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Q: E-commerce ( Answered 4 out of 5 stars,   0 Comments )
Question  
Subject: E-commerce
Category: Business and Money > eCommerce
Asked by: integrated-ga
List Price: $170.00
Posted: 09 Nov 2003 07:23 PST
Expires: 09 Dec 2003 07:23 PST
Question ID: 274072
Business Models:  [answer the following questions please]

1.) What is an electronic business model with example?

2.) Different types, consider sub types if there are?
             ?at least 6 different types?.

Use examples, illustrations, and diagrams to explain concepts.


E-Commerce Business Barriers:   [answer the following  please]

3.) Winning customers.
4.) Identifying & meeting right customer needs.
5.) Developing logical, usable, uncomplicated solution for customers.
6.) Conflicts, traditional outlets .Vs. electronic outlets.
7.) Financial resources , manpower & skills.
8.) System design and implementation  issues .

Use examples, illustrations, and diagrams to explain concepts.

9.) Illustrate what barriers are there and how can or what has been
done to overcome those barriers?

? please indicate which answer belongs to which question on your feed back thanks?

Request for Question Clarification by omniscientbeing-ga on 11 Nov 2003 15:16 PST
integrated-ga ,

I'm not clear on how part 9 of your Question is any different from
parts 3-8. Aren't they asking the same thing? I mean, if parts 3-8 are
answered,  they collectively answer part 9 at the same time, don't
they?

omniscientbeing-ga
Google Answers Researcher

Clarification of Question by integrated-ga on 11 Nov 2003 15:26 PST
yes you right omni about q9 and if you have answered up to q8 then
please send it as soon as possible.
                        thanks integrated

Clarification of Question by integrated-ga on 11 Nov 2003 16:59 PST
omni is it possible to send the answer on 11/11/03
Answer  
Subject: Re: E-commerce
Answered By: easterangel-ga on 11 Nov 2003 19:18 PST
Rated:4 out of 5 stars
 
Hi! Thanks for the question.

Due to the time constraints you have mentioned I will answer your
questions point-by-point by providing links to articles discussing
each question and also provide small snippets from the articles to
save you time. But I highly suggest that you read the articles in
their entirety to get a better understanding of the concepts. The
links will consist of discussions, examples or diagrams.

1. What is an electronic business model with example? Our first link
provides a thorough discussion of the general e-commerce business
model complete with examples and diagrams.

?The goal of this sections is to define an approach that brings
e-business model literature one step further, by providing a more
rigorous building-block-like methodology that defines the essential
concepts in e-business models and shows the relationships between
them. Our e-business model ontology has in some ways been inspired by
the different enterprise ontology projects described in academic
literature (Toronto Virtual Enterprise, Enterprise Ontology, Core
Enterprise Ontology) (Bertolazzi et al., 2001). An ontology
essentially gives a common understanding of a specific domain by
defining its elements and the relationships between these elements. We
think this rigorous and formalized business model approach is
necessary in order to achieve the five main advantages described above
(see first section).?

?As explained above, our e-business model ontology is founded on four
main pillars (figure 2). (1)The products and services a firm offers,
representing a substantial value to the customer, and for which he is
willing to pay. (2) The infrastructure and the network of partners
that are necessary in order to create value and to maintain a good
customer relationship. (3) The relationship capital the firm creates
and maintains with the customer, in order to satisfy him and to
generate sustainable revenues. And last, but not least, (4) the
financial aspects, which are transversal and can be found throughout
the three former components, such as cost and revenue structures.?

?An e-Business Model Ontology for Modeling e-Business?
http://econwpa.wustl.edu/eps/io/papers/0202/0202004.pdf 

---------------------
2. Different types, consider sub types if there are? (at least 6 different types)

In our next article, there are 9 recognized basic e-commerce sub models.

Brokerage 
Advertising 
Infomediary 
Merchant 
Manufacturer (Direct) 
Affiliate 
Community 
Subscription 
Utility

?Business Models on the Web?
http://digitalenterprise.org/models/models.html


-------------------
3.) Winning customers

?Customers are worried about credit card theft; the privacy of their
personal information; and slow, unacceptable network performance. Most
shoppers still aren't convinced that it's worthwhile to hook up to the
Internet, search for shopping sites, wait for the images to download,
try to figure out the ordering process, and then worry about if their
credit card numbers will be meddled with by a hacker. To convince
consumers, e-merchants will have to do a lot of educating. However,
Gail Grant, the head of Commerce Net's financial research arm,
www.commerce.net, predicts that most buyers will be won over in just a
few years. Grant says that if Web pages were labeled with tags giving
product and pricing information, it would be easier for search engines
to find stuff to buy online. That hasn't happened yet, she adds,
because merchants want people to find their products but not their
competitors', especially if another company's goods are cheaper.?

