e-Commerce in Business
-
Upload
nick-prinsloo -
Category
Documents
-
view
219 -
download
0
Transcript of e-Commerce in Business
8/7/2019 e-Commerce in Business
http://slidepdf.com/reader/full/e-commerce-in-business 1/67
1st Semester 2011
Nick Prinsloo
8/7/2019 e-Commerce in Business
http://slidepdf.com/reader/full/e-commerce-in-business 2/67
` Study Unit 1: Introduction to e-Commerce
8/7/2019 e-Commerce in Business
http://slidepdf.com/reader/full/e-commerce-in-business 3/67
8/7/2019 e-Commerce in Business
http://slidepdf.com/reader/full/e-commerce-in-business 4/67
` Define the meaning of e-Commerce What are the 3 main components of e-Commerce?
x Business-to-consumer
x Business-to-business
x Transactions and selling processes which support selling
and purchasing activities on the web
8/7/2019 e-Commerce in Business
http://slidepdf.com/reader/full/e-commerce-in-business 5/67
` Why should managers study e-Commerce? Key part of business
Need for e-Commerce training grows daily
Low success rate in e-business blamed on inadequatetraining in area of management not IT
Disadvantaged students who need to learn about
commercial value of internet as they will be exposed to it
in business
e-Commerce brings with it a new mindset ± we need torethink how we do business
8/7/2019 e-Commerce in Business
http://slidepdf.com/reader/full/e-commerce-in-business 6/67
` What is the definition of e-Business A term which includes the streamlining of business
practices, the indication of back-end systems with
suppliers and customers, the electronic management of
stock, customer relationship management (CRM) and a
well designed front-end in the form of a website or portal.
8/7/2019 e-Commerce in Business
http://slidepdf.com/reader/full/e-commerce-in-business 7/67
` Give the definition for electronic data
interchange? EDI occurs when one business transmits computer
readable data in the standard format to another business
Businesses that engage in EDI with one another are
called trading partners
8/7/2019 e-Commerce in Business
http://slidepdf.com/reader/full/e-commerce-in-business 8/67
` Explain why certain products are more suited to
electronic commerce than others? Products suitable for selling through e-Commerce:
x O
ffice supplies, computers, airline transportation (ticketing),books.
x What else?
Products not suitable:
x Perishable foods, clothes ± goods need to be examined
closely,x What else?
8/7/2019 e-Commerce in Business
http://slidepdf.com/reader/full/e-commerce-in-business 9/67
` What are the advantages & disadvantages of
electronic commerce? Advantages
x A better market offering
x Better profitability
x Create markets
x Improve information flow and cooperation
8/7/2019 e-Commerce in Business
http://slidepdf.com/reader/full/e-commerce-in-business 10/67
` What are the advantages & disadvantages of
electronic commerce? Disadvantages
x Lack of knowledge and familiarity with e-Commerce
x Unprepared businesses
x Integration problems
x Security fears
x Unclear legal rules
x The undefined size and potential of the SA internet market
8/7/2019 e-Commerce in Business
http://slidepdf.com/reader/full/e-commerce-in-business 11/67
` What is the meaning of value chains in electroniccommerce? A value chain is a way of organising the activities that
each strategic business unit undertakes, these include
x Identifying customersx Designing products,
x Purchasing materials and supplies
x Producing or manufacturing product,
x Marketing or selling
x Delivering productsx After sales service and support
8/7/2019 e-Commerce in Business
http://slidepdf.com/reader/full/e-commerce-in-business 12/67
` Explain the driving forces of electronic
commerce? Business Pressures that cause a business to change ±
one way of responding to these pressures is e-
Commerce
8/7/2019 e-Commerce in Business
http://slidepdf.com/reader/full/e-commerce-in-business 13/67
` Explain the driving forces of electronic
commerce? Business Pressures
x Market & Economic pressures
x Strong Competition
x The merging Global economy
x Regional trade agreements
x Extremely low labour costs in some countries (e.g. China)
x
Frequent and significant changes in marketsx The increasing power of consumers
8/7/2019 e-Commerce in Business
http://slidepdf.com/reader/full/e-commerce-in-business 14/67
` Explain the driving forces of electronic
commerce? Business Pressures
x Societal and Environmental Pressures
x The changing nature of the workforce
x Government deregulations
x The increasing importance of ethical and legal issues
x Shrinking government subsidies
x The growing social responsibility of business
x Rapid political changes
8/7/2019 e-Commerce in Business
http://slidepdf.com/reader/full/e-commerce-in-business 15/67
` Explain the driving forces of electronic
commerce? Business Pressures
x Technological pressures
x Rapid technological obsolescence
x Increasing innovation and newer technologies
x Information overload
x The rapid decline in the cost of technology versus the
performance ratio
8/7/2019 e-Commerce in Business
http://slidepdf.com/reader/full/e-commerce-in-business 16/67
` How should businesses respond to these pressures? Strategic Systems
Continuous improvement efforts (BPR)
Business process re-engineering
` E-Commerce contributes to this process by: Reducing cycle time and time to market
Empowerment of employees and collaborative work
Knowledge management
Customer focused approach
Business alliances
8/7/2019 e-Commerce in Business
http://slidepdf.com/reader/full/e-commerce-in-business 17/67
` Define the concept new economy (or networked
economy)? Intro of e-Commerce has opened new doors and
perspectives on some economic principles.
