intro2e_ch12.ppt

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Chapter 12

E-Commerce Strategy, Justification,

and Global Implementation

Chapter 12

Copyright © 2009 Pearson Education,Inc. Publishing as Prentice Hall 1

Learning Objectives

1. Describe the strategic planning process.

2. Describe the purpose and content of abusiness plan in e-commerce.

3. Describe EC strategy implementation

including the use of metrics.4. Describe the need for justifying EC

investments, how it is done, and how metricsare used to determine justification.

5. Understand the difficulties in measuring and justifying EC investments.



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Learning Objectives

6. Evaluate the issues involved in global EC.

7. Analyze the impact of EC on SMEs.

8. Understand the foundations for legal and

ethical issues in EC.

9. Explain privacy, free speech, and defamation

and their challenges.10. Discuss the challenges caused by spam,

splogs, and pop-ups.

11. Describe the anticipated future of EC.

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Strategy, Planning, and

Implementation of E-Commerce

strategy

A broad-based formula for how a

business is going to accomplish its

mission, what its goals should be, and

what plans and policies will be needed to

carry out those goals.



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Strategy, Planning, andImplementation of E-Commerce

STRATEGY AND THE WEB

ENVIRONMENT

e-commerce strategy (e-strategy)

The formulation and execution of a vision of

how a new or existing company intends to

do business electronically.

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strategy initiation

The initial phase of strategic planning in

which the organization examines itself

and its environment.

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Specific outcomes from this phase include:

Company analysis and value proposition

value proposition

The benefit that a company’s products or services

provide to a company and its customers.

Core competencies

Forecasts

Competitor (industry) analysis



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strategy formulation

The development of strategies to exploitopportunities and manage threats in thebusiness environment in light of corporatestrengths and weaknesses. Specific activities and outcomes from this phase

include: Business opportunities

Cost-benefit analysis

Risk analysis, assessment, and management

Business plan

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strategy implementation

The development of detailed, short-term

plans for carrying out the projects agreed

on in strategy formulation.

Specific activities and outcomes from this

phase include:

Project planning

Resource allocation

Project management



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strategy assessment

The continuous evaluation of progress

toward the organization’s strategic goals,

resulting in corrective action and, if

necessary, strategy reformulation.

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business plan

A written document that identifies acompany’s goals and outlines how thecompany intends to achieve the goalsand at what cost.

business case

A business plan for a new initiative or large, new project inside an existingorganization.

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Justification andCost-Benefit Analysis

Companies need to justify their EC

investments as part of strategy

formulation

OTHER REASONS WHY EC

JUSTIFICATION IS NEEDED

EC INVESTMENT CATEGORIES ANDBENEFITS

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Justification and

Cost-Benefit Analysis

HOW IS AN EC INVESTMENT

JUSTIFIED?

cost-benefit analysis

A comparison of the costs of a project

against the benefits.

WHAT NEEDS TO BE JUSTIFIED?

WHEN SHOULD JUSTIFICATION

TAKE PLACE?



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Justification andCost-Benefit Analysis

USING METRICS IN EC

JUSTIFICATION

metric

A specific, measurable standard against

which actual performance is compared.

key performance indicators (KPI)The quantitative expression of critically

important metrics.

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Difficulties in Measuring and

Justifying EC Investments and Success



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Difficulties in Measuring andJustifying EC Investments and Success

DIFFICULTIES IN MEASURING

PRODUCTIVITY AND PERFORMANCE

GAINS

Data and Analysis Issues

EC Productivity Gains May Be Offset by

Losses in Other Areas Incorrectly Defining What Is Measured

Other Difficulties

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Difficulties in Measuring and

Justifying EC Investments and Success

DETERMINING E-COMMERCE

SUCCESS

Product Characteristics

Industry Characteristics

Seller Characteristics

Consumer Characteristics



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Global E-Commerce

BENEFITS AND EXTENT OF

OPERATIONS

BARRIERS TO GLOBAL EC

Cultural Issues

Administrative and Legal Issues

Geographic Issues and Localization

Economic and Financial Issues

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Global E-Commerce

BREAKING DOWN THE BARRIERSTO GLOBAL EC Be strategic

Know your audience

Localize Think globally, act consistently

Value the human touch

Clarify, document, explain

Offer services that reduce barriers



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E-Commerce in Smalland Medium-sized Enterprises

SUPPORTING SMEs

SMEs have a variety of support options.

Almost every developed country in the world

has a government agency devoted to

helping SMEs become more aware of and

able to participate in electronic commerce

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Fundamental Legal,

Ethical, and Regulatory Issues

ETHICS, LEGAL, AND REGULATORY

CONCEPTS

ethics

The branch of philosophy that deals with

what is considered to be right and wrong.



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Fundamental Legal,Ethical, and Regulatory Issues

privacy

The right to be left alone and free of

unreasonable personal intrusions.

intellectual property

Creations of the mind, such as inventions,

literary and artistic works, and symbols,names, images, and designs, used in

commerce.