?As for business-to-business systems, (B2B), the issues are less
emotional but still serious. Businesses do not yet have good models
for setting up their e-commerce sites, and they have trouble sharing
the orders and information collected online with the rest of their
business applications. Many companies continue to grapple with the
idea of sharing proprietary business information with customers and
suppliers, which is an important component of many B2B e-commerce
systems. The key to solving the business model is for merchants to
stop relying on fancy programming (in Java applets) and to restructure
their operations to take advantage of e-commerce, says Grant.
E-commerce is just like any automation, it amplifies problems with
their operation they already had.?

?E-Commerce Guide?
http://www.msp-asia.com/Guide.htm 


--------------------
4.) Identifying & meeting right customer needs.

?Online growth is by no means a certainty. Most retailers have
identified six barriers facing them to generating income online?

Increasing consumers? comfort level
Resolving technology limitations
Rapidly scaling internal operations
Engineering comprehensive convenience
Developing low-cost distribution
Resolving channel conflict

?Barriers To Growth?
http://outdoortech.net/solutions/commerce04.htm 


--------------------
5.) Developing logical, usable, uncomplicated solution for customers:

?To take advantage of the benefits of e-commerce and e-business, a
company must extend its traditional support and e-commerce
infrastructure, including customer relationship management solutions,
to embrace the Internet and the online interactions that will
ultimately drive the e-commerce transactions ?

?Therefore, an enterprise must coordinate and manage customer
interactions in a consistent, seamless manner across all contacts,
functions, and communications channels. Most e-business companies are
working to improve customer loyalty through customer intimacy
initiatives, leveraging new technologies and processes that use data
to achieve more personal and targeted communications. Data derived
from customer interactions can yield greater knowledge of a customer?s
desires and needs on the part of the seller. ...companies are now
listening more closely to customers to become ?the cheapest?, ?the
most familiar?, and/or ?the most innovative?.?

The strategies used in the article talks about personalized marketing
and personalized services and support.

?The Case for Customer Interaction Management?
http://www.parago.com/pdfs/Deloitte.pdf


--------------------
6.) Conflicts, traditional outlets vs. electronic outlets:

 ?One oft-noted critical challenge for click and mortar enterprises is
the potential for multi-channel conflict to arise, leading to one
cannibalizing sales from the other, limited cooperation, customer
confusion, and even sabotage of one channel.?

?In many situations, traditional firms may lack important competencies
needed to achieve synergy benefits with e-commerce. For example,
traditional firms may lack Web development skills, or logistics skills
needed to serve distant markets. In these situations, alliances may be
more useful than attempting to develop a virtual channel in-house.?

?The final component of the framework identifies four categories of
synergy benefits, including 1) lower costs 2) differentiation through
value-added services, 3) improved trust, and 4) geographic and product
market extension.?

?Integrating Brick and Mortar Locations with E-Commerce: Understanding
Synergy Opportunities?
http://www.msu.edu/~steinfie/HICSS2002.pdf 


-----------------
7.) Financial resources , manpower & skills:

?According to the speaker, stage one of e-commerce adoption usually focuses on
cost reduction via increased efficiencies and effectiveness within existing
business models. This often tends to attract companies offshore, to areas with:?

? ?Lower labor costs, yet a high standard of education.?
? ?Good (local) infrastructure with global connectivity,?
? ?Tax breaks for exports.?

?This ignores the impact of stage two of e-commerce, which involves
revolutionary change in the business model. This requires skills in
innovation and business change that are likely to be incompatible with
offshore out-sourcing. Such skills are more likely to be found in
?clusters?: geographic concentrations of interconnected companies and
institutions in a particular field.?

?The Business/Financial Dimension of the Information Revolution?
http://www.rand.org/publications/CF/CF154/CF154.pdf/CF154.chap5.pdf 


In a recent article in Forbes magazine, Andrew Grove of Intel mentions
that there great movements of not only manpower but also IT and
E-commerce leadership in Asia and away from the US.

?Indeed, many U.S.-based companies are either thinking about or have
already sent white-collar jobs outside the country. Companies can
often cut costs and boost productivity dramatically by hiring skilled
labor in India and other countries. Much of that work lately has
involved software development and professional services.?

