April 6, 2020
BCIS 5379: Chapter 12: E-Commerce Strategy, Globalization, and SMEs

BCIS 5379: Chapter 12: E-Commerce Strategy, Globalization, and SMEs


Welcome the BCIS 5379: Technology of E-Business.
This is Chapter 12: E-Commerce Strategy, Globalization and SMEs. After reading this chapter, you
should be able to describe the strategic planning process. You should be able to describe the
purpose and content of the business plan and the business case should be able understand
how e-commerce impacts the strategic planning process to understand how to formulate, justify
and prioritize e-commerce applications you will be able to describe strategy implementation
and assessment, including the use of metrics to be a little evaluate the issues involved
in global e-commerce and lastly you will be able to analyze the impact of e-commerce on
small and medium-size businesses. This chapter focuses largely on strategy specifically as
it relates to e-commerce and how we use e-commerce to create competitive advantage for organization
before you jump and all I will need to define what we mean when we say strategy most people
cannot have a general idea of what they think it means, but we really need to have a more
formal definition. So one of the book provides is a broad-based formula for how e-business
is going to accomplish its mission what its goal should be and what plans and policies
will be needed to carry out those goals starts at the top start that mission statement. What
is it were going to do what is the direction that we wont take our organization from that
we can then develop various goals that we need and we can hope for is plans and policies
to try to achieve those goals which will then fulfill that mission. The keywords are key
terms. It should have heard in the last slide was competitive advantage. That is really
what doing business is all about is trying to position organization in the best position
that we can relative to our peers. One gurus in this area is a personal the name of Michael
Porter back in 1980 developed a model if you will that describes competitive advantage.
This is referred to as porters competitive forces model five forces model and he basically
looks at several different dimensions. If you will regarding competition. For example,
the threat of new entrants or other organizations that might join the industry that we might
have to compete against a supplier power, consumer power is ready different potential
competitive forces that that could impact us. I will get a threat of substitute products.
In other words, if we so if we sell cars a potential threat might be motorcycles. The
buses bicycles. Those are potential threats to to the transportation industry and obviously
there are niches so may not be the best example, but they could be of an example for some customers
in on this rivalry among existing firms as well so those are Porter’s five forces as
far as the impact of the Internet how the 1980 most people were thinking about the Internet
and e-commerce, and he strategy things like that but Porter’s five forces model still
relevant we start to think about the the threat of of of new entrants, the Internet’s ideal
for something like that because Nelson instead of computer your mom-and-pop store set of
competing against the person across the street you are potentially competing against everyone
on the planet. Anybody can throw website also certainly impacts our competitive advantage
the bargaining power of customers. Certainly customers have a lot more information today
because of the Internet so Michael Porter’s five forces model is just as relevant today
if not more so than it was was originally developed Exhibit 12.10 Strickler Porter’s
five forces model might look at going to conceptualize it cc us located there in the middle within
an industry there is our company and within our industry. Certainly we were to have competing
companies a week we share that space with with competing firms outside or external to
our organization and extra for industry where the threat of new entrants. Some other company
may consider entering into our particular industry. We got supplier power bargaining
power of suppliers if there are a lot of suppliers suppliers to do not have a lot of a lot of
power but there is if there is only a few on times they control the goods in the goods
and if they do not sell it makes it hard for you to buy so they have a lot of power over
you. There is the buying power bargaining power of buyers. The distribution channels
on your customers that if there is a lot of customers know the that customer still have
a lot of power if customers have lots of information that customers have more power. It is just
that it is a relationship that we we have with that particular group and then there
is the threat of substitute products and services how closely are what we are offering how closely
is that related to other other potential products. The example gave on the last slide was in
the transportation transportation industry. Certainly there is other examples as well.
