2.7 Trends

 

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

 

 

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

 

Dissertation
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 – Amazon.com

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

Appendix

 

 

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

 

 

2.7

Trends

 

Can you imagine a football game without the players? Or without the ball? On the other hand can you think of any business operating outside its «field», its environment. There are synonymous activities between businesses and its environment since they influence each other in many ways. In a few words companies take an outside – inside view of their environment all the time. This is a continuous process in order to monitor the changing environment and keep their strategies up-dated in order to meet the best opportunities offered. Managers faced with the need to analyse effectively the environment have to deal with problems and opportunities. The formulation of a strategy that is concerned with matching the capabilities of an organisation to its environment.

 

Two are the main parts that need to be analysed each time:

  • the macro environment and
  • the micro environment 

 

 

Some of the forces are “controllable” and that means they can be manipulated from the company and some others are “non controllable” factors which have to accepted as they are.

 

The major forces that represent the macro environment are namely: Social, Technological, Economic, Environmental and Political.

 

Each E-Retailer needs to ask itself these questions:

  • How will the change in the macro environment affect me?
  • How will my industry be transformed?
  • How can I meet the challenges and take advantage of opportunities?

 

 

 

The five key dimensions of change that are of global interest are here mentioned:
(Radcliffe, 1999)

 

Social Forces

  • New population structures
  • Changing family and social structures
  • Different work and leisure decisions
  • New tastes and preferences
  • Different socio-political attitudes

 

Technological Forces

  • Speed of innovation and change
  • “Step change” possibilities
  • Pervasive application opportunities
  • Falling relative costs of IT and telecommunications
  • New regulatory challenges

 

Economic Forces

  • Capital mobility and globalisation
  • Income growth and wealth disparities
  • Changing ownership structures
  • Focus on economic stabilisation

 

Environmental Forces

  • Climate change
  • Responses to new technologies
  • Changing consumer attitudes
  • Changing corporate attitudes
  • New regulatory challenges

 

Political Forces

  • Institutional reform
  • Choices on welfare reform
  • Balance between liberalisation and regulation

 

 

 

According to (Kalakota, 1999: 31) the main E-Business trends could be classified in the following way:

 

Consumer trends Service/Process trends
  • Speed of service
  • Self-service
  • Integrated solutions, not piecemeal products
  • Convergence of sales and service:
  • Customization and Integration
  • Ease of use: Make service consistent and reliable
  • Flexible fulfillment and convenient service delivery: Streamline your supply chain
Organisational trends Enterprise technology trends
  • Contract manufacturing: Becoming brand intensive, not capital intensive
  • Retain the core, outsource the rest: Business process outsourcing
  • Increasing process transparency and visibility
  • Continuous innovation and employee retention
  • Enterprise applications: Connect the corporation
  • Infrastructure convergence: Increasing melding of voice, data, and video
  • Multichannel integration: Computer telephony integration and voice recognition
  • Wireless applications enter the mainstream
  • Leveraging legacy investments: The rise of middelware for application integration

 

 

Table 2.3 E-Business trends

 

The 15 trends, which are illustrated above, contain three common threads, effectiveness, efficiency, and integration.

 

“ Effectiveness trends are those that directly affect the relationship between the enterprise’s customers and its environment.
Efficiency trends, on the other hand, affect the internal structure and operating activities of the enterprise.
Integration trends are those that push for one-stop-shopping consolidation.”

( Kalakota, 1999: 49)

 

According to PwC (1998) six forces will shape the future of business for insights into the megatrends of the millennium. One of this is especially for Europe and is not mentioned here.

 

  1. Industry Convergence
  2. E-Business
  3. Knowledge economy
  4. Corporate reporting
  5. Competition for best people 

 

 

Especially the second force is of interest for this dissertation.

 

According to PwC (1998) it will not be long before the «E» in E-Business is gone.

“It’s inevitable. Electronic business will evolve to such an extent, and its impact on business will be so pervasive, there will be no further need to distinguish between the two.”

 

E-Business is remaking the business world by: (PwC, 1998)

  • Redefining virtually every business process and function.
  • Changing conventional concepts and rules about strategic alliances, outsourcing, competition, industry specialisation, and customer relationships.
  • Creating a wealth of information about customers, enabling businesses to anticipate and satisfy individual needs with pinpoint precision.
  • Blurring the lines between industries.
  • Challenging every business to reinvent itself.

 

 

 

PwC argues that the transformation to an E-Business model will occur in stages.

  • establishing an Internet presence or channel
  • Web capabilities are actively integrated throughout the value chain. Here, customers and suppliers work together to build on-line value chains that improve service and reduce costs.
  • Businesses of all kinds will converge electronically to combine their expertise and provide packaged services. They will push the edge of their current E-Business capabilities to transform their strategies, organisations, processes, and systems so that they can better meet the needs of their customers. The focus here is on building trust.

 

 

Below is an overview of Web Trends tracked by WebTomorrow (1999)

 

Trend  Status  Notes
last modified:  August 03, 1999
Goodbye Middleman getting stronger Although stockbrokers and travel agents are in jeopardy, new middlemen such as eBay and Priceline are being invented.
Digital eCommerce  slow starting  Selling of digital «goods» (music, videos, software, etc.) will surpass selling of physical goods (books, CDs, etc.) once security and anti-pirating solutions become available.
Shopping Bots getting stronger  As the Web starts to resemble a mall with a million stores, customers have more and more trouble «shopping». To the rescue come personal shopping agents like Jango and MySimon.
PersonalizedEverything getting stronger  One day each individual surfer will see something different at the same Website.  One day,  one-to-one marketing will become a reality on the Web.
Neighborhood Web getting stronger  Now, small businesses can easily afford a Website presence. Here come the barber shops and bakery Websites.
Portal Domination  getting weaker  The Portal Wars will continue in 1999. Survival of the strongest or those who acquire or merge quickly. In general, «do everything» portals will yield to vertical portals like weather.com and mapquest.com.
Surfing WhileWatching   getting stronger  The big media companies like CBS or CNN will start to merge TV entertainment with Web entertainment at the same time. The sports media is leading this innovation – Pro sports with on-line support during the game.
Leaner BusinessWebsites getting stronger  Some business sites are getting leaner, but many are getting fatter. Read the secrets to Yahoo’s lean site.
Mobile Web  getting stronger  Perhaps the killer app of 1999 and 2000.From Internets to Intranets to Extranets quietly stronger The quiet side of the Web is business-to-business customer/supplier Intranets andExtranets.
Affiliate Marketing maxing out  Others are finding that Amazon’s affiliates strategy is more difficult to copy than first Imagined
Custom Pricing getting stronger  Upside down economy. The customer determines what he will pay. Watch Priceline.com and Accompany.
Search Frustration getting stronger Too many search engines that are too difficult to use.
Home Banking   slowly emerging  Customers like it, but the banks like it even more (less costs per transaction).
Slower Surfing  leveled off  Cable modems are relieving some speed problems for some people. Streaming video and heavy graphics remains a problem
Web in Retail Shops slowly emerging  Retail shops can hire less people and offer more customer support with Web terminals in the shop.

 

 

Table 2.4 Web Trends

Download Dissertation

 

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