Presentation on theme: "Introduction to e-business and e-commerce"— Presentation transcript:
1 Introduction to e-business and e-commerce Chapter 1Introduction to e-business and e-commerce
2 Learning outcomesDefine the meaning and scope of e-business and e-commerce and their different elementsSummarize the main reasons for adoption of e-commerce and e- business and barriers that may restrict adoptionUse resources to define the extent of adoption of the Internet as a communications medium for consumers and businessesOutline the business challenges of introducing e-business and e- commerce to an organization.
3 Management issuesHow do we explain the scope and implications of e-business and e-commerce to staff?What is the full range of benefits of introducing e-business and what are the risks?How great will the impact of the Internet be on our business? What are the current and predicted adoption levels?
4 E-business opportunities Reach:Over 1 billion users globallyConnect to millions of productsRichnessDetailed product information on 20 billion + pages indexed by Google. Blogs, videos, feeds…Personalised messages for usersAffiliationPartnerships are key in the networked economy
5 E-business risks Making wrong decision about e-business investments Provide poor online customer experience
6 Internet risks – what can go wrong with a transactional site?
7 Internet risks – what can go wrong with a transactional site? Web sites that fail because of spike in visitor trafficHacker penetrating the security of the systemA company s customer without receiving their permissionProblems with fulfilmentcustomer-service enquiries from the web site don’t reach the right person
8 What is the difference?E-commerce: All electronically mediated information exchanges between an organization and its external stakeholderNot solely restricted to the actual buying and selling of products, but also includes pre-sale and post-sale activities
9 Different perspectives of EC CommunicationBusiness processServiceOnline
10 The distinction between buy-side and sell-side e-commerce
11 Types of sell-side e-commerce Transactional e-commerce sitesServices-oriented relationship-building web sitesBrand-building sitesPortal or media sites
12 Summary and examples of transaction alternatives between businesses, consumers and governmental organizations
13 E-governmentThe application of e-commerce technologies to government and public services for citizens and businessesCover services for:CitizensSuppliersInternal communications
14 E-businessAll electronically mediated information exchanges, both within an organization and with external stakeholders supporting the range of business processesE-business concepts:Applied to strategy and operationsAn adjective to describe businesses that mainly operate online
15 Three definitions of the relationship between e-commerce and e-business
16 Drivers of consumer Internet adoption ContentCustomizationCommunityConvenienceChoiceCost reduction
17 Barriers of consumer Internet adoption No perceived benefitLack of trustSecurity problemsLack of skillsCost
18 Drivers of business adoption Potential for increased revenueCost reduction
19 Attitudes to business benefits of online technologies Source: DTI (2002)
20 Cost/efficiency and competitiveness drivers Cost/efficiency driversIncreasing speed with which supplies can be obtainedIncreasing speed with which goods can be dispatchedReduced sales and purchasing costsReduced operating costs.Competitiveness driversCustomer demandImproving the range and quality of services offeredAvoid losing market share to businesses already using e-commerce.
21 Tangible and intangible benefits Increased sales from new sales leads giving rise to increased revenue from:– new customers, new markets– existing customers (repeat-selling)– existing customers (cross-selling). Marketing cost reductions from:– reduced time in customer service– online sales– reduced printing and distribution costs of marketing communications. Supply-chain cost reductions from:– reduced levels of inventory– increased competition from suppliers– shorter cycle time in ordering. Administrative cost reductions from more efficient routine business processes such as recruitment, invoice payment and holiday authorization. Corporate image communication Enhancement of brand More rapid, more responsive marketing communications including PR Faster product development lifecycle enabling faster response to market needs Improved customer service Learning for the future Meeting customer expectations to have a web site Identifying new partners, supporting existing partners better Better management of marketing information and customer information Feedback from customers on products
22 Barriers to adoptionBusiness are not using Internet for particular e- business applications
23 Barriers to development of online technologies Source: DTI (2002)
24 The McKinsey 7S framework Source: Adapted from Waterman et al. (1980)
25 ExercisePlease identify one company for each the types of e-commerce below:Transactional e-commerce sitesServices-oriented relationship-building web sitesBrand-building sitesPortal or media sitesRefer to Figure 2 and identify a company for each the category provided.