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11/02/2016
1
Digital	
  Business
2015-­‐2016
E-­‐business	
  &	
  e-­‐commerce
1st	
  Master	
  HEC-­‐Ulg
André	
  Blavier
1
1. Introduction	
   to	
  the	
  course.
Tools	
  for	
  your	
  technology	
  watch.
2. Introduction	
   to	
  the	
  digital	
  transformation.
Data,	
  Cloud,	
  Social,	
  mobile,	
  GAFA,	
  NATU,	
  Giga	
  economy,	
  …
3. The	
  digital	
  platform.
Web	
  standards,	
  API,	
  apps,	
  cloud	
  based,	
  (big)	
  (open)	
  data,	
  …
4. E-­‐business	
  &	
  digital	
  marketing.
SEM	
  &	
  content,	
  permission,	
  social,	
  mobile,	
  …
5. Digital	
  business.
Your	
  company	
  facing	
  the	
  digital	
  disruption,	
  …
6. Perspectives	
  from	
  the	
  algorithmic	
  world.
Focus	
  on	
  the	
  media	
  sector	
  and	
  the	
  industry	
  4.0,	
  …
2
Table	
  of	
  content	
  (subject	
  to	
  changes	
  …)
11/02/2016
2
3Source	
  :	
  www.statista.com/statistics/379046/worldwide-­‐retail-­‐e-­‐commerce-­‐sales
Retail	
  e-­‐commerce	
  sales	
  worldwide
2013	
  to	
  2018	
  (in	
  $	
  trillion)
1. Ubiquity.	
  Internet	
  and	
  Web	
  technologies	
  are	
  available	
  
everywhere	
  (work,	
  home,	
  street,	
  …)	
  at	
  anytime.	
  The	
  
marketplace	
  is	
  extended	
  beyond	
  traditional	
  boundaries	
  and	
  is	
  
removed	
  from	
  a	
  temporal	
  and	
  geographic	
  location.	
  We	
  are	
  now	
  
inside	
  a	
  “marketspace”.	
  Shopping	
  and	
  marketing	
  can	
  take	
  place	
  
anywhere.	
  Customer	
  convenience	
  is	
  enhanced,	
  and	
  shopping	
  
cost	
  are	
  reduced.
2. Global	
  Reach.	
  Commerce	
  is	
  enabled	
  across	
  cultural	
  and	
  national	
  
boundaries	
  seamlessly	
  and	
  without	
  modification.	
  The	
  
“marketspace”	
  includes	
  potentially	
  billions	
  of	
  customers	
  and	
  
millions	
  of	
  businesses	
  worldwide.	
  
4Adapted	
  from	
  “E-­‐commerce	
  2013”	
  by	
  	
  Laudon	
  &	
  Traver (Pearson)
Digital	
  business	
  &	
  marketing	
  (1)
11/02/2016
3
3. Universal	
  standards.	
  There	
  is	
  one	
  set	
  of	
  technology	
  
(Internet/Web)	
  standards	
  that	
  can	
  be	
  used	
  as	
  a	
  common,	
  
inexpensive	
  and	
  global	
  technology	
  foundation	
  for	
  digital	
  
marketing	
  and	
  business.
4. Richness.	
  Video,	
  audio,	
  text,	
  social,	
  mobile,	
  augmented	
  reality,	
  
…	
  technologies	
  are	
  now	
  integrated	
  into	
  a	
  single	
  but	
  
multichannel	
  marketing	
  message	
  and	
  consuming	
  experience.
5. Interactivity.	
  (Social)	
  Technologies	
  have	
  made	
  interaction	
  more	
  
important	
  than	
  ever.	
  Consumers	
  are	
  engaged	
  in	
  a	
  dialog	
  that	
  
dynamically	
  adjusts	
  the	
  experience	
  to	
  the	
  individual,	
  and	
  makes	
  
the	
  consumer	
  a	
  co-­‐participant	
  in	
  the	
  marketing	
  message	
  and	
  the	
  
business	
  process.
5Adapted	
  from	
  “E-­‐commerce	
  2013”	
  by	
  	
  Laudon	
  &	
  Traver (Pearson)
Digital	
  business	
  &	
  marketing	
  (2)
6. Information	
  density.	
  Information	
  processing,	
  storage	
  and	
  
communication	
  costs	
  drop	
  dramatically.	
  Information	
  becomes	
  
plentiful,	
  cheap	
  and	
  more	
  accurate.	
  Data	
  enable	
  companies	
  to	
  
identify	
  new	
  trends	
  “faster	
  than	
  real	
  time”.
7. Personalization.	
  Algorithms	
  and	
  analytics	
  tools	
  connected	
  to	
  Big	
  
Data	
  resources	
  make	
  possible	
  a	
  “one	
  to	
  one”	
  and	
  “real	
  time”	
  
communication.	
  Customization	
  is	
  based	
  on	
  individual	
  
characteristics.	
  With	
  3D	
  printing,	
  consumers	
  will	
  create	
  and	
  
produce	
  their	
  own	
  products.	
  
8. Desintermediation.	
  Crowdsourced	
  content	
  and	
  social	
  networks	
  
have	
  changed	
  the	
  game.	
  Empowered	
  by	
  cloud	
  computing,	
  data	
  
and	
  mobile	
  technologies,	
  new	
  disruptive	
  models	
  are	
  emerging	
  
(sharing	
  economy).	
  
6Adapted	
  from	
  “E-­‐commerce	
  2013”	
  by	
  	
  Laudon	
  &	
  Traver (Pearson)
Digital	
  business	
  &	
  marketing	
  (3)
11/02/2016
4
Virtual	
  =	
  Physical	
  !
The	
  key	
  trend	
  in	
  digital	
  business	
  &	
  marketing	
  is
a	
  seamless	
  and	
  optimized	
  integration
of	
  all	
  digital	
  and	
  physical	
  marketing	
  channels,
within	
  a	
  strategy	
  based	
  primarily	
  on	
  content.
7
8
E-­‐Business (electronic	
  business).	
  Any	
  process	
  that	
  a	
  business	
  
organization	
  conducts	
  over	
  a	
  computer-­‐mediated	
  network.	
  
Business	
  organizations	
  include	
  any	
  for-­‐profit,	
  governmental,	
  or	
  
nonprofit	
  entity.	
  Their	
  processes	
  include	
  production-­‐,	
  customer-­‐,	
  
and	
  internal-­‐ or	
  management-­‐focused	
  business	
  processes.
Source :	
  www.gartner.com
E-­‐commerce	
  (electronic	
  commerce).	
  The	
  trading	
  or	
  facilitation	
  of	
  
trading	
  in	
  products	
  or	
  services	
  using	
  the	
  Internet.	
  E-­‐commerce	
  
draws	
  on	
  technologies	
  such	
  as	
  mobile	
  commerce,	
  electronic	
  funds	
  
transfer,	
  supply	
  chain	
  management,	
  Internet	
  marketing,	
  online	
  
transaction	
  processing,	
  electronic	
  data	
  interchange	
  (EDI),	
  inventory	
  
management	
  systems,	
  and	
  automated	
  data	
  collection	
  systems.
https://en.wikipedia.org/wiki/E-­‐commerce
11/02/2016
5
9
Digital	
  business.	
  The	
  creation	
  of	
  new	
  business	
  designs	
  by	
  blurring	
  
the	
  digital	
  and	
  physical	
  worlds.
Source :	
  www.gartner.com
Digital	
  commerce.	
  The	
  buying	
  and	
  selling	
  of	
  goods	
  and	
  services	
  
using	
  the	
  Internet,	
  mobile	
  networks	
  and	
  commerce	
  infrastructure.	
  
It	
  includes	
  the	
  marketing	
  activities	
  that	
  support	
  these	
  transactions,	
  
including	
  people,	
  processes	
  and	
  technologies	
  to	
  execute	
  the	
  
offering	
  of	
  development	
  content,	
  analytics,	
  promotion,	
  pricing,	
  
customer	
  acquisition	
  and	
  retention,	
  and	
  customer	
  experience	
  at	
  all	
  
touchpoints	
  throughout	
  the	
  customer	
  buying	
  journey.
Source	
  :	
  www.gartner.com
1. Value	
  proposition.
2. Revenue	
  model.
3. Market	
  opportunity.
4. Competitive	
  environment.
5. Competitive	
  advantage.
6. Market	
  strategy.
10Adapted	
  from	
  Pearson	
  Education
Business	
  Model.	
  Key	
  elements
11/02/2016
6
Why	
  should	
   the	
  customer	
  buy	
  from	
  you?
Examples	
  of	
  successful	
  e-­‐commerce	
  value	
  propositions	
   :
• personalization/customization,
• lower	
  price	
  or/and	
  price	
  discovery	
  costs,
• “buy	
  from	
  home”,
• Better/larger/easier	
  product	
  search,
• facilitation	
  of	
  transactions	
  by	
  managing	
  product	
  delivery.
11Adapted from Pearson	
  Education
1.	
  Value	
  Proposition
12
bike24.net	
  ><	
  xxcycle.com
11/02/2016
7
How	
  will	
  the	
  firm	
  earn	
  revenue,	
  generate	
  profits,	
  and	
  produce	
  a	
  
superior	
  return	
  on	
  invested	
  capital?
Major	
  types:
• advertising	
  (Google),
• subscription	
  (www.lesoir.be),
• transaction	
  fee	
  (eBay),
• sales	
  (www.quatuor.be),
• affiliate	
  (Amazon	
  marketplace,	
  www.venteprivee.com,	
  …).
13Adapted from Pearson	
  Education
2.	
  Revenue	
  model
14
Pricing.	
  Set	
  of	
  practices	
  and	
  tools	
  that	
  allows	
  to	
  set	
  a	
  price	
  at	
  a	
  
given	
  time	
  in	
  order	
  to	
  maximize	
  sales	
  and	
  margins	
  of	
  a	
  product.	
  
