SBDC e-Comm Seminar Presentation
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    SBDC e-Comm Seminar Presentation SBDC e-Comm Seminar Presentation Presentation Transcript

    • GOING FROM bricks-n-mortar TO clicks-n-mortar: EXPANDING YOUR SMALL BUSINESS
      • Module I
      • E-Commerce: The Global Frontier for Small Businesses
        • Dot com failures and successes
        • Why should you be online?
        • Advantages of E-Commerce for Small Business
        • B2C Implementation Framework
        • E-Commerce and your Business Strategy
      • Module II
      • Step-by-step guidance for launching a web-based business
        • Domain Services
        • Hosting Services
        • Website Design
        • Website Marketing, Promotion & Analytics
      • Module III
      • Software solution providers
        • Local Service Providers
        • National Service Providers
      • Dot Com Failures
      • (1999-2001)
      • Online grocer
      • In a mere 18 months, expanded from the San Francisco Bay Area to
      • eight U.S. cities, and built a gigantic infrastructure from the ground up
      • Grocery business has razor-thin margins to begin with, so it was never able to attract enough customers to justify its spending spree
      • FAILED - Lack of proper cost/benefit analysis
      • (1998-2001)
      • was a combination of Disney's online properties and Infoseek, in which the Mouse had previously acquired a controlling interest
      • Though it was meant to be a "destination site" much like Yahoo, had its own little quirks, such as content restrictions against adult material.
      • Disney was never able to make popular enough to validate the millions spent on promotion
      • FAILED - Lack of proper cost/benefit analysis
      • Dot Com Failures
      • (1998-2000)
      • Pet supplies sold online
      • After they ordered kitty litter, a customer had to wait a few days to get it
      • FAILED - Selling the wrong product or service
      • (1998-2000)
      • Founded in the United Kingdom as an online fashion store
      • It’s complicated website was very slow to load at a time when dial-up Internet was the norm
      • FAILED - Poor website
      • (1999-2000)
      • Web site for citizens to do business with municipal government
      • Personalities and egos clashed, technology was stolen, software never worked as it should have
      • FAILED - Poor human resource management
      • Dot Com Successes
      • Online arm of Staples Inc.
      • To compete and improve online customer service there was a complete revamp of the office supplier's 18-month-old site
      • Staples .com streamlined the checkout process, installed two new
      • search tools, added several small-business services, and improved
      • purchasing management
      • SUCCESS – Good customer service
      • World's biggest online grocery service
      • The key to Tesco's success has been to piggy-back its internet business on its existing supermarket operation
      • This means it picks and delivers orders from its network of stores rather than from a handful of purpose-built depots
      • SUCCESS – Good business plan
      • Dot Com Successes
      • Amazon's initial business plan was unusual: the company did not expect to turn a profit for four to five years
      • Amazon grew at a steady pace in the late 1990s while many other
      • internet companies grew at a blindingly fast pace
      • When the Internet "bubble" burst and many e-companies went out of business, Amazon remained profitable and maintained revenues of over $1 billion per fiscal quarter
      • SUCCESS – Good business plan
      • Dress Barn, in Suffern, N.Y., has many offline advantages - a back end fulfillment system, catalog and database architecture and an eager online customer base
      • Web-site lets customers order store merchandise online. Customers will also be able to return merchandise bought online to any of Dress Barn's 700 stores
      • SUCCESS – Brick-n-mortar to support online business
      • Dot Com Successes
      • Grand Prix coverage
      • As the season shifts into gear, the site attracts one million users
      • Revenue comes from advertising, ticket sales and merchandise sales
      • SUCCESS – Good promotion
      • Focuses on helping parents understand a child's learning abilities and purchase the appropriate toys and software
      • realized that spending hundreds of thousands of dollars in marketing for strong brand recognition wouldn't amount to much if customers didn't come back
      • It would take quite an effort to put the brand ahead of the likes of KB Kids and Toys "R" Us, and even dot-coms like
      • What it could do was make it clear that was more than just a toy site
      • SUCCESS – Good business plan
      • Why should you be online?
