IT for Decision Makerse Commerce Overview By Taholo Kami for UNESCO
What is e Commerce? e commerce is enabling or achieving your business objectives by using information technology to enhance or transform your business processes. Kami, 2000
e commerceBusiness to business (B2B) automating supply increasing business efficiency Car manufacturing ordering tires from supplierBusiness to Consumer (B2C) Retail Sales ,Ordering books online Customer SupportConsumer to Consumer (C2C) Online Auctions of second hand articles, antique pieces
eCommerceecommerce is more then just an online shop selling goods…. Businesses make huge savings by more efficient interaction with their suppliers or buyers. A local pharmacist orders 60% of his supplies from an overseas pharmaceutical suppliers website and saves 5% in his purchases - is this ecommerce? A remote Fiji resort attracts guests from the USA after several exchanges of email. Is this ecommerce?
Global400 million users of Internet worldwide1999 US online retail sales - US$20bn. Forrester Research2000 US online retail sales - US$30bn+ Forrester Research2004 US Online retail sales US$6.9 trillion. Forrester Researchelectronic payment of bills and banking will cost US Postal Service $17bn over 10 years.
Interpretation ?Consumers are willing to spend money on online transactions.Despite the recent dot.com drop in investment - consumers continue to use the Internet in growing numbers.The US figures are only part of the global picture.
What is working?Travel / Tourism Retail - items that don’t need personal touch - objectivity in product quality and performance music, books, gifts, Computers, electronic items AuctionsReal Estate - houses and investment properties.Customer support servicesMore efficient and effective processes between businesses (B 2 B)
What is not working?Items which require “touch and trial” Luxury goods ClothesGroceries - it works for some people but market is restrictedNote: Many OFF line factors determine success of Online service.Eg. Transport network, customer profiles,
Demonstrations - TourismTourism: www.tongaonline.com/sailingsafaris Sailing Safaris - Tonga One boat operation in 1996 from small island base Competing with 2 multinational yacht companies with global marketing network Since 1997 - 80% of business from web site. This statistic 60-80% of bookings from web inquiries is common to Tourism operators in the Pacific.
Objectives?Why get online? Promote awareness of your Organization Sell a product Customer support Information and contact page Networking Everyone else has a web page
PlanWhat is your product? Electronic, Services or physical Portable and inexpensive to deliver TourismWho is your market? Overseas buyers Upper income art collectors Budget travellers / Up marketObstacles, Implementation and deadlines.
Getting OnlineHosting Your Website Fast Access Cost, Support, Space and ServicesChoosing a Domain Name (web address)www.myname.com / .nu / .to / .tv / .fj / Calling Card Choose name that relates to product Reflects on organization Easy to remember
Design IssuesOften Simple Is Better E.g. National PNG, Yahoo Complexity depends on your website objectivesPlanning content How do you keep content fresh and relevant Who Develops your website? Professional Services Do it Yourself
Web Site SoftwareWeb-site Creation Common Software Tools. Image Editing Adobe Photoshop Jasc.com Web Page Development Paint shop Microsoft Front page - $150 Dream Weaver - $150 – 200 Netscape Communicator-Free Note: There are a lot of cheaper software online.
Managing your Web SiteManaging your website can take TIME!Adapting Business processes Customer expectations Limitations of the medium (non face to face)
Transactions1. Getting paid online is very difficult in some countries. Many banks will need a large deposit or a strong relationship to allow a SME to open a merchant / credit card processing account at a bank.Alternatives include: Bank transfer Credit Cards Merchant account Manual / Automated processing Third party processing paypal.com
DeliveryDelivering an artifact after online purchase or attracting visitors to an eco tourism resort - managing expectations is essentialPeople are used to guaranteed delivery but more importantly, communicate reality so expectations are realistic. E.g. Implement a 2 week guarantee for goods Ensure online advertisement meets expectations Use a reliable delivery service (TNT, FedEx)
Marketing Web siteHow do people find your website?ONLINE Strategy Links from related and / or popular web sites Search Engines Online Advertisements Informed by other users
Marketing Your WebsiteOFFLINE Strategy - Show Your URLwww.MYCOMPANY.com Stationary Advertising on conventional media Trade shows
Making a contractWhat terms do you want to include?What risks are you trying to avoid?How will disputes about contract be dealt with?What is the governing law?Who will sign it?
ConclusionDespite infrastructure limitations, the target market in developed countries are likely to be Internet users.If unsure, start small. An existing website helps develop your capacity to interact with customers and measure web potential.Lobby Government for effective IT Strategy that develops infrastructure and builds local capacity.