This	
  price	
  is	
  the	
  matching	
  of	
  supply	
  and	
  demand,	
  and	
  the	
  amount	
  
a	
  customer	
  is	
  ready	
  to	
  pay	
  for	
  a	
  good	
  or	
  service.
11/02/2016
8
15
www.alexa.com
Harness	
  the	
  power	
  of	
  analytics	
  to	
  grow	
  your	
  
business	
  online.	
  Alexa	
  has	
  traffic	
  metrics	
  across	
  
the	
  web	
  :	
  an	
  invaluable	
  source	
  for	
  competitive	
  
intelligence	
  and	
  strategic	
  insight.
16
www.pricingassistant.com
PricingAssistant helps	
  online	
  stores	
  and	
  
brands	
  maximize	
  their	
  profits	
  with	
  our	
  
competition	
  monitoring	
  tool.
11/02/2016
9
• What	
  marketspace	
  do	
  you	
  intend	
  to	
  serve	
  and	
  what	
  is	
  its	
  size?
• Marketspace	
  :	
  area	
  of	
  actual	
  or	
  potential	
  commercial	
  value	
  in	
  
which	
  company	
  intends	
  to	
  operate.
• Realistic	
  market	
  opportunity	
   :	
  defined	
  by	
  revenue	
  potential	
  in	
  
each	
  market	
  niche	
  in	
  which	
  company	
  hopes	
  to	
  compete.
17Adapted from Pearson	
  Education
3.	
  Market	
  Opportunity
18
www.sellerie-­‐online.fr
Wholesaler	
  of	
  equipment	
  for	
  horse	
  riding	
  with	
  a	
  traditional	
  
distribution	
  network	
  in	
  Belgium.	
  The	
  entrepreneur	
  believes	
  
that	
  e-­‐commerce	
  is	
  an	
  opportunity	
  and	
  begins	
  to	
  start	
  a	
  
shop	
  on	
  eBay.	
  The	
  result	
  is	
  positive.	
  He	
  started	
  a	
  real	
  online	
  
store,	
  only	
  in	
  France	
  (to	
  protect	
  its	
  distribution	
  network	
  in	
  
Belgium).	
  Marketing	
  is	
  mainly	
  through	
  the	
  network	
  of	
  horse	
  
stables	
  to	
  reach	
  parents	
  having	
  to	
  equip	
  their	
  children	
  for	
  
horse	
  riding	
  (community).
11/02/2016
10
19
www.9bulles.be
A	
  future	
  young	
  mother	
  does	
  not	
  find	
  “cool”	
  clothes	
  
for	
  pregnant	
  women.	
  After	
  the	
  birth	
  of	
  her	
  second	
  
child,	
  she	
  decided	
  to	
  quit	
  her	
  job	
  to	
  launch	
  an	
  
specialized	
  online	
  store,	
  without	
  physical	
  shop,	
  but	
  
with	
  a	
  strong	
  teasing	
  6	
  months	
  in	
  advance	
  on	
  
Facebook.	
  She	
  opens	
  now	
  a	
  second	
  physical	
  shop.
Who	
  else	
  occupies	
  your	
  intended	
   marketspace?	
  Other	
  companies	
  
selling	
  similar	
  products	
  in	
  the	
  same	
  marketspace.
Includes	
  both	
  direct	
  and	
  indirect	
  competitors.	
  Influenced	
  by	
  :
• number	
  and	
  size	
  of	
  active	
  competitors,
• each	
  competitor’s	
  market	
  share,
• competitors’	
  profitability,
• competitors’	
  pricing.
20Adapted from Pearson	
  Education
4.	
  Competitive	
  Environment
11/02/2016
11
21
Want to	
  buysocks online	
  ?
What is your business	
  model	
  ?
Achieved	
  when	
  a	
  firm	
  :
• produces	
  superior	
  product,
• can	
  bring	
  product	
  to	
  market	
  at	
  lower	
  price	
  than	
  competitors.
Important	
  concepts	
  :
• asymmetries	
  (when	
  iTunes	
  was	
  launched,	
  Spotify),
• first-­‐mover	
  advantage	
  (Netflix,	
  Facebook,	
  Newpharma.be),
• unfair	
  competitive	
  advantage	
  (brands),
• leverage	
  (Amazon).
22Adapted from Pearson	
  Education
5.	
  Competitive	
  Advantage
11/02/2016
12
23
Netflix …
Netflix	
  has	
  a	
  strong	
  “first	
  mover”	
  
advantage	
  and	
  positions	
  itself	
  as	
  a	
  
“disintermediation”	
  service,	
  disrupting	
  
the	
  business	
  model	
  of	
  the	
  “old”	
  TV	
  
content	
  providers.	
  The	
  platform	
  is	
  also	
  
simple	
  and	
  the	
  pricing	
  is	
  great.
But	
  …
24
popcorntime-­‐online.io
…	
  Netflix	
  has	
  already	
  to	
  face	
  new	
  
challengers	
  offering	
  the	
  same	
  services	
  
for	
  …	
  free,	
  like	
  Popcorntime.	
  …	
  Of	
  
course,	
  don’t	
  tell	
  anybody	
  about	
  it	
  ;-­‐)
11/02/2016
13
25
Newpharma.be
When	
  Europe	
  authorized	
  the	
  sale	
  of	
  “without	
  prescription”	
  
drugs	
  on	
  the	
  Internet,	
  member	
   states	
  had	
  to	
  adapt	
  their	
  
national	
  legislation.	
  The	
  day	
  of	
  publication	
  of	
  the	
  law	
  in	
  
Belgium,	
  Newpharma was	
  online	
  supported	
  by	
  a	
  good	
  
digital	
  marketing	
  campaign.	
  Initially,	
  it’s	
  a	
  classic	
  drugstore	
  
whose	
  owner	
  has	
  done	
  a	
  great	
  watch	
  about	
  e-­‐commerce	
  
opportunities	
  and	
  the	
  publication	
  of	
  the	
  law.	
  Currently,	
  the	
  
site	
  generates	
  a	
  turnover	
  equivalent	
  to	
  more	
  than	
  7	
  
“classic”	
  drugstores,	
  selling	
  its	
  products	
  all	
  over	
  Europe.
26
www.lesnouveauxateliers.com
Tailored	
  (made	
  to	
  measure)	
  suits.	
  Digital	
  in	
  
store	
  :	
  enter	
  the	
  3D	
  measuring	
  cabin.	
  In	
  
600	
  milliseconds,	
  200	
  body	
  measurements	
  
are	
  collected	
  through	
  a	
  camera.
11/02/2016
14
• How	
  do	
  you	
  plan	
  to	
  promote	
  your	
  products	
   or	
  services	
  to	
  attract	
  
your	
  target	
  audience	
  ?	
  Details	
  how	
  a	
  company	
  intends	
  to	
  enter	
  
market	
  and	
  attract	
  customers.
• Best	
  business	
  concepts	
  will	
  fail	
  if	
  not	
  properly	
  marketed	
  to	
  
potential	
  customers.
• Apple,	
  www.tripy.eu,	
  www.archiduchesse.com,	
  
www.leslipfrancais.fr,	
  www.1083.fr,	
  etc.
27Adapted from Pearson	
  Education
6.	
  Market	
  Strategy
28
1083.fr
Jeans	
  …	
  made	
  in	
  France.	
  1083	
  =	
  1083	
  
kilometers,	
  or	
  the	
  longest	
  distance	
  
between	
  two	
  places	
  in	
  France	
  …
11/02/2016
15
29
www.leslipfrancais.fr
Also	
  a	
  successful	
  “made	
  in	
  France”	
  
model.	
  They	
  started	
  as	
  a	
  pure	
  player.	
  
Now	
  they	
  have	
  a	
  real	
  shop	
  in	
  Paris.
No	
  “one”	
  correct	
  way.	
  Business	
  models	
  according	
  to	
  :
• e-­‐commerce	
  sector	
  (B2C,	
  B2B,	
  C2C),
• type	
  of	
  e-­‐commerce	
  technology	
  (m-­‐commerce).
Similar	
  business	
  models	
  appear	
  in	
  more	
  than	
  one	
  sector	
  
(www.etilux.be	
  in	
  B2B	
  =	
  www.quatuor.be	
  in	
  B2C).
Some	
  companies	
  use	
  multiple	
  business	
  models	
  :
• eBay	
  :	
  B2C,	
  C2C,
• Amazon	
  :	
  B2C,	
  B2B2C,	
  B2B.
30Adapted from Pearson	
  Education
E-­‐commerce	
  models
11/02/2016
16
• Portal.	
  Search	
  plus	
  an	
  integrated	
  package	
  of	
  content	
  and	
  services	
  
(advertising,	
  fees,	
  subscriptions,	
  etc.).	
  Horizontal	
  or	
  general.	
  
