1. ELC 200 Day 11

2. Awad –Electronic Commerce 2/e © 2004 Pearson Prentice Hall 2 Agenda Assignment #3 Corrected –6 A’s, 1 B, 1 F and 2 non-submit Assignment #4 due Next Quiz is Next class –Chap 4-7 of text –15 M/C (60 Points), 4 Short Essay (40 Points) – Extra credit ---the story of “bob.com” Clue “Bob Antia” Syllabus Change –I will cover Chap 16 Today (I lied!) –Allows students to begin work on eCommerce Initiative Framework Today is a discussion on Launching a Business on the Internet

3. Chapter 16 Launching a Business on the Internet

4. Awad –Electronic Commerce 2/e © 2004 Pearson Prentice Hall 4 OBJECTIVES Introduction of E- Business Life Cycle 1)Planning 2)Hardware, Software & Security 3)Design Phase 4)Marketing 5)Fulfillment 6)Maintenance & Enhancement Launching a Business on Internet: Objectives 1 2 34 5 6

5. Awad –Electronic Commerce 2/e © 2004 Pearson Prentice Hall 5 PLANNING (Phase 1) Strategizing Reality –Evaluate a company’s position & competition –Set a course for years ahead –Develop implementation plan –Determine how to achieve goals Value an internal “champion” Launching a Business on Internet: Introduction of E-Business Life Cycle

6. Awad –Electronic Commerce 2/e © 2004 Pearson Prentice Hall 6 E-BUSINESS vs. TRADITIONAL BUSINESS FactorE-BusinessTraditional Barriers to Entry Time & Space Limits; Limited Financial Capital; Unique Products Location Requirements Basis of Competition Innovative ProductsImproved Products Basis of Control CustomerManufacturer Launching a Business on Internet: Introduction of E-Business Life Cycle - Planning

7. Awad –Electronic Commerce 2/e © 2004 Pearson Prentice Hall 7 E-BUSINESS vs. TRADITIONAL BUSINESS (Cont’d) FactorE-BusinessTraditional OrganizationSpecialized TeamsHierarchical Departments Marketing/ Sales Mass PersonalizationMass Advertising PricingTransaction Costs on a Sliding Scale Production Costs Launching a Business on Internet: Introduction of E-Business Life Cycle - Planning

8. Awad –Electronic Commerce 2/e © 2004 Pearson Prentice Hall 8 Developing a Strategy (Phase 1) Know yourself, your product amd you environment –1. Who will buy the product? –2. How familiar the business is with the Internet? –3. Is the business planning to be a short-termer or a long-termer? –4. Who are the competitors? –5. How good will the product(s) look? –6. How will the business present the product offers? –7. How will one manage and process transactions? –8. How will the product be shipped? –9. How will the business handle unexpected change? –10. How will one get and use feedback?)

9. Awad –Electronic Commerce 2/e © 2004 Pearson Prentice Hall 9 STRATEGIZING (still phase 1) Know Your Audience Become Internet Savvy Determine Long-term vs. Short-term Selling Define and Constantly Re-evaluate Your Competitors Evaluate Website Appearance –Be objective! Launching a Business on Internet: Introduction of E-Business Life Cycle - Planning

10. Awad –Electronic Commerce 2/e © 2004 Pearson Prentice Hall 10 STRATEGIZING (Cont’d) Select Product Range Manage Transaction Effectively & Efficiently Design Shipment Process Be Prepared for Unexpected Changes Launching a Business on Internet: Introduction of E-Business Life Cycle - Planning

11. Awad –Electronic Commerce 2/e © 2004 Pearson Prentice Hall 11 ULTIMATE STRATEGY Vision –What is your business trying to achieve? Resources –How much can your business afford to build the right Website? Culture –Is your business politically amenable for coordinating efforts to support e-business? Launching a Business on Internet: Introduction of E-Business Life Cycle - Planning

12. Awad –Electronic Commerce 2/e © 2004 Pearson Prentice Hall 12 DECIDING ON TYPES OF SITE Community Content Commerce –Business-to-business Back-end of e-commerce –Business-to-consumer Front-end of e-commerce –Consumer-to-consumer One consumer contacts another to transact business Launching a Business on Internet: Introduction of E-Business Life Cycle - Planning

13. Awad –Electronic Commerce 2/e © 2004 Pearson Prentice Hall 13 PLANNING CONSIDERATIONS Create & Maintain a Competitive Edge Reduce Operational Costs Improve Employee Communication & Satisfaction Find New Markets for Products & Services Improve relationships with Partners Launching a Business on Internet: Introduction of E-Business Life Cycle - Planning

14. Awad –Electronic Commerce 2/e © 2004 Pearson Prentice Hall 14 PLANNING CONSIDERATIONS (Cont’d) Create Distinct Distribution Channels Ensure Customer Satisfaction Adopt Sense of Entrepreneurship Improve Supply-Chain Management Launching a Business on Internet: Introduction of E-Business Life Cycle - Planning

15. Awad –Electronic Commerce 2/e © 2004 Pearson Prentice Hall 15 HARDWARE, SOFTWARE & SECURITY (Phase 2) Hardware Specifications Hardware / Software Pitfalls Security for Reliability Launching a Business on Internet: Introduction of E-Business Life Cycle – Hardware, Software & Security

