PRINCIPLES OF MARKETING

DIGITAL ASSIGNMENT 1
Discuss the E-Commerce strategies adopted. (Company – Rolls Royce)

Ecommerce, also known as electronic commerce or internet commerce, refers

to the buying and selling of goods or services using the internet, and the transfer of
money and data to execute these transactions. Ecommerce is often used to refer to
the sale of physical products online, but it can also describe any kind of
commercial transaction that is facilitated through the internet.
Rolls-Royce has E-Commerce system mainly in Defence - Rolls-Royce has
become the first company to trade with the UK Ministry of Defence on a new e-
commerce system.
The company took an order for submarine mechanical spares using a new
interconnection, which links the Ministry's Defence Electronic Commerce Service
(DECS) and the Exostar trading portal, allowing seamless transactions between
suppliers and the Ministry. Rolls Royce is using the IoT to collect and collate data
from across its customers’ aircraft fleets. They are using machine learning and
analytics to optimise their products and improve fuel efficiency and maintenance
planning.

David Price, Managing Director - Naval Marine for Rolls-Royce said: "Rolls-
Royce has actively supported the creation of this platform, the first web exchange
link to DECS, and we are delighted to be the first company to transact on it. This
marks another step in our overall objective to reduce procurement costs, increase
design collaboration and work more effectively with customers, partners and
suppliers.
"It is also part of our effort to enable the Ministry's Defence Logistics
Organisation reach its goal of a 20 per cent reduction in procurement costs by
2004."

Rolls-Royce joined the Exostar exchange. Existing members are BAE Systems,
Boeing, Lockheed Martin and Raytheon. Technology provider Commerce One
also has a stake. Employees at Rolls-Royce in the UK were trained how to use the
DECS/Exostar link via a "webinar" by a tutor in the US.

Rolls-Royce is a global company providing power for land, sea and air. It employs
some 40,000 people in more than 30 countries, including over 25,000 in the UK,
5,000 in the rest of the Europe and over 8,000 in North America. The company
has a balanced business portfolio with leading positions in civil aerospace, defence
aerospace, marine and energy markets. With annual sales of around £6 billion and
a forward order book of nearly £17 billion, its technology is applied over a wide
range of products that generate high-value services throughout their operational
lives.

The Defence Electronic Commerce Service (DECS) was created in July 2000
through a ten-year public/private partnership between the United Kingdom's
Ministry of Defence (MoD) and Cap Gemini Ernst & Young for the provision of
e-commerce and e-business services. DECS is designed to allow the MoD to
conduct business electronically with its suppliers across all industry sectors. Rolls
Royce has introduced a uniform, worldwide e-commerce solution for all processes
and procedures leading up to the closure of a car purchase contract.
The Rolls Royce E-commerce solution is a system of modules facilitating the
prospect's purchasing decision in choosing a new vehicle in the Internet. Rolls
Royce system covers all the kinds of brand. An essential aspect of this
international approach is the high degree of standardisation to be achieved in the
business processes, as well as the technologies and systems used. The system
gives the customer the opportunity to carefully prepare his vehicle exactly in line
with his personal wishes and preferences. In the process he benefits from
integrated, carefully Coordinated and harmonised core offers. So where previously
the customer had to make a number of troublesome phone calls and discuss many
details in advance, he is now able to surf the virtual Rolls Royce world
conveniently from his home, seeing everything he wishes to see on the screen.
And by clicking his mouse he is able to retrieve everything of interest in the
context of a possible purchasing decision.
It nevertheless goes without saying that even this kind of sophisticated and
convenient system cannot replace the expert advice provided by aqualified dealer.
It is therefore intended primarily for prospects wishing to obtain information at all
times of the day or night, using the convenience of online access directly from
their terminal.
NAME: S.JAYAGOKUL.
REG NO: 19BCC0020.