IQ SCHOOL OF FINANCE

CFAP 03 – STRATEGY AND PERFORMANCE MEASUREMENT

BY MUZZAMMIL MUNAF | ACA | ADVISOR | TRAINER |
SUMMARIES AND MIND MAPS
EFFECTIVENESS OF ICT
EFFECTIVENESS OF ICT
E-Business
[E-business includes all aspects of e-commerce, but also includes work flows and movements of information within an entity. Internal processes are driven by e-business methods as well as external
relationships with customers, suppliers and other external stakeholders]

The impact of the internet on business

strategy and competition (Porter)
[Porter argued that two main factors determine the
profitability of a business entity; structure of the
industry in which it competes and ability of the
entity to achieve a sustainable competitive
advantage.]
Barriers to E-Business
Main business and marketplace models for delivering e-business [Although many companies engage in some form of e-business,
[The internet has given companies an opportunity to sell their goods or services to a large number of there are barriers to setting up e-business activities and
customers, and to find new suppliers. Following are the main types of business models] maintaining them so that they remain an effective way of
developing the business]

E-
procurement
As well as
Intermediary creating larger Advertising
Competitive Bargaining On-going
Providing companies markets for The internet
rivalry with power of Alliances of Set-up costs. operating
Threat of new electronic Their business consumer has also Customer
existing suppliers Bargaining suppliers It can be fairly costs.
entrants auctions is based on goods and created new relationships
competitors Suppliers are power of In some expensive for A website has No in-house
In many These are acting as services, opportunities Promotion The internet Time to
The internet able to use the customers markets, a small to be updated skills
industries, the E-Shopping websites agents for communicatio for advertising Opportunities provides Type of establish the
encourages internet to Customers are businesses company to business frequently, to system A company
barriers to (customers where selling the ns networks and are provided opportunities
greater increase the able to obtain have created establish a keep it might not
entry have buying goods customers can (similar) and computer marketing. by the chance for companies Some It takes time
competition. number of information alliances with website for interesting employee
been lowered. or services by auction goods products or systems have Companies to send to build products and to establish a
Companies clients or about the rival shared selling its (and accurate), individuals
By using the placing an for sale, and services of a created new can advertise promotional customer services are website that
provide a customers for products of websites for products and and it might with the
internet, new order on put in bids for large number opportunities their products messages by relationships, easier to sell customers
large amount their products. many different selling their taking be necessary knowledge or
competitors company's auctioned of different for business- or services on e-mail to for example by on the internet know about
of information As a result, the competitors products to payment by to keep skills to
can enter the website) items. eBay is companies, to-business search engines potential providing than others. and want to
about bargaining by using customers credit card, making special maintain a
market more perhaps the and attracting purchasing by such as customers. support, user visit.
themselves power of search over a wider debit card, offers to website.
quickly and most well- customers to linking up the Google, or on forums and
and their suppliers is engines. geographical Interswitch or encourage
more cheaply. known their website. computer the websites FAQ
products on likely to area. PayPal. customers to
example. (foodpanda, systems of of other
their websites. increase. revisit the site.
sastaticket.pk) companies companies.
with those of
their main
suppliers.

Always a mentor | Muzzammil Munaf

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IQ SCHOOL OF FINANCE
CFAP 03 – STRATEGY AND PERFORMANCE MEASUREMENT
BY MUZZAMMIL MUNAF | ACA | ADVISOR | TRAINER |
SUMMARIES AND MIND MAPS
EFFECTIVENESS OF ICT
DESIGN OF AN E-COMMERCE WEBSITE

Design features such as The website is an

The website must be
easy to use. The user
must be able to navigate
through the site easily.
the ability to enlarge
Screens should also be
images of products, or
visually attractive, to
obtain additional
encourage users to
information about a
browse through the site.
product, may also be
very useful.
The system must allow
The website must be advertising medium as
users to interact with it, Website should be System must be
kept up to date. For well as an electronic The system must be able
so that the users can available all the time integrated with all
example, the availability store. It can be designed to reassure users that it
choose their own route with least possible necessary functions of
of products must be kept in such a way that the is secure.
through the website downtime. the department.
up to date. user's attention is drawn
easily.
to additional products.

E-MARKETING AND THE 7 P's OF MARKETING MIX

PRODUCT PRICE PLACE PROMOTION PHYSICAL ENVIRONMENT PEOPLE PROCESS

Some products sold on the Websites and e-mail are

internet can be customised
so that they are constructed
to the customer's
specification. Additionally,
products can be bundled, so
that related products can be
bought at the same time,
perhaps at reduced prices.
This is more transparent on
the internet and users can
often compare prices easily.
Some websites are
specifically designed to
compare prices
goods and services. Buying
Some goods, such as music,
video and software can be
delivered over the internet.
In terms of e-marketing, the
new ways of advertising
design of a website is
important, because visitors
space on the websites of
will not stay on a website if
other companies or on
it is not attractive, difficult
search engines such as
to navigate or fails to
Google can provide an
provide the information that
opportunity for targeted
visitors are looking for.
promotion.
Buying goods or services by
internet is a process, and
The internet does not
the quality of this process is
involve people in marketing
another element in the
in the sense that customers
marketing mix for e-
are communicating by
business. A sale must be
computer with a website.
followed up by an efficient
delivery service.

