Professional Documents
Culture Documents
Learning Objectives
1. Describe the major components of EC.
2. Describe the need for justifying EC investments.
3. Understand the difficulties in measuring and
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5.
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7.
justifying EC investments.
Recognize the difficulties in establishing
intangible metrics.
List and describe traditional and advanced
methods of justifying EC investments.
Describe some examples of EC justification.
Describe the role of economics in EC evaluation.
Copyright 2012 Pearson Education, Inc.
Publishing as Prentice Hall
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Learning Objectives
8. Discuss the steps in developing an EC system.
9. Describe the major EC development strategies.
10.List the various EC development methods along
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The Implementation
Landscape
System
Organizational Readiness and Impacts of
E-Commerce
How to Succeed?
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IS NEEDED
EC INVESTMENT CATEGORIES AND
BENEFITS
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Technology trigger
Peak of inflated expectations
Trough of disillusionment
Slope of enlightenment
Plateau of productivity
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JUSTIFYING EC INVESTMENTS
Types of Costs
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Examples of E-Commerce
Metrics
JUSTIFYING E-PROCUREMENT
and Project Justification
JUSTIFYING A PORTAL
JUSTIFYING SOCIAL NETWORKING AND
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transaction costs
Costs that are associated with the distribution
(sale) or exchange of products and services
including the cost of searching for buyers and
sellers, gathering information, negotiating,
decision making, monitoring the exchange of
goods, and legal fees
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INCREASED REVENUES
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VALUATION OF EC COMPANIES
valuation
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A Five-Step Approach to
Developing an E-Commerce
Once it has been determined that a business
System
can benefit from an online presence, the
business type, the product line, the businesss
organization, and the budget dictate what
functionality the EC system should have and
how the website should be developed.
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A Five-Step Approach to
Developing an E-Commerce
1. Identifying, justifying, and planning ec
System
systems
2. Creating an EC architecture
3. Selecting a development option
4. Installing, testing, integrating, and deploying
ec applications
5. Operations, maintenance, and updates
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A Five-Step Approach to
Developing
an E-Commerce
STEP 2: CREATING AN EC ARCHITECTURE
EC architecture
System
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A Five-Step Approach to
Developing
an
E-Commerce
usability testing
Testing the quality of the users experience
System
when interacting with a website
acceptance testing
Determining whether a website meets the
original business objectives and vision
AND UPDATES
MANAGING THE DEVELOPMENT PROCESS
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Development Strategies
for
E-Commerce
Projects
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Development Strategies
for
E-Commerce
Projects
IN-HOUSE DEVELOPMENT: INSOURCING
insourcing
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Development Strategies
for
E-Commerce
Projects
BUY THE APPLICATIONS (OFF-THE-SHELF
APPROACH)
turnkey approach
outsourcing
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Development Strategies
for
E-Commerce
Projects
Software-as-a-Service (SaaS)
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Development Strategies
for
E-Commerce
Projects
site
Form joint ventures
Use a hybrid approach
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WORK
Technology and Organizational Learning
The Changing Nature of Work
Disintermediation and Reintermediation
disintermediation
Elimination of intermediaries between sellers and
buyers
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REDEFINING ORGANIZATIONS
New and Improved Product Capabilities
Personalization and Mass Customization
mass customization
A method that enables manufacturers to create
specific products for each customer based on the
customers exact needs
Impacts on Manufacturing
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COMPANY
Options for Organizing the EC Workforce
Online Company
Copyright 2012 Pearson Education, Inc.
Publishing as Prentice Hall
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E-COMMERCE SUCCESSES
Strategies for EC Success
CULTURAL DIFFERENCES IN EC
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Managerial Issues
1. How should the value of EC investment be justified?
2. Which investment analysis method should we adopt for
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EC justification?
Who should conduct the justification?
Should we use the hype cycle?
What is the outsourcing strategy?
Should we embark on cloud computing products for our
EC initiatives?
Which strategy should we choose for vendor selection:
the inside-out or outside-in approach?
What kinds of organizational changes may be needed?
Is it possible to predict EC success?
Copyright 2012 Pearson Education, Inc.
Publishing as Prentice Hall
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Summary
1. The major components of EC implementation
2. The need for EC justification
3. The difficulties in justifying EC investment
4. Difficulties in established intangible metrics
5. Traditional methods for evaluating EC
investments
6. Describe the justification of representative
EC projects
7. EC economic evaluation
Copyright 2012 Pearson Education, Inc.
Publishing as Prentice Hall
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Summary
8. The major steps in developing an EC system.
9. The major EC development strategies, along with
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