Boy D Eisenhower the 34th president of the United States once said the plan is nothing
planning is everything, impetus behind the slide talk about strategic planning for IT
and e-commerce. We will talk about that talk about the strategic information systems planning
process for developing a strategy and plans for aligning information systems including
e-commerce applications with the organization’s business strategy planning is what is really
important when it comes to this because the planning forces an organization to step back
and assess itself assess what strengths are assess what its weaknesses are its threats,
its opportunities to take a look at its competitive environment using tools such as Porter’s five
forces a week we just got to talking about the planning process. It is extremely important
and some people refer to this as a strategic information system planning process not process
consists basically of four steps or can be broken down in four steps. First, a strategy
initiation. The initial phase of strategic planning, in which the organization examines
itself and its environment so organizations looking internally and externally is looking
at itself internally identify what it is doing well and where it can improve its looking
at its environment to see where the threats are potentially coming from and what some
opportunities might be smart market opportunities at the time, you will capitalize on the need
for strategy formulation. The development of strategies to exploit opportunities and
manage threats in the business environment. In light of corporate strengths and weaknesses,
so we take that information that we learned and in strategy initiation and will start
to think about how can we exploit our opportunities. How can we take advantage of this. How can
we shore up some of our weaknesses is the point behind stress strategy formulation.
Once we formulated a plan we need to go and implement strategy implementation is the development
of detailed short-term plans for carrying out the projects agreed on in strategy formulation.
So were actually apply what we what we came up with in the formulation stage. Lastly,
we need to close the loop. That is what is behind stress strategy assessment the continuous
evaluation of progress toward the organization’s strategic goals, resulting in corrective action
and if necessary strategy reformulation. In other words, we need to assess how effective
we were being with her goal or with our our strategy is a working or is it not working.
Do we need to make modifications do we need to scrap and start over again reformulate
another plan and that is that is what strategy assessments all about closing that loop Exhibit
12.5 illustrates the the strategic planning process graphically can assure you that circular
relationship between the various steps. The idea being that you close the loop that that
when you close the loop that it is a never-ending process that you are now back to the a a new
point in time, a point in the future where you need to reformulate reassess and identify
again what your strengths and weaknesses are because we operate in a dynamic environment
were never really done with with with planning and am omitting our strategies and and making
adjustments. It is a continuous process so what that swosu the circular relationship
between the various steps are variety of tools that are used to work on fellow our strategic
planning process and what was going to the the idea the concept of a strategy map which
is a graphical orientation of the strategy of normalization helps illustrate how organization
plans to achieve its mission and vision by means of link change chain of continuous improvements.
Basically what is going to tie together for basic organizational objectives looking at
our financial objectives are internal objectives external objectives and are learning and growth
of the company doctors on helps to display the cause-and-effect relationships among these
objectives strategy map begins the top with the statement of the mission and vision of
the company or focus area within the company. This is followed by the company’s financial
objectives continues down the bottom of the hierarchy. Each objective that appears in
a strategy map has an associated measure target and initiative. Overall strategy maps represent
a hypothetical model of the business. One of the the focus areas of the business and
other tools. A swot analysis swot analysis is a methodology that surveys the opportunities
and threats in the in and in the external environment and relates them to the organization’s
internal strengths and weaknesses tools competitor analysis grid should basically just a table
of the company’s most significant competitors intervene in columns cross the top key factors
for comparison entered in the various rows some of factors might include things like
mission statements strategic partners sources of competitive advantage like cost leadership
global reach as well as customer relationship strategies and financial resources. Another
tool scenario planning, which offers an alternative to traditional planning approaches that reliance
straight-line part production of current methods. Basically, the idea behind this is that low
probability events occur there for obviously very hard to anticipate the results of those
events. It is hard to anticipate in this approach basically allows you to simply take on role-playing
game planning to try to determine what the likely events are to to be when such events
do happen to occur. Another approach to to use when it comes to strategic planning is
the balanced scorecard approach which is a tool that assesses organizational progress
forced to towards strategic goals by measuring performance in a number of different areas.
