E-Business

The Total Commitment

Darkest Xenon Fear NIIT, ISAS. First Semister 2010-11 Fall

E-Business Dr. Michael Stachiw - Format International, Inc.
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E-Business
Need: To extract from our business enterprises maximal return on our investment
Goal: Increase market share AND increase the number of markets we can sell our products Method: utilize E-business and E-Commerce techniques

E-Business Dr. Michael Stachiw - Format International, Inc.

E-Business
EC Introduction
Introduction The cycle of electronic commerce EC and Business Process EC statistics

EC Strategies

EC Business Models

4Cs strategy: Customer, Content, Community, Commerce Revenue streams EC development process B2C Virtual stores: physical and digital goods and services Infomediaries: Seller-side Informediaries: Buyer-side Infomediaries: B2B marketspace

Dr. Michael Stachiw - Format International, Inc. E-Business

Elements of E-business
Institution
Government Merchants Manufacturers Suppliers Consumers

Processes
Marketing Sales Payment Fulfillment Support

Electronic Business

Networks
Intranet Extranet Internet

Dr. Michael Stachiw - Format International, Inc. E-Business

E-Business Cycle
Access Searches Queries Surfing Customers Online Ads Online Orders Follow-on Sales

Standard Orders

Distribution Online: soft goods Delivery: hard goods

Electronic Customer Support

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Dr. Michael Stachiw - Format International, Inc. E- Business Growth

Seller

E-Business Processes Customer

Send info Phone, fax, e-mail Request info
Identify need Data sheets, catalogs, demos Web surfing Web searches, Web site web ads Newsgroups

Provide Info

Corporate Databases

Get customer

Find source

Net communities Provide info

Demos, reviews P.O.s

Evaluate offerings Credit cards, e-cash

Web site EDI

Fulfill Order Support

Deliver soft goods electronically Web site, phone, fax, e-mail, emailing list

Purchase Maintain, Repair, Operate

Dr. Michael Stachiw - Format International, Inc. E-Business

$1,400 $1,200 $1,000 $800 $600 $400 $200 $0

B2C B2B(Services) B2B(Goods)

1999 2000 2001 2002 2003

B2C: Business to Consumer B2B: Business to Business
Dr. Michael Stachiw - Format International, Inc. E-Business Growth Amongst Sectors 8

E-Business
E-Business Definition: Selling online, with or through a website, or by means of email. Ecommerce or electronic commerce is usually subdivided into B2B (business to business: wholesale), B2C (business to customer: retail) and C2C (customer to customer: auctions and information portals). * http://www.ecommerce-digest.com/ecommerce-definition.html

E-Business Dr. Michael Stachiw - Format International, Inc.

E-Business
E-Commerce Definition: (cont) Much more demanding and not usually served by off-the-shelf software is e-business or electronic business, where information technology is applied to all aspects of company's operations. In ebusiness are to be found systems for CRM (customer resource management), ERP (enterprise resource planning), SFM (sales force management), SCM (supply chain management) and EP (electronic procurement). * http://www.ecommerce-digest.com/ecommerce-definition.html
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Net Economy
1940s - 1980s Manufacturing to information economy Local - regional - national multinational Tangible brick-and-mortar assets: offices, shops, service centers, and warehouse 1990s - 21st Century Net economy: Information & Knowledge Communication and interactions Global and virtual Business Focus: Information, channel, flow, customer loyalty, reliable service, relationship Intangible assets: Knowledge, experiences, relationships
Dr. Michael Stachiw - Format International, Inc. E-Business

Advantages due to Net Economy

Changing customer demands Globalization Internet ubiquity New technology New marketplace and intermediacies

"The Internet is going to become a channel of distribution." -- The president of a major U.S. advertising agency Another firm advertise its virtual store as "The parking is easy, there are no checkout lines, we are open 24 hours a day, and we deliver right to your door." The trend toward point-of-sale moving into the home is accelerating.

