Driving the EDriving the E--Commerce Commerce RevolutionRevolution

Electronic Commerce Electronic Commerce ActivitiesActivities

Activities

Product or service search Price search

payments Actual purchase

Electronic Commerce Electronic Commerce Activities Activities --22

Direct selling of goods Direct selling of goods and/or services over and/or services over the internetthe internetProvision of company Provision of company homepagehomepageAdvertisingAdvertisingPriced InformationPriced InformationAgent ServicesAgent ServicesResearch and Research and DevelopementDevelopement

Niche, Broad or Target Niche, Broad or Target CustomerCustomer

Niche Niche -- targeting targeting a single customer a single customer or a group of or a group of customerscustomers

Broad Broad –– entire entire population of population of appropriate appropriate customerscustomers

Targeting StrategyTargeting StrategyN

iche Focus Internet Differentiation

e.g., Jb mountainbikes.com

Focus Internet cost leadership

e.g., Southwest.com

Broad Internet Differentiation

e.g., Old tools.com

Broad Internet cost leadership

e.g., Amazon.com

Differentiation Cost Leadership

Bro

ad

Cus

tom

er

seg

men

t

Strategy

Differentiation (features Differentiation (features & services)& services)

Developing unique Developing unique products/services & products/services & brand buildingbrand buildingProviding value added Providing value added services and services and customisationcustomisation through through the internetthe internetCost advantage by Cost advantage by reducing transaction reducing transaction costs through costs through appropriate use of appropriate use of internetinternet

Major Modes Found inMajor Modes Found inEE-- commerce commerce --11

Four modesFour modes::•• Revenue Revenue

generating modesgenerating modes•• Product delivery Product delivery

modes modes •• Payment collection Payment collection

modesmodes•• Operating modes Operating modes

Major Modes Found inMajor Modes Found inEE-- commerce commerce -- 22

i.i. Revenue Generating Revenue Generating ModesModesProfit from purchase/ Profit from purchase/ sale of goodssale of goodsAgent fees Agent fees Income from priced Income from priced packaged informationpackaged informationAdvertising revenuesAdvertising revenuesPriced informationPriced informationIncome from sale of Income from sale of aggregated marketing aggregated marketing informationinformation

Major Modes Found inMajor Modes Found inEE-- commerce commerce -- 33

(ii)(ii) Product Delivery Product Delivery Modes Modes

•• PhysicalPhysicalMaintenanceMaintenanceRepairsRepairsReplacementsReplacementsOther types of followOther types of follow--up up activityactivity

•• virtualvirtual

Major Modes Found inMajor Modes Found inEE-- commerce commerce -- 44

(iii) Payment (iii) Payment Collection ModesCollection Modes

•• PhysicalPhysical

•• VirtualVirtual

Major Modes Found inMajor Modes Found inEE-- commerce commerce -- 55

(iv) Operating Modes(iv) Operating Modes

•• Completely outsourced Completely outsourced operationsoperations

•• Completely selfCompletely self--handled operationshandled operations

•• Hybrid operationsHybrid operations

Matrix of E Matrix of E –– Commerce Commerce ModelsModels

Principal Business Principal Business Models:Models:

•• B2BB2B•• B2CB2C•• C2BC2B•• C2CC2C•• Single or multiple Single or multiple

individual individual consumersconsumers

•• Single or multiple Single or multiple businessesbusinesses

•• The nature of The nature of deliverydelivery

•• CustomisationCustomisation•• Seller Seller

characteristicscharacteristics•• Price selling Price selling

mechanismmechanism

Business to Consumer Business to Consumer (B2C) Commerce(B2C) Commerce

Electronic Electronic commerce and commerce and technologytechnologyConsumer Consumer behaviourbehaviour and and choicechoiceBusiness processes Business processes and marketplace and marketplace competition competition

Retailing on wwwRetailing on www•• Service efficiencyService efficiency•• PersonalisationPersonalisation•• SocialisationSocialisation•• Look & feel of siteLook & feel of site•• IncentivesIncentives•• securitysecurity

Elements & Resources Elements & Resources impacting Electronic Commerce impacting Electronic Commerce

ChangesChangesNetwork practicesNetwork practicesCultural changeCultural changeTechnologyTechnologyCost and Time Cost and Time FrameFrameManagement Work Management Work Process ConsultantsProcess ConsultantsIntegratorsIntegratorsvendorsvendors

Opportunity Development Opportunity Development for Efor E--Commerce StagesCommerce Stages

Opportunity development

Step 1 : look for business opportunities

Step 2 : map the opportunities & functions Step 3 : Require

opportunities with executives

Map all the three steps & form an e –commerce opportunity framework

Factors in Decision Factors in Decision Making StrategyMaking Strategy

Business Goal

Technology ProcessesApplication

(Final system)

Developing an Developing an E E –– Commerce strategyCommerce strategy

Focus on high return

Think fresh on alternatives

Prioritize alternatives

Involve appropriate

parties

Good understanding of technology by all involved

Develop a phased approach

Document business case

Develop & agree budget

E –COMMERC

E

STRATEGY

Ensure management support

International Strategy International Strategy DevelopmentDevelopment

Distribution

Model

Product

Suitability

Pricing &

legal factors

LocalisationThe

Transaction

Fulfillment

and support

Direct/

Indirect

Shipping

delivery & support

Purchase & acquisition

Consulting & education

for change

Transaction &

customisation

Agreements & pricing

Does product meet the local

needs ?

INTERNATIONAL

E-COMMERCE

Client/server ParadigmClient/server Paradigm

Client

programTCP/IP

Server

program

Server

Result

Domain Name SystemDomain Name System

mil ZWNET AB

113.37.53.181

cn

rakr

gun

hg

USID

162.79.21.123

com

edu gov intIn-addr

181

53

37

112

arpaORG

Reverse Generic Country domain

Root-Level

Painter

MetadataMetadata

]al is a naughtyGirl. She is good but naughty Soghty

Girl. She is good but naughty Sonal is tyGirl. She is good but naughty Sonal ighty

Girl. She is good but naughty SoghtyGirl. She is good but naughty Sos aghty

Girl. She is good but naughty

Meta-Data

sales

sales

FTPFTP

User

Interface

Protocol

Interpreter

Data

Transfer unit

Protocol

interpreter

Data

Transfer

unit

TCP/IP

Data connection

Control connection

Local

disk

Remove

disk

client server

The Basic Website The Basic Website Communication Communication ProceProce

Web Server

HTTP requestGet HTML file

Web Browser File system

Returned HTML file

Basic Data ConfigurationBasic Data Configuration

Web browser Web server CGI SCRIPT Back-endApplication

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