1. Ecommerce Applications 2007/8 1 Session 2 E-commerce: Why/How Much Benefits and Costs

2. Ecommerce Applications 2007/8 Session 22 Overview Broad Benefits Measurable gains –Virtual Commerce Business Risks Costs and Barriers –SME specific issues Examples

3. Ecommerce Applications 2007/8 Session 23 Broad Benefits Strategic planning and the right approach can: Modernise/launch company image Increase efficiency and cut costs Attract and retain customers Improve communication with suppliers and reduce time to market Cut transaction costs

4. Ecommerce Applications 2007/8 Session 24 Measurable gains Reduce cost of transactions Better customer information and low cost of capture Targeting of special offers and promotions Reordering facilities promote loyalty 7/24 global service Shorter time to market Market specific: –Target 80%/20% - specials for key customers

5. Ecommerce Applications 2007/8 Session 25 Benefits – Virtual Commerce Virtual expansion is less costly than physical Easier publishing of detailed product information: –GM food information, health and diet tips, menu planning, special nutritional support Opportunity to diversify –Tesco sells CDs, videos, books and DVDs Partnership opportunities –Organic foods, shop at work

6. Ecommerce Applications 2007/8 Session 26 Business Risks Integration Chasm –Web orders and payment details –Customer details –Customer enquiries –Order Management System –Payments and Accounts System –Fulfillment and Distribution System WEB SYSTEM BACK-END BUSINESS SYSTEM

7. Ecommerce Applications 2007/8 Session 27 Costs Alternatives for SMEs DIY web pages and free ISP Application Service Provider + DIY Application Service Provider + Developer Web Agency Information is critical: quality and experiences News and tool reviews & Tech Offers www.zdnet.com http://www.verio.com/ www.shopcreator.co.uk www.venus.co.uk (Case Studies) http://www.davechaffey.com/E-commerce-Internet- marketing-case-studies/http://www.davechaffey.com/E-commerce-Internet- marketing-case-studies/

8. Ecommerce Applications 2007/8 Session 28 Barriers Business issues, NOT technology problems –Limited range of products –Prices not competitive –Difficult to navigate –Not enough information to buy –No receipt or confirmation report –Files too large – download problems –Products out of stock –Not delivered on time

9. Ecommerce Applications 2007/8 Session 29 Barriers: Micro and SME businesses E-commerce as an add on to bricks and mortar business Partnership and trust issues Access to merchant services Access to advice and expertise Fulfilment and Delivery issues Details of supporting remote purchasers – taxation, currency, regulations (law, packaging, H&S, contract law) Marketing

10. Ecommerce Applications 2007/8 Session 210 Finally There is no total solution E-commerce is constantly evolving, organic, in the process of becoming There is a real frontier for explorers Analysis is the key Pay attention to the details

11. Ecommerce Applications 2007/8 Session 211 Summary Broad Benefits Measurable gains –Virtual Commerce Business Risks Costs and Barriers –SME specific issues Examples