Ecommerce Market Opportunities and Development

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E-commerce Market Opportunities and Development

• Ting-Peng Liang, Ph.D.
• Dean, College of Management
• Director, Electronic Commerce Research Center
• National Sun Yat-Sen University

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Outlines

• Evolution of e-commerce
• Successful cases and the second wave
• How to identify business opportunities
• Strategies for e-commerce

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Evolution of EC Models

• Information service search, portal, community
• Yahoo.com
• Business to consumers (B2C) e-tailing
• Amazon.com
• Consumer to consumer (C2C) Auction
• eBay.com
• Consumer to business (C2B) reverse auction
• Priceline.com
• Business to business (B2B) e-marketplace
• Alibaba.com

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E-Commerce Applications
Best EC
Traditional
Niche
(SourceWhinston et.al., 1997, P.18)
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America's Top Ten Retail Businesses (2006)
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The Second Wave

• Google.com keyword advertising
• Wikipedia.com information service
• Youtube.com community
• Netflix.com e-tailing
• What are they in common?

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Web 1.0 vs. Web 2.0
Source OReilly, T., What is Web 2.0
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Nature of the Second Wave

• Sharing
• Collective intelligence
• Self-service
• Customer centricity
• Personalization
• Recommendation

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Core Competencies of Web 2.0 Companies

• Services, not packaged software, with
  cost-effective scalability
• Control over unique, hard-to-recreate data
  sources that get richer as more people use them
• Trusting users as co-developers
• Harnessing collective intelligence
• Leveraging the long tail through customer
  self-service
• Software above the level of a single device
• Lightweight user interfaces, development models,
  AND business models

Source OReilly, T., What is Web 2.0
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Customer Centricity

• Customer value should be the business driver for
  competitiveness
• Customers are an integral and critical component
  of the IS development and their involvement and
  satisfaction enable the system to derive its
  value.
• The focus of system development is to configure
  various components of the customer driven value
  chain to meet the changing customer value.

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Players in Customer-Centricity
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Identifying Opportunities

• Customer
• Active (e.g., wikipedia) vs. passive (CRM)
• Process
• Flexible on-demand process
• Technology
• Service-oriented computing, Web 2.0, mobile
  technology
• Product/services
• Personalization and customization

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Future Opportunities
Product
Best for 2nd wave
Traditional
Niche
Business Process
Customized
Personalized
Standard
Standard
Customer
Active
Passive
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Service-oriented Computing

• Web-based application is designed in a
  machine-interoperable form so that different
  applications are easily integrated on-demand.
• Example
• web services for stock analysis
• Web services from Amazon.com

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Service-oriented Architecture
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Web Seervices at Amazon
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Types of Personalization

• Personalized product
• Personalized content
• Personalized web page
• Personalized transaction process
• Personalized services

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Potential Applications

• Mobile commerce
• Location-based commerce
• Blog marketing
• Target marketing
• Information brokering

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Major Considerations

• Fit To what extend the nature of business
  operations meet the capabilities of e-commerce
  technology
• Readiness How ready is your organization in
  adopting e-commerce?
• Economic
• Technological
• Organizational

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Strategies for E-commerce
Product Fitness
Low High H Process Full power
Innovation L Niche Product
Innovation
Process Fitness
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Any Questions??