ELC 200 Day 11. Awad –Electronic Commerce 2/e © 2004 Pearson Prentice Hall 2 Agenda Assignment #3...

ELC 200

Day 11

2WWWWWW Awad –Electronic Commerce 2/e© 2004 Pearson Prentice Hall

Agenda

• Assignment #3 Corrected– 6 A’s, 1 B, 1 F and 2 non-submit

• Assignment #4 due • Next Quiz is Next class

– Chap 4-7 of text– 15 M/C (60 Points), 4 Short Essay (40 Points)– Extra credit ---the story of “bob.com”

• Clue “Bob Antia”• Syllabus Change

– I will cover Chap 16 Today (I lied!)– Allows students to begin work on eCommerce Initiative Framework

• Today is a discussion on Launching a Business on the Internet

Chapter 16

Launching a Business on the Internet

WWWWWW


OBJECTIVES

• Introduction of E-Business Life Cycle

1) Planning2) Hardware, Software

& Security 3) Design Phase4) Marketing5) Fulfillment6) Maintenance &

Enhancement

Launching a Business on Internet: Objectives

1

3

2

4

5

6


PLANNING (Phase 1)

• Strategizing Reality– Evaluate a company’s position & competition– Set a course for years ahead– Develop implementation plan– Determine how to achieve goals

• Value an internal “champion”

Launching a Business on Internet: Introduction of E-Business Life Cycle


E-BUSINESS vs. TRADITIONAL BUSINESS

Factor E-Business Traditional

Barriers to Entry

Time & Space Limits; Limited Financial Capital; Unique Products

Location Requirements

Basis of Competition

Innovative Products Improved Products

Basis of Control

Customer Manufacturer

Launching a Business on Internet: Introduction of E-Business Life Cycle - Planning


E-BUSINESS vs. TRADITIONAL BUSINESS (Cont’d)

Factor E-Business Traditional

Organization Specialized Teams Hierarchical Departments

Marketing/ Sales

Mass Personalization Mass Advertising

Pricing Transaction Costs on a Sliding Scale

Production Costs



Developing a Strategy (Phase 1)

• Know yourself, your product amd you environment– 1. Who will buy the product?– 2. How familiar the business is with the Internet?– 3. Is the business planning to be a short-termer or a long-termer?– 4. Who are the competitors?– 5. How good will the product(s) look?– 6. How will the business present the product offers?– 7. How will one manage and process transactions?– 8. How will the product be shipped?– 9. How will the business handle unexpected change?– 10. How will one get and use feedback?)


STRATEGIZING (still phase 1)

• Know Your Audience

• Become Internet Savvy

• Determine Long-term vs. Short-term Selling

• Define and Constantly Re-evaluate Your Competitors

• Evaluate Website Appearance – Be objective!



STRATEGIZING (Cont’d)

• Select Product Range

• Manage Transaction Effectively & Efficiently

• Design Shipment Process

• Be Prepared for Unexpected Changes



ULTIMATE STRATEGY

• Vision– What is your business trying to achieve?

• Resources– How much can your business afford to build the

right Website?

• Culture– Is your business politically amenable for

coordinating efforts to support e-business?



DECIDING ON TYPES OF SITE

• Community• Content• Commerce

– Business-to-business• Back-end of e-commerce

– Business-to-consumer• Front-end of e-commerce

– Consumer-to-consumer• One consumer contacts another to transact business



PLANNING CONSIDERATIONS

• Create & Maintain a Competitive Edge

• Reduce Operational Costs

• Improve Employee Communication & Satisfaction

• Find New Markets for Products & Services

• Improve relationships with Partners



PLANNING CONSIDERATIONS (Cont’d)

• Create Distinct Distribution Channels

• Ensure Customer Satisfaction

• Adopt Sense of Entrepreneurship

• Improve Supply-Chain Management



HARDWARE, SOFTWARE & SECURITY (Phase 2)