      • 68% of Americans and 12.3% of ‘Rest of the world’ use the Internet each day
      • -- Internet World Stats 2006
      • $192.8 million: U.S. Internet revenue from single online purchases for the first half of 2005
      • --Online Publishers Association/ComScore Networks, November 2005
      • 83% of small- and medium-sized businesses with websites containing e-commerce features are receiving monthly revenue from it
      • --Interland, September 2005
      • Integration between physical stores and the Web site is an important part of any brick-and-
      • mortar's online success
      • -- Chris Correia,
      • 53% of small businesses with websites say their sites are primarily to provide company
      • credibility; 49% use it to generate sales; 38% brand awareness; 33% generate leads; 29% it
      • provides a critical building block for developing the products and services they sell
      • --Interland, September 2005
      • Advantages of E-Commerce for Small Business
      • Small Businesses have just as much space in the heavily used Web search
      • engines as large Corporations
      • Internet is considered to be the least expensive way for Small Businesses to market their goods and services globally
      • Small Businesses can demonstrate the company’s products and services in a multimedia Format
      • They can reach younger, more affluent buyers
      • They can maintain full scale after sales customer service
      • They can maintain continuous contact with the customer for all aspects of
      • business activities
      • B2C Implementation Framework
      • E-Commerce and your business strategy
      • Mission
        • Decide clearly how to make the Website relevant to your business
      • Audience
        • Know exactly who will visit your site
      • Audience relationship
        • Find out the characteristics and Internet habits and preferences of your customers
      • Objectives
        • Do you want to build your brand or conduct online commerce?
        • Will you provide customer support through technical information or in-house staff?
      • Current Web presence
        • Analyze whether limited success with an existing site is a result of concept, content,
      • design or marketing
        • Identify what the new/improved website should accomplish for your company in three months, six months and one year after it is implemented;
        • Quantitatively measure success of your website
      • E-Commerce and your business strategy (continued)
      • Step-by-step guidance for launching a Web-based business
      • Step I : Domain Services
      • Domain name registration
        • Top level domains (TLD) are .com, .net, .biz, .us, .ca, .info etc.
        • has a list of accredited domain name registrars
      • Domain name availability
        • Check can be performed using Allwhois™ ( ), a free service provided by MarkMonitor
      • Domain name hosting
        • Ensure that the Domain name you have purchased points to the website being hosted by your web hosting provider
      • Features of a good domain registrar:
        • No cost domain forwarding or domain parking
        • No cost for change of Registrant
        • Domain Name Locking
        • DNS Server Changes
      • Step-by-step guidance for launching a Web-based business
      • Step II : Hosting Services
      • Web Hosting Service
      • Front Page site hosting
      • Ecommerce Hosting
      • Key considerations to evaluate the web host provider:
        • History and reputation
        • Choice of operating system (Windows NT/2000, Unix)
        • Amount of server space, traffic limits allowed (Bandwidth)
        • Scalability of the web host service, up-time and money back guarantees
        • Amount of backup and restore capabilities
        • Site creation, management and commerce tools, development and technical support
        • Web based email accounts (e.g. [email_address] )
        • Security features
        • Cost
      • Step-by-step guidance for launching a Web-based business
      • Step III : Website Design
      • Eight most important guidelines for designing your Website
      • Step-by-step guidance for launching a Web-based business
      • Step III : Website Design (continued)
      • Build your Website/Web Store
        • Purchase software 'out of a box'
        • Use software provided by an ecommerce hosting company
        • Create your own system, writing the code necessary
      • Companies offering low-cost, out-of-the-box solutions:
        • Yahoo Store
      • Step-by-step guidance for launching a Web-based business
      • Step III : Website Design (continued)
      • The 7 C’s Framework
      • Step-by-step guidance for launching a Web-based business
      • Step III : Website Design (continued)
      • Context
      • Aesthetically dominant Functionally dominant Integrated
      • Step-by-step guidance for launching a Web-based business
      • Step III : Website Design (continued)
      • Content
      • Digital information (text and multimedia)
      • Streaming media
        • Streaming media can add value to your new website
        • It may include audio clips, video clips, or other media formats that the viewer can access while on your website
        • It allows viewers to consume (view or listen) to media without downloading
        • Can provide viewers with stimulating and informative information with a click of the mouse
        • Can be used as an advertisement or mini-commercial on your website or as an instructional video
      • Content classification:
        • Product dominant – primary purpose is to sell physical goods
