The E-Commerce Imperative Chapter 1 challenges, issues and strategies
<ul><li>Internet  </li></ul><ul><ul><li>profoundly change the business world </li></ul></ul><ul><ul><li>enabled a new way ...
<ul><li>Customer relationship management are  </li></ul><ul><ul><li>the competitive advantage  </li></ul></ul><ul><ul><li>...
<ul><li>Amazon.com </li></ul><ul><ul><li>Earth’s biggest bookstore </li></ul></ul><ul><ul><li>The real prize </li></ul></u...
<ul><li>Amazon’s customer acquisition technique </li></ul><ul><ul><li>Selling product </li></ul></ul><ul><ul><li>PlanetAll...
<ul><li>Business-to-Business marketplace </li></ul><ul><ul><li>Establish industrial communities-of-interests </li></ul></u...
<ul><li>Economies shift </li></ul><ul><ul><li>From producer </li></ul></ul><ul><ul><li>To consumer </li></ul></ul><ul><li>...
<ul><li>Magic in owning customers </li></ul><ul><ul><li>Give them what they want, when and where they want it </li></ul></...
<ul><li>Knowing what the customers want </li></ul><ul><li>Buying experience is nothing less than delight </li></ul><ul><ul...
<ul><li>Three pillars of any business transformation </li></ul><ul><ul><li>Technology, process and people </li></ul></ul><...
Internet & business landscape <ul><li>Industrial age </li></ul><ul><ul><li>Automobile, interstate highway </li></ul></ul><...
<ul><li>From “The network is the computer” </li></ul><ul><ul><li>Sun Microsystems’ slogan </li></ul></ul><ul><li>To “The n...
Power shift to the customers <ul><li>Digital economy </li></ul><ul><ul><li>IS customer-centric </li></ul></ul><ul><ul><li>...
<ul><li>Information is power </li></ul><ul><ul><li>Authoritarian society </li></ul></ul><ul><ul><ul><li>One-way hierarchic...
<ul><ul><li>Industrial age </li></ul></ul><ul><ul><ul><li>Info flow one way: from producer to customers </li></ul></ul></u...
<ul><li>EC is </li></ul><ul><ul><li>Reengineering end-to-end customer process </li></ul></ul><ul><ul><ul><li>Complete solu...
<ul><li>EC is  </li></ul><ul><ul><li>Reaching out the ultimate consumer </li></ul></ul><ul><ul><ul><li>B2B, B2C </li></ul>...
Global sales channel <ul><li>NO geographic market territories </li></ul><ul><li>Global potential and perspective </li></ul...
Reduced the cost  of buying and selling <ul><li>Company MUST take this opportunity or find itself at a significant competi...
<ul><li>Direct online sales </li></ul><ul><ul><li>Simple (see-buy-get) </li></ul></ul><ul><ul><ul><li>Book </li></ul></ul>...
<ul><li>Direct online sale dramatically “TURN” physical inventory </li></ul><ul><ul><li>Dell </li></ul></ul><ul><ul><ul><l...
<ul><ul><li>Wal-Mart </li></ul></ul><ul><ul><ul><li>Just in time inventory </li></ul></ul></ul><ul><ul><ul><ul><li>Outsour...
Converging touch points <ul><li>E-Commerce applications and systems must be available regardless of device or location </l...
<ul><ul><li>Integrate </li></ul></ul><ul><ul><ul><li>Telephone </li></ul></ul></ul><ul><ul><ul><li>Call centers </li></ul>...
Always open for business <ul><li>A web site follows the sun, greeting markets as they arise each day </li></ul><ul><ul><li...
<ul><li>The good news: </li></ul><ul><ul><li>“digital sales staff” work around the clock without demanding overtime </li><...
<ul><li>Reliability </li></ul><ul><ul><li>eBay outage </li></ul></ul><ul><ul><ul><li>1999, lost 3 – 5 millions revenues in...
Reduced Time-to-Market <ul><li>Time-to-market  </li></ul><ul><ul><li>No longer a competitive advantage </li></ul></ul><ul>...
<ul><li>Time-to-market can and must be successfully managed </li></ul><ul><ul><li>Collaborative product development </li><...
Enriched buying experience <ul><li>Multimedia presentation of products </li></ul><ul><ul><li>Fit an outfit at Lands’ End.c...
<ul><li>Chat room </li></ul><ul><ul><li>Customer to share their product and service experience </li></ul></ul><ul><ul><ul>...
<ul><li>B2B: Sharing </li></ul><ul><ul><li>product specification </li></ul></ul><ul><ul><li>bill of material </li></ul></u...
Customization <ul><li>Cornerstone for building a customer-centric business </li></ul><ul><li>Interacts electronically with...
<ul><ul><li>Greater relationship </li></ul></ul><ul><ul><ul><li>Business know what customer will buy </li></ul></ul></ul><...
Self service <ul><li>Customer service with greater satisfaction and reduced cost </li></ul><ul><li>Frustrated customers </...
Reduced barriers of market entry <ul><li>A benefit and a cause of concern </li></ul><ul><li>New entrants can be successful...
Demographics  of the internet users <ul><li>Information about income, sex, age and geographic </li></ul><ul><ul><li>Early ...
<ul><li>Electronic market is much smaller than total consumer market </li></ul><ul><ul><li>Not even closer to critical mas...
Power shift   to  Communities-of-Interest <ul><li>Customers go communities-of-interest first to explore and discover solut...
<ul><li>Industrial age </li></ul><ul><ul><li>Labor union </li></ul></ul><ul><li>Information age </li></ul><ul><ul><li>Cons...
Cybermediation <ul><li>The middleman is dead, long live the middleman. </li></ul><ul><li>Cybermediaries can provide compel...
<ul><ul><li>An airline ticket is not a vacation </li></ul></ul><ul><ul><ul><li>Focus on the bundles of solutions </li></ul...
Logistics and Physical Distribution <ul><li>Physical aspect of doing business </li></ul><ul><ul><li>Often forgotten compon...
<ul><li>Warehouse of info age </li></ul><ul><ul><li>Not a holding bin </li></ul></ul><ul><ul><li>An assembly plant </li></...
Branding <ul><li>Loyalty and acceptance still have to be EARNED </li></ul><ul><ul><li>Enter a credit card number at the “B...
When most market behave like the  stock  market <ul><li>Death of fixed pricing </li></ul><ul><ul><li>Coca cola test price ...
Auction everywhere <ul><li>Liquidate surplus goods </li></ul><ul><ul><li>Last minute deal and bargains for unsold media ti...
Hyper-efficiency <ul><li>BPR, business process reengineering </li></ul><ul><ul><li>Internal efficiency </li></ul></ul><ul>...
Conclusions <ul><li>Manager must know the “look and feel” of  </li></ul><ul><ul><li>Digital economy </li></ul></ul><ul><ul...
<ul><li>Internet </li></ul><ul><ul><li>Is NOT a competitive advantage </li></ul></ul><ul><ul><li>Is a NECESSITY </li></ul>...
Homework 1 <ul><li>Pick an Internet phenomenon which attract you most </li></ul><ul><ul><li>Find an example from .tw count...
Upcoming SlideShare
Loading in …5
×

投影片

313 views
246 views

Published on

Published in: Business, Technology
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
313
On SlideShare
0
From Embeds
0
Number of Embeds
2
Actions
Shares
0
Downloads
1
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

投影片

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

×