1. Chapter 3 Launching a Business on the Internet

2. Awad –Electronic Commerce 1/e © 2002 Prentice Hall 2 OBJECTIVES Introduction of E-Business Life Cycle –Planning –Hardware, Software & Security –Marketing –Fulfillment –Maintenance & Enhancement Launching a Business on Internet: Objectives

3. Awad –Electronic Commerce 1/e © 2002 Prentice Hall 3 PLANNING Strategizing Reality –Evaluate a companys position & competition –Set a course for years ahead –Develop implementation plan Launching a Business on Internet: Introduction of E-Business Life Cycle

4. Awad –Electronic Commerce 1/e © 2002 Prentice Hall 4 E-BUSINESS vs. TRADITIONAL BUSINESS FactorE-BusinessTraditional Barriers to Entry Time & Space Limits; Limited Financial Capital; Unique Products Location Requirements Basis of Competition Innovative ProductsImproved Products Basis of Control CustomerManufacturer Launching a Business on Internet: Introduction of E-Business Life Cycle - Planning

5. Awad –Electronic Commerce 1/e © 2002 Prentice Hall 5 E-BUSINESS vs. TRADITIONAL BUSINESS (Contd) FactorE-BusinessTraditional OrganizationSpecialized TeamsHierarchical Departments Marketing/ Sales Mass PersonalizationMass Advertising PricingTransaction Costs on a Sliding Scale Production Costs Launching a Business on Internet: Introduction of E-Business Life Cycle - Planning

6. Awad –Electronic Commerce 1/e © 2002 Prentice Hall 6 STRATEGIZING Know Your Audience Become Internet Savvy Determine Long-term vs. Short-term Selling Define Your Competitors Evaluate Website Appearance Launching a Business on Internet: Introduction of E-Business Life Cycle - Planning

7. Awad –Electronic Commerce 1/e © 2002 Prentice Hall 7 STRATEGIZING (Contd) Select Product Range Manage Transaction Effectively & Efficiently Design Shipment Process Be Prepared for Unexpected Changes Launching a Business on Internet: Introduction of E-Business Life Cycle - Planning

8. Awad –Electronic Commerce 1/e © 2002 Prentice Hall 8 ULTIMATE STRATEGY Vision –What is your business trying to achieve? Resources –How much can your business afford to build the right Website? Culture –Is your business politically amenable for coordinating efforts to support e-business? Launching a Business on Internet: Introduction of E-Business Life Cycle - Planning

9. Awad –Electronic Commerce 1/e © 2002 Prentice Hall 9 DECIDING ON TYPES OF SITE Community Content Commerce Business-to-business –Back-end of e-commerce Business-to-consumer –Front-end of e-commerce Consumer-to-consumer –One consumer contacts another to transact business Launching a Business on Internet: Introduction of E-Business Life Cycle - Planning

10. Awad –Electronic Commerce 1/e © 2002 Prentice Hall 10 PLANNING CONSIDERATIONS Create & Maintain a Competitive Edge Reduce Operational Costs Improve Employee Communication & Satisfaction Find New Markets for Products & Services Improve relationships with Partners Launching a Business on Internet: Introduction of E-Business Life Cycle - Planning

11. Awad –Electronic Commerce 1/e © 2002 Prentice Hall 11 PLANNING CONSIDERATIONS (Contd) Create Distinct Distribution Channels Ensure Customer Satisfaction Adopt Sense of Entrepreneurship Improve Supply-Chain Management Launching a Business on Internet: Introduction of E-Business Life Cycle - Planning

12. Awad –Electronic Commerce 1/e © 2002 Prentice Hall 12 HARDWARE, SOFTWARE & SECURITY Hardware Specifications Hardware / Software Pitfalls Security for Reliability Launching a Business on Internet: Introduction of E-Business Life Cycle – Hardware, Software & Security

13. Awad –Electronic Commerce 1/e © 2002 Prentice Hall 13 PROMOTING ONLINE SECURITY Control access to web server Update server software & encoding security measures Use firewalls Monitor traffic & detect irregularities Assign a webmaster Launching a Business on Internet: Introduction of E-Business Life Cycle – Hardware, Software & Security

14. Awad –Electronic Commerce 1/e © 2002 Prentice Hall 14 DESIGN Promote presence to customers Secure site quality & effectiveness Keep website up to date Launching a Business on Internet: Introduction of E-Business Life Cycle - Design

15. Awad –Electronic Commerce 1/e © 2002 Prentice Hall 15 WEB STOREFRONT Enables customers to find products quickly –8-second rule Sends the order to fulfillment center securely Generates a printable receipt Launching a Business on Internet: Introduction of E-Business Life Cycle - Design

16. Awad –Electronic Commerce 1/e © 2002 Prentice Hall 16 WEB SITES PROGRAMS Database Server Store Administrator Catalog Builder Shopping Cart Order-processing System Launching a Business on Internet: Introduction of E-Business Life Cycle - Design

17. Awad –Electronic Commerce 1/e © 2002 Prentice Hall 17 DESIGN CONSIDERATIONS User Control & Freedom Consistency & Standards Recognition Aesthetic Design Recovery Help Desk Launching a Business on Internet: Introduction of E-Business Life Cycle - Design

18. Awad –Electronic Commerce 1/e © 2002 Prentice Hall 18 MARKETING Providing Good Services Advertising Knowing the Customers Selling Products & Services Following Up Launching a Business on Internet: Introduction of E-Business Life Cycle - Marketing

19. Awad –Electronic Commerce 1/e © 2002 Prentice Hall 19 MARKETING CONSIDERATIONS Focus on niche market Know your visitors Integrate online sales with other channels Provide a fast, easy payment process Launching a Business on Internet: Introduction of E-Business Life Cycle - Marketing

20. Awad –Electronic Commerce 1/e © 2002 Prentice Hall 20 FULFILLMENT Packing up the merchandise Shipping the merchandise Answering questions about orders Sending out bills Following up with customers Tax angle Launching a Business on Internet: Introduction of E-Business Life Cycle - Fulfillment

21. Awad –Electronic Commerce 1/e © 2002 Prentice Hall 21 INVENTORY ISSUES Product Availability Out of Stock Notice Back Orders Processing Orders Controls Launching a Business on Internet: Introduction of E-Business Life Cycle - Fulfillment

22. Awad –Electronic Commerce 1/e © 2002 Prentice Hall 22 MAINTENANCE & ENHANCEMENT Maintenance –Keeping a systems on course based on initial design Enhancement –Implementing upgrades to improve systems productivity Bottom Line – Customer Attraction & Retention Launching a Business on Internet: Introduction of E-Business Life Cycle – Maintenance & Enhancement

23. Awad –Electronic Commerce 1/e © 2002 Prentice Hall 23 MANAGING CUSTOMER FEEDBACKS Set up FAQs Increase information access Avoid using large images Answer e-mail promptly Launching a Business on Internet: Introduction of E-Business Life Cycle – Maintenance & Enhancement

24. Awad –Electronic Commerce 1/e © 2002 Prentice Hall 24 CUSTOMER SERVICE CONSIDERATIONS Order Update Order Status Look-up & Notification Technical Support Localization Customer Expectations Launching a Business on Internet: Introduction of E-Business Life Cycle – Maintenance & Enhancement

25. Chapter 3 Launching a Business on the Internet