction to e-business and](https://reader035.vdocuments.us/reader035/viewer/2022062409/5697bf701a28abf838c7d80a/html5/thumbnails/31.jpg)
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 1.31
Figure 1.7 Evolution of web technologiesSource: Adapted from Spivack (2007)
![Page 32: Dave Chaffey, E-Business and E-Commerce Management, 4 th Edition, © Marketing Insights Limited 2009 Slide 1.1 Chapter 1 Introduction to e-business and](https://reader035.vdocuments.us/reader035/viewer/2022062409/5697bf701a28abf838c7d80a/html5/thumbnails/32.jpg)
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 1.32
e-Commerce and SCM
• What’s Supply Chain Management (SCM)
– The coordination of all supply activities of an organization from its supplier and partners to its customers
• Value Chain
• How e-Commerce impact SCM?
![Page 33: Dave Chaffey, E-Business and E-Commerce Management, 4 th Edition, © Marketing Insights Limited 2009 Slide 1.1 Chapter 1 Introduction to e-business and](https://reader035.vdocuments.us/reader035/viewer/2022062409/5697bf701a28abf838c7d80a/html5/thumbnails/33.jpg)
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 1.33
Business-Consumer Model of e-Commerce
• P. 26, Fig. 1.8
• Classified by market relationship
– Business-to-Consumer (B2C)
– Business-to-Business (B2B)
– Consumer-to-Consumer (C2C)
• Classified by technology used
– Peer-to-Peer (P2P), e.g., BitTorrent and Napster
– Mobile commerce (M-commerce)
![Page 34: Dave Chaffey, E-Business and E-Commerce Management, 4 th Edition, © Marketing Insights Limited 2009 Slide 1.1 Chapter 1 Introduction to e-business and](https://reader035.vdocuments.us/reader035/viewer/2022062409/5697bf701a28abf838c7d80a/html5/thumbnails/34.jpg)
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 1.34
Figure 1.8 Summary and examples of transaction alternatives between businesses, consumers and governmental organizations
![Page 35: Dave Chaffey, E-Business and E-Commerce Management, 4 th Edition, © Marketing Insights Limited 2009 Slide 1.1 Chapter 1 Introduction to e-business and](https://reader035.vdocuments.us/reader035/viewer/2022062409/5697bf701a28abf838c7d80a/html5/thumbnails/35.jpg)
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 1.35
Mini Case Study
P. 27, Betfair
– How does Betfair gains profit
– What’s the challenges they may face
![Page 36: Dave Chaffey, E-Business and E-Commerce Management, 4 th Edition, © Marketing Insights Limited 2009 Slide 1.1 Chapter 1 Introduction to e-business and](https://reader035.vdocuments.us/reader035/viewer/2022062409/5697bf701a28abf838c7d80a/html5/thumbnails/36.jpg)
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 1.36
Figure 1.9 Betfair peer-to-peer gambling exchange
![Page 37: Dave Chaffey, E-Business and E-Commerce Management, 4 th Edition, © Marketing Insights Limited 2009 Slide 1.1 Chapter 1 Introduction to e-business and](https://reader035.vdocuments.us/reader035/viewer/2022062409/5697bf701a28abf838c7d80a/html5/thumbnails/37.jpg)
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 1.37
E-government
What is?
What are the benefits?
![Page 38: Dave Chaffey, E-Business and E-Commerce Management, 4 th Edition, © Marketing Insights Limited 2009 Slide 1.1 Chapter 1 Introduction to e-business and](https://reader035.vdocuments.us/reader035/viewer/2022062409/5697bf701a28abf838c7d80a/html5/thumbnails/38.jpg)
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 1.38
E-Business Opportunities
what goals does a business can achieve through e-business?
