Ch03 ecommerce-fac

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  • 1. IT for Decision Makerse Commerce Overview By Taholo Kami for UNESCO
  • 2. What is e Commerce? e commerce is enabling or achieving your business objectives by using information technology to enhance or transform your business processes. Kami, 2000
  • 3. e commerceBusiness to business (B2B)  automating supply increasing business efficiency Car manufacturing ordering tires from supplierBusiness to Consumer (B2C) Retail Sales ,Ordering books online Customer SupportConsumer to Consumer (C2C) Online Auctions of second hand articles, antique pieces
  • 4. eCommerceecommerce is more then just an online shop selling goods…. Businesses make huge savings by more efficient interaction with their suppliers or buyers. A local pharmacist orders 60% of his supplies from an overseas pharmaceutical suppliers website and saves 5% in his purchases - is this ecommerce? A remote Fiji resort attracts guests from the USA after several exchanges of email. Is this ecommerce?
  • 5. Global400 million users of Internet worldwide1999 US online retail sales - US$20bn. Forrester Research2000 US online retail sales - US$30bn+ Forrester Research2004 US Online retail sales US$6.9 trillion. Forrester Researchelectronic payment of bills and banking will cost US Postal Service $17bn over 10 years.
  • 6. Interpretation ?Consumers are willing to spend money on online transactions.Despite the recent drop in investment - consumers continue to use the Internet in growing numbers.The US figures are only part of the global picture.
  • 7. What is working?Travel / Tourism Retail - items that don’t need personal touch - objectivity in product quality and performance music, books, gifts, Computers, electronic items AuctionsReal Estate - houses and investment properties.Customer support servicesMore efficient and effective processes between businesses (B 2 B)
  • 8. What is not working?Items which require “touch and trial” Luxury goods ClothesGroceries - it works for some people but market is restrictedNote: Many OFF line factors determine success of Online service.Eg. Transport network, customer profiles,
  • 9. Demonstrations - TourismTourism: Sailing Safaris - Tonga One boat operation in 1996 from small island base  Competing with 2 multinational yacht companies with global marketing network Since 1997 - 80% of business from web site. This statistic 60-80% of bookings from web inquiries is common to Tourism operators in the Pacific.
  • 10. Objectives?Why get online? Promote awareness of your Organization Sell a product Customer support Information and contact page Networking Everyone else has a web page
  • 11. PlanWhat is your product? Electronic, Services or physical Portable and inexpensive to deliver TourismWho is your market? Overseas buyers Upper income art collectors Budget travellers / Up marketObstacles, Implementation and deadlines.
  • 12. Getting OnlineHosting Your Website Fast Access Cost, Support, Space and ServicesChoosing a Domain Name (web address) / .nu / .to / .tv / .fj / Calling Card Choose name that relates to product Reflects on organization Easy to remember
  • 13. Design IssuesOften Simple Is Better E.g. National PNG, Yahoo Complexity depends on your website objectivesPlanning content How do you keep content fresh and relevant Who Develops your website? Professional Services Do it Yourself
  • 14. Web Site SoftwareWeb-site Creation Common Software Tools. Image Editing  Adobe Photoshop  Web Page Development Paint shop Microsoft Front page - $150 Dream Weaver - $150 – 200 Netscape Communicator-Free Note: There are a lot of cheaper software online.
  • 15. Managing your Web SiteManaging your website can take TIME!Adapting Business processes Customer expectations Limitations of the medium (non face to face)
  • 16. Transactions1. Getting paid online is very difficult in some countries. Many banks will need a large deposit or a strong relationship to allow a SME to open a merchant / credit card processing account at a bank.Alternatives include: Bank transfer Credit Cards  Merchant account  Manual / Automated processing  Third party processing 
  • 17. DeliveryDelivering an artifact after online purchase or attracting visitors to an eco tourism resort - managing expectations is essentialPeople are used to guaranteed delivery but more importantly, communicate reality so expectations are realistic. E.g. Implement a 2 week guarantee for goods Ensure online advertisement meets expectations Use a reliable delivery service (TNT, FedEx)
  • 18. Marketing Web siteHow do people find your website?ONLINE Strategy Links from related and / or popular web sites Search Engines Online Advertisements Informed by other users
  • 19. Marketing Your WebsiteOFFLINE Strategy - Show Your URL Stationary Advertising on conventional media Trade shows
  • 20. Making a contractWhat terms do you want to include?What risks are you trying to avoid?How will disputes about contract be dealt with?What is the governing law?Who will sign it?
  • 21. ConclusionDespite infrastructure limitations, the target market in developed countries are likely to be Internet users.If unsure, start small. An existing website helps develop your capacity to interact with customers and measure web potential.Lobby Government for effective IT Strategy that develops infrastructure and builds local capacity.