Upload
amy-porter
View
232
Download
0
Tags:
Embed Size (px)
Citation preview
Overview
Virtual Communities e-Business History of e-Business Virtual Communities & e-Business Benefits Four dynamics to capture and
increase revenue in VCs
Overview (cont.)
Four Stages of Member Development Advantages/Disadvantages of e-
Business Issues of e-Business Success factors of e-Business Conclusion References
Virtual Communities
Definition: Groups of people with similar interests who communicate and interact in an electronic or online environment. (E. Lawrence pg 388 )
e-Business
A Definition: “An e-Business is a business on the
Internet” Dmitry Nanev. E-business means any Internet or network-
enabled business activity. E-business is connecting customers,
suppliers and partners across the Internet using tools and standards that work cooperatively to achieve the required outcome in a secure manner.
e-Business
Purposes Increase Revenue Appeal to a global market Integrating dissimilar business processes Traverse organisational boundaries and
extend to partners, suppliers and customers.
Share information or allow external access
e-Business
Categories Business 2 Business (B2B)
Dell, IBM Business 2 Consumer (B2C)
Peter Alexander Consumer 2 Consumer (C2C)
Stuff.com.au
History of e-Business Early 70s
Government and big organizations make good use of IT, and computers in general
Banks use EFT (Electronic Fund Transfer) to speed up payments
Late 70s, early 80s E-business beginnings
Electronic messaging technologies to carry out business transactions
EDI (Electronic Data Interchange) Inter organizational e-mail
History of e-Business Late 70s, early 80s (cont.)
EDI, e-mail Reduce paperwork, speed up transactions, facilitate
communications, etc. BUT
Only for large companies (manufacturers, retailers) Complex, expensive
Late 80s Small companies join the game
Using e-mail to communicate with big companies Small investment A good move in order to stay in the game
History of e-Business Late 80’s, early 90s
Online services become popular e-mail, news, chat
educational & technical institutions, special interest groups join the game
TCP-IP used as a common communications backbone Birth of the Internet
1995 Online services for the large public (AOL) The browser (and HTML) is commercialized The home page: a new channel for doing business
History of e-Business Late 90’s
Companies began to build home pages to serve as online corporate brochures
As web technologies matured, the first e-commerce transactions were taking place
Around 2000 The “dot-com” revolution: use the web as a
primary channel for product distribution Huge impact on established consumer markets Huge impact on the supply chain (SC)
SC: the chain of processes behind all consumer purchases
History of e-Business Source: Digital Think & ACM Professional
Development Center (digitalthink.com, acm.org)
1970 200019901980 1995
E-commerce begins Online services
emerge Browser
Dot-coms
Virtual Communities & e-Business General e-Business (slide 1)
ShopFast (www.shopfast.com.au) ABC Shop (www.abcshop.com.au) dStore (www.dstore.com.au)
e-Business that have Virtual Communities E-bay (www.ebay.com) Amazon (www.amazon.com) Toms Hardware (tomshardware.com)
Example - Amazon ‘Friends & Favorites’ section Personalized Recommendations – Uses a
Recommender System Special Occasion Reminder Amazon Friends Wish List – that ‘friends’ can access Discussion Boards ‘About You’ Area – Provide information
about yourself to others Suggestions Given – Provide ideas to Staff
Benefits
Benefits of Virtual Communities to e-Business Customer benefits
Main benefit: Customer generated content
Access to competing vendors Commercial orientation
Benefits (cont.) Vendor benefits
Enhanced ability to target Better Marketing abilities Increase propensity for buying Lower marketing costs
Four dynamics to capture and increase revenue in VCs
Content attractiveness Generate product reach, attract
customers and foster the virtual community
Content Attractiveness
Hours On-line
Member-generated content
Members
Member-to-member interaction
Marketing effectiveness
Member churn
Four dynamics to capture and increase revenue in VCs
Member profile “Personalised” profiles through
intelligent agents & data mining - recommender agents, etc
Member Profiles
Data-collectingcapabilities
Targetedtransaction offerings
Advertising revenue Transaction volume
TargetedadvertisingAdvertising
click through
Four dynamics to capture and increase revenue in VCs
Member loyalty Customer retention through VCs and
competitive advantage
Member Loyalty
Hours On-line
member-generated content
Members in VC Memberrelationships
Customised interaction
Member churn rate
Four dynamics to capture and increase revenue in VCs
Transaction offerings Deliver value added G+S and focus
on customer pulling power
Transaction Offerings
Vendor marketing spending
Vendors in VC
Vendor marketing effectiveness
Member willingnessto spend
Attractiveness tovendors
Members in VC
Four stages of Member Development Attract members
Market the eBusiness to the target Attractive website with competitive pricing
Promote participation Incorporate VC features & functionality
Build loyalty Foster community and reward users
Capture value Develop vendor and customer relationships Expansion and continual innovation
Advantages of e-Business Benefits for Consumer
Cheaper products Greater range and variety of products Easier Accessibility Dynamic Support Shop 365 days a year, 24 hours a day Shop at your own pace in your own
privacy No lines, crowds, or annoying salespeople
Advantages of e-Business (cont.)
Benefits for Vendors Cheaper Operating Costs Financial Returns Global Market Place Business operates 24 Hours, 7 Days
of the Week Flexible time Commitment
Disadvantages of e-Business for Consumer
Social Aspects Loss of Senses – touch, smell, sight, taste,
aural Can be Bandwidth Intensive
for Vendor Multiple Legal Systems Greater Competition Consumers have immediate access to
Competitors
Success Factors Increased interaction between potential
consumers Mutual trust between buyer and seller Representation & specification of the product Appropriate functionality within the market
place Reaching out to a global marketplace with a
competitive advantage through competitive pricing and value added products
Provide an eBusinesss solution that builds on the customer’s trust and confidence
Success Factors (cont.) Have an eBusiness operation that is scalable,
secure, manageable and flexible Utilize the knowledge and experience of the
employees in the organisation “Engage customers & suppliers into thinking up
new ways to improve the business” (Leung M. 2002)
Enhanced customer experience through automation
Adapt to constant and continual change in the Internet
Foster the virtual community and customer loyalty Customer interfaces
Issues - Trust
A dynamic process that deepens or weakens according to experience. [Lawrence pg 274]
Customers have different concerns Security, Privacy and Rights
Current law isn’t enough to protect us
Issues - Security
Security concerns include viruses, trojan, spams
Denial-of-Service (DoS) attacks MafiaBoy
A 15 year old tennager hacking into CNN
Issues – Implementing Security
Update the Operating System Virus Scanners Digital Certificates Secured Network Infrastructure Security Policy
Issues – Law
Law conflicts due to International Market
ISP responsibility in Australia Implement An Agreement of Terms
Conclusion
VC & e-Businesses improve the overall aim and goals of a business as a whole
Thank you for your time! Hope you enjoyed the last
Workshop Brought to you by V-Lans© 2003.
References Technology of the Internet Business, Elaine
Lawrence 2002 Digital Think & ACM Professional Development
Center (digitalthink.com, acm.org) Internet Commerce – Digital Models for
Business, Elaine Lawrence 2000 Electronic Commerce Technology Briefing July
10, 1996 Communities in E-Business March 9 - 11, 2003 The E-Business Community must be
embraced, Don Tapscott September 28, 1998
References (cont.) Enabling Knowledge Exchanges For E-Business
Communities, Dr. Yogesh Malhotra, 2002 Richard Turnbill - eROI anonymous - key success factors for new
businesses ebiz.enable - Success Factors Michelle Leung - What are the success factors
for eBusiness? Faruk Waja - So whats this about a anew
economy?