Vertical	
  or	
  specialized.	
  Pure	
  Search.	
  Google,	
  news	
  Websites,	
  
Facebook,	
  etc.
• E-­‐tailer.	
  Online	
  version	
  of	
  traditional	
  retailer.	
  Low	
  barriers	
  to	
  
entry	
  (sales).	
  Virtual	
  merchant	
  (Amazon,	
  iTunes),	
  bricks-­‐and-­‐clicks	
  
(Vandenborre,	
  Fnac),	
  catalog	
  merchant	
  (LaRedoute),	
  
manufacturer-­‐direct	
  (Dell).
• Content	
  provider.	
   Digital	
  content	
  on	
  the	
  Web	
  :	
  news,	
  music,	
  
video	
  (subscription,	
  pay	
  per	
  download,	
  advertising,	
  affiliate	
  
referral	
  fees).	
  Content	
  owners,	
  syndication,	
  Web	
  aggregators.
Belga,	
  Spotify,	
  Netflix,	
  iTunes,	
  News	
  Websites,	
  etc.
31Adapted from Pearson	
  Education
B2C	
  models	
  (1)
• Transaction	
  broker.	
  Process	
  online	
  transactions	
  for	
  consumers.	
  
Saving	
  time	
  and	
  money	
  (transaction	
  fees).	
  Financial	
  services,	
  
travel	
  services,	
  job	
  placement	
  services.	
  Booking.com,	
  
zonebourse.com,	
  references.be,	
  odesk.com.
• Market	
  creator.	
  Create	
  digital	
  environment	
  where	
  buyers	
  and	
  
sellers	
  can	
  meet	
  and	
  transact	
  (fees).	
  EBay,	
  quefaire.be,
etsy.com,	
  etc.
• Service	
  provider.	
   Online	
  services.	
  Valuable,	
  convenient,	
  time-­‐
saving,	
  low-­‐cost	
  alternatives	
  to	
  traditional	
  service	
  providers
(sales	
  of	
  services	
  and	
  data,	
  fees,	
  advertising).	
  Dropbox,	
  Evernote,	
  
Google	
  (Gmail,	
  Maps,	
  docs,	
  etc.).
• Community	
  provider.	
  Provide	
  online	
  environment	
  where	
  people	
  
can	
  transact,	
  share	
  content,	
  and	
  communicate	
  	
  (advertising,	
  
subscriptions,	
  sales,	
  fees).	
  Facebook,	
  LinkedIn,	
  Twitter.
32Adapted from Pearson	
  Education
B2C	
  models	
  (2)
11/02/2016
17
33
www.vinted.com
Sell,	
  swap,	
  buy,	
  or	
  give	
  away	
  your	
  pre-­‐loved	
  
clothes,	
  shoes,	
  or	
  accessories	
  and	
  make	
  
friends	
  in	
  the	
  Vinted community!
C2B2C	
  !
• E-­‐distributor.	
  Version	
  of	
  retail	
  and	
  wholesale	
  store.	
  One	
  company	
  
seeking	
  to	
  serve	
  many	
  customers	
  (sales	
  of	
  goods).	
  www.etilux.be,	
  
www.ksl.eu.
• E-­‐procurement.	
  Creates	
  digital	
  markets	
  where	
  participants	
  
transact	
  for	
  indirect	
  goods	
  (fees,	
  SCM,	
  fulfilment	
  services).
www.publicprocurement.be.
• Marketplaces	
  &	
  exchanges.	
  Independent	
  vertical	
  digital	
  
marketplace	
  for	
  direct	
  inputs.	
  Create	
  powerful	
  competition	
  
between	
  suppliers	
  (transaction,	
  fees).	
  www.companeo.be,	
  
www.auctelia.com.
• Industry	
  Consortium.	
   Industry-­‐owned	
  vertical	
  digital	
  marketplace	
  
open	
  to	
  select	
  suppliers	
  (transactions,	
  fees).
34Adapted from Pearson	
  Education
B2B	
  models
11/02/2016
18
35
www.auctelia.com
B2B2B	
  platform	
  !
1. Establish	
  a	
  Cross-­‐Functional	
   Strategy	
  Team.	
  Involve	
  other	
  
business	
  units	
  such	
  as	
  marketing,	
  sales,	
  finance,	
  operations,	
  
supply	
  chain	
  and	
  customer	
  services	
  from	
  the	
  very	
  beginning	
  of	
  
the	
  process.
2. Set	
  Digital	
  Commerce	
  Objectives.	
  Start	
  by	
  envisioning	
  the	
  type	
  
of	
  digital	
  commerce	
  service	
  you	
  want	
  to	
  offer.	
  Secondly,	
  look	
  at	
  
the	
  business	
  motivations	
  for	
  deploying	
  digital	
  commerce	
  
services.	
  Lastly,	
  define	
  the	
  KPIs	
  that	
  correspond	
  to	
  business	
  
goals.
3. Take	
  Stock	
  of	
  Existing	
  Assets	
  and	
  Resources.	
  Look	
  at	
  the	
  
existing	
  assets	
  and	
  resources	
  that	
  will	
  impact	
  project	
  delivery	
  
and	
  performance.	
  Companies	
  that	
  are	
  starting	
  from	
  scratch	
  or	
  
looking	
  to	
  upgrade	
  the	
  existing	
  platform	
  should	
  take	
  stock	
  of	
  
the	
  digital	
  commerce	
  assets.
36Adapted from Pearson	
  Education
A	
  digital	
  commerce	
  strategy	
  in	
  7	
  steps	
  (1)
11/02/2016
19
37Source	
  :	
  Gartner
Digital	
  commerce	
  project	
  :	
  sample	
  KPIs	
  
Step	
  Objective Goal KPI Target
Acquire	
  more
customers
Increase	
  site	
  traffic
Site	
  traffic
Unique	
  visitors
15%	
  YOY	
  increase
Increase	
  customer	
  
conversion
Conversion	
  rate	
  20% YOY	
  increase
Increase	
  revenue
per	
  customer
Increase	
  average	
  order	
  
value	
  (AOV)
AOV More	
  than	
  $120
Reduce	
  cart	
  
abandonment	
  rate
Cart	
  abandonment	
  rate Less	
  than	
  70%
Increase	
  customer
loyalty
Increase	
  customer	
  
activity
Active-­‐customer	
  
percentage
(made	
  purchase	
  in	
  the	
  
last	
  three	
  months)
More	
  than	
  30%
Increase	
  repeat	
  
purchases
Repeat	
  purchases	
  per	
  
customer
10%	
  increase	
  by	
  June
16
Increase	
  customer	
  
rating
Average	
  rating 15%	
  increase
4. Analyze	
  the	
  Business	
  Case.	
  Define	
  the	
  Project	
  Scope.
• Business	
  models	
  (B2C,	
  B2B,	
  …).
• Products	
  and	
  services.	
  Which	
  product	
  categories	
  shall	
  we	
  
include?
• Markets.	
  Which	
  regions/markets	
  shall	
  we	
  cover?	
  Shall	
  we	
  
offer	
  multichannel	
  experience	
  to	
  our	
  existing	
  markets,	
  or	
  shall	
  
we	
  use	
  online	
  channel	
  to	
  reach	
  new	
  markets?	
  …
• Industry	
  segments	
  (B2B	
  only).	
  What	
  industry	
  segments	
  shall	
  
we	
  target?
• Channels.	
  Stand-­‐alone	
  sites	
  ?	
  Marketplaces	
  ?	
  Retail	
  stores	
  ?	
  
Mobile	
  commerce	
  ?	
  Social	
  networks	
  ?
• Time	
  to	
  market:	
  When	
  to	
  launch	
  the	
  pilot?	
  When	
  to	
  go	
  live?
38Adapted from Pearson	
  Education
A	
  digital	
  commerce	
  strategy	
  in	
  7	
  steps	
  (2)
11/02/2016
20
39Source	
  :	
  Gartner
E-­‐seller
To	
  drive	
  transactions	
  to	
  the	
  digital	
  
platform.	
  Usually	
  lack	
  an	
  extensive	
  
physical	
  presence,	
  but	
  have	
  highly	
  
sophisticated	
  digital	
  platforms	
  for	
  
targeting,	
  personalization	
  and	
  
transaction	
  management.	
  They	
  often	
  
partner	
  with	
  third	
  parties,	
  or	
  operate	
  
an	
  inhouse delivery	
  force	
  to	
  provide	
  
top-­‐notch	
  delivery	
  experience	
  as	
  a	
  
competitive	
  edge.
Brick-­‐and-­‐clicker
To	
  offer	
  a	
  multichannel	
  environment	
  for	
  
engaging	
  customers	
  and	
  driving	
  
transactions.	
  Businesses	
  can	
  be	
  looking	
  to	
  
extend	
  the	
  relationship	
  to	
  digital	
  channels	
  
and	
  transform	
  the	
  role	
  and	
  function	
  of	
  
their	
  physical	
  presence.	
  Startups	
  can	
  use	
  
the	
  multichannel	
  approach	
  to	
  disrupt	
  
established	
  businesses	
  by	
  addressing	
  
customer	
  pain	
  points	
  and	
  improving	
  
service	
  efficiency.
Influencer
To	
  provide	
  information	
  that	
  drives	
  
traffic	
  and	
  relationship	
  to	
  those	
  sites.	
  
