ecommerce applications 2007/8 1 session 2 e-commerce: why/how much benefits and costs
TRANSCRIPT
1
Ecommerce Applications 2007/8
Session 2
E-commerce: Why/How Much Benefits and Costs
Session 2 2
Ecommerce Applications 2007/8
Overview
• Broad Benefits• Measurable gains
– Virtual Commerce
• Business Risks• Costs and Barriers
– SME specific issues
• Examples
Session 2 3
Ecommerce Applications 2007/8
Broad Benefits
• Strategic planning and the right approach can:
• Modernise/launch company image• Increase efficiency and cut costs• Attract and retain customers• Improve communication with suppliers and
reduce time to market• Cut transaction costs
Session 2 4
Ecommerce Applications 2007/8
Measurable gains
• Reduce cost of transactions• Better customer information and low cost of
capture• Targeting of special offers and promotions• Reordering facilities promote loyalty• 7/24 global service• Shorter time to market• Market specific:
– Target 80%/20% - specials for key customers
Session 2 5
Ecommerce Applications 2007/8
Benefits – Virtual Commerce
• Virtual expansion is less costly than physical • Easier publishing of detailed product information:
– GM food information, health and diet tips, menu planning, special nutritional support
• Opportunity to diversify– Tesco sells CDs, videos, books and DVDs
• Partnership opportunities– Organic foods, shop at work
Session 2 6
Ecommerce Applications 2007/8
Business Risks
• Integration Chasm– Web orders and payment details– Customer details– Customer enquiries
– Order Management System– Payments and Accounts System– Fulfillment and Distribution System
WEB SYSTEM
BACK-END BUSINESS SYSTEM
Session 2 7
Ecommerce Applications 2007/8
Costs
Alternatives for SMEs• DIY web pages and free ISP• Application Service Provider + DIY• Application Service Provider + Developer• Web Agency• Information is critical: quality and experiencesNews and tool reviews & Tech Offerswww.zdnet.comhttp://www.verio.com/www.shopcreator.co.ukwww.venus.co.uk(Case Studies)
http://www.davechaffey.com/E-commerce-Internet-marketing-case-studies/
Session 2 8
Ecommerce Applications 2007/8
Barriers
• Business issues, NOT technology problems– Limited range of products– Prices not competitive– Difficult to navigate– Not enough information to buy– No receipt or confirmation report– Files too large – download problems– Products out of stock– Not delivered on time
Session 2 9
Ecommerce Applications 2007/8
Barriers: Micro and SME businesses
• E-commerce as an add on to bricks and mortar business• Partnership and trust issues• Access to merchant services• Access to advice and expertise• Fulfilment and Delivery issues• Details of supporting remote purchasers – taxation,
currency, regulations (law, packaging, H&S, contract law)
• Marketing
Session 2 10
Ecommerce Applications 2007/8
Finally
• There is no total solution• E-commerce is constantly evolving, organic, in
the process of becoming• There is a real frontier for explorers• Analysis is the key• Pay attention to the details
Session 2 11
Ecommerce Applications 2007/8
Summary
• Broad Benefits• Measurable gains
– Virtual Commerce
• Business Risks• Costs and Barriers
– SME specific issues
• Examples