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Lecture 2 e-Commerce Models and Strategies Martin Labbé e-Business Adviser eTrade Development Unit
Summary <ul><ul><li>e-Commerce Models </li></ul></ul><ul><ul><li>Strategies for e-Commerce </li></ul></ul><ul><ul><li>Alig...
e-Business in 2007: global trends Mobile Business Networked Economies Global IT-enabled trade Holistic approach to ICTs
Despite the many stories about the potential benefits of e-commerce, especially for small scale producers, there is extrao...
1. e-Commerce Models
Brokerage Model <ul><ul><li>Brokers bring buyers and sellers together to make transactions happen, in B2B, B2C and C2C mar...
Vertical e-marketplaces Created in 2000, Covisint enables the secure sharing of vital business information, applications a...
Vertical e-marketplaces Brings together 50 of the world's largest retailers, and over 80,000 of their suppliers. A single ...
Vertical e-marketplaces More than 4,000 leading manufacturers and retailers in the alcohol and beverage, automotive, drug,...
Horizontal e-marketplaces Alibaba.com is the world's largest online business-to-business (B2B) marketplace for global and ...
Horizontal e-marketplaces Online platform for the sale of goods and services by individuals and SMEs.  Items are available...
e-Markets: Global Landscape North America  367 Europe    455 Asia&Pacific  219 Latin America  50 Africa  25
Advertising Model Acts as an extension of the traditional media broadcast model.  <ul><li>Paid-for links </li></ul><ul><li...
Infomediary Model <ul><li>Assist buyers and/or sellers understand a market, its products and prices by gathering related d...
Merchant Model <ul><li>Wholesalers and retailers of goods and services. Sales rely on price lists, and sometimes on auctio...
Online sales, but offline delivery…
2. Strategies for e-Commerce
Goal: selling online?
First step: web marketing <ul><ul><li>Web marketing is about:  </li></ul></ul><ul><ul><li>Linking  business leads and cust...
Companies invest in web advertisement! <ul><li>By 2010, online advertising and marketing will make up 8% of global adverti...
Online Advertising <ul><li>Offer based e-mails </li></ul><ul><li>Newsletters </li></ul><ul><li>Opinion Polls </li></ul>
Online Advertising <ul><li>Catalog requests </li></ul><ul><li>> Dynamic, interactive and inexpensive! </li></ul><ul><li>> ...
<ul><li>Top 3  search engines : Google 49%, Yahoo! 22% and MSN 11%  </li></ul><ul><li>(03/06.Nielsen Net Ratings) </li></u...
Supplier directories <ul><li>A database of suppliers which is searchable by products or services that the suppliers offer....
National industry websites <ul><li>A database of suppliers from one country, one industry.  </li></ul><ul><li>Pooling the ...
National industy websites www.brapex.net   (330,000 t/year)  Brazilian Association of Papaya Exporters (80%)
International industry websites www.intracen.org/organics Includes: O&D, directory, publications, standard references, mar...
Company websites <ul><li>Online brochure… </li></ul><ul><li>…  but needs to be updated on a regular basis. </li></ul>
 
3. Aligning IT strategy to your business strategy
<ul><li>Has your organization/company benefited from the use of ICT? </li></ul><ul><li>Does your application of ICT genera...
A Vision for the e-Business Enterprise Intranet Business to Business Extranets Consumer to Business via the Internet Elimi...
IT Revolution… at what cost?
4. Mobile Commerce: Background and Best Practices
How does the mobile future look like?
How does the mobile future look like?
Mobile Commerce in developing countries WIZZIT is a cellphone-based banking facility whose target market is the estimated ...
Mobile Commerce in developing countries Mobile for Good (M4G)  in Kenya Uses mobile phone technology to deliver vital heal...
Time for Q&A!
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Itc Irost E C Models Strategies Jun07v2

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Transcript of "Itc Irost E C Models Strategies Jun07v2"

