Punahou School Presentation

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E-Commerce For Web Merchants Workshop www.mindwi
nd.com/fiji/fntc2003.html
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E-Commerce for Web Merchants

• Defining e-Commerce
• End of geographic boundaries
• (Re) structuring organizations
• Ingredients of Success
• Elements of a successful website
• Key barriers to success
• Benefits of an online presence
• E-Commerce Infrastructure
• Being a global player
• Web mind - Think Internet

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Defining e-Commerce

• Defining e-Commerce
• End of geographic boundaries
• (Re) structuring organizations
• Ingredients of Success
• Elements of a successful website
• Key barriers to success
• Benefits of an online presence
• E-Commerce Infrastructure
• Being a global player
• Web mind - Think Internet

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Historical development

• Phase 1 e-Commerce was about a Web presence.
  (1994-1997)
• Phase 2 Transactions, buy and selling over
  digital media. (1997-2000)
• Phase 3 Focus on selling and impacting
  profitability (2000-?)

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Defining e-Commerce
e-Commerce is the first major marketing
innovation since the advent of brand
management and network television --- all made
possible with advances in information
technologies.
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Defining e-Commerce
E-Commerce is about doing business electronically
and encompasses many diverse activities both in
the business-to-business market and in the
business-to-consumer market. Activities include
electronic trading of goods and services, online
delivery of digital content, electronic fund
transfers, electronic share trading, commercial
auctions, collaborative design and engineering,
online sourcing, public procurement, direct
consumer marketing, and after-sales service.It
involves both products (e.g. consumer goods) and
services (e.g. information services, financial
and legal services). E-Commerce is sometimes
synonymous with e-Business.
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What is e-Business?
The transformation of key business process
through the use of Internet technologies.
E-Marketing
E-Commerce
Your Company
E-Operations
Apply Internet technology to streamline all
aspects of business process
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What is e-Business?
Marketing (increase customers) Commerce (increase
sales) Operations (streamline business processes)
Traditional Business
E-Marketing E-Commerce E-Operations
E-Business
e-Business e-marketing e-commerce
e-operations
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What is e-Business?

• An e-Business is a company that incorporates and
  leverages
• the Internet to adapt to constant and continual
  change. To
• Manage transitions smoothly, you have to remember
  two
• important ideas
• Start Simple, but expect to grow fast.
• Build on What you have.

e-Business e-marketing e-commerce
e-operations
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Typical Website Functionality
E-Operations
Integrate Backoffice processes
E-Commerce
Sophistication
Actively Sell Online
Actively Market Online
E-Marketing
Establish a Web presence
Get connected
Getting started
Time
Mature
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End of Geographic Boundaries

• Defining e-Commerce
• End of geographic boundaries
• (Re) structuring organizations
• Ingredients of Success
• Elements of a successful website
• Key barriers to success
• Benefits of an online presence
• E-Commerce Infrastructure
• Being a global player
• Web mind - Think Internet

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Borderless World
We used to live in villages. Were moving toward
a global village now, so perhaps its inevitable
we will know all about our neighbors again.
Carole Lane, Naked in
Cyberspace
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Millions of Web Sites
www.isc.org/ds/hosts.html
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Millions of Users
www.nua.ie/surveys/how_many_online/
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Global Networks
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(Re) structuring organizations

• Defining e-Commerce
• End of geographic boundaries
• (Re) structuring organizations
• Ingredients of Success
• Elements of a successful website
• Key barriers to success
• Benefits of an online presence
• E-Commerce Infrastructure
• Being a global player
• Web mind - Think Internet

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Organizational Impact

• Entrepreneurial influence
• Specialization
• Local needs vs. Global market
• Technology - ICT adoption
• Business Process
• Think Internet

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Transaction vs. Relational Marketing
On- off Exchanges, Focus Ongoing
exchanges, Brand Management Customer
Management Short- term focus Time Perspective
Long- term focus Mass Primary
Communication Personal Communications
Communications Mass markets or Market Size
Markets- of- one segments Isolated
market Customer Feedback Mechanism Research
Ongoing Dialogue Market share Criterion for
Success Mind Share
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Changing Business Environment

• The Internet has made it more interactive,
  immediate, dynamic, convenient, extensive and
  powerful.
• Its become an extremely competitive market.
• Open market means its a Global open market.
• Virtual inventories.
• Transition costs or costs for adoption.

