e-commerce strategies kelly halbert verizon e-business group december 2000
TRANSCRIPT
E-Commerce Strategies
Kelly Halbert
Verizon E-Business Group
December 2000
Definition: E-Commerce
Any business transaction that takes place via
digital processes over a network
History of E-Commerce
1969 ARPANET 1970s Bitnet and Usenet 1970s Electronic Funds Transfer 1980s EDI 1980s Business Commerce 1992 World Wide Web 2000 E-Commerce is Expanding Exponentially
Types of E-Commerce
Business-to-Business Business-to-Consumer
Why E-Commerce?
Everyone else is doing it Direct-to-Consumer On-line companies perceived as aggressive Customer Satisfaction
E-Commerce Forces
Customer Forces Technological Forces Economic Forces
Business Imperatives
Lower Costs Increased Revenues Increased Speed of Transactions Reduced Inventory Levels
Benefits of E-Commerce
Manage Supply and Value Chains Buy and Sell Products on the Internet Automates business transactions. Cuts customer service cost and improves the
quality of service.
E-Biz Model
Virtual Companies Automated Supply and Value Chains Internal Value Chain
B-B Supply Chain
Internal Value Chain
Infonomics
New World Economy Information
E-Commerce Obstacles
M oney Te ch n o lo gy P e o p le
O b s ta c les
How are Businesses using E-Commerce?
Product Catalogs and Online Buying Purchase Orders Logistics Control Customer Service Call Centers
Transactions and Functions
EDI – Electronic Data Interchange EFT – Electronic Funds Transfer Purchases Marketing Customer Service Inventory Intranet
Key Components of a Digital Nervous System
Hardware Software People Data Procedures
Hardware
Servers Routers Bridges Hubs Switches Gateways
Software
Web Server Software Transaction Server Software Browser Security
E-Commerce Architecture
Myths
Cheap, Easy, and Lucrative Everyone is Doing It Middlemen are Eliminated All Products become Commodities
Risk Management
Project Related Risks Technical Risks Business Risks
Risk Management Alternatives
What are our options and what do those options cost?
What is the risk of not doing something? Outsourcing vs. Insourcing Is the technology proven or new?
Top 10 E-Commerce Failure Risks
Project has unclear mission statement. Project does not have a clear business case. Project specifications are vague. Project is due to be delivered in one big chunk. Project team does not have the experience. Some team members are not committed. Project plan does not include time for holidays, vacations, sick days. Project plan includes no knowledge transfer plan for when consultants
leave. Project schedule was dictated by management without regard to the
amount of work required. Customer, partner, and management expectations are unrealistic.
Cost
Promotional Site = $300,000 Transactional Site = 1 to 3 Million The largest cost associated with e-commerce
is labor because of IT staffing shortage
Measuring Success
Customer Satisfaction Business Partner Satisfaction Number of New Customers Customer Attrition Product Availability
Brand ManagementMoving from Brick-and-Mortar to the Virtual World
Create a cyberbrand that attracts customer loyalty Customer loyalty in cyberspace is much lower than
in the real world Customer retention cost are much higher in
cyberspace Customer acquisition costs are lower in cyberspace
Internet Innovations
Portals – Yahoo! E-Tailing – Amazon Auctions – e-Bay Application Hosting – Application Service
Providers
Portals
Gateway to the Web Search Tool Links News Advertisers
External Service Providers
Internet Service Providers Web Hosting Providers Application Server Providers
Choosing a Partner
Trust Culture Reputation and Image Technology Financial Stability
Independent Software Vendors
ERP Vendors = SAP, Oracle, Peoplesoft Database Software Manufacturers = Oracle Web Software Co = iFront, Mercado Home Productivity = Intuit, Norton
Technical Standards
United Nations’ Electronic Data Interchange for Administration, Commerce, and Transport (UN/EDIFACT).
American National Standards Institute (ANSI)
Tax Issues
State Sales Tax Foreign Taxes
Legal Issues
Since cyberspace doesn’t really exist as a physical place, where should legal issues be resolved.
The electronic trail is not treated with the same respect as a paper trail.
Top 10 Benefits
Greater market share Reduces administrative cost Streamline business processes Improves relationship between business partners and
customers Equal market access for small and large businesses New ways to manage supply and value chains Seamless business operating environment Makes it possible to buy and sell on the Internet Automates business transactions Allows businesses to provide better customer service
Reference
Trepper, Charles, E-Commerce
Strategies, Microsoft Press, 2000.
Thanks
Special Thanks to Chris Jones
For His PowerPoint Assistance