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Fundamental Legal,


LAWS ARE SUBJECT TO

INTERPRETATION

Free Speech Online Versus Child Protection

Children’s Internet Protection Act (CIPA)

U.S. law that mandates the use of filtering technologies inschools and libraries that receive certain types of federal

funding.

legal precedent

A judicial decision that may be used as a standard in

subsequent similar cases.

Political Spam Versus Political Fund-Raising



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PERSONAL AND PROPERTY RIGHTS

civil litigation

An adversarial proceeding in which a party

(the plaintiff) sues another party (the

defendant) to get compensation for a wrong

committed by the defendant.

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Fundamental Legal,




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INTELLECTUAL PROPERTY LAW

(A CIVIL LAW) copyright

An exclusive right of the author or creator of a book,movie, musical composition, or other artisticproperty to print, copy, sell, license, distribute,transform to another medium, translate, record,

perform, or otherwise use. infringement

Use of the work without permission or contractingfor payment of a royalty.

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Fundamental Legal,


digital rights management (DRM)

An umbrella term for any of several

arrangements that allow a vendor of content

in electronic form to control the material and

restrict its usage. fair use

The legal use of copyrighted material for

noncommercial purposes without paying

royalties or getting permission.



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patent

A document that grants the holder exclusive

rights to an invention for a fixed number of

years.

trademark

A symbol used by businesses to identifytheir goods and services; government

registration of the trademark confers

exclusive legal right to its use.

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Privacy,

Free Speech, and Defamation

opt out

Business practice that gives consumersthe opportunity to refuse sharinginformation about themselves.

opt in

Agreement that requires computer usersto take specific steps to allow thecollection of personal information.



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Privacy,Free Speech, and Defamation

FREE SPEECH

Web Site Registration

Cookies

Spyware and Similar Methods

RFID’s Threat to Privacy

Privacy of Employees darknet

Private online community that is only open tothose who belong to it.

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Privacy,

Free Speech, and Defamation

PRIVACY PROTECTION

Notice or awareness

Choice or consent

Access or participation

Integrity or security

Enforcement or redress



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Privacy,Free Speech, and Defamation

USA PATRIOT Act

Uniting and Strengthening America byProviding Appropriate Tools to Interceptand Obstruct Terrorism Act passed inOctober 2001, in the aftermath of theSeptember 11 terrorist attacks. Its intentis to give law enforcement agenciesbroader range in their efforts to protectthe public.

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Spam, Splogs, and Pop-Ups

search engine marketing (SEM)

Marketing methods used to increase theranking of a Web site in the searchresults.

comment spam

Spam sent to all types of messagingmedia, including blogs, IM, and cellular telephones to promote products or services.



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search engine spam

Pages created deliberately to trick the

search engine into offering inappropriate,

redundant, or poor-quality search

results.

search engine spamming

Collective term referring to deceptive

online advertising practices.

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spam site

Page that uses techniques that deliberatelysubvert a search engine’s algorithms toartificially inflate the page’s rankings.

splogsShort for (spam blog) are sites that are createdsolely for marketing purposes.

trackback

An acknowledgment or signal from anoriginating site to a receiving site.



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Automated Spam

Captcha tool

Short for “completely automated public Turing

test to tell computers and humans apart,” this

tool uses a verification test on comment pagesto stop scripts from posting automatically.

PROTECTING AGAINST POP-UP ADS Tools for Stopping Pop-Ups

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The Future of Electronic Commerce

INTEGRATING THE MARKETPLACE

WITH THE MARKETSPACE

MOBILE SOCIAL NETWORKS

FUTURE THREATS

Security concern

Lack of Net neutrality

Copyright complaints

Choppy connectivity

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Managerial Issues

1. What is the strategic value of EC to the organization?

2. Who determines EC strategy?

3. What are the benefits and risks of EC?

4. What metrics should we use?

5. How do we measure the value of EC investment?

6. How can we go global?

7. Can we learn to love smallness?

8. What legal and ethical issues should be of major concern to an EC enterprise?

9. What are the most critical ethical issues?



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Summary

1. The strategic planning process.

2. Writing a business plan.

3. The EC strategic process.

4. The need for EC justification.5. The difficulties in justifying EC investment.

6. Issues in global EC.

7. Small businesses and EC.

8. Understanding the foundation for legal and ethicalissues.

9. Privacy, free speech, and defamation and their challenges.

10. Challenges caused by spam, splogs, and pop-ups.11. The future of EC.

Chapter 12


All rights reserved. No part of this publication may be reproduced, stored in a

retrieval system, or transmitted, in any form or by any means, electronic,

mechanical, photocopying, recording, or otherwise, without the prior written

permission of the publisher. Printed in the United States of America.

intro2e_ch12.ppt

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