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The Right Elements
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Customers Expectations

• Information intensive content needs to be
  compelling.
• Needs to communicate company products and
  services.
• Well organized
• Easy to use
• Customer service and support
• And it needs to be immediate.

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Customer Data
Opportunity to gather customer data through
business-to-consumer electronic networks, and
thereby not only improve customer service but
also begin to "lock in" particular segments by
offering them more finely targeted products and
services
Its a two-way street
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Collaboration
Internet is forcing a change in companies from
the inside out by cultivating an extended
enterprise and a more open, forward-looking
corporate culture, and by transforming the social
structure from the traditional hierarchical chain
of command to a more collaborative environment
Companies need to look beyond their traditional
boundaries. Winning in e-Commerce often requires
multi-company collaboration within and across
industry boundaries
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Ingredients of Success

• Defining e-Commerce
• End of geographic boundaries
• (Re) structuring organizations
• Ingredients of Success
• Elements of a successful website
• Key barriers to success
• Benefits of an online presence
• E-Commerce Infrastructure
• Being a global player
• Web mind - Think Internet

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Success can be elusive

• Match technology to market
• Great technology without a large market
  potentially fails
• Great market opportunity without requisite
  reliable technology also fails
• The absence of both fails gloriously!

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Keys to Success

• A learning relationship is a two- way street --
  customers and firms get smarter with each
  interaction
• It then becomes difficult for another firm to
  duplicate the established level of
  personalization,
• thus establishing a sustainable competitive
  advantage.

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Core competency

• Combination of particular technical and
  management capabilities
• Provide leadership position in development of
  generic or core products
• Results in sustainable competitive advantage
• NOT simply possession of a specific technical or
  management capability

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Elements of a successful website

• Defining e-Commerce
• End of geographic boundaries
• (Re) structuring organizations
• Ingredients of Success
• Elements of a successful website
• Key barriers to success
• Benefits of an online presence
• E-Commerce Infrastructure
• Being a global player
• Web mind - Think Internet

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Web Site Considerations

• Design
• Consistency, Standards, Templates
• Functionality
• Searchable, Navigation, Site Index
• Freshness/Stickiness
• Continuous update of content
• Marketability
• Technology

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Search economies

• Internet search economies will supercede
  distribution economies
• Huge efficiencies
• Find a digital camera with 4X zoom and 500,000
  pixels
• Online shopping vs. physical visits
• Save consumers time!

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Barriers to Success

• Defining e-Commerce
• End of geographic boundaries
• (Re) structuring organizations
• Ingredients of Success
• Elements of a successful website
• Key barriers to success
• Benefits of an online presence
• E-Commerce Infrastructure
• Being a global player
• Web mind - Think Internet

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Barriers to Success

• Monopoly and the associated monopolistic attitude
  of operators
• Inappropriate telecommunications pricing
• Unsuitable regulatory framework
• Inequity in telecommunications access
• Adoption of ICT skills and literacy

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Benefits of an online presence

• Defining e-Commerce
• End of geographic boundaries
• (Re) structuring organizations
• Ingredients of Success
• Elements of a successful website
• Key barriers to success
• Benefits of an online presence
• E-Commerce Infrastructure
• Being a global player
• Web mind - Think Internet

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Going online

• Freedom from physical limitations
• Extending the reach of your business
• Ease of administration
• Improved marketing
• Develop new trade partners
• Improve customer satisfaction and loyalty

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Going online (cont.)