To succeed in this new economy businesses need to
invest in entirely new business models with more
customer focus than ever before.
8/7/2019 e-Commerce in Business
http://slidepdf.com/reader/full/e-commerce-in-business 18/67
` Define the concept new economy (or networked economy)? Drivers of the New Economy
x PC
x Networksx Global Telecommunication infrastructure
x Globalisation
x The internet
x The web
x e-Commercex IT / Information technology
x Knowledge management ± Info turned into Knowledge
8/7/2019 e-Commerce in Business
http://slidepdf.com/reader/full/e-commerce-in-business 19/67
` What are the 10 driving principles of the new
economy? Tangible Value
Space dynamics
Time
Value of people
New growth dynamics
New determination of value
New distribution dynamics
New market dynamics
New transaction dynamics
New dynamics for the satisfaction of needs and desires
8/7/2019 e-Commerce in Business
http://slidepdf.com/reader/full/e-commerce-in-business 20/67
8/7/2019 e-Commerce in Business
http://slidepdf.com/reader/full/e-commerce-in-business 21/67
` Study Unit 2: The Infrastructure for e-Commerce
` Study Unit 3: Creating Web Pages
` Study Unit 4:Establishing an e-Commerce store
8/7/2019 e-Commerce in Business
http://slidepdf.com/reader/full/e-commerce-in-business 22/67
` Study Unit 2: The Infrastructure for e-Commerce
8/7/2019 e-Commerce in Business
http://slidepdf.com/reader/full/e-commerce-in-business 23/67
` Understanding the Infrastructure on which er-
Commerce is built What is the Internet?
x A global network of computers networks
x WorldWideWeb = a way of organising and viewing
(standardised) the information that is shared across internet
x TheWEB sits ³above´ the internet
8/7/2019 e-Commerce in Business
http://slidepdf.com/reader/full/e-commerce-in-business 24/67
` Understanding the Infrastructure on which e-
Commerce is built. Internet
NAP
POP
LAN
ISP
8/7/2019 e-Commerce in Business
http://slidepdf.com/reader/full/e-commerce-in-business 25/67
8/7/2019 e-Commerce in Business
http://slidepdf.com/reader/full/e-commerce-in-business 26/67
� What the...?� Packet switching
� TCP/IPArchitecture
� IP
� URL
� IPAddress
� DNS
� HTTP
8/7/2019 e-Commerce in Business
http://slidepdf.com/reader/full/e-commerce-in-business 27/67
` Servers DNS
Domain Names?
Web Servers
x Client ±server paradigm
x Web hosting
8/7/2019 e-Commerce in Business
http://slidepdf.com/reader/full/e-commerce-in-business 28/67
` Transfer Protocols HTTP
Mail Protocols
x SMTP
x POP
x IMAP
x FTP
8/7/2019 e-Commerce in Business
http://slidepdf.com/reader/full/e-commerce-in-business 29/67
` Markup Languages HTML
XML
8/7/2019 e-Commerce in Business
http://slidepdf.com/reader/full/e-commerce-in-business 30/67
` Intranet
` Extranet Public Networks
Private Networks Virtual Private Networks (VPN)
8/7/2019 e-Commerce in Business
http://slidepdf.com/reader/full/e-commerce-in-business 31/67
` Internet Applications Electronic Mail
Telnet
FTP
Mailing Lists
Usenet Newsgroups
Gopher
WWW
SET
8/7/2019 e-Commerce in Business
http://slidepdf.com/reader/full/e-commerce-in-business 32/67
` Study Unit 3: Creating Web Pages Outcomes
x Define the meaning of host?
x Name some hosts
x Explain the 3 types of web hosting?
x What is the criteria used to evaluate an ISP for website
hosting?
x What are the 3 types of software solutions provided by ISP¶s
x What are the cost components of an e-commerce site?