This is an alternative to traditionally very financially focused assessments. This six
more balanced by a balanced approach by measuring organizational performance in the in several
key areas including finance, customer assessments, internal business processes and learning learning
and growth may recognize these from from our discussion earlier the results of all the
strategic planning inevitably end up with a business case or business plan, resulting
out of all that business plan is a written document that identifies a company’s goals
outlines how the company intends to achieve the goals that will cost business cases a
little bit more focused. He really refers to a business plan for a new initiative or
large new project inside an existing organization test via smaller scope of very similar in
terms of the way it looks in the way it reads Exhibit 12.6 tries to illustrate or or show
you the role of the Internet in terms of strategy strategies strategy setting begins with business
strategy, determining an organization’s vision, mission statement, the overall goals in the
information system strategy is set primarily by determining what information associated
information systems to be required to carry out that business strategy was they operate
together. They support each other information communication technology strategy is decided
based on how best how to deliver the information and information systems via technology and
e-commerce strategy is a derivative of both guys strategy M ICT strip strategy of the
Internet impacts all levels organizational strategy seven. As you can see from environment
it impacts all four of these business strategist need to consider the’s role in creating or
innovating products and product and service delivery and supplier and customer relationships
and’s impact on competition in the marketplace. Internet needs to be viewed as a complement
to traditional ways of competing not as a source of competitive advantage and self-important
reporter. I asked strategist need to consider the Internet as a tool for collecting information
and distributing it to where the word is required ICT planners need to to plan the integration
of the Internet-based technologies into existing ICT infrastructure. One of the interesting
things in my mind about e-commerce is that despite the complexities and in many ways
e-commerce is no different than conditional business yet at the same time trials e-commerce
spaces are almost prescriptive. We can identify the way we can see the same types of problems
over and over again. Representative issues and e-commerce strategy and initiation include
things like first mover advantage of the events being first include an opportunity to make
make a first lasting impression on customers to establish a long-term or or strong brand
recognition to lock-in strategic partners and to create switching costs customers example
this is then some.com very recognizable name in be to see market. In some cases, though,
being first mover can have some disadvantages, such as the risk of being first mover include
the high cost of pioneering e-commerce initiatives making mistakes the chance the second wave
of competitors will limit burglars lead to lower costs and innovation in the risk that
the move will be will be too early constantly customers want to adopt is also the issue
of managing channel conflict. Some conflict may arise when an existing company as a online
distribution channel. We Levi jeans ran into this issue when they initially moved to the
online environment that they were basically stealing sales from a traditional sales channel
which upset them greatly. Obviously other various retailers and so they had to retreat
from selling jeans online to a different strategy where they were simply providing information
about where to buy the genes and product offerings and things like that online but not actually
provide any sales, this leads to the issue of disintermediation talk about this before
going to detail him at this point is also separating online and off-line operations
supporting a company’s online operations into a new company makes sense when the volume
of anticipated e-business is large, a new business model needs to be developed apart
from the constraints of current operations, the subsidiary can be created without dependence
on the current operations in Boise systems and the outlines of the online companies given
the freedom to form new alliances attract new talent and set its own prices and raise
additional funding for those always makes sense to separate your online and off-line
businesses. Some cases you want to some cases you do not want to. This ties in tightly the
very next point brand independence. The company faces a similar decision when deciding whether
to create a separate Branford’s online offerings. Generally, companies with strong, mature international
brands want to retain and promote those brands online. The book gives example of a tie Lehman
to a variety of product offerings because Google has a strong brand recognition of positive
recognition existing firms with a weak brand or brand does not reflect the intent of the
online effort may decide may decide to create a new brand so suddenly developed a strong
organizational strategy company strategy and that part of that include some sort of e-commerce
component, an online component which presumably in today’s age certainly would. There are
certain things that we we certainly have to focus on and make sure that were aware of
of some very specific important issues, planning successful e-commerce strategy that includes
social media. This includes developing an overall e-commerce strategy that with clearly
defined business goals those we we have to have a target if we do not have a target will
really do not know that anything that were developing is moving in the right direction
need to be able to effectively market to existing customers. Meadville was so globally as well
as locally need to be developed a consistent online and off-line brand strategy need to
be able create business profiles allow customers to post reviews by leveraging free resources
available to merchants on sites such as Yahoo being places Facebook, twitter Yellow Pages.com
etc. Wesley build free service two-week vacation mechanisms to solicit feedback from customers.
