IT for Decision Makers e Commerce Overview By Omkar Nath Nandi
IT for Decision Makers
e Commerce Overview
By Omkar Nath Nandi
What is e Commerce?
e commerce is enabling or achieving your business objectives by using
information technology to enhance or transform your business
processes.
e commerce
Business to business (B2B) automating supply increasing business efficiency
Business to Consumer (B2C) Retail Sales Customer Support
Consumer to Consumer (C2C) Online Auctions
eCommerceecommerce is more then just an
online shop selling goods…. Businesses make huge savings by more efficient interaction with their suppliers or buyers. A local pharmacist orders 60% of his supplies
from an overseas pharmaceutical suppliers website and saves 5% in his purchases - is this ecommerce?
A remote Fiji resort attracts guests from the USA after several exchanges of email. Is this ecommerce?
Interpretation ?
Consumers are willing to spend money on online transactions.
Despite the recent dot.com drop in investment - consumers continue to use the Internet in growing numbers.
45 million users are always online in india.
What is working?
Pornography Travel / Tourism Retail - items that don’t need personal touch
- objectivity in product quality and performance music, books, gifts, Computers, electronic
items Auctions
Real Estate - houses and investment properties.
Customer support services More efficient and effective processes between
businesses (B 2 B)
What is not working?
Items which require “touch and trial” Luxury goods Clothes - beyond Tshirts
Groceries - it works for some people but market is restricted
Note: Many OFF line factors determine success of Online service. Eg. Transport network, customer profiles,
e commerce and the Pacific
Traditional BarriersIsolation – distance from market Small local markets Limited human capacity OpportunityInternet provides “instant” access to
global market
ecommerce adoption in Pacific
Tourism small operators and multi nationals expatriate owned businesses due to
better awareness of communications possibilities.
Online retailers - often overseas based, some Pacific based exporters.
Generally for the Pacific it has been ad hoc entry with ecommerce/
Lessons from experience
Start with a strategy know your market and how to reach them
Traditional Off line issues determine profitability management, product, operations and
financing.
e Commerce and Pacific
The challenge is identify market niches for products unique to the Pacific (core competencies) Ecotourism, trade niches, island goods Identify skill industries where local capacity
can be developed and product transferred electronically. (insurance, banking, drafting etc)
Other Opportunities - call centers, credit card processing without an exit plan because these IT niches will be the world’s most MOBILE industries and governed by cost of labor.
Demonstrations - Tourism
Tourism: www.tongaonline.com/sailingsafarisSailing Safaris - Tonga One boat operation in 1996 from small
island base Competing with 2 multinational yacht
companies with global marketing network
Since 1997 - 80% of business from web site.
This statistic 60-80% of bookings from web inquiries is common to Tourism operators in the Pacific.
Example 2 - Tourism
Pacificnavigator.com - Travel PortalOne stop shop for travel info and
bookings. 9 Pacific Island CountriesTravel Information and BookingsSticky Items - bring people back to
site message boards for comments News Postcards
Example 3 - Retail
Www.Fijilive.com - Portal Popular site and daily local news. immature advertising market – difficult to get
local advertisers. Sticky Features
NewsNumerous in-house websites
sells through www.fijionsale.com uses credit card transactions with manual batch
processing Kava, music, Jewelry, etc.
Example 4 - Retail
Artifacts - Papua New Guineawww.niugini.com - PNG PortalSticky Features
Forums, News, Chat, Postcards, Info pages
Sells PNG artifacts. Transactions via email and bank
transfersGreat product but management and
operation issues and no online transactions.
Remember
The Internet is the best opportunity :traditional business principles still matter
online. Value to the customer comes first. Be realistic about revenues and costs
Even For the international marketInitiative and creativity are premium.
PART II
An ecommerce strategy for a Small Business
Objectives?
Why get online? Promote awareness of your Organization Sell a product Customer support Information and contact page Networking Everyone else has a web page
Plan
What is your product?Electronic, Services or physicalPortable and inexpensive to deliverTourism
Who is your market?Overseas Fish buyersUpper income art collectorsBudget travellers / Up market
Obstacles, Implementation and deadlines.
Getting Online
Hosting Your WebsiteFast AccessCost, Support, Space and Services
Choosing a Domain Name (web address)
www.myname.com / .nu / .to / .tv / .fj /
Calling Card Choose name that relates to product Reflects on organizationEasy to remember
Design Issues
Often Simple Is Better E.g. National PNG, Yahoo Complexity depends on your website
objectivesPlanning content
How do you keep content fresh and relevant
Who Develops your website? Professional Services Do it Yourself
Managing your Web Site
Managing your website can take TIME!
Adapting Business processesGood Samaritan Inn exampleLook at employee timeCustomer expectationsLimitations of the medium (non face to
face)
Transactions
1. Getting paid online is very difficult in the Pacific. Many banks will need a large deposit or a strong relationship to allow a SME to open a merchant / credit card processing account at a bank.
Alternatives include: Bank transfer / wire Credit Cards
Merchant account Manual / Automated processing Third party processing
paypal.com
Delivery
Delivering an artifact after online purchase or attracting visitors to an eco tourism resort - managing expectations is essential
People are used to guaranteed delivery but more importantly, communicate reality so expectations are realistic.
E.g. Implement a 2 week guarantee for goodsEnsure online advertisement meets expectations
Use a reliable delivery service (TNT, FedEx)
Marketing Web site
How do people find your website?ONLINE Strategy
Links from related and / or popular web sites
Search Engines Online Advertisements Informed by other users
Marketing Your Website
OFFLINE Strategy - Show Your URLwww.MYCOMPANY.com
Stationary Advertising on conventional media Trade shows
Conclusion
Despite infrastructure limitations in the Pacific, the target market in developed countries are likely to be Internet users.
If unsure, start small. An existing website helps develop your capacity to interact with customers and measure web potential.
Lobby Government for effective IT Strategy that develops infrastructure and builds local capacity.