8/7/2019 e-Commerce in Business
http://slidepdf.com/reader/full/e-commerce-in-business 33/67
` Study Unit 3: Creating Web Pages Outcomes
x Explain the meaning of disciplined creativity?
x Components of a website?
xHow should websites be designed?
x Critically analyse the design an composition of a website?
x set objectives of the website?
x Making website comply with business objectives
x Enhance the performance and usability of the site
xCommon design problems
x Pre-testing phase of website
x Post-testing phase of website
8/7/2019 e-Commerce in Business
http://slidepdf.com/reader/full/e-commerce-in-business 34/67
8/7/2019 e-Commerce in Business
http://slidepdf.com/reader/full/e-commerce-in-business 35/67
` Steps in Planning a Website
8/7/2019 e-Commerce in Business
http://slidepdf.com/reader/full/e-commerce-in-business 36/67
8/7/2019 e-Commerce in Business
http://slidepdf.com/reader/full/e-commerce-in-business 37/67
DesignElements
Layout
COMPONENTSOF A WEBSITE
Look and Feel(aesthetics)
The Content
Right Size
Right detail
Right Info
Navigationtools
LinkingStructure
SectionBreakdown
Linking Pages
Image Maps
Animations
Images
Colour
Text
Spacing
Alignment
Size
Font
Colour
Background &Forground
Contrast
not consistent
8/7/2019 e-Commerce in Business
http://slidepdf.com/reader/full/e-commerce-in-business 38/67
` Evaluating a page Common web design problems
x Page from outer space
x Monster page
x Media overkill
x Uneven
x Meaningless links
8/7/2019 e-Commerce in Business
http://slidepdf.com/reader/full/e-commerce-in-business 39/67
` What to take into account for testing Speed
Reliability
Platform Independence
Media Accessibility
Usability
Must test on-line
8/7/2019 e-Commerce in Business
http://slidepdf.com/reader/full/e-commerce-in-business 40/67
` Checklist for self-evaluation of website Sidebars
Hyperlinks
Colours
Contrast
Search facilities
A site map
Graphics
Consistency Purposeful content
8/7/2019 e-Commerce in Business
http://slidepdf.com/reader/full/e-commerce-in-business 41/67
` Study Unit 4:Establishing an e-Commerce store What are the prerequisites for & preparatory steps in
setting up a shop on the internet
How to analyze and plan banking, trading and payment
requirements
Planning the launch of online shop
8/7/2019 e-Commerce in Business
http://slidepdf.com/reader/full/e-commerce-in-business 42/67
8/7/2019 e-Commerce in Business
http://slidepdf.com/reader/full/e-commerce-in-business 43/67
` Prerequisites for setting up e-store Identify role players
Feasibility study
How will e-commerce fit in with existing business
structure
Analyze customer needs, desires & expectations
8/7/2019 e-Commerce in Business
http://slidepdf.com/reader/full/e-commerce-in-business 44/67
` Determine banking requirements Get Internet merchant status at the bank
Select method of receiving credit card purchases
` Obtain Digital Certificate
8/7/2019 e-Commerce in Business
http://slidepdf.com/reader/full/e-commerce-in-business 45/67
` Determine cost Site setup fee
Annual maintenance fee
Monthly hosting fee
Domain registration
Scanner for digital photo conversion
Design & HTML help
Merchant credit card setup fee
Software ISP
Disk space
8/7/2019 e-Commerce in Business
http://slidepdf.com/reader/full/e-commerce-in-business 46/67
` Planning development and launch of site and shop Who will«?
