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E-Business in Rural Communities

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  • 1. Electronic Retailing E-Business in Rural Communities
  • 2.
    • What is the Internet?
      • The Internet is the sum total of devices interconnected using the Internet Protocol
    • We use the Internet with applications such as:
        • Usenet - A distributed discussion system (newsgroups)
        • E-mail - Electronic communication, fast and broad
        • WWW - World Wide Web
        • FTP - Transfer files between computers
    Source: Hofacker, 2001
  • 3.
    • What is the Internet?
      • Aren’t they all the Web?
        • Technically, no. The Web represents that portion of the Internet that is used through the use of hyperlinks. However, an effective Internet business strategy will use more than just the Web.
    Source: Hofacker, 2001
  • 4.
    • What is the Internet?
      • What is E-Commerce?
        • The use of diverse applications of the Internet such as Email, Usenet, Chat, FTP, World Wide Web, to conduct business operations.
    Source: Hofacker, 2001
  • 5.
    • How has it evolved?
    • The purpose of the Internet is to allow communication in the event of a catatrosphic
    • disaster.
  • 6.
    • How has it evolved?
      • 1969 first message sent over the net
      • 1976 Queen Elizabeth II sends an e-mail
      • 1984 domain name system introduced
      • 1986 backbone speed is 56K
      • 1989 number of hosts exceeds 100,000
      • 1991 WWW developed
      • 1995 dial up service, $50 domain name
      • 1996 browser war
      • 1999 the WWW is DOT.COM
      • 2000 DOT.COMs are accountable
  • 7.
    • How has it evolved?
      • How many are online? What do people do online? Where is E-Commerce going?
  • 8. Source: Nua Internet Surveys - www.nua.ie/surveys/how_many_online/index.html
  • 9. 1.17 billion by 2005
  • 10.
    • How has it evolved?
      • How many are online? What do people do online? Where is E-Commerce going?
  • 11.
    • Communication
    • Information
    • Education
    • Management
    • Entertainment
    • Purchasing
    • Sales
  • 12.
    • How has it evolved?
      • How many are online? What do people do online? Where is E-Commerce going?
  • 13.  
  • 14.
    • In 2000, the Internet economy generated
    • $830 billion in revenue; created 3 million jobs
    • Of the $830 billion, Internet commerce accounted
    • for about $254 billion of the total and over
    • 1 million of the 3 million jobs
    Reference: University of Texas Center for Research in Electronic Commerce; " The Internet Economy Indicators " - January 2001; www.internetindicators.com
  • 15. PC industry - zero to $100 billion in ten years “ the greatest legal accumulation of wealth in history” Internet economy - zero to $800 billion in five years “ new business model called Dynamic Trade is fundamentally altering the creation, delivery and pricing of products and services” Reference: University of Texas Center for Research in Electronic Commerce; " The Internet Economy Indicators " - January 2001; www.internetindicators.com
  • 16. U.S. e-commerce retail sales ...
    • $26 billion in 2000
    • Approximately .8% of total retail sales
    Reference: U.S. Department of Commerce ; January 2001
  • 17. What people are buying on the Web . . .
    • Airline tickets
    • Hotel reservations
    • Computer hardware
    • Apparel
    • Consumer electronics
    • Car rental
    • Health/Beauty
    • Books
    • Music
    • Computer software
    • Jewelry
    • Toys/Video games
    • Food/Beverage
    • Office supplies
    • Flowers
    • Linens/Home decorations
    • Sporting goods
    • Videos
    • Appliances
    • Furniture
    • Tools/Hardware
    • Footwear
    • Small appliances
    Reference: Forrester
  • 18. Reasons Why People Shop the Web . . .
    • Easy to place an order - 83%
    • Large selection of products - 63%
    • Cheaper prices - 63%
    • Faster service and delivery - 52%
    • Detailed and clear product information - 40%
    • No sales pressure - 39%
    • Easy payment procedure - 36%
    • www.useit.com/alertbox/990207.html
  • 19. Name recognition by consumers . . .
    • Amazon - 60%
    • Priceline - 55%
    • eBay - 46%
    • E-Trade - 43%
  • 20. Mega-selling Web sites . . .
