digital business and e-commerce Prof. Simón P. Deffendini, Ph.D. digital business and e-commerce Section 2 Opportunity analysis for digital business and e-commerce Prof. Simón P. Deffendini, Ph.D. digital business and e-commerce • Digital marketplace • Exchanges of information and commercial transactions between consumers, businesses and governments completed through different forms of online presence such as search engines, social networks, comparison sites and destination sites. Prof. Simón P. Deffendini, Ph.D. digital business and e-commerce • Path to purchase • The different sites, channels, devices and information sources that consumers use to inform their purchase decision for a product or service. • Also known as conversion pathways on a site. Prof. Simón P. Deffendini, Ph.D. digital business and e-commerce • Multiscreening • A term used to describe simultaneous use of devices such as digital TV and tablets. Prof. Simón P. Deffendini, Ph.D. digital business and e-commerce • Destination site • Typically a retailer or manufacturer site with sales and service information. • Intermediaries such as media sites may be destination sites for some. Prof. Simón P. Deffendini, Ph.D. digital business and e-commerce • Online intermediaries: • Websites which help connect web users with content they are seeking on destination sites. • Search engines and shopping comparison sites and traditional brokers, directories and newspaper and magazine publishers & online. Prof. Simón P. Deffendini, Ph.D. digital business and e-commerce Online marketplace environmental analysis Environmental scanning and analysis Situation analysis Organisation’s external environment and internal processes to inform its strategies. Monitoring the environment and events and responding accordingly https://www.youtube.com/watch?v=y60yeHak5bE Prof. Simón P. Deffendini, Ph.D. digital business and e-commerce Strategic agility The capability to innovate and so gain competitive advantage within a marketplace by monitoring changes within an organisation’s marketplace and then to efficiently evaluate alternative strategies. Prof. Simón P. Deffendini, Ph.D. digital business and e-commerce • Online ecosystem • Describes the customer behaviour or flow of online visitors between search engines, media sites and other intermediaries to an organisation and its competitors. • Prof. Simón P. Deffendini, Ph.D. digital business and e-commerce • Online ecosystem • Major online players such as Facebook & Google have developed their online market ecosystem which connects websites through data exchange, giving opportunities to enhance the customer experience and extend their reach and influence. •Prof. Simón P. Deffendini, Ph.D. digital business and e-commerce An online marketplace map Prof. Simón P. Deffendini, Ph.D. digital business and e-commerce An online marketplace map Prof. Simón P. Deffendini, Ph.D. digital business and e-commerce An online marketplace map Prof. Simón P. Deffendini, Ph.D. digital business and e-commerce An online marketplace map Customers Different target segments for an online business in order to then understand their online media consumption, buyer behaviour and the type of content and experiences they will be looking for from intermediaries and your website. Prof. Simón P. Deffendini, Ph.D. digital business and e-commerce An online marketplace map Search Intermediaries These are the main search engines in each country: Prof. Simón P. Deffendini, Ph.D. digital business and e-commerce An online marketplace map Intermediaries, influencers and media sites Media sites and other intermediaries such as aggregators, affiliates and influencers (blogs) are often successful in attracting visitors via search or direct since they are mainstream brands Prof. Simón P. Deffendini, Ph.D. digital business and e-commerce An online marketplace map Intermediaries, influencers and media sites (a) Mainstream news bloomberg.com (b) Social networks LinkedIn.com (c) Niche or vertical media smartinsights.com Prof. Simón P. Deffendini, Ph.D. digital business and e-commerce An online marketplace map Intermediaries, influencers and media sites (d) Price comparison or aggregators https://www.moneysupermarket.com (e) Super-affiliates. https://v2-affiliate.taxi2airport.com (f) Niche affiliates, influencers or bloggers moneysavingexpert.com https://influencermarketinghub.com/topinstagram-influencers-in-2019/ Prof. Simón P. Deffendini, Ph.D. digital business and e-commerce An online marketplace map Destination sites: These are the sites that the marketer is trying to generate visitors to, whether these are transactional sites, like retailers, financial services or travel companies or manufacturers or brands. Prof. Simón P. Deffendini, Ph.D. mercedes-benz.com digital business and e-commerce Environment constraints and opportunities Customers – which services are they offering via their website that your organisation could support them in? Competitors – need to be benchmarked in order to review the online services they are offering – do they have a competitive advantage? Prof. Simón P. Deffendini, Ph.D. Intermediaries – are new or existing intermediaries offering products or services from your competitors while you are not represented? Suppliers – are suppliers offering different methods of procurement to competitors that give them a competitive advantage? digital business and e-commerce Environment constraints and opportunities Society – what is the ethical and moral consensus on holding personal information? Country specific, international legal – what are the local and global legal constraints, for example, on holding personal information, or taxation rules on sale of goods? Prof. Simón P. Deffendini, Ph.D. Country specific, international economic – what are the economic constraints of