Wawasan Open UniversityWawasan Open University

3.1 Business Value of B2C E-3.1 Business Value of B2C E-commercecommerce

Identify business values to be gained from B2C e-Identify business values to be gained from B2C e-commerce.commerce.

Explain how these business values are helping in Explain how these business values are helping in implementation implementation of e-commerce websitesof e-commerce websites..

UNIT 3UNIT 3

SummarySummary

Rapid advancement in technology Rapid advancement in technology make it possible transaction to be make it possible transaction to be done on the internet thus lead to done on the internet thus lead to creation of many e-commerce creation of many e-commerce sites.sites.

Cost of setting up web-site is Cost of setting up web-site is getting cheapergetting cheaper

Computer literacy is rising Computer literacy is rising

E-commerce as a E-commerce as a support to businesssupport to business The purpose is not sell directly but The purpose is not sell directly but

to support selling transaction to support selling transaction process.process.

To provide product information to To provide product information to potential buyerspotential buyers

Information can be accessed from Information can be accessed from anywhere and at anytime.anywhere and at anytime.

Add value to business by enhancing Add value to business by enhancing the quality of product information.the quality of product information.

The function of E-The function of E-commercecommerce New Sales ChannelNew Sales Channel

– Immediate delivery of certain product such as music, Immediate delivery of certain product such as music, video, books, software, etcvideo, books, software, etc

Direct SavingsDirect Savings– Having CS dept is more expensive than to setup Having CS dept is more expensive than to setup

website and have customer check themselves the website and have customer check themselves the order statusorder status

Time SavingTime Saving– Updated news on political, financial market, etcUpdated news on political, financial market, etc

Brand and corporate imageBrand and corporate image– Building the image thru technologyBuilding the image thru technology

Customer relationshipCustomer relationship– Interactive and more personalizedInteractive and more personalized

New product capabilitiesNew product capabilities– Customization based on the customer’s preference, Customization based on the customer’s preference,

needs, and wants. For example needs, and wants. For example www.dell.com.mywww.dell.com.my

B2C Business ModelsB2C Business Models

Way of classifying Business ModelsWay of classifying Business Models

1.1. Resembling bricks & mortar storeResembling bricks & mortar store2.2. Virtual model Virtual model

Differentiate the business models by the Differentiate the business models by the number of parties involved in the business number of parties involved in the business transactiontransaction

See page 12See page 12

Trading MethodsTrading Methods– Sell side – most of “Sell side – most of “e-tailere-tailer””– Buy side – twist of traditional retailer based Buy side – twist of traditional retailer based

on demand and supplyon demand and supply

Different kinds of B2C Different kinds of B2C modelmodel StorefrontStorefront

– resemble physical store such as resemble physical store such as www.amazon.comwww.amazon.com E-mall – E-mall – malaysia’smalaysia’s e-mall e-mall

– Collections of the above.Collections of the above. Image buildingImage building

– Enhance public awareness and image of the Enhance public awareness and image of the company. Example company. Example http://www.rjrt.com/http://www.rjrt.com/

Customer service – Customer service – – To provide post-sales support for current and past To provide post-sales support for current and past

customerscustomers– CRM software is growing where its integrated with CRM software is growing where its integrated with

internetinternet– http://support.ap.dell.com/support/downloads/index.aspx?http://support.ap.dell.com/support/downloads/index.aspx?

c=my&l=en&s=genc=my&l=en&s=gen

Common Business Common Business ImperativesImperatives

Customer visits to the websites, bringing the trafficCustomer visits to the websites, bringing the traffic Global reachGlobal reach Reduce cost in transactionReduce cost in transaction Shortening of business cycleShortening of business cycle Attracting some ads dollarAttracting some ads dollar Create new product & services while customizing the Create new product & services while customizing the

existing onesexisting ones Exploiting new technologyExploiting new technology Offering new features & functionality that are difficult to Offering new features & functionality that are difficult to

copy in respond to increasing number of internet-based copy in respond to increasing number of internet-based companycompany

Versatile operation on the seller side such as Versatile operation on the seller side such as convenience, user-friendly, quality and cheaper convenience, user-friendly, quality and cheaper product/service.product/service.

Internet business models continue to evolve. New and interesting variations can be expected in the future.

B2B business modelsB2B business models

Companies that supply products Companies that supply products and services to other companies. and services to other companies. www.grainger.comwww.grainger.com

Companies create & sell access to Companies create & sell access to digital electronic markets. digital electronic markets. www.ariba.comwww.ariba.com

An Exchanger such as An Exchanger such as www.alibaba.comwww.alibaba.com

Specific Industry www.exostar.comSpecific Industry www.exostar.com

M-commerceM-commerce

Take the traditional e-commerce and Take the traditional e-commerce and leveraging new wireless technologiesleveraging new wireless technologies– Mobile ticketingMobile ticketing– Mobile paymentMobile payment– mobile vouchers, couponsmobile vouchers, coupons– GPSGPS– Mobile news, stocks, sports, 4DMobile news, stocks, sports, 4D– Mobile bankingMobile banking– AuctionAuction– http://www.maxis.com.my/mmc/index.asp?http://www.maxis.com.my/mmc/index.asp?

fuseaction=press.view&recID=373fuseaction=press.view&recID=373