Itc Irost E C Models Strategies Jun07v2

23-27 JUNE 2007 Workshop on Potential of e-Commerce, IROST, Iran

Lecture 2Lecture 2e-Commerce Models and Strategiese-Commerce Models and Strategies

Martin Labbé

e-Business Adviser

eTrade Development Unit


SummarySummary

1. e-Commerce Models

2. Strategies for e-Commerce

3. Aligning IT strategy to your business strategy

4. Mobile Commerce: background and best practices


e-Business in 2007: global trends

Mobile Business

Networked Economies

Global IT-enabled tradeHolistic approach to ICTs


Despite the many stories about the potential benefits of e-commerce, especially for small scale producers, there is extraordinarily little empirical evidence on how the global spread of business-to-business electronic commerce is actually affecting producer firms.

E-Marketplace Services - Do they support a global marketplace?, Robin Mansell, media@lse, LSE (2002)


1. e-Commerce Models1. e-Commerce Models


Brokerage ModelBrokerage Model

1. Brokers bring buyers and sellers together to make transactions happen, in B2B, B2C and C2C markets.

2. They charge a fee or commission for the service (account or transaction-based)


Vertical e-marketplaces

Created in 2000, Covisint enables the secure sharing of vital business information, applications and business processes…

…for 266,000 users from more than 30,000 organizations in over 96 countries in the global automotive industry.



Brings together 50 of the world's largest retailers, and over 80,000 of their suppliers.

A single technology platform for collaboration that connects retailers and manufacturers to their trading partners to more effectively and efficiently share information and manage

collaborative work processes.



More than 4,000 leading manufacturers and retailers in the alcohol and beverage, automotive, drug, entertainment, grocery, hardlines, healthcare, and office products industries are part of the 1SYNC community.

Synchronize supply chain data.


Horizontal e-marketplaces

Alibaba.com is the world's largest online business-to-business

(B2B) marketplace for global and domestic China trade.


Horizontal e-marketplaces

Online platform for the sale of

goods and services by

individuals and SMEs.

Items are available through auction-style and

fixed-price trading.


e-Markets: Global Landscapee-Markets: Global Landscape

North America 367Europe 455Asia&Pacific 219Latin America 50Africa 25


Advertising ModelAdvertising Model

Acts as an extension of the traditional Acts as an extension of the traditional media broadcast model. media broadcast model.

• Paid-for linksPaid-for links• BannersBanners• Info-adInfo-ad


Infomediary ModelInfomediary Model

Assist buyers and/or sellers understand Assist buyers and/or sellers understand a market, its products and prices by a market, its products and prices by gathering related data.gathering related data.


Merchant ModelMerchant Model

Wholesalers and retailers of goods and Wholesalers and retailers of goods and services. Sales rely on price lists, and services. Sales rely on price lists, and sometimes on auctions. sometimes on auctions.


Online sales, but offline delivery…Online sales, but offline delivery…


2. Strategies for e-Commerce2. Strategies for e-Commerce


Goal: selling online?Goal: selling online?


First step: web marketingFirst step: web marketing

Web marketing is about:

Linking business leads and customers to the company through its presence on the internet:- website, - directories, - industry portals.

Advertising online:- e-mail marketing, - newsletters, - online polls.

Gaining visibility.


Companies invest in web advertisement!Companies invest in web advertisement!

• By 2010, online advertising and marketing will make up 8% of global advertisement spending…

• …in 2006, UK companies spent more on advertising online than in the press!


Online AdvertisingOnline Advertising

• Offer based e-mails

• Newsletters

• Opinion Polls


Online AdvertisingOnline Advertising

• Catalog requests

> Dynamic, interactive and inexpensive!

> Customer service tool


• Top 3 search engines: Google 49%, Yahoo! 22% and MSN 11% (03/06.Nielsen Net Ratings)

• Search engine marketing is projected to grow by 33% this year and to reach $11.6 bln by 2010.(Forrester Research)

• Leave it to the technicians! Indexation Pay-per-click & sponsored links Cross-referencing Search Engine Optimization

Google & Co. can make your company Google & Co. can make your company visible on the internet!visible on the internet!


Supplier directoriesSupplier directories

• A database of suppliers which is searchable by products or services that the suppliers offer.

• Focus on industry and/or

country.

• Basic listings free of charge.


National industry websitesNational industry websites

• A database of suppliers from one country, one industry.

• Pooling the costs.


National industy websitesNational industy websites

www.brapex.netwww.brapex.net (330,000 t/year) (330,000 t/year) Brazilian Association of Papaya Exporters (80%)Brazilian Association of Papaya Exporters (80%)


International industry websitesInternational industry websiteswww.intracen.org/organicswww.intracen.org/organicsIncludes: O&D, directory, publications, standard Includes: O&D, directory, publications, standard references, market studies…references, market studies…


Company websitesCompany websites

• Online brochure…• … but needs to be updated on a

regular basis.


3. Aligning IT strategy to 3. Aligning IT strategy to your business strategyyour business strategy


•Has your organization/company benefited from the use of ICT?

•Does your application of ICT generate direct revenues?

•Do you use e-marketplaces to do business?•Are you comfortable with the pace of ICT development in your area of activity?

Do you think that to survive your business needs to better understand ICT?

In Europe, 94% of all enterprises use a computer, 81% have an internet access and 67% a website.


Enterprise Intranet

Business to Business Extranets

Consumer to Business via the Internet

EliminatePaper = delay

Non-core=OutsourceIntegratedCustomer

communities

Source: Unleashing the Killer App, Harvard Business School Press

A Vision for the e-BusinessA Vision for the e-Business


IT Revolution… at what cost?


4. Mobile Commerce: Background 4. Mobile Commerce: Background and Best Practicesand Best Practices


How does the mobile How does the mobile future look like?future look like?


Mobile Commerce in developing countriesMobile Commerce in developing countries

WIZZIT is a cellphone-based banking facility whose target market is the estimated 16 million unbanked or underbanked South Africans - about 60 percent of the country's population.


Mobile Commerce in developing countriesMobile Commerce in developing countries

Mobile for Good (M4G) in Kenya

Uses mobile phone technology to deliver vital health, employment and community content via SMS on mobile phones.

On average the service advertises over 100 jobs per week accessible to

30,000 subscribers.

http://uk.oneworld.net/section/mobile


Time for Q&A!

Itc Irost E C Models Strategies Jun07v2

Design

Transcript of Itc Irost E C Models Strategies Jun07v2