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Internet on business_print

  1. 1. Internet Technology and your Business- Understanding the Aspects of e-Business. An Introduction and Guide Francis Stevens George Kizuki Group-Information Technology.FSG 1
  2. 2. Telecommunications & InternetInformation Technology.FSG 2
  3. 3. Business Value of TelecommunicationsStrategic Capabilities Example Business ValueOvercome geographic Use the internet and Reduce delay in orderbarriers extranet to transmit filling, improve cashflow customer orders for order by speeding billing. processing. Provide information toOvercome time barriers remote locations upon Speed sales, less lost request. Credit sales due to lack of authorization. information. Reduce costs of moreOvercome cost barriers traditional means of Reduce expensive communication- business trips VideoconferencingOvercome structuralbarriers Support linkages for Fast. Convinient services competitive advantage- locked in customers and B2B EC suppliers. Information Technology.FSG 3
  4. 4. Strategic Business Value of Internet based applicationsInternet Marketing & Product Sales & Support & customerCapability Research Distribution feedback Data for Market Reach new Access to customer Research customers Comments onlineBenefits Consumer response Low cost distri Immediate response To new products bution to customerTo company problems Environmental Multiple contact scanning points at no incre mental costsOpportunities Enhanced customerFor Increase Market Share Lower cost margins satisfactionAdvantage Adapted from Mary Cronin-Doing MoreBusiness on the Internet . Information Technology.FSG 4
  5. 5. eBusiness & eCommerceInformation Technology.FSG 5
  6. 6. The Difference between e-Business & eCommerce• E-Business is about interaction. It represents a more focused and comprehensive involvement of the organisation. The platform is attitude shift.• E-commerce is about transaction. It represents one aspect of E-Business. The platform is hardware and software. Information Technology.FSG 6
  7. 7. eComerce/eBusiness-StrategicConsiderations Business Strategy Technology Strategy Consideration What is our value proposition? Is e-business an element? Where are we going, and how long Can the internet accelerate the before we get there? effort? Where do we gain strategic Can the internet provide additional advantage? leverage? Who are our customers? Are they computer literate? Can the internet improve their buying experience? Who are our suppliers? Do they have technology interface with our system? What are the demands of our Will web enabled commerce improve stakeholders? our valuation? Information Technology.FSG 7
  8. 8. Investment Approach to eCommerce & eBusiness High Short-Term Strategies Long-Term Strategies E-Business Self-services Web Sales CRM SCM Intergrated Web Store Collaborative ExtranetsBusiness Interactive Extranets andValue Marketing Exchanges Web Storefront Procurement Automation & e-catalog Community Extranets B2C Customer Self WebBbrochures B2B Service Short-Term Projects Operations Automation Time to Implement HighLow Information Technology.FSG 8
  9. 9. How your company can use the Internet for Business Inventory Management System Suppliers Extranet for EC, access Head Office: Inventory, replenish stock, Marketing,Electornic THE INTERNET Send documents, specs. Commerce, Collaboration with customers,Prospects . Remote office-Business Partners- Customers- Intranet links,virtual teams,Email,document transfer, Order, shop, get service Interactive communications,Discussion, extranent /support. Collaboration, computing Information Technology.FSG 9
  10. 10. Example:Intranets-Enterprise Information Portal Communication and CollaborationExisting Communicate and Collaborate with e.mail, EveryoneE-mail, Voice Discussion forums, chat And conferencingMail Systems Intranent F Internet Business Operations Enterprise And Management Portal IExisting database RAnd Enterprise Secure, universalApplications access to view E and use corporate external data W A Web Publishing Employees LHTML, MS Office, Author, publish, L ExtranetXML, Java and Other and share documentsDocument types Customers, Intranet Portal Management Suppliers, Centrally administer PartnersExisting Hardware Clients, servers,And Networks Security, directory, And traffic Information Technology.FSG 10
  11. 11. Deriving Business Value from E-commerceApplications Generate New Revenue Sources Reduce costs of doing Business Develop New Markets & Channels Attract New Customers Increase customer loyalty & Retention Develop New Web based Products Information Technology.FSG 11
  12. 12. The Process of Discovering e-Opportunities E-Operations •Automation •Supply chain recon & Int •Re-eng of primary infa •Procurement •Increase Parenting Value E-Services •Understanding customer needs •Provide excellent customer service •Knowledge •Construct customer optionsE-Marketing•Improved and enhanced selling process•Improved customer experience Information Technology.FSG 12
