USING E-COMMERCE AS A BUSINESS TOOL

USING E-COMMERCE AS A BUSINESS TOOL

Introduction to the on-line environment Definition: What is E-commerce? ‘E-commerce is the process of conducting business using the Internet and Intranet.’

‘USING E-COMMERCE AS A BUSINESS TOOL.’ • The Internet will offer new business opportunities through E-commerce to allow companies to operate on a global scale • There is a degree of truth, a lot of exaggeration and speculation as to how effective E-commerce will develop

Difference between Internet and Intranet • Internet: is a network of networks, which interchange data. It can be considered a prototype of the global information superstructure. • Intranet: Is a closed or private network which interchanges data. Used within organisations, but can be accessed externally through a password.

The Internet Business Climate • The internet is no longer an exclusive academic and technical network. • The following pie chart demonstrates the growth of internet use particularly in the commercial sector.

Internet user Demographics

Why the need for an on-line Environment • SME’s are competing in an increasingly global business environment. • Downsizing by large corporations and government has created more employment opportunities in the SME sector. • In the future it will it be the organisations with ‘culture of connectivity’ who will have the competitive edge. • Will we see virtual communities becoming ‘coalition organisers’ who act on behalf of their community members, be they business or the wider community. Hagel & Armstrong (1997

Why the need for an on-line E-commerce • Australia is an Information based society • 40% percent of employment involved in production, processing distribution, infrastructure. • More than a million Australian now use the Internet regularly and this is growing. • Educational policies now gear students towards computer literacy and new technologies. • The rise of the Internet and the World Wide Web are part of the phenomenon of globalisation. Barry Jones I.T.Age Newspaper

Conducting Virtual commerce on the Internet • Business opportunities can be broken down into two broad categories Marketing and Internal operations • Marketing using the Internet provides a collection of tools that allow interactive advertising, customer service and support, product information and sales

Conducting Virtual Commerce On The Internet • With E-commerce your business can now do the following • Communicate with customers instantly including sending requested information on demand to customers using e-mail • Promote your business by distributing to global forums • Create virtual shopfronts to generate sales directly from the Internet.

Conducting Virtual Commerce On The Internet • Internal Operations • The Internet provides a variety of tools for moving information, collaboration and development and vendor support. • The business can operate more efficientlyand profitably.

Conducting Virtual Commerce On The Internet. • Distribute files to anyone or a select group in a convenient and efficient fashion. • Access the vast resources of the Internet. • Publish information such as on-line catalogues, brochures and newsletters

Establishing your business wired to the net • There are three essential parts • Getting your business wired to the net • Setting up a server presence to deliver services on-line • Working with the key tools of the Internet trade e-mail FTP Gopher and the World Wide Web

Getting your business wired to the net • Can be fraught with technical, financial and strategic complexities. • Issues to be addressed are • Setting up the right sort of internet account • Choosing the right type of telecommunications line.

Getting your business wired to the net 1. Establishing a domain name • Domain names indicate the type of service or product you are offering. • A domain name lets you capitalise on any brand recognition associated with your business name. • Domain names are registered with an organisation call InterNIC

Registering Domain Names • Names are registered on a first come first served basis • Registering a domain implies no legal ownership of the name. • The service can be contacted for information on Domain names.

Examples Look at the following sites www.trading-post.com.au (commercial) www.vic.gov.edu.au (education)

Establishing a Server Presence Two Options 1. Do it yourself using a unix server, a dedicated connection, a leased high volume data transmission line and the technical expertise to put it all together. 2. Rent space on a server services’ server and let the ISP do the work for you

E-mail • Promote you E-mail presence in all your business documents • It is as important as your telephone and fax number • Always display on business cards

Sharing Information with FTP • File transfer Protocol (FTP) is a medium that lets business send and receive files across the Internet. • Creating an FTP site is a cost-effective way to make large quantities of information available internally/externally to all Internet users.

Sharing Information with FTP • Thousands of anonymous sites throughout the net. • Many of these are file archives that let users get software at no cost

‘Using E-commerce as a business Tool.’ Disadvangages • On - line security • Viruses • Cost effectiveness • Relevance • Lack of training

‘Using E-commerce as a business Tool.’ • Recent studies have shown • Australians are one of the highest users of the net in the world on a per capita basis • Australians have a keenness for new technologies

Reasons for Using E-Commerce as a Business tool. • Export opportunities • Improved exposure • Cost savings • New opportunities • Improved Communications • Reduced reliance on paper • Find new Employees

Using E-Commerce as a Business Tool. • The internet will remove the ‘tyranny of distance’ our geographic isolation from world markets will no longer be relevant. • The web will allow a small Australian company to advertise its products world wide at the same coast as it takes to advertise in the local community. • Australia has a reputation for producing high quality goods for niche markets. A web presence is the ideal medium for promoting these products.

Security Issues • A study of UK business revealed that 54% of all business surveyed were concerned about security issues. • 47 were concerned about the complexity of payment systems • Is on-line security an issue on the net or is it less dangerous than quoting it over the phone or handing it over in the restaurant?

Using E-Commerce as a Business Tool. • There are two items of existing global infrastructure that can assist us to sell on the net. What do you think they might be?

Using E-Commerce as a Business Tool. • Credit Cards VISA AMEX MasterCard etc • Global Courier Companies FedEx DHL TNT

Using E-Commerce as a Business Tool. • By advertising your business presence on the net the distinction between an organisation with large marketing muscle and a small innovative company is blurred.

USING E-COMMERCE AS A BUSINESS TOOL