        • Information dominant – houses vast archives of information and tools for finding specific topics
        • Service dominant – perform a service for its users, often for a fee
      • Step-by-step guidance for launching a Web-based business
      • Step III : Website Design (continued)
      • Community
      • Feeling of membership in a group and sense of involvement and shared interests
      • Community classifications:
        • Nonexistent - sites that have no community offer no way for users to interact with one another, on either a one-to-one basis or one-to-many basis
        • Limited - sites that offer features such as reading and posting information, stories, or opinions (non-interactive tools)
        • Strong - sites that offer interactive community functions such as chat rooms and message boards
      • Customer feedback
        • One of the best tools for improving the quality of your site or product
        • An interactive website makes your visitors feel more comfortable and increases your chances of making a sale. For e.g. a simple feedback form in the "Contact Us" section of your website
        • Message boards, posted customer feedback or reviews, a question-and-answer forum, or a blog can encourage customer involvement
        • Have a strategy for dealing with the different kinds of feedback you receive
        • Listen to what users have to say and be prepared to rethink your product based on their comments
      • Step-by-step guidance for launching a Web-based business
      • Step III : Website Design (continued)
      • Customization
      • A website's ability to tailor itself to each user or to be tailored by the user
      • Customization classification:
        • Generic – website presents same face to each user
        • Moderately customized – site does not vary widely among users
        • Highly customized – make extreme efforts to give each user an individualized experience
      • Communication
      • The dialogue between a site and its users
      • Communication classification:
        • One-to-many, non-responding user broadcast communications to defined audiences
        • One-to-many, responding user – sends messages to registered users and invites them to submit comments and response
        • One-to-one, non-responding user sends personalized messages to address users’ specific needs
        • One-to-one, responding user – site sends a personalized message to which the user may respond
      • Step-by-step guidance for launching a Web-based business
      • Step III : Website Design (continued)
      • Connection
      • Ability to link to other sites
      • Connection classification:
        • Destination site – predominately self-generated content with few links to other sites
        • Hub site – combination of self-generated content and selective links to related websites
        • Portal site – almost exclusively outsourced content and links to other sites
      • Commerce
      • Use website to sell goods, products or services
      • Commerce classification:
        • Low – have the ability to process transactions, but few or no e-commerce tools
        • Medium – allow financial transactions but without all the ‘e-commerce bells and whistles’
        • High – equipped with all or almost all e-commerce tools
      • Security
        • SSL Encryption allows a secure session that guarantees privacy
        • SSL Certificates can be purchased through several companies. 93% of Fortune 500 use VeriSign on their sites
      • Step-by-step guidance for launching a Web-based business
      • Step III : Website Design (continued)
      • Mapping the Seven C’s Framework
      High Medium Low Commerce Portal Hub Destination Connection One-to-one, responding user One-to-one, nonresponding user One-to-many, responding user One-to-many, nonresponding user Communication Highly customized Moderately customized Generic Customization Strong Limited Nonexistent Community Service- dominant Information-dominant Product-dominant Content Integrated Functionally dominant Aesthetically dominant Context
      • Step-by-step guidance for launching a Web-based business
      • Step IV : Website Marketing, Promotion and Analytics
      • Marketing
      • What is Link Popularity?
        • Measurement of links to your website from other websites
        • Example: The Pantagraph, B-N Web guide
      • Why do you need Link Popularity?
        • Search engines rate your website based on Link Popularity
        • Determines what order your website is ranked in a given search
      • How to get Link Popularity
        • Link Exchange - Find sites that you would like to have your link on and email a Link Exchange request
        • Important to look for high quality links that would have a high rating
      • Step-by-step guidance for launching a Web-based business
      • Step IV : Website Marketing, Promotion and Analytics
      • Promotion
      • Gift certificates for coming to your site
      • Discount codes offered at your site
        • Both will cause interest in what you are selling
      • E-Newsletters
        • Cost effective way of getting news about your company out to customers
        • Drive people to your website using the E-Newsletter
        • Websites with templates/tutorials:
      • Step-by-step guidance for launching a Web-based business
      • Step IV : Website Marketing, Promotion and Analytics
      • Analytics
      • Service available to monitor your website
      • Provides statistics on what visitors are looking at on your site
      • Will give you the best feedback for what works and what doesn’t
      • Software Solution providers
      • There is a lot to consider when choosing who will develop and host your site.