  13. 13. Possible Benefits of E-Commerce System-Intangibles Intangible Benefits Intangible Benefits Example Example •Improved information availability •Improved information availability More timely and accurate More timely and accurate •Improved abilities in analysis •Improved abilities in analysis OLAP and Data Mining OLAP and Data Mining •Improve customer service •Improve customer service More timely CRS More timely CRS •Improve management decision making •Improve management decision making MIS/ESS MIS/ESS •Impoved competitive position •Impoved competitive position System to lock in customers. System to lock in customers. Information Technology.FSG 13
  14. 14. Possible Benefits of E-Commerce System-Tangibles Tangible Benefits Tangible Benefits Example Example •Increase in sales or profit •Increase in sales or profit EC based Products EC based Products •Decrease in information •Decrease in information processing costs processing costs Eliminate unnecessay Eliminate unnecessay document document •Decrease in operating Costs •Decrease in operating Costs Reduction in inventory Reduction in inventory carrying costs carrying costs •Decrease in required investment •Decrease in required investment Decrease in inventory Decrease in inventory investment required investment required •Increase operational efficiency •Increase operational efficiency Less spoilage, waste, idle tume. Less spoilage, waste, idle tume. Information Technology.FSG 14
  15. 15. Overview of E-Business Applications E-Business Applications The Internet Intranets Telecommunications Extranets Networks Other NetworksEnterprise Communication Electronic Commerce Internal Businessand Collaboration Systems-Electronic Mail -POS -Transaction Processing-Voice Mail -Web retailing -Intranent Ent. Info. Portal-Discussion Forum -Online Auctions -CRM-Data conferencing -Interactive Marketing -Workflow Systems-Videoconferencing -SCM -Activity Monitoring-Electronic Meeting -Electronic Fund Transfer -Process Control -Online Banking -Management Support Systems Information Technology.FSG 15
  16. 16. Business ModelInformation Technology.FSG 16
  17. 17. Business Model What is a Business Model? A system which defines how a firm will build and use its resources to offer its customers superior value profitably. Business model Customer Value Scope Revenue sources Connected Activities Implementation CapabilitiesInternet Performance Environment Five Forces Industry Drivers Industry Dynamics Macro Information Technology.FSG 17
  18. 18. Key Questions for your Business Model.• Under what business model does my company operate?• How do we develop a model to ensure success?• Which business models are taking hold in my industry and why?• Is my organisation capable of adapting to the required business model /business model changes? Information Technology.FSG 18
  19. 19. Business Models-TopographySelf Organizing Agora AllianceControlling Distributive Network Value Chain AggregationHierarchical Low Value Integration High Information Technology.FSG 19
  20. 20. Business Model-Questions Component Questions for all models Questions specific to Internet business models Customer value Is the company offering What unique features of the something distinctive? internet allows you to offer something distinctive? Can we solve a specific problem Scope To which customers are we What is the scope of customers offering our value? that the internet enables us to reach? Does the net alter my product/service mix. Pricing How do we determine price? Does the internet make pricing different? Revenue Source Where do the mullah come Are revenue sources different? from? What are the margins? Connected Activities What set of activities do we How many new activities must have to perform to deliver be perform? Can we perform value? existing activities better? Implementation Organizational structure, What does the internet do? systems, people and environment. Capabilities Capabilities and capabilities What new capabilities? gaps. Sustainability How difficult for others to copy Sustainability- easier or more us? How do we keep making difficult? money? Information Technology.FSG 20
  21. 21. Practical Business Question, Why you cannot wait, What you must do and know.Information Technology.FSG 21