The idea is that web 2.0 is is a very dynamic environment and allows two-way communication
in allows us to leverage our customer experiences for the for potential future sales of those
customers as well as other customers and so it is a very powerful area of e-commerce switch
e-commerce investment should we may another word says is an organization we have a lot
of opportunities e-commerce initiatives that we can conventionally undertake, but not all
of them are to see the same payback for the level of degree payback interested in switch
of some sort of way to evaluate those various opportunities for various projects on time.
We can use cost-benefit risk analysis to identify which projects are to give us the most bang
for our buck. If you will more productive strategy selection process when compelling
internal or external forces drive strategies for this strategy selection process, a problem
driven strategies best when the organization has a specific problem and e-commerce applications
all a technology driven strategy occurs owns a technology that needs to be used, market
driven strategy can occur when a company waits to see what competitors and industry do lately
were strategy can be used can be effective when the company uses brand technology superior
customer service were innovative products and strategy strategies to overcome in the
loss mover, any lost first mover advantage for most part of it. It is best to use a systematic
methodology that determines which initiatives to pursue when and this is oftentimes referred
to as the portfolio mix for your companies are try to figure what is most appropriate
mix was what are the types of projects that they need to include in their in their their
application portfolio if you will a lot of times you trying to balance the number of
long-term high risk projects that you want take on against the shorter-term property
existing profit-making opportunities that you you have the Internet with the balance
is is is the difficulty that that your task with as far as a couple different models for
this was once referred to as the BCG model. The Boston consulting group model it is a
grocery matrix with its star cash cow wall card and dog opportunities to go back in the
70s has a matrix that has two dimensions, market growth rate which can be either low
or high relative market share was also can be either low or high so the 2 x 2 matrix
is a unit for cells*represents high growth and high’s high share market share, cash cows
high sugar, high market share low growth? Which have high growth, low market share and
dogs which are low growth and low sugar Corp. within categorize its business units are products
as stars, cash cows? Your dogs and allocate budgets accordingly moving money from cash
cows to stars and question marks that had higher market growth rates in his higher upside
potential and adaptive approach to that is the in the portfolio map is evaluating market
potential market share. The Internet portfolio map is based on company fit in project viability,
both of which could be either low or high various criteria including market value potential
time deposit cash flow timed implementation funding requirements can be used to assess
viability graphically, the Internet portfolio map look something like this is an easy way
for upper management management people interpret and identify projects that are going to provide
the most bang for the buck and as a result they can start to determine which projects
they want fun and which ones I want on the back burner which ones they want to eliminate
altogether. There is risk in virtually every business venture. I must say virtually you
can scrap the work virtually the same every business venture risk exists a certain for
those that are are around long enough and are familiar with e-commerce and remember
the early 2000’s late 1990s e-commerce obviously has a significant amount of risk. So in essence
it is no different than traditional business as far as the a definition of e-commerce risk
the likelihood that a negative outcome will occur in the course of developing operating
electronic commerce strategy. Also this could stem from the business side of things that
we simply did not think your our business plan enough to the operational side of were
running a risk by simply putting credit card numbers, online selling products in our day-to-day
business may be natural disasters. We have a data center that is located in. The has
hurricanes or tornadoes that fit frequent. So risk really comfortable place business
risk natural disaster risk, etc. security issues to consider during strategy formulation
include things like fraudulent and malicious acts committed by either employees or third
parties against the company’s computer systems, computer virus attacks or hinder or even close
down the company’s operations accidental alterations to or destruction of electronic information
records as well as writing letters that are discussed in the book on page 602 pricing
strategies and mincing conflict between off-line and online businesses are typical issues that
you see when you try to formulate e-commerce strategies as far as managing conflict between
off-line and online businesses that about organization cells or multiple channels and
perhaps has a sales force that operates on commission. He obviously you are going to
have issues when a customer goes and make a purchase face-to-face and rather than actually
making a purchase. They simply are obtaining or retrieving information to take that information
back to actually make the purchase online source lead to problems with your sales force
disgruntlement. If you so that is an issue that that was the last of a good handle on
before they fade, they decide to take this approach as the example Sears may want to
read through sparse pricing strategy. There is a couple of traditional approaches for
