E-Seminar. E-Commerce Internet Business Solution Seminar

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1 E-Seminar E-Commerce Internet Business Solution Seminar

2 E-Commerce Internet Business Solution Seminar 3 Welcome 4 Objectives 5 The Internet Revolution 6 E-Commerce Defined 7 Types of E-Commerce 8 E-Commerce Benefits 9 Requirements for Success 10 Your E-Commerce Website 11 Technology Solutions 12 Conclusions

3 Welcome Welcome to the Internet Business Solution seminar on E-Commerce. The Internet Revolution is affecting businesses of all sizes. New web-based business models arise and determine more and more the competitive landscape in many industries. However, the Internet is only as useful as the applications to which it is applied. One of the most compelling categories of Internet-enabled applications is E-Commerce. And what s more, you don t have to be a big corporation to share in the advantages of E-Commerce. This seminar will give you an overview of E-Commerce and explains how your company can benefit from selling goods and services over the Internet. 3 of 13

4 Objectives In this E-seminar, we will discuss the different aspects of getting involved in the Internet Economy through E-Commerce. We will first discuss what E-Commerce is and which kinds of E-Commerce exist today. You will also learn how selling over the Internet can be beneficial to your company. Then we will discuss the requirements to make E-Commerce a success for your company, and what the options are to set-up your E-Commerce enabled Website. 4 of 13

5 The Internet Revolution Hello, and sorry to interrupt. I am General Manager of a company of only 20 people. I can see how E-Commerce would probably work well when you sell things like books or CDs, but I don t see how other businesses, like mine, who sell pretty specialised products and services, could benefit. Well, first of all, Internet technology is available to anyone, anywhere. Any business, regardless of its size, can benefit from using the Internet with only a minimum investment. There are even examples of one-man companies who have successfully created an E-Commerce business. E-Commerce is possible in a variety of ways. You don t have to immediately go the whole way to a virtual shop without human intervention. You could start with the automation of a few routine transaction processes, for instance. Such as, for a common process like order entry, where the time required can be reduced from four hours to four minutes, and the paper involved from dozens of sheets to none. Through an E-Commerce enabled Website, your customers can receive more choice, better service and faster delivery. E-Commerce over the Internet is becoming an essential business tool for any company. With the rapid change occurring in the Internet Revolution however, it will soon become a requirement even for survival, and not just a tool of innovation. You re exaggerating aren t you? Why would that be? Because the benefits of E-Commerce, as we will see, are too compelling for a company to let go to its competition. 5 of 13

6 E-Commerce Defined But let s first define E-Commerce. E-Commerce or electronic commerce is a business activity which includes the various transactions associated with buying and selling goods and services online, using the Internet. Oh, but my company already has a website which our customers can visit! OK, but simply viewing a website is not E-Commerce. Purchasing a product over the Internet, for instance, is E-Commerce. Examples of the transactions involved are ordering, pricing, billing, payment and customer service. E-Commerce differs from traditional commerce in a number of ways. It usually doesn t require person-to-person contact, it automates processes and transactions which used to happen completely manually, and, most of all, it is not restricted to business hours or physical locations. 6 of 13

7 Types of E-Commerce When my company buys goods online from another company, is that also considered as E-Commerce? Generally, there are two main types of E-Commerce: Business-to-Consumer E-Commerce, and Business-to-Business E-Commerce Most people think of business-to-consumer sales when they hear the word E-Commerce. Buying a book or CD through a website using your PC at home is a typical example of Businessto-Consumer E-Commerce, also referred to as B2C E-Commerce. In this way, any type of retail product sold in stores can be sold through the Web. However, studies have shown that online Business-to-Consumer sales account for only 10% of all revenues generated through E-Commerce. Far more products and services are sold between businesses, and we refer to this as Business-to-Business E-Commerce, or B2B-E-Commerce. In this case, transactions occur between two separate businesses. For example, one company selling office supplies to another, or a supplier of raw materials allowing a construction company to order bulk quantities online. 7 of 13

8 E-Commerce Benefits OK, there seem to be many possibilities in applying E-Commerce. But isn t it just doing the same things in a different way, with, at the end of the day and despite all efforts, the same results? E-Commerce is not just a different way of doing commerce, it has many more advantages. It first of all is an extra sales channel to your existing customers, but also to many potential new customers, from anywhere around the world. Secondly, E-Commerce has no opening hours: e-commerce shops are open 24 hours a day 7 days a week. Aside from revenue growth related to this, your revenue can also be enhanced by adding new Web-based products and services. E-Commerce streamlines the flow of information between the different functions or departments of your company. E-Commerce transactions are usually faster, more efficient and more accurate than traditional transactions. Errors and duplicated work are reduced, and incorrect product shipments avoided. Transaction costs are also lower, since the time and overhead required to process an order are reduced. E-Commerce also gives you important information about the buying behaviour of your customers. This way, you can build stronger relationships with your customers, resulting in increased customer loyalty, which is a key competitive advantage. 8 of 13

