Myths Cheap, Easy, and Lucrative Everyone is Doing It Middlemen are Eliminated All Products become Commodities
Risk Management Project Related Risks Technical Risks Business Risks
Risk Management Alternatives What are our options and what do those options cost? What is the risk of not doing something? Outsourcing vs. Insourcing Is the technology proven or new?
Top 10 E-Commerce Failure Risks Project has unclear mission statement. Project does not have a clear business case. Project specifications are vague. Project is due to be delivered in one big chunk. Project team does not have the experience. Some team members are not committed. Project plan does not include time for holidays, vacations, sick days. Project plan includes no knowledge transfer plan for when consultants leave. Project schedule was dictated by management without regard to the amount of work required. Customer, partner, and management expectations are unrealistic.
Cost Promotional Site = $300,000 Transactional Site = 1 to 3 Million The largest cost associated with e-commerce is labor because of IT staffing shortage
Measuring Success Customer Satisfaction Business Partner Satisfaction Number of New Customers Customer Attrition Product Availability
Brand Management Moving from Brick-and-Mortar to the Virtual World Create a cyberbrand that attracts customer loyalty Customer loyalty in cyberspace is much lower than in the real world Customer retention cost are much higher in cyberspace Customer acquisition costs are lower in cyberspace
Internet Innovations Portals – Yahoo! E-Tailing – Amazon Auctions – e-Bay Application Hosting – Application Service Providers
Portals Gateway to the Web Search Tool Links News Advertisers
External Service Providers Internet Service Providers Web Hosting Providers Application Server Providers
Choosing a Partner Trust Culture Reputation and Image Technology Financial Stability
Independent Software Vendors ERP Vendors = SAP, Oracle, Peoplesoft Database Software Manufacturers = Oracle Web Software Co = iFront, Mercado Home Productivity = Intuit, Norton
Technical Standards United Nations Electronic Data Interchange for Administration, Commerce, and Transport (UN/EDIFACT). American National Standards Institute (ANSI)
Legal Issues Since cyberspace doesnt really exist as a physical place, where should legal issues be resolved. The electronic trail is not treated with the same respect as a paper trail.
Top 10 Benefits Greater market share Reduces administrative cost Streamline business processes Improves relationship between business partners and customers Equal market access for small and large businesses New ways to manage supply and value chains Seamless business operating environment Makes it possible to buy and sell on the Internet Automates business transactions Allows businesses to provide better customer service
Reference Trepper, Charles, E-Commerce Strategies, Microsoft Press, 2000.
Thanks Special Thanks to Chris Jones For His PowerPoint Assistance