16. Awad –Electronic Commerce 2/e © 2004 Pearson Prentice Hall 16 PROMOTING ONLINE SECURITY Control access to web server Update server software & encoding security measures Use firewalls Monitor traffic & detect irregularities Assign a webmaster Launching a Business on Internet: Introduction of E-Business Life Cycle – Hardware, Software & Security

17. Awad –Electronic Commerce 2/e © 2004 Pearson Prentice Hall 17 DESIGN (Phase 3) Promote presence to customers Secure site quality & effectiveness Keep website up to date Launching a Business on Internet: Introduction of E-Business Life Cycle - Design

18. Awad –Electronic Commerce 2/e © 2004 Pearson Prentice Hall 18 WEB STOREFRONT Enables customers to find products quickly –8-second rule Sends the order to fulfillment center securely Generates a printable receipt Launching a Business on Internet: Introduction of E-Business Life Cycle - Design

19. Awad –Electronic Commerce 2/e © 2004 Pearson Prentice Hall 19 WEB SITES PROGRAMS Database Server Store Administrator Catalog Builder Shopping Cart Order-processing System Launching a Business on Internet: Introduction of E-Business Life Cycle - Design

20. Awad –Electronic Commerce 2/e © 2004 Pearson Prentice Hall 20 DESIGN CONSIDERATIONS User Control & Freedom Consistency & Standards Recognition Aesthetic Design Recovery Help Desk Launching a Business on Internet: Introduction of E-Business Life Cycle - Design

21. Awad –Electronic Commerce 2/e © 2004 Pearson Prentice Hall 21 MARKETING (Phase 4) Providing Good Services Advertising Knowing the Customers Selling Products & Services Following Up Launching a Business on Internet: Introduction of E-Business Life Cycle - Marketing

22. Awad –Electronic Commerce 2/e © 2004 Pearson Prentice Hall 22 MARKETING CONSIDERATIONS Focus on niche market Know your visitors Integrate online sales with other channels Provide a fast, easy payment process Launching a Business on Internet: Introduction of E-Business Life Cycle - Marketing

23. Awad –Electronic Commerce 2/e © 2004 Pearson Prentice Hall 23 FULFILLMENT (Phase 5) Packing up the merchandise Shipping the merchandise Answering questions about orders Sending out bills Following up with customers Tax angle Launching a Business on Internet: Introduction of E-Business Life Cycle - Fulfillment

24. Awad –Electronic Commerce 2/e © 2004 Pearson Prentice Hall 24 INVENTORY ISSUES Product Availability Out of Stock Notice Back Orders Processing Orders Controls Launching a Business on Internet: Introduction of E-Business Life Cycle - Fulfillment

25. Awad –Electronic Commerce 2/e © 2004 Pearson Prentice Hall 25 MAINTENANCE & ENHANCEMENT (Phase 6) Maintenance –Keeping a systems on course based on initial design Enhancement –Implementing upgrades to improve system’s productivity Bottom Line – Customer Attraction & Retention Launching a Business on Internet: Introduction of E-Business Life Cycle – Maintenance & Enhancement

26. Awad –Electronic Commerce 2/e © 2004 Pearson Prentice Hall 26 MANAGING CUSTOMER FEEDBACKS Set up FAQs Increase information access Avoid using large images Answer e-mail promptly Launching a Business on Internet: Introduction of E-Business Life Cycle – Maintenance & Enhancement

27. Awad –Electronic Commerce 2/e © 2004 Pearson Prentice Hall 27 CUSTOMER SERVICE CONSIDERATIONS Order Update Order Status Look-up & Notification Technical Support Localization Customer Expectations Launching a Business on Internet: Introduction of E-Business Life Cycle – Maintenance & Enhancement

28. Awad –Electronic Commerce 2/e © 2004 Pearson Prentice Hall 28 SWOT An analytic method used to determine competitive advantage –Strengths –Weakness –Opportunities –Threats

29. Awad –Electronic Commerce 2/e © 2004 Pearson Prentice Hall 29 STRENGHTS Define areas you excel in –What will your initiative do better than others? –What are your core competencies (things you are good at)? –Do you have a clear strategic direction? –What resources do you have that competitors may not have?

30. Awad –Electronic Commerce 2/e © 2004 Pearson Prentice Hall 30 WEAKNESSES Evaluate your liabilities –Where are you weak in relation to your competitors? –What skills and resources are you lacking? –What needs to be improved in your initiative? –Why were not able to improve the weaknesses you discovered?

31. Awad –Electronic Commerce 2/e © 2004 Pearson Prentice Hall 31 OPPORTUNITIES Analyze your customers and market potential –Identify favorable market conditions –Identify emerging technologies in support of your initiative –Identify changes in legislation and public policy that will have a supporting effect on your initiative

32. Awad –Electronic Commerce 2/e © 2004 Pearson Prentice Hall 32 THREATS Analyze potential challenges –What are your obstacles? –What are your competitors doing? –Identify changes in legislation and public policy that will have an adverse effect on your initiative.

33. Awad –Electronic Commerce 2/e © 2004 Pearson Prentice Hall 33 SWOT Analysis