  22. 22. Practical Business Questions: We can work with you to answer some of them. How do I Imove my traditional business to e-business? How do move my traditional business to e-business?  We have lot of information coming from various We have lot of information coming from various sources. How can we collect, analyse and use it to sources. How can we collect, analyse and use it to support our business? support our business?  We are small company and do not have the resources to We are small company and do not have the resources to invest in e-commerce. what can we do? invest in e-commerce. what can we do? We want to see the big picture. How? We want to see the big picture. How? My business needs to get easy-to-use, analytical tools to My business needs to get easy-to-use, analytical tools to create good customers profiles. How can we do this? create good customers profiles. How can we do this? We do not know the use of order Management? We do not know the use of order Management? We sell and deliver tangible goods. What can the We sell and deliver tangible goods. What can the internet do for us? internet do for us? Information Technology.FSG 22
  23. 23. Why you cannot wait? Lower costs today to develop and implement. Early investment for better pay back in the future. Leadership role rather than follower. Certain cost savings are immediate-so called ”hard costs”. Early starters create electronic structural barriers for followers. Companies implementing technology are more likely to meet customer needs than those who do not. Unprecedented market reach at home and abroad. Possible elimination of costly intermediaries. Information Technology.FSG 23
  24. 24. The New Paradigm Agri/Commodities Services Industrial GoodsLogistics Banking Sofware Systems Telecommunications Information Technology.FSG 24
  25. 25. A ”must” for Managers Conceptual understanding of the technologies. Application Integration. Listen, learn, understand and respond. Appreciate that e-business is a long term proposition. Understand that e-business is evolving. Information Technology.FSG 25
  26. 26. Key Advice Its not the technology but its applications that counts! Technology in itself will not create value. Focus on the big picture. Build a little, use it, build a little more. Your people MATTER Information Technology.FSG 26
  27. 27. The Stakeholders-eBusiness Strategic Partners: Strategic Partners: Partners who are planning for the future of your business. Partners who are planning for the future of your business. Operational Partners: Operational Partners: Partners helping you run your business today. Partners helping you run your business today. Governance: Governance: The individual applying the rules and regulations that are The individual applying the rules and regulations that are relevant to your business stakeholders. relevant to your business stakeholders. Customers: Customers: The end purchasers. The end purchasers. Community: Community: The people who are interested in your products and services, The people who are interested in your products and services, people who may or may not include your business customers. people who may or may not include your business customers. Shareholders: Shareholders: Employees: Employees: Information Technology.FSG 27
  28. 28. Management Information SystemsInformation Technology.FSG 28
  29. 29. Why Management Information SystemsCompetition in World MarketsGlobal Work GroupsKnowledge and informationKnowledge-now a key assetProductivityNew Product and ServicesFlat organisationsVirtual CompaniesIncreasing decentralizationLower transaction and coordination costsCollaborative work and Team workInformation Technology.FSG 29
  30. 30. Management Information Systems-Types Operational Transaction Processing Level Systems Knowledge Office Automation, Knowledge work Level Systems Management Decision Support,(DSS) Level Systems Management Infor (MIS) Strategic Executive Level Systems Support (ESS)Information Technology.FSG 30
  31. 31. Link between information Systems Executive Support System Management Management Systems Systems (MIS) (DSS) Knowledge Transaction Systems ProcessInformation Technology.FSG 31
  32. 32. Management Information Systems-UsesMapping Structured,Semi-Structured and Un structured DecisionsBetter linkage between activities in the value chainPromote Quality (TQM)Manage Strategic TransitionsImprove product and servicesReduce Cycle TimeInformation Technology.FSG 32
  33. 33. Systems Development & Organisational Change Information Technology Organisational Change Global Networks No longer constrain by location; transaction costs decline. Everyone linked through intranets. Enterprise networks Collaboration, cross functional teams; customer focus increases, business process reengineering. Distributed Computing Decentralization, empowerment Mobile Computing Anywhere, anytime, work is portable, increases flexibility. Digital Work Processes Accessibility, work flows automated, shared documents,conference callsInformation Technology.FSG 33
  34. 34. Who we are and what we doInformation Technology.FSG 34
