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1. Understanding E-Commerce
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Basic Concepts of E-Commerce

Basic Concepts of E-Commerce

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1. Understanding E-Commerce Presentation Transcript

  • 1. Amity School of Business Jitendra Singh Tomar 09650512300 jitendratomar@hotmail.comjitendratomar@rediffmail.com Orator
  • 2. Amity School of Business• Part 1: UndErsTanDinG E-Commerce
  • 3. Amity School of Business• Introduction to E-Commerce
  • 4. Amity School of Business• What is E-commerce? • It is technology mediated exchange between parties (individuals or organizations) as well as the electronically based intra or inter organizational activities that facilitate such exchanges. • Commonly known as e-shopping, consist of buying, selling or exchanging of products, services or information over electronic systems such as the Internet and other computer networks. • The use of commerce conducted in this way, draw innovations in • EFT, • SCM, • Internet Marketing, • Online Transaction Processing, • EDI, and the like. Lets Understand
  • 5. Amity School of Business• What is E-commerce? • Modern electronic commerce typically uses the World Wide Web at least at some point in the transactions lifecycle, although it can encompass a wider range of technologies such as e-mail as well. • Mainly it is conducted with the access to premium content on some website. • It is the use of Internet and the web to transact business. • Digitally enabled commercial transaction between and among organization and individuals. Lets Understand
  • 6. Amity School of Business• Dimensions and perspectives: • The concept of e-commerce is spanned across various dimensions. Different school of thought gave different definitions with different perspectives. Some defined it from business perspective and some defined with service perspective. E-Commerce can be defined from various perspectives as: • Communications perspective • Exchange of information over computer networks, telephone lines or any other electronic means. • Business perspective • Application of technology toward the automation of business transactions. Lets Understand
  • 7. Amity School of Business• Dimensions and perspectives: • Service perspective • Tool that address the desire of the firms, consumers and management to cut service costs while improving the quality of goods and increasing speed of service delivery. • Commercial (trading) perspective • Capability of buying and selling products, services and information on the internet and via other online services. • Learning perspective • Enabler of online training and education in schools, universities and other organizations Lets Understand
  • 8. Amity School of Business• Dimensions and perspectives: • Collaborative perspective • Framework of inter and intra organizational collaboration. • Community perspective • Provides gathering place for community members to learn and transact. Lets Understand
  • 9. Amity School of Business• Difference between e-com and e-biz. • E-biz is digital enablement of transaction and process with in a firm or organization. • E-biz involves information system under the control of the firm. • E-biz does not involve commercial transaction across organization boundaries. • E-biz is some times taken as a subset of e-com. Lets Understand
  • 10. Amity School of Business• What is E-commerce? • E-commerce is the use of electronic communications and digital information processing technology in business transactions to create, transform, and redefine relationships for value creation between or among organizations, and between organizations and individuals. • In e-business, on the other hand, ICT is used to enhance one’s business. It includes any process that a business organization (either a for-profit, governmental or non- profit entity) conducts over a computer-assisted network. E-Business could be seen as: “The transformation of an organization’s processes to deliver additional value through the application of technologies, philosophies and computing paradigm of the new economy.” Lets Understand
  • 11. Amity School of Business• History
  • 12. Amity School of Business• In 1970, Baxter Healthcare started with the telephone based business.• 1980, French Minitel installed video system having phone & 8” monitor to start with the video conferencing with other houses.• Internet base e-commerce started in 1990 • October ‘94, Volvo was one of the companies which place advertisement on Hotwired.com. • In 1995, first sale of banner advertisement space was made by Netscape• Till then, • B2C accounts for $700 billion/year. (This is 15%-20% of total business carried out). • B2B accounts for $ 7 trillion/year. E-Com History
  • 13. Amity School of Business• Phases of E-Commerce
  • 14. Amity School of Business• E-Com I (1992 – 2000) • This period was total disaster as it has seen the failure of dot com companies and hence failure of e-commerce. • Main emphasis was on implementation of technology, focus was taken away from other aspects of business• E-com II (2001 onwards) Time & Periods
