Presentation on theme: Mobile Digital Platform and mobile E-commerce /

Building E-commerce Presence — Presentation transcript:

 The Mobile Digital Platform and Mobile E-commerce

M-commerce In 2012 is 10% of all e-commerce Fastest growing form of e-commerce Some
areas growing at 50%Four billion mobile phone users worldwide Main areas of growth Retail
sales at top Mobile 400 (Amazon, eBay, etc.) Sales of digital content (music, TV, etc.) Local
search for restaurants, museums, stores This slide introduces m-commerce, the use of wireless
mobile devices for purchasing goods and services. It can be noted the applications we
purchased on our cellphones as well as the gaming and entertainments services like YouTube,
mobile games, Netflix, Amazon Prime, etc.

Consolidated Mobile Commerce Revenues

This graph illustrates the surging growth of m-commerce sales from today to In the early years
prior to 2009, m-commerce in the United States was very small and not growing rapidly. Cell
phones, especially smartphones, have changed that. Have any of the us purchased something
using cell phone or mobile laptop computer? Of Course. How many us are using a smartphone?
How many have used a smartphone app to compare prices while shopping at stores? Figure 10-
9 Mobile e-commerce is the fastest growing type of B2C e-commerce although it represents
only a small part of all e-commerce in 2011. But at present you can see Lazada, Shoppee,
Amazon, Alibaba and many more online as it grows yearly.
The Mobile Digital Platform and Mobile E-commerce
Location-based services Used by 74% of smartphone owners Based on GPS map services Types
Geosocial services Where friends are Geo advertising What shops are nearby Geoformation
services Price of house you are passing M-commerce is especially well-suited for location-based
applications and services. Samples that we used a location-based service are Waze, Google
maps, etc A neat site to visit is and explore with a geo-tagging service.

The Mobile Digital Platform and Mobile E-commerce

Other mobile commerce services Banks, credit card companies provide account management
apps Mobile display advertising Ad, Ad Mob, Facebook Games and entertainment
Downloadable and streamable services Games Video, short films, movies, TV shows Music and
ring tones

 Building an E-commerce Web Site

Pieces of the site-building puzzle Assembling a team with the skills required to make decisions
about: Technology Site design Social and information policies Hardware, software, and
telecommunications infrastructure Customer’s demands should drive the site’s technology and
design. Building a Web site involves a number of considerations. If it’s an e-commerce site,
customer preferences should be the driving force behind the design. What are customers
looking for, how can they find it on your site, and how easily can they purchase on your site?
How will you choose the technology? What about your sites information policy? What’s that? If
you don’t know, your customers will surely expect you to know.

1
Building an E-commerce Web Site
Business objectives The capabilities the site should have Business decisions should drive
technology Example: execute a transaction payment System functionality Technology needed
to achieve objective Example: a shopping cart or other payment system Information
requirement Specific data and processes needed Example: secure credit card clearing, multiple
payment options Building an e-commerce site begins with understanding the business first,
then using the technology to support the business.
 Building an E-commerce Web Site
Alternatives in building the Web site: Completely in-house Mixed responsibility Completely
outsourced Co-location Web site budgets Several thousand to millions per year50% of budget is
system maintenance and content creation One of the most important decisions managers make
in e-commerce is concerns how to build the Web site. There are a number of options. Although
technology costs for building Web sites have fallen dramatically, so also have labor costs. There
are now plenty of skilled Web designers, programmers, and network administrators (although
here the labor market is a bit tighter). Which options are most appropriate for particular kinds
of companies? What is best for a small business with a handful of employees? What is best for a
single individual with little technical experience? What is best for a medium-size business with a
handful of locations?
Choices in Building and Hosting Web Sites
Figure 10-10 Here is the comparison of In-House and Outsourcing in building a website.
 Components of a Web Site Budget
Figure 10-11 Every site is different and this example of a Web site budget should be considered
as just an example. In the past, content development has usually been under budgeted. As it
turns, obtaining content for many contemporary visual sites, and associated text, can be quite
expensive. The figure shows how ecommerce give big budget on web design.

Building an E-commerce Presence

- Understand the questions you must ask and answer, and the steps you should take, in
developing an e-commerce presence.
- Explain the process that should be followed in building an e-commerce presence.
- Identify and understand the major considerations involved in choosing web server and
e-commerce merchant server software.
- Understand the issues involved in choosing the most appropriate hardware for an e-
commerce site.
- Identify additional tools that can improve website performance. (*)
- Understand the important considerations involved in developing a mobile website and
building mobile applications.

Imagine Your E-commerce Presence

- What’s the idea? The vision includes:
o Mission statement
o Target audience

2
o Intended market space
o Strategic analysis
o Marketing matrix
o Development timeline
o Preliminary budget

- Where’s the money?

o Business model(s)
o Revenue model(s)

- Who and where is the target audience?

o Demographics, lifestyle, consumption patterns, Digital usage patterns
o Content creation patterns (blogs, Facebook)

- What is the ballpark? Characterize the marketplace

o Size, growth, demographics, structure

- Where’s the content coming from?

- Know yourself—SWOT analysis
- Develop an e-commerce presence map
- Develop a timeline: Milestones
- How much will this cost?
o Simple websites: up to $5000
o Small web startup: $25,000 to $50,000
o Large corporate site: $100,000+ to millions