Because	
  of	
  the	
  authority	
  influencers	
  
have	
  in	
  providing	
  information	
  and	
  
opinion,	
  or	
  creating	
  extensive
social	
  circles	
  and	
  user-­‐generated	
  
content,	
  they	
  have	
  strong	
  influence	
  
over	
  the	
  customer	
  behavior	
  that	
  can	
  
lead	
  to	
  transactions	
  on	
  their	
  own	
  
sites,	
  as	
  well	
  as	
  for	
  other	
  providers.
Marketer
To	
  engage	
  customers	
  and	
  align	
  
marketing	
  with	
  digital	
  commerce	
  
outcomes	
  using	
  all	
  possible	
  means	
  and	
  
channels.	
  Often	
  organize	
  a	
  high	
  level	
  of	
  
promotional	
  marketing	
  activities	
  and	
  
branding	
  to	
  influence	
  sales	
  on	
  their	
  own	
  
sites	
  or	
  on	
  partners'	
  sites.	
  Promotions,	
  
sponsorships,	
  social	
  marketing	
  and	
  
crowdsourced	
  designs	
  are	
  all	
  part	
  of	
  the	
  
marketer's	
  activities.
High	
  level of	
  digital	
  transactions
Low level of	
  digital	
  transaction
Digital
channels
only
Digital	
  &
physical
channels
5. Design	
  the	
  Customer	
  Experience.	
  By	
  2017,	
  the	
  digital	
  customer	
  
experience	
  will	
  be	
  the	
  key	
  differentiator	
  of	
  your	
  organization.	
  
The	
  standard	
  of	
  digital	
  customer	
  experience	
  continues	
  to	
  
improve	
  because	
  it	
  is	
  a	
  key	
  focal	
  point	
  of	
  innovation	
  initiatives.	
  
Therefore,	
  designing	
  the	
  customer	
  experience	
  is	
  a	
  key	
  step	
  in	
  
the	
  strategy	
  planning	
  process	
  that	
  will	
  impact	
  success	
  of	
  your	
  
digital	
  commerce	
  service.
• Define	
  Target	
  Customers.
• Define	
  the	
  Customer	
  Experience	
  for	
  Key	
  Processes.
• Map	
  the	
  Customer	
  Journey.
40Adapted from Pearson	
  Education
A	
  digital	
  commerce	
  strategy	
  in	
  7	
  steps	
  (3)
11/02/2016
21
6. Make	
  Tactical	
  Decisions	
  to	
  Implement	
  the	
  Digital	
  Commerce	
  
Platform.	
  This	
  step	
  helps	
  the	
  company	
  define	
  the	
  functional	
  
requirements	
  of	
  the	
  technology	
  platform,	
  which	
  can	
  be	
  used	
  to	
  
select	
  the	
  digital	
  commerce	
  vendor.
7. Improve	
  and	
  Refine	
  the	
  Strategy.	
  Install	
  analytics	
  to	
  
continuously	
  monitor	
  the	
  site's	
  performance	
  and	
  overall	
  service.	
  
Three	
  major	
  analytics	
  categories	
  are	
  :
• Web	
  analytics.
• Digital	
  personalization	
  engine	
  analytics.
• Customer	
  journey	
  analytics.
41Adapted from Pearson	
  Education
A	
  digital	
  commerce	
  strategy	
  in	
  7	
  steps	
  (4)
New	
  exiting	
  ways	
  to	
  improve	
  the
user	
  experience	
  in	
  e-­‐commerce.
Sound,	
  quality	
  zooms,	
  360	
  ° views,
configurators	
  /	
  demonstrators,	
  interactive	
  videos,
augmented	
  reality,	
  real	
  time	
  3D,	
  immersive	
  universe,	
  …
42
11/02/2016
22
43
www.reebok.com
Navigation	
  and	
  search	
  
“by	
  colors”	
  on	
  the	
  
Reebok	
  website.
44
www.getwear.com
Every	
  pair	
  of	
  jeans	
  you	
  order	
  is	
  
specially	
  tailored	
  and	
  hand	
  made	
  
for	
  you	
  in	
  two	
  weeks	
  time.
11/02/2016
23
45
www.cupboardyourway.co.uk
We	
  don’t	
  simply	
  produce	
  off-­‐the-­‐peg	
  
cupboards.	
  We	
  have	
  taken	
  up	
  the	
  
cause	
  of	
  manufacturing	
  special	
  
cupboards.	
  Not	
  just	
  any	
  old	
  cupboard	
  
:	
  yours!	
  According	
  to	
  your	
  
specifications	
  and	
  your	
  wishes!	
  
46
www.redfin.com
Redfin 3D	
  Walkthrough™	
  is	
  a	
  feature	
  that	
  lets	
  
home-­‐buyers	
  tour	
  Redfin agent-­‐listed	
  homes	
  
for	
  sale	
  online	
  ,	
  helping	
  people	
  see	
  a	
  high-­‐
resolution	
  view	
  from	
  any	
  angle	
  inside	
  the	
  
home.	
  This	
  immersive	
  experience,	
   powered	
  by	
  
3D	
  technology,	
  helps	
  home-­‐buyers	
  better	
  
decide	
  which	
  homes	
  to	
  tour	
  in	
  person.
11/02/2016
24
47dailymotion.com/video/x1b95ji_exclusive-­‐net-­‐a-­‐porter-­‐launches-­‐shoppable-­‐magazine_lifestyle
www.redfin.com
When	
  a	
  pure	
  player	
  decides	
  to	
  publish	
  a	
  
…	
  paper	
  magazine.	
  But	
  with	
  a	
  specific	
  
mobile	
  app,	
  this	
  magazine	
  suddenly	
  
becomes	
  interactive	
  !
48
Digital	
  commerce
11/02/2016
25
• SoLoMo (Social	
  Local	
  Mobile).	
  Convergence	
  of	
  social	
  networks,
geolocation	
  and/or	
  local	
  business,	
  and	
  mobile	
  devices.
• Intelligence	
  added	
  to	
  location	
  will	
  dictate	
  consumer	
  experiences	
  
on	
  mobile.	
  
• Contextual	
  use	
  of	
  time	
  and	
  social	
  profile	
  will	
  help	
  prioritize	
  
mobile	
  services.	
  
49Source	
  :	
  Gartner
From	
  SoLoMo …
• Omnichannel =	
  Multichannel	
   /	
  Multidevice /	
  Interactions.
• A	
  global	
  experience	
  allowing	
  channels	
  and	
  devices	
  to	
  work	
  in	
  
orchestration.
• Multiple	
  touchpoints	
  increase	
  user	
  engagement	
  and	
  improve	
  
effectiveness	
  of	
  digital	
  business.
• It	
  is	
  not	
  just	
  smartphones	
   and	
  tablets.	
  A	
  Web-­‐centric	
  approach,	
  
using	
  a	
  hybrid	
  model	
  will	
  provide	
  the	
  broadest	
  support	
  for	
  today	
  
and	
  agility	
  for	
  tomorrow.
• Goal	
  :	
  orchestrate	
  the	
  customer	
  journey.
• It’s	
  also	
  the	
  new	
  global	
  technology	
  context	
  for	
  marketing.
• From e-­‐commerce	
  to	
  Connected Commerce	
  !
50Source	
  :	
  Gartner
…	
  to	
  Omnichannel (computing)
11/02/2016
26
51Source	
  :	
  www.thinkwithgoogle.com
Consumers	
  search	
  for	
  a	
  variety
of	
  local	
  information	
  
52Source	
  :	
  www.thinkwithgoogle.com
Consumers	
  act	
  quickly	
  after	
  their	
  local	
  
search	
  
11/02/2016
27
• The	
  consumer	
  uses	
  more	
  and	
  more	
  different	
  offline	
  and	
  online	
  
channels	
  to	
  interact	
  with	
  vendors,	
  to	
  order,	
  buy	
  or	
  seek	
  advices,	
  
before,	
  during	
  and	
  after	
  the	
  purchase.
• He	
  will	
  find	
  a	
  specific	
  product	
  on	
  the	
  Internet,	
  and	
  then	
  identify	
  
online	
  a	
  “physical”	
  shop	
  that	
  sells	
  it,	
  go	
  to	
  this	
  shop	
  to	
  "see	
  and	
  
validate"	
  the	
  product	
  and	
  to	
  get	
  more	
  information,	
  and	
  then,	
  
place	
  the	
  order	
  via	
  ...	
  his	
  smartphone	
  on	
  an	
  online	
  store	
  and,	
  
finally,	
  have	
  the	
  product	
  delivered	
  at	
  home!	
  If	
  the	
  product	
  does	
  
not	
  suit	
  him,	
  he	
  will	
  bring	
  it	
  in	
  a	
  library	
  that	
  offers	
  "relay	
  point"	
  
services	
  ...	
  Where	
  he	
  will	
  maybe	
  pick	
  up	
  another	
  version	
  of	
  the	
  
this	
  product	
  later.
• Frontiers	
  between	
  commerce,	
  e-­‐commerce,	
  m-­‐commerce	
  
disappear.	
  Consumers	
  now	
  have	
  a	
  real	
  "seemless"	
  shopping	
  
experience,	
  from	
  one	
  canal	
  to	
  another.	
  