  • 15. Amity School of BusinessDifference in Period I & Period IIE-Com I E-Com IITechnology Driven Business DrivenRevenue Growth emphasis Earnings & profit emphasisVenture capital financing Traditional financingEntrepreneurial Large traditional firmsDis-Intermediation Strengthening intermediariesPure online strategies Mixed ‘Clicks & Bricks’ strategyFirst mover advantage Strategic follower strength• The failure of E-com I lead to the following themes; • Infrastructure – Technology mix. • Business – stick to basic concept • Society – taming the unprivileged to remove inequality Time & Periods
  • 16. Amity School of Business• Types of E-commerce
  • 17. Amity School of Business• B2C • Amazon.com is general merchandiser that sells consumer products to retail consumers.• B2B • Esteel.com is a steel industry exchange that creates an e- market for steel producers and users. • B2G• C2C • eBay.com, the portal where consumer can auction or sell goods directly to other consumer. • They are like market maker.• P2P • Gnutella S/W permits consumers to share music with one another directly, without the intervention of market maker. E-com Categories
  • 18. Amity School of Business• Driving force behind E-Commerce
  • 19. Amity School of Business• Digital Convergence • The digital revolution has made it possible for digital devices to communicate with one another. The internet’s massive growth during the past decade-a creation of market forces-will continue. Steady increase in computer power and decreasing cost made navigation on the internet a reality.• Anytime, anywhere, anyone • It is available to anyone, anywhere in the world (24x7). E- commerce ties together the industrial sector, merchants, the service sector, and content providers using text, multimedia, video, and other technologies. Drivers
  • 20. Amity School of Business• Changes in organizations • Downsizing large organizations, outsourcing specialized tasks, shortening product life cycles, and encouraging cross-functional business process, all require better communication between the departments that perform these functions. E-commerce, which makes communication easy, is an ideal method of making these connections.• Increasing pressure on operating costs and profit margins • Global competition and the proliferation of products and services worldwide have added unusual pressure on operating costs and profit margins. E-commerce addresses these concerns quickly, efficiently, and with lower cost. Drivers
  • 21. Amity School of Business• Demand for customized products and services • Demand for higher quality and better performance, including a customized way of producing, delivering, and paying for goods and services. Mass customization puts pressure on firms to handle customized requests on a mass market scale. Firms that don’t move with the trend will eventually lose out. Drivers
  • 22. Amity School of Business• Associated Myths
  • 23. Amity School of BusinessThe following myths that need to be addressed:• Setting up a website is easy • True, except it is not easy to ensure performance. There are technology, networking infrastructure, and design criteria to consider.• E-commerce means no more mass marketing • The web is the first commercial channel that enables cost- effective, one-to-one marketing on a large scale, but a business must still market its Web presence.• E-Commerce means a new economy • There is no “new” economy, but there is something new in the real economy. Myths
  • 24. Amity School of BusinessThe following myths that need to be addressed:• E-commerce is revolutionary • In as much as internet technology created a new way to shop, most rules of retailing still apply. Merchandise is obtained from vendors, warehoused, and shipped to customers. Unfortunately, many internet retailers spend a disproportionate amount on the revolutionary tasks of Web site construction & marketing and too little on customer support and fulfillment.• E-commerce is a commercial fad that crashed in 2000 • No question, the dot-com companies frenzy crashed in 2000, but the internet continues to reshape businesses and the information systems that run them. It is an infrastructure for a new way of doing business. Myths
  • 25. Amity School of BusinessThe following myths that need to be addressed:• Identical business models are applicable to all products • Internet sales should still follow different business models depending on the product as different products have different characteristics.• Build it and they will come • Web sites have to be promoted just like any other business, customers bought with price promotions and give away are rarely loyal customers. The moment a competitor lowers the price, customers click over to that site.• The middleman is out • Despite the direct interface between consumers and merchants, few intermediaries continue to surface on the web delivering products to the retailer from Myths the manufacturer.
