1. Scope of e-commerce

2. Learning objectives What is e-commerce? What are the e-challenges?
What are the strategies for e-commerce?

3. Learning objectives What is e-commerce? What are the e-challenges?
What are the strategies for e-commerce?

4. E-commerce definition
Technology-enabled transactions and technology-mediated exchanges of digitized information between parties (individuals or organizations) as well as the electronically based intra-organizational or inter-organizational activities that facilitate such exchanges

5. E-commerce definition
Scope of e-commerce:
Exchange of digitized information
Technology-enabled transactions
Technology-mediated relationships
Intra- & inter-organizational activities

6. E-commerce definition
Business originating from . . .
Business
Consumers
B2B
C2B
Business
And selling to . . .
B2C
P2P
Consumers

7. E-commerce categories
Business originating from . . .
Business
Consumers
Publishers order paper supplies from paper companies
Amazon orders from publishers
Consumers aggregate to bulk purchase from Amazon
Business
And selling to . . .
Consumers buy thousands of Harry Potter books from Amazon
Consumers resell copies on eBay
Consumers
Single chain (or converging categories) of e-commerce

9. E-commerce definition

10. E-commerce definition
Innovation
Consolidation
2006-future Reinvention
Technology-driven
Business-driven
Audience, customer, community-driven
Revenue growth focus
Earnings & profits focus
Audience & social network growth focus
Venture capital financing
Traditional financing
Merger & acquisition
Entrepreneurial
Traditional/old economy
Large pure Web-based firms
Disintermediation
Strengthening intermediaries
Proliferation of small online intermediaries
Perfect markets
Imperfect markets, brands, network effects
Online market imperfections
Pure-play
Bricks & clicks
New market (pure play); Retail (bricks & clicks)
First-mover advantages
Strategic follower
New market (1st mover)

11. Learning objectives What is e-commerce? What are the e-challenges?
What are the strategies for e-commerce?

12. Role of e-commerce managers
Strategic Management
Finance
Marketing
Entrepreneurship
Accounting
Operations and Logistics
Technology
New Media

13. Role of e-commerce managers
Set Vision
Establish Goals
Formulate Strategy
Drive Implementation
Be Accountable for Performance

14. Role of e-commerce managers
Vision: higher-order societal effects
Goals: performance targets that are measurable and in line with the company’s strategy & business life cycle (process vs outcome)
Strategy: tradeoffs
Implementation: technology & media knowledge
Accountability: performance & results

15. E-commerce challenges
Understanding customer evolution
Invest ahead of customer needs
Charting changing technology
Match technology choices to consumer tastes
Weathering the storm
Reassure stakeholders with clear vision, sensible business model, and profitable venture
Integrating offline & online activities
Align offline & online business activities, esp. advertising, branding, retail & online store design, service, warranties, returns (customer-facing activities)
Identifying key levers of competitive advantage
Reallocate resources as competitive advantage levers evolve
Expanding globally
Deal with complex internationalization issues

17. Learning objectives What is e-commerce? What are the e-challenges?
What are the strategies for e-commerce?

18. E-commerce strategies
Mission
Objectives
External Analysis
Internal (Company) Analysis
Strategy Formulation
Corporate
Business Unit
Functional
Operating
Implementation
Control and Monitoring
Classical Strategic Planning

19. E-commerce strategies
Sense and respond
Experimenting with intuitive, actionable, easy to implement ideas
Proactively soliciting feedback from customers

20. Simple rules Type Purpose Example How-to rules
They spell out key features of how a process is executed - "What makes our process unique?"
Akamai's rules for the customer service process: staff must consist of technical gurus, every question must be answered on the first call or , and R&D staff must rotate through customer service.
Boundary rules
They focus managers on which opportunities can be pursued and which are outside the pale.
Cisco's early acquisitions rule: companies to be acquired must have no more than 75 employees, 75% of whom are engineers.
Priority rules
They help managers rank the
accepted opportunities.
Intel's rule for allocating manufacturing capacity: allocation is based on a product's gross margin.
Timing rules
They synchronize managers with the pace of emerging opportunities and other parts of the company.
Nortel's rules for product development: project teams must know when a product has to be delivered to the leading customer to win, and product development time must be less than 18 months.
Exit rules
They help managers decide when to pull out of yesterday’s opportunities.
Oticon's rule for pulling the plug on projects in development: if a key team member-manager chooses to leave the project for another within the company, the project is killed.

21. E-commerce strategies
Position approach
Where should we be?
Resources approach
What should we be?
Simple rules approach
How to get there?

22. E-commerce strategies

23. E-commerce strategies
E-commerce strategy formulation process
Framing the Market Opportunity
Business
Model
Customer
Interface
Market Communication and Branding
Implementation
Metrics