E-Commerce/E-Business Global Implementation Project – for AGL Canada

1. E-Commerce/E-Business Global Implementation Project – for AGL Canada

2. AGL • AGL -The Australian Gas and Light Company. • AGL claims to be one of the oldest suppliers of renewable energy, celebrating its 170 years of achievement in the year 2011 • The Australia’s largest private owner, operate and developer of renewable generation assets • It provides electricity and gas services to around six million residential, commercial, and industrial customers

3. Canada

4. Canada • Canada has 10 province withy the population of 34,030,589

5. Canada for E-business Implementation • Canada’s internet usage grew from 61 % in 2005 to 71.9% in the year 2011 • According to Statistics Canada’s 2006 Survey of Electronic Commerce and Technology, Canadian retail e-commerce tallied its fifth straight year of double digit growth.

6. Canada for E-business Implementation • Online sales more than doubled in Canada from 2003-2006, and nearly half of Canadian retail firms now have a Web site, compared to the 42% that did in 2005 • Among companies with 100 employees or more, 88% of them have an e-Commerce website • Therefore, with this thriving population of internet users and development in e-business, AGL company has the great opportunity to land a successful E-business venture in Canada.

7. Analysis of suitability of e-business venture in Canada

8. SWAT Analysis for AGL

9. Trans Alta – competitor • important to research and analyze the competitors. • Trans Alta has perhaps the strongest market in Canada. • Beginning as a small, local power company in 1909, Trans Alta has transformed - to become an experienced and well respected power generator and wholesale marketer of electricity in Canada • $3 billion in annual revenue, more than $9 billion in assets, and power plants in Canada, the United States and Australia • TransAlta Energy Marketing delivers electricity and custom energy solutions for businesses and wholesale markets throughout North America. • The customers range from convenience store chains to large-scale manufacturers to energy producers, and regardless of size, we provide reliable and competitive energy solutions

10. Macro-environmental factors to expand AGL in Canada International economic: • These include interest rates, taxation changes, economic growth, inflation and exchange rates • Higher interest rates may deter investment • Inflation may provoke higher wage demands from employees and raise costs • Higher national income growth may boost demand for a firm's products Society: • Changes in social trends can impact on the demand for a firm's products and the availability and willingness of individuals to work. • The ageing population also impact on demand: (increase the cost) • For example, demand for sheltered accommodation and medicines have increased Technology: • The main source of increases in productivity • Technology can reduce costs, improve quality and lead to innovation • New technologies create new products and new processes

11. Micro Environmental factor within AGL Customers: • Customers are obviously the key to sales • Company must monitor customer needs and try to anticipate how these will develop so that they can meet the requirements effectively • Loyalty cards and frequent shopper incentives should be aimed at rewarding customers Competitors: • The success and behaviour of any business will depend on the degree of competition in its market • If the AGL offers better service than other competitors, then it can gets benefited from its competitors • Competitor analysis and monitoring is crucial if an organisation is to maintain its position. Suppliers: • Suppliers constitute a second component in a typical organization’s micro environment • Close supplier relationships are one way of ensuring competitive quality product for an organization. • An increase in raw material prices will have a negative effect on the marketing mix strategy of an organisation. Organisations may be forced to raise prices as a result Thins before selecting suppliers • good and reliable • Can the suppliers provide high quality products at a good price? • Have they got the flexibility to respond to a firm's demands? • What is the bargaining power of these suppliers? • How dependent is the firm on them?

12. Barriers and constraints to e-Business & e-commerce Cost: • Costs of implementing e-commerce can be a serious barrier for AGL in Canada • Costs include planning; procuring hardware and software, maintenance and telecommunications charges. • Initially it needs a lot of money for any business to establish at new location • E-commerce maintenance and upgrades can be very costly Security: • Security means company security, customer data security and other physical security • Security is top most barriers to establish any business in any new location • Lots of risk in electronic payment if the security is not managed properly Skills: • Skills is main the barriers to any organization using the internet to run e-business • Developing & maintaining a website, software or application requires skilled manpower

13. Challenge to expand business for AGL in Canada • Canada benefits from a wealth of renewable energy riches (varied natural resources including massive supplies of water, solar, wind and biomass – the raw materials to produce green energy) • Canada has one-fifth of the world's fresh water and is surrounded by three oceans, providing nearly endless water resources. • Best wind resources on the planet • Excellent infrastructure, an integrated transportation network, advanced manufacturing expertise, a highly-skilled workforce

14. What is Supply Chain? Supply chain refers to the flow of materials, information, payments and services from raw material suppliers, through factories and warehouses, to the end customer.