?Grove says that the U.S. government should invest more to attract and
retain talented students. After all, the United States, he points out,
has committed more than $60 billion in subsidies and aid to farmers,
oil and steel companies and airlines. ?One billion a year (to promote
science education) would help us reach this goal.?"

?Intel chief: U.S. losing tech lead, jobs?
http://money.msn.com/content/invest/forbes/P63142.asp 


Our next two links provide the outlook and issues for manpower in IT
related services like E-commerce sector.

?Rapid growth in employment can be attributed to the explosion in
information technology and the fast-paced expansion of the computer
and data processing services industry. In order to remain competitive,
firms will continue to install sophisticated computer networks and set
up more complex Internet and intranet sites. Keeping a computer
network running smoothly is essential to almost every organization.
Firms will be more willing to hire managers who can accomplish that.?

?The security of computer networks will continue to increase in
importance as more business is conducted over the Internet.
Organizations need to understand how their systems are vulnerable and
how to protect their infrastructure and Internet sites from hackers,
viruses, and other acts of cyber-terrorism. As a result, there will be
a high demand for managers proficient in computer security issues.?

?Due to the explosive growth of electronic commerce and the ability of
the Internet to create new relationships with customers, the role of
computer and information systems managers will continue to evolve in
the future. They will continue to become more vital to their companies
and the environments in which they work. The expansion of e-commerce
will spur the need for computer and information systems managers with
both business savvy and technical proficiency.?

?Computer and Information Systems Managers?
http://www.bls.gov/oco/ocos258.htm 

?Computer Programmers?
http://www.bls.gov/oco/ocos110.htm 


---------------------
8.) System design and implementation issues:

a. Design:

?How a site is designed -- typography, color, page layout, site
hierarchy, to name just a few elements -- can have an immediate and
lasting impression on visitors. And it can keep them coming back.
According to a study conducted by Forrester Research, three of four
factors most likely to drive repeat visitors to a web site were design
related: ease of use, download time, and freshness. Eight of nine
other factors tested came nowhere close in influencing repeat
visitors. Similar results are found in terms of web users typical
sources of frustration. A benchmark study of site usability suggests
that improvements have been slow in coming, as sites seek to add more
features.?

?Digital Design?
http://digitalenterprise.org/design/design.html 


b. Security and Privacy

?The challenge of operating a secure web site is very real. The number
of companies that have been attacked by hackers has grown dramatically
the past few years. The losses from security breaches, in terms of the
time and effort expended and lost productivity, are mounting. CERT,
which monitors reports of computer network security breaches from
around the world has registered a steep rise in the number of reported
incidents in the past few years (see chart below).?

?Security and Encryption?
http://digitalenterprise.org/security/security.html 

?We all want sensitive personal and financial data to be secure from
theft and misuse. But the issue of privacy is more than security
alone. There are complex questions of who controls the data about us
(individually and collectively) and how it is used. What rights do
users have to preserve their privacy? What are the rights of data
owners who exploit information about web users without their
permission? How should permission be obtained? And indeed, who can (or
should) claim ownership over the data collected? Is it the merchant,
or advertiser, or service provider, or consumer who should be in
control??

?A recent study sponsored by IBM found that 54 percent of US consumers
have decided not to purchase something from a company because they
weren't sure how their personal information would be used. The poll
also found that over 50 percent of all Internet users are concerned
about threats to their personal privacy and over 70% believe it is
very important that a Web site display a privacy notice before they
would be willing to make a purchase.?

?Internet Privacy?
http://digitalenterprise.org/privacy/privacy.html


c. Making your e-commerce site visible to Search Engines

i.) Search Engine Submission:
??Search engine submission? refers to the act of getting your web site
listed with search engines. Another term for this is search engine
registration.?

?Getting listed does not mean that you will necessarily rank well for
particular terms, however. It simply means that the search engine
knows your pages exist.?

ii.) Search Engine Optimization
?"Search engine optimization" refers to the act of altering your site
so that it may rank well for particular terms, especially with
crawler-based search engines (what these are will be explained later
in this guide).?

?Intro To Search Engine Submission?
http://www.searchenginewatch.com/webmasters/article.php/2168011  


Search terms used:                                
e-commerce online barriers operations financial ?customer service?
marketing technical issues
                       
I hope these links would help you in your research. Before rating this
answer, please ask for a clarification if you have a question or if
you would need further information.
                               
Thanks for visiting us.                               
                               
Regards,                               
Easterangel-ga                               
Google Answers Researcher
integrated-ga rated this answer:4 out of 5 stars
well done!! kept the answrers to the subject

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