• Enhance your message
• Reduce business costs
• Shrink the competitive gap, level the playing
  field
• Reduce sales cycle
• Disintermediation, go direct
• Increase revenues through new distribution

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Fundamental Change

• Strategic direction
• Reinventing of business processes
• New organizational roles and responsibilities
• Human performance improvement
• Look beyond traditional boundaries
• Change of culture

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E-Commerce Infrastructure

• Defining e-Commerce
• End of geographic boundaries
• (Re) structuring organizations
• Ingredients of Success
• Elements of a successful website
• Key barriers to success
• Benefits of an online presence
• E-Commerce Infrastructure
• Being a global player
• Web mind - Think Internet

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One size does not fit all!
"We are moving from a world where the big eats
the small to one where the fast eats the
slow". Dick Anderson - General Manager, IBM
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Industry Convergence
Telecommunications
Broadcast / Video
Video- conferencing
Voice telephony
Cable TV
Broadcast TV
ISP
Networked multimedia
Stored media
Datacomms
Computing / LANS
Computing/IT
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Infrastructure

• High-value applications require a data center
• Opens opportunities for selling
• Disaster recovery services
• Content delivery networks
• Storage services
• Managed services of many types
• Is there a commercial data center for your area
• Will attract international players

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Transaction flow
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Transaction flow
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Software choices
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E-Business for the Enterprise
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Security and Privacy
Is your site encrypted using secure SSL
transactions?
Can people trust who you say you are?
Do you adhere to a BBB code of business ethics?
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Fulfillment
Fulfillment of your product and/or service is the
final step in your e-Commerce sales transaction.
It is critically important that this
experience is a fast, smooth and a
pleasant experience for the customer.
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Being a Global Player

• Defining e-Commerce
• End of geographic boundaries
• (Re) structuring organizations
• Ingredients of Success
• Elements of a successful website
• Key barriers to success
• Benefits of an online presence
• E-Commerce Infrastructure
• Being a global player
• Web mind - Think Internet

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Going Global

• Managing the complexities
• Trust and confidence
• Market localization
• Requirements vary from region to region
• Consistent branding
• Small companies have advantage in local markets
• Promoting your business worldwide

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Technical issues

• Local connectivity speeds may vary
• Different access devices, cell phones, PDAs
• Coding for various character sets
• Managing a global database
• Localizing your icons and logos
• Usability testing of your web site
• Cross language indexing and search
• Content management
• Registering of country specific domain names

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Language and Culture

• Site translation for each market
• Content localization
• Translation of collateral
• Site must reflect local customs
• Choice of colors, cultural nuances and subtleties
• Adaptable to changes
• Local business customs

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Legal and Monetary

• Technology develops faster than laws
• Meet the regulatory requirements of target market
• Security and privacy
• Advertising subtleties
• Restriction of certain goods and services
• Supporting transactions based on each country
  currency
• Payment preferences
• Taxes

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Customer support

• Complexities of shipping across borders
• Distribution challenges
• Support for each market needs to be localized
• Physical demands are costly

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Opportunities

• Multilingual site management
• Localization, translation services
• Global tax software
• Global consulting service
• Global content distribution
• Fulfillment services
• Market research
• Information sources, local customs

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Web Mind - Think Internet

• Defining e-Commerce
• End of geographic boundaries
• (Re) structuring organizations
• Ingredients of Success
• Elements of a successful website
• Key barriers to success
• Benefits of an online presence
• E-Commerce Infrastructure
• Being a global player
• Web mind - Think Internet

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Nature of the Web

• Instant Communication
• Collaboration
• Cooperation
• Community
• Communalism

BUT 37 of online retailers FAIL to respond to
customers online requests.
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Think Internet

• Fundamentals of conducting business
• Its about info on customers, competitors,
  suppliers and partners
• Conducting online business in iterative, the
  marketplace is dynamic
• Find your niche
• Track your success, loyalty revenues
• Fast pace does not mean short term
• Plan for the long term, perseverance pays

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Mahalo and Aloha!