Ecommerce Applications 2007/8 Session 11 What is E-commerce? A bird’s eye view Michael...
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Session 1 1 Ecommerce Applications 2007/8 What is E-commerce? A bird’s eye view Michael Zoumboulakis [email protected]
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Transcript of Ecommerce Applications 2007/8 Session 11 What is E-commerce? A bird’s eye view Michael...
Session 1 1
Ecommerce Applications 2007/8
What is E-commerce?A bird’s eye view
Michael [email protected]
Session 1 2
Ecommerce Applications 2007/8
Contact Details
• Michael Zoumboulakis [email protected]• Programme Admin [email protected]• TMA/FMA Extensions [email protected]• Access your email via: www.webmail.bbk.ac.uk• SCSIS Systems Group [email protected]• BBK ITS Support Team [email protected]• Shopcreator login admin.shopcreator.net
Session 1 3
Ecommerce Applications 2007/8
Overview
• Why e-commerce now?• What exactly is it?• Early movers• Marketplaces• Differences and similarities
Session 1 4
Ecommerce Applications 2007/8
Context: Why now?
• Not new: – EDI (Electronic Data Interchange)– SET Protocol (Secure Electronic Transaction)
• So why now?– The Internet!– The Internet market is growing: check access
projections: http://www.internetworldstats.com/stats.htm
– Affordable security: SSL/https Secure Socket Layer, Stronger encryption
– Interactive services, e.g. forums, database enabling, virtual office, advertising
Session 1 5
Ecommerce Applications 2007/8
• E-business: to conduct business electronically, but what does this mean?
E-business what is it?
e-business
customer
supplierbank
carrier
Good soft/hard
Inventory Fulfillment Customer
Service Marketing Measuring
success
Session 1 6
Ecommerce Applications 2007/8
• Buying and selling of goods and services over electronic networks, but what does that mean?
E-commerce what is it?
e-shop site
customer
business
bank
carrier
Good soft/hard Currency Tax models Shipping Exceptions,
returns, charge back
And then: Inventory, Fulfilment, Customer Service, Marketing, Measuring success
payment service e.g. Datacashbank
ISP
ASP
WWW
Session 1 7
Ecommerce Applications 2007/8
Operational Excellence
• Transformation of critical processes, product features• Key questions:
– What % of orders clean?– Are we reducing returns and credits from customers?– What % of customer problems resolved on 1st contact?– How much customer information is visible (one screen).– Is inventory visibility increasing across the supply chain?
• Creating new forms of customer value – measures:– Increase in market shares and gross margins
– Increase in new customer acquisition
– Better retention of customers
Session 1 8
Ecommerce Applications 2007/8
Market places
Manufacture
Wholesale
Value added resell
Retail
Customer
Market place
Business to Business(B2B)
Business to Consumer(B2C)
Where buyers and sellers meet there is an opportunity for an online market place
Session 1 9
Ecommerce Applications 2007/8
Online Market places
Manufacture
Wholesale
Value added resell
Retail
Customer
Market place
Market place
Market place
Market place
Business to Business(B2B)
Business to Customer(B2C)
Where buyers and sellers meet there is an opportunity for an online market place
Session 1 10
Ecommerce Applications 2007/8
Disinter mediation: Online Market places
Manufacture
Wholesale
Value added resell
Retail
Customer
Market place
Market place
Market place
Market place
Business to Business(B2B)
Business to Customer(B2C)
Session 1 11
Ecommerce Applications 2007/8
Example of Early Mover
Author Publisher Distributor Bookshop Customer
Traditional Book Shop Value Chain
Session 1 12
Ecommerce Applications 2007/8
Example of Early Mover
Market placeAuthor
Publisher
Distributor
Bookshop
CatalogueCustomer Info.
PaymentShipping
Advantage catalogue
Community
AssociatesNetworks
Session 1 13
Ecommerce Applications 2007/8
Example of Early Mover
Market placeAuthor
Publisher
Distributor
Bookshop
CatalogueCustomer Info.
PaymentShipping
Advantage catalogue
Community
AssociatesNetworks
Record of previous transactions: purchases, credit card info., shipping info.
Targeted selling on entry 1 click for subsequent
orders Account maintenance Imaginative credits Customer reviews Value added services
Session 1 14
Ecommerce Applications 2007/8
E-commerce - sameness
• Business objectives• Systems Integration• New clients and revenues• Saving money, reducing overheads and increasing
efficiency • End to end customer care• Payment systems • Quality of customer information (database)• Fulfilment system and stock database• Logistics
Session 1 15
Ecommerce Applications 2007/8
E-commerce differences
• Disinter mediation• Personalisation• Bundling• Automation• Value-added• Discounts/ loyalty schemes• Flexible store fronts• Membership• More choice
Session 1 16
Ecommerce Applications 2007/8
Summary
• E-commerce basics• Early movers• Marketplaces• Differences and similarities
