The University of Tulsa Professor: Akhilesh Bajaj Ecommerce:

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Presentation transcript:

The University of Tulsa Professor: Akhilesh Bajaj Ecommerce: MIS 7003 MIS Core Course The MBA Program The University of Tulsa Professor: Akhilesh Bajaj Ecommerce: The On-Demand Delivery Services Model for E-Commerce © Akhilesh Bajaj, 2000, 2002, 2003, 2004. All Rights Reserved.

Introduction What are the 3 different ODDS models? Are they really different? What are the content, commerce & community aspects of web-based models? What are the advantages of controlling the delivery logistics of the product? -control delivery costs as price of transport goes up -competitive advantage in guaranteed delivery -CRM: learn more about customer

Business Models What was the business model of ShopLink.com? -monthly subscription, chillpacks, drycleaning, empty cartons, small geographically focused area, large orders What was the business model of Staples.com? -own some trucks, sell across country, lots of products What was the business model of Kozmo.com -Impulse purchases, uncomplicated orders, small value transactions, geographically very focused, owned own fleet of messengers.

CRM Leverage ODDS A: Personal delivery specialist, learn about customers, track their purchases, get ancillary services like drycleaning, package delivery, etc ODDS B: Track purchases online, since a different delivery person each time. Learn their needs, and recommend products? ODDS C: No real customer service, since many one-time purchases. Could they have tracked impulse purchases? What kind of customer service could they have done?

Managing Delivery Logistics Lessons: Extending the deadline a little bit can reduce delivery costs a lot Demand needs to be relatively predictable for having your own delivery services If we have other channels (like stores) then combining data across channels can add significant value to the customer Staples.com delivers non-perishables and can outsource delivery Getting the product from different stores and then delivering to different customers can complicate things immensely (kozmo.com) A minimum order size or a delivery fee are required to make the models work 7. A geographically dense area is useful as well 8. Intelligent routing software is required to make the models work

Conclusion The ODDS models represent a unique method of providing services, enabled by customers making their demands known via the web Can we think of any business ideas that would work using these models? How would we apply the lessons learned to our new business venture?