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K.N.Toosi University of Technology Faculty of Industrial Engineering e-Commerce Dr. Farid Khoshalhan 1 e-Commerce Session One.

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Presentation on theme: "K.N.Toosi University of Technology Faculty of Industrial Engineering e-Commerce Dr. Farid Khoshalhan 1 e-Commerce Session One."— Presentation transcript:

1 K.N.Toosi University of Technology Faculty of Industrial Engineering e-Commerce Dr. Farid Khoshalhan 1 e-Commerce Session One

2 K.N.Toosi University of Technology Faculty of Industrial Engineering e-Commerce Dr. Farid Khoshalhan 2 Network Economy Businesses  They create value largely through the gathering, synthesizing, and distribution of information  They formulate strategy in ways that make management of the enterprise and management of technology convergent  They operate in real time rather than cycle time  They operate in a world characterized by low barriers to entry, near-zero variable costs of operation, and as a result-intense, constantly shifting competition

3 K.N.Toosi University of Technology Faculty of Industrial Engineering e-Commerce Dr. Farid Khoshalhan 3 Network Economy Businesses They organize resources around the demand side rather than the supply side They often manage relationship with customers and market through screen-to-face channels and interfaces, i.e. technology rather than people manages these relationship They use technology-mediated channels and have ongoing operations that are subject to measurement and tracking in unprecedented and granular ways

4 K.N.Toosi University of Technology Faculty of Industrial Engineering e-Commerce Dr. Farid Khoshalhan 4 e-Commerce Attributes  It is about the exchange of digitized information between parties  It is technology-enabled  It is technology-mediated  It include intra-and interorganizational activities that support the exchange

5 K.N.Toosi University of Technology Faculty of Industrial Engineering e-Commerce Dr. Farid Khoshalhan 5 e-Commerce Definitions E-commerce is commerce enabled by Internet-era technologies (Seddon 1997) The seamless application of ICT from its point of origin along the entire value chain of business processes conducted electrinically and designed to enable the accomplishment of a busines goal (Wigand 1997)

6 K.N.Toosi University of Technology Faculty of Industrial Engineering e-Commerce Dr. Farid Khoshalhan 6 e-Commerce Definitions E-commerce is a general concept covering any form of business transaction and communication technology, between companies, between companies and their costomers, or between companies and public administration. E- commerce includes electronic trading of goods, services and electronic material (EU, 1997) Formulating commercial transactions at a site remote from the trading partner and then using electronic communications to execute that transaction (Whiteley 2000)

7 K.N.Toosi University of Technology Faculty of Industrial Engineering e-Commerce Dr. Farid Khoshalhan 7 e-Commerce Definitions Technology mediated exchanges between parties as well as the electronically based intra-or inter-organizational activities that facilitate such exchanges (Rayport 2002) Three components: 1.Economic activity is involved 2.Interaction occurs electronically 3.The interaction typically crosses organizational boundries

8 K.N.Toosi University of Technology Faculty of Industrial Engineering e-Commerce Dr. Farid Khoshalhan 8 Four Categories of e-Commerce Business to business (B2B): this referes to the full spectrum of e-commerce that can occur between two organizations. eg: Freemarket, Dell, GM Business-to-consumer (B2C): e-commerce refere to exchange between business and consumers including the exchange of physical or digital products or services. Eg: Yahoo, Amazon

9 K.N.Toosi University of Technology Faculty of Industrial Engineering e-Commerce Dr. Farid Khoshalhan 9 Four Categories of e-Commerce  Peer-to-Peer (P2P): P2P exchanges involve transactions between and among consumers. These can include third_party involvement like eBay. eg: Gnutella (music), Owners.com (classified ads)  Consumer-to business (C2B): in C2B consumers can band together to present themselves as a buyer group economically oriented or socially oriented (SpeakOut.com)

10 K.N.Toosi University of Technology Faculty of Industrial Engineering e-Commerce Dr. Farid Khoshalhan 10 Four Categories of e-Commerce B2B B2C C2B C2CConsumers Business And selling to... Business originating from... Business Consumers

11 K.N.Toosi University of Technology Faculty of Industrial Engineering e-Commerce Dr. Farid Khoshalhan 11 Strategy in a Rapidly Changing Environment A hallmark of online companies is their ability to shift resources, revenue models, and content The speed of change in the online environment has forced companies to act and react more quickly

12 K.N.Toosi University of Technology Faculty of Industrial Engineering e-Commerce Dr. Farid Khoshalhan 12 Factors of Customer Behavior  customization or individualization: the ability to create a custom experience through the use of technology initiated by the firm (customizing its site for the user) or initiated by the user like My Yahoo interactivity: ability to conduct two way communication including firm-to-user and user- to-user communication. It is a move from one- way marketing to one-to-one marketing.

13 K.N.Toosi University of Technology Faculty of Industrial Engineering e-Commerce Dr. Farid Khoshalhan 13 The Framework for The Field of e-Commerce:  The e-commerce strategy wrapped by four infrastructures: 1.Technology 2.Capital 3.Media 4.Public policy  Market: market involves customer and includes the buyers and sellers and forces that shape the nature of the marketplace exchange

14 K.N.Toosi University of Technology Faculty of Industrial Engineering e-Commerce Dr. Farid Khoshalhan 14 1.Technology infrastructures: they are both enablers and drivers of change. 2.Capital infrastructure: knowing the capital infrastructure and how to secure funding for a venture and value the business is important 3.Media infrastructure: Internet is a mass communication platform. Managers who run e-commerce enterprises must learn to manage staff responsible for design interface, stylist choices, editorial policies, and content choices associated with this new communication venue 4.Public policy infrastructure: all decisions influenced by laws and regulations. The Strategy Formation

15 K.N.Toosi University of Technology Faculty of Industrial Engineering e-Commerce Dr. Farid Khoshalhan 15 A Framework for Electronic Commerce Publics and Politics Media Infrastructure Framing the Market Opportunity Business Model Implementation Evaluation: Metrics and Valuation Network Infrastructure e-Commerce Strategy Market Infrastructure Customer Interface Market Communications and Branding

16 K.N.Toosi University of Technology Faculty of Industrial Engineering e-Commerce Dr. Farid Khoshalhan 16 The Role of a Senior e-Commerce Manager Marketing Finance Strategic Management Operations and Logistics New Media Technology Entrepreneurship Accounting

17 K.N.Toosi University of Technology Faculty of Industrial Engineering e-Commerce Dr. Farid Khoshalhan 17 Four Key Challenges for Senior e-Commerce Managers 1.understanding customer evolution: wining firms invest to anticipate the customer likes and dislikes. For Amazon.com, the reliability was the first customers’ concerns and then the speed was the target. 2.new technologies are constantly emerging and disappearing, picking the right ones to meet the evolutionary consumer tastes is a constant, high-stakes gamble for senior managers

18 K.N.Toosi University of Technology Faculty of Industrial Engineering e-Commerce Dr. Farid Khoshalhan 18 Four Key Challenges for Senior e-Commerce Managers 3. Balancing irrational exuberance and irrational doom: this is a matter of ridding the storm. Executive manager must continually reassure the workforce, reassure the investors that business model make sense, spell out the path to profitability 4. integrating offline and online activities: there is increasing pressure on offline firms to integrate their online activities. The senior executive manager will be under increasing pressure to be closely aligned-in terms of systems, structure, processes, compensation, and employee and welfare-with the traditional offline business

19 K.N.Toosi University of Technology Faculty of Industrial Engineering e-Commerce Dr. Farid Khoshalhan 19 e-Commerce End of Session One


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