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Chapter 1
Introduction to e-business and e-commerce
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, Marketing Insights Limited 2009
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Learning outcomes
Define the meaning and scope of e-business and e-commerce and their different elements Summarize the main reasons for adoption of e-commerce and e-business and barriers that may restrict adoption Outline the ongoing business challenges of managing e-business and e-commerce in an organization.
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, Marketing Insights Limited 2009
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Management issues
How do we explain the scope and implications of e-business and e-commerce to staff? What is the full range of benefits of introducing e-business and what are the risks? How do we evaluate our current e-business capabilities?
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, Marketing Insights Limited 2009
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Figure 1.1
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Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, Marketing Insights Limited 2009
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E-business innovation
P. 5, Activity 1.1 Discussion
Which company / website impacted on Internet or the web? How do we measure their success? What made them successful?
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, Marketing Insights Limited 2009
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Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, Marketing Insights Limited 2009
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E-business opportunities
Reach
Over 1 billion users globally Connect to millions of products
Richness
Detailed product information on 20 billion + pages indexed by Google. Blogs, videos, feeds Personalized messages for users
Affiliation
Partnerships are key in the networked economy
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, Marketing Insights Limited 2009
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Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, Marketing Insights Limited 2009
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E-consultancy Interview
How does HP drive traffic to their site? How do they communicate with partners? What do they syndicate? Whats driving their actions? Whats the benefit they can get by doing so? How do they manage user reviews?
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, Marketing Insights Limited 2009
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E-business:
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, Marketing Insights Limited 2009
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Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, Marketing Insights Limited 2009
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Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, Marketing Insights Limited 2009
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Figure 1.2
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Figure 1.3
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Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, Marketing Insights Limited 2009
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Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, Marketing Insights Limited 2009
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Figure 1.4
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Precursors:
Electronic Data Interchange (EDI)
Since then, e-commerce fastest growing form of commerce in the United States
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, Marketing Insights Limited 2009
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20012006: Consolidation
Emphasis on business-driven approach
2006Present: Reinvention
Extension of technologies New models based on user-generated content, social networking, services
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, Marketing Insights Limited 2009
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Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, Marketing Insights Limited 2009
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Types of E-commerce Digital Marketing The management and execution of marketing using e-media in conjunction with digital data about customer
Involves using digital technology
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Figure 1.5
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Figure 1.6
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Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, Marketing Insights Limited 2009
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Figure 1.7
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Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, Marketing Insights Limited 2009
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Summary and examples of transaction alternatives between businesses, consumers and governmental organizations
Figure 1.8
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, Marketing Insights Limited 2009
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Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, Marketing Insights Limited 2009
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Figure 1.9
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Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, Marketing Insights Limited 2009
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E-Business Opportunities what goals does a business can achieve through e-business?
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, Marketing Insights Limited 2009
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Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, Marketing Insights Limited 2009
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Competitiveness drivers
Customer demand Improving the range and quality of services offered Avoid losing market share to businesses already using e-commerce
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, Marketing Insights Limited 2009
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Business Adoption of E-Commerce/Business Drivers for Adoption-Profit generation and cost reduction
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, Marketing Insights Limited 2009
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Figure 1.10
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Case Study
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, Marketing Insights Limited 2009
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Figure 1.11
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Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, Marketing Insights Limited 2009
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Figure 1.12
Source: DTI (2002)
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Expensive technology Sophisticated skill set Persistent cultural attraction of physical markets and traditional shopping experiences Persistent global inequality limiting access to telephones and computers Saturation and ceiling effects
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, Marketing Insights Limited 2009
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Evaluating an Organizations E-business Capability Is any company ready for e-commerce? Stage model of e-commerce
Ref. p. 37 Fig. 1.13
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, Marketing Insights Limited 2009
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Figure 1.13
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Marketing approach
2 3 4 5 6
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, Marketing Insights Limited 2009
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Marketing approach
2 3 4 5 6
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, Marketing Insights Limited 2009
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Figure 1.14
Source: UK National Statistics (2006) Individuals accessing the Internet Report from the UK National Statistics Omnibus Survey . Published online at www.statistics.gov.uk
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Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, Marketing Insights Limited 2009
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Case Study
Case Study 1.3. eBay Read the case and discuss the question on page 46.
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, Marketing Insights Limited 2009
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Next Class
McKinsey 7S framework was referenced but not introduced in detail. Research the Internet to find some background information about it and bring back your discovery to next class.
Preview Chapters 2
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Next Class
Be prepared to discuss these questions:
What type of business does MoreTh>n do? What key issues has the interview covered? Why people would go online than offline according to the interview? Do you see a similar business model in Canada?
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, Marketing Insights Limited 2009