  35. 35. What we do? Calculate ROI and related financial  ratios/analysis on  Calculate ROI and related financial  ratios/analysis on eCommerce & eBusiness venture eCommerce & eBusiness venture Analyse your customers expectations related to  Analyse your customers expectations related to eBusiness/ecommerce eBusiness/ecommerce Track the impact of technical innovations on your industry  Track the impact of technical innovations on your industry Determine the best eCommerce strategy for your specific  Determine the best eCommerce strategy for your specific industry industry Determine your back end logistics/supply chain management  Determine your back end logistics/supply chain management Define the steps you can take to Webify your business  Define the steps you can take to Webify your business Information Technology.FSG 35
  36. 36. E-Business/IT Strategic Planning Process Key Insights Key Objectives PrioritiesCustomer and E-Business E-Business/IT E-BusinessBusiness Value Strategies and Strategies and ApplicationVisioning Models Architecture Development and Deployment More Questions Feedback Feedback Information Technology.FSG 36
  37. 37. Applications Development Identify an end users E-Business Requirements Investigate/Analysis Develop E-Business Systems Prototypes Analyses/DesignPrototypingCycle Revise the Prototypes to better meet End user requirements Design/ImplementationMaintenanceCycle Use and Maintian the Accepted E-business Systems Implementation/Maintenance Information Technology.FSG 37
  38. 38. Feasibility of E-Commerce/E-Business Systems Organizational Feasibility Economic •How well a proposed Feasibility E-commerce systems Technical fits the company •Savings in labour costs plans •Increase sales revenue Feasibility •Decreased investment in •Capability, reliability Operational inventory and availability of Feasibility •Increased profits hardware, software and applications management •Acceptance of employees •Management support •Customer and Supplier acceptance Information Technology.FSG 38
  39. 39. Who are we? Young Consulting company with a team that has 25 Young Consulting company with a team that has 25 years of combined experience in technology, Business years of combined experience in technology, Business Management and Development issues in Africa. Management and Development issues in Africa. A diverse team in age, educational, professional A diverse team in age, educational, professional experience and nationalities. experience and nationalities. A company that has key strategic partners leveraging A company that has key strategic partners leveraging knowledge in all aspect of business, development and knowledge in all aspect of business, development and technology. technology. A company that has as much to learn as it has to A company that has as much to learn as it has to share. share. Information Technology.FSG 39
  40. 40. Transform Ideas to RealityAn idea, perhaps a thought The path from Idea to a service, product or project is like a plane flight. Everything has to be planned for, including the unknown…. The rest is history….. Information Technology.FSG 40
  41. 41. Our Information Kizuki Group. Kongens Gate 24. 0153 Oslo. Norway. Kizuki Group. Kongens Gate 24. 0153 Oslo. Norway. Tel: 47 24 14 99 53/ 47 916 88 270. Fax: 47 24 14 99 98. Tel: 47 24 14 99 53/ 47 916 88 270. Fax: 47 24 14 99 98. ePost: ePost: Represented in Represented in South Africa South Africa Nigeria, Nigeria, Cameroon, Cameroon, Ghana, Ghana, Sierra Leone Sierra Leone Information Technology.FSG 41
  42. 42. Sources Consulted Our Research  Our Research Cyberstrategy-Pauline  Cyberstrategy-PaulineBickerton, Mattew Bickerton,Kate Simpson- Bickerton, Mattew Bickerton,Kate Simpson- Holley. Published in Association with the Chartered Institute of Holley. Published in Association with the Chartered Institute of Marketing. Marketing. Business Data Communications and Networking. 6th thEdition. Jerry  Business Data Communications and Networking. 6 Edition. Jerry FitzGerald & Alan Dennis. FitzGerald & Alan Dennis. Essentials of Information Management Systems. 3rd rdEdition. Kenneth C.  Essentials of Information Management Systems. 3 Edition. Kenneth C. Laudon & Jane P. Laudon. Laudon & Jane P. Laudon. E-Business Readiness-A customer –focused framework. James Craig &  E-Business Readiness-A customer –focused framework. James Craig & Dawn Jutla. Dawn Jutla. E-Commerce: Formulating Strategy, Robert Plant  E-Commerce: Formulating Strategy, Robert Plant Introduction to Information Systems-Essentials for the Internet worked e-  Introduction to Information Systems-Essentials for the Internet worked e- Business Enterprise. James A. O’Brien Business Enterprise. James A. O’Brien Information Technology.FSG 42
  43. 43. Selected Industry The Internet effect on these IndustriesInformation Technology.FSG 43
  44. 44. The Pharmeuctical IndustryInformation Technology.FSG 44