  • 26. Amity School of BusinessThe following myths that need to be addressed:• Everyone is doing it • The general concept is that Web presence is an E- commerce. Having a website could not be rated as E- commerce operation. • Many organizations having websites still don’t see any compelling business reason to shift over to E-Commerce. Myths
  • 27. Amity School of Business• Features of E-Commerce
  • 28. Amity School of Business• Ubiquity • Available just about every where (Universal) & all the times (24x7). • Liberates market from physical space – shop from the office, home. • Created a market space, instead a market place. Advantage: • Reduce cognitive energy (mental effort to complete a task) and transaction cost (resources required to make the transaction including commuting cost, time, etc) Features of E-commerce
  • 29. Amity School of Business• Global Reach • Permits transaction that are cross culture and over national boundaries. • Potential market size is equivalent to world’s online population. At any point of time, the total population of virtual customers is higher that the physical customer.• Universal Standards • The basic skeleton is Internet Technology – standards that are shared by all nations around the world. (except political and legal). In traditional business format, standards differs from region to region. • Reduced market entry cost and search & promotion cost. Features of E-commerce
  • 30. Amity School of Business• Richness & Information density • The information available online is rich in content. • The total amount and good quality information is available to all market participants, customers and merchants. • The information is multimedia in nature, comprising of text, pictures, audio & Video. • Reduce information collection, storage and processing, further reducing the communication cost. • Increase accuracy and timelines of information.• Interactivity • The two way communication could easily be established. Also, the space could be shared among different customers to exchange the feedback about a product or a service. Features of E-commerce
  • 31. Amity School of Business• Personalization and Customization • Specific messages could be targeted to specific individuals. • Changing the delivered services based on user’s preference. Features of E-commerce
  • 32. Amity School of Business• E-Commerce Advantages
  • 33. Amity School of Business• The 2000 burst of the e-bubble certainly tarnished once glamorous dot-com economy. Today’s journalists and many investors cringe at the thought of more e-inspired goods and services. Yet the pros in large companies like Wal-Mart and Ford see opportunity and hope in a better tomorrow for e- commerce.• In 2004 when Google.com went public, the initial offer of $85 per share surged to over $200 in less than three months.• Three in five customers make online purchases on a regular basis which is double the numbers of four year back. Comparison of prices, booking tickets, downloading books and music, home grocery deliveries and the likes are the most common online transactions performed by the customer in today’s date. Advantages
  • 34. Amity School of BusinessE-Commerce provide several advantages:• Lower cost to the E-Merchant. • E-Presence on the internet is cost effective. It reduces logistical problems and give small business equal visibility with giant business houses.• Economy • Unlike the mortar environment, there is no rental of physical store space, insurance, or infrastructure investment. Whats needed is an idea, a unique product, and a well designed Web storefront to reach your cyber- customers, and a partner to make the delivery. Advantages
  • 35. Amity School of BusinessE-Commerce provide several advantages:• Higher Margins • Lower investment and operational costs means higher margins. Also business can gain more control and flexibility and save time when manual transactions are converted into electronic transactions.• Better Service Control • Instead of customers calling a company on the phone, holding for 10 minutes, then connecting to a clerk to tap into customer’s account, they are benefited with direct access to their accounts over the Web.• Quick Comparison Shopping • It helps the customers to comparison shop. Automated online shopping assistants called hop-bots scour Net stores and find deals on anything. Advantages
  • 36. Amity School of BusinessE-Commerce provide several advantages:• Productivity Gains • Weaving the Web throughout an organization means improved productivity. Interconnectivity in such a manner would give rise to effective ERP and agile organization.• Teamwork • E-commerce means working together. E-mail is one such example. It has changed the mannerism of how people collaborate to exchange information and world on solutions. It has transformed the way organizations interact with suppliers, vendors, business partners, and customers. More interactive and collaborative-rich the Web site is, the higher the payoff. Advantages
  • 37. Amity School of BusinessE-Commerce provide several advantages:• Information Sharing, Convenience, and Control • E-Com improves information sharing between merchants and customers and promote quick, just-in-time deliveries. Customer and merchants save money because of 24x7 availability, no traffic jams, no crowds and no carrying of heavy shopping bags.• Growth in Knowledge Market • It has helped created knowledge market. Information, views, ideas and experiences are shared by different users.• Customization • Digital Catalogs are highly customizable. They are easy to recognize, revise, or edit as per the consumer’s taste, preference and individual needs. Advantages