x ...be responsible, organise, supervise, manage site
Launch
xSubmit to search engines
x Make site detectable with meta tags
x Advertise on other sites
x Conventional advertising
x Clever domain name usage ± put on all corporate printed
materialx Use e-mail mailing lists to inform interested parties
8/7/2019 e-Commerce in Business
http://slidepdf.com/reader/full/e-commerce-in-business 47/67
` Basic functions and Features of Online Trading
Software Catalogue displays
Shopping Cart
Cookies
Transaction processing (Virtual checkout counter)
Database (used to populate store catalogue & keep
buyer information)
8/7/2019 e-Commerce in Business
http://slidepdf.com/reader/full/e-commerce-in-business 48/67
` Security on online payments SSL (secure sockets layer)
TLS (Transport layer security)
SET (Secure electronic transaction)
3D SET (developed by VISA 2000)
8/7/2019 e-Commerce in Business
http://slidepdf.com/reader/full/e-commerce-in-business 49/67
` Study Unit 5: Online Marketing Principles
` Study Unit 6: Special Applications of Online
Marketing
` Study Unit 7: Advertising Online` Study Unit 8: e-Tailing
` Study Unit 9: eCRM and Online Branding
8/7/2019 e-Commerce in Business
http://slidepdf.com/reader/full/e-commerce-in-business 50/67
` Outcomes Describe the ³Market´
x In normal sense
x In terms of e-commerce
Give an overview of the working of the model of e-commerce consumer behaviour
What are the general characteristics of internet users
What is the meaning of Market segentation
x
Why is this NB for e-commerce One-to-one marketing on the internet
8/7/2019 e-Commerce in Business
http://slidepdf.com/reader/full/e-commerce-in-business 51/67
` Outcomes What is Customer Relationship management (CRM)
x How can it be incorporated into e-commerce
What are the differents tools that can be used in e-
commerce to enhance customer service
Market research in e-commerce
8/7/2019 e-Commerce in Business
http://slidepdf.com/reader/full/e-commerce-in-business 52/67
` The Market defined Amarket is usually a group of people with the need to
buy a product or service, the financial means to buy it,
the willingness to make the purchase and the authority to
do so.x The business to business market
x The business to consumer market
x The electronic marketplace
8/7/2019 e-Commerce in Business
http://slidepdf.com/reader/full/e-commerce-in-business 53/67
MacroEnvironment
Market
Environment
MicroEnvironment
8/7/2019 e-Commerce in Business
http://slidepdf.com/reader/full/e-commerce-in-business 54/67
INTERNAL INFLUENCING
FACTORS
EXTERNAL INFLUENCING
FACTORS
STIMULI
Product,
Distribution,
Promotion, Price
DECISION-MAKING PROCESS
Awareness of need, Gathering of
information, Evaluation, Decision-
Making, Action (Purchase),
Post-purchase evaluation
Need fulfilment,
satisfaction
E-COMMERCE CONTRIBUTIONS
Logistics, Technical
Support, Customer Service
8/7/2019 e-Commerce in Business
http://slidepdf.com/reader/full/e-commerce-in-business 55/67
` Market Segmentation Demarcating the heterogeneous mass market into more
homogenous groups.
Purpose: to analyse each group as a potential target for
which a particular marketing plan and strategy can beformulated
The various virtual communities that the internet has
helped create have become an ideal target market for
specific products and services.
The virtual community is a gathering of people who share
a common interest
8/7/2019 e-Commerce in Business
http://slidepdf.com/reader/full/e-commerce-in-business 56/67
` One-on-One Marketing on the Internet
` Customer Relationship Management (CRM)
` E-commerce customer service` Tools to enhance customer service
` Market Research
8/7/2019 e-Commerce in Business
http://slidepdf.com/reader/full/e-commerce-in-business 57/67
` Social Networks
` Search Engines
` Marketing Models Viral Marketing
Affiliate Marketing
Multiple Partners
Selling up
` SMS Marketing
8/7/2019 e-Commerce in Business
http://slidepdf.com/reader/full/e-commerce-in-business 58/67
` What are the benefits
` Terminology
` Banners
` E-mail` How to market a website
` Cost benefit analysis
` How do we know if our online adverts are effective
8/7/2019 e-Commerce in Business
http://slidepdf.com/reader/full/e-commerce-in-business 59/67
` Retailing in e-commerce
` Business models
` Direct Internet Marketing
` Internet shopping process
8/7/2019 e-Commerce in Business
http://slidepdf.com/reader/full/e-commerce-in-business 60/67
` E-CRM
` Tools for building Customer relationships
` The meaning of branding
` Brand equity` Ways of adding value onnline
` Brand communities
` Steps in online brand building
8/7/2019 e-Commerce in Business
http://slidepdf.com/reader/full/e-commerce-in-business 61/67
` Study Unit 10: Business-To-Business (B2B) e-
Commerce
` Study Unit 11: Special e-Commerce Applications
8/7/2019 e-Commerce in Business
http://slidepdf.com/reader/full/e-commerce-in-business 62/67
` Explain advantages
` What is the B2B infrastructure
` B2B models
` Different B2B formats` Supply chain
` B2B Management Components
` Meaning, benefits and implementation of ERP
8/7/2019 e-Commerce in Business
http://slidepdf.com/reader/full/e-commerce-in-business 63/67
` The meaning and Benefit of E-Procurement
` The meaning and benefit of E-Logistics
8/7/2019 e-Commerce in Business
http://slidepdf.com/reader/full/e-commerce-in-business 64/67
` The E-Marketplace
` Portals
` Virtual Communities
` Auctions
8/7/2019 e-Commerce in Business
http://slidepdf.com/reader/full/e-commerce-in-business 65/67
` Study Unit 12: Managing Your e-Commerce
activities
8/7/2019 e-Commerce in Business
http://slidepdf.com/reader/full/e-commerce-in-business 66/67
` Creating an e-Commerce business plan
8/7/2019 e-Commerce in Business
http://slidepdf.com/reader/full/e-commerce-in-business 67/67