• Hardware Specifications

• Hardware / Software Pitfalls

• Security for Reliability

Launching a Business on Internet: Introduction of E-Business Life Cycle – Hardware, Software & Security


PROMOTING ONLINE SECURITY

• Control access to web server

• Update server software & encoding security measures

• Use firewalls

• Monitor traffic & detect irregularities

• Assign a webmaster

Launching a Business on Internet: Introduction of E-Business Life Cycle – Hardware, Software & Security


DESIGN (Phase 3)

• Promote presence to customers

• Secure site quality & effectiveness

• Keep website up to date

Launching a Business on Internet: Introduction of E-Business Life Cycle - Design


WEB STOREFRONT

• Enables customers to find products quickly– 8-second rule

• Sends the order to fulfillment center securely

• Generates a printable receipt



WEB SITES PROGRAMS

• Database Server

• Store Administrator

• Catalog Builder

• Shopping Cart

• Order-processing System



DESIGN CONSIDERATIONS

• User Control & Freedom

• Consistency & Standards

• Recognition

• Aesthetic Design

• Recovery

• Help Desk



MARKETING (Phase 4)

• Providing Good Services

• Advertising

• Knowing the Customers

• Selling Products & Services

• Following Up

Launching a Business on Internet: Introduction of E-Business Life Cycle - Marketing


MARKETING CONSIDERATIONS

• Focus on niche market

• Know your visitors

• Integrate online sales with other channels

• Provide a fast, easy payment process

Launching a Business on Internet: Introduction of E-Business Life Cycle - Marketing


FULFILLMENT (Phase 5)

• Packing up the merchandise

• Shipping the merchandise

• Answering questions about orders

• Sending out bills

• Following up with customers

• Tax angle

Launching a Business on Internet: Introduction of E-Business Life Cycle - Fulfillment


INVENTORY ISSUES

• Product Availability

• Out of Stock Notice

• Back Orders

• Processing Orders

• Controls

Launching a Business on Internet: Introduction of E-Business Life Cycle - Fulfillment


MAINTENANCE & ENHANCEMENT (Phase 6)

• Maintenance– Keeping a systems on course based on initial

design

• Enhancement– Implementing upgrades to improve system’s

productivity

• Bottom Line – Customer Attraction & Retention

Launching a Business on Internet: Introduction of E-Business Life Cycle – Maintenance & Enhancement


MANAGING CUSTOMER FEEDBACKS

• Set up FAQs

• Increase information access

• Avoid using large images

• Answer e-mail promptly



CUSTOMER SERVICE CONSIDERATIONS

• Order Update

• Order Status Look-up & Notification

• Technical Support

• Localization

• Customer Expectations



SWOT

• An analytic method used to determine competitive advantage – Strengths– Weakness– Opportunities– Threats


STRENGHTS

• Define areas you excel in– What will your initiative do better than others?– What are your core competencies (things you

are good at)?– Do you have a clear strategic direction?– What resources do you have that competitors

may not have?


WEAKNESSES

• Evaluate your liabilities– Where are you weak in relation to your

competitors?– What skills and resources are you lacking?– What needs to be improved in your initiative?– Why were not able to improve the weaknesses

you discovered?


OPPORTUNITIES

• Analyze your customers and market potential– Identify favorable market conditions– Identify emerging technologies in support of

your initiative– Identify changes in legislation and public

policy that will have a supporting effect on your initiative


THREATS

• Analyze potential challenges– What are your obstacles?– What are your competitors doing?– Identify changes in legislation and public

policy that will have an adverse effect on your initiative.


SWOT Analysis

ELC 200 Day 11. Awad –Electronic Commerce 2/e © 2004 Pearson Prentice Hall 2 Agenda Assignment #3...

Documents

Transcript of ELC 200 Day 11. Awad –Electronic Commerce 2/e © 2004 Pearson Prentice Hall 2 Agenda Assignment #3...