    • Cisco
    • Amazon
    • QVC
  • 21. Examples of E-Businesses ...
  • 22. www.jubilations.com
  • 23. www.mscheesestraws.com
  • 24. www.gumtreekitchens.com
  • 25. www.pleasantgovesoaps.com
  • 26. www.ameliaclark.com
  • 27. www.bayviewfurniture.com
  • 28. www.spahnhouse.com
  • 29. www.mcdonaldfuneralhome.com
  • 30. www.msgifts.com
  • 31. www.plantationpecan.com
  • 32. www.yalls.com
  • 33. www.alaskawildberryproduct.com
  • 34. www.vermontgarlic.com
  • 35. Getting Started
  • 36. Know why you are on the Web???
  • 37. Static Interactive Transactional Integrated Access
    • Advertising
    • Marketing
    • Information
    No Capability
    • No company web site
    • Can access other sites
    • Registration
    • Forms
    • E-mail
    • Online orders, payments
    • Order tracking, queries
    • Funds transfer
    • End-to-end
    • Fulfillment
    • Workflow
    E-Commerce Roadmap
    • Legend
    • - Functions at Level
    • - Requirements to achieve next level
    • Internet access through ISP
    • Email accounts
    • Web site
    • Content development & updates
    • Web site connectivity to database application(s) and email accounts
    • Secure transaction processing
    • Online payment authorization
    • Authentication and validation
    • Seamless connectivity to back-end system(s)
    • Minimize/eliminate manual input on transactions.
    • B2B automated processes
    Level 1 Level 2 Level 3 Level 4 Level 5 Adapted from:www.mepcenters.nist.gov/public/ecommerce-summit.nsf While developing an E-Commerce presence, it is important to know where you are now as well as the appropriate destination for your business. . com
  • 38.
    • Sales Tool . . .
    • e-commerce/e-tail
        • informational
        • transactional
  • 39. Who is going to design, build, and maintain the site??? In-house vs. Outsourcing
  • 40. What do you need for an e-commerce site . . .
    • Domain name
    • Web site/store
    • Web server/host
    • Site marketing
  • 41. What’s in a name??? EVERYTHING!!!
  • 42. www.yourname.com
  • 43. www.register.com www.networksolutions.com Domain name registration services:
  • 44. What do you need for an e-commerce site . . .
    • Domain name
    • Web site/store
    • Web server/host
    • Site marketing
  • 45. What do you need for an e-commerce site???
    • Web store
      • Online product catalog
      • Shopping model/Ordering system
      • Merchant account/Payment processing
      • Customer communication system
      • Tracking system
  • 46. What do you need for an e-commerce site . . .
    • Domain name
    • Web site/store
    • Web server/host
    • Site marketing
  • 47. Internet Service Provider ISP
  • 48. Outsourcing . . . Know who you are hiring!
  • 49. Web Hosting Services
  • 50.
    • Yahoo! Store
      • www.store.yahoo.com
  • 51. What are the costs . . .
    • Domain name
      • set-up fee
      • annual fee
    • Web site
      • in-house
      • outsource
    • Web server/host
      • set-up fee
      • monthly fee
  • 52. What are the costs . . .
    • Merchant account/processing
      • set-up fee
      • transaction fee
      • monthly/annual fee
      • percentage of sales
    • Other
      • marketing fee
  • 53. Service Brochure Site Storefronts Setup fee $25-50 $50-100 Web site design $200-1000 $1500-6500 Web site hosting & maintenance $15-25/mo $100-500/mo Secure server N/A $50/mo Secure server certif. N/A $125 Domain name $3-4/mo $3-4/mo Total setup cost $225-1050 $1675-6725 Total monthly fees $18-29 $153-5541
  • 54. 1 Based on the average cost of several national ISPs' services. ISP SERVICE Cost 1 Setup $50 Simultaneous Web access for up to 10 users $99/month Domain registration $70 E-mail for up to 10 users Included Web hosting, 30MB server space $50 start-up fee, $30/month 24/7 telephone support Included Starter e-commerce storefront including credit card authorization $50 start-up fee, $80/month Miscellaneous charges (e.g., Web design consultancy fees) $300 and up First-year total $3028 and up
  • 55. What do you need for an e-commerce site . . .
