1. MIS 4453 - Technologies of e-Commerce Course Overview
Successful
E-Commerce
Web site
20% of course grade
Business Principles
Technologies
-HTML
-FrontPage
-Access
-VBScript
-Flash
-Forms
-Shopping cart
Business Models
Customer Interface
Management Metrics
Driving Traffic
CRM

2. Term Project 20% of your course grade – more than just a term paper.
Project graded 40% on the Web site (Dr. Seydel) and 40% on the Business plan (Dr. Fish); 20% of the term project grade will be your oral class presentation. Refer to class Web site for guidelines in development.
Oral presentations begin April 15th;
All written presentations due April 15

3. Oral Presentations
10 minutes each – be concise, practice getting it down to 10 minutes.
(10 minutes on Business Model, 3 minutes showing the site)
Must have: Title Slide, Value Cluster, Market Space Offering (Egg Diagram), Resource System, Revenue, 7Cs model, Driving Traffic, CRM, Management Metrics
Bring two hard copies of oral presentation on the day you present.

4. Written Presentation Written elaboration of oral presentation
7-15 pages total with exhibits.
Use sub-headings on various sections.
Use exhibits to shorten text and then use text to go in-depth on exhibits. Walk reader through exhibits. Don’t throw in exhibits as after thought.
Number all pages and exhibits.
Proof read - no grammatical or spelling errors.
Must have cover page with URL
Turn-in two copies

5. Networked Economy Example
Porter Strategy Model
Key concepts:
There are only three basic strategies
Each implies a different business model
Firms can pursue only one strategy at the time
Possible Strategies
Differentiation
Cost
Niche
Requires constant innovation and leadership on the benefits that matter most to the customer
Focus on gaining competitive advantage on costs while maintaining parity level on differentiation
Focus the business on a particular segment of the market and then pursue either differentiation or cost strategy
Business Model
Networked Economy Example
Travelocity.com
Lowestfare.com
Lastminute.com

6. Components of a Business Model
Developing a business model in the networked economy requires four key choices on the part of the senior management:
Value Cluster
Specify the value proposition or the value cluster for the business
Marketspace Offering
Articulate the online product, service and information offer
Resource System
Define how the company needs to align its resources to deliver the value proposition
Financial Model
Define and select the most appropriate revenue model to pursue

7. Value Proposition/Cluster
The definition of the value proposition is the result of a combination of choices about the customers, the benefits offered and the unique capabilities of the firm:
Target
Segments
Key Benefits
Offered
Unique
Capabilities
Value
Proposition + + “

8. Product/Service Offering
Egg Diagram
Decision Process
Need Recognition
Product/Service Offering
Build Relationship
Search for Ideas and Offerings
Post-Sale Support and Perks
Evaluation of Alternatives
Message Selection
Purchase Decision

9. Step No. 1 — Identify Core Benefits
The core benefits must be identified in the construction of the value cluster:
1-800-Flowers.com serves the “mid- to high-end market” with a broad gift assortment, fresh flowers, reasonable prices and easy access because of its strong brand name, product and media partnerships and bricks-and-mortar network of franchises.
Broad Assortment of Gifts
High Quality of Flowers
Customer Service
Widespread, Easy Access

10. Step No. 2 — Link Capabilities to Benefits
Managers need to identify which capabilities are required to deliver each benefit, regardless (at this point) of the ability of the company to access or develop that capability:
For Flowers.com, the benefit “widespread, easy access” is linked to four capabilities: strong brand name, wide reach to customers, multiple points of contacts and a popular website.
Broad Assortment of Gifts
High Quality of Flowers
Popular Website
Multiple Contact Points
Customer Service
Widespread, Easy Access
Wide Reach to Customers
= Core benefits
Strong Brand Name
= Capabilities

11. Step No. 3 — Link Resources to Capability
After the capabilities are identified, the firm should determined the resources necessary to deliver each capability:
Broad Assortment of Gifts
High Quality of Flowers
Popular Website
Telephone
3,000 Affiliates
Online
Franchise Stores
Multiple Contact Points
Catalog
Customer Service
Widespread, Easy Access
Wide Reach to Customers
Strong Brand Name
= Core benefits
= Activities & assets
= Capabilities

12. Product, Service, Information
Revenue Models
While firms can pursue a number of revenue models, some are used most frequently:
Advertising
Advertising revenues can be generated through the selling of ads, site sponsorships, event underwriting, etc. (e.g., Yahoo, AOL, Business2.com)
Product, Service, Information
Revenues can be generated from the sales of goods and services (e.g., Amazon, CDNow, Buy.com)
Transaction
Revenues can be accrued from charging a fee or taking a portion of the transaction sum for facilitating a customer-seller transaction (e.g., Schwab, eBay)
Subscription
Website can gain revenues by offering subscription services for information (e.g., FT.com, NYTimes.com)

13. The 7Cs of Lands’ End Context Content Community Customization
Landsend.com utilizes both aesthetic and functional design elements to communicate its core benefits
Content
Landsend.com includes content pertaining to its product offerings, services and offline support. The content is conveyed through a combination of text, photographs and graphics.
Community
“Shop with a Friend” allows two users to shop simultaneously, creating a virtual shopping experience.
Customization
Personal shopping accounts are used to facilitate use of the site and tailor future visits to the customer’s individual needs.
Communication
“Lands’ End Live” allows users to talk directly to a customer service representative via phone or live text chat.
Connection
Landsend.com does not link to any other sites; their affiliate program, however, links other sites to Landsend.com.
Commerce
Landsend.com has typical transactional capability, providing the customer with a confidential and convenient way to shop online.

14. Driving Traffic to a web site
Search
Engines
Domain Name
E-commerce
Web site
External
Links
Public
Relations
Advertisements
Promotions

15. Goals of CRM
Retention rate: CRM, relationship building, increases customer loyalty which increase revenue per customer and frequency of purchases.
Referrals: CRM can turn customers into advocates. Referrals typically have higher retention rates and spending rates than other newly acquired customers.
Increased sales: CRM leads to increased cross-selling, upgrades, or simply more products by existing customers.
Reduced costs: CRM can lead to more cost effective marketing; avoids expenses of mass marketing, free-up sales professionals, reduces direct mailings.

16. Develop Management Metrics

17. Return to slides at class Web site for additional details.