EC Applications. Learning Objectives Describe and discuss different EC Applications: 1. Direct...

EC Applications

Learning ObjectivesDescribe and discuss different EC

Applications:1. Direct Marketing2. E-tailing3. Online banking and personal finance4. E-Auction5. Knowledge Management6. Mobile commerce7. E-Government8. Social commerce9. Collaborative commerce

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 2-2

1. Direct MarketingDirect Marketing

Broadly, marketing that takes place without intermediaries between manufacturers and buyers; so it is marketing done online between any seller and buyer

Example: Dell


2. Electronic Retailingelectronic retailing (e-tailing)

Retailing conducted online, over the Internete-tailers

Retailers (sales intermediaries) who sell over the Internet

Examples: Amazon, Wal-Mart, etc.


Dis-intermediationThe removal of organizations or business process layers responsible for certain intermediary steps in a given supply chain

Re-intermediationThe process whereby intermediaries (either new ones or those that had been dis-intermediated) take on new intermediary roles


2. Electronic Retailing

2. Electronic RetailingCOMAPRISON BETWEEN RETAILERS

AND E-TAILERS


Retailers E-tailers

Expansion Increase number of stores and employees

Increase servers

Customer Relations

More stable due non- anonymous contacts

Less stable due anonymous contacts

Competition

Local/ Fewer Global/ More

Customer base

Local area Wide area

2. Electronic RetailingWHAT SELLS WELL ON THE INTERNET

Products: cars, clothes, toys, etc. (e.g. Amazon, ebay, etc.)

Services: hotel, tickets, real estates, etc. (e.g. Booking.com and TripAdvisor)


CLASSIFICATION OF MODELS BY DISTRIBUTION CHANNELPure-play e-tailers

A company buys from a business and sells to another business where all transactions are online (e.g. Amazon.com)

Click-and-mortar retailersA business model where a company sells in multiple marketing channels simultaneously both physical and online stores (e.g. Wal-Mart)



Online Malls Referring Directories: directories are organized

by product types (e.g. AliExpress.com) Malls with Shared Services: directories are

organized by stores but have shared services like shipping (e.g. http://kids-fashion.kadaza.com/)



3. Banking and Personal Finance Onlineelectronic (online) banking or e-banking

Various banking activities conducted from home or the road using an Internet connection; also known as cyber-banking, virtual banking, online banking, and home banking

Bank processes can be fully or partially online. VIRTUAL BANKS are banks that physically do not exist.


3. Banking and Personal Finance OnlineHOME BANKING CAPABILITIES

INTERNATIONAL AND MULTIPLE-CURRENCY BANKING: such as the use of the credit cards


Online Banking Capabilities

Informational

General bank information and news

Administrative

Account information and access

Transactional

Account transfer capabilities and pay bills

Portal Links to financial information

Others Wireless capabilities and search function

3. Banking and Personal Finance OnlineIMPLEMENTATION ISSUES

Online banking has to be very secure.Imaging Systems that allow clients to view

incoming checks, invoices, etc.Some banks offers the online services for free;

while others charge them. So, this strategy has to be very clear for the clients.



3. Banking and Personal Finance Online

4. E-AuctionAuction

A competitive process in which a seller solicits consecutive bids from buyers (forward auctions) or a buyer solicits bids from sellers (backward auctions); prices are determined dynamically by the bids

electronic auctions (e-auctions): Auctions conducted online

Example: eBayCopyright © 2012 Pearson Education, Inc.

Publishing as Prentice Hall 2-16

4. E-AuctionTRADITIONAL AUCTIONS VERSUS E-

AUCTIONSTraditional off-line auction lasts only a few

minutes for each item sold. So, it has limited time to make decision.

It may be difficult to move goods to the auction site.

Auction site needs to be rented.Auction needs to be advertised.Bidders need to present at the site.


4. E-AuctionTYPES OF AUCTIONS

One Buyer, One Seller: based on negotiation or bartering

One Seller, Many Potential Buyers: forward auction

One Buyer, Many Potential Sellers: based on reverse auction (tendering or request for quote system RFQ) or Name-Your-Price (priceline.com).


4. E-AuctionLimitations of E-Auctions

Minimal Security because of unencrypted environment

Possibility of Fraud as buyers cannot see the product before delivery

Limited Participation especially for the auctions done by invitation only


5. Knowledge Management, Advisory Systems, and Electronic CommerceAutomated question/answer (QA) system

A system that locates, extracts, and provides specific answers to user questions expressed in natural language such as Live Chat with Experts


5. Knowledge Management, Advisory Systems, and Electronic CommerceONLINE ADVICE AND CONSULTING

Medical adviceManagement consultingLegal adviceGurusFinancial adviceSocial networksOther advisory services


6. M-CommerceMobile commerce (m-commerce; m-business)

Any business activity conducted over a wireless telecommunications network or from mobile devices

MOBILE DEVICESpersonal digital assistant (PDA): A stand-

alone handheld computer principally used for personal information management

Smartphone: A mobile phone with PC-like capabilities

TabletsCopyright © 2012 Pearson Education, Inc.


