Welingkar’s Distance Learning Division
Driving the E-Commerce Revolution
We Learn – A Continuous Learning Forum
Electronic Commerce Activities
Activities
Product or service search Price search
payments Actual purchase
Electronic Commerce Activities -2
• Direct selling of goods and/or services over the internet
• Provision of company homepage
• Advertising• Priced Information• Agent Services• Research and
Developement
Niche, Broad or Target Customer
• Niche - targeting a single customer or a group of customers
• Broad – entire population of appropriate customers
Targeting StrategyN
iche Focus Internet Differentiation
e.g., Jb mountainbikes.com
Focus Internet cost leadership
e.g., Southwest.com
Broad Internet Differentiation
e.g., Old tools.com
Broad Internet cost leadership
e.g., Amazon.com
Differentiation Cost Leadership
Bro
ad
Cu
sto
me
r
seg
men
t
Strategy
Differentiation (features & services)
• Developing unique products/services & brand building
• Providing value added services and customisation through the internet
• Cost advantage by reducing transaction costs through appropriate use of internet
Major Modes Found in E- commerce -1
Four modes:• Revenue generating
modes• Product delivery
modes • Payment collection
modes• Operating modes
Major Modes Found in E- commerce - 2
i. Revenue Generating Modes
• Profit from purchase/ sale of goods
• Agent fees • Income from priced
packaged information• Advertising revenues• Priced information• Income from sale of
aggregated marketing information
Major Modes Found in E- commerce - 3
(ii) Product Delivery Modes
• Physical Maintenance Repairs Replacements Other types of follow-up
activity
• virtual
Major Modes Found in E- commerce - 4
(iii) Payment Collection Modes
• Physical
• Virtual
Major Modes Found in E- commerce - 5
(iv) Operating Modes
• Completely outsourced operations
• Completely self-handled operations
• Hybrid operations
Matrix of E – Commerce Models
• Principal Business Models:• B2B• B2C• C2B• C2C• Single or multiple individual consumers
• Single or multiple businesses• The nature of delivery• Customisation• Seller characteristics• Price selling mechanism
Business to Consumer (B2C) Commerce
• Electronic commerce and technology• Consumer behaviour and choice• Business processes and marketplace
competition
Retailing on www• Service efficiency• Personalisation• Socialisation• Look & feel of site• Incentives• security
Elements & Resources impacting Electronic Commerce Changes
• Network practices• Cultural change• Technology• Cost and Time Frame• Management Work
Process Consultants• Integrators• vendors
Opportunity Development for E-Commerce Stages
Opportunity development
Step 1 : look for business opportunities
Step 2 : map the opportunities & functions Step 3 : Require
opportunities with executives
Map all the three steps & form an e –commerce opportunity framework
Factors in Decision Making Strategy
Business Goal
Technology ProcessesApplication
(Final system)
Developing an E – Commerce strategy
Focus on high return
Think fresh on alternatives
Prioritize alternatives
Involve appropriate parties
Good understanding of technology by all involved
Develop a phased approach
Document business case
Develop & agree budget
E – COMMERCE
STRATEGY
Ensure management support
International Strategy Development
Distribution
Model
Product
Suitability
Pricing &
legal factors
LocalisationThe
Transaction
Fulfillment
and support
Direct/
Indirect
Shipping
delivery & support
Purchase & acquisition
Consulting & education
for change
Transaction &
customisation
Agreements & pricing
Does product meet the local needs ?
INTERNATIONAL
E-COMMERCE
Client/server Paradigm
Client
program
Server
program
Server
Result
TCP/IP
Domain Name System
mil ZWNET AB
113.37.53.181
cn
rakr
gun
hg
USID
162.79.21.123
com
edugov intIn-addr
181
53
37
112
arpaORG
Reverse domain
Generic domain Country domain
Root-Level
Painter
Metadata
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Meta-Data
sales
sales
FTP
User
Interface
Protocol
Interpreter
Data
Transfer unit
Protocol
interpreter
Data
Transfer
unit
TCP/IP
Data connection
Control connection
Local
disk
Remove
disk
client server
The Basic Website Communication Proce
Web Server
HTTP requestGet HTML file
Web Browser File system
Returned HTML file
Basic Data Configuration
Web browser Web server CGI SCRIPT Back-end Application