Business 54 - Introduction to eCommerce

Spring 2008

1C1- February 11, 2008

2

Class Game Plan

C1- February 11, 2008

Introductions / Students and Faculty.

Course Structure, Syllabus and Course Review.

What is Electronic Commerce?

History of eCommerce.

eBusiness Models.

eRevenue Models.

3C1- February 11, 2008

Course Evaluation

Course evaluation will be based on overall performance in exams, assignments, projects, home works, presentations, written reports and class participation.

Home Page Design 6Points

Class Cases / Exercises (6) 24Points

Business Plan Concept 5 Points (Team)Site Design Flow / Site Map 10

Points (Team)Business Plan Paper 15

Points (Team)Business Plan Presentation / Site Demo 10

Points (Team)Final Exam 20

PointsActive Class Participation 10 Points

----------------Points 100

Points

4C1- February 11, 2008

Introductions

Who are you?

What do you know about eCommerce?

What do you want to learn about eCommerce?

5C1- February 11, 2008

Course Goals

Understand the history and development of e-Commerce. Have a general understanding of the Internet and its technologies. Be able to define the requirements for development of e-Commerce

capabilities in a company Assess the current state of electronic commerce and explain how electronic

commerce can be used to create a strategic competitive advantage for an organization.

Understand the legal and regulatory policy issues that affect e-Commerce. Analyze the impact that electronic commerce is having and will likely have

on key sectors of the economy and assess the strategic implications this analysis holds for an organization.

Understand current and future obstacles for eCommerce.

6C1- February 11, 2008

Course Structure

Combination of lecture, hands on learning and projects.

Individual and team Assignments / Course Work.

Only 30 class meetings.

7C1- February 11, 2008

Why do we call it eCommerce?

What is eCommerce?

Difference between eCommerce and eBusiness is……

Why isn’t there a T-Commerce or F-Commerce?

8C1- February 11, 2008

The union of Buyer Side benefits and Seller side benefits creates a new business paradigm; the truly first ‘new’ one since Ford’s Model T and Mass Production:

The Virtuous Circle.

Union of Buy and Sell Side

9C1- February 11, 2008

The union of Buyer Side benefits and Seller side benefits creates a new business paradigm; the truly first ‘new’ one since Ford’s Model T and Mass Production:

The Virtuous Circle.

Union of Buy and Sell Side

10C1- February 11, 2008

The Internet Sales Channel provides five key benefits to Surfers:• Convenience.

• Information Gathering.

• Anonymity.

• Price Comparison-Shopping.

• Walk Away Ability.

Union of Buy and Sell Side

11C1- February 11, 2008

• ConvenienceConvenience

• Information GatheringInformation Gathering

• AnonymityAnonymity

• Price Comparison-Price Comparison-ShoppingShopping

• Walk Away AbilityWalk Away Ability

• Broader Reach.

• Lower Selling Costs.

• Supply Chain Management

& Expansion.

• Reduced or (even Virtual)

Product inventories.

• Price Discrimination.

The Internet Sales Channel provides five key benefits to Sellers:

12C1- February 11, 2008

The union of Buyer Side benefits and Seller side benefits creates anew business paradigm; the truly first ‘new’ one since Ford’s Model T and Mass production:

• Convenience.

• Information Gathering.

• Anonymity.

• Price Comparison-Shopping.

• Walk Away Ability.

• Broader Reach.

• Lower Selling Costs.

• Supply Chain Management

& Expansion.

• Reduced or (even Virtual)

Product inventories.

• Price Discrimination.

13C1- February 11, 2008

Traditional and eCommerce Business Models

Business to Consumer. Business to Business. Business to Business to Consumer. Consumer to Business. Communities. Exchanges-Marketplaces. Governmental. Peer to Peer. Media.

14C1- February 11, 2008

You are no longer in perfect control.

The history of Business on the web is one of partnerships, alliances and affiliations:• You may not have a physical presence or store.• You may not have any inventory.• You may not have any employees.

You have no (hopefully) legacy business practices or systems or other ‘baggage’.

Business Model Differences

15C1- February 11, 2008

Banner-Advertising. Subscription. Transactional. ‘Begging’-Donations. Middlemen. Taxation.

Overview of Revenue Models

16C1- February 11, 2008

It is Narrow-Casting or One-to-One Marketing.

Can easily price discriminate, and do.

Revenue can be generated for a number of sources --- not just your web site visitors:• Affiliates.• Traffic Routing.• Web Circles.• Volume is low, but Margins are high.• Lots of Nickels & Dimes.

Revenue Model Differences

17C1- February 11, 2008

The best 4 Web Verticals to be in are:• Adult.• On-line Gaming / Casinos.• Medicine / Prescriptive Sites.• Niche eTailing.

Advantages and disadvantages to each.

Advantages:• Quickly get to Cash Neutrality.• Still room to grow / Room for New Ideas.

Disadvantages:• Adult = Working Environment• Gaming = Legality Issues for Americans• Medicine = Import-Export• eTailing = Competition

The Best eCommerce Verticals

18C1- February 11, 2008

Business & Revenue Models

Business Models Business to Consumer. Business to Business. Business to Business to Consumer. Consumer to Business. Communities. Exchanges-Marketplaces. Governmental. Peer to Peer. Media.

Revenue Models Banner-Advertising. Subscription. Transactional. ‘Begging’-Donations. Middlemen. Taxation.

19C1- February 11, 2008

Questions……(and maybe some) Answers