53
Connected commerce
54Source	
  :	
  www.thinkwithgoogle.com/insights/library/studies/holiday-­‐consumer-­‐intentions-­‐2012
Connected commerce	
  &	
  ROPO
11/02/2016
28
55
In-­‐store	
  :
• Bar	
  code	
  scanning
• Coupons
• Consumer	
   reviews
• In-­‐store	
  navigation
• Shopping	
  lists
(weddings,	
   etc.)
• Loyalty
• Promotions
Competitor store	
  :
• Coupons
• In-­‐store	
  inventory
• Nearest store
• Pricing
• Promotions
At home	
   :
• Coupons
• How-­‐to	
  videos
• In-­‐store	
  inventory
• Research tools
• Shopping	
  list build
• Store	
  hours
• Store	
  location
56
• Change	
  
reservation
• Reserve	
  seats
• View	
  reservation
• Choose	
  food
-­‐ 2	
  days -­‐ 2	
  hours +	
  2	
  hours +	
  2	
  days
• Check	
  gate
• Departure	
   time
• Lounge	
  access
• Upgrade
• Special	
  offers	
  //	
  
profile
• Arrival	
  time
• Food	
  order
• Movies
• Wi-­‐Fi
• Ground	
  
transportation
• Lost	
  luggage
• Navigation
• Customer	
  
services
• Mileage	
  status
• Reward	
  travel
• Upcoming	
  
reservations
Flight
11/02/2016
29
Four	
  Key	
  Moments	
  to	
  be	
  There
Source	
  :	
  www.thinkwithgoogle.com/research-­‐studies/micromoments-­‐guide-­‐pdf-­‐download.html
58www.groupe-­‐casino.fr/fr/Le-­‐Groupe-­‐Casino-­‐premier,4362.html	
   	
  &	
  	
  youtu.be/WdE0UTZlFy4
Casino	
  mobile	
  application
The	
  “2.0”	
  customer	
  has	
  a	
  stronger	
  and	
  
more	
  regular	
  interaction	
  with	
  shops.
It’s	
  the	
  “anywhere,	
  anytime,	
  with	
  any	
  
device	
  shopping“.	
  
The	
  “omni channel"	
  mCasino NFC	
  
application	
  offers	
  personalization,	
  
continuity	
  and	
  fluidity	
  throughout	
  the	
  
shopping	
  experience,	
  on	
  all	
  sales	
  channels.
11/02/2016
30
59
Virtual	
  analyse of	
  the	
  real	
  world
Shopperception analyses	
  
the	
  shopper's	
  behaviour in	
  
front	
  of	
  the	
  shelf,	
  
generating	
  metrics	
  and	
  real	
  
time	
  events	
  to	
  drive	
  more	
  
conversions.
60
Sephora	
  :	
  “Disruptive	
  experiences”
Beacons.	
   Sephora	
  will	
  use	
  Beacons	
  in	
  stores	
  nationwide	
  to	
  deliver	
  
timely,	
  personalized	
  alerts	
  to	
  shoppers	
  who	
  opt-­‐in	
  for	
  offers	
  like	
  
birthday	
  alerts,	
  loyalty	
  program	
  updates	
  and	
  notifications	
  when	
  
new	
  beauty	
  training	
  events	
  are	
  happening	
  in-­‐store.
Augmented	
  Reality. The	
  retailer	
  has	
  an	
  augmented	
  reality	
  
experience	
  for	
  shoppers	
  via	
  the	
  Sephora-­‐To-­‐Go	
  mobile	
  app	
  for	
  
iPhone.	
  Consumers	
  can	
  interact	
  with	
  custom	
  content	
  by	
  hovering	
  
over	
  the	
  faces	
  of	
  nine	
  beauty	
  brand	
  founders	
  that	
  are	
  featured	
  in	
  
Sephora	
  windows	
  and	
  display	
  cases.	
  Scanning	
  each	
  image	
  will	
  
bring	
  up	
  content	
  options	
  such	
  as	
  brand	
  founder	
  interviews,	
  
product	
  videos,	
  YouTube	
  playlists	
  and	
  product	
  pages	
  on.
Source	
  :	
  http://onforb.es/1EuEs34
11/02/2016
31
61
Sephora	
  :	
  “Disruptive	
  experiences”
Source	
  :	
  m.sephora.com/pocketcontour
Pocket	
  Contour.	
  In	
  partnership	
  with	
  Map	
  My	
  Beauty,	
  Sephora	
  will	
  
launch	
  a	
  cross-­‐platform	
  personal	
  virtual	
  make-­‐up	
  artist	
  application	
  
that	
  demystifies	
  contouring,	
  a	
  growing	
  beauty	
  trend.	
  By	
  analyzing	
  a	
  
mobile	
  photo,	
  Sephora	
  can	
  help	
  consumers	
  identify	
  their	
  face	
  shape	
  
and	
  offer	
  personalized	
  step-­‐by-­‐step	
  guidance	
  on	
  how	
  to	
  apply	
  make-­‐
up	
  for	
  the	
  contoured	
  look	
  they	
  want	
  to	
  achieve.
62
Augmented	
  reality
Source	
  :	
  www.mobilecommercedaily.com
Omni	
  Hotels	
  &	
  Resorts	
  brings	
  print	
  ads	
  to	
  life	
  
via	
  augmented	
  reality.	
   The	
  app	
  will	
  detect	
  the	
  
ad	
  through	
  image	
  recognition	
  and	
  
automatically	
  unveil	
  the	
  augmented	
  reality	
  
technology,	
  transforming	
  the	
  print	
  ad	
  into	
  a	
  
whole	
  new	
  experience	
   with	
  an	
  exclusive	
  video	
  
that	
  showcases	
  customer	
  testimonials,	
  virtual	
  
tours	
  and	
  behind-­‐the-­‐scenes	
  interviews	
  with	
  
Omni	
  chefs.
11/02/2016
32
@	
  Home
andre.blavier@gmail.com
www.andreblavier.be	
   …	
  needs
to	
  be updated :-­‐(
@	
  School ;-­‐)	
  
Affiliate Professor
andre.blavier@ulg.ac.be
@	
  Work
Web	
  &	
  Communication	
   Manager
andre.blavier@aei.be
www.digitalwallonia.be linkedin.com/in/andreblavier
facebook.com/unpeudeblabla
@unpeudeblabla
andre.blavier
unpeudeblabla.tumblr.com
slideshare.net/unpeudeblabla
scoop.it/t/unpeudeblabla

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HEC Digital Business. E-commerce

