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Benefits to the Business

Benefits to the Business. Increasing Sales Reducing Costs Improved Customer Service Responding to Competitive pressures Expanded Market Research. Challenges. Privacy & Security Security & Payment Systems Firewalls Personal Information Protection & Electronic Documents Act

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Benefits to the Business

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Presentation Transcript

  1. Benefits to the Business • Increasing Sales • Reducing Costs • Improved Customer Service • Responding to Competitive pressures • Expanded Market Research

  2. Challenges • Privacy & Security • Security & Payment Systems • Firewalls • Personal Information Protection & Electronic Documents Act • Wallets, PayPal, smart cards

  3. BUS 361E-Business Chapter 2 Business Models & Strategies

  4. Objectives • Key elements of an internet business model • Similarities & Differences between B2B and B2C • Sims/Diffs between bricks, bricks n clicks, clicks n brick and click models • Key revenue generating approaches • Importance of a strategy • Relationship between business models & strategy • Key areas addressed by a strategic plan

  5. Business Plans/models 7 typically common components … reordered • Core Products & Services • External forces: PESTEL-G • Markets, Customers & Facilities • Core Business Process: develop, produce, market & distribute • Alliances • Resource Management • Strategic Mgmt Process

  6. E-Bus Strategy • The 7 (or 8) components • Unique value proposition • Core & Distinctive competencies • Cost leadership vs. Product Differentiation • B2B, B2C, B2G not mutually exclusive

  7. Core Process i.e. Just how “e” are we? • B … physical sites, e used to attract customers • BnC … physical sites but also an e-channel • CnB … internet based but distribution network • C … totally internet based only physical presence offices/ecommerce operations

  8. B2B vs. B2C • Longer term agreements • Negotiation • Relationships established & maintained • Larger volumes & revenues • Customised web pages for larger customers

  9. Revenue Models • Merchant Model (Costco, HBC, Sears) • Direct sales by Manufacturer (Nike, Kraft, Dell) • Manufacturer Service • Subscription (Netflix, Napster, newspapers) • Utility (pay as you go e.g. Skype) • Infomediary (checkout51, Snapsave) • Licensing (usually software) • Advertising (banner, popup, click through, search engines) • Affiliate (you scratch my back …) • Community (tofino.ca) • Brokerage (10 ways inc: classifieds, virtual malls, auctions, brokers …)

  10. Resource Management • Acquisition, development & allocation • $, people (skills)

  11. E-bus & Corporate Strategy Every strategy must take into account the following: • Arenas • Vehicles • Differentiators • Pace • Economic Logic

  12. And e-business • How does e-bus help us reach our objectives • Gap analysis • Closing gaps • Risk analysis • Defining IT needs … processes, infrastructure .. • Tactical plan • Measuring performance

  13. Terms to know • Asynchronous • Channel conflict • Clickthrough count • Reverse Auction • Banner Ads

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