  45. 45. Pharmaceuticals-The Reality• The internet is already changing the way pharmaceuticals companies deal with each other and their customers.• Internet related R&D is already having far reaching implications in the industry according to 50 R&D executives from large pharmaceuticals.• Companies will have to move quickly and decisively if they are to stay ahead of the technology driven changes in the industry. Information Technology.FSG 45
  46. 46. Pharmaceuticals-Action• Design web-enabled strategies for owing and trading in three key assets:• Capability Assets-operational excellence• Science assets-insight & knowledge management• Consumer value assets-feedback from consumers in creating new drugs. xxxxxx have a choice in investing in these assets now, while the healthcare sector on the internet is still forming (particularly in Africa) OR being caught by those who have already done so. Information Technology.FSG 46
  47. 47. Pharmaceuticals-A New Concept (e-detailing)• E-detailing is using internet-based communications to provide a value added marketing channel to reach prescribers and complement the activities of sales reps.• The key goal is to maximise the effectiveness of marketing and detailing efforts and offer physicians a range of convenient interactive channels.• Aventis is one of the well known companies that is pioneer with this new concept. Information Technology.FSG 47
  48. 48. The Banking SectorInformation Technology.FSG 48
  49. 49. M-Commerce Value Content Aggregation Design and Operation of ServiceChain Portals, search facilities, etc. User Applications Banking, Purchasing, SMS, News, Entertainment/Games, etc. Personalization Support End-User information mgmt., profiling and more effective targeted sales Presentation Services Content conversion, Suitability for small & low resolution screens in mobile phones Transaction Support Increasing Value Proposition Payments, Billing, Alerts, 2-sided payments flow, Security, & Profitability Basic Services Server hosting, Data Backup, System Integration Information Technology.FSG Transport 49
  50. 50. Key Players….BankingContent Tele-Providers OperatorsBanking Device Vendors Information Technology.FSG 50
  51. 51. The Educational SectorInformation Technology.FSG 51
  52. 52. IT in Education-The Case• In a world that is increasingly knowledge based, new information technologies provide and economical way of providing the continuous education that is needed.• IT enables a shift toward learning experiences that are asynchronous rather than synchronous.• Modern technology makes it cost effective to reach new students cost effectively. IT offers economies of scale. After a(sometimes large) front-end investment, the cost of usage per incremental student is apt to be low. Moreover, access to very large amounts of information can be obtained at low incremental costs.• It eases the limits of time and space for education activities. Access to lecturers and courses through IT is particularly important for the increasing number of non-traditional students in higher education, with often jobs and family to attend to. Information Technology.FSG 52
  53. 53. IT in Education-Current Situation• Due to rapid changes in business and industry, re-skilling is becoming an important requirement.• Life long learning is becoming a necessity.• External vocational training is provided by private sector companies. Business and others are turning to these institutions to meet their needs.• Development issues are increasingly becoming a partnership between the private sector.• Residential costs are an inhibiting factor for many. IT makes it possible to address this factor.• Increasing demand for learning from non-traditional sector.• Collaboration is now a must as no one person can have all the skills and competencies needed in todays high performance workplace. Information Technology.FSG 53
  54. 54. IT in Education-What should Institutions do?• Make a concerted effort to reach the ”new” consumers-life long learners, knowledge workers, etc.• Enable flexibility in terms of what, where and how.• Increase productivity-faculty and student alike.• Respond to a new definition of quality.• Redefine traditional structures and approaches to serve society in the information age and capitalise on the opportunities present.• Manage and control the shift from campus-centric to a consumer-centric model.• Create and develop well defined market niches which are profitable and sustainable. Information Technology.FSG 54
  55. 55. IT in Education-Development of Value Proposition Served marketsContent- Systemsadaptation Design/Technology Functionality and specification integrationCustomer-perceived Efficiency / Relative quality functionality relative (Functionality) to customer demand Relative value Relative Market share Reduced cost Penet ration Relative price (Higher) Relative cost (Lower) Results Information Technology.FSG 55