6 I's OF E-MARKETING

INTERACTIVITY INTELLIGENCE INDIVIDUALISATION INTEGRATION INDUSTRY STRUCTURE INDEPENDENCE OF LOCATION

To interact with the customer

through website.
Getting visitors to the site to provide
details about themselves (and agree
to receive e-mails from the website
owner in the future), perhaps in
exchange for additional information
or a free service.
Getting visitors to buy a product or
service and pay for it using the
internet.
The internet can be used as a
relatively low-cost method of
collecting market research data and
data about customers and other
visitors to a website. This data can be
analysed to produce marketing
information about what customers
buy, and what information on a
website interests them most.
In traditional media the same
message tends to be broadcast to
everyone. Communication via the
internet can be tailored or
'personalised' to the individual.
The internet introduces the possibility
The internet can lead to a re-
The internet provides scope for of increasing the impact of an entity
structuring of the industry supply
integrated marketing on a global market. Users of a website
chain. Disintermediation is the
communications. Many companies cannot easily tell from the website
removal of intermediaries such as
are now considering how they whether it is owned by a small local
distributors or agents: this occurs for
integrate email response and website company or a large multinational or
example when a company starts
call-back into their existing call-centre global company. This gives small
selling directly to end-consumers
or customer service operation. companies opportunities to sell into
through its website.
global markets.

Always a mentor | Muzzammil Munaf

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IQ SCHOOL OF FINANCE
CFAP 03 – STRATEGY AND PERFORMANCE MEASUREMENT
BY MUZZAMMIL MUNAF | ACA | ADVISOR | TRAINER |
SUMMARIES AND MIND MAPS
EFFECTIVENESS OF ICT

Duplicate its existing brand identity online. However, if the quality of the internet site is poor, the brand could be damaged.

E-Branding
Extend the traditional brand by creating a slightly different version of the brand. For example, in the UK the BBC extended its name
image to its online services, giving the new services the slightly different name of BBC Online. This allowed the useful associations of the
BBC brand name to be retained, but also suggested to the customer that the services offered by BBC Online might be different

When an established company is planning to market

its products by internet for the first time, it has to
consider what to do about its brand identity. There Partner with an existing e-brand. For example, a chain of hotels could market itself online through an airline website and so associate
the hotels with the airline brand name.
are four choices.

Create a new brand for the web. The new brand name allows an entity to break free from the perceptions associated with the old brand
name. The old brand might be perceived by customers as too traditional and if there is going to be a successful, dynamic presence on the
web, a new brand is needed without associations of tradition and conservatism.

CUSTOMER RELATIONSHIP MANAGEMENT

The purpose of customer relationship management (CRM) is to help companies to understand better the behaviour of their customers, and modify their marketing operations to service customers in the best way possible.

Provide customers with a

better experience when they
contact the company.
Collect information for Monitor key customer
Store the customer Access the information, often Use the analysis of customer Customer service staff are able
identifying individual management performance
information and keep it up-to- instantly, whenever it is Analyse customer behaviour behaviour to develop a more to provide this type of
customers and categorising indicators, such as the number
date. needed. effective marketing strategy. experience because they have
their behaviour. of customer complaints.
access to customer's record
and know their previous
requirements.

Always a mentor | Muzzammil Munaf

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IQ SCHOOL OF FINANCE
CFAP 03 – STRATEGY AND PERFORMANCE MEASUREMENT
BY MUZZAMMIL MUNAF | ACA | ADVISOR | TRAINER |
SUMMARIES AND MIND MAPS
EFFECTIVENESS OF ICT

BIG DATA

Big Data is the term used to describe huge volume of both structured and unstructured data that is so large it is difficult to process using traditional database and software techniques.

Three V's of Big Data Additional four V's of Big Data

Velocity refers to the incredibly

high speed that data is created,
stored, analysed and visualised.
- for example when you post a
photo or comment on social
media. The post becomes
immediately available around
the world to users using the
same social media platform.
The speed at which new data is
generated across the globe is
incredible.
Variety refers to the wide range
of data types and sources
reflected within big data. Big
data comprises largely
unstructured data which
requires a different approach
and technique to store raw
data. Furthermore, the wide
variety of data facilitates new
ways of thinking and analysing.
Volume refers to the huge Visualisation is particularly
Variability - whilst big data Value - the huge volume of
volumes of new data generated challenging as it refers to
Veracity - data needs to be reflects a wide range (variety) data that big data reflects is
every second. All this new data making the vast amount of
correct and error-free in order of sources its meaning can also capable of creating huge value
needs processing, storing and data comprehensible in a
to be reliable and relevant. vary widely depending on the for organisations, societies and
to be made readily accessible manner that is easy to read and
context. consumers.
for searching and analysing. understand.

How Big Data can create value for organisations? Use cases of Big Data

- Finance (bringing value to the

Enabling experimentation to
discover needs, expose
variability and improve
Creating transparency
performance
Improved accessibility for relevant
Organisations are able to collect
stakeholders in a timely manner
and analyse ever more accurate
can create value.
and detailed performance data on
everything from personal sick days
to product inventories.
Replacing/supporting human
Segmenting populations to
decision making with automated
customise actions
algorithms
Big data enables highly specific
Sophisticated analytics can
segmentation to be developed to
substantially improve decision
support tailored products and
making, minimise risks and unearth
services that precisely meet those
valuable insights that would
needs.
otherwise remain hidden.
organisation)
- Real-time stock market insights
Innovating new business models, (algorithm trading)
products and services.
- Financial modeling (predictive)
Big data enables companies to
- Customer analytics
enhance existing products, create
(understanding customer needs &
new products and services and
preferences)
invent entirely new business
- Risk Management and Fraud
models.
Detection
- Analysing financial performance
& growth

Always a mentor | Muzzammil Munaf

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