ELC 200

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ELC 200

• Day 11

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Agenda

• Assignment 3 Corrected
• 6 As, 1 B, 1 F and 2 non-submit
• Assignment 4 due
• Next Quiz is Next class
• Chap 4-7 of text
• 15 M/C (60 Points), 4 Short Essay (40 Points)
• Extra credit ---the story of bob.com
• Clue Bob Antia
• Syllabus Change
• I will cover Chap 16 Today (I lied!)
• Allows students to begin work on eCommerce
  Initiative Framework
• Today is a discussion on Launching a Business on
  the Internet

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Chapter 16Launching a Business on the Internet
WWW
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OBJECTIVES
Launching a Business on Internet Objectives

• Introduction of E-Business Life Cycle
• Planning
• Hardware, Software Security
• Design Phase
• Marketing
• Fulfillment
• Maintenance Enhancement

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PLANNING (Phase 1)
Launching a Business on Internet Introduction of
E-Business Life Cycle

• Strategizing Reality
• Evaluate a companys position competition
• Set a course for years ahead
• Develop implementation plan
• Determine how to achieve goals
• Value an internal champion

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E-BUSINESS vs. TRADITIONAL BUSINESS
Launching a Business on Internet Introduction of
E-Business Life Cycle - Planning
Factor E-Business Traditional
Barriers to Entry Time Space Limits Limited Financial Capital Unique Products Location Requirements
Basis of Competition Innovative Products Improved Products
Basis of Control Customer Manufacturer
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E-BUSINESS vs. TRADITIONAL BUSINESS (Contd)
Launching a Business on Internet Introduction of
E-Business Life Cycle - Planning
Factor E-Business Traditional
Organization Specialized Teams Hierarchical Departments
Marketing/ Sales Mass Personalization Mass Advertising
Pricing Transaction Costs on a Sliding Scale Production Costs
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Developing a Strategy (Phase 1)

• Know yourself, your product amd you environment
• 1. Who will buy the product?
• 2. How familiar the business is with the
  Internet?
• 3. Is the business planning to be a short-termer
  or a long-termer?
• 4. Who are the competitors?
• 5. How good will the product(s) look?
• 6. How will the business present the product
  offers?
• 7. How will one manage and process transactions?
• 8. How will the product be shipped?
• 9. How will the business handle unexpected
  change?
• 10. How will one get and use feedback?)

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STRATEGIZING (still phase 1)
Launching a Business on Internet Introduction of
E-Business Life Cycle - Planning

• Know Your Audience
• Become Internet Savvy
• Determine Long-term vs. Short-term Selling
• Define and Constantly Re-evaluate Your
  Competitors
• Evaluate Website Appearance
• Be objective!

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STRATEGIZING (Contd)
Launching a Business on Internet Introduction of
E-Business Life Cycle - Planning

• Select Product Range
• Manage Transaction Effectively Efficiently
• Design Shipment Process
• Be Prepared for Unexpected Changes

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ULTIMATE STRATEGY
Launching a Business on Internet Introduction of
E-Business Life Cycle - Planning

• Vision
• What is your business trying to achieve?
• Resources
• How much can your business afford to build the
  right Website?
• Culture
• Is your business politically amenable for
  coordinating efforts to support e-business?

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DECIDING ON TYPES OF SITE
Launching a Business on Internet Introduction of
E-Business Life Cycle - Planning

• Community
• Content
• Commerce
• Business-to-business
• Back-end of e-commerce
• Business-to-consumer
• Front-end of e-commerce
• Consumer-to-consumer
• One consumer contacts another to transact business

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PLANNING CONSIDERATIONS
Launching a Business on Internet Introduction of
E-Business Life Cycle - Planning

• Create Maintain a Competitive Edge
• Reduce Operational Costs
• Improve Employee Communication Satisfaction
• Find New Markets for Products Services
• Improve relationships with Partners

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PLANNING CONSIDERATIONS (Contd)
Launching a Business on Internet Introduction of
E-Business Life Cycle - Planning

• Create Distinct Distribution Channels
• Ensure Customer Satisfaction
• Adopt Sense of Entrepreneurship
• Improve Supply-Chain Management