  56. 56. IT in Education-What we offer• Systems Analyses-development of the project, identify the stakeholders and project perspective.• Provide the Learning Management System and the delivery mechanism for the courses.• Assist with the design/pedagogic aspect of the system.• Assist and provide training for the learners. Information Technology.FSG 56
  57. 57. The Hotel SectorInformation Technology.FSG 57
  58. 58. Travel Industry• Between 1998-2003, revenue forecast to grow by 800%. i.e. $2,2b-16b (Jupiter)• Air Segment is responsible for 80%.• Hotel Booking is 25%.• 2003 Hotel Booking will reach 35%• This is some $11 billion in monetary terms.• Visits to travel related sites has grown from 150 million in 1998 to reach 400 million in 2002 Information Technology.FSG 58
  59. 59. Travel Sites Visited by Online Consumers Cruise Car Rental Supplier Hotel Supplier Online Agency Airline Supplier 0 20 40 60 80 % Source Juipter Communication May 2000Information Technology.FSG 59
  60. 60. Services used at Travel Related Sites Researching Cruise Package Deciding w here to goResearching Hotel Rates & Info Researching Airline Ticket 0 10 20 30 40 50 60 70 80 % Source Juipter Communication May 2001 Information Technology.FSG 60
  61. 61. Implications-Strategic• Internet Reservations through own branded websites• Reservations from Intermediary travel sites will continue to grow until 2003 (Why?)• Reducing the cost of distribution is the key driving hotels to the internet• Not unusual for 15-20% of Total Value Booking• “Look-to-book” ratio is very important to assessing the real impact of e-commerce. Information Technology.FSG 61
  62. 62. “Look- to- Book”• 6,7 million Americans actually made a booking online.• 33,8 millions made travel planning on the internet.• What is the ratio?• Does it suggest the impact of e-commerce greater or less on the lodging industry? Information Technology.FSG 62
  63. 63. Why Does a Hotel Need a Website?• Competition• Advertising and Publicity• 24 hour exposure• Exclusiveness• Specialized Marketing• Highly Desirable Markets• Easy update• Added value Service• The Smart Money Information Technology.FSG 63
  64. 64. Hotel Distribution Channels • Internet impact both existing channels and via entirely new onesGDS Environment Hotel Travel CRO Switch GDS Consumer Agent Hotel Travel Switch GDS Consumer CRO Agent Int Environment Hotel Switch GDS Consumer CRO Hotel CRO Switch Consumer Hotel Consumer CRO Information Technology.FSG 64
  65. 65. Deductions• Internet users invited to visit travel sites containing hotel information and booking capability created or service by a variety of hotel, intermediary and destination companies• Internet reservations come via traditional GDS and Internet only channels, flowing through the CRS• Internet reservations are delivered direct-to-property via internet connections, email or even Telex• Voice centres are processing bookings for which the research and buying decisions were made on travel websites• Some percentage of walk ins learned about the property via the internet. Information Technology.FSG 65
  66. 66. The Present Situation Internet Users WebSites with HotelsCommercial Reps Chains TI GDS Sites Commercial Switch Sites Chains Independent Independent Chain Chain Chain Information Technology.FSG 66
  67. 67. Explanations• Hotel chains sponsor their own branded internet sites, and also provide their properties status to other sites via intermediary. Mainly Pegasus and Wizcom (Switch companies)• GDS company Sabre sponsors and provides data and looking capability to its own site• is both a representation and a reservation-systems solution company.• Switch and ADS companies also operate their own sites (www. Information Technology.FSG 67
  68. 68. What makes a Good Website  The site must cater to the audience  Website does not exists in isolation  Not an online brochure  24/7 Sales and Marketing Tool  MUST have a Booking Engine  Think bandwidthInformation Technology.FSG 68
  69. 69. What makes a Good Website-Things not do  Frames, or heavy JPEGs  Hide the Booking Engine  No bookable hotel packages  No customer e-mail capture  Not easy to find on the web  Incomplete key words Information Technology.FSG 69
  70. 70. What makes a Good Website- Good Planning Customer focused User Friendly Easy to navigateInformation Technology.FSG 70
  71. 71. Promoting your Site  Meta tags  Key Words  Search Engine Submission  Sign up for key  Affiliate Marketing  Collateral Promotion  TrackInformation Technology.FSG 71
  72. 72. E-Commerce for Competitive AdvantageInformation Technology.FSG 72
  73. 73. Introduction • Determine your current position • Born on the internet? • Move to the internet? • Virtual Organisation?Information Technology.FSG 73
  74. 74. Pillars of Success-I –Moving to the Net• Technology: • Market• Internet • Branding (implications)• Intranet • Relationship• Extranet Management(implications)• ERP • Same Target market• Datawarehouse • Has core marketspace moved? • Market Growth and Segmentation Information Technology.FSG 74