determining price of a good or service. Those two are cost-plus as well as competitor models
cost-plus business management at all costs involved such as material, labor ran over
it. All that together in the net some sort of a percentage is your market. The competitor
model is the lazy man’s model. If you set the terms price based on what you competitors
are charging for similar products in the marketplace pricing products and services from one sales
changes this pricing strategy so million in some pretty subtle ways. Yet there are important
ways of resemble price comparisons become easier was an important will give longer power
to the buyer in a traditional sales environment. The buyer and seller tends to have more information
on the Internet more power possibly command a higher price when the buyer Olson has more
information now were able to make comparisons more easily able to identify other retailers
that are charging a lower price perhaps offer better service things that interest as a result
they end up with more power misplaces downward pressure on prices as part buyer, sometimes
at the price of different models out there Priceline.com reverse auctions where instead
of the sourcing price buyers at that obviously that is a licensure strategy as well. There
is online and off-line goods are priced differently so think about the retailers that operate
both in the the virtual world or e-commerce world and those that operate in a safe and
also operate in the physical world that these companies have a conflict if you will are
the church same price for the same good or service in both environments or not. Obviously
the the cost structures are different in each of these environments is not to say that e-commerce
area. The for the cost structures are cheaper for our last because they may not be the the
investment in the e-commerce I things is very expensive, but the cost structures are definitely
different, so this creates a pay depending on our pricing strategy a this and assess
the necessary examination of the sponsorship and habits and affect our prices and we have
a little relate that to whether or not our habits can affect our competitive advantage
when selling something to customers and at the same price for different price difference.
A depression can be used as a pricing strategy, though in other words, some goods we were
able sell the same good to different customers of different price depending on the characteristics
of of our “were selling and of potential buyers present to the airline industry that selling
sponsor seats on the plane if you are make it. If you purchase a seat far advanced country
look at that price down as the plane starts to fill up the price goes up and up and up
for that. See ultimately till it gets the point close to the Peacock plan to make the
purchase which point the price estimate drops if the plane is not full because the airline
wants to make sure that that plane is full. They do not make any money one seat and related
to this is a concept of versioning selling the same good but with different selection
and delivery characteristics of the book is example of for example market prices, stock
prices, this some people are willing to pay more for real time prices instead of at some
sort of a delayed pricing as OF four forms of different pricing versioning information
is based on the fact some buyers are willing to pay more to retrieve or receive some additional
advantage focus. We developed our strategy. We have identified the appropriate portfolio
that the that we want is an organization and determine which e-commerce strategies or e-commerce
projects that we want to focus on to the current cycle. How do we execute the process of dictation
for softening to start off with some sort of a champion to identify project champion
champions person who ensures that the e-commerce project gets the time, attention resources
required and defends the project from the tractors at all times were some of those resources
will include personnel that understand technology that understand the business side of things
and can marry those two together includes money for that programs that we need to pay
better funding for funding projects that nuts. That is the role of the champion must be a
look to identify what resources are needed and make sure that that that project gets
those those resources like cases one start some sort of pilot project smaller scale down
project, allows to number one develop group concept and prove that it works also work
out some of the bugs and hopefully to start to gain attention from the rest the organization
and support from the rest organization as a CPAP project implemented in working effectively
to allocate resources required for the e-commerce project is for information capabilities of
each project present some resources include software, computers, warehouse capacity, staff,
etc. lastly, we need to manage that project. This is really a key area get a champion is
really just arguing on behalf of of the project itself to the organizational track to keep
your focus on to keep the support there. The project managers the one that actually will
be handling the day-to-day operations of making sure that all pieces are coming together and
down the proper order completed on time and completed on budget project managers job may
be easier or more difficult depending on some of the decisions that are made in terms of
quantitation as a relate to build buying or renting e-commerce elements. If your organization
is large enough and and has the skill set and the need for very customized application,
you may decide to build it yourself and as a result, the the present message. I have
a pretty big task on their hands they may choose to purchase something off the shelf
on existing application that that serves most if not all her needs serves all their needs.
