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  • Why B2B is superior? <br /> B2B e-frastructure and e-markets are the continuous extension of previously installed technologies and current marketplace activities. <br /> In (our) views, continuous innovations represent superior investments because they build upon technology platform and economics that have already proven successful. <br />
  • Growing interactivity <br /> -- such as bidding, RFQ <br /> Enhanced market and customer reach <br /> -- Global reach <br /> Regulatory and taxation issues <br /> -- Limited government regulation and taxation on a key driver of B2B <br />
  • branding and distribution, <br /> management execution hustle <br /> -- efficiency <br />
  • Example: Today, with ERP applications, enterprises work internally. With Commerce One’s solutions you work between enterprises <br /> Commerce provides strategic ecommerce solutions that allows your enterprise to optimize commerce between all your customers, partners and service providers <br />
  • Solutions for e-Marketplaces <br /> Value Proposition: <br /> Strategic e-commerce capability to automate their buying wehter ad hoc, catalog based or RFQ - collaborative interactions with your trading partmers…..infrastructure/system capabilities <br /> Truly leverages the power of the Internet <br />

Ecommerce ppt Presentation Transcript

  • 1. E-Commerce Jason C.H. Chen, Ph.D. School of Business Administration Gonzaga University, Washington, U.S.A. Senior Consultant, Nov. 20, 2000
  • 2. Topics • E-Commerce: From B2C to B2B and Beyond • e-Bid Process • Features of a B2B application. • Business plan for an e-Marketplace (next year) • e-CRM and 1-1 Marketing (next year)
  • 3. E-Commerce: From B2C to B2B and Beyond Jason C.H. Chen, Ph.D. School of Business Administration Gonzaga University, Washington, U.S.A. Senior Consultant, Nov. 22, 2000
  • 4. Outline of Topics • EC, B2C and B2B and their models. • How big is B2B? • Where is the Evidence? • What are the revenue models in B2B? • What is driving adoption of B2B? • Why now? •
  • 5. eBusiness Key Concepts • eBusiness – The strategy of how to automate old business models with the aid of technology to maximize customer value • eCommerce – The process of buying and selling over digital media • eCRM (eCustomer Relationship Management) – The process of building, sustaining, and improving eBusiness relationships with existing and potential customers through digital media
  • 6. What is E-Commerce ? • Electronic commerce (EC) is an emerging concept that describes the buying and selling of products, services and information via computer networks, including the Internet.
  • 7. 9% 6%6% 22% 15% 8% 26% 24% 21% In pilot stage Starting to implement In use 1997 1998 1999 Figure: E-commerce on the rise. Source: 1999 SG Cowen/Datamation Networked Computing Survey 364 434 775 623 E-commerce status at sitesFigure: E-commerce apps are a big driver for storage. Average installed online storage in gigabytes. Source: 1999 SG Cowen/Datamation Networked Computing Survey No plans Start in 99/00 Expand in 99/00 Largely done
  • 8. Benefit New channel for existing business Improved customer service Enabled entire new line of business Reduced operating costs Improved cycle time % of Respondents 25% 23% 18% 7% 5% Benefit Keep pace with technology Reduced cost of sales Other Not available None % of Respondents 5% 4% 6% 4% 3% Table: E-commerce’s most promising potential benefits
  • 9. eBusiness Processes WHY Customer Relationship Redesign Business Processes (Outside-In) Applying Technology WHAT HOW
  • 10. eBusiness Processes WHY Customer Relationship Redesign Business Processes (Outside-In) Applying Technology WHAT HOW
  • 11. C B C B Traditional versus E-Business Models? C: Individual Consumer B: Business
  • 12. What is B2C? • B2C (or Extranets) is just web-enabled relationships between existing partners; they tend to be run by a single company seeking to lower the cost of doing business with its current suppliers or individual customers. • Examples? – –
  • 13. Enterprise User Profiles Workflow Business rules Payment Analytics Internet Intranet Figure: A B2C e-business Model
  • 14. B2C Applications • Electronic storefront • Electronic malls • Advertising online • Service online – selling books, toys, computers – e-banking (cyberbanking) – online stock trading – online job market, travel, real estate
  • 15. Figure : B2C and B2B Internet Commerce in the U.S. (Source: Forrester Research) $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 1998 1999 2000 2001 2002 2003 B2C B2B Billion
  • 16. What is B2B? • “B2B” is business-to- business commerce conducted over the Internet (called B2B e-commerce space, or e-marketplaces) N
  • 17. B2B e-Markepplaces: A CEO’s Perspective “The next chapter in the e-business revolution involves the transformation of entire markets and the redefinition of industries. We will see the rise of a new class of entities -- e-Marketplaces -- that will help online buyers and sellers find each other, attack the inefficiencies of traditional markets, and carve out for themselves important roles in the e-business economy.” Louis V. Gerstner Jr. Chairman of the Board and CEO IBM Corporation
  • 18. E-Market is … Web-based marketplace • e-market is Web sites where buyers and sellers come together to communicate, exchange ideas, advertise, bid in auctions, conduct transactions, and coordinate inventory and fulfillment BuyersBuyers SellersSellers MarketSiteMarketSite
  • 19. Figure : A B2B Model (Source: Goldman Sachs Investment Research Report) Banks, Financial Institutions Suppliers •Production materials •Operating goods, services Enterprise Customers Logistics Celarix, NTE
  • 20. E-Channel Management Procurement Network Trading Network E-Customer Relationship E-Commerce E-Portal Management E-Services SCM/ERP/Legacy Appls Businesses Businesses& Consumers 1:NM:1 M:N Knowledge Management/Business Intelligence Focus on e-Business Applications
  • 21. B2B Applications • Advertising • Auctioning • Procurement • Channel management • E-commerce
  • 22. $39 $114 $294 $522 $782 $1,500 $1,113 0 300 600 900 1200 1500 1800 1998 1999 2000 2001 2002 2003 2004 ($Billions) B2B Figure: The Goldman Sachs B2B Sizing in USA How Big is B2B?