![Page 39: Dave Chaffey, E-Business and E-Commerce Management, 4 th Edition, © Marketing Insights Limited 2009 Slide 1.1 Chapter 1 Introduction to e-business and](https://reader035.vdocuments.us/reader035/viewer/2022062409/5697bf701a28abf838c7d80a/html5/thumbnails/39.jpg)
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 1.39
Business Adoption of E-Commerce/Business
• Activity: You are in a team of advisers at a local business link
• List– Drivers to adoption of sell-side e-commerce by
business and how you can reinforce these by marketing benefits
– Barriers to adoption of sell-side e-commerce by business and how you can reinforce these by stressing benefits
![Page 40: Dave Chaffey, E-Business and E-Commerce Management, 4 th Edition, © Marketing Insights Limited 2009 Slide 1.1 Chapter 1 Introduction to e-business and](https://reader035.vdocuments.us/reader035/viewer/2022062409/5697bf701a28abf838c7d80a/html5/thumbnails/40.jpg)
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 1.40
Cost/efficiency and competitiveness drivers
• Cost/efficiency drivers– Increasing speed with which supplies can be
obtained– Increasing speed with which goods can be
dispatched– Reduced sales and purchasing costs– Reduced operating costs
• Competitiveness drivers– Customer demand– Improving the range and quality of services offered– Avoid losing market share to businesses already
using e-commerce
![Page 41: Dave Chaffey, E-Business and E-Commerce Management, 4 th Edition, © Marketing Insights Limited 2009 Slide 1.1 Chapter 1 Introduction to e-business and](https://reader035.vdocuments.us/reader035/viewer/2022062409/5697bf701a28abf838c7d80a/html5/thumbnails/41.jpg)
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 1.41
Business Adoption of E-Commerce/Business
• Drivers for Adoption-Profit generation and cost reduction
• Tangible and Intangible benefits from e-business.-ref. p.31, table 1.3
![Page 42: Dave Chaffey, E-Business and E-Commerce Management, 4 th Edition, © Marketing Insights Limited 2009 Slide 1.1 Chapter 1 Introduction to e-business and](https://reader035.vdocuments.us/reader035/viewer/2022062409/5697bf701a28abf838c7d80a/html5/thumbnails/42.jpg)
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 1.42
Figure 1.10 Usage of different e-business services in European countriesSource: European Commission, 2008
![Page 43: Dave Chaffey, E-Business and E-Commerce Management, 4 th Edition, © Marketing Insights Limited 2009 Slide 1.1 Chapter 1 Introduction to e-business and](https://reader035.vdocuments.us/reader035/viewer/2022062409/5697bf701a28abf838c7d80a/html5/thumbnails/43.jpg)
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 1.43
Case Study
• P. 33, Case Study 1.2 North West Supplies
• Read the case and discuss the questions on p. 35
![Page 44: Dave Chaffey, E-Business and E-Commerce Management, 4 th Edition, © Marketing Insights Limited 2009 Slide 1.1 Chapter 1 Introduction to e-business and](https://reader035.vdocuments.us/reader035/viewer/2022062409/5697bf701a28abf838c7d80a/html5/thumbnails/44.jpg)
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 1.44
Figure 1.11 North West Supplies Ltd site (www.northwestsupplies.co.uk)Source: Opportunity Wales
![Page 45: Dave Chaffey, E-Business and E-Commerce Management, 4 th Edition, © Marketing Insights Limited 2009 Slide 1.1 Chapter 1 Introduction to e-business and](https://reader035.vdocuments.us/reader035/viewer/2022062409/5697bf701a28abf838c7d80a/html5/thumbnails/45.jpg)
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 1.45
E-business Risks and Barriers for Adoption
• Strategy level issues
• Practical risks
– Ref. p. 35
![Page 46: Dave Chaffey, E-Business and E-Commerce Management, 4 th Edition, © Marketing Insights Limited 2009 Slide 1.1 Chapter 1 Introduction to e-business and](https://reader035.vdocuments.us/reader035/viewer/2022062409/5697bf701a28abf838c7d80a/html5/thumbnails/46.jpg)
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 1.46
Figure 1.12 Barriers to development of online technologiesSource: DTI (2002)
![Page 47: Dave Chaffey, E-Business and E-Commerce Management, 4 th Edition, © Marketing Insights Limited 2009 Slide 1.1 Chapter 1 Introduction to e-business and](https://reader035.vdocuments.us/reader035/viewer/2022062409/5697bf701a28abf838c7d80a/html5/thumbnails/47.jpg)
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 1.47
Potential Limitations on B2C E-commerce*
• Expensive technology
• Sophisticated skill set
• Persistent cultural attraction of physical markets and traditional shopping experiences
• Persistent global inequality limiting access to telephones and computers
• Saturation and ceiling effects
![Page 48: Dave Chaffey, E-Business and E-Commerce Management, 4 th Edition, © Marketing Insights Limited 2009 Slide 1.1 Chapter 1 Introduction to e-business and](https://reader035.vdocuments.us/reader035/viewer/2022062409/5697bf701a28abf838c7d80a/html5/thumbnails/48.jpg)
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 1.48
Evaluating an Organization’s E-business Capability
• Is any company ready for e-commerce?
