USING E-COMMERCE AS A BUSINESS TOOL

Introduction to the on- line environment Definition: What is E-commerce? E-commerce is the process of conducting business using the Internet and Intranet.

USING E-COMMERCE AS A BUSINESS TOOL. The Internet will offer new business opportunities through E-commerce to allow companies to operate on a global scale There is a degree of truth, a lot of exaggeration and speculation as to how effective E-commerce will develop

Difference between Internet and Intranet Internet: is a network of networks, which interchange data. It can be considered a prototype of the global information superstructure. Intranet: Is a closed or private network which interchanges data. Used within organisations, but can be accessed externally through a password.

The Internet Business Climate The internet is no longer an exclusive academic and technical network. The following pie chart demonstrates the growth of internet use particularly in the commercial sector.

Internet user Demographics

Why the need for an on- line Environment SMEs are competing in an increasingly global business environment. Downsizing by large corporations and government has created more employment opportunities in the SME sector. In the future it will it be the organisations with culture of connectivity who will have the competitive edge. Will we see virtual communities becoming coalition organisers who act on behalf of their community members, be they business or the wider community. Hagel & Armstrong (1997

Why the need for an on-line E-commerce Australia is an Information based society 40% percent of employment involved in production, processing distribution, infrastructure. More than a million Australian now use the Internet regularly and this is growing. Educational policies now gear students towards computer literacy and new technologies. The rise of the Internet and the World Wide Web are part of the phenomenon of globalisation. Barry Jones I.T.Age Newspaper

Conducting Virtual commerce on the Internet Business opportunities can be broken down into two broad categories Marketing and Internal operations Marketing using the Internet provides a collection of tools that allow interactive advertising, customer service and support, product information and sales

Conducting Virtual Commerce On The Internet With E-commerce your business can now do the following Communicate with customers instantly including sending requested information on demand to customers using Promote your business by distributing to global forums Create virtual shopfronts to generate sales directly from the Internet.

Conducting Virtual Commerce On The Internet Internal Operations The Internet provides a variety of tools for moving information, collaboration and development and vendor support. The business can operate more efficiently and profitably.

Conducting Virtual Commerce On The Internet. Distribute files to anyone or a select group in a convenient and efficient fashion. Access the vast resources of the Internet. Publish information such as on-line catalogues, brochures and newsletters

Establishing your business wired to the net There are three essential parts Getting your business wired to the net Setting up a server presence to deliver services on-line Working with the key tools of the Internet trade FTP Gopher and the World Wide Web

Getting your business wired to the net Can be fraught with technical, financial and strategic complexities. Issues to be addressed are Setting up the right sort of internet account Choosing the right type of telecommunications line.

Getting your business wired to the net 1. Establishing a domain name Domain names indicate the type of service or product you are offering. A domain name lets you capitalise on any brand recognition associated with your business name. Domain names are registered with an organisation call InterNIC

Registering Domain Names Names are registered on a first come first served basis Registering a domain implies no legal ownership of the name. The service can be contacted for information on Domain names.

Examples Look at the following sites (commercial) (education)

Establishing a Server Presence Two Options 1. Do it yourself using a unix server, a dedicated connection, a leased high volume data transmission line and the technical expertise to put it all together. 2. Rent space on a server services server and let the ISP do the work for you

Promote you presence in all your business documents It is as important as your telephone and fax number Always display on business cards

Sharing Information with FTP File transfer Protocol (FTP) is a medium that lets business send and receive files across the Internet. Creating an FTP site is a cost-effective way to make large quantities of information available internally/externally to all Internet users.

Sharing Information with FTP Thousands of anonymous sites throughout the net. Many of these are file archives that let users get software at no cost

Using E-commerce as a business Tool. Disadvangages On - line security Viruses Cost effectiveness Relevance Lack of training

Using E-commerce as a business Tool. Recent studies have shown Australians are one of the highest users of the net in the world on a per capita basis Australians have a keenness for new technologies

Reasons for Using E- Commerce as a Business tool. Export opportunities Improved exposure Cost savings New opportunities Improved Communications Reduced reliance on paper Find new Employees

Using E-Commerce as a Business Tool. The internet will remove the tyranny of distance our geographic isolation from world markets will no longer be relevant. The web will allow a small Australian company to advertise its products world wide at the same coast as it takes to advertise in the local community. Australia has a reputation for producing high quality goods for niche markets. A web presence is the ideal medium for promoting these products.

Security Issues A study of UK business revealed that 54% of all business surveyed were concerned about security issues. 47 were concerned about the complexity of payment systems Is on-line security an issue on the net or is it less dangerous than quoting it over the phone or handing it over in the restaurant?

Using E-Commerce as a Business Tool. There are two items of existing global infrastructure that can assist us to sell on the net. What do you think they might be?

Using E-Commerce as a Business Tool. Credit Cards VISA AMEX MasterCard etc Global Courier Companies FedEx DHL TNT

Using E-Commerce as a Business Tool. By advertising your business presence on the net the distinction between an organisation with large marketing muscle and a small innovative company is blurred.