E Commerce+ Ppt


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  • E Commerce+ Ppt

    1. 1. E-Commerce Jason C.H. Chen, Ph.D. School of Business Administration Gonzaga University, Washington, U.S.A. Senior Consultant, Taskco.com [email_address] Nov. 20, 2000
    2. 2. Topics <ul><li>E-Commerce: From B2C to B2B and Beyond </li></ul><ul><li>e-Bid Process </li></ul><ul><li>Features of a B2B application. </li></ul><ul><li>Business plan for an e-Marketplace (next year) </li></ul><ul><li>e-CRM and 1-1 Marketing (next year) </li></ul>
    3. 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, Taskco.com [email_address] Nov. 22, 2000
    4. 4. Outline of Topics <ul><li>EC, B2C and B2B and their models. </li></ul><ul><li>How big is B2B? </li></ul><ul><li>Where is the Evidence? </li></ul><ul><li>What are the revenue models in B2B? </li></ul><ul><li>What is driving adoption of B2B? </li></ul><ul><li>Why now? </li></ul><ul><li>TASKCo.com </li></ul>
    5. 5. eBusiness Key Concepts <ul><li>eBusiness </li></ul><ul><ul><li>The strategy of how to automate old business models with the aid of technology to maximize customer value </li></ul></ul><ul><li>eCommerce </li></ul><ul><ul><li>The process of buying and selling over digital media </li></ul></ul><ul><li>eCRM (eCustomer Relationship Management) </li></ul><ul><ul><li>The process of building, sustaining, and improving eBusiness relationships with existing and potential customers through digital media </li></ul></ul>
    6. 6. What is E-Commerce ? <ul><li>Electronic commerce (EC) is an emerging concept that describes the buying and selling of products, services and information via computer networks, including the Internet. </li></ul>
    7. 7. Figure: E-commerce on the rise. Source: 1999 SG Cowen/Datamation Networked Computing Survey Figure: 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. 8. Table: E-commerce’s most promising potential benefits 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%
    9. 9. eBusiness Processes WHY Customer Relationship Redesign Business Processes (Outside-In) Applying Technology WHAT HOW
    10. 10. eBusiness Processes WHY Customer Relationship Redesign Business Processes (Outside-In) Applying Technology WHAT HOW
    11. 11. Traditional versus E-Business Models? C B C B C: Individual Consumer B: Business
    12. 12. What is B2C? <ul><li>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. </li></ul><ul><li>Examples? </li></ul><ul><ul><li>Amazon.com </li></ul></ul><ul><ul><li>Egghead.com </li></ul></ul>
    13. 13. Enterprise User Profiles Workflow Business rules Payment Analytics Internet Firewall Figure: A B2C e-business Model Intranet
    14. 14. B2C Applications <ul><li>Electronic storefront </li></ul><ul><li>Electronic malls </li></ul><ul><li>Advertising online </li></ul><ul><li>Service online </li></ul><ul><ul><li>selling books, toys, computers </li></ul></ul><ul><ul><li>e-banking (cyberbanking) </li></ul></ul><ul><ul><li>online stock trading </li></ul></ul><ul><ul><li>online job market, travel, real estate </li></ul></ul>
    15. 15. Figure : B2C and B2B Internet Commerce in the U.S. (Source: Forrester Research) Billion
    16. 16. What is B2B? <ul><li>“ B2B” is business-to- business commerce conducted over the Internet (called B2B e-commerce space, or e-marketplaces ) </li></ul>N
    17. 17. B2B e-Markepplaces: A CEO’s Perspective <ul><li>“ 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.” </li></ul><ul><li>Louis V. Gerstner Jr. </li></ul><ul><li>Chairman of the Board and CEO </li></ul><ul><li>IBM Corporation </li></ul>
    18. 18. E-Market is … Web-based marketplace <ul><li>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 </li></ul>MarketSite Buyers Sellers
    19. 19. Figure : A B2B Model (Source: Goldman Sachs Investment Research Report) Banks, Financial Institutions eCredit.com Suppliers <ul><li>Production materials </li></ul><ul><li>Operating goods, services </li></ul>Invoices, Payment , Clearing Enterprise Customers Logistics Celarix, NTE Transportation, Warehousing
    20. 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:N M:1 M:N Knowledge Management/Business Intelligence Focus on e-Business Applications
    21. 21. B2B Applications <ul><li>Advertising </li></ul><ul><li>Auctioning </li></ul><ul><li>Procurement </li></ul><ul><li>Channel management </li></ul><ul><li>E-commerce </li></ul>
    22. 22. How Big is B2B? Figure: The Goldman Sachs B2B Sizing in USA
    23. 23. Where is the Evidence <ul><li>Three highlights from the Goldman Sachs B2B survey 1.0: </li></ul><ul><ul><li>E-Commerce spending on proprietary Web site, e-market, and procurement (75% say, in 2000) </li></ul></ul><ul><ul><li>Business are increasingly likely to develop B2B e-markets and to favor online auctions (74% say, in 2000) </li></ul></ul><ul><ul><li>Outsourcing e-commerce spending is commonplace among businesses (25% say, up to 75% of e-C spending) </li></ul></ul>
