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The Future of e-Commerce

The Future of e-Commerce. Georgios Georgiou Business Innovation Services IBM Global Services IBM Cyprus. Our Objectives. Understanding the promises of e-commerce Ready for the New Frontier How Do You Dominate. Manufacture/Distributors. Supplier. WCS. Web Browser. Seller. Supplier.

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The Future of e-Commerce

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  1. The Future of e-Commerce Georgios Georgiou Business Innovation Services IBM Global Services IBM Cyprus

  2. Our Objectives Understanding the promises of e-commerce Ready for the New Frontier How Do You Dominate

  3. Manufacture/Distributors Supplier WCS Web Browser Seller Supplier Buy-side/ Sell-side Tools XML/Program WCS Supplier Web Browser Consumers Web Browser Seller Web Browser WCS Web Browser Business-to-consumer • Buying and selling across the supply chain • Another way of doing business electronically • Integrating with systems, applications and processes Electronic Commerce Is ... Buyer Buyer Buyer Business-to-business e-Marketplace

  4. e-commerce ... A Whole New World! • New global opportunities • New rules of engagement • New competition • New customers

  5. $35B $7.7B 1999 2000 2001 2002 e-commerce Growth WW Business to Consumer Growth

  6. $1.3T $48B 2000 2001 2002 e-commerce Growth WW Business to Business Growth 1999

  7. e-commerce Growth

  8. e-commerce Drivers Business Customers • Convenience • Effectiveness • Value • Improvedefficiencies andcycle times • Customer loyalty • New opportunitiesfor revenue growth

  9. ibm.com Wave 3 e-procurement e-care e-commerce Integrated Supply Chain Wave 2 Fulfillment Procurement Production Suppliers Customers Customer Relationship Management Wave 1 Human Resources Finance Employees One Proof Point Since 1993 IBM has: Improved efficiencies and cycle times • Saved $3.6 billion in materials acquisition cost • Cut overall logistics costs by 24% • Reduced annual IT costs by 45% • Improved on-time shipment to 90%-98% • Shortened delivery cycle time by 55% • Improved inventory turn by 44% • Put 80% of parts on consumptive pull Shortened demand/supply planning cycle from 60 to 20 daysCustomer loyaltyReduced supplier listNew opportunities for revenue growth • Customer Relationships Integrated Product Development

  10. B2B Trends: e-marketplaces • More than 8 million participants expected by 2002 and more than 3 million sellers participating in e-Marketplaces by 2002

  11. e-Marketplaces Are Here E-Marketplaces are: • Neutral • Internet based intermediaries • Focused on specific industry verticals or specific businesses processes • Host electronic marketplaces • Mediate any-to-any transaction among businesses. Vertical Exchanges Horizontal- focused on reducing the inefficiencies of spot purchasing Vertical- facilitate the exchange of manufactured inputs to specific vertical industries Petrochemicals Travel & Transport. Automotive Electronics Healthcare Aerospace Insurance Finance Utilities CPG Horizontal Exchanges

  12. Content Management Personalisation Search Multi-language Commerce Catalog Management Price Discovery - RFQ, Fixed Pricing, Auction, Exchange Transaction Processing Payment Processing Community Discussion Forums Bulletin Boards Chat Messaging Commerce Community Advertising Targeted Advertising Campaign Mgt. Ad performance monitoring Support Member registration Member Support Logistics Site Analysis Advertising /Promotion Support Services E-MARKET Technical Functions Seller Services Buyer Services Buyer Services Registration Catalog population Integration Technical Functions Any to any connectivity Security Seller Services Registration Catalog population Integration What functionality do e-markets provide? Content Management

  13. eMarketPlaces

  14. Olympics Expand to New Markets or Geographies • Largest quadrennial event in the world • Provide intranet for 260,000 members of the Olympic family (athletes, coaches, officials and media) • Deployed e-commerce for merchandise andTicket Sales!

  15. Olympics: Business Value Expand to New Markets or Geographies • Handled 11.3 billion hits during the Games • Entire Olympic Web hosting complex was 100 percent available from start to finish • IBM results system carried times and scores of every event from every venue to more than 20,000 broadcasters and world news press agencies

  16. Mobile: Business to Everywhere! Transaction that is partially or completely facilated by the use of mobile wireless means and takes place between 2 or more parties and involves the 2-way exchange of goods/services for monetary consideration “ ” — Aberdeen Group, August 2000

  17. The Market Is Real! Thousands Billions — Forrester, 2000

  18. Mobile Devices • Short Message Service == 160 character text messages • like pager or instant messages • receive-only or receive & send cellphone w/SMS wireless PDA • cellphone with tiny or small screen • Wireless Application Protocol (WAP) with Wireless Markup Language (WML) browser • Japan: i-mode & cHTML • limited keyboard cellphone w/WAP • Personal Digital Assistant w/modem • smaller screen, often no keyboard • HTML browser • PALM VII, Psion, PocketPC, .... • laptop w/wireless modem • standard browser • no special application considerations laptop w/wireless modem

  19. Mobile Scenarios! B2B/B2C • Purchase and receive notification via cell phone/PDA • Order from downloaded interest list • Obtain price quotes • Lead Management / Distribution Auctions • Registration via browser • Event notification via SMS/WAP Marketplaces • Dynamic marketplace functions (e.g., RFQs) • Exchanges • Vertical Markets • Healthcare: Patient Tracking and reporting • Pharmaceuticals: Samples and signature management

  20. e-commerce is Just the Beginning e-commerce

  21. Know Thy Customer 93% of CEOs view customer retention as most critical success factor! It costs 5-10X more to acquire a new client than retain your current customers Companies lose 50% of their Customers every 5 years

  22. e-mail Print Relationship Marketing Process • Product • Creatives • Editorial • Images Explicit - Registration/Q & A - Legacy data - Third party source Implicit - Past history - Current activity on site Content Web Personalization Framework What's delivered Customer data POS • Customization • Targeting • Prediction Call center - Ads - Promotions - Up-sell - Cross-sell - Configurations - Customization - Editorial (content) - Updates - Reminders - Loyalty programs - Service and support Business Intelligence - Usage analysis - User analysis - Commerce analysis - Data mining Business Manager

  23. e-commerce e-commerce e-commerce e-commerce Integrates Everything e-commerce

  24. Develop a corporate-wide, customer-driven strategy m-commerce integral part of any e-biz strategy • Define Measureable Goals • Improved Efficiencies • Customer Loyalty New Revenue • Determine your requirements Getting Started

  25. Requirements • Degree of e-Commerce functionality • Data warehousing and data mining • Integration of e-Commerce and legacy apps • Web site hosting • Web site design • e-commerce skills assessment or consultant costs

  26. Future Cost of an E-Commerce Site (Circa 2000) Gartner Group, The Real Cost of E-Commerce Sites, May 1999 $20M 20 15 10 $1 million to $5 million 5 $300,000 to $1 million 0 Get on the Map Run with the Pack Market Differentiator "Increasing efficiency through Internet transactions will result in an estimated $57 billion in cost savings."

  27. What works • Executive commitment • Cross-functional Internet team • Experience (Start simple, grow fast!) • Customer-centric seamless experience • Customer intimacy • Fanatical customer service

  28. Experienced web developers • Integrated with existing systems, processes • Robust, secure, and available environment • Accessible to your audience • Be prepared for the unexpected! What works

  29. Plan for Success! “e-businesses promise to create the richest, most diverse marketplace the world has ever seen. Now is the time to exploit this opportunity, or be exploited by those who do!”

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