  1. 1. Lecture 2 e-Commerce Models and Strategies Martin Labbé e-Business Adviser eTrade Development Unit
  2. 2. Summary <ul><ul><li>e-Commerce Models </li></ul></ul><ul><ul><li>Strategies for e-Commerce </li></ul></ul><ul><ul><li>Aligning IT strategy to your business strategy </li></ul></ul><ul><ul><li>Mobile Commerce: background and best practices </li></ul></ul>
  3. 3. e-Business in 2007: global trends Mobile Business Networked Economies Global IT-enabled trade Holistic approach to ICTs
  4. 4. Despite the many stories about the potential benefits of e-commerce, especially for small scale producers, there is extraordinarily little empirical evidence on how the global spread of business-to-business electronic commerce is actually affecting producer firms. E-Marketplace Services - Do they support a global marketplace?, Robin Mansell, media@lse, LSE (2002)
  5. 5. 1. e-Commerce Models
  6. 6. Brokerage Model <ul><ul><li>Brokers bring buyers and sellers together to make transactions happen, in B2B, B2C and C2C markets. </li></ul></ul><ul><ul><li>They charge a fee or commission for the service (account or transaction-based) </li></ul></ul>
  7. 7. Vertical e-marketplaces Created in 2000, Covisint enables the secure sharing of vital business information, applications and business processes… … for 266,000 users from more than 30,000 organizations in over 96 countries in the global automotive industry.
  8. 8. Vertical e-marketplaces Brings together 50 of the world's largest retailers, and over 80,000 of their suppliers. A single technology platform for collaboration that connects retailers and manufacturers to their trading partners to more effectively and efficiently share information and manage collaborative work processes.
  9. 9. Vertical e-marketplaces More than 4,000 leading manufacturers and retailers in the alcohol and beverage, automotive, drug, entertainment, grocery, hardlines, healthcare, and office products industries are part of the 1SYNC community. Synchronize supply chain data.
  10. 10. Horizontal e-marketplaces Alibaba.com is the world's largest online business-to-business (B2B) marketplace for global and domestic China trade .
  11. 11. Horizontal e-marketplaces Online platform for the sale of goods and services by individuals and SMEs. Items are available through auction-style and fixed-price trading.
  12. 12. e-Markets: Global Landscape North America 367 Europe 455 Asia&Pacific 219 Latin America 50 Africa 25
  13. 13. Advertising Model Acts as an extension of the traditional media broadcast model. <ul><li>Paid-for links </li></ul><ul><li>Banners </li></ul><ul><li>Info-ad </li></ul>
  14. 14. Infomediary Model <ul><li>Assist buyers and/or sellers understand a market, its products and prices by gathering related data. </li></ul>
  15. 15. Merchant Model <ul><li>Wholesalers and retailers of goods and services. Sales rely on price lists, and sometimes on auctions. </li></ul>
  16. 16. Online sales, but offline delivery…
  17. 17. 2. Strategies for e-Commerce
  18. 18. Goal: selling online?
  19. 19. First step: web marketing <ul><ul><li>Web marketing is about: </li></ul></ul><ul><ul><li>Linking business leads and customers to the company through its presence on the internet: </li></ul></ul><ul><ul><li>- website, </li></ul></ul><ul><ul><li>- directories, </li></ul></ul><ul><ul><li>- industry portals. </li></ul></ul><ul><ul><li>Advertising online: </li></ul></ul><ul><ul><li>- e-mail marketing, </li></ul></ul><ul><ul><li>- newsletters, </li></ul></ul><ul><ul><li>- online polls. </li></ul></ul><ul><ul><li>Gaining visibility. </li></ul></ul>
  20. 20. Companies invest in web advertisement! <ul><li>By 2010, online advertising and marketing will make up 8% of global advertisement spending… </li></ul><ul><li>… in 2006, UK companies spent more on advertising online than in the press! </li></ul>
  21. 21. Online Advertising <ul><li>Offer based e-mails </li></ul><ul><li>Newsletters </li></ul><ul><li>Opinion Polls </li></ul>
  22. 22. Online Advertising <ul><li>Catalog requests </li></ul><ul><li>> Dynamic, interactive and inexpensive! </li></ul><ul><li>> Customer service tool </li></ul>
  23. 23. <ul><li>Top 3 search engines : Google 49%, Yahoo! 22% and MSN 11% </li></ul><ul><li>(03/06.Nielsen Net Ratings) </li></ul><ul><li>Search engine marketing is projected to grow by 33% this year and to reach $11.6 bln by 2010. </li></ul><ul><li>(Forrester Research) </li></ul><ul><li>Leave it to the technicians! </li></ul><ul><ul><li>Indexation </li></ul></ul><ul><ul><li>Pay-per-click & sponsored links </li></ul></ul><ul><ul><li>Cross-referencing </li></ul></ul><ul><ul><li>Search Engine Optimization </li></ul></ul>Google & Co. can make your company visible on the internet!
  24. 24. Supplier directories <ul><li>A database of suppliers which is searchable by products or services that the suppliers offer. </li></ul><ul><li>Focus on industry and/or country. </li></ul><ul><li>Basic listings free of charge. </li></ul>
  25. 25. National industry websites <ul><li>A database of suppliers from one country, one industry. </li></ul><ul><li>Pooling the costs. </li></ul>
  26. 26. National industy websites www.brapex.net (330,000 t/year) Brazilian Association of Papaya Exporters (80%)
  27. 27. International industry websites www.intracen.org/organics Includes: O&D, directory, publications, standard references, market studies…
  28. 28. Company websites <ul><li>Online brochure… </li></ul><ul><li>… but needs to be updated on a regular basis. </li></ul>
  29. 30. 3. Aligning IT strategy to your business strategy
  30. 31. <ul><li>Has your organization/company benefited from the use of ICT? </li></ul><ul><li>Does your application of ICT generate direct revenues? </li></ul><ul><li>Do you use e-marketplaces to do business? </li></ul><ul><li>Are you comfortable with the pace of ICT development in your area of activity? </li></ul><ul><li>Do you think that to survive your business needs to better understand ICT? </li></ul>In Europe, 94% of all enterprises use a computer, 81% have an internet access and 67% a website.
  31. 32. A Vision for the e-Business Enterprise Intranet Business to Business Extranets Consumer to Business via the Internet Eliminate Paper = delay Non-core=Outsource Integrated Customer communities Source: Unleashing the Killer App, Harvard Business School Press
  32. 33. IT Revolution… at what cost?
  33. 34. 4. Mobile Commerce: Background and Best Practices
  34. 35. How does the mobile future look like?
  35. 36. How does the mobile future look like?
  36. 37. Mobile Commerce in developing countries WIZZIT is a cellphone-based banking facility whose target market is the estimated 16 million unbanked or underbanked South Africans - about 60 percent of the country's population.
  37. 38. Mobile Commerce in developing countries Mobile for Good (M4G) in Kenya Uses mobile phone technology to deliver vital health, employment and community content via SMS on mobile phones. On average the service advertises over 100 jobs per week accessible to 30,000 subscribers.
  38. 39. Time for Q&A!
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