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Chap. 12 Planning for Ecommerce by Mind Map: Chap. 12 Planning for 
Ecommerce
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Chap. 12 Planning for Ecommerce

Planning Ecom Ininitiatives

Identifying Objectives

Objectives must be identified for a business to strive in Ecom. Some objectives include: increasing sales inexisting markets, operning new markets, finding new vendors, or recruiting employees more effectively.

Linking objectives to Bus. Strategies

Businesses can also use the Web to complement their business strategies and improve their competitive positions by undertaking activities such as: Selling advertising, Building brands, Selling products and services, Operating auctions, and Managing supply chains.

Measuring Benefits

Benefits can be measured in a variety of different ways. For example it could be as easy as keeping track of first time buyers coming back and buying more after the first time. Alternatively, supply chain managers can measure supply cost reductions or quality improvements. Auction sites can set goals for the number of auctions they do and how many people have viewed the item up for bids. Having the benefits measuring in $ lets the company compare benefits to costs.

Key definitions

Downstream Strategy

Tactics that improve the value that a business provides to its customers

Upstream Strategy

Tactics that focus on reducing costs or generating value by working with suppliers or inbound logistics.

Capital Investments

major investments such as equipment, personnel, and other assets.

ROI

method for evaluating the potential costs and benefits of a proposed capital investment.

Outsourcing

Hiring another company to provide the outside support for all or part of the project.

Project manager

person with specific training or skill in tracking costs and the accomplishment of specific objectives.

Web graphics designer

person trained in art, layout, and who understands how web pages are constructed.

Call center

company that handles incoming customer calls and emails for other companies.

Network operations

responsible for the system's reliable and secure operation.

Database admin

function to support activities such as transaction processing, order entry, inquiry management.

Managing Costs

Total cost of Ownership

The project budget must include hiring, training, salaries, design outsourced work, and personnel design costs. Costs related to the activitiy must be accounted for.

Change Management

When change is introduced to the workplace, employees become concerned about how to cope with change. These concerns lead to increased stress. Management must overcome this because it could cost the company. Allowing employees to participate in planing for the change or envolving them in some decisions is a way to relieve this stress.

Opportunity Costs

A huge cost to the company is the cost of not undertaking such an initiative of getting involved in Ecom.

Web site costs

Getting a web site up and running plus maintaining it doesn't come with a low price tag. To invest to a web site a small bus. costs 10-50K, entry level bus. 100K-1M, mid level 2M-5M, and upper level 15M plus.

Hardware/Software

Most changes in cost of hardware are down, but the increasing sophistication of software provides demand for newer and cheaper software. This has potential to net increases in overall hardware costs.

Benefits and Costs

Comparing Benefits to Costs

Their are different techniques in how companies measure benefits over costs. No matter how they do it, if the benefits exceed the costs, the project is worth investing. The comparision of value or benefits to value of costs must be determined.

ROI

ROI techniques provide a quantitative expression of a comfortable benefit-to-cost margin for a specific company. ROI predicts benefits and returns. A weakness that ROI has is that it tends to emphasize short-run over long-run benefits.

Strategies for developing Ecom web sites

Internal development vs Outsourcing

The internal team, First step in determining which parts to outsource is to create an internal team that is responsible for the project. Team members should be familiar with internet and be interested in taking the company beyond its boundaries. This team decides which parts of the project to outsource.

Early outsourcing, outsoucing the initial site design and development to launch the project quickly. The outsoucing team them trains the company's info system professionals in the new technology.

Late outsourcing, The company's info system professionals do the initial design work. Once the company has gained competitive advantage provided by the system, the maintenance can be outsourced.

Partial outsourcing, the company identifies specific portions of the project that can be completely designed, developed, implemented, and operated by another firm that specializes in a particular function.

Selecting a Hosting Service

The internal team should be responsible for selecting the ISP that will provide the site's hosting service. When selecting a hosting service functionality, reliability, security, and cost are all factors. The companies info on customers, products, pricing, and other data will be placed in the hands of services providers, the vendor's security policies are very important.

New Methods for Implementing partial outsourcing

Incubators, Company that offers start-up companies a physical location with offices, accounting and legal assistance, and internet connections at very low monthly cost. In exchange, the incubator receives an ownership interest in the company. When the company grows to a point of maunching a public offering of stock, the incubator sells back owner interest.

Fast Venturing, An existing company that wants to launch Ecom initiatives joins external equity parnters that can offer the experience and skills needed to develop the project rapidly.

Mananging Ecom implementations

Project management

collection of formal techniques for planning and controlling the activities undertaken to achieve a certain goal. Project plan includes criteria for cost, schedule, and performance.

Project portfolio management

technique in which each project is monitored as if it were an investment in a financial portfolio.

Staffing for Ecom

Staffing needs must be determined for Ecom and setting up those Ecom initiatives, staffing areas include: business managers, project manageers, content creators, network operators, database administators.

Postimplementation audits

A formal review of a project after it is up and running. This audit gives managers a chance to examine objectives, cost estimates, scheduled delivery dates and compare them to what actually has happened or will happen.