• Stage model of e-commerce
– –Ref. p. 37 Fig. 1.13
![Page 49: Dave Chaffey, E-Business and E-Commerce Management, 4 th Edition, © Marketing Insights Limited 2009 Slide 1.1 Chapter 1 Introduction to e-business and](https://reader035.vdocuments.us/reader035/viewer/2022062409/5697bf701a28abf838c7d80a/html5/thumbnails/49.jpg)
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 1.49
Figure 1.13 A simple stage model for buy-side and sell-side e-commerce
![Page 50: Dave Chaffey, E-Business and E-Commerce Management, 4 th Edition, © Marketing Insights Limited 2009 Slide 1.1 Chapter 1 Introduction to e-business and](https://reader035.vdocuments.us/reader035/viewer/2022062409/5697bf701a28abf838c7d80a/html5/thumbnails/50.jpg)
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 1.50
Drivers of consumer adoption
Driver Marketing approach
1
2
3
4
5
6
![Page 51: Dave Chaffey, E-Business and E-Commerce Management, 4 th Edition, © Marketing Insights Limited 2009 Slide 1.1 Chapter 1 Introduction to e-business and](https://reader035.vdocuments.us/reader035/viewer/2022062409/5697bf701a28abf838c7d80a/html5/thumbnails/51.jpg)
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 1.51
Barriers to consumer adoption
Barrier Marketing approach
1
2
3
4
5
6
![Page 52: Dave Chaffey, E-Business and E-Commerce Management, 4 th Edition, © Marketing Insights Limited 2009 Slide 1.1 Chapter 1 Introduction to e-business and](https://reader035.vdocuments.us/reader035/viewer/2022062409/5697bf701a28abf838c7d80a/html5/thumbnails/52.jpg)
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 1.52
Figure 1.14 Variation in different online activities by genderSource: UK National Statistics (2006) Individuals accessing the Internet – Report from the UK National Statistics Omnibus Survey . Published online at www.statistics.gov.uk
![Page 53: Dave Chaffey, E-Business and E-Commerce Management, 4 th Edition, © Marketing Insights Limited 2009 Slide 1.1 Chapter 1 Introduction to e-business and](https://reader035.vdocuments.us/reader035/viewer/2022062409/5697bf701a28abf838c7d80a/html5/thumbnails/53.jpg)
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 1.53
Management Responses to E-Commerce
• This will be addressed in the part 2 of the book
![Page 54: Dave Chaffey, E-Business and E-Commerce Management, 4 th Edition, © Marketing Insights Limited 2009 Slide 1.1 Chapter 1 Introduction to e-business and](https://reader035.vdocuments.us/reader035/viewer/2022062409/5697bf701a28abf838c7d80a/html5/thumbnails/54.jpg)
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 1.54
Case Study
• Case Study 1.3. eBay
• Read the case and discuss the question on page 46.
![Page 55: Dave Chaffey, E-Business and E-Commerce Management, 4 th Edition, © Marketing Insights Limited 2009 Slide 1.1 Chapter 1 Introduction to e-business and](https://reader035.vdocuments.us/reader035/viewer/2022062409/5697bf701a28abf838c7d80a/html5/thumbnails/55.jpg)
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 1.55
Next Class
• McKinsey 7S framework was referenced but not introduced in detail. Research the Internet to find some background information about it and bring back your discovery to next class.
• Preview Chapters 2
• Read the Real-world E-Business Experience Interview on pp.53-57.
• Visit the www.morethan .com web site to get a sense on their business
![Page 56: Dave Chaffey, E-Business and E-Commerce Management, 4 th Edition, © Marketing Insights Limited 2009 Slide 1.1 Chapter 1 Introduction to e-business and](https://reader035.vdocuments.us/reader035/viewer/2022062409/5697bf701a28abf838c7d80a/html5/thumbnails/56.jpg)
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 1.56
Next Class
• Be prepared to discuss these questions:
– What type of business does MoreTh>n do?
– What key issues has the interview covered?
– Why people would go online than offline according to the interview?
– Do you see a similar business model in Canada?