1.1 Introduction to Digital Business and
E-commerce
Differences between digital business and e-commerce
E-commerce
The transaction is the purchase / sale
and all the features of this
transaction
To sell a product is required:
Inventory, suppliers, negotiatons,
payments, purchases, etc.
Sumary: All
electronically
mediated information
between an
organization and
stakeholders
The e-commerce has the sell-side and the buy-side
Digital business
The processes are
behind the sale
How business apply
technology and media to
improve
competitivenessof their
organization through
optimizing intenarl
processwith online and
traditional channelsto
market and supply.
The digital business implies several others
enterprise systems and networks with business
associates, authorities, banks, export/import
agents, etc.
A digital business use
the Internet to connect
with customers,
partners, suppliers,
employees and any
related entity
The main drivers for
adoption are:
Generally related to profitability or
generating value to an organization
Cost/efficiency drivers: Increasing
speed with which supplies can be
obtained. Increasing speed with
which goods can be dispatched.
Reduced sales and purchasing costs.
Reduced operating costs.
Competitiveness drivers:
Customer demand.
Improving the range and
quality of services offered.
Avoid losing market share
to businesses already using
e-commerce.
To types of Barriers to
adopt the
new
technology
Practical
practical risks are those that are
related to bad management of the
process that can result in a bad
customer experience.
Websites that fail because of a spike in
visitor traffic after a peak- hour TV
advertising campaign.
Hackers penetrating the
security of the system and
stealing credit card details.
A company emails customers without receiving
their permission, so annoying customers and
potentially breaking privacy and data protection
laws.
Problems with fulfilment of goods ordered
online, meaning customer orders go missing or
are delayed.
Email customer service enquiries
from the website don’t reach the
right person and are ignored.
Strategical
Strategic risk includes perception of a
high cost of adoption or making wrong
decisions about digital business
investment
Digital technologies
Internet, World Wide
Web and the Wireless
Communications
The organizations make significant changes
on their processes, structures and systems
issues
Rate of inovation, like
social media and search
engines, adopt new
business and revenue
models, new marketing
techniques, people and
tools to managing the
technology
Risks
Poor site design, availability
or performance, products
unavailable although
advertised, poor experience
or service, negative reviews,
managing security and data
privacy.
Organizations have been applying digital technologies generally to gain competitiveness, reduce costs and increase
revenue. These digital technologies can transform not only internal processes related to employees or partners but
also those related to customers. It is in this regard that we talk about two different terms: digital business and
e-commerce. Digital Business, is the way business apply the digital technologies in their core processes. Organizations
tap into the implementation of digital technologies when there are tangible benefits to be gained in a short time, these
benefits are related to optimizing the way they currently work with your suppliers, how fast products are shipped to
customers, or, how demand can be increased, and other examples. Organizations also have to deal with risks of digital
business adoption such as wrong decisions about the digital business
1.2 Marketplace Analysis for E-commerce
Market analysis
Is important because it allows us to analyze
supply and demand for a good or service
within a market in order to determine the
penetration that this may have on the real
market.
Competitors
1. How they perform?,
2.How they fail, 3. How
they success?, 4.What
market you can take?
Audiences
1. Where they are?,
2. How they react
and interact?, 3.
Where they are
going?, 6.How you
can retain them?, 5.
How to comunicate
with you and your
staff?
The online elements of
the organization’s
environment.
Society, Country specific-
International legal,
Coutry
specific-International
economic, Technology
Tools to analize the marketplace
Marketplace map
One of the most relevant parts of the analysis of
online marketplace is the set of techniques/tools
they can use to evaluate a company within its
online marketplace for instance
Marketplace channel structure
The business model of company
One time than the analysis
is done, the company have
make your model of
business, one of them is the
canvas model
Canvas model
Value proposition
Products or/and services
a business offers to meet
the needs of its customer
Customer segments.
The target
audiences to
whom the value
proposition will
serve.
Customer
relationships.
The types of
relationships that will
be formed.
Channels.
The methods
by which the
organization’s
services will be
delivered and
the audiences
reached
Key partners.
To exploit online and
offline value networks,
forming partnerships
gives an opportunity of
expanding reach and
taking advantage of
existing organizations
Activities.
The key activity
to deliver the
product and
generate revenue
Resources.
Process and
people than
have the
company to
make and
deliver the
product
Cost structure.
Differents
costs, these
sould be
cheked against
activities and
resources
Revenue
stream
This is the
method by
which a
business
derives
income.
Revenue models
Advertising, Cost Per Clic
(CPC), Cost Per Thousand
(CPM), Cost per Acquisition
(CPA), Subscription,
Sponsorship, Affiliate
marketing
1.3 Managing Digital Business Infrastructure
As set of all the elements
necessary to support a
project. In this case we could
say that it refers to all the
elements that enable digital
business
Structure
Components
Systems
software layer:
this is where
the processing
data take place
Aplication layer:
transform the
user´s
information in
data can be
processed
Physical
network and
transports
standar(TCP/IP)
LAYER: this
refers the
network that
carriers the
information
Storage/physical layer:
Components of
memory, disks where
store the information
Content and Data layer: It
referes to the processing the
data provided by employed into
information
Architecture
This is referred to how
all business entities are
connected. An entity
refers to customers,
suppliers, partners or
employees. They must
be interconnected to
share information
among all.
1.4 E-environment
Legal issues
Trade agreements, tax jurisdiction,
commercial regulations, patent and
brands agreements, and so on.
socially responsible
comply with a set
of environment
regulations,
“green” packages,
not use
aggressive
materials
Social and legal factors
Ethical, social, legal factors
Cost of access to
internet, Value
proposition, Ease
of use, Safety and
fear of the
unknown, Buying
behavior,
Consumer
motivation
The ethical
behavior is
related by
the society
the privacy is related
of handling of
personal information
of consumers
Enviromental and green issues
Reduce multiple ways about use
the natural resouces, print less,
less paking, and so on.
Taxanation
are regulated in each
country where were
sold
Economic and competitive Factors
Developement
technology and
economically
Political
Each country is different
legislate
E-goverment
Is different that
Political, this is how
implements actions to
grow the e-commerce
in your country