9 Requirements for Success Hmm. Lots of benefits, indeed. And that all for just putting some products for sale on my website. Well, it s not just that. A successful implementation of E-Commerce requires you to understand and consider the following key requirements. First, your website is becoming an even more important portal to your business. Customers will now expect to find all the necessary information there relating to buying and ordering. Your website must be user-friendly, complete, and always up-to-date. Its performance and reliability must be as good as possible. As is the case with many Internet-based business solutions, your business processes will have to be considered carefully and most likely partly redesigned. Order processing, fulfillment and billing are just a few examples of processes which will be heavily affected by the introduction of E-Commerce. Be sure you are able to provide correct follow-up of your customers orders. confirmation messages following the order submission, tracking numbers for online customer following-up their orders, and timely and undamaged delivery are all crucial elements in keeping customers confident about your E-Commerce capabilities. Finally, most web consumers are concerned about the security of their financial transactions. Credit card and payment information needs to be kept confidential, and private date needs to be protected. 9 of 13

10 Your E-Commerce Website There seem to be quite a number of requirements for my E-Commerce website. How should I approach this? You basically have two options. Either you decide to host your E-Commerce Website in-house, or you rely on an Internet Service Provider or ISP to host your site for you. When you choose an ISP to host your site, you often get a number of additional services at your disposal. Some ISPs provide e-commerce packages, credit card authorisation systems, website development services, and so on. They can also offer a redundant and high-speed connection to the Internet, all for a monthly fee. On the other hand, self-hosting also has certain advantages. You have complete control of your hardware or software, while an ISP may only offer you a few limited options. It may also be easier to integrate with existing back-office applications, such as your order or billing database. However, self-hosting remains the more expensive investment, as it requires a full set-up of inhouse e-commerce systems, high-speed Internet connections, secure payment processing and round-the-clock maintenance. Given the budgetary requirements, it is thereforeusually out of reach of smaller companies. 10 of 13

11 Technology Solutions And what does it involve in terms of networking equipment, in either scenario? When you decide to host the E-Commerce system yourself, you will have to use a Firewall to separate your office network from the E-Commerce network, so that Internet users cannot access your company LAN. You will also need a high-speed, direct connection to the Internet, to permanently allow your E-Commerce customers fast access to your site. Broadband Internet connections such as Cable or DSL are heavily recommended here. Once the traffic to your website is becoming significant, you could consider Content Networking solutions to optimise the performance of your E-Commerce site. If you choose to host your site at an ISP, security, redundancy and high-speed Internet connection will be taken care of by the provider. As the E-Commerce server needs to be connected to your back-office systems, for example for order processing, you will still need a firewall and a reliable connection to your ISP. ISPs who have achieved the Cisco Powered Network or CPN designation can supply a range of services to simplify the design, launch and continued operation of your E-Commerce site. You can learn more about these technologies in the Technology Solutions E-Seminars. 11 of 13

12 Conclusions To summarise, E-Commerce provides you with a new shop window on the Internet, for both your existing customers and many potential new customers. E-Commerce has many compelling benefits, such as increased revenues, reduced costs, valuable customer information, higher customer loyalty, and expanded markets. By using E-Commerce solutions, you can offer your customers a convenient shopping method, maintain strong customer relationships, and stay competitive. In terms of your E-Commerce infrastructure, you have a choice between self-hosted or ISPhosted solutions. Security is a key requirement in both approaches. Finally, introducing E-Commerce will have a significant impact on your organisation. Don t forget that you should put in place the appropriate business processes to support your E-Commerce activities. 12 of 13

13 Corporate Headquarters Cisco Systems, Inc. 170 West Tasman Drive San Jose, CA USA Tel: NETS (6387) Fax: European Headquarters Cisco Systems Europe 11, Rue Camille Desmoulins Issy Les Moulineaux Cedex 9 France Tel: Fax: Americas Headquarters Cisco Systems, Inc. 170 West Tasman Drive San Jose, CA USA Tel: Fax: Asia Pacific Headquarters Cisco Systems Australia, Pty., Ltd Level 17, 99 Walker Street North Sydney NSW 2059 Australia Tel: Fax: Cisco Systems has more than 190 offices in the following countries. Addresses, phone numbers, and fax numbers are listed on the Cisco.com Website at Argentina Australia Austria Belgium Brazil Canada Chile China Colombia Costa Rica Croatia Czech Republic Denmark Dubai, UAE Finland France Germany Greece Hong Kong Hungary India Indonesia Ireland Israel Italy Japan Korea Luxembourg Malaysia Mexico The Netherlands New Zealand Norway Peru Philippines Poland Portugal Puerto Rico Romania Russia Saudi Arabia Singapore Slovakia Slovenia South Africa Spain Sweden Switzerland Taiwan Thailand Turkey Ukraine United Kingdom United States Venezuela Copyright 2001, Cisco Systems, Inc. All rights reserved. Cisco Systems and the Cisco Systems Logo are registered trademarks, and Empowering the Internet Generation is a service mark, of Cisco Systems, Inc. and its affiliates in certain other countries.

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