Chapter 3 Launching a Business on the Internet. Awad –Electronic Commerce 1/e © 2002 Prentice Hall 2 OBJECTIVES Introduction of E-Business Life Cycle.

Chapter 3

Launching a Business on the Internet

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2WWWWWW Awad –Electronic Commerce 1/e© 2002 Prentice Hall

OBJECTIVES

• Introduction of E-Business Life Cycle– Planning– Hardware, Software & Security – Marketing– Fulfillment– Maintenance & Enhancement

Launching a Business on Internet: Objectives

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PLANNING

• Strategizing Reality– Evaluate a company’s position & competition– Set a course for years ahead– Develop implementation plan

Launching a Business on Internet: Introduction of E-Business Life Cycle

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E-BUSINESS vs. TRADITIONAL BUSINESS

Factor E-Business Traditional

Barriers to Entry

Time & Space Limits; Limited Financial Capital; Unique Products

Location Requirements

Basis of Competition

Innovative Products Improved Products

Basis of Control

Customer Manufacturer

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E-BUSINESS vs. TRADITIONAL BUSINESS (Cont’d)

Factor E-Business Traditional

Organization Specialized Teams Hierarchical Departments

Marketing/ Sales

Mass Personalization Mass Advertising

Pricing Transaction Costs on a Sliding Scale

Production Costs

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STRATEGIZING

• Know Your Audience

• Become Internet Savvy

• Determine Long-term vs. Short-term Selling

• Define Your Competitors

• Evaluate Website Appearance

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STRATEGIZING (Cont’d)

• Select Product Range

• Manage Transaction Effectively & Efficiently

• Design Shipment Process

• Be Prepared for Unexpected Changes

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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?

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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

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PLANNING CONSIDERATIONS

• Create & Maintain a Competitive Edge

• Reduce Operational Costs

• Improve Employee Communication & Satisfaction

• Find New Markets for Products & Services

• Improve relationships with Partners

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PLANNING CONSIDERATIONS (Cont’d)

• Create Distinct Distribution Channels

• Ensure Customer Satisfaction

• Adopt Sense of Entrepreneurship

• Improve Supply-Chain Management

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HARDWARE, SOFTWARE & SECURITY

• Hardware Specifications

• Hardware / Software Pitfalls

• Security for Reliability

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PROMOTING ONLINE SECURITY

• Control access to web server

• Update server software & encoding security measures

• Use firewalls

• Monitor traffic & detect irregularities

• Assign a webmaster

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DESIGN

• 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

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WEB STOREFRONT

• Enables customers to find products quickly– 8-second rule

• Sends the order to fulfillment center securely

• Generates a printable receipt

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WEB SITES PROGRAMS

• Database Server

• Store Administrator

• Catalog Builder

• Shopping Cart

• Order-processing System

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DESIGN CONSIDERATIONS

• User Control & Freedom

• Consistency & Standards

• Recognition

• Aesthetic Design

• Recovery

• Help Desk

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MARKETING

• Providing Good Services

• Advertising

• Knowing the Customers

• Selling Products & Services

• Following Up

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MARKETING CONSIDERATIONS

• Focus on niche market

• Know your visitors

• Integrate online sales with other channels

• Provide a fast, easy payment process

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FULFILLMENT

• Packing up the merchandise

• Shipping the merchandise

• Answering questions about orders

• Sending out bills

• Following up with customers

• Tax angle

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INVENTORY ISSUES

• Product Availability

• Out of Stock Notice

• Back Orders

• Processing Orders

• Controls

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MAINTENANCE & ENHANCEMENT

• Maintenance– Keeping a systems on course based on initial

design

• Enhancement– Implementing upgrades to improve system’s

productivity

• Bottom Line – Customer Attraction & Retention

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MANAGING CUSTOMER FEEDBACKS

• Set up FAQs

• Increase information access

• Avoid using large images

• Answer e-mail promptly

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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

Chapter 3

Launching a Business on the Internet

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