Risks and facts for the creation of online distribution structures - E-Business Print
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Transcript of Risks and facts for the creation of online distribution structures - E-Business Print
Bernd ZipperCEO zipcon consulting GmbHAssistant Professor E-Business Print, University of Wuppertal
analyze • advice • implement
From euphoria back to reality:
Risks and facts for the creation of online distribution structures
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If it always were so easy…
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… and it sounds sooooo good – doesn‘t it?
… und es hört sich soooo gut an – oder?Customer
Trade Distribution
Logistic
Production
Research & Development
DigitaldigitizableNon-digitizable,
configurableNon-digitizable,
non-configurableProduct
R & D costs R & D costs R & D costs R & D costs
Production costs Production costs Production costs Production costs
Packaging and transportation
costs
Packaging and transportation
costs
Gross margin
Profit margin
Profit margin
Profit margin
Market price
source: referred to Schinzer 1998
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Do you notice how fast you compare apples with oranges?
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Print + media remain in the area of a hybride business model
… und es hört sich soooo gut an – oder?Customer
Trade Distribution
Logistic
Production
Research & Development
DigitaldigitizableNon-digitizable,
configurableNon-digitizable,
non-configurableProduct
R & D costs R & D costs R & D costs R & D costs
Production costs Production costs Production costs Production costs
Packaging and transportation
costs
Packaging and transportation
costs
Gross margin
Profit margin
Profit margin
Profit margin
Market price
source: referred to Schinzer 1998
analyze • advice • implement
Just as a reminder:
Yes, we make our living
with printed paper.
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Almost all of today‘s large providers startet 10 years ago and do have a long “process of development and distress” behind them.
The internet is like real life: Earning money as quickly as possible, happens so seldomly as winning the lottery jackpot…
Brief statement…
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Top 6 mistakes in E-Business Print…
Everything in the internet is always cheap.
Online distribution = cheap employees
Online print = Quality? Doesn’t matter.
“I will develop the software by myself.”
“Programming will be done by a student.”
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Top 6 mistakes in E-Business Print…
As owner I do not need to understand the internet – instead I will “buy” me a specialist!
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Caution: you are leaving the comfort zone!
reference: Prof. Jürgen Moormann, ProcessLab Frankfurt School of Finance
Changes in the market
Regulations
Customer structure
Product complexity
Technology
no-
gro
wth
dynam
ichig
hly
co
mp
eti
tive
Profit chain
Levels
of
com
peti
tion
Deconstruction of value-added
chain
Linear product innovation
Service and quality
orientationRegulated
market
New business models
Traditional value chaineWertkette
New value chain
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“The fisch always stinks from the head downwards …”
Every enterpreneur, who wants to be successful online needs to know, accept, adapt and use the regulations and principles on the internet.
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What does this mean?
40% of all online print projects fail, because the owner/manager is not willing to accept the new principles …
“I do know my customer…”
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What does this mean?
Even if the enterpreneur “knows” his client…
Until the start of his own offering, he has never met him as an online customer so far.
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What does this mean?
For the customer there are completely different principles effective … and you should know them.
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Challenge: Transparency
Make sure that the others are talking about you – and so far, there have never been so many chances for that!
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Develop your “market place” strategy
RSS
Flickr
Picasa
Google+
YouTube
Social
media strategy
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Pay attention to…
Darauf sollten Sie achten …Absolute usability.Look to it that there is a constant visual appearamce, B2B and B2C ask for the same “service elements” – modernize outdated pages and regularly update them!1.“live” multichannel & multi-shop!Develop your own multichannel-shop strategy on basis of a flexible platform and integrate mobile commerce and themed shops right from the beginning.
2.Social media “integrated properly”!It used to be the market place – today it is LinkedIn and Facebook – you must ensure, that people are talking about you and integrate external platforms with your shop.3.
resource: zipcon/HighText Verlag
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Pay attention to …
Darauf sollten Sie achten …Personalized communication!Any possible communication in the shop should be CUSTOMER-RELATED and not unattributed. Partition and sort your offerings for your customer.4.Multimedial -based presentations.Complex Products require explainations and demonstrations via video, animation, chat, webinar, 3D views, and possibly samples.5.Customer service as sales support.Hotline, chat, personal support = “Up-Sales” – the customer notices that real persons work on their jobs and in the best case establish a true relationship with the shop and your business.6.
resource: zipcon/HighText Verlag
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Pay attention to …
Darauf sollten Sie achten …Ensure “consistency”!Only if all of your statements, product descriptions, etc. are identical on all of the used platforms (and looking good), your customer will trust you and value is created.7.Flexible E-Commerce architecturesThe web is growing daily – only if your software architecture is growing along, you can secure stable long-term growth and continually expand into new markets.8.100% analysisNever ever before you had the chance to 100% get to know what your customer likes and what he dislikes. Are your products profitable? This is what you definately need to find out and know.9.
resource: zipcon/HighText Verlag
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Impulse to buy: when does a customer buy?
detailed and informative product descriptions
appealing product presentation
product recommendations and evaluations of other cutomers
professional design of the webseite
additional product informations
optimized form for mobile devices
offering via app
integration of social media elements
44.3%
26.0%
21.0%
16.9%
15.5%
10.9%
5.1%
3.9%
37.9%
33.9%
32.8%
30.6%
29.7%
15.9%
8.7%
7.9%
absoluty important very important
How to read the graphic: 44,3 % of the customers think that detailed and informative product desriptions are absolutly important.
source: zipcon/HighText Verlag
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Frontend 1x1 Meeting the customer‘s expectations
DesignLovingly and complexe design1.
2.3.
UsabilityEasy and intuitive usability
SearchIntelligent search with recommendation feature
resource: zipcon/HighText Verlag
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Backend 1x1 Transparency towards customers and suppliers
Close integrationInterlinking of shop, materials management, and MIS1.
2.3.
High predictabilityPartners expect predictable informations (pricing, shipping time, etc.)
Intelligent middlewareIntegration of B2B customer systems via an intelligent I/O
resource: zipcon/HighText Verlag
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Conclusion:
Selling print on the interent is only successfull with teamwork!
Print-Know-How combined with modern IT and web knowledge are the key to success.
Turn it into business success!
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Strategies …
Copying business models is seldomly successfull.
Reinvent yourself – in case of need with external consultancy!
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… this means for us as printers.
Rethinking.
You will become a solution and online provider. Whether you like it – or not.
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… this means for us as printers.
Think holistically!
Think like your customers do … and not like your IT or print technologist!
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The bottom line.
It is also not done with a single strategy.
My hint:Start thinking hard and Make long-term plans!
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Thank you for your attention.
Comments, remarks and complaints: