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    投影片 投影片 Presentation Transcript

    • The E-Commerce Imperative Chapter 1 challenges, issues and strategies
      • Internet
        • profoundly change the business world
        • enabled a new way of conducting commerce
          • e-commerce
      • Electricity and power motor
      • Computer and Internet
      • Customer relationship management are
        • the competitive advantage
        • the bottom–line for market leadership
      • of the information age
      • Customer information is the currency of success in the 21 st century marketplace
      • Amazon.com
        • Earth’s biggest bookstore
        • The real prize
          • Earth’s biggest customer database
            • Not: name, address, balance
            • Buying behavior
        • Shop the WEB
          • The place to find anything customers want to buy online
      • Amazon’s customer acquisition technique
        • Selling product
        • PlanetAll
          • Help 1.5 million members
            • To keep up important professional and personal contacts
            • Electronically remind a member of a special occasion
          • 15 millions items happen to be a mouse click away
        • One stop convenience
        • Bring buyers, sellers of everything, everywhere
      • Business-to-Business marketplace
        • Establish industrial communities-of-interests
        • Ariba and Commerce One
          • Change from selling procurement software
          • To establishing multi-seller, multi-buyer procurement market-places
      • Owning the customer, the whole customer, is the ultimate prize of 21 st century business
      • Economies shift
        • From producer
        • To consumer
      • The secret is
        • Customize offerings
        • One customer at a time
      • Seller Beware
      • Magic in owning customers
        • Give them what they want, when and where they want it
      • Key:
        • Capturing and analyzing info about buying behavior
      • Knowing what the customers want
      • Buying experience is nothing less than delight
        • Providing full spectrum of individualized goods and service
      • Concept is simple, implementation is HARD
        • Internet
      • Three pillars of any business transformation
        • Technology, process and people
      • Goal of course:
        • Understanding how internet changes the world of business
        • E-commerce
          • is not a single event
          • Is a ongoing journey
        • Support the complete external business process
          • Information stage (electronic marketing, networking)
          • Negotiation stage (electronic markets)
          • The fulfillment (order process, electronic payment)
          • Satisfaction stage (after sales supports)
    • Internet & business landscape
      • Industrial age
        • Automobile, interstate highway
      • Information age
        • Internet
          • Eliminates the constraints of time and distance
          • Business ubiquity: conduct business everywhere, all the time
      • From “The network is the computer”
        • Sun Microsystems’ slogan
      • To “The network is the business”
        • Company information available worldwide
        • Business transaction flow friction-free anywhere, anytime to customers, suppliers, and trading partners
        • Information appliances are business touch points
          • Cell phone, pagers, palm tops, web TV,…
    • Power shift to the customers
      • Digital economy
        • IS customer-centric
        • NOT product centric
          • IMB Global service vs. IBM MAPICS
      • Company engineers customer processes that delight will win
      • Information is power
        • Authoritarian society
          • One-way hierarchical
          • Info flow down: One to many
        • Democracy
          • Matrix forms of communication
          • Many to many
        • Industrial age
          • Info flow one way: from producer to customers
        • Information age
          • Internet provide many to many connection
          • Turn the produce-customer relationship upside down
      • Customer Age
        • Customer centric
        • Mass customization (vs. mass production)
      • EC is
        • Reengineering end-to-end customer process
          • Complete solution
          • Reducing time
          • Eliminate steps where possible
          • Build consumer communities-of-interest
          • Provide full service consumer process
          • OR someone else will
      • EC is
        • Reaching out the ultimate consumer
          • B2B, B2C
          • B2B’s customer
            • The one who requisitions, received and often recommends
            • The one who actually place orders (the purchasing agent)
          • Ultimate customer: the only who recommend
    • Global sales channel
      • NO geographic market territories
      • Global potential and perspective
        • The net levels the playing field
        • Daunting task
          • Multiple languages, legal systems and business cultures
          • French ban yahoo.com auction
        • Expect new entrants from anywhere, anytime
        • Never rest to compete in the global marketplace
    • Reduced the cost of buying and selling
      • Company MUST take this opportunity or find itself at a significant competitive disadvantage
        • Dell vs. Compaq, ….
