pp01

Slide 1.
Part 1
Introduction
Chapter 1
Introduction to digital
business and e-commerce
Chaffey, Digital Business and E-commerce Management Powerpoints on the Web, 6th edition © Marketing Insights Limited 2015
Slide 1.2
Learning outcomes
• Define the meaning and scope of digital business

and e-commerce and their different elements
• Summarise the main reasons for adoption of
digital business and barriers that may restrict
adoption
• Outline the ongoing business challenges of
managing digital business in an organisation,
paticularly online start-up businesses
Slide 1.3
Management issues
• How do we explain the scope and implications of

digital business to staff?
• What is the full range of benefits of introducing
digital business and what are the risks?
• How do we evaluate our current digital business
capabilities?
Slide 1.4
Figure 1.1 Google circa 1998

Source: Wayback machine archive: http://web.archive.org/web/19981111183552/google.stanford.edu . Google and the Google logo are registered trademarks of Google Inc.,
used with permission.
Slide 1.5
Digital business innovation and

opportunity
• Since Google was launched in 1998 which
online start-ups have transformed the way we
work, live and play?
• How has Google innovated in search and its
business model?
• See Table 1.1 for some of the major innovators.
Slide 1.6
The impact of electronic communications

on traditional businesses
• The impact and time to react varies by sector…
• Andy Grove, Chairman of Intel, one of the early
adopters of e-commerce, has made a
meteorological analogy with the Internet.
He says:
‘The Internet is a typhoon force, a ten times force,
or is it a bit of wind? Or is it a force that
fundamentally alters our business?’
(Grove, 1996)
Slide 1.7
New communications approaches

and consumer behaviour
Inbound marketing
The consumer is proactive in actively seeking out
information for their needs, and interactions with
brands are attracted through content, search and
social media marketing.
Zero Moment of Truth (ZMOT, Figure 1.2)

A summary of today’s multichannel consumer
decision-making for product purchase where they
search, review ratings, styles, prices and
comments on social media before visiting a retailer.
Slide 1.8
New communications approaches

and consumer behaviour (Continued)
Content marketing
The management of text, rich media, audio and
video content aimed at engaging customers and
prospects to meet business goals, published
through print and digital media including web and
mobile platforms, which is repurposed and
syndicated to different forms of web presence such
as publisher sites, blogs, social media and
comparison sites.
Slide 1.9
Figure 1.2 Zero Moment of Truth

Source: Google, Lecinski (2012).
Slide 1.10
Figure 1.3 Social media marketing radar

Source: Smart Insights (www.smartinsights.com). With permission.
Slide 1.11
What is the difference between digital

business and e-commerce?
Figure 1.4 The distinction between buy-side and sell-side e-commerce
Slide 1.12
What is e-commerce and digital business?
• You are attending a role in the e-business team

of a global bank
• You anticipate you may be asked the distinction
between e-commerce and Digital Business
• Write down a definition for each:
• E-Commerce:
• Digital Business:
Slide 1.13
Definitions
• Electronic commerce
All electronically mediated information
exchanges between an organisation and its
external stakeholders.
• Digital business
How businesses apply digital technology
and media to improve the competitiveness
of their organisation through optimising
internal processes with online and
traditional channels to market and supply.
Slide 1.14
Figure 1.5 The relationship between intranets, extranets and the Internet
Slide 1.15
Understanding different types of

online presence (Activity 1.3)
1. Transactional e‐commerce site.
2. Services‐oriented relationship‐building
website.
3. Brand‐building site.
4. Portal or media site.
5. Social network.
• These aren’t mutually exclusive, but there is
usually a focus of each website.
• Examples of each?
Slide 1.16
Digital marketing definition
• Digital marketing involves:

• Applying these technologies which form online channels to market:
• Web, email, databases, plus mobile/wireless and digital TV.
• To achieve these objectives:
• Support marketing activities aimed at achieving profitable acquisition and
retention of customers . . . within a multichannel buying process and
customer lifecycle.
• Through using these marketing tactics:
• Recognising the strategic importance of digital technologies and
developing a planned approach to reach and migrate customers to
online services through e-communications and traditional
communications.
Retention is achieved through improving our customer knowledge (of
their profiles, behaviour, value and loyalty drivers), then delivering
integrated, targeted communications and online services that match their
individual needs.
Slide 1.17
Figure 1.7 The three main options for online media investment
Slide 1.18
Figure 1.8 Digital and offline communications techniques
Slide 1.19
Figure 1.10 Evolution of web technologies

Source: Adapted from Spivack (2009).
Slide 1.20
Summary and examples of transaction alternatives between businesses,

Figure 1.11
consumers and governmental organisations
Slide 1.21
Figure 1.12 Betfair mobile proposition and activation (www.betfair.com)
Slide 1.22
Figure 1.13 A simple stage model for buy-side and sell-side e-commerce
Slide 1.23
Digital business opportunities
• Reach
– Over 1 billion users globally
– Connect to millions of products
• Richness
– Detailed product information on 20 billion+ pages
indexed by Google. Blogs, videos, feeds…
– Personalised messages for users
• Affiliation
– Partnerships are key in the networked economy.
Slide 1.24
Internet risks – what can go wrong with a

transactional site?
•
•
•
Potential answers:
• Site downtime affecting whole site or some
processes
• Security attack, e.g. denial of service, content
hijacked
• Wrong content presented for site visitor
Slide 1.25
Cost/efficiency and competitiveness

drivers
• Cost/efficiency drivers
– Increasing speed with which supplies can be obtained
– Increasing speed with which goods can be dispatched
– Reduced sales and purchasing costs
– Reduced operating costs.
• Competitiveness drivers
– Customer demand
– Improving the range and quality of services offered
– Avoid losing market share to businesses already
using e-commerce.
Slide 1.26
Additional activity – drivers and

barriers to adoption
• You are in a team of advisers at a local business
link (a local government agency encouraging
adoption of e-commerce).
• List:
– Drivers to adoption of sell-side e-commerce by
business and how you can reinforce these by
marketing benefits
– Barriers to adoption of sell-side e-commerce by
business and how you can reinforce these by
stressing benefits.
Slide 1.27
Drivers of consumer adoption
Driver? Marketing approach

1
Slide 1.28
Barriers to consumer adoption
Barrier? Marketing approach

1

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Slide 1.

• Define the meaning and scope of digital business

• How do we explain the scope and implications of

Figure 1.1 Google circa 1998

Digital business innovation and

The impact of electronic communications

New communications approaches

Zero Moment of Truth (ZMOT, Figure 1.2)

New communications approaches

Figure 1.2 Zero Moment of Truth

Figure 1.3 Social media marketing radar

What is the difference between digital

Figure 1.4 The distinction between buy-​side and sell-​side e-commerce

What is e-commerce and digital business?

• You are attending a role in the e-business team

Understanding different types of

Digital marketing definition

• Digital marketing involves:

Figure 1.8 Digital and offline communications techniques

Figure 1.10 Evolution of web technologies

Summary and examples of transaction alternatives between businesses,

Figure 1.12 Betfair mobile proposition and activation (www.betfair.com)

Digital business opportunities

Internet risks – what can go wrong with a

Cost/efficiency and competitiveness

Additional activity – drivers and

Drivers of consumer adoption

Driver? Marketing approach

Barriers to consumer adoption

Barrier? Marketing approach

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Figure 1.4 The distinction between buy-side and sell-side e-commerce