Doing Business on the

Internet
 What is it?

Doing business online

Using power of digital information to
understand needs and preferences
Easy delivery,personalized and automated
services
 Benefits

Direct marketing, selling and customer

service
Online banking and billing
Secure distribution of information
Value chain trading
Corporate purchasing
Financial and information service
 Not only…

Adopting new technology

Reengineering of business process to maximize the
benefits
 Direct Marketing, selling and
service
Creates demand, targets customer segment
with personalized info
Observation of customers
Not just list of catalog items
Integrated sales processing(e-payment,
automatic tax calculation, billing and
distribution)
Business to consumer increases the revenue
Financial and information service

Online banking
save time, money, transaction b/w acc.,
stock, trading, bonds, mutual fund..
Online billing
companies achieve cost saving.
Avg of 23 bills/month through mail

Secure information distribution

Maintenance, Repair and operation
(MRO)
Internet offers time and cost saving for
corporate purchasing of low-cost, high
volume goods for MRO
Reduces the administrative work
 Value Chain Integration
Need for tight integration across suppliers,
manufactures and distributors
Delay in inventory, stock maintenance
may create delay and may result in out-of-
stock event.
Can be reduced by preparing reports and
analysis
Issues in Implementing e-comm.
Cost
Value
Security
Leveraging the existing system
Interoperability
Scope of the Internet and
the Web
New set of communication and
Technology

Interoperate
Multimedia applications
Voice to video etc..
 Contd…
Voice over IP (VoIP)
More Multimedia services like unified
messaging, video conferencing, instant
chat etc..
Hence Session Initiation Protocol (SIP) is
used.
 SIP
Functions- signaling and call control
Definition of service like Point-to-point,
multi-point conferencing, text, video or
voice
Performs routing service
 Benefits of SIP
Interactive multimedia
experience
Easy implementation
and setup (uses proxy
servers to route the
info and they are
logical)
Easy integration of
many service
Using the web to reach customers

Keeping customers is cheaper than

getting new ones (retention)
Flexibility is more (no apologize, no
complaints …)
 The shift to e-business

Global reach
Higher profile
24 X 7 availability
Targeted focus
Cost savings
New medium and new expectations

Speed
If it isn’t broken
No experience required
The often missing piece
Acquisition, retention and referrals
Poor performance and failure
Ensuring the customer experience
 Speed wins

Eight-second rule of thumb

Many factors from fundamental
architecture to network traffic
$473 million is lost/month from customer
bailout from impatience
 If it isn’t broken
Changes in functionality and presentation

No experience required
Recent survey by ITL
49% - computer problems more stressful than delay in
public transaction
79%- computer problems more stressful than having
to spend a weekend with a spouse’s parent
23%- computer problems more stressful than being
left by the partner or spouse
 The often missing piece

Trust
To be successful
1.sophisticated and fast
2.easy and consistent
3. extremely reliable
Acquisition, retention and referrals

7 to 11 times cheaper to keep a current

customer than to add a new one
Increase in profit by almost 100% if 6% more of
their customers were retained
91%-96% of a profits come from loyal customers
McKinsey & Co. calculates than an 11%
increase in repeat customers translates to a
10.6% increase in company value
Bain & Co – online grocers must keep
customers for 29 months just to break even
 Poor performance and failure

5 out of 6 experienced a failed purchase;

29% of all online purchase failed
24% of online shoppers who experienced
a failure stopped shopping at that site; 7%
also stopped shopping at that company’s
brick-and-mortar store
Satisfied customer spent- $600 in 13
transactions and unsatisfied customer-
$250 in 5 transactions
Ensuring the customer experience