  • 38. Amity School of BusinessFew More Advantages:• 24 x 7 x 365: • E-Com systems can operate all day every day. The physical storefront does not need to be open in order for customers and suppliers to do business with the organization.• Launching of New Products and Sales Promotion: • It is easier to launch a new product through the Internet. Complete information about the product can be provided over the Internet. Emails about the launch of the new product can be sent to the dealers and customers.• Lower cost of staff : • There is paperless exchange of information. This saves resources like time, money and energy in receiving orders compared to executing the same under the traditional mode of Commerce. Less Human-clerical involvement result in reduction of labor cost of the business. Advantages
  • 39. Amity School of BusinessFew More Advantages:• Speedy Payments: • Payments between business firms and customer can be made online without any loss of time. In E-Commerce, EFT has given a great boost to Trade & Commerce and has eliminated the complexity of cheque payment and issues with PoD.• Flexibility: • The convenience of posting the information with ease gives flexibility to the business houses to mend and update the catalogs as and when required.• Wider Reach: • E-Commerce has given rise to the concept of Market Space. The business houses potential customer base is the online population logged in to the web at that point of time. Advantages
  • 40. Amity School of BusinessFew More Advantages:• Direct contact with customers: • E-Commerce helps the business firms to establish direct contact with the customers through the internet. It allows the firm to focus on specific types of customers and their needs. The electronic data collected on electronic medium could lead to faster researches which could help the business houses for better planning.• Better Customer Service: • E-commerce allows quick response to the queries of customers about price, product features, quality and the like. It also increases customer satisfaction through quick order booking, delivery of goods and redress of customer complains, if any. The customer need not physically visit the business store for the same. Advantages
  • 41. Amity School of Business• Limitations and Constraints
  • 42. Amity School of BusinessConstrains in E-Commerce:• The Cost Factor • The sudden & high upfront cost is required for setting up the infrastructure. For developing a sophisticated interactive Web site, network servers, terminals, software, staffing and training is require. Transaction costs is another aspect. Presence of mediators and certification authorities add to transaction cost.• Security • With spamming, spying, file corruption and malicious misuse, no company can afford to do online business without proper protection. The goal of a company is to assure customers secure lines and secure sites that will protect their privacy and the transactions. Constraints
  • 43. Amity School of BusinessConstrains in E-Commerce:• System and Data Integrity • Delegation to the users to see what is meant for them is much crucial but checks and rules are to be applied so that data remains in the database as per its fixed structures. Unnecessary delays giving rise to Denial of Service should be avoided. File backups and storage checkup are the regular requirement of E-com system.• System Scalability • Web site performance is bound to experience degradation, slowdown and eventually loss of customers. To do away with this problem, a Web site must be scalable or upgradable on a regular basis. Constraints
  • 44. Amity School of BusinessConstrains in E-Commerce:• E-Commerce is not free • Brand loyalty is related to this issue. Brands are expected to lower search costs, build trust, and communicate quality. Users remain suspicious of search engines for locating product information; instead, they rely on recognized dot-com brands for purchases.• Fulfillment and Customer Relations Problems • Shipping delays, merchandise mix-ups, and Web site crashing under pressure continue to be problems in e- tailing. Customers suspect the ability of E-commerce to deliver during heavy shopping seasons. Even happy customers say the experience could be improved and hence CRM is taking on high priority. Constraints
  • 45. Amity School of BusinessConstrains in E-Commerce:• Products People Resist Buying Online • Companies have to focus on specific business models that process standardized items with strong brand identity and require no inspection or comparative analysis. In today’s date , the trend is to look more for value than price and hence the online product catalogs are to be chosen wisely.• Cultural, Language and Trust Issues • In addition to these generic problems and drawbacks, there are global issues as well. When E-commerce and the Internet went global, there was an obvious pressure to adapt e-marketing, e-products, and interfaces to cultural expectations and constraints. Constraints
  • 46. Amity School of BusinessConstrains in E-Commerce:• Corporate Vulnerability • The availability of product details, catalogs, and other information about a business through its Web site makes it vulnerable to access by the competition. The idea of extracting business intelligence from the competition’s web pages is called WEB FARMING.• Lack of Blueprint for Handling E-Commerce • There is a constant shortage of e-literate people at the workplace. Also companies have tough time attracting customers to operate on their online facilities. Constraints
  • 47. Amity School of BusinessConstrains in E-Commerce (Few More):• Social inequality is one of the major hazard for efficient practice of e-commerce. • Home penetration of PC. • Sophisticated skill set required.• Persistent culture attraction of physical markets.• Omission of social shopping experience. (socializing degrades).• Persistent Global inequality – The nature of products, markets, customer and service provider are of different profiles through out the Globe. Constraints
  • 48. Amity School of Business• E-Com Issues