        • Variable cost are near ZERO
        • Potential customers are tremendous
        • Initial cost is high
        • Printing and distribution cost are nil
      • Direct online sales
        • Simple (see-buy-get)
          • Book
        • Complex (see-configure-negotiate-contract-fulfill-settle)
          • Dell, Cisco
      • Direct online sale dramatically “TURN” physical inventory
        • Dell
          • 1993, sales (2.9 billions) inventory (220 million)
          • 1997, sales (12.3 billions) inventory (233 million)
            • 8 days of inventory
          • 2000, 5 days
          • Aiming for HOURS instead of DAYS
        • Wal-Mart
          • Just in time inventory
            • Outsourcing inventory control directly to its major suppliers in real-time
    • Converging touch points
      • E-Commerce applications and systems must be available regardless of device or location
        • Web browser
        • Customers, suppliers, trading partners’ touch points
        • Mobile workforce
        • Integrate
          • Telephone
          • Call centers
          • Palm top, lap top, cell phone, PDA, fax, pager, IP telephone, email, digital postal mail, kiosk
        • Digital touch points create new sources of customer information
          • Analyze buying behavior
          • Customize offering to individual
    • Always open for business
      • A web site follows the sun, greeting markets as they arise each day
        • Demands non-stop systems and network assets
        • Redundancy, scalability, and fail-safe
      • The good news:
        • “digital sales staff” work around the clock without demanding overtime
      • The sobering news:
        • E-commerce systems require availability and reliability that can be achieved only through much effort and investment
      • Reliability
        • eBay outage
          • 1999, lost 3 – 5 millions revenues in the second quarter
      • Scalability
        • “stampedes” with breaking news
        • Speed is important
          • Online shoppers would wait for 8 seconds for a site to download
          • Slow securities-trading site (Trade stocks)
    • Reduced Time-to-Market
      • Time-to-market
        • No longer a competitive advantage
        • A competitive necessity
      • Microsoft
        • Beta version
        • Reach market before release
        • Customers actually involved in product development
        • Customers prefer what they already known
      • Time-to-market can and must be successfully managed
        • Collaborative product development
        • Knowledge sharing
    • Enriched buying experience
      • Multimedia presentation of products
        • Fit an outfit at Lands’ End.com
      • Tools assist customers in buying process
        • Dell.com help you configure a computer
      • Chat room
        • Customer to share their product and service experience
          • Potential buyer can learn
          • Specialty goods
            • Purchase decision have many dimension
            • Involve multi-step process
            • Community-of-interest
          • 大學招生、遊學、留學
      • B2B: Sharing
        • product specification
        • bill of material
        • product scheduling
      • across suppliers and trading partners in real-time to increase productivity in design, development, and procurement
    • Customization
      • Cornerstone for building a customer-centric business
      • Interacts electronically with customers
        • Buying behavior can be analyzed to customize
        • One-to-one marketing revolution
          • Find solution better fit their need
          • Saving time in searching
            • Never presenting a huge catalog
        • Greater relationship
          • Business know what customer will buy
          • Cross selling
            • Harvard Business School 入學許可, 豪華學生宿舍
          • Up-selling
            • New computer game, luxury video card
      • Demographics
      • Biographics: long term interests of the individual
    • Self service
      • Customer service with greater satisfaction and reduced cost
      • Frustrated customers
        • Navigate call center
        • Intolerable on-hold
        • A human abruptly told you to call another number
      • Customer will go to the self-service lane on the information highway
    • Reduced barriers of market entry
      • A benefit and a cause of concern
      • New entrants can be successful
        • Discover and delivery value to customer
          • Hotmail.com
            • Reaches 1,000,000 members in 6 month with 50k budget
            • Reaches 12M in one years
        • Competitors and replication is sure to follow
      • Requires constant stream of innovation to sustain competitive advantages
    • Demographics of the internet users
      • Information about income, sex, age and geographic
        • Early users
          • Young, male, educated
        • Now
          • Information appliance
          • More normative
      • Electronic market is much smaller than total consumer market
        • Not even closer to critical mass
        • Bandwidth demographic
          • Business
          • Individual bandwidth demographic
            • Keep it simple and snappy
            • Track bandwidth trend
    • Power shift to Communities-of-Interest
      • Customers go communities-of-interest first to explore and discover solution
        • Yahoo! Chat room vs. U.S. stock trading
      • People having common interest go to share ideas, information, and opinions
      • Customer pull info instead of marketing push
      • Industrial age
        • Labor union
      • Information age
        • Consumer union
      • Consumers go there first to discover and explore solution
    • Cybermediation
      • The middleman is dead, long live the middleman.
      • Cybermediaries can provide compelling values
        • Aggregating many and diverse resources around a complete solution via internet
        • An airline ticket is not a vacation
          • Focus on the bundles of solutions
            • Customers needs and requirement
      • Look for ways to aggregate value
        • Industry portal
    • Logistics and Physical Distribution
      • Physical aspect of doing business
        • Often forgotten component in e-commerce discussion
      • Time value for info
        • Internet: ability to move info around the world at the speed of light
      • Time value of product
        • Physical distribution channel
      • Warehouse of info age
        • Not a holding bin
        • An assembly plant
          • Fedex: Flying warehouse
      • Factory of the future
        • Amazon.com take over Fedex?
        • Fedex take over Amazon.com?
    • Branding
      • Loyalty and acceptance still have to be EARNED
        • Enter a credit card number at the “BEST” price site???
        • First on the net
          • Brand name on the net
        • Building loyalty and ultimate trust
          • Convenient, cost-effective, informative, simple, secure, and reliable
    • When most market behave like the stock market
      • Death of fixed pricing
        • Coca cola test price base on weather
      • The reality of internet pricing: dynamics
        • Real-time and global
        • Interactive and close to perfect info
      • Internet buying decision
        • Price, availability, perceive quality, and service
    • Auction everywhere
      • Liquidate surplus goods
        • Last minute deal and bargains for unsold media time
          • Priceline.com: excessive airline capacity
      • Help company set price on first run goods
        • Fixed price will fade in the digital economy
    • Hyper-efficiency
      • BPR, business process reengineering
        • Internal efficiency
      • Internet streamline business processes
        • Hyper-efficient supply chains
        • Value chains of information
    • Conclusions
      • Manager must know the “look and feel” of
        • Digital economy
        • New infrastructure
        • New way of conducting business and competing
        • New business models
        • New rule of competition
      • Internet
        • Is NOT a competitive advantage
        • Is a NECESSITY
    • Homework 1
      • Pick an Internet phenomenon which attract you most
        • Find an example from .tw country domain
        • Write an one page report
          • Describe the e-commerce site
          • The upside of the e-commerce site
          • The downside of the e-commerce site
        • upload your report to cu.nsysu.edu.tw