Chapter Two Business in Cyberspace


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Kunnskapskilden –  E-Business





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The E-Business, the E-Customer, their Relationship and Interactivity


KunnskapskildenE-Business –
E-Business, E-Customer, Relationship and Interactivity


The E-Business, the E-Customer,
their Relationship and Interactivity 

Jan Vig


Dissertation  av Jan Vig om E.Business, E-Customer, Relationship and Interactivity  (286 sider) i forbindelse med Masterstudie i Information Technology and Communication Juni 2000.


The E-Retailer Business, the E-Customer,
their Relationship and Interactivity

Table of Contents

Chapter One Introduction to the study

Chapter Two Business in Cyberspace

Chapter Three E- Retailer Commerce

Chapter Four E-Customer, Relationship and Interactivity

Chapter Five A Successful Case study –

Chapter Six The Future, Critical Success Factors, E-Business Strategy, Results and Conclusion




Chapter 2

Business in Cyberspace


Chapter Two Business in Cyberspace

2.1 Introduction
2.2. The new digital world

2.3 The Net Economy
2.4 The interactive marketplace
2.5 Business in Cyberspace
2.6 E-Business, Organisation and Culture Change
2.7 Trends
2.8 Web Design, Usability and Communication
2.8.1 Web Communication
2.8.2 Web Design and Communication
2.8.3 Usability
2.9 Interactivity, Flow and Stickiness
2.9.1 Interactivity
2.9.2 Flow
2.9.3 Stickiness
2.10 Summary



In order to implement any business model, the retailer first has to understand and know where the company is today. Information technology is the foundation upon which the E-Business model is built. Without a solid basement the retailer can’t build a customer-led E-Business. The retailer has to know what its own technical knowledge is, what the current technology standards are, what kind of infrastructure it has, what kind of technology has to be upgraded etc. This is essential for planning the future technological direction for going online. Then the retailer has to understand the challenges, opportunities and treats in the interactive marketplace.

The retailer has to analyse where it is from an organisational perspective. This includes identifying the knowledge assets, as well as strengths and weaknesses. The E-retailer has to evaluate its current culture and how it eventually has to change to meet the demands in an interactive marketplace. It should also identify the other assets, including capital and inventory as well as any risks that the company face today and could faces tomorrow.

The retailer should look at what changes it need to make in its operations. These can include additional staff, more business intelligence, more investment in the fulfillment process, new partnerships etc.

It is important to know what the competitors are doing online. The retailer has first to identify who they are, including indirect competitors. It has to know the size and potential impact the competitors operations could have on their own online business. Where are they standing relatively compared with the retailer’s own organisation?  If they are significantly bigger, they could be a tremendous threat. The E-retailer also has to find out in which markets they are operating in and which advantages they may have compared with itself.

The retailer needs also to know how far the industry is on the learning curve in E-Commerce. Is the industry using the last E-Business technology as appropriate CRM software for instance? If not will the retailer needs to invest in new technology, which the industry hasn’t tried out yet? All this will perhaps require that the retailer take a leadership role within the industry.

Added to this are the other factors which impact on strategies for choosing business models, such as partnership, new solutions, reengineering in organisation, employees possibilities and motivation for change, customers possibilities in participating in the change process etc.

Last but not least the retailer has to understand the interactive marketplace from the customers point of view. To create great customer experience it has to understand how important communication is in the process by creating a “sticky”, user friendly E-Retailer web site. The E-Retailer has to understand that today it has to do with customers who has more power than before. It has to deal with and react to a customer-led revolution, which will change the way the retailer has to do business otherwise it will not survive.


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