Welingkar’s Distance Learning Division

Driving the E-Commerce Revolution

We Learn – A Continuous Learning Forum

Electronic Commerce Activities

Activities

Product or service search Price search

payments Actual purchase

Electronic Commerce Activities -2

• Direct selling of goods and/or services over the internet

• Provision of company homepage

• Advertising• Priced Information• Agent Services• Research and

Developement

Niche, Broad or Target Customer

• Niche - targeting a single customer or a group of customers

• Broad – entire population of appropriate customers

Targeting StrategyN

iche Focus Internet Differentiation

e.g., Jb mountainbikes.com

Focus Internet cost leadership

e.g., Southwest.com

Broad Internet Differentiation

e.g., Old tools.com

Broad Internet cost leadership

e.g., Amazon.com

Differentiation Cost Leadership

Bro

ad

Cu

sto

me

r

seg

men

t

Strategy

Differentiation (features & services)

• Developing unique products/services & brand building

• Providing value added services and customisation through the internet

• Cost advantage by reducing transaction costs through appropriate use of internet

Major Modes Found in E- commerce -1

Four modes:• Revenue generating

modes• Product delivery

modes • Payment collection

modes• Operating modes

Major Modes Found in E- commerce - 2

i. Revenue Generating Modes

• Profit from purchase/ sale of goods

• Agent fees • Income from priced

packaged information• Advertising revenues• Priced information• Income from sale of

aggregated marketing information

Major Modes Found in E- commerce - 3

(ii) Product Delivery Modes

• Physical Maintenance Repairs Replacements Other types of follow-up

activity

• virtual

Major Modes Found in E- commerce - 4

(iii) Payment Collection Modes

• Physical

• Virtual

Major Modes Found in E- commerce - 5

(iv) Operating Modes

• Completely outsourced operations

• Completely self-handled operations

• Hybrid operations

Matrix of E – Commerce Models

• Principal Business Models:• B2B• B2C• C2B• C2C• Single or multiple individual consumers

• Single or multiple businesses• The nature of delivery• Customisation• Seller characteristics• Price selling mechanism

Business to Consumer (B2C) Commerce

• Electronic commerce and technology• Consumer behaviour and choice• Business processes and marketplace

competition

Retailing on www• Service efficiency• Personalisation• Socialisation• Look & feel of site• Incentives• security

Elements & Resources impacting Electronic Commerce Changes

• Network practices• Cultural change• Technology• Cost and Time Frame• Management Work

Process Consultants• Integrators• vendors

Opportunity Development for E-Commerce Stages

Opportunity development

Step 1 : look for business opportunities

Step 2 : map the opportunities & functions Step 3 : Require

opportunities with executives

Map all the three steps & form an e –commerce opportunity framework

Factors in Decision Making Strategy

Business Goal

Technology ProcessesApplication

(Final system)

Developing an E – Commerce strategy

Focus on high return

Think fresh on alternatives

Prioritize alternatives

Involve appropriate parties

Good understanding of technology by all involved

Develop a phased approach

Document business case

Develop & agree budget

E – COMMERCE

STRATEGY

Ensure management support

International Strategy Development

Distribution

Model

Product

Suitability

Pricing &

legal factors

LocalisationThe

Transaction

Fulfillment

and support

Direct/

Indirect

Shipping

delivery & support

Purchase & acquisition

Consulting & education

for change

Transaction &

customisation

Agreements & pricing

Does product meet the local needs ?

INTERNATIONAL

E-COMMERCE

Client/server Paradigm

Client

program

Server

program

Server

Result

TCP/IP

Domain Name System

mil ZWNET AB

113.37.53.181

cn

rakr

gun

hg

USID

162.79.21.123

com

edugov intIn-addr

181

53

37

112

arpaORG

Reverse domain

Generic domain Country domain

Root-Level

Painter

Metadata

]al is a naughtyGirl. She is good but naughty SoghtyGirl. She is good but naughty Sonal is tyGirl. She is good but naughty Sonal ightyGirl. She is good but naughty SoghtyGirl. She is good but naughty Sos aghtyGirl. She is good but naughty

Meta-Data

sales

sales

FTP

User

Interface

Protocol

Interpreter

Data

Transfer unit

Protocol

interpreter

Data

Transfer

unit

TCP/IP

Data connection

Control connection

Local

disk

Remove

disk

client server

The Basic Website Communication Proce

Web Server

HTTP requestGet HTML file

Web Browser File system

Returned HTML file

Basic Data Configuration

Web browser Web server CGI SCRIPT Back-end Application