  • 1. 11/02/2016 1 Digital  Business 2015-­‐2016 E-­‐business  &  e-­‐commerce 1st  Master  HEC-­‐Ulg André  Blavier 1 1. Introduction   to  the  course. Tools  for  your  technology  watch. 2. Introduction   to  the  digital  transformation. Data,  Cloud,  Social,  mobile,  GAFA,  NATU,  Giga  economy,  … 3. The  digital  platform. Web  standards,  API,  apps,  cloud  based,  (big)  (open)  data,  … 4. E-­‐business  &  digital  marketing. SEM  &  content,  permission,  social,  mobile,  … 5. Digital  business. Your  company  facing  the  digital  disruption,  … 6. Perspectives  from  the  algorithmic  world. Focus  on  the  media  sector  and  the  industry  4.0,  … 2 Table  of  content  (subject  to  changes  …)
  • 2. 11/02/2016 2 3Source  :  www.statista.com/statistics/379046/worldwide-­‐retail-­‐e-­‐commerce-­‐sales Retail  e-­‐commerce  sales  worldwide 2013  to  2018  (in  $  trillion) 1. Ubiquity.  Internet  and  Web  technologies  are  available   everywhere  (work,  home,  street,  …)  at  anytime.  The   marketplace  is  extended  beyond  traditional  boundaries  and  is   removed  from  a  temporal  and  geographic  location.  We  are  now   inside  a  “marketspace”.  Shopping  and  marketing  can  take  place   anywhere.  Customer  convenience  is  enhanced,  and  shopping   cost  are  reduced. 2. Global  Reach.  Commerce  is  enabled  across  cultural  and  national   boundaries  seamlessly  and  without  modification.  The   “marketspace”  includes  potentially  billions  of  customers  and   millions  of  businesses  worldwide.   4Adapted  from  “E-­‐commerce  2013”  by    Laudon  &  Traver (Pearson) Digital  business  &  marketing  (1)
  • 3. 11/02/2016 3 3. Universal  standards.  There  is  one  set  of  technology   (Internet/Web)  standards  that  can  be  used  as  a  common,   inexpensive  and  global  technology  foundation  for  digital   marketing  and  business. 4. Richness.  Video,  audio,  text,  social,  mobile,  augmented  reality,   …  technologies  are  now  integrated  into  a  single  but   multichannel  marketing  message  and  consuming  experience. 5. Interactivity.  (Social)  Technologies  have  made  interaction  more   important  than  ever.  Consumers  are  engaged  in  a  dialog  that   dynamically  adjusts  the  experience  to  the  individual,  and  makes   the  consumer  a  co-­‐participant  in  the  marketing  message  and  the   business  process. 5Adapted  from  “E-­‐commerce  2013”  by    Laudon  &  Traver (Pearson) Digital  business  &  marketing  (2) 6. Information  density.  Information  processing,  storage  and   communication  costs  drop  dramatically.  Information  becomes   plentiful,  cheap  and  more  accurate.  Data  enable  companies  to   identify  new  trends  “faster  than  real  time”. 7. Personalization.  Algorithms  and  analytics  tools  connected  to  Big   Data  resources  make  possible  a  “one  to  one”  and  “real  time”   communication.  Customization  is  based  on  individual   characteristics.  With  3D  printing,  consumers  will  create  and   produce  their  own  products.   8. Desintermediation.  Crowdsourced  content  and  social  networks   have  changed  the  game.  Empowered  by  cloud  computing,  data   and  mobile  technologies,  new  disruptive  models  are  emerging   (sharing  economy).   6Adapted  from  “E-­‐commerce  2013”  by    Laudon  &  Traver (Pearson) Digital  business  &  marketing  (3)
  • 4. 11/02/2016 4 Virtual  =  Physical  ! The  key  trend  in  digital  business  &  marketing  is a  seamless  and  optimized  integration of  all  digital  and  physical  marketing  channels, within  a  strategy  based  primarily  on  content. 7 8 E-­‐Business (electronic  business).  Any  process  that  a  business   organization  conducts  over  a  computer-­‐mediated  network.   Business  organizations  include  any  for-­‐profit,  governmental,  or   nonprofit  entity.  Their  processes  include  production-­‐,  customer-­‐,   and  internal-­‐ or  management-­‐focused  business  processes. Source :  www.gartner.com E-­‐commerce  (electronic  commerce).  The  trading  or  facilitation  of   trading  in  products  or  services  using  the  Internet.  E-­‐commerce   draws  on  technologies  such  as  mobile  commerce,  electronic  funds   transfer,  supply  chain  management,  Internet  marketing,  online   transaction  processing,  electronic  data  interchange  (EDI),  inventory   management  systems,  and  automated  data  collection  systems. https://en.wikipedia.org/wiki/E-­‐commerce
  • 5. 11/02/2016 5 9 Digital  business.  The  creation  of  new  business  designs  by  blurring   the  digital  and  physical  worlds. Source :  www.gartner.com Digital  commerce.  The  buying  and  selling  of  goods  and  services   using  the  Internet,  mobile  networks  and  commerce  infrastructure.   It  includes  the  marketing  activities  that  support  these  transactions,   including  people,  processes  and  technologies  to  execute  the   offering  of  development  content,  analytics,  promotion,  pricing,   customer  acquisition  and  retention,  and  customer  experience  at  all   touchpoints  throughout  the  customer  buying  journey. Source  :  www.gartner.com 1. Value  proposition. 2. Revenue  model. 3. Market  opportunity. 4. Competitive  environment. 5. Competitive  advantage. 6. Market  strategy. 10Adapted  from  Pearson  Education Business  Model.  Key  elements
  • 6. 11/02/2016 6 Why  should   the  customer  buy  from  you? Examples  of  successful  e-­‐commerce  value  propositions   : • personalization/customization, • lower  price  or/and  price  discovery  costs, • “buy  from  home”, • Better/larger/easier  product  search, • facilitation  of  transactions  by  managing  product  delivery. 11Adapted from Pearson  Education 1.  Value  Proposition 12 bike24.net  ><  xxcycle.com
  • 7. 11/02/2016 7 How  will  the  firm  earn  revenue,  generate  profits,  and  produce  a   superior  return  on  invested  capital? Major  types: • advertising  (Google), • subscription  (www.lesoir.be), • transaction  fee  (eBay), • sales  (www.quatuor.be), • affiliate  (Amazon  marketplace,  www.venteprivee.com,  …). 13Adapted from Pearson  Education 2.  Revenue  model 14 Pricing.  Set  of  practices  and  tools  that  allows  to  set  a  price  at  a   given  time  in  order  to  maximize  sales  and  margins  of  a  product.   This  price  is  the  matching  of  supply  and  demand,  and  the  amount   a  customer  is  ready  to  pay  for  a  good  or  service.
  • 8. 11/02/2016 8 15 www.alexa.com Harness  the  power  of  analytics  to  grow  your   business  online.  Alexa  has  traffic  metrics  across   the  web  :  an  invaluable  source  for  competitive   intelligence  and  strategic  insight. 16 www.pricingassistant.com PricingAssistant helps  online  stores  and   brands  maximize  their  profits  with  our   competition  monitoring  tool.
  • 9. 11/02/2016 9 • What  marketspace  do  you  intend  to  serve  and  what  is  its  size? • Marketspace  :  area  of  actual  or  potential  commercial  value  in   which  company  intends  to  operate. • Realistic  market  opportunity   :  defined  by  revenue  potential  in   each  market  niche  in  which  company  hopes  to  compete. 17Adapted from Pearson  Education 3.  Market  Opportunity 18 www.sellerie-­‐online.fr Wholesaler  of  equipment  for  horse  riding  with  a  traditional   distribution  network  in  Belgium.  The  entrepreneur  believes   that  e-­‐commerce  is  an  opportunity  and  begins  to  start  a   shop  on  eBay.  The  result  is  positive.  He  started  a  real  online   store,  only  in  France  (to  protect  its  distribution  network  in   Belgium).  Marketing  is  mainly  through  the  network  of  horse   stables  to  reach  parents  having  to  equip  their  children  for   horse  riding  (community).
  • 10. 11/02/2016 10 19 www.9bulles.be A  future  young  mother  does  not  find  “cool”  clothes   for  pregnant  women.  After  the  birth  of  her  second   child,  she  decided  to  quit  her  job  to  launch  an   specialized  online  store,  without  physical  shop,  but   with  a  strong  teasing  6  months  in  advance  on   Facebook.  She  opens  now  a  second  physical  shop. Who  else  occupies  your  intended   marketspace?  Other  companies   selling  similar  products  in  the  same  marketspace. Includes  both  direct  and  indirect  competitors.  Influenced  by  : • number  and  size  of  active  competitors, • each  competitor’s  market  share, • competitors’  profitability, • competitors’  pricing. 20Adapted from Pearson  Education 4.  Competitive  Environment
  • 11. 11/02/2016 11 21 Want to  buysocks online  ? What is your business  model  ? Achieved  when  a  firm  : • produces  superior  product, • can  bring  product  to  market  at  lower  price  than  competitors. Important  concepts  : • asymmetries  (when  iTunes  was  launched,  Spotify), • first-­‐mover  advantage  (Netflix,  Facebook,  Newpharma.be), • unfair  competitive  advantage  (brands), • leverage  (Amazon). 22Adapted from Pearson  Education 5.  Competitive  Advantage
