USING E-COMMERCE USING E-COMMERCE AS A BUSINESS TOOLAS A BUSINESS TOOL

Introduction to the on-Introduction to the on-line environmentline environment

Definition: What is E-commerce?

‘E-commerce is the process of conducting business using the Internet and Intranet.’

‘‘USING E-COMMERCE USING E-COMMERCE AS A BUSINESS TOOL.’AS A BUSINESS TOOL.’

The Internet will offer new business opportunities through E-commerce to allow companies to operate on a global scale

There is a degree of truth, a lot of exaggeration and speculation as to how effective E-commerce will develop

Difference between Internet Difference between Internet and Intranetand Intranet

Internet: is a network of networks, which interchange data. It can be considered a prototype of the global information superstructure.

Intranet: Is a closed or private network which interchanges data. Used within organisations, but can be accessed externally through a password.

The Internet Business The Internet Business ClimateClimate

The internet is no longer an exclusive academic and technical network.

The following pie chart demonstrates the growth of internet use particularly in the commercial sector.

Internet user Internet user DemographicsDemographics

Internet user Demographics

4% 7%9%

29%51%

Education

Defene

Government

Research

Commercial

Why the need for an on-Why the need for an on-line Environmentline Environment

SME’s are competing in an increasingly global business environment.

Downsizing by large corporations and government has created more employment opportunities in the SME sector.

In the future it will it be the organisations with ‘culture of connectivity’ who will have the competitive edge.

Will we see virtual communities becoming ‘coalition organisers’ who act on behalf of their community members, be they business or the wider community. Hagel & Armstrong (1997

Why the need for an on-line Why the need for an on-line E-commerceE-commerce

Australia is an Information based society 40% percent of employment involved in production,

processing distribution, infrastructure. More than a million Australian now use the Internet

regularly and this is growing. Educational policies now gear students towards

computer literacy and new technologies. The rise of the Internet and the World Wide Web

are part of the phenomenon of globalisation.Barry Jones I.T.Age Newspaper

Conducting Virtual Conducting Virtual commerce on the commerce on the

InternetInternetBusiness opportunities can be broken

down into two broad categories Marketing and Internal operations

Marketing using the Internet provides a collection of tools that allow interactive advertising, customer service and support, product information and sales

Conducting Virtual Conducting Virtual Commerce On The Commerce On The InternetInternet

With E-commerce your business can now do the following

Communicate with customers instantly including sending requested information on demand to customers using e-mail

Promote your business by distributing to global forums

Create virtual shopfronts to generate sales directly from the Internet.

Conducting Virtual Conducting Virtual Commerce On The InternetCommerce On The InternetInternal OperationsThe Internet provides a variety of

tools for moving information, collaboration and development and vendor support.

The business can operate more efficiently and profitably.

Conducting Virtual Conducting Virtual Commerce On The Internet.Commerce On The Internet.

Distribute files to anyone or a select group in a convenient and efficient fashion.

Access the vast resources of the Internet.

Publish information such as on-line catalogues, brochures and newsletters

Establishing your business Establishing your business wired to the netwired to the net

There are three essential parts Getting your business wired to the

netSetting up a server presence to

deliver services on-lineWorking with the key tools of the

Internet trade e-mail FTP Gopher and the World Wide Web

Getting your business Getting your business wired to the netwired to the net

Can be fraught with technical, financial and strategic complexities.

Issues to be addressed areSetting up the right sort of internet

accountChoosing the right type of

telecommunications line.

Getting your business Getting your business wired to the netwired to the net

1. Establishing a domain nameDomain names indicate the type of

service or product you are offering.A domain name lets you capitalise on any

brand recognition associated with your business name.

Domain names are registered with an organisation call InterNIC

Registering Domain Registering Domain NamesNames

Names are registered on a first come first served basis

Registering a domain implies no legal ownership of the name.

The service can be contacted for information on Domain names.

ExamplesExamplesLook at the following sites

www.trading-post.com.au (commercial)www.vic.gov.edu.au (education)

Establishing a Server Establishing a Server PresencePresence

Two Options

1. Do it yourself using a unix server, a dedicated connection, a leased high volume data transmission line and the technical expertise to put it all together.

2. Rent space on a server services’ server and let the ISP do the work for you

E-mailE-mailPromote you E-mail presence

in all your business documentsIt is as important as your

telephone and fax numberAlways display on business

cards

Sharing Information with Sharing Information with FTPFTP

File transfer Protocol (FTP) is a medium that lets business send and receive files across the Internet.

Creating an FTP site is a cost-effective way to make large quantities of information available internally/externally to all Internet users.

Sharing Information with Sharing Information with FTPFTP

Thousands of anonymous sites throughout the net.

Many of these are file archives that let users get software at no cost

‘‘Using E-commerce as a Using E-commerce as a business Tool.’business Tool.’

DisadvangagesOn - line securityVirusesCost effectivenessRelevanceLack of training

‘‘Using E-commerce as a Using E-commerce as a business Tool.’business Tool.’

Recent studies have shownAustralians are one of the

highest users of the net in the world on a per capita basis

Australians have a keenness for new technologies

Reasons for Using E-Reasons for Using E-Commerce as a Business Commerce as a Business

tool.tool.Export opportunitiesImproved exposureCost savingsNew opportunitiesImproved CommunicationsReduced reliance on paperFind new Employees

Using E-Commerce as a Using E-Commerce as a Business Tool.Business Tool.

The internet will remove the ‘tyranny of distance’ our geographic isolation from world markets will no longer be relevant.

The web will allow a small Australian company to advertise its products world wide at the same coast as it takes to advertise in the local community.

Australia has a reputation for producing high quality goods for niche markets. A web presence is the ideal medium for promoting these products.

Security IssuesSecurity IssuesA study of UK business revealed that

54% of all business surveyed were concerned about security issues.

47 were concerned about the complexity of payment systems

Is on-line security an issue on the net or is it less dangerous than quoting it over the phone or handing it over in the restaurant?

Using E-Commerce as a Using E-Commerce as a Business Tool.Business Tool.

There are two items of existing global infrastructure that can assist us to sell on the net.

What do you think they might be?

Using E-Commerce as Using E-Commerce as a Business Tool.a Business Tool.

Credit Cards VISA AMEX MasterCard etc

Global Courier Companies FedEx DHL TNT

Using E-Commerce as a Using E-Commerce as a Business Tool.Business Tool.

By advertising your business presence on the net the distinction between an organisation with large marketing muscle and a small innovative company is blurred.