E-Commerce Applications 2009/10 Session 11 E-Commerce Applications Dionisis Dimakopoulos and Ian Harrison

Ecommerce Applications 2009/10 Session 12 Class Schedule Session 1: Mon 11 Jan Session 2: Mon 18 Jan Session 3: Mon 25 Jan Session 4: Mon 01 Feb Session 5: Mon 08 Feb Session 6: Mon 15 Feb Self-Study Session: Mon 22 Feb – TMA Session 7: Mon 1 March (TMA Due) Session 8: Mon 8 March FMA Due: 2pm on Mon 19 April

Ecommerce Applications 2009/10 Session 13 Contact Details Dionisis Dimakopoulos: Ian Harrison: Programme Admin: ITApps Assessment: My Birkbeck: DCSIS Systems Group: BBK ITS Support: Shopcreator login:

E-Commerce Applications 2009/10 Session 14 What is E-commerce? A bird’s eye view

Ecommerce Applications 2009/10 Session 15 Overview Why e-commerce? What exactly is it? Early movers Marketplaces Differences and similarities

Ecommerce Applications 2009/10 Session 16 Context: Why now? Not new: –EDI (Electronic Data Interchange) –SET Protocol (Secure Electronic Transaction) So why now? –The Internet! –The Internet market is growing: check access projections: –Affordable security: SSL/https Secure Socket Layer, Stronger encryption –Interactive services, e.g. forums, database enabling, virtual office, advertising

Ecommerce Applications 2009/10 Session 17 Factors of Production Land Labour Capital Entrepreneurship Production of Goods and Services Customers

Ecommerce Applications 2009/10 Session 18 E-business: to conduct business electronically, but what does this mean? E-business what is it? e-business customer supplier bank carrier Good soft/hard Inventory Fulfillment Customer Service Marketing Measuring success

Ecommerce Applications 2009/10 Session 19 Buying and selling of goods and services over electronic networks, but what does that mean? E-commerce what is it? e-shop site customer business bank carrier Good soft/hard Currency Tax models Shipping Exceptions, returns, charge back And then: Inventory, Fulfilment, Customer Service, Marketing, Measuring success payment service e.g. Datacash bank ISP ASP WWW

Ecommerce Applications 2009/10 Session 110 Porter ’ s Value Chain Porter suggests that ‘competitive advantage’ grows out of the ‘value’ an organisation is able to create for its customers. Every firm is a collection of activities that are performed to design, produce, market, deliver and support its products or services. Two types of activities: –Primary activities. –Support activities.

Ecommerce Applications 2009/10 Session 111 Porter ’ s Value Chain Technology development Procurement Employee management Firm’s infrastructure Inbound logistics OperationsOutbound logistics Marketing and sales After sales service Support Activities Primary Activities Support Activities MARGIN

Ecommerce Applications 2009/10 Session 112 Drivers of Profitability

Ecommerce Applications 2009/10 Session 113 Operational Excellence Transformation of critical processes, product features Key questions: –What % of orders clean? –Are we reducing returns and credits from customers? –What % of customer problems resolved on 1 st contact? –How much customer information is visible (one screen). –Is inventory visibility increasing across the supply chain? Creating new forms of customer value – measures: –Increase in market shares and gross margins –Increase in new customer acquisition –Better retention of customers

Ecommerce Applications 2009/10 Session 114 Market places Manufacture Wholesale Value added resell Retail Customer Market place Business to Business (B2B) Business to Consumer(B2C) Where buyers and sellers meet there is an opportunity for an online market place

Ecommerce Applications 2009/10 Session 115 Online Market places Manufacture Wholesale Value added resell Retail Customer Market place Business to Business (B2B) Business to Customer(B2C) Where buyers and sellers meet there is an opportunity for an online market place

Ecommerce Applications 2009/10 Session 116 Disinter mediation: Online Market places Manufacture Wholesale Value added resell Retail Customer Market place Business to Business (B2B) Business to Customer(B2C)

Ecommerce Applications 2009/10 Session 117 Example of Early Mover AuthorPublisherDistributorBookshopCustomer Traditional Book Shop Value Chain

Ecommerce Applications 2009/10 Session 118 Example of Early Mover Market place Author Publisher Distributor Bookshop Catalogue Customer Info. Payment Shipping Advantage catalogue Community Associates Networks

Ecommerce Applications 2009/10 Session 119 Example of Early Mover Market place Author Publisher Distributor Bookshop Catalogue Customer Info. Payment Shipping Advantage catalogue Community Associates Networks Record of previous transactions: purchases, credit card info., shipping info. Targeted selling on entry 1 click for subsequent orders Account maintenance Imaginative credits Customer reviews Value added services

Ecommerce Applications 2009/10 Session 120 E-commerce - sameness Business objectives Systems Integration New clients and revenues Saving money, reducing overheads and increasing efficiency End to end customer care Payment systems Quality of customer information (database) Fulfilment system and stock database Logistics

Ecommerce Applications 2009/10 Session 121 E-commerce differences Disinter mediation Personalisation Bundling Automation Value-added Discounts/ loyalty schemes Flexible store fronts Membership More choice

Ecommerce Applications 2009/10 Session 122 Summary E-commerce basics Early movers Market places Differences and similarities