  • 23. Where is the Evidence • Three highlights from the Goldman Sachs B2B survey 1.0: – E-Commerce spending on proprietary Web site, e-market, and procurement (75% say, in 2000) – Business are increasingly likely to develop B2B e-markets and to favor online auctions (74% say, in 2000) – Outsourcing e-commerce spending is commonplace among businesses (25% say, up to 75% of e-C spending)
  • 24. B2B Revenue Model • B2B companies exhibit varying business models, depending on the key products and services they offer. The models include: – transaction fees, – auction-driving commissions, – advertising, – content subscriptions, – software licensing
  • 25. B2C vs. B2B B2C B2B Switching Costs Low with multiple suppliers High when integrated with e-frastructure; few qualified suppliers Relationship Type Transactional Long term, mission critical Transaction Type Smaller average selling price Larger average selling price Revenue Model Traffic volume is critical; Large customer base is key Don’t need every customer, only need the right customers Source: Goldman Sachs Investmenet Research
  • 26. The Magnificent Seven B2B Drivers • Increasing competition and globalization • Growing interactivity • Financial opportunity • Efficiencies and cost savings • Enhanced market and customer reach • Real-time needs • Regulatory and taxation issues N
  • 27. Small Business Likely to Fuel B2B • Small businesses will fuel the B2B market – the use of and dependence on the Internet by small businesses as a medium for marketing, distribution, and commerce will likely fuel the B2B market. – as more small business access the Internet and set up corporate Web pages, the more they will employ the Internet to execute their business strategy.
  • 28. Benefits of B2B • B2B solutions create competitive dynamics through: – cost savings • the composition of cost (product versus process costs) • the number of intermediaries in the supply chain. – new financial (revenue) opportunities • the rate of industry-wide B2B adoption • business model N
  • 29. Why Now? • B2B catalysts are now arising to stimulate adoption (mentioned earlier). • Interactive networks have recently become ubiquitous and inexpensive, accelerating the use of B2B applications. • A viral effect will spur copycat behavior throughout the market as more companies continue to implement B2B applications.
  • 30. Which Industries are Likely to Embrace B2B Solutions • Industries that are B2B inclined exhibit certain key characteristics: – the supply chain is highly diffuse, – techno-innovators dominate the culture, – process represents more than 20% of total costs, – products exhibit complex configurations, – expense pressure is intense.
  • 31. • Research show that leading industries migrating online and adopting B2B solutions include the following: – Aerospace/Defense: 35% – Electronics: 25% – Chemicals: 20% – Motor vehicles and parts: 18% – Medical equipment and transport: 17%
  • 32. What Makes a B2B e-market Company Succeed? • Five Critical Success Factors for e-markets: – Business model, – market size, – industry expertise, – branding and distribution, – management execution hustle (not just the formulation of strategy) N
  • 33. Solutions for e-Enterprise Organizations • Streamlines buying and selling between trading partners • Maximizes trade efficiency across the entire supply chain • Strategic e-commerce capabilities in Internet time • Delivers compelling ROI BuyersBuyers SellersSellers MarketSiteMarketSite
  • 34. Solutions for Internet Market Makers • Turn your supply chain into a revenue generation opportunity • Leverage your industry domain expertise into strategic e-commerce solutions • Brings e-commerce to businesses of any size, across all industries YourYour PortalPortal
  • 35. Global Solution for Businesses: The Global Trading Web Global Trading Web Connect once to trade with anyone,anytime, anywhere in the world.
  • 36. European e-markets • B2C e-commerce in Europe is likely to remain approximately two to three years behind the U.S. . • B2B in Europe currently lags the U.S. by two years. • How about in Asia?
  • 37. TASKCo Mission Expand Markets Improve Efficiencies Retain Customers Fundamental Business Drivers Have Not Changed Leveraging Internet to Help Customers to: