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Ecommerce Applications 2007/8 Session 11 What is E-commerce? A bird’s eye view Michael Zoumboulakis

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1 Ecommerce Applications 2007/8 Session 11 What is E-commerce? A bird’s eye view Michael Zoumboulakis mz@dcs.bbk.ac.uk

2 Ecommerce Applications 2007/8 Session 12 Contact Details Michael Zoumboulakis mz@dcs.bbk.ac.ukmz@dcs.bbk.ac.uk Programme Admin itapp@dcs.bbk.ac.ukitapp@dcs.bbk.ac.uk TMA/FMA Extensions ian@dcs.bbk.ac.ukian@dcs.bbk.ac.uk Access your email via: www.webmail.bbk.ac.ukwww.webmail.bbk.ac.uk SCSIS Systems Group sg@dcs.bbk.ac.uksg@dcs.bbk.ac.uk BBK ITS Support Team ccs-systems@bbk.ac.ukccs-systems@bbk.ac.uk Shopcreator login admin.shopcreator.net

3 Ecommerce Applications 2007/8 Session 13 Overview Why e-commerce now? What exactly is it? Early movers Marketplaces Differences and similarities

4 Ecommerce Applications 2007/8 Session 14 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: http://www.internetworldstats.com/stats.htm http://www.internetworldstats.com/stats.htm –Affordable security: SSL/https Secure Socket Layer, Stronger encryption –Interactive services, e.g. forums, database enabling, virtual office, advertising

5 Ecommerce Applications 2007/8 Session 15 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

6 Ecommerce Applications 2007/8 Session 16 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

7 Ecommerce Applications 2007/8 Session 17 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

8 Ecommerce Applications 2007/8 Session 18 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

9 Ecommerce Applications 2007/8 Session 19 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

10 Ecommerce Applications 2007/8 Session 110 Disinter mediation: Online Market places Manufacture Wholesale Value added resell Retail Customer Market place Business to Business (B2B) Business to Customer(B2C)

11 Ecommerce Applications 2007/8 Session 111 Example of Early Mover AuthorPublisherDistributorBookshopCustomer Traditional Book Shop Value Chain

12 Ecommerce Applications 2007/8 Session 112 Example of Early Mover Market place Author Publisher Distributor Bookshop Catalogue Customer Info. Payment Shipping Advantage catalogue Community Associates Networks

13 Ecommerce Applications 2007/8 Session 113 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

14 Ecommerce Applications 2007/8 Session 114 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

15 Ecommerce Applications 2007/8 Session 115 E-commerce differences Disinter mediation Personalisation Bundling Automation Value-added Discounts/ loyalty schemes Flexible store fronts Membership More choice

16 Ecommerce Applications 2007/8 Session 116 Summary E-commerce basics Early movers Marketplaces Differences and similarities

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