Better by Design : Applying qualitative research processes to government initiatives
Applying Ecommerce To Local Government
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Applying Applying ecommerce ecommerce to to local government local government
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[This is a rough, unedited crib of the actual talk given at the ALGIM 2010 Web Symposium. Also I went over my allocated time so I’ve elaborated on a few areas. If you have feedback on these notes, please write to me: [email protected] or twitter @mathewsanders.] Introduction Since the start of this year I’ve been working with the Local Government Services team at Datacom, which is a group of about 20 developers, analysts, and project managers who are dedicated to creating software solutions for local government. But my background and experience is working in ecommerce projects for companies like Air New Zealand, House of Travel, AMI Insurance, The National Bank, Telecom, and New Zealand Lotteries helping to improve their online customer experience. What I want to share with everyone today are some ideas, tools, and thinking that are established in ecommerce, and hopefully get you thinking about how they can be applied to your own projects in local government. Why move from offline to online Often we’re so focused on simply completing online projects that we forget to step back and look at the benefits of why we’re doing these projects in the first place. I believe it’s important, and healthy to step back and reflect on why we’re doing what we’re doing. In ecommerce, I think of there being three main benefits to moving from offline channels to online channels: To reach more people To operate with more efficiency To create new business models and opportunities To reach more people Here’s a Google map showing all the retail locations for Flight Centres in New Zealand. As you can see they have clusters of stores n the main centres of Auckland, Wellington, and Christchurch, and a range of stores scattered in other locations throughout New Zealand. They have a great network, but at the same time if you live outside one of the towns that has a store it’s very difficult to do business with them. And even if you live close to one of their stores you also have to visit them within their opening hours, which might be difficult depending on your work situation. With online channels of course you remove these barriers of time and location, and have the ability to reach anyone who has an internet connection, 24 hours a day. To increase efficiency When you interact with people through offline channels (such as phoning a contact centre or interacting in person in a store) the total cost to interact with people is directly related to the number of people you interact with. For instance, it costs about double the amount to interact with two people as it costs to interact with one, and about triple the amount to interact with three people as it does to interact with one. But online channels can follow a different pattern. The total cost does increase with the number of people that you interact with (because bandwidth and server costs will increase as you reach more people) but it doesn’t follow a linear relationship, instead it doesn’t cost much more to interact with 10,000 people as it costs to interact with 1,000 people. Something exciting happens when you think about costs as cost per interaction instead of total costs. With offline channels, you essentially get a flat rate. It costs about the same to interact with your 50th person as it does you 500th. But with online channels, the cost per interaction decreases with the more people that you interact with, eventually to the point where the cost per interaction trends towards zero. Two perspectives are important here. Economically and psychologically it becomes a lot easier to interact with people. In ecommerce this can allow for businesses to pass on cost savings to customers, or even offer free services. In local government this can allow an organisation to operate with lower cost per interaction. When you’re operating in an offline channel, customer interactions may either be consciously or subconsci
Transcript of Applying Ecommerce To Local Government
Applying Applying ecommerce ecommerce
to to local governmentlocal government
1 2 3
Why move from Why move from offlineoffline to to onlineonline??
Reach Operate Create new
Benefits
Reach
more people
Operate
with more efficiency
Create new models of
opportunity
Reach more people
$$$
Tota
l co
stIncrease efficiency
$
Tota
l co
st
$$$
offline
Co
st /
inte
ract
ion
Increase efficiency
$ online
Co
st /
inte
ract
ion
Increase efficiency
I want to go to Melbourne
Freedom of choice
I want to get a valuation of my property
Freedom of choice
Self
PricePricePricePrice
Ecommerce tradeoffs
Self
service
Ease of useConvenience
Convenience
Local govt tradeoffs
Self
service
Ease of use
service
Don’tDon’t force force
people onlinepeople online
Channel Strategy
But make online But make online
attractive attractive and and easyeasy
Channel Strategy
co-service model
Channel Strategy
New models
New models
Who moves first?
What to build?
Founded in 1998
Liquidated in 2000
$300m investment capital
Pets.com
How it works
Where can I get building consent information?
How it works
The way we think is The way we think is
radically differentradically differentthan the people we than the people we than the people we than the people we
design fordesign for
Inside out(our natural view)(our natural view)(our natural view)(our natural view)
language
Outside in(everyone (everyone (everyone (everyone else’s view)else’s view)else’s view)else’s view)
language
culture
experience
knowledge
research
design delivery
Ask (and listen)
Observe
Explore/Refine
100100100100arrive
35353535 continue online
65656565
}Why?!give up?phone?
exit and…
Measure
}Why?!phone?visit?
people spend more time on more time on other websites than on yours
RequestRequest product product oror serviceservice
Exchange of Exchange of moneymoney
Interactions
Provide Provide information information
Encourage Encourage Participation Participation
RequestRequest product product oror serviceservice
Context
Local governmentLocal governmentresolve or report a resolve or report a problem, apply for problem, apply for consent, request consent, request
Ecommerce Ecommerce Order books, music, Order books, music,
or clothes. or clothes.
Book travel or ticketsBook travel or tickets consent, request consent, request valuation…valuation…
Book travel or ticketsBook travel or tickets
�� Time on siteTime on site
�� Up sell/Cross SellUp sell/Cross Sell
� Time on site
� Pain
FunFun AnnoyingAnnoying
Exchange ofExchange of moneymoney
Context
Local governmentLocal governmentPay rates, fines, or Pay rates, fines, or
registrationregistration
Ecommerce Ecommerce Pay for stuff in Pay for stuff in
shopping cartshopping cart
� Effort to complete
� Change of mind
� Effort to complete
� Pain
Fulfil a Fulfil a desiredesire
Fulfil an Fulfil an obligationobligation
Provide Provide information information
Context
Local governmentLocal governmentParks, museums, Parks, museums,
vacancies vacancies
Ecommerce Ecommerce News, “news”, gamesNews, “news”, games
�� Time on siteTime on site
�� Repeat visitsRepeat visits
�� Ad revenue Ad revenue
�� Ease to findEase to find
� Time on site
� Pain
Entertain or Entertain or distractdistract
Answer a Answer a question question
EncourageEncourage participationparticipation
Context
Local governmentLocal governmentVote, discuss Vote, discuss
Ecommerce Ecommerce Create contentCreate content
Organise content Organise content
�� Participation Participation
�� ValueValue
Trivial Trivial ComplexComplex
�� Participation Participation
�� Democracy Democracy
Context
1979SONY Walkman
1984SONY Discman
Models change
1992SONY MD Walkman
1999SONY Network Walkman
2001APPLE iPod
Models change
201010 billion songs sold through iTunes Store
Environment changes
Mediums change
Mediums change
Expectations change
1990 2010
Benchmark Benchmark where you are todaywhere you are today
Define a vision Define a vision & how success & how success
would be measured would be measured
Roadmap
would be measured would be measured
Create a roadmap Create a roadmap that shows how that shows how
to deliver the vision in achievable to deliver the vision in achievable
phases phases
Thank youThank you! !
Questions?Questions?