There their task is can be greatly simplified if you require some customization it perhaps
will require little bit more work, but not not to the extent of building an application
entirely then you have the opportunity the option to releasably purchase the software
as a service of it if you will, and rent rent e-commerce elements from from somebody that
that is what they specialize in us of the idea of of outsourcing. If you are small organization
you may not have the choice of building your own application. You may have yet he still
may require some sort of a specialized products customization or to build a product a good
software package from the ground up. If you have an expertise you gotta get it from somewhere
so you may end up outsourcing your your your project outsourcing is the use of an external
vendor to provide all or part of the products and services that could be provided internally.
We talked about outsourcing vs. off shoring in a previous chapter, some ago over there
at this point to realize that it is an options always an option that you really have to consider
consider as an organization. Having said that tediously as an organization you keep your
mind whether or not the a particular project is of a core competency or not. If it is a
core competency, then it is not something that you should be looking to outsource us
of the row should consider keeping in house is much as possible. If, however, some it
is not something as part of your core business. It is not something that your particular good
at is a prime target or prime project for outsourcing when we consider implementing
a new e-commerce system with start to think about how that is going to affect her existing
processes within our organization Scoble terms that the get kicked around a lot, especially
in the management field of business process we business process reengineering and business
process management, business process reengineering is methodology for conducting a comprehensive
redesign of the Enterprises processes. In other words, is looking at a at the existing
processes in identifying or realizing that these processes have been used for some amount
of time, perhaps for several years, perhaps decades and in recognizing that technology
has changed over time and as a result, some of those processes may no longer be necessary.
They may no longer be be being done as efficiently as they otherwise could be and so by reevaluating
those processes. We have the opportunity to become more efficient and less idea behind
business process reengineering, business process management is a method for business restructuring
that combines workflow systems and redesign methods. It covers three process categories
people the people systems a systems systems to people interactions. So, since it is related
to business process reengineering forced were starting to think about how people and how
technology integrate with each other and the processes that that that facilitate that interaction.
Once we formulated our e-commerce plan and implement it, and identified how it is going
to impact our various business processes and done all that we need to closely to determine
whether or not we been successful were successful great work successful what we need to change
in order to be successful in the future we will make that determination. We need to have
some way of objectively measuring whether or not the we have indeed met are our objectives
on so the objective of assessment measures the extent to which e-commerce strategy and
ensuing products are delivered what you are supposed to deliver, if not Lorraine our corrective
actions to ensure that projects major objectives also need be to determine if e-commerce strategy
and projects are still viable. The current environment other words, if where it if they
are continuing the head in the wrong direction. We do not need to continue to pork good money
after bad cancels projects I would need be will reassess the initial strategy in order
to learn from mistakes improve future planning and we need to be will identify failed projects
as possible and determine why they fail to avoid same problems so projects at it part
of this process for determining how are how effective are e-commerce projects are is the
establishment of what is performance indicators to measure that were were met. The idea is
that these are the proper performance indicators need to be measured. The KPIs a quantifiable
measurement agreed to beforehand, and that is a key no revisionist history here identify
these metrics before him, and the reflected critics critical success factors. The company
department for project system example KPIs might be attracting new customers or clients
to to your website may be improving online marketing effect retaining existing customers
and clients. Once you establish are our key performance indicators we need to identify
the specific metrics, measurable standard against which actual performance as compared
assess an example of this might be the time to actually execute transaction so this is
something we can actually execute when a a customer visits website and how long from
that initial visit to their ultimate purchase. All that can be documented and so it is measurable
the profit per customer. We have we had to fire varies customers goods that their buying
and in the cost of those goods and roles of markets we can determine through measurable
the profit per customer things like that some examples of some metrics that we use way of
assessing project performance is through the use of corporate performance management or
business management investment performance measuring and analysis approaches embraces
planning and strategies in a uses of her as approaches uses the balance for scorecards
various metrics, aligning strategies and actions wealth of of literature academic literature
that that looks at the importance of aligning strategy strategies to actual implementations
vs. actions that an organization goes through yet another approaches is what validates the
analysis of clickstream data understand visitor behavior on website that is one of where visitors
are coming from, what pages they look at and how long on various pages and how they interact
with some of the sites information. One of the benefits of e-commerce is that it really
opens up the entire global environment to become our market, but this additional market
space you will creates a lot of additional challenges that we do not really have if we
narrow our focus down to our our domestic market or even smaller solicit these represent
a variety of different barriers to global e-commerce first. The people discusses the
idea cultural differences that cultural attributes determine how people interact with companies,
agencies, and with each other based on social morals, local standards legislation language
about things like spelling information formatting, graphics and icons measurement standards,
use of color, protection of intellectual property time standards styles of navigation and information
density on homepages. These are all different depending on where where we might be located.
