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Class 4

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E commerce market mechanisms
E commerce market mechanisms
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Class 4

  1. 1. Ecommerce vs. E-business , Trends driving E-business , Ebusiness framework
  2. 2. Ecommerce vs E-business
  3. 3. E-commerce • Use of Internet and Web to transact business • More formally: – Digitally enabled commercial transactions between and among organizations and individuals • E-commerce is buying and selling using an electronic medium. • It is accepting credit and payments over the net, doing banking transactions using the Internet, selling commodities or information using the World Wide Web and so on.
  4. 4. E-business • Digital enablement of transactions and processes within a firm, involving information systems under firm’s control • Does not include commercial transactions involving an exchange of value across organizational boundaries
  5. 5. E-business • E-Business in addition to encompassing E- commerce includes both front and back-office applications that form the engine for modern E-commerce. • It's about re-defining old business models, with the aid of technology to maximize customer value.
  6. 6. E-business • E-business involves not merely setting up the company website and being able to accept credit card payments or being able to sell products or services on time. • It involves fundamental re-structuring and streamlining of the business using technology by implementing enterprise resource planning (ERP) systems, supply chain management, customer relationship management, data ware housing, data mining, etc.
  7. 7. E-business • E-business includes e-commerce but also covers internal processes such as production, inventory management, product development, risk management, finance, knowledge management and human resources. • E-business strategy is more complex, more focused on internal processes, and aimed at cost savings and improvements in efficiency, productivity and cost savings.
  8. 8. Ecommerce vs E-business • E-commerce and e-business both address these processes, as well as a technology infrastructure of databases, application servers, security tools, systems management and legacy systems. • Both involve the creation of new value chains between a company and its customers and suppliers, as well as within the company itself
  9. 9. Ecommerce vs E-business • Consider the case of a company that allows its customers to – check the status of their orders online – allows its employees to check on their vacation time online. – It might also allow the suppliers to remotely logon to its database through the internet and check on orders and inventory. • In this case, we can see that such a company is utilizing the internet for more than just buying and selling
  10. 10. Ecommerce vs E-business • E-commerce is the online selling component of a web site. E-business is the integration of a company's activities including products, procedures, and services with the Internet. • You turn your company from a business into an e-business when you integrate your sales, marketing, accounting, manufacturing, and operations with your web site activities. • An e-business uses the Internet as fully integrated channel for all business activities.
  11. 11. Not yet an e-business • You visit a retailer's web site and buy a shirt. When the shirt arrives it is in the wrong size. • You decide to return the shirt at the store's retail outlet instead of mailing it back to the vendor. • However, when you go to the store you are told that they cannot take returns of products sold from their web site. • Since the web site is not integrated with the rest of their business activities this company is not yet an e-business.
  12. 12. Ecommerce vs E-business • E-business does not consist of simply creating a corporate website; rather e-business involves using the Internet to: – Attract, retain, and satisfy customers buying your company's products and services. • Streamline your supply chain, manufacturing, and procurement systems to deliver the right products and services to customers more efficiently. • Automate your corporate business processes to reduce cost and improve efficiencies through self- service.
  13. 13. Trends driving E-business
  14. 14. Major Industry trends • Consumer trends • Service/process trends • Organizational trends • Enterprise technology trends
  15. 15. Consumer Trends • Speed of service • Self-service • Integrated solutions, not piecemeal products
  16. 16. Service/Process Trends • Convergence of sales & service: customization and integration • Ease of use: make service consistent and reliable • Flexible fulfilment and convenient service delivery: streamline your supply chain
  17. 17. Organizational Trends • Contract manufacturing: becoming brand intensive, not capital intensive • Retain the core, outsource the rest: Business process outsourcing • Increasing process transparency and visibility • Continuous innovation and employee retention
  18. 18. Enterprise Technology Trends • Enterprise applications: Connect the corporation • Infrastructure convergence: Increasing melding of voice, data and video • Multichannel integration: computer telephony integration and voice recognition • Wireless applications enter the mainstream • Leveraging legacy investment: The rise of middleware for systems integration
  19. 19. Business Drivers of the New Economy • Global financial interdependence • Deregulation • Unrestricted capital flows • Digitization • Global communication and transportation • New geopolitical realities
  20. 20. Key Business Challenges • Agility and Speed • Focus on core competencies and processes • Customer centrality • Mass customization • Flexible IT architecture • Interoperability of infrastructure and applications portfolios
  21. 21. Trends that will drive e-commerce strategy • Higher percentage of sales from existing online shoppers. • Fourth quarter remains dominant cyber-season • Flash sales sites like Gift Groupe and Woot • Online loyalty programs • The tablet is driving mobile shopping
  22. 22. Trends Driving e-Commerce in 2014 • Mobile • Personalization • Fewer Options • Low Latency, High Availability • Enhancing the Customer Experience • Cash On Delivery • Proprietary logistics network • Social Customer Service
  23. 23. E-business framework
  24. 24. The E-Business Network Intranet and Extranet E-Business Network Networking Vendors Network Software Network Hardware Enabling Technology E-Commerce Applications
  25. 25. E-Business Info Structure • Scalability • Reliability • Hosting • Storage • Security • Web Servers • Databases • Middleware • App Servers • ASP
  26. 26. E-Business Infra Structure • CRM • ERP • EAI (Enterprise application Integration) • E-Procurement • Financial Control • Business Intelligence • Supply Chain Management
  27. 27. E-Business Design • Value Proposition • Customer Segments • Customer Priorities • Organisational Capabilities
  28. 28. E-Business Interlocking Layers E- Business Design E-Business Infrastructure E-Business Infostructure
  29. 29. Classic Framework for Strategy Management
  30. 30. A Comprehensive Framework
  31. 31. EC Framework • An EC Framework—supports five policymaking support areas – People – Public policy – Marketing and advertisement – Support services – Business partnerships
  32. 32. The Dimensions of Electronic Commerce

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