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Wawasan Open University

Wawasan Open University. UNIT 3. 3.1 Business Value of B2C E-commerce Identify business values to be gained from B2C e-commerce. Explain how these business values are helping in implementation of e-commerce websites. Summary.

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Wawasan Open University

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  1. Wawasan Open University UNIT 3 3.1 Business Value of B2C E-commerce Identify business values to be gained from B2C e-commerce. Explain how these business values are helping in implementation of e-commerce websites.

  2. Summary • Rapid advancement in technology make it possible transaction to be done on the internet thus lead to creation of many e-commerce sites. • Cost of setting up web-site is getting cheaper • Computer literacy is rising

  3. E-commerce as a support to business • The purpose is not sell directly but to support selling transaction process. • To provide product information to potential buyers • Information can be accessed from anywhere and at anytime. • Add value to business by enhancing the quality of product information.

  4. The function of E-commerce • New Sales Channel • Immediate delivery of certain product such as music, video, books, software, etc • Direct Savings • Having CS dept is more expensive than to setup website and have customer check themselves the order status • Time Saving • Updated news on political, financial market, etc • Brand and corporate image • Building the image thru technology • Customer relationship • Interactive and more personalized • New product capabilities • Customization based on the customer’s preference, needs, and wants. For example www.dell.com.my

  5. B2C Business Models Way of classifying Business Models • Resembling bricks & mortar store • Virtual model Differentiate the business models by the number of parties involved in the business transaction See page 12 Trading Methods • Sell side – most of “e-tailer” • Buy side – twist of traditional retailer based on demand and supply

  6. Different kinds of B2C model • Storefront • resemble physical store such as www.amazon.com • E-mall – malaysia’s e-mall • Collections of the above. • Image building • Enhance public awareness and image of the company. Example http://www.rjrt.com/ • Customer service – • To provide post-sales support for current and past customers • CRM software is growing where its integrated with internet • http://support.ap.dell.com/support/downloads/index.aspx?c=my&l=en&s=gen

  7. Common Business Imperatives • Customer visits to the websites, bringing the traffic • Global reach • Reduce cost in transaction • Shortening of business cycle • Attracting some ads dollar • Create new product & services while customizing the existing ones • Exploiting new technology • Offering new features & functionality that are difficult to copy in respond to increasing number of internet-based company • Versatile operation on the seller side such as convenience, user-friendly, quality and cheaper product/service. Internet business models continue to evolve. New and interesting variations can be expected in the future.

  8. B2B business models • Companies that supply products and services to other companies. www.grainger.com • Companies create & sell access to digital electronic markets. www.ariba.com • An Exchanger such as www.alibaba.com • Specific Industry www.exostar.com

  9. M-commerce • Take the traditional e-commerce and leveraging new wireless technologies • Mobile ticketing • Mobile payment • mobile vouchers, coupons • GPS • Mobile news, stocks, sports, 4D • Mobile banking • Auction • http://www.maxis.com.my/mmc/index.asp?fuseaction=press.view&recID=373

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