6. M-CommerceOther Mobile DevicesSmartbooksWearable devicesScreenCameraTouch-panel displayKeyboardSpeech translatorWatch-like deviceRFID (radio frequency

identification)

Scannersmobile browser

(microbrowser)Web browser designed for use on a mobile device optimized to display Web content most effectively for small screens on portable devices

Dashtop mobileCopyright © 2012 Pearson Education, Inc.


6. M-CommerceTHE ATTRIBUTES OF M-COMMERCE

UbiquityConvenienceInteractivityPersonalizationLocalization


6. M-CommerceDRIVERS OF M-COMMERCE

Widespread availability of more powerful mobile devices

The handset cultureThe service economyVendor’s pushThe mobile workforce and mobile enterpriseImproved price/performanceImproving bandwidth


6. M-CommerceSOME MOBILE APPLICATIONSMobile bankingMobile Stock TradingReal EstateMobile CRM (e-CRM) and PRMMobile entertainment (music, videos, games, etc.)Tracking People and Vehicles using location-based m-

commerce technology to identify a Web user’s physical location without that user having to provide any information

global positioning system (GPS): A worldwide satellite-based tracking system that enables users to determine their position anywhere on the earth


6. M-CommerceBARRIERS TO LOCATION-BASED M-

COMMERCELack of GPS in mobile phonesAccuracy of devicesThe cost–benefit justificationLimited network bandwidthInvasion of privacy


7. E-Governmente-government

E-commerce model in which a government entity buys or provides goods, services, or information to businesses or individual citizens

government-to-citizens (G2C)E-government category that includes all the interactions between a government and its citizensElectronic VotingElectronic Benefits Transfer


7. E-Governmentgovernment-to-business (G2B)

E-government category that includes interactions between governments and businesses (government selling to businesses and providing them with services and businesses selling products and services to the government)Government E-ProcurementGroup Purchasing


7. E-Governmentgovernment-to-government (G2G)

E-government category that includes activities within government units and those between governments

government-to-employees (G2E)E-government category that includes activities and services between government units and their employeesInternal Efficiency and Effectiveness (IEE)


7. E-Governmentmobile government (m-government)

The wireless implementation of e-government mostly to citizens but also to businessesThe Benefits of M-GovernmentSome Implementation IssuesApplications


8. Social Commercesocial media

The online platforms and tools that people use to share opinions, experiences, insights, perceptions, and various media, including photos, videos, and music, with each other


8. Social CommerceSocial Media Marketing (SMM)

A term that describes use of social media platforms such as networks, online communities, blogs, wikis, or any other online collaborative media for marketing, market research, sales, CRM, and customer service; it may incorporate ideas and concepts from social capital, Web 2.0, social media, and social marketing

Web 2.0the second stage of development of the Internet (introduced in 2004), characterized especially by the change from static web pages to dynamic or user-generated content and the growth of social media.


8. Social CommerceSocial Commerce (SC)

The delivery of e-commerce activities and transactions through social networks and/or via Web 2.0 software

Social ShoppingA method of e-commerce where shoppers’ friends become involved in the shopping experience; social shopping attempts to use technology to mimic the social interactions found in physical malls and stores


8. Social CommerceTHE MAJOR MODELS OF SOCIAL

SHOPPINGRatings and Reviews

Customer ratings and reviews Expert ratings and reviews Sponsored reviews Conversational marketing Video product review Customer testimonials


8. Social CommerceSocial Recommendations and Referrals

Share with your network (social bookmarking) Referral programs Social recommendations Innovative methods

Others Group buying and shopping together Deal purchases (flash sales), such as daily deals Location-based shopping F-commerce; shopping at Facebook Shopping with Twitter


8. Social CommerceTHE POTENTIAL BENEFITS OF SOCIAL

COMMERCE


8. Social CommerceThe Major Categories of Virtual World Applications1. Storefronts and online sales2. Front offices or help desks3. Advertising and product

demonstrations4. Content creation and

distribution5. Meetings, seminars, and

conferences6. Training7. Education8. Recruiting9. Tourism promotion

10. Museums and art galleries

10. Information points

11. Data visualization and manipulation

12. Entertainment (games)

13. Platform for social science research

14. Market research

15. Platform for design

16. Providing CRM to employees

17. Commercial gaming

18. Virtual trade shows


9. Collaborative CommerceCollaborative Commerce (c-commerce)

The use of digital technologies that enable companies to collaboratively plan, design, develop, manage, and research products, services, and innovative EC applications


9. Collaborative CommerceBenefits of C-COMMERCE

Reducing Transportation and Inventory CostsReduction of Design Cycle TimeReduction of Product Development TimeElimination of Channel Conflict: Collaboration

with Dealers and Retailers


EC Applications. Learning Objectives Describe and discuss different EC Applications: 1. Direct...

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