15. Index How does AGL’s Supply chain work? • Minerals and Oil • Extraction Industry Telecommunication equipment manufacturing industry Minerals / crude oil Wholesellers Telecommunicaiton equipment providers IT / IS Technology providers Information flow Payment flow Material flow AGL

16. AGL procurement Materials Purchases • Natural Gas Materials / Equipments • Safety Supplies / Equipments • Office Supplies • Telecommunication Materials /Equipments Direct Purchases • Gas Pipeline contractors • Network contractors • Telecommunication Equipments Technology Purchases • IS support • IS Hardware

17. Issues of procurements and supply chain in Canada • Overall cost • Though the labour cost will be less in Canada attributing to low dollar rate, other costs like costs of space, tariffs and other taxes adds up the overall cost. • Productivity and Shipping Time • The productivity of the overseas employees and the extended shipping times may negatively affect companies lead time and it should be considered while making overall procurement plan. • Supplier Selection • AGL should give sufficient time and effort to factor all important elements to identify most suitable vendors and not jump on the lowest price offered.

18. E-marketing for AGL • AGL has a diverse power generation portfolio including base, peaking and intermediate electricity production plants. • In September 2009, The Centre for Energy tested Canadians’ knowledge of their energy system and gauged their opinions about the importance of Canada’s energy industry. The survey’s results suggested two conclusions. First, that Canadians believe the energy industry is important and, second, that Canadians’ knowledge of their energy sources is good, but there is always room for improvement. As a result it is a market where AGL energy organization can make some profit.

19. Techniques of E-marketing ->Viral Marketing • Gives valuable products or services -> Search Engine Optimization (SEO) • AGL can make use of SEO to distribute the information about the organization. When ever people in Canada will do search in online directory they will be able to see the website of AGL company. From there people will be able to get the related information of the offers that the company is offering right now. ->Online Partnership • Blog service the AGL company can see the inside view of the customer and also will be able to solve the problem and give advice about energy saving options. • AGL can become partner with the energy sector website such as center for energy in Canada or natural resources for energy sector in Canada. ->Direct Mail marketing • AGL company will send direct mail to the customer. ->SOCIAL MEDIA MARKETING • AGL will create small adds which will be displayed on the social media website. Those adds will be interactive add. increase traffic to the website through social media channels like Facebook, YouTube, MySpace.

20. E-CRM for AGL The primary goals of CRM for AGL are to Ø Build long term and profitable relationships with chosen customers Ø Get closer to those customers at every point of contact Ø Maximize your company’s share of the customer’s wallet Benefits • Sales force automation systems Sales force automation system will create competitive advantage for the AGL. Productivity will increase for the AGL company for this CRM strategy. Sales staff will use their time more efficiently and more effectively.

21. Localization Issue in Canada The role of Localization Project Manager (LPM) will perform the following functions: • Investigate and qualify appropriate vendors. • Create a statement of work. • Integration into country or language specific Operating System • Graphics • Colors • Fonts used • Provide the project team with advice on special needs for Canada. • Work with Marketing and other team members to create a schedule of all localization activities.

22. Change Management Need of change management to the AGL organization in Canada: • The organization can respond faster to customer demands • Helps to align existing resources within the organization • Change management allows the organization to assess the overall impact of a change • Change can be implemented without negatively effecting the day to day running of business • Organizational effectiveness and efficiency is maintained or even improved by acknowledging the concerns of staff • The time needed to implement change is reduced • The possibility of unsuccessful change is reduced

23. Conclusion • Canada is suitable as a host country for AGL to expand its business. • AGL is highly committed to environment it will definitely be duly accepted by customers and environmentalist group in Canada. • E-Marketing techniques that AGL can use to market their presence in Canada to gain customer attention • By appropriate use of various eBusiness application like e-Procuremement, e-Supply Chain and e-CRM, AGL can ensure smooth business progress in Canada

24. Thank You