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HARDWARE, SOFTWARE SECURITY (Phase 2)
Launching a Business on Internet Introduction of
E-Business Life Cycle Hardware, Software
Security

• Hardware Specifications
• Hardware / Software Pitfalls
• Security for Reliability

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PROMOTING ONLINE SECURITY
Launching a Business on Internet Introduction of
E-Business Life Cycle Hardware, Software
Security

• Control access to web server
• Update server software encoding security
  measures
• Use firewalls
• Monitor traffic detect irregularities
• Assign a webmaster

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DESIGN (Phase 3)
Launching a Business on Internet Introduction of
E-Business Life Cycle - Design

• Promote presence to customers
• Secure site quality effectiveness
• Keep website up to date

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WEB STOREFRONT
Launching a Business on Internet Introduction of
E-Business Life Cycle - Design

• Enables customers to find products quickly
• 8-second rule
• Sends the order to fulfillment center securely
• Generates a printable receipt

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WEB SITES PROGRAMS
Launching a Business on Internet Introduction of
E-Business Life Cycle - Design

• Database Server
• Store Administrator
• Catalog Builder
• Shopping Cart
• Order-processing System

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DESIGN CONSIDERATIONS
Launching a Business on Internet Introduction of
E-Business Life Cycle - Design

• User Control Freedom
• Consistency Standards
• Recognition
• Aesthetic Design
• Recovery
• Help Desk

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MARKETING (Phase 4)
Launching a Business on Internet Introduction of
E-Business Life Cycle - Marketing

• Providing Good Services
• Advertising
• Knowing the Customers
• Selling Products Services
• Following Up

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MARKETING CONSIDERATIONS
Launching a Business on Internet Introduction of
E-Business Life Cycle - Marketing

• Focus on niche market
• Know your visitors
• Integrate online sales with other channels
• Provide a fast, easy payment process

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FULFILLMENT (Phase 5)
Launching a Business on Internet Introduction of
E-Business Life Cycle - Fulfillment

• Packing up the merchandise
• Shipping the merchandise
• Answering questions about orders
• Sending out bills
• Following up with customers
• Tax angle

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INVENTORY ISSUES
Launching a Business on Internet Introduction of
E-Business Life Cycle - Fulfillment

• Product Availability
• Out of Stock Notice
• Back Orders
• Processing Orders
• Controls

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MAINTENANCE ENHANCEMENT (Phase 6)
Launching a Business on Internet Introduction of
E-Business Life Cycle Maintenance Enhancement

• Maintenance
• Keeping a systems on course based on initial
  design
• Enhancement
• Implementing upgrades to improve systems
  productivity
• Bottom Line Customer Attraction Retention

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MANAGING CUSTOMER FEEDBACKS
Launching a Business on Internet Introduction of
E-Business Life Cycle Maintenance Enhancement

• Set up FAQs
• Increase information access
• Avoid using large images
• Answer e-mail promptly

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CUSTOMER SERVICE CONSIDERATIONS
Launching a Business on Internet Introduction of
E-Business Life Cycle Maintenance Enhancement

• Order Update
• Order Status Look-up Notification
• Technical Support
• Localization
• Customer Expectations

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SWOT

• An analytic method used to determine competitive
  advantage
• Strengths
• Weakness
• Opportunities
• Threats

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STRENGHTS

• Define areas you excel in
• What will your initiative do better than others?
• What are your core competencies (things you are
  good at)?
• Do you have a clear strategic direction?
• What resources do you have that competitors may
  not have?

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WEAKNESSES

• Evaluate your liabilities
• Where are you weak in relation to your
  competitors?
• What skills and resources are you lacking?
• What needs to be improved in your initiative?
• Why were not able to improve the weaknesses you
  discovered?

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OPPORTUNITIES

• Analyze your customers and market potential
• Identify favorable market conditions
• Identify emerging technologies in support of your
  initiative
• Identify changes in legislation and public policy
  that will have a supporting effect on your
  initiative

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THREATS

• Analyze potential challenges
• What are your obstacles?
• What are your competitors doing?
• Identify changes in legislation and public policy
  that will have an adverse effect on your
  initiative.

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SWOT Analysis