    • Domain name
    • Web site/store
    • Web server/host
    • Site marketing
  • 56. Advertising and Promoting Your Web Site Build It And They Will Come???
  • 57. What do E-Customers Want?
  • 58. The key is consumer confidence . . .
    • Fun and easy to navigate sites
    • Pages that appear professional
    • Clear and accurate product information
    • and representation
    • Real time answers through self help
    • features, e-mail, and a toll-free telephone
    • number
  • 59. The key is consumer confidence . . .
    • Good prices and clear representation
    • of all charges
    • Payment options
    • Secure transactions
    • Easy to use return or exchange policy
    • Quick processing time and delivery
  • 60. The key is consumer confidence . . .
    • Shopper privacy
    • Eliminate the unknowns
  • 61. Technical and Design Considerations
  • 62. Elements to consider . . .
    • Bandwidth
    • Browser compatibility
    • Color palette
    • Continuity
    • Frames
    • Homepage
  • 63. Elements to consider . . .
    • User Interface
    • Screen compatibility
    • Readability
    • Text only default
    • Accessibility
  • 64. Designing Web Usability The Practice of Simplicity by Jakob Nielsen www.useit.com
  • 65. The Bottom Line . . .
    • Getting customers to come to your site,
    • Getting customers to make a purchase
    • once they get to your site, and
    • Getting customers to return to your site and
    • purchase again, again, and again!
  • 66. Will technology be the great equalizer or will it deepen the digital divide?
  • 67. . . . . . Written in 1968 by Robert Taylor, director of the Defense Department agency that created original Internet.
  • 68.
    • Americans with more education are more likely to be connected.
    • Americans with more money are more likely to be connected.
    • Whites are more likely to be connected than Black non-Hispanics.
    • Urban Americans are more likely to be connected than rural Americans.
    Connectivity . . .
  • 69.
    • E-commerce is the new business model.
    • Participation is largely dependent on access to
    • and adoption of IT.
    • Access to IT is influenced by education,
    • money, race, and residence.
    The Issues . . .
  • 70.
    • Rural businesses need to position themselves
    • now for a IT driven future.
    • Businesses cannot afford to let barriers hold
    • them back.
    • Lack of unbiased educational information
    • and technical assistance.
    The Challenges . . .
  • 71.
    • All people and all businesses must have the opportunity to be
    • connected to the Internet.
    • Businesses need access to educational and technical expertise.
    • States must educate, recruit and retain people with technical
    • expertise in the region.
    • State and local policymakers must take a comprehensive and
    • strategic look at e-commerce from an economic development perspective.
    What is needed . . .
  • 72. The Critical Role of Education . . . Are colleges and universities in the South prepared to address e-commerce issues effectively?
  • 73. Extension’s Outreach Role . . . Is Extension in the South prepared to address e-commerce issues effectively?
  • 74.
    • Providing campus wide leadership in e-commerce
        • MSU E-Commerce Research, Development, and Outreach Task Force
          • www.msu-ecommerce.org
          • Grant proposals
    • Providing e-commerce educational programs for small businesses
        • Electronic Retailing: Selling on the Internet conference
          • www.ext.msstate.edu/registration/ecommerce.html
        • E-Biz workshops
        • Web site analysis
    In Mississippi . . .
  • 75.
    • Providing e-commerce educational programs for small businesses
        • E-Commerce seminars
          • County extension offices
          • SBDC’s
          • Special interest groups
        • Consultations
        • Electronic publications
          • www.msucares.com/business_assistance/homebusiness/ecommerce.html
    • Providing in-service education for agents
    • Working on multi-state collaborations
    In Mississippi . . .
  • 76. “ Unless efforts are undertaken to close the divide, the South will continue to lag behind, and perhaps fall even further behind the rest of the country.”
  • 77. Beth Duncan, Ph.D. Small Business Specialist Mississippi State University Extension Service [email_address]
  • 78. Electronic Retailing E-Business in Rural Communities