  • 12. 11/02/2016 12 23 Netflix … Netflix  has  a  strong  “first  mover”   advantage  and  positions  itself  as  a   “disintermediation”  service,  disrupting   the  business  model  of  the  “old”  TV   content  providers.  The  platform  is  also   simple  and  the  pricing  is  great. But  … 24 popcorntime-­‐online.io …  Netflix  has  already  to  face  new   challengers  offering  the  same  services   for  …  free,  like  Popcorntime.  …  Of   course,  don’t  tell  anybody  about  it  ;-­‐)
  • 13. 11/02/2016 13 25 Newpharma.be When  Europe  authorized  the  sale  of  “without  prescription”   drugs  on  the  Internet,  member   states  had  to  adapt  their   national  legislation.  The  day  of  publication  of  the  law  in   Belgium,  Newpharma was  online  supported  by  a  good   digital  marketing  campaign.  Initially,  it’s  a  classic  drugstore   whose  owner  has  done  a  great  watch  about  e-­‐commerce   opportunities  and  the  publication  of  the  law.  Currently,  the   site  generates  a  turnover  equivalent  to  more  than  7   “classic”  drugstores,  selling  its  products  all  over  Europe. 26 www.lesnouveauxateliers.com Tailored  (made  to  measure)  suits.  Digital  in   store  :  enter  the  3D  measuring  cabin.  In   600  milliseconds,  200  body  measurements   are  collected  through  a  camera.
  • 14. 11/02/2016 14 • How  do  you  plan  to  promote  your  products   or  services  to  attract   your  target  audience  ?  Details  how  a  company  intends  to  enter   market  and  attract  customers. • Best  business  concepts  will  fail  if  not  properly  marketed  to   potential  customers. • Apple,  www.tripy.eu,  www.archiduchesse.com,   www.leslipfrancais.fr,  www.1083.fr,  etc. 27Adapted from Pearson  Education 6.  Market  Strategy 28 1083.fr Jeans  …  made  in  France.  1083  =  1083   kilometers,  or  the  longest  distance   between  two  places  in  France  …
  • 15. 11/02/2016 15 29 www.leslipfrancais.fr Also  a  successful  “made  in  France”   model.  They  started  as  a  pure  player.   Now  they  have  a  real  shop  in  Paris. No  “one”  correct  way.  Business  models  according  to  : • e-­‐commerce  sector  (B2C,  B2B,  C2C), • type  of  e-­‐commerce  technology  (m-­‐commerce). Similar  business  models  appear  in  more  than  one  sector   (www.etilux.be  in  B2B  =  www.quatuor.be  in  B2C). Some  companies  use  multiple  business  models  : • eBay  :  B2C,  C2C, • Amazon  :  B2C,  B2B2C,  B2B. 30Adapted from Pearson  Education E-­‐commerce  models
  • 16. 11/02/2016 16 • Portal.  Search  plus  an  integrated  package  of  content  and  services   (advertising,  fees,  subscriptions,  etc.).  Horizontal  or  general.   Vertical  or  specialized.  Pure  Search.  Google,  news  Websites,   Facebook,  etc. • E-­‐tailer.  Online  version  of  traditional  retailer.  Low  barriers  to   entry  (sales).  Virtual  merchant  (Amazon,  iTunes),  bricks-­‐and-­‐clicks   (Vandenborre,  Fnac),  catalog  merchant  (LaRedoute),   manufacturer-­‐direct  (Dell). • Content  provider.   Digital  content  on  the  Web  :  news,  music,   video  (subscription,  pay  per  download,  advertising,  affiliate   referral  fees).  Content  owners,  syndication,  Web  aggregators. Belga,  Spotify,  Netflix,  iTunes,  News  Websites,  etc. 31Adapted from Pearson  Education B2C  models  (1) • Transaction  broker.  Process  online  transactions  for  consumers.   Saving  time  and  money  (transaction  fees).  Financial  services,   travel  services,  job  placement  services.  Booking.com,   zonebourse.com,  references.be,  odesk.com. • Market  creator.  Create  digital  environment  where  buyers  and   sellers  can  meet  and  transact  (fees).  EBay,  quefaire.be, etsy.com,  etc. • Service  provider.   Online  services.  Valuable,  convenient,  time-­‐ saving,  low-­‐cost  alternatives  to  traditional  service  providers (sales  of  services  and  data,  fees,  advertising).  Dropbox,  Evernote,   Google  (Gmail,  Maps,  docs,  etc.). • Community  provider.  Provide  online  environment  where  people   can  transact,  share  content,  and  communicate    (advertising,   subscriptions,  sales,  fees).  Facebook,  LinkedIn,  Twitter. 32Adapted from Pearson  Education B2C  models  (2)
  • 17. 11/02/2016 17 33 www.vinted.com Sell,  swap,  buy,  or  give  away  your  pre-­‐loved   clothes,  shoes,  or  accessories  and  make   friends  in  the  Vinted community! C2B2C  ! • E-­‐distributor.  Version  of  retail  and  wholesale  store.  One  company   seeking  to  serve  many  customers  (sales  of  goods).  www.etilux.be,   www.ksl.eu. • E-­‐procurement.  Creates  digital  markets  where  participants   transact  for  indirect  goods  (fees,  SCM,  fulfilment  services). www.publicprocurement.be. • Marketplaces  &  exchanges.  Independent  vertical  digital   marketplace  for  direct  inputs.  Create  powerful  competition   between  suppliers  (transaction,  fees).  www.companeo.be,   www.auctelia.com. • Industry  Consortium.   Industry-­‐owned  vertical  digital  marketplace   open  to  select  suppliers  (transactions,  fees). 34Adapted from Pearson  Education B2B  models
  • 18. 11/02/2016 18 35 www.auctelia.com B2B2B  platform  ! 1. Establish  a  Cross-­‐Functional   Strategy  Team.  Involve  other   business  units  such  as  marketing,  sales,  finance,  operations,   supply  chain  and  customer  services  from  the  very  beginning  of   the  process. 2. Set  Digital  Commerce  Objectives.  Start  by  envisioning  the  type   of  digital  commerce  service  you  want  to  offer.  Secondly,  look  at   the  business  motivations  for  deploying  digital  commerce   services.  Lastly,  define  the  KPIs  that  correspond  to  business   goals. 3. Take  Stock  of  Existing  Assets  and  Resources.  Look  at  the   existing  assets  and  resources  that  will  impact  project  delivery   and  performance.  Companies  that  are  starting  from  scratch  or   looking  to  upgrade  the  existing  platform  should  take  stock  of   the  digital  commerce  assets. 36Adapted from Pearson  Education A  digital  commerce  strategy  in  7  steps  (1)
  • 19. 11/02/2016 19 37Source  :  Gartner Digital  commerce  project  :  sample  KPIs   Step  Objective Goal KPI Target Acquire  more customers Increase  site  traffic Site  traffic Unique  visitors 15%  YOY  increase Increase  customer   conversion Conversion  rate  20% YOY  increase Increase  revenue per  customer Increase  average  order   value  (AOV) AOV More  than  $120 Reduce  cart   abandonment  rate Cart  abandonment  rate Less  than  70% Increase  customer loyalty Increase  customer   activity Active-­‐customer   percentage (made  purchase  in  the   last  three  months) More  than  30% Increase  repeat   purchases Repeat  purchases  per   customer 10%  increase  by  June 16 Increase  customer   rating Average  rating 15%  increase 4. Analyze  the  Business  Case.  Define  the  Project  Scope. • Business  models  (B2C,  B2B,  …). • Products  and  services.  Which  product  categories  shall  we   include? • Markets.  Which  regions/markets  shall  we  cover?  Shall  we   offer  multichannel  experience  to  our  existing  markets,  or  shall   we  use  online  channel  to  reach  new  markets?  … • Industry  segments  (B2B  only).  What  industry  segments  shall   we  target? • Channels.  Stand-­‐alone  sites  ?  Marketplaces  ?  Retail  stores  ?   Mobile  commerce  ?  Social  networks  ? • Time  to  market:  When  to  launch  the  pilot?  When  to  go  live? 38Adapted from Pearson  Education A  digital  commerce  strategy  in  7  steps  (2)
  • 20. 11/02/2016 20 39Source  :  Gartner E-­‐seller To  drive  transactions  to  the  digital   platform.  Usually  lack  an  extensive   physical  presence,  but  have  highly   sophisticated  digital  platforms  for   targeting,  personalization  and   transaction  management.  They  often   partner  with  third  parties,  or  operate   an  inhouse delivery  force  to  provide   top-­‐notch  delivery  experience  as  a   competitive  edge. Brick-­‐and-­‐clicker To  offer  a  multichannel  environment  for   engaging  customers  and  driving   transactions.  Businesses  can  be  looking  to   extend  the  relationship  to  digital  channels   and  transform  the  role  and  function  of   their  physical  presence.  Startups  can  use   the  multichannel  approach  to  disrupt   established  businesses  by  addressing   customer  pain  points  and  improving   service  efficiency. Influencer To  provide  information  that  drives   traffic  and  relationship  to  those  sites.   Because  of  the  authority  influencers   have  in  providing  information  and   opinion,  or  creating  extensive social  circles  and  user-­‐generated   content,  they  have  strong  influence   over  the  customer  behavior  that  can   lead  to  transactions  on  their  own   sites,  as  well  as  for  other  providers. Marketer To  engage  customers  and  align   marketing  with  digital  commerce   outcomes  using  all  possible  means  and   channels.  Often  organize  a  high  level  of   promotional  marketing  activities  and   branding  to  influence  sales  on  their  own   sites  or  on  partners'  sites.  Promotions,   sponsorships,  social  marketing  and   crowdsourced  designs  are  all  part  of  the   marketer's  activities. High  level of  digital  transactions Low level of  digital  transaction Digital channels only Digital  & physical channels 5. Design  the  Customer  Experience.  By  2017,  the  digital  customer   experience  will  be  the  key  differentiator  of  your  organization.   The  standard  of  digital  customer  experience  continues  to   improve  because  it  is  a  key  focal  point  of  innovation  initiatives.   Therefore,  designing  the  customer  experience  is  a  key  step  in   the  strategy  planning  process  that  will  impact  success  of  your   digital  commerce  service. • Define  Target  Customers. • Define  the  Customer  Experience  for  Key  Processes. • Map  the  Customer  Journey. 40Adapted from Pearson  Education A  digital  commerce  strategy  in  7  steps  (3)
