E-Commerce

Business Evolution on Web

Processes Transactions
Functionality

Web-enabled applicatons

Interactivity
Dynamic web pages

Publishing
Static web pages
Time or Maturity
2001 Daniel L. Silver 2

Effects of E-Commerce
Spam Bandwidth load shift Work load time shift Work place shift Play time shift Growth of on-line virtual communities Privacy challenges / new privacy products

2001 Daniel L. Silver 3

Effects of E-Commerce

Liberalization of pornography Promises of wealth creation beyond your wildest dreams seemed unbelievable well it was!! Reducing TV consumption? Dynamic and free content Uncharted legal issues Reinforcing media / converging media Access to commodities such as prescription drugs without normal levels of control
Daniel L. Silver 4

2001

Effects of E-commerce

Credit card fraud Tax avoidance Many new copyright issues Free access to information
How to save a life (CPR, FirstAid, choking) How to build a bomb, or counterfeiting instructions

Accuracy of information sources in question Hacking and computer viruses Shifting barriers of competition Disintermediation and reintermediation
Daniel L. Silver 5

2001

Where has E-Commerce Had the Greatest Impacts?

Postal service Real estate Communications Radio / TV Finance (banks) Entertainment Travel agents Stock brokers

2001 Daniel L. Silver

What do all these Businesses have in common?

Information = $ Time = $ Client self-service is acceptable
6

Pre- dot.com Crash 8 Rules of E-Business

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Technology is the cause and driver, it is no longer an after thought Information collection, integration and timely distribution is the business Outdated business processes must go or your business will die Create flexible outsourcing that excites customers
Daniel L. Silver 7

2001

Pre- dot.com Crash 8 Rules of E-Business

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E-Commerce means: the cheapest, the most familiar or the best Enhance the entire experience around the product (selection, order, receipt, service) Promote reconfigurable business models to meet customer needs The tough task: Align business strategies and processes fast, right, and all at once
Daniel L. Silver 8

2001

Trends effecting E-Commerce/E-Business

Consumer Trends
Speed of Service, Self-Service (empowerment) Integrated solutions, not piecemeal products

Service/Process Trends
Convergence of sales and service Long-term Customer Relationship Management Flexible fulfillment and service delivery

2001

Daniel L. Silver

Trends effecting E-Commerce/E-Business

Organizational Trends
Brand not capital: contract JIT manufacturing Retain the core, outsource the rest Increase process visibility (to customers, suppliers) Employee retention, cont. learning/innovation

Technology Use Trends

Enterprise wide applications, use middleware for integration Integrate voice, data, video comm. channels Handheld and wireless an explosion !

2001

Daniel L. Silver

10

Five Major Predictions for the E-Commerce Future

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E-Commerce technology take-up will continue to grow by ~50% until about ~2013 E-Commerce prices will rise to cover real costs of doing business on the web E-Commerce profits will rise to meet levels of bricks and mortar stores Major players will become the experienced Fortune 500 companies who have been watching (eg. WalMart, Sears, JC Penny, the Gap) The number of successful dot.coms will further reduce and adopt clicks and bricks strategies
Daniel L. Silver 11

2001