  75. 75. Pillars of Success-II-Moving on to the Net• Service: • Brand• Expectations of new service • Strong Brand dot com level • Basis of brand• New value proposition • Same Target market• Reasses your service value • Challenges chain • Amenendment or complete new service provision • Will existing brand change Information Technology.FSG 75
  76. 76. Pillars of Success-Above All • Leadership • Infrastructure • Organisational LearningInformation Technology.FSG 76
  77. 77. Internet MarketingInformation Technology.FSG 77
  78. 78. Introduction-Internet Marketing What is Internet Marketing: …process of building and maintaining customer relationships through online activities.Information Technology.FSG 78
  79. 79. The Process Unlocking Value Identifying Unment and underserved Needs Identify Target Market Company Resources Assess Competitive and Technology Opportunites Make go/ No-go AssessmentInformation Technology.FSG 79
  80. 80. Unlocking Value ….means creating value, unlocking value Trapped value-more efficient value systems-easy information, efficient booking systems New Value-customise offering, build community, introduce new functionalityInformation Technology.FSG 80
  81. 81. Identifying Unmet and /or Underserved Needs Customer Decision Process What steps does a typical customer go through? Who gets involved and what roles do they play? Customer Decision Process Experience of the customer in each stageInformation Technology.FSG 81
  82. 82. Determing Target Market Demographic Geographic BehaviouralInformation Technology.FSG 82
  83. 83. Determing Target Market -cont Occassional (situational) Psychographics Benefits Beliefs and attitudesInformation Technology.FSG 83
  84. 84. Actionable and Meaningful SegmentsActionable SegmentationEasy to identifyEasily reachedCan be described in terms of growth,size profile attractivenessInformation Technology.FSG 84
  85. 85. Meaningful SegmentsMeaningful SegmentationBehave similarly, while customers across segmentsbehave in different waysProvides insights into motivationCorresponds to a set of barriers customers face whenthey buy or use the product or serviceDifferences is large enough to warrant a different set ofactions by your company. Information Technology.FSG 85
  86. 86. Company ResourcesResource System….discrete collection of individuals and organizationalactivities and assets that, when taken together, createorgainsational capabilitiesCustomer-Facing-brand name, well trained sales force,and multiple distribution channelsInternal-technology, product development, economies ofscale.Upstream-relationships, partnerships Information Technology.FSG 86
  87. 87. The Impact of the Internet on Porter’s Five Forces Risk of Entry by Potential Competitors •Enabling technology, barriers to entry go down •New Market entrants can acquire technology easily •High technology costs and expertise increases barriers to entryBargaining Power Rivalry Among Bargaining Power of suppliers Established Competitors of Buyers •Direct connection to customers; minimizes supplie’s bargaining •Internet minimizes ability to •Reduces bargaining power of power. product differentiate. Less channels •Suppliers can access en-users differentiation means more •Consumers have information through the internet, minimizing competition over price. and ability to search for better the need for middlepersons. •Differentiation becomes more •Low barriers to entry open deals difficult as access to suppliers is markets to heavier •Decrease switching costs equalized. competition. •Fewer barriers to entry result in •Variable costs decrease as increased buyer competition thus percentage of fixed costs, boosting supplier bargaining leaving price discounting as power. primary method of competition. Threat of Substitute Products Especially for internet related products Internet has introduced new business methodologies-addingInformation Technology.FSG additional products 87
  88. 88. Creating Competitive Advantages E-Marketing Strategy Positioning and target market selection Marketing Tactics(4Ps) Performance Outcomes Distinctive Competencies Competitive Advantages Satisfaction Superior skills Superior customer value Loyalty Superior resources Low cost producer Market Share Profitability Investment to Create and Sustain AdvantageInformation Technology.FSG 88
  89. 89. Our Information Kizuki Group. Kongens Gate 24. 0153 Oslo. Norway. Kizuki Group. Kongens Gate 24. 0153 Oslo. Norway. Tel: 47 24 14 99 53/ 47 916 88 270. Fax: 47 24 14 99 98. Tel: 47 24 14 99 53/ 47 916 88 270. Fax: 47 24 14 99 98. ePost: ePost: Represented in Represented in South Africa South Africa Nigeria, Nigeria, Cameroon, Cameroon, Ghana, Ghana, Sierra Leone Sierra Leone Information Technology.FSG 89