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E-Services of Telephony and Hosting

Consumers: Everything on the Internet should to be free. Merchant: How can I make a profit if everything is free. Examples:
Free web browsers: Netscape Communicator and Internet Explorer Free email: Juno, mail.yahoo.com and hotmail.com Free Internet Access: Freeserve in Britain Free PC: eMachine and CompuServe; Free-PC Free web hosting: Geocities, Angelfire, Zoom

$250 Price Cost of a 3-minute Long Distance Call

All tangible and intangible items that can be copied adhere to the law of inverted pricing and become cheaper as they improve. Anticipate this cheapness in your pricing strategy and product/service development 12 strategy

$0
Dr. Michael Stachiw - Format International, Inc. E-Business

Internet Industry
Sports Malls Entertainment Newsfeed Publications Content and Activity Electronic Commerce Infrastructure Commerce Instruments Portals Commerce Servers

Consulting

Internet Economy

Client/Server Software

System Integration and Design

Backbone Router Access Equipment Server Computers

Internet Equipment

ISP Network Services

Browsers Web Server Application Servers Security Tools Internet Service Consumer Services Carriers
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Dr. Michael Stachiw - Format International, Inc. E-Business Internet Services

Hard goods:
Food Clothes Computer hardware and Electronics Packaged software

What Do people buy or sell on internet?

Soft goods (Bits delivered on-line)

Information
Database Publishing Research

Software
Computer games Java applets Application software

Services
Selling time:
Computer game play Consulting Legal and medical services

Selling information (subscriptions)

Dating services Legal and medical advice

Reservations and tickets

Airline tickets Event tickets Hotel and restaurant Dr. Michael Stachiw - Format International, Inc. E-Business 14

E-Business Creation Process

Personalization ROI Profiling Segmentation Experience modeling Expanded business opportunities Customer feedback Benchmark data Competitive analysis Market forces Usage statistics Customer needs Current capabilities Systems and networks Web architecture Business infrastructure Technology components Web technology strategy

E-Vision

Business Drivers

Technology Drivers

E-Business Strategy

Rapid Implementation
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E-Services Format International, Inc. Dr. Michael Stachiw -And E-vision

Web Experiences for Consumers

A many-to-many rather a one-to-many experience Fresh content Access to detail information Communities unbounded by space and time The multimedia appeal of TV A redefinition of privacy and identity Hyper-impulsivity: The web permits a closer conjunction of desire, transaction, and payment than any other environment.

E-Business & Services Dr. Michael Stachiw - Format International, Inc.

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User Generated Content

Dr. Michael Stachiw - Format International, Inc. Taking A pledge For Better Services

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Personalization

Taking A Pledge For Better Services Dr. Michael Stachiw - Format International, Inc.

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Information Density

Dr. Michael Stachiw Format International, Inc. Taking A pledge -For Better Services

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Interactivity

Dr. MichaelA pledgeFormat International, Inc. Taking Stachiw - for Better services

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Richness

Dr. Taking Stachiw - Format International, Inc. Michael A pledge For Better Services

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Global Reach

Dr. MichaelA pledge for Better Services Taking Stachiw - Format International, Inc.

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Universal Standards

Taking A pledge for Better Services Dr. Michael Stachiw - Format International, Inc.

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Ubiquity

Taking A pledge for better Service Dr. Michael Stachiw - Format International, Inc.

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Benefits of E-Auctions

Dr. MichaelE-Auction Facilities Stachiw - Format International, Inc.

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The Reverse Auction Process

Dr. Michael Stachiw - Format International, Inc.

E-Auction Without any Geographic bounds

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How E-Credit Cards Work

Dr. Michael Stachiw - Format International, Inc. E-banking Procedure

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Online Service Industries

Cyberbanking

Online securities trading

Online job market

Travel services
Dr. Michael Stachiw - Format International, Inc. Banking as E-business Service 28

E-Commerce Business Models

Affiliate marketing
Note the Sony logo at the top of this Web page www.howstuffworks.com
Dr. Michael Stachiw - Format International, Inc. SSL or Secure and Affiliated Services 29

Dr. Michael Stachiw - Formatcommodities Snaps of Services and International, Inc.

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M-Commerce
What

is Mobile Commerce? Mobile commerce is the term applied to online financial transactions - shopping or the electronic transfer of funds - using a mobile device. Mobile commerce transactions are being enhanced by developments in the world of mobile communication.
Dr. Michael Stachiw - Format International, Inc. E-Business extended 32

Mobile Transanctions Made Easy

Dr. Michael Stachiw - Format International, Inc. E-Business

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Electronic Data Interchange (EDI)

Standard format to exchange business data. EDI message is a string of data that represents price, product number, product name, etc. EDI message can be encrypted. EDI is one form of E-commerce, also include email, fax.

E-business Extended Dr. Michael Stachiw - Format International, Inc.

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Dr. MichaelE-business Extended EDA Stachiw - Format International, Inc.

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The End

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