    24. 24. B2B Revenue Model <ul><li>B2B companies exhibit varying business models, depending on the key products and services they offer. The models include: </li></ul><ul><ul><li>transaction fees, </li></ul></ul><ul><ul><li>auction-driving commissions, </li></ul></ul><ul><ul><li>advertising, </li></ul></ul><ul><ul><li>content subscriptions, </li></ul></ul><ul><ul><li>software licensing </li></ul></ul>
    25. 25. B2C vs. B2B Source: Goldman Sachs Investmenet Research
    26. 26. The Magnificent Seven B2B Drivers <ul><li>Increasing competition and globalization </li></ul><ul><li>Growing interactivity </li></ul><ul><li>Financial opportunity </li></ul><ul><li>Efficiencies and cost savings </li></ul><ul><li>Enhanced market and customer reach </li></ul><ul><li>Real-time needs </li></ul><ul><li>Regulatory and taxation issues </li></ul>N
    27. 27. Small Business Likely to Fuel B2B <ul><li>Small businesses will fuel the B2B market </li></ul><ul><ul><li>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. </li></ul></ul><ul><ul><li>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. </li></ul></ul>
    28. 28. Benefits of B2B <ul><li>B2B solutions create competitive dynamics through: </li></ul><ul><ul><li>cost savings </li></ul></ul><ul><ul><ul><li>the composition of cost (product versus process costs) </li></ul></ul></ul><ul><ul><ul><li>the number of intermediaries in the supply chain. </li></ul></ul></ul><ul><ul><li>new financial (revenue) opportunities </li></ul></ul><ul><ul><ul><li>the rate of industry-wide B2B adoption </li></ul></ul></ul><ul><ul><ul><li>business model </li></ul></ul></ul>N
    29. 29. Why Now? <ul><li>B2B catalysts are now arising to stimulate adoption (mentioned earlier). </li></ul><ul><li>Interactive networks have recently become ubiquitous and inexpensive, accelerating the use of B2B applications. </li></ul><ul><li>A viral effect will spur copycat behavior throughout the market as more companies continue to implement B2B applications. </li></ul>
    30. 30. Which Industries are Likely to Embrace B2B Solutions <ul><li>Industries that are B2B inclined exhibit certain key characteristics: </li></ul><ul><ul><li>the supply chain is highly diffuse, </li></ul></ul><ul><ul><li>techno-innovators dominate the culture, </li></ul></ul><ul><ul><li>process represents more than 20% of total costs, </li></ul></ul><ul><ul><li>products exhibit complex configurations, </li></ul></ul><ul><ul><li>expense pressure is intense. </li></ul></ul>
    31. 31. <ul><li>Research show that leading industries migrating online and adopting B2B solutions include the following: </li></ul><ul><ul><li>Aerospace/Defense: 35% </li></ul></ul><ul><ul><li>Electronics: 25% </li></ul></ul><ul><ul><li>Chemicals: 20% </li></ul></ul><ul><ul><li>Motor vehicles and parts: 18% </li></ul></ul><ul><ul><li>Medical equipment and transport: 17% </li></ul></ul>
    32. 32. What Makes a B2B e-market Company Succeed? <ul><li>Five Critical Success Factors for e-markets: </li></ul><ul><ul><li>Business model, </li></ul></ul><ul><ul><li>market size, </li></ul></ul><ul><ul><li>industry expertise, </li></ul></ul><ul><ul><li>branding and distribution, </li></ul></ul><ul><ul><li>management execution hustle (not just the formulation of strategy) </li></ul></ul>N
    33. 33. Solutions for e-Enterprise Organizations <ul><li>Streamlines buying and selling between trading partners </li></ul><ul><li>Maximizes trade efficiency across the entire supply chain </li></ul><ul><li>Strategic e-commerce capabilities in Internet time </li></ul><ul><li>Delivers compelling ROI </li></ul>Buyers Sellers MarketSite
    34. 34. Solutions for Internet Market Makers <ul><li>Turn your supply chain into a revenue generation opportunity </li></ul><ul><li>Leverage your industry domain expertise into strategic e-commerce solutions </li></ul><ul><li>Brings e-commerce to businesses of any size, across all industries </li></ul>Your Portal
    35. 35. Global Solution for Businesses: The Global Trading Web Global Trading Web Connect once to trade with anyone,anytime, anywhere in the world.
    36. 36. European e-markets <ul><li>B2C e-commerce in Europe is likely to remain approximately two to three years behind the U.S. . </li></ul><ul><li>B2B in Europe currently lags the U.S. by two years. </li></ul><ul><li>How about in Asia? </li></ul>
    37. 37. TASKCo Mission Expand Markets Improve Efficiencies Retain Customers Fundamental Business Drivers Have Not Changed Leveraging Internet to Help Customers to:
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