  • 49. Amity School of Business• E-Commerce systems are based on Internet Technologies, which provide open and easy communications on a global basis. However, since Internet is unregulated, unmanaged and uncontrolled, it introduces a wide range of risks and threats to the systems operating on it. The following are the security issues related to e-com: • Integrity: • Ability to ensure that information being displayed on a web site or transmitted/received over the internet has not been altered in any way by an unauthorized party. • Customer perspective – has information I transmitted or received been altered? • Merchant’s perspective – has data on the site been altered without authorization? Is the data being received from customer valid? Issues
  • 50. Amity School of Business• Non-repudiation: • The ability to ensure that e-com participant do not deny their online actions • Customer – can a party in an action with me later deny taking that action? • Merchant – can a customer deny ordered products?• Authenticity: • The ability to identify the identity of a person or entity with whom one is dealing. • Customer – who am I dealing with? How do I be assured that the person or entity is who they claim to be? • Merchant – what is the real identity of the customer? Issues
  • 51. Amity School of Business• Confidentiality: • The ability to ensure that message and data are available to only those who are authorized to view it. • Customer – can someone other that the intended recipient read my message? • Merchant – are message or confidential data accessible to anyone other than those authorized to view it?• Privacy: • The ability to control the use of information about oneself. • Customer – can I see that only information relevant to context is provided? • Merchant – is the personal information of customers used in some unwilling & unauthorized manner? Issues
  • 52. Amity School of Business• Availability: • The ability to ensure that an e-com site continues to function as intended. • Customer – can I get access to the site as per my convenience? • Merchant – is the site operational or it is creating the case of DoS? Issues
  • 53. Amity School of Business• E-Commerce Strategies
  • 54. Amity School of Business• Value proposition • Why should the customer buy from you? • What is unique about you that other don’t have?• Market opportunity • Refers to the company’s intended market space and the overall potential financial opportunities available to the firm in that market space.• Competitive environment • Refers to the other companies operating in the same market space selling similar products.• Competitive advantage • Achieved by firm when it can offer a superior product/service at a lower price than its competitors. Strategies
  • 55. Amity School of Business• Market strategy • It’s a plan, the organization put together that details exactly how it intend to enter a new market and attract new customers.• Organization development plan • Describes how the company will organize the work that needs to be accomplished.• Management Team • Right people, at right place with right decision making capabilities. Should be responsible for making the business model work.• Revenue Model • How the firm will generate the revenue, produce profits and superior return on invested capital. Strategies
  • 56. Amity School of Business• E-Commerce Business Models
  • 57. Amity School of BusinessFloating Web sites is not free. It involves money to develop andmaintain. The potential revenue constitute a revenue model. It isa way of doing business to sustain a business – generaterevenue.There are different business models in e-commerce. Each modelhas its own unique features and offerings.•Storefront Model • This is a true e-commerce site that offers products or goods for a price. The business provides a Web site with product information, a shopping cart, and an online ordering mechanism. The product price is usually fixed. The merchant makes money the same way as traditional brick and mortar shops through the profit margin in the product price. • The merchant reaches customers directly and sells without retailers or intermediaries. Business Models
  • 58. Amity School of Business• Click and Mortar Model • This is a true e-commerce site that offers products or goods for a price. The business provides a Web site with product information, a shopping cart, and an online ordering mechanism. The product price is usually fixed. The merchant makes money the same way as traditional brick and mortar shops through the profit margin in the product price.• Built to Order Merchant Model • A manufacturer such as a computer vendor can use this model by offering goods or services and the ability to order customized versions. The customized product is then assembled individually and shipped to the customer. • This provides added value to consumers and allows the manufacturer to create only those products that will be sold. Business Models
  • 59. Amity School of Business• Subscription base Access Model • Many service operators provide subscription based access to their service. A visitor pays a fixed fee per unit time in return for unlimited access to the service.• Broker Model • Brokers are market makers. As intermediaries, they bring buyers and sellers together and facilitate transactions between them. A broker makes money by charging a fee for every facilitated transaction or a percentage of the price of the transactions.• Advertiser Model • A Site offers free access to something and shows advertisements of the accessed page. The advertiser pays the site operator for showing the advertisement (eyeballs). Business Models
  • 60. Amity School of Business• Portal Site Model • A portal offers one-stop access to specific content and services like new, stock information, message boards, or chat. Allowing the visitor to personalize the interface and content makes it easier for visitor to identify with the portal.• Virtual Mall Model • A virtual mall is a hosted site for many merchants, service providers, brokers, and other business. The virtual mal operator charges a fee for setting up and maintaining the merchant’s booth and for including the merchant in the site wide catalog. • The operator charges a fee for every transaction the merchant performs. Business Models