      • It is important to evaluate your options before choosing your Provider.
      • Local/Full Service Providers:
        • Offer most if not all services
        • May offer more personal service and customer support
        • May tend to be more expensive
      • National Service Providers:
        • Not many are full service providers
        • Individual companies or sites that specialize in specific services (Web hosting,
      • website design e-commerce)
        • There might not be much interaction between you and your provider
      • Local Service Provider:
      • A5 (Bloomington, IL)
      • Started in 1996 as Dave’s World and changed to A5 in 2001
      • Claim to be one of the oldest and most experienced companies in Central Illinois
      • Specifically provide web solutions to the small company market
      • Provides many web services:
      • Website Development
        • $100-125 hourly rate
        • Full site productions typically range between $2,000-$15,000
      • Web Hosting
        • Variety of web hosting packages
        • Range anywhere from $9.95 a month to
        • $99.95 a month depending on client’s
      • Website Consulting
        • Guide clients to build a productive and efficient website
        • Charges are $125 an hour
      • Local Service Provider:
      • CTech Services (Normal, IL)
      • Started in 1994 as a computer service and training center
      • In 1998 widened its business scope to include website development services
      • Business model is to work with small to medium size businesses - Allow their clients to focus on the business core competencies and not the website
      • Provides many web services:
        • Website design - Will build websites for any size to fit the clients needs. All sites are custom designed
        • E-Commerce – Offers total ecommerce solutions
        • Can build from the ground up or integrate a commerce system into an already existing site
        • Web Hosting
        • Offers a variety of plans to suit different sites; Ranges from $10 to $35 a month for plans
      • Local Service Provider:
      • Webpresence group (Peoria, IL)
      • Offers many different services to a growing
      • and existing businesses
        • Web services (Design, Hosting, ECommerce)
        • Development (Software and Multimedia)
        • Network (Servers and Security)
      • Provides many web services:
      • Website Design
        • Gets to know your business before designing the site
        • Understands the goals of your business to enhance the effect of the new site
      • Web Hosting
        • 4 different solutions to fit the clients’ needs
        • Ranges from a standard simple solution to a complex e-commerce solution
      • National Service Provider:
      • Yahoo Small Business
      • Offers web design and web hosting
      • Many different options for the user
      • Website design:
        • Allows you to design your own website using Yahoo! SiteBuilder (free)
        • Can also have their partner, Website Pros develop your site
        • Different packages ranging from a simple 1 page site for $99.99 to a fully customized 10 page site for $2099
      • Web Hosting:
        • Offers 3 different plans; Starter, Standard, and Professional
        • Prices range from $11.95 a month to $39.95 a month - Includes free domain name, business emails, and many other options
      • National Service Provider:
      • Apollo Hosting
      • Website hosting since 1999
      • Winner of best e-commerce hosting award in
      • 2005 and many other hosting awards
      • Primarily focuses on providing a genuine,
      • dedicated hosting plan to fit their client’s needs
      • Also allows for the client to order software for do-it yourself web design
      • Many different hosting plans:
        • Simple, basic plan that serves as almost as an electronic business card; information only - $6.96 a month
        • Business plan for those who are just starting to sell their products online - $13.96 a month
        • E-commerce Pro Plan for advanced hosting and successful e-businesses - $20.96 a month
      • Questions
      • ???
      • References:
      • Poon, Pak-Lok & Lau, Amy, H. L. (2006). The PRESENT B2C Implementation Framework.
      • Communications of the ACM, 49(2) , 96-103.
      • Clyman, John (2003, Feb 8). Even easier e-commerce. PC Magazine , 118-127.
      • Rayport, J., & Jaworski, B.H. (2004). Introduction to e-Commerce . McGraw Hill Irwin.
      • Information on ‘Considerations to evaluate web host providers” retrieved March 01, 2006,
      • from Web site:
      • Information on ‘Prepare a strategy for your website” by Mary Ann Chapman, retrieved
      • March 10, 2006, from Web site:
      • Information on ‘Web Solution providers’ retrieved March 10, 2006, from following Websites: