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Omis 22nd Febraury

Omis 22nd Febraury

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  • Integration all channels Example: You visit a retailer's web site and buy a shirt. When the shirt arrives it is in the wrong size. You decide to return the shirt at the store's retail outlet instead of mailing it back to the vendor. However, when you go to the store you are told that they cannot take returns from their web site. Since the web site is not integrated with the rest of their business activities this company is not yet an eBusiness.

Final Group Presentation Final Group Presentation Presentation Transcript

  • Group 3
  • E-Commerce and E-BusinessE-Commerce E-Business Buying and selling of  Spin-off of E-commerce goods and services on-line  Involves more of the business (Transaction) processes (Exchange of- Online shopping Information)- Online purchasing -Buying -Selling -TradingExample: Buy a Shirt online -Working with business and try to return it to the partners retailer
  • Phases to Becoming an E-Business Hires outside Starting to company integrate (mostly channels but not informational quite there yet ) Does not understand Starts some E- Integrating all the Internet Commerce channels Everyone Activities uses web to conduct business
  • Four E-Business Models Business to Business (B2B) Business to Consumer (B2C) Consumer to Business (C2B) Consumer to Consumer (C2C)- Each model must be approached differently and the business must make sure that they have the appropriate tools to successful implement different strategies.
  • Business to Business (B2B) Buying, selling, and other business transactions among businesses Commonly referred to as E-marketplace Business have to make sure that they work with other businesses that supports their strategy (product quality, price, time)- Car Manufactures (Glasses and Tires)- Dell Computer (Computer Components)
  • Business to Consumer (B2C) Selling of products/services to consumers E-shopping On-line stores represents the same brand image as physical stores if they exist. Pure Play (Internet only), Click and Mortar (Internet and Physical Store), and Brick and Mortar (Physical Store Only)-
  • Consumer to Business (C2B) Consumers selling to a business Individual are creating value for the firm Growing Trend-Surveys-Blogs-Customer Reviews
  • Consumer to Consumer (C2C) Consumers conducting business between each other Companies can help to facilitate transaction-Online Auctions(Craig’s List, EBay, and Angie’s List)
  • Marketing
  • Impacts on Marketing Individuals can stay at home and buy Less time consuming Less costly More research can be done Anytime access to information  Click-through  Viral content  Mobile computing
  • Click-Through The process of clicking through an online advertisement to the advertiser’s destination Can track:  Where the individual clicked from  Which pages were visited  Which links were interesting enough to click through
  • Viral Content Viral videos get viewed more often than regular banner ads Viewers pass on interesting or humerous content to others Relatively cheap advertising  word of mouth Use of social networks  Increases the chances of making a video go viral
  • Mobile Computing Can advertise anywhere to a target market  50% more effective than TV  130% more effective than radio Hasn’t boomed yet, but will very soon Developed by phone companies and Google The next form on personalized advertising
  • Benefits to Marketing Bi-directional flow of information Decreased time lag for customer service  Organization is reachable at any time Decreased cost of customer service Personalized advertisements  More information on customers
  • Ford’s E-Business Virtual store and information center coupled with physical car dealerships Average of $24,000 on an initial purchase Average of $68,000 spent in total throughout the life of the car More time is spent on the life of the car than the initial pruchase E-business maintains customer intamacy for life
  • Finance E-business decreases transaction costs E-business can provide easy acces to international customers  Organizations may not know how to deal with international currencies which may increase transaction costs a little Increased customer service and sales revenues
  • Finance 24-hour online access requires 24-hour order processing Increases sales Online payment methods  Pay pal, Credit cards, Electronic cash Funding for Data acquisition and security
  • Supply Chain Management Mass production to demand driven Increased supply chain performance Shorten the supply chain Cut costs Can eliminate the bullwhip effect
  • E-Commerce and E-BusinessAdvantages Disadvantages Shortens the supply chain  Increased transportation Reduced facility costs costs Decreased processing time  Start-up costs Lower inventory levels More personalized buying experience More potential customers Increased financial data and sales Eliminate the bullwhip effect
  • Case Study: BHP and BHP Steel Broken Hill Proprietary manufacturing firm Industries: minerals, copper, petroleum, and engineering 60,000 employees in 60 countries  BHP Steel $7.6 billion revenues  Complex structure BHP considered leader in E-commerce
  • E-commerce Implementationand Benefits Stage 1: Early Implementation-Electronic Data Interchange  Send/receive business documents/orders Stage 2: Electronic Trading Gateway  Centralize all trading Stage 3: Internet Site  Serve Small customers
  • Obstacles Stage 1: Management Commitment and Lack of technical knowledge. 1st EDI in Australia Stage 2: Technology issues (no standards) and lack of customers participation Stage 3: immaturity standards internet and readiness of third parties
  • Factors Affecting Implementation Commitment Trading partner participation Supplier vs. Customer Technology/Media Hype Business Value Training and Education Rapid technology change + Complexity/Compatibility (technology and processes)
  • Management of Information Systems and E-business IT Audit Information Flow Analysis Manufacturing Software Selection IT Project Management Data Security Audit
  • Global Implications Cater to international customers. Follow international customs procedures, currencies, taxes and regulations Customize to local taste Knowing the global rules for shipment Make payment easy for international customers
  • Future of E-Commerce and E-Business Information Marketing M-Commerce New Jobs and Business Opportunities
  • Ethical Issues Similar to ethical issues surrounding other facets of business life Relative anonymity, speed of information create special issues
  • Ethical Issues Intellectual Property Concerns Privacy Concerns Computer Crimes Consumer Protection
  • Ethical Issues Adware Key Logging Bait and Switch Email Spoofing URL Hijacking
  • Recommendation Implement E-Commerce and E-Business Advantages outweigh disadvantages
  • Questions?