  • 61. Amity School of Business• Virtual Community Portal • Also known as vanity site, a virtual community is a Web site that attracts a group of users with a common interest who work together on the site.• Pre-paid Access Model • This Model services like telephony offer payment by the unit-time and are handled via a subscription, where users pay a certain amount for access to the service for a certain time period. It is similar to paying for a prepaid telephone card, which can be renewed for the same charge. The available credit on the smart card is reduced during usage of the service. Prepaid schemes give users greater control over how much to spend on the service. Business Models
  • 62. Amity School of Business• Info-mediary Model • The info-mediary collects, evaluates and sells information on consumers and their buying behavior to other parties who want to reach those consumers. Business Models
  • 63. Amity School of Business• Terminology
  • 64. Amity School of Business• Portal • Offers an integrated package of services and content such as search, news, chat, e-mail, calendars • Eg:- yahoo.com • Generate revenues form ads and subscription.• E-Tailer • Online version of a retail store, where customer can shop at any hour, day or night without leaving office or home. • Eg:- Amazon.com • Generate revenues from sales of goods. Terminology
  • 65. Amity School of Business• Content Provider • Information and entertainment providers such as newspapers, sports sites and other online sources that offers customers up to date news, special interest, tips, sales information and the like. • Eg;- cnn.com • Advertising, subscription, affiliate are the major methods of getting the revenue.• Transaction Broker • Processors of online sales transaction such as stock brokers, travel agents, etc, that help the customers to get things done quickly and efficiently. • E-Trade.com • Revenue through Transaction Fees Terminology
  • 66. Amity School of Business• Market Creator • Web based business that create market to bring buyers and sellers together as in case of auction • E-Bay.com, priceline.com • Revenue generated through transaction fees.• Community provider • Sites where individual with particular interest, hobbies and experiences can come together • About.com, Facebook.com • Revenue yield through advertising, subscription, affiliate revenue model. Terminology
  • 67. Amity School of Business• Value Chain in E-Commerce
  • 68. Amity School of BusinessUnderstanding Value Chain•It is a way of organizing the activities of a business so that eachactivity adds value or productivity to the total operation of thebusiness.•It is a strategic tool for identifying how the critical componentsof a business tie together to deliver value for the business acrossthe value-chain process.•Organizations are a chain of value creating activities that assurecompetitive advantages by the way they deliver value to thecustomer. A communication process that extends from a firmbackward to suppliers and forward to customers ties all sorts ofactivities together – therefore, the value chain. Value Chain
  • 69. Amity School of BusinessValue Chain Activities:•Primary activities – involved in the physical creation of a productor service and its sale, transfer to buyer and after sale assistance.These may include: • Inbound logistics. • Operations. • Outbound logistics. • Marketing and sales. • Service.•Support activities – support primary activities and each other. • Corporate infrastructure. • Human resources. • Technology development. Value Chain
  • 70. Amity School of BusinessValue Chain Activities - Analysis:There are several questions to consider when analyzing valuechain activities•What is the nature of activity? Does it add value and ensurequality of other activities?•How does the activity add value to the customer?•Could the activity be reconfigured in some other manner?•What inputs are used? Is the expected output obtained?•Is the activity vital? Could it be outsourced, deleted completelyor combined with other activity?•How does information flow in and out of the activity?•Is the activity a source of competitive advantage?•Does the activity fit the overall goals of the organization? Value Chain
  • 71. Amity School of BusinessWhere does E-Commerce fit in?E-Commerce can play a key role in;•Reducing costs,•Improving product quality and integrity,•Promoting a loyal customer base, and•Creating a quick & efficient way of selling products & services.The trend in E-Commerce is to integrate the entire transactionlife cycle, from the time the consumer purchases the product onthe Web site to the time the product is actually received. This lifecycle centers around three major e-commerce applications:•Business to Consumer – done on the internet,•Business to Business – done on the internet and extranets,•Business within business – done on intranet. Value Chain
  • 72. Amity School of Business• E-Commerce: The Managerial Perspective
  • 73. Amity School of BusinessWhen it comes to implementation of E-Commerce, what makesmost towards the success of E-Commerce is Managerialacceptance and understanding of it. The management shouldbe able to:•Innate ability to handle the speed of change.•Focus on building a productive organizational culture.•Manage change and results.•Build intellectual capital.•Manage organizational learning.•Push for growth and innovation.•Understand that real asset is information and not money.•Motivate employees in improving their skill sets and add value.•Gather & analyze data collected through 360 consumer views.•Assign appropriate business model. Managerial Perspective