it for decision makers commerce overview

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IT for Decision Makers e Commerce Overview

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Page 1: It for decision makers commerce overview

IT for Decision Makers

e Commerce Overview

Page 2: It for decision makers commerce overview

What is e Commerce?

e commerce is enabling or achieving your business objectives by using

information technology to enhance or transform your business

processes. Kami, 2000

Page 3: It for decision makers commerce overview

e commerceBusiness to business (B2B)

automating supply increasing business efficiency

Business to Consumer (B2C) Retail Sales Customer Support

Consumer to Consumer (C2C) Online Auctions

Page 4: It for decision makers commerce overview

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?

Page 5: It for decision makers commerce overview

Global 400 million users of Internet

worldwide 1999 US online retail sales -

US$20bn. Forrester Research

2000 US online retail sales - US$30bn+ Forrester Research

US Online buying will reach US$6.9 trillion 2004. Forrester Research

electronic payment of bills and banking will cost US Postal Service $17bn over 10 years.

Page 6: It for decision makers commerce overview

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.

The US figures are only part of the global picture.

Page 7: It for decision makers commerce overview

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)

Page 8: It for decision makers commerce overview

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,

Page 9: It for decision makers commerce overview

e commerce and the Pacific

Traditional BarriersIsolation – distance from market Small local markets Limited human capacity OpportunityInternet provides “instant” access to

global market

Page 10: It for decision makers commerce overview

ecommerce adoption in PacificTourism

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/

Page 11: It for decision makers commerce overview

Lessons from experiencePopular Sites Not = Revenue

Online Advertising Market is immature especially in the Pacific.

What visitors do on a website is more important then inflated “hits” figures

Income models based on advertising must be supported by online sales.

Start with a strategy know your market and how to reach them

Traditional Off line issues determine profitability management, product, operations and

financing.

Page 12: It for decision makers commerce overview

e Commerce and PacificThe 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)

Avoid entry in IT labor market - 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.

Page 13: It for decision makers commerce overview

Demonstrations - TourismTourism:

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.

Page 14: It for decision makers commerce overview

Example 2 - TourismPacificnavigator.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

Page 15: It for decision makers commerce overview

Example 3 - RetailWww.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.

Page 16: It for decision makers commerce overview

Example 4 - RetailArtifacts - 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.

Page 17: It for decision makers commerce overview

RememberThe Internet is the best opportunity for

Pacific Island business since the Jet Plane however:

traditional business principles still matter online. Value to the customer comes first. Be realistic about revenues and costs

For the Pacific the initial market is overseas

Initiative and creativity are premium.

Page 18: It for decision makers commerce overview

PART II

An ecommerce strategy for a Small Pacific Island Business

By Taholo Kami for UNESCO

Page 19: It for decision makers commerce overview

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

Page 20: It for decision makers commerce overview

PlanWhat 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.

Page 21: It for decision makers commerce overview

Getting OnlineHosting Your Website

Fast 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

Page 22: It for decision makers commerce overview

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

Page 23: It for decision makers commerce overview

Web Site SoftwareWeb-site Creation

Common Software Tools. Image Editing Adobe Photoshop Jasc.com Web Page Development Paintshop Microsoft Front page - $150 Dream Weaver - $150 – 200 Netscape Communicator-FreeNote: There are a lot of cheaper software online.

Page 24: It for decision makers commerce overview

Managing your Web SiteManaging your website can take

TIME!Adapting Business processes

Good Samaritan Inn exampleLook at employee timeCustomer expectationsLimitations of the medium (non face to

face)

Page 25: It for decision makers commerce overview

Transactions1. 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

Page 26: It for decision makers commerce overview

DeliveryDelivering 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)

Page 27: It for decision makers commerce overview

Marketing Web siteHow do people find your website?ONLINE Strategy

Links from related and / or popular web sites

Search Engines Online Advertisements Informed by other users

Page 28: It for decision makers commerce overview

Marketing Your WebsiteOFFLINE Strategy - Show Your URLwww.MYCOMPANY.com

Stationary Advertising on conventional media Trade shows

Page 29: It for decision makers commerce overview

ConclusionDespite 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.