3. Building a presence Flashcards
Imagine your presence
- Vision = hope to accomplish
- Idea = mission statement which is the goal that a company wants to reach in the market
- Revenue = advertising/ subscription / tranaction fees/ sales / affiliate revenue
- Costs
- target audience = demographic/ behavior / consumption patterns
- Market characteristics = strategic analysis to find the position of the company → competitors, suppliers, substitute products
Analyzing your presence
- tools for analysis
- yourself → S.W.O.T.
- Competition → Porter’s five
- Environment → S.L.E.P.T.
- S.W.O.T. = strategic planning technique used to help a person identifying his strength, weaknesses, opportunities and threatens related to business competition and project planning
SWOT
-
strengths = characteristics that provide advantages over others
- current sites do not address market needs
- easy navigation
- better personalization
-
weakness = characteristics that place the business at a disadvantage relative to others
- limited financial resources
- no prior online experience
- no media attention
- opportunities = elements in the environment that a business could use for its advantage
- threatens = elements in the environment that could cause trouble for the business
SLEPT Analysis
= framework of macro-environmental factors used in the environmental scanning component of strategic management → external analysis when conducting a strategic analysis
- social factors = include the influence of consumer perceptions in determining usage of the internet for different activities
- legal and ethical factors = determine the method by whic products can be promoted and sold online. Governments, on behalf of society, seek to safeguard individuals rights to privacy
- economic factors = variations in economic performance in different countries and regions affect spending patterns and international trade
- political factors = national governments and transnational organizations have an important role in determining the future adoption and control of the internet and the rules by which it is governed
- technological factors = changes in technology offer new opportunities to the way products can be marketed
Systems developmet cycle
- Analysis and planning
- objectives = list of business objectives
- system functionalities = system capabilities to achieve business objectives
- information requirements = information elements that the system must produce
- Design of hardware and software platforms
- system design = description of main components of a system and their relationship to one other
- logical design = data flow diagrams and processing functions
- physical design = specifies actual physical components
- Building the system
- build own vs. outsourcing → requires team with different skill set and choice of software
- host own vs. outsourcing
→ hosting = hosting company responsible for ensuring site is accessible
- Testing
- Implementation + maintenance
→ while the beginning of the process is over the operational life of a system is just beginning
→ therefore they need continual checking, testing and repair
Business models for E-commerce
- main hypothesis
- the business model concept is the missing link betweem business strategy, business processes and Information Technology (IT)
- three different main pillars of importance to BISE
- business models in IT industries
- IT enabled (IT-fähige) or digital business models
- IT support for developing and managing the business models
Foundarions of the business model concept
Business model = Abstract representation of an organization with his core interrelated architectural ´, co-operational and financial arrangement and his core products and/or services that the organization offers or will offer, based on these arrangements that are needed to achieve its strategic objectives
- strategy focuses on how to prevail over competitors
- Business model depict the logic of value creation and the effective coordination of business resources
- Business process describes the production of a specific output through the use of several input factors
Three pillars of business model research
- Business Models in IT industries
- the IT are facing challenges and opportunities
- shortening life cycles
- low production costs
- copying without any loss of quality
- internationalization of markets
- network effects
- Digital Business models
- Digital Business model = A business model is digital if changes in digital technologies trigger fundamental changes in the way business is carried out and revenues are generated
- especially in the media retail, financial services and logistics
- important aspects:
- division of labour between companies
- value creation
- ICT as the driver of a new wave of industrialization
- ICT-enabled changes in product service models
- emergence of entirely new business models
- Ecosystems and consumer behaviour
- IT-Support for Developing and Managing Business Models
- development of tools for visualization, simulation or decision support
B2C Business Models
E-Tailer
= Online Version of a retail store where customers can shop at any hour without leaving their house (Amazon, Wallmart)
B2C Business Models
Community provider
(Advertising, subscriptions, affiliate fees, transaction fees)
= sites where individuals with particular interests and common experience can come together and exchange information online ( Facebook, LinkedIN)
Content provider
(subscription, advertising, pay per download)
= site that offers film, music, television, games other content (Netflix, Youtube, Spotify)
Transaction Broker
(Transaction fee)
=processors of online sales transactions that increase customers productivtiy by helping them get things done faster and cheaper fo a transaction fee (Expedia, Trivago, Paypal)
Market Creator
(Transaction fee)
= business that use Internet technology to create markets that bring buyers and sellers together (eBay)
