What is business?• All functions and activities in a company that are done in order to gather profit
What is eBusiness? • "e-Business" is an integration of business software in order to create value for the enterprise, its clients, and its partners. • Includes virtual companies as well as the traditional ones • Can include Selling, Buying, Customer service, CRM, Collaboration, Research, Promotion, Communication (internal & external), HRM etc.
eBusiness, eCommerce and Social media? • eCommerce a term for any type of business, or commercial transaction, that involves the transfer of information across the Internet (~ web shops??) • eBusiness can be considered as the whole value chain in a company: • electronic purchasing and supply chain management • processing orders electronically • handling customer service • and cooperating with business partners • It also covers the integration between software, communication between customers, stakeholders, employees and a company • eBusiness has a strategical focus – VALUE CREATION • Even though social media as such is more of a tool or channel for eBusiness purposes, it has also an uttermost importance in WoM and customer engagement
Facts of eBusiness 1In Europe• Online sales grow approx 15 % per year since 2009• The number of online buyers in Europe grow from 157 million to 205 million by 2015• Total sales reach 133.6 billion euros http://mashable.com/2011/02/28/forrester-e-commerce/
Facts of eBusiness 2 Companies saying that e-business constitutes ... ... constitutes a ... constitutes ... is not relevant significant part of some part of how for their how they operate they operate operations % of firms % of firms % of firmsTotal (10 sectors, EU-10) 15 42 43By SectorFood & beverages 7 38 54Footwear 10 34 56Pulp & paper 15 39 46ICT manufacturing 28 42 30Consumer electronics 25 47 28Shipbuilding and repair 13 43 43Construction 9 39 52Tourism 18 42 40Telecommunication 34 42 24Hospitals activities 34 43 23By Country (EU10)Germany 28 47 25France 11 32 57Netherlands 13 25 62Finland 10 45 44United Kingdom 14 57 29
USE AND USERS INFINLAND• 56 % of all Finns use internet many times a day• 73 % has searched for product/service information in internet during the past 3 months• 41 % has bought something from internet during the past 3 months• 42 % of all Finns are registered in some social media• 28 % follows social media daily• 59 % has searched for information of OR bought tourism services during the past 3 months• 32 % has bought some tourism service in the internet during the last year• Others have bought clothes and tickets• Growth of the eBusiness has been 10 – 20 % annually (Tilastokeskus 2010, NetTrack 2010)
Challenges of eBusiness• Lost purchases (it is easy just to let it be) quite often due to technical reasons• Marketing (SEO, multichanneling etc.)• Misbeliefs and mistrust among customers• WoM (reviews, blogs, etc – social media) and crowsourcing• Company attitudes• Changes, innovations and development• Updating• Follow up and measurement• Hackers, viruses, phishing, credit card frauds etc.• ENGAGEMENT
Future of eBusiness• Increades growth• Blurred borders• Technical requirements as well as demand for global logistics, invoicing and payments• Mobile and HTML5• Location and awareness (geo targeting)• Augmented reality• Learning from customers• Not only B2C, B2B or C2C separately, but together (group buying sites)• Affiliate marketing