Wawasan Open University 3.1 Business Value of B2C E-commerce Identify business values to be gained from B2C e-commerce. Identify business values to be gained from B2C e-commerce. Explain how these business values are helping in implementation Explain how these business values are helping in implementation of e-commerce websites. of e-commerce websites. UNIT 3

Summary Rapid advancement in technology make it possible transaction to be done on the internet thus lead to creation of many e-commerce sites. Rapid advancement in technology make it possible transaction to be done on the internet thus lead to creation of many e-commerce sites. Cost of setting up web-site is getting cheaper Cost of setting up web-site is getting cheaper Computer literacy is rising Computer literacy is rising

E-commerce as a support to business The purpose is not sell directly but to support selling transaction process. The purpose is not sell directly but to support selling transaction process. To provide product information to potential buyers To provide product information to potential buyers Information can be accessed from anywhere and at anytime. Information can be accessed from anywhere and at anytime. Add value to business by enhancing the quality of product information. Add value to business by enhancing the quality of product information.

The function of E-commerce New Sales Channel New Sales Channel –Immediate delivery of certain product such as music, video, books, software, etc Direct Savings Direct Savings –Having CS dept is more expensive than to setup website and have customer check themselves the order status Time Saving Time Saving –Updated news on political, financial market, etc Brand and corporate image Brand and corporate image –Building the image thru technology Customer relationship Customer relationship –Interactive and more personalized New product capabilities New product capabilities –Customization based on the customer’s preference, needs, and wants. For example

B2C Business Models Way of classifying Business Models 1.Resembling bricks & mortar store 2.Virtual model Differentiate the business models by the number of parties involved in the business transaction See page 12 Trading Methods – Sell side – most of “e-tailer” e-tailer – Buy side – twist of traditional retailer based on demand and supply

Different kinds of B2C model Storefront Storefront –resemble physical store such as E-mall – malaysia’s e-mall E-mall – malaysia’s e-mallmalaysia’s e-mallmalaysia’s e-mall –Collections of the above. Image building Image building –Enhance public awareness and image of the company. Example Customer service – Customer service – –To provide post-sales support for current and past customers –CRM software is growing where its integrated with internet – =gen =genhttp://support.ap.dell.com/support/downloads/index.aspx?c=my&l=en&s =gen

Common Business Imperatives Customer visits to the websites, bringing the traffic Customer visits to the websites, bringing the traffic Global reach Global reach Reduce cost in transaction Reduce cost in transaction Shortening of business cycle Shortening of business cycle Attracting some ads dollar Attracting some ads dollar Create new product & services while customizing the existing ones Create new product & services while customizing the existing ones Exploiting new technology Exploiting new technology Offering new features & functionality that are difficult to copy in respond to increasing number of internet-based company Offering new features & functionality that are difficult to copy in respond to increasing number of internet-based company Versatile operation on the seller side such as convenience, user-friendly, quality and cheaper product/service. Versatile operation on the seller side such as convenience, user-friendly, quality and cheaper product/service. Internet business models continue to evolve. New and interesting variations can be expected in the future.

B2B business models Companies that supply products and services to other companies. Companies that supply products and services to other companies. Companies create & sell access to digital electronic markets. Companies create & sell access to digital electronic markets. An Exchanger such as An Exchanger such as Specific Industry Specific Industry

M-commerce Take the traditional e-commerce and leveraging new wireless technologies Take the traditional e-commerce and leveraging new wireless technologies –Mobile ticketing –Mobile payment – mobile vouchers, coupons –GPS –Mobile news, stocks, sports, 4D –Mobile banking –Auction – ction=press.view&recID=373 ction=press.view&recID=373http:// ction=press.view&recID=373