Scope of e-commerce

Home Based Part Time Jobs at www.earnrupees4you.com

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

Home Based Part Time Jobs at www.earnrupees4you.com

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

Home Based Part Time Jobs at www.earnrupees4you.com

E-commerce definition
Technology-enabled transactions and technologymediated 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

Home Based Part Time Jobs at www.earnrupees4you.com

E-commerce definition
Scope of e-commerce: 1. Exchange of digitized information 2. Technology-enabled transactions 3. Technology-mediated relationships 4. Intra- & inter-organizational activities

Home Based Part Time Jobs at www.earnrupees4you.com

E-commerce definition
Business originating from . . .
Business Business Consumers

B2B

C2B

Consumers

B2C

P2P

Home Based Part Time Jobs at www.earnrupees4you.com

E-commerce categories
Business originating from . . .
Business Business
Publishers order paper supplies from paper companies Amazon orders from publishers

Consumers

Consumers aggregate to bulk purchase from Amazon

Consumers

Consumers buy thousands of Harry Potter books from Amazon

Consumers resell copies on eBay

Single chain (or converging categories) of e-commerce

Home Based Part Time Jobs at www.earnrupees4you.com

Home Based Part Time Jobs at www.earnrupees4you.com

E-commerce definition
E-COMMERCE vs TRADITIONAL COMMERCE Key elements Value Creation Strategy E-commerce Information Sense and respond Simple rules Competitive edge Speed Competitive force Low barriers of entry Power of customers Resource focus Demand side Customer interface Screen-to-face Communication Technology-mediated channels Accessibility 24 x 7 Customer Self-service interaction Consumer behavior Personalization One-to-one marketing Promotion Word of mouth Product Commodity
Home Based Part Time Jobs at www.earnrupees4you.com

Traditional commerce Product/Service Classical Quality/Cost Power of suppliers Product substitution Supply side Face-to-face Personal Limited time Seller influenced Standardization Mass/one-way marketing Merchandising Perishables, feel & touch

E-commerce definition
1995-2000 Innovation Technology-driven Revenue growth focus Venture capital financing Entrepreneurial Disintermediation Perfect markets Pure-play First-mover advantages 2001-2006 Consolidation Business-driven Earnings & profits focus Traditional financing Traditional/old economy Strengthening intermediaries Imperfect markets, brands, network effects Bricks & clicks Strategic follower 2006-future Reinvention Audience, customer, community-driven Audience & social network growth focus Merger & acquisition Large pure Web-based firms Proliferation of small online intermediaries Online market imperfections New market (pure play); Retail (bricks & clicks) New market (1st mover)

Home Based Part Time Jobs at www.earnrupees4you.com

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

Home Based Part Time Jobs at www.earnrupees4you.com

Role of e-commerce managers

Strategic Management

Finance

Marketing

Entrepreneurship

Accounting

Operations and Logistics

Technology

New Media

Home Based Part Time Jobs at www.earnrupees4you.com

Role of e-commerce managers

Set Vision

Establish Goals

Formulate Strategy

Drive Implementation

Be Accountable for Performance Home Based Part Time Jobs at www.earnrupees4you.com

Role of e-commerce managers

Vision: higher-order societal effects Goals: performance targets that are measurable
and in line with the companys strategy & business life cycle (process vs outcome)

Strategy: tradeoffs Implementation: technology & media knowledge Accountability: performance & results

Home Based Part Time Jobs at www.earnrupees4you.com

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
Home Based Part Time Jobs at www.earnrupees4you.com

Home Based Part Time Jobs at www.earnrupees4you.com

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

Home Based Part Time Jobs at www.earnrupees4you.com

E-commerce strategies
Mission
Objectives

External Analysis

Strategy Formulation Corporate Business Unit Functional Operating

Internal (Company) Analysis

Implementation

Control and Classical Monitoring Home Based Part Time Jobs at

Strategic Planning

www.earnrupees4you.com

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

Home Based Part Time Jobs at www.earnrupees4you.com

Simple rules
Type
How-to rules

Purpose
They spell out key features of how a process is executed "What makes our process unique?" They focus managers on which opportunities can be pursued and which are outside the pale. They help managers rank the accepted opportunities.

Example
Akamai's rules for the customer service process: staff must consist of technical gurus, every question must be answered on the first call or e-mail, and R&D staff must rotate through customer service. Cisco's early acquisitions rule: companies to be acquired must have no more than 75 employees, 75% of whom are engineers. Intel's rule for allocating manufacturing capacity: allocation is based on a product's gross margin.

Boundary rules

Priority rules

Timing rules

They synchronize managers with the pace of emerging opportunities and other parts of the company.
They help managers decide when to pull out of yesterdays opportunities.

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

Oticon's rule for pulling the plug on projects in development: if a key team membermanager chooses to leave the project for another within the company, the project is killed. Home Based Part Time Jobs at www.earnrupees4you.com

E-commerce strategies
Position approach
Where should we be?

Resources approach
What should we be?

Simple rules approach

How to get there?
Home Based Part Time Jobs at www.earnrupees4you.com

E-commerce strategies
Position
Strategic Logic
Establish Identify

Resources
Leverage

Simple Rules
Pursue Jump

position

resources

opportunities

an attractive
Establish

Strategic Steps

market Locate a defensible position Fortify and defend

Where

a vision Build resources Leverage across markets

What

into the confusion Keep moving Seize opportunities Finish strong

How

Strategic Question Source of Advantage Works Best In Duration of Advantage Risk Performance Goal

should we be?

should we be?

should we proceed?

Unique,

valuable position with tightly integrated activity system changing, wellstructured markets

Unique,

valuable, inimitable resources changing, wellstructured markets

Key

processes and unique simple rules changing, ambiguous markets

Slowly

Moderately

Rapidly

Sustained It

Sustained Company

Unpredictable Managers

will be too difficult to alter position as conditions change

will be too slow to build new resources as conditions change dominance

will be too tentative in executing on promising opportunities

Profitability

Long-term

Growth

Home Based Part Time Jobs at www.earnrupees4you.com

E-commerce strategies
E-commerce strategy formulation process

Framing the Market Opportunity

Business Model

Customer Interface

Market Communication and Branding

Implementation

Metrics

Home Based Part Time Jobs at www.earnrupees4you.com