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Ecommerce Overview
Ecommerce Overview
Ecommerce Overview
Ecommerce Overview
Ecommerce Overview
Ecommerce Overview
Ecommerce Overview
Ecommerce Overview
Ecommerce Overview
Ecommerce Overview
Ecommerce Overview
Ecommerce Overview
Ecommerce Overview
Ecommerce Overview
Ecommerce Overview
Ecommerce Overview
Ecommerce Overview
Ecommerce Overview
Ecommerce Overview
Ecommerce Overview
Ecommerce Overview
Ecommerce Overview
Ecommerce Overview
Ecommerce Overview
Ecommerce Overview
Ecommerce Overview
Ecommerce Overview
Ecommerce Overview
Ecommerce Overview
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Ecommerce Overview

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  • 1. IT for Decision Makers e 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
    • Business to Consumer (B2C)
      • Retail Sales
      • Customer Support
    • Consumer to Consumer (C2C)
      • Online Auctions
  • 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
    • US Online buying will reach US$6.9 trillion 2004. 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 dot.com 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?
    • Pornography
    • 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 - beyond Tshirts
    • Groceries - it works for some people but market is restricted
    • Note: Many OFF line factors determine success of Online service. Eg. Transport network, customer profiles,
  • 9. e commerce and the Pacific
    • Traditional Barriers
    • Isolation – distance from market
    • Small local markets
    • Limited human capacity
    • Opportunity
    • Internet provides “instant” access to global market
  • 10. e commerce adoption in Pacific
    • Tourism
      • small operators and multi nationals
      • expatriate owned businesses due to better awareness of communications possibilities.
    • Online retailers - often overseas based, some Pacific based exporters.
    • Generally for the Pacific it has been ad hoc entry with ecommerce/
  • 11. Lessons from experience
    • Popular Sites Not = Revenue
      • Online Advertising Market is immature especially in the Pacific.
      • What visitors do on a website is more important then inflated “hits” figures
      • Income models based on advertising must be supported by online sales.
    • Start with a strategy
      • know your market and how to reach them
    • Traditional Off line issues determine profitability
      • management, product, operations and financing.
  • 12. e Commerce and Pacific
    • The challenge is identify market niches for products unique to the Pacific (core competencies)
      • EcoTourism, trade niches, island goods
      • Identify skill industries where local capacity can be developed and product transferred electronically. (insurance, banking, drafting etc)
    • Avoid entry in IT labor market - call centers, credit card processing without an exit plan because these IT niches will be the world’s most MOBILE industries and governed by cost of labor.
  • 13. Demonstrations - Tourism
    • Tourism: www.tongaonline.com/sailingsafaris
    • 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.
  • 14. Example 2 - Tourism
    • Pacificnavigator.com - Travel Portal
    • One stop shop for travel info and bookings.
    • 9 Pacific Island Countries
    • Travel Information and Bookings
    • Sticky Items - bring people back to site
      • message boards for comments
      • News
      • Postcards
  • 15. Example 3 - Retail
    • Www.Fijilive.com - Portal
    • Popular site and daily local news.
    • immature advertising market – difficult to get local advertisers.
    • Sticky Features
        • News
        • Numerous in-house websites
    • sells through www.fijionsale.com
    • uses credit card transactions with manual batch processing
    • Kava, music, Jewelry, etc.
  • 16. Example 4 - Retail
    • Artifacts - Papua New Guinea
    • www.niugini.com - PNG Portal
    • Sticky Features
      • Forums, News, Chat, Postcards, Info pages
      • Sells PNG artifacts.
    • Transactions via email and bank transfers
    • Great product but management and operation issues and no online transactions.
  • 17. Remember
    • The Internet is the best opportunity for Pacific Island business since the Jet Plane however:
    • traditional business principles still matter online.
      • Value to the customer comes first.
      • Be realistic about revenues and costs
    • For the Pacific the initial market is overseas
    • Initiative and creativity are premium .
  • 18. PART II An ecommerce strategy for a Small Pacific Island Business By Taholo Kami for UNESCO
  • 19. 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
  • 20. Plan
    • What is your product?
        • Electronic, Services or physical
        • Portable and inexpensive to deliver
        • Tourism
    • Who is your market?
        • Overseas Fish buyers
        • Upper income art collectors
        • Budget travellers / Up market
    • Obstacles, Implementation and deadlines.
  • 21. Getting Online
    • Hosting Your Website
        • Fast Access
        • Cost, Support, Space and Services
    • Choosing a Domain Name (web address)
    • www.myname.com / .nu / .to / .tv / .fj /
        • Calling Card
        • Choose name that relates to product
        • Reflects on organization
        • Easy to remember
  • 22. 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
  • 23. Web Site Software
    • Web-site Creation
      • Common Software Tools.
      • Image Editing
      • Adobe Photoshop
      • Jasc.com
      • Web Page Development
      • Paintshop Microsoft Front page - $150
      • Dream Weaver - $150 – 200
      • Netscape Communicator-Free
      • Note: There are a lot of cheaper software online.
  • 24. Managing your Web Site
    • Managing your website can take TIME!
    • Adapting Business processes
        • Good Samaritan Inn example
        • Look at employee time
        • Customer expectations
        • Limitations of the medium (non face to face)
  • 25. Transactions
    • Getting paid online is very difficult in the Pacific. 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 / wire
    • Credit Cards
      • Merchant account
      • Manual / Automated processing
      • Third party processing
        • paypal.com
  • 26. 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)
  • 27. 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
  • 28. Marketing Your Website
    • OFFLINE Strategy - Show Your URL
    • www.MYCOMPANY.com
      • Stationary
      • Advertising on conventional media
      • Trade shows
  • 29. Conclusion
    • Despite infrastructure limitations in the Pacific, 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.

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