For example of Asian countries have very dense homepages that a lot of information on the
homepage and make some all that information vs. Western homepages. Specifically, the United
States, we tend to have less dense homepages less information on homepage more of be a
value of white space if you will measurement standards different places measure used measurement
colors impact are seen differently from one culture to another, etc. etc. is also the
issue of language translation. Keep in mind the Internet. At one point was very much so
dominated by the English-speaking world that is no longer the case. And there is a very
large Chinese market that obviously their first language is not is not English and so
show that the people are more likely to purchase from websites that are tailored to their particular
language source the legal issues. Keep in mind when you are operating on global and
in a global environment. Nelson you have to deal with different legal systems where something
may be legal in one environment, but not in another. For example, the sale of World War
II memorabilia. It is highly regulated. In some countries and not all of the country
as far as geographic issues and localization the rest of the goods and services across
international borders. This is kind of related to the the the legal issue, but a little bit
of different nuance here the transportation infrastructure just going from here to say
Mexico the highway system is is significantly different Mexico is here. The telecommunications
infrastructure is significantly different here in the United States and is Mexico so
the their license geographic and localization support referring to the the idea that a lot
of companies use different colors and names different sizes of packaging for products
that are in different markets. Reason being that the look and feel and and words used
to market product have different meanings in different cultures and sometimes that they
they transition into a different culture quite easily and quite well in of the cases they
do not as far as economic issues. This is again similar to an it is always related to
the concept of due geographic issues and legal issues, but again, with a little bit of a
different standard nuance idea that the government Terrace’s customs and taxation schemes that
are in place that the we have to consider when operating a global environment that are
less likely to be an issue or something operating domestically. How do we overcome some of those
barriers will lose a variety of of different things that can be strategic for example,
knowers can identify starting point lay out a globalization strategy the web globalization
is it is a business building process is not happen overnight so need to be split by the
approach that we take consider what languages and countries and make sense for the company
to target and how the company will support the site for each target audience. Speaking
of audiences. Know your audience carefully consider the target audience fully informed
of the cultural preferences and legal issues that matter to customers in a particular part
of the world localized as much is practical necessary offer websites and national languages
other and offer different sites in different countries present for Yahoo Japan is it the
Yahoo.CO.jp price products in local currencies and base terms, conditions and business practices
on local walls and cultural practices make sure that is familiar to the people in that
part of the target group think globally act an international company with country websites
managed by local offices must make sure that areas such as brand management, brand management,
pricing, corporate information and content management are consistent with company strategy
value. The human touch trust the translation of the website content only to human translators
not machine translation programs involve language and technical editor’s quality assurance process.
