PPT Slides by Dr. Craig Tyran & Kraig Pencil E-Commerce: Supporting External and Internal Linkages Part 1 MIS 320 Kraig Pencil Summer 2014

PPT Slides by Dr. Craig Tyran & Kraig Pencil Game Plan Introduction Supporting Internal Linkages –Intranets Supporting External Linkages –B2C: Business to Consumer –C2C: Consumer to Consumer –B2B: Business to Business (Part 2 Notes)

PPT Slides by Dr. Craig Tyran & Kraig Pencil A. Introduction 1.E-Commerce –A very hot business topic! 2.Definition –Buying and selling of products, services, and information which is enhanced via computer networks –May also include Internal business communications Customer service Info sharing with business partners

PPT Slides by Dr. Craig Tyran & Kraig Pencil A. Introduction 3.Enables efficient value chain linkages and relationships e.g., External linkage from customer to supplier: Order information Supplier Corporate Customer Order information

PPT Slides by Dr. Craig Tyran & Kraig Pencil B. History 1.E-commerce applications have existed since the early 1970s –e.g., electronic funds transfer, electronic data interchange EDI 2.But … There were significant limitations in the “old days” –Network reliability –Compatibility –Lack of technical standards –Limited computing power

PPT Slides by Dr. Craig Tyran & Kraig Pencil B. History (cont.) 3. Things changed in the 1990’s –Commercialization of the Internet –“Price/performance” of IT improved (remember Moore’s Law?) –Introduction of WWW  E-commerce exploded !!!

PPT Slides by Dr. Craig Tyran & Kraig Pencil C. Intranets 1.Defn: –Private network for one organization that uses Internet software and protocols “Private Internet” Typically involves WWW-based applications 2.Key goal: –Support internal value chain linkages 3.Example –WWU Web4U

PPT Slides by Dr. Craig Tyran & Kraig Pencil Intranet: WWU

PPT Slides by Dr. Craig Tyran & Kraig Pencil C. Intranets (cont.) 4. One key advantage: Save $$$ and time!! –Without intranet: Large organizations –  Spend $50-$100/yr/person to distribute paper-based internal documents Time lag to share information –e.g., product inventory status to salespeople in the field –With intranet: Intranet approach is much cheaper Rapid information sharing ROI on intranet projects can exceed 1000% Payback can be 6-12 weeks

PPT Slides by Dr. Craig Tyran & Kraig Pencil D. Business-to-Consumer Applications (B2C) 1.B2C applications –Support external linkages with consumers –Foster trading between a business and a consumer (“on-line retail”) –Examples? 2.E-commerce jargon E-tailer “Pure EC” “Clicks and mortar” M-commerce E.g., cell phone, PDA Disintermediation Channel conflict Order Sales Info

PPT Slides by Dr. Craig Tyran & Kraig Pencil Disintermediation If distribution channels get bypassed, then there can be “channel conflict”

PPT Slides by Dr. Craig Tyran & Kraig Pencil D. Business-to-Consumer Applications (B2C) -- cont 3. B2C: What is a good fit? –Digital products Can be described/delivered electronically Examples?? –Commodity items Items with known/uniform features, rather than “high touch” items Would dentures be a good item to sell over the WWW? –In some cases … Effective to allow customer to “shop online and buy in a store” e.g., Automobiles, REI merchandise

PPT Slides by Dr. Craig Tyran & Kraig Pencil E. WWW Advertising 1. WWW advertising: Interaction –Information/interaction matrix (see figure)

PPT Slides by Dr. Craig Tyran & Kraig Pencil Advertising: Information/Interaction Matrix Traditional ads (e.g., newspaper) Catalogs, Infomercials Phone sales Personal sales visit Where can WWW sites fit on this matrix??? Information Content High Low Personal Interaction HighLow

PPT Slides by Dr. Craig Tyran & Kraig Pencil Advertising: Information/Interaction Matrix Information Content High Low Personal Interaction HighLow Few Web pages Static product lists / catalog Static – same for everyone Many Web pages Dynamic product database Many links Static – same for everyone Key-word searches Product listings / catalog Online purchase DonPencil.com Personal login or cookies Product and personal history databases Key-word searches Analyzes individual history/preferences Infinitely personalized pages Shopping cart / Online purchases / Wish lists Amazon.com

PPT Slides by Dr. Craig Tyran & Kraig Pencil 2. WWW advertising: Interaction (cont.) –Lower interaction sites (e.g., local plant nursery ) –Higher interaction sites (e.g., Customized suggestions, messages 3. Personalization –Track individual consumer behavior –Use information technology to customize the interactions E.g., Provide information of relevance to customer; Target the ads, promotions, recommendations E. WWW Advertising

PPT Slides by Dr. Craig Tyran & Kraig Pencil Personalization Examples: Amazon.Com

PPT Slides by Dr. Craig Tyran & Kraig Pencil 4. Learning from a WWW site: WWW Analytics –It is possible to capture web browsing activity at site –Lots of marketing information!!! –Info can be used to analyze behavior of visitors e.g., data mining Can be useful for personalization, market research –Google Analytics ( ) –Sample report for e.g., visits, page views, referring sites, visits by location, length of visit, conversion rates (% that go to check out/make order), etc. E. WWW Advertising

PPT Slides by Dr. Craig Tyran & Kraig Pencil

What do Google Analytics Look Like for a Class Website?

PPT Slides by Dr. Craig Tyran & Kraig Pencil

5. Viral marketing –“Word of mouth” advertising on the WWW –Create something that people may pass along to others –Generate awareness at minimal cost –Examples ads –Hotmail (Attracted 150,000 subscribers in first week … with a limited advertising budget) Videos –Blendtec -- “Will it blend” (Made Blendtec famous) –Ford Sportka -- Bird: (A bit edgy …) –Ford Sportka – Cat (Too edgy?) E. WWW Advertising

PPT Slides by Dr. Craig Tyran & Kraig Pencil Viral Marketing: Hotmail

PPT Slides by Dr. Craig Tyran & Kraig Pencil Viral Marketing: Videos

PPT Slides by Dr. Craig Tyran & Kraig Pencil F. Consumer-to-Consumer Applications (C2C) 1.C2C applications –Foster trading between consumers (and/or non-business entities) 2.Examples –e.g., Purchase goods: (“Double Play Ticket Window”), seattle.mariners.mlb.com (“Ticket Market”) –e.g., Share/trade information:

PPT Slides by Dr. Craig Tyran & Kraig Pencil C2C Example: Season Ticket Holders Can Sell Spare Baseball Tickets

PPT Slides by Dr. Craig Tyran & Kraig Pencil C2C Example: IT-related Information from Experts

PPT Slides by Dr. Craig Tyran & Kraig Pencil References: Figures Figures used on Matrix slide: – – – images/NTL1494dtl-main.jpghttp://nordictrack.speedera.net/ images/NTL1494dtl-main.jpg – –