  • 21. 11/02/2016 21 6. Make  Tactical  Decisions  to  Implement  the  Digital  Commerce   Platform.  This  step  helps  the  company  define  the  functional   requirements  of  the  technology  platform,  which  can  be  used  to   select  the  digital  commerce  vendor. 7. Improve  and  Refine  the  Strategy.  Install  analytics  to   continuously  monitor  the  site's  performance  and  overall  service.   Three  major  analytics  categories  are  : • Web  analytics. • Digital  personalization  engine  analytics. • Customer  journey  analytics. 41Adapted from Pearson  Education A  digital  commerce  strategy  in  7  steps  (4) New  exiting  ways  to  improve  the user  experience  in  e-­‐commerce. Sound,  quality  zooms,  360  ° views, configurators  /  demonstrators,  interactive  videos, augmented  reality,  real  time  3D,  immersive  universe,  … 42
  • 22. 11/02/2016 22 43 www.reebok.com Navigation  and  search   “by  colors”  on  the   Reebok  website. 44 www.getwear.com Every  pair  of  jeans  you  order  is   specially  tailored  and  hand  made   for  you  in  two  weeks  time.
  • 23. 11/02/2016 23 45 www.cupboardyourway.co.uk We  don’t  simply  produce  off-­‐the-­‐peg   cupboards.  We  have  taken  up  the   cause  of  manufacturing  special   cupboards.  Not  just  any  old  cupboard   :  yours!  According  to  your   specifications  and  your  wishes!   46 www.redfin.com Redfin 3D  Walkthrough™  is  a  feature  that  lets   home-­‐buyers  tour  Redfin agent-­‐listed  homes   for  sale  online  ,  helping  people  see  a  high-­‐ resolution  view  from  any  angle  inside  the   home.  This  immersive  experience,   powered  by   3D  technology,  helps  home-­‐buyers  better   decide  which  homes  to  tour  in  person.
  • 24. 11/02/2016 24 47dailymotion.com/video/x1b95ji_exclusive-­‐net-­‐a-­‐porter-­‐launches-­‐shoppable-­‐magazine_lifestyle www.redfin.com When  a  pure  player  decides  to  publish  a   …  paper  magazine.  But  with  a  specific   mobile  app,  this  magazine  suddenly   becomes  interactive  ! 48 Digital  commerce
  • 25. 11/02/2016 25 • SoLoMo (Social  Local  Mobile).  Convergence  of  social  networks, geolocation  and/or  local  business,  and  mobile  devices. • Intelligence  added  to  location  will  dictate  consumer  experiences   on  mobile.   • Contextual  use  of  time  and  social  profile  will  help  prioritize   mobile  services.   49Source  :  Gartner From  SoLoMo … • Omnichannel =  Multichannel   /  Multidevice /  Interactions. • A  global  experience  allowing  channels  and  devices  to  work  in   orchestration. • Multiple  touchpoints  increase  user  engagement  and  improve   effectiveness  of  digital  business. • It  is  not  just  smartphones   and  tablets.  A  Web-­‐centric  approach,   using  a  hybrid  model  will  provide  the  broadest  support  for  today   and  agility  for  tomorrow. • Goal  :  orchestrate  the  customer  journey. • It’s  also  the  new  global  technology  context  for  marketing. • From e-­‐commerce  to  Connected Commerce  ! 50Source  :  Gartner …  to  Omnichannel (computing)
  • 26. 11/02/2016 26 51Source  :  www.thinkwithgoogle.com Consumers  search  for  a  variety of  local  information   52Source  :  www.thinkwithgoogle.com Consumers  act  quickly  after  their  local   search  
  • 27. 11/02/2016 27 • The  consumer  uses  more  and  more  different  offline  and  online   channels  to  interact  with  vendors,  to  order,  buy  or  seek  advices,   before,  during  and  after  the  purchase. • He  will  find  a  specific  product  on  the  Internet,  and  then  identify   online  a  “physical”  shop  that  sells  it,  go  to  this  shop  to  "see  and   validate"  the  product  and  to  get  more  information,  and  then,   place  the  order  via  ...  his  smartphone  on  an  online  store  and,   finally,  have  the  product  delivered  at  home!  If  the  product  does   not  suit  him,  he  will  bring  it  in  a  library  that  offers  "relay  point"   services  ...  Where  he  will  maybe  pick  up  another  version  of  the   this  product  later. • Frontiers  between  commerce,  e-­‐commerce,  m-­‐commerce   disappear.  Consumers  now  have  a  real  "seemless"  shopping   experience,  from  one  canal  to  another.   53 Connected commerce 54Source  :  www.thinkwithgoogle.com/insights/library/studies/holiday-­‐consumer-­‐intentions-­‐2012 Connected commerce  &  ROPO
  • 28. 11/02/2016 28 55 In-­‐store  : • Bar  code  scanning • Coupons • Consumer   reviews • In-­‐store  navigation • Shopping  lists (weddings,   etc.) • Loyalty • Promotions Competitor store  : • Coupons • In-­‐store  inventory • Nearest store • Pricing • Promotions At home   : • Coupons • How-­‐to  videos • In-­‐store  inventory • Research tools • Shopping  list build • Store  hours • Store  location 56 • Change   reservation • Reserve  seats • View  reservation • Choose  food -­‐ 2  days -­‐ 2  hours +  2  hours +  2  days • Check  gate • Departure   time • Lounge  access • Upgrade • Special  offers  //   profile • Arrival  time • Food  order • Movies • Wi-­‐Fi • Ground   transportation • Lost  luggage • Navigation • Customer   services • Mileage  status • Reward  travel • Upcoming   reservations Flight
  • 29. 11/02/2016 29 Four  Key  Moments  to  be  There Source  :  www.thinkwithgoogle.com/research-­‐studies/micromoments-­‐guide-­‐pdf-­‐download.html 58www.groupe-­‐casino.fr/fr/Le-­‐Groupe-­‐Casino-­‐premier,4362.html    &    youtu.be/WdE0UTZlFy4 Casino  mobile  application The  “2.0”  customer  has  a  stronger  and   more  regular  interaction  with  shops. It’s  the  “anywhere,  anytime,  with  any   device  shopping“.   The  “omni channel"  mCasino NFC   application  offers  personalization,   continuity  and  fluidity  throughout  the   shopping  experience,  on  all  sales  channels.
  • 30. 11/02/2016 30 59 Virtual  analyse of  the  real  world Shopperception analyses   the  shopper's  behaviour in   front  of  the  shelf,   generating  metrics  and  real   time  events  to  drive  more   conversions. 60 Sephora  :  “Disruptive  experiences” Beacons.   Sephora  will  use  Beacons  in  stores  nationwide  to  deliver   timely,  personalized  alerts  to  shoppers  who  opt-­‐in  for  offers  like   birthday  alerts,  loyalty  program  updates  and  notifications  when   new  beauty  training  events  are  happening  in-­‐store. Augmented  Reality. The  retailer  has  an  augmented  reality   experience  for  shoppers  via  the  Sephora-­‐To-­‐Go  mobile  app  for   iPhone.  Consumers  can  interact  with  custom  content  by  hovering   over  the  faces  of  nine  beauty  brand  founders  that  are  featured  in   Sephora  windows  and  display  cases.  Scanning  each  image  will   bring  up  content  options  such  as  brand  founder  interviews,   product  videos,  YouTube  playlists  and  product  pages  on. Source  :  http://onforb.es/1EuEs34
  • 31. 11/02/2016 31 61 Sephora  :  “Disruptive  experiences” Source  :  m.sephora.com/pocketcontour Pocket  Contour.  In  partnership  with  Map  My  Beauty,  Sephora  will   launch  a  cross-­‐platform  personal  virtual  make-­‐up  artist  application   that  demystifies  contouring,  a  growing  beauty  trend.  By  analyzing  a   mobile  photo,  Sephora  can  help  consumers  identify  their  face  shape   and  offer  personalized  step-­‐by-­‐step  guidance  on  how  to  apply  make-­‐ up  for  the  contoured  look  they  want  to  achieve. 62 Augmented  reality Source  :  www.mobilecommercedaily.com Omni  Hotels  &  Resorts  brings  print  ads  to  life   via  augmented  reality.   The  app  will  detect  the   ad  through  image  recognition  and   automatically  unveil  the  augmented  reality   technology,  transforming  the  print  ad  into  a   whole  new  experience   with  an  exclusive  video   that  showcases  customer  testimonials,  virtual   tours  and  behind-­‐the-­‐scenes  interviews  with   Omni  chefs.
  • 32. 11/02/2016 32 @  Home andre.blavier@gmail.com www.andreblavier.be   …  needs to  be updated :-­‐( @  School ;-­‐)   Affiliate Professor andre.blavier@ulg.ac.be @  Work Web  &  Communication   Manager andre.blavier@aei.be www.digitalwallonia.be linkedin.com/in/andreblavier facebook.com/unpeudeblabla @unpeudeblabla andre.blavier unpeudeblabla.tumblr.com slideshare.net/unpeudeblabla scoop.it/t/unpeudeblabla