One slight mistranslation or one outplace graphic internal customers for clarified document
and explain private pricing privacy policies, shipping restrictions, contact information
and business practices should be well documented and located on website invisible to the customer
to help protect against foreign litigation identify the company’s location, location,
and the jurisdiction for all contract for sales dispute finally offer services that
reduce barriers is not feasible offer prices and payments and all currencies solely to
a currency exchange service for the customers convenience and B2B e-commerce. Be prepared
integrated e-commerce transaction. The the transaction with the accounting and finance
internal information systems of the buyer SMEs are small and medium-sized enterprises
are interesting when it comes to e-commerce. Reason being that it e-commerce provides an
opportunity for SMEs to be competitive with their larger counterparts. Nevertheless SMEs
are still finding it difficult to formulate or implement an e-commerce strategy mainly
because of the inability to have a large volume of of my business limited use of e-commerce
by suppliers. Maybe they lack the knowledge of of IT experience may have limited awareness
associated with opportunities and risks as a result, many SMEs create static websites
that are not used market or expand their business and did not use e-commerce to interactively
sell their products or services again. The frustrating thing about that is that the nature
of e-commerce helps to lower the barriers to entry is relatively inexpensive way of
reaching a large number of buyers and sellers can more easily search for her prices negotiate
negotiate a purchase as a result a small percentage of them conduct a significant amount of their
their business globally. What that really means, though, is that a lot of potential
there for SMEs to to really develop their businesses online resources to support SMEs
lifetime Sesame owners like strategic management skills and consequently monotonous always
aware of some of changes is with respect to emerging technologies solution readies or
options that are potentially out there a number of agencies devoted to helping SMEs become
more aware of and able to participate in e-commerce varieties and realize that there are opportunities
presented by thousands of businesses trying to go online. All of them set up a variety
of servicers that typically offer a combination free information and fee-based support. One
particularly powerful tool that SMEs have at their disposal is the use of social media
social networks to build to promote their businesses approach promote their opportunities
that they have Exhibit 12.3 outlines 10 steps to successful social strategy includes understanding
what social media is in the benefits of using it. Identifying the audience want to reach
identifying resources you currently have available identify the most appropriate technologies
to use and so on. Managerial issues identified in this chapter. Start with identifying the
strategic value of e-commerce to the organization or just it is important for management understand
how e-commerce can improve marketing and promotions customer service and sales and supply chain
procurement process as far as as relating e-commerce activities with business objective
metrics. First, choose objectives inside appropriate metrics to measure the goals of actual achievement
should e-commerce activities be spun off as separate as a separate company that is really
up to you to to the specific situation. Awesome processes for limiting complex prices strategies.
Sometimes it is best to have have separate prices are a really depends on the specific
business that you are operating in the channels that using how should the e-business scope
of all.com experience. The company may handle a certain item in a stage of the number of
items will expand many kinds is the scope the bottom of items expand or fulfill a plan
has to evolve. Accordingly, considering the aligned strategy with partners who have strong
sourcing capabilities benefits and risks of e-commerce strategic advantage has to be carefully
weighed against potential risks. I did not identify credits vertical success factors
for e-commerce and doing a cost-benefit analysis is an important step in developing e-commerce
strategy. Why do we need in e-commerce plantings process strategic plan is both a document
and a process I mentioned the code earlier from boy. The Eisenhower plans do not mean
anything is planning is strictly important enough for partners. The process of identifying
our strengths and our weaknesses so we can kind of direct regularization directional
in a Spiegel happen e-commerce go global going global e-commerce is a very appealing proposition
for companies of all sizes, but it may be difficult to do, especially all large-scale
or force us SMEs that lack the necessary resources as a result there is a variety of different
opportunities that that SMEs in particular can take advantage of that they need to become
more aware of how you managed e-commerce project, forming an effective team is critical for
e-commerce project success. The team’s leadership bowels balance between technical and business
that getting the best staff representation on the team and having a project champion
are essential for success, so you should now be able to explain the strategic planning
process and why it is important should understand what a business plan is one of business cases,
you should understand the e-commerce strategic process. You should understand the e-commerce
strategy, initiation, formulation steps or stages you should understand the strategy
implementation and assessments to as stages you should understand some of the global e-commerce
issues and he should understand SME or small and medium-size businesses e-commerce. This
includes chapter 12 e-commerce strategy, globalization, and SMEs. Thank you

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