operating within a country or global constraints? Technology – what new technologies are emerging by which to deliver online services such as interactive digital TV and mobile phone-based access? digital business and e-commerce Marketplace channel structures Marketplace channel structures: The way a manufacturer or organisation delivers products and services to its customers Electronic marketplace: A virtual marketplace such as the Internet in which no direct contact occurs between buyers and sellers. Prof. Simón P. Deffendini, Ph.D. digital business and e-commerce Marketplace channel structures Disintermediation: The removal of intermediaries such as distributors or brokers that formerly linked a company to its customers. Prof. Simón P. Deffendini, Ph.D. digital business and e-commerce Marketplace channel structures Reintermediation (countermediation): The creation of new intermediaries between customers and suppliers providing services such as supplier search and product evaluation. Prof. Simón P. Deffendini, Ph.D. www.alibaba.com Paypal.com digital business and e-commerce Location of trading in the marketplace Seller-controlled The main home page of the company. Dell Computers Prof. Simón P. Deffendini, Ph.D. Armani digital business and e-commerce Location of trading in the marketplace Neutral sites Independent e v a l u a t o r intermediaries that enable price and product comparison. Walmart Prof. Simón P. Deffendini, Ph.D. Amazon digital business and e-commerce Location of trading in the marketplace Buyer-controlled Buyer initiates the market-making http://powerwest.com.au Prof. Simón P. Deffendini, Ph.D. digital business and e-commerce Omnichannel strategy Fully integrates all consumer touchpoints and data sources to provide consumers with a seamless experience, regardless of how or where they choose to interact with the brand (i.e. desktop or mobile device, by telephone or in a physical store, etc.). Prof. Simón P. Deffendini, Ph.D. digital business and e-commerce Omnichannel marketplace models Customer journey A description of modern omnichannel buyer behaviour as consumers use different media to select suppliers, make purchases and gain customer support Prof. Simón P. Deffendini, Ph.D. digital business and e-commerce Business model • An architecture for product, service and information flows, including a description of the various business actors and their roles; and a description of the potential benefits for the various business actors; and a description of the sources of revenue. • (Timmers - 1999) Prof. Simón P. Deffendini, Ph.D. digital business and e-commerce Business Model Canvas Prof. Simón P. Deffendini, Ph.D. digital business and e-commerce Business model • There are three different perspectives from which a business model can be viewed Prof. Simón P. Deffendini, Ph.D. digital business and e-commerce Business model • Revenue models • Describe methods of generating income for an organisation Prof. Simón P. Deffendini, Ph.D. digital business and e-commerce Business model • Revenue models • CPM display advertising on-site. • This is the traditional method by which site owners charge a fee for advertising. Prof. Simón P. Deffendini, Ph.D. digital business and e-commerce Business model • Revenue models • CPC advertising on-site (pay-per-click text ads). • Advertisers are charged not simply for the number of times their ads are displayed, but according to the number of times they are clicked upon. Prof. Simón P. Deffendini, Ph.D. digital business and e-commerce Business model • Revenue models • Sponsorship of site sections or content types (typically fixed fee for a period). • A company can pay to advertise a site channel or section. Prof. Simón P. Deffendini, Ph.D. digital business and e-commerce Business model • Revenue models • Affiliate revenue (CPC/CPA). • Affiliate revenue is commissionbased, for example Amazon books are displayed on Dave Chaffey’s site Smart Insights Prof. Simón P. Deffendini, Ph.D. digital business and e-commerce Business model • Revenue models • Transaction fee revenue. • A company receives a fee for facilitating a transaction. Examples include eBay and PayPal, Prof. Simón P. Deffendini, Ph.D. digital business and e-commerce Business model • Revenue models • Subscription access to content or services. • A range of documents can be accessed from a publisher for a fixed period. Prof. Simón P. Deffendini, Ph.D. digital business and e-commerce Business model • Revenue models • Subscription access to content or services. • A range of documents can be accessed from a publisher for a fixed period. Prof. Simón P. Deffendini, Ph.D. digital business and e-commerce Business model • Revenue models • Pay-per-view access to documents. • Here payment occurs for single access to a document, video or music clip that can be downloaded. Prof. Simón P. Deffendini, Ph.D. digital business and e-commerce Business model • Revenue models • Subscriber data email marketing. • The data a site has about its customers are also potentially valuable, since it can then send different forms of email to its customers from either the publisher or third parties. Prof. Simón P. Deffendini, Ph.D. digital business and e-commerce Business model • Revenue models • Calculating revenue for an online business • Site owners must develop models of potential revenue depending on the mix of revenue-generating techniques from the four main revenue options they use on the site. Prof. Simón P. Deffendini, Ph.D. digital business and e-commerce Business model • Revenue models • Calculating revenue for an online business • Site owners must develop models of potential revenue depending on the mix of revenue-generating techniques from the four main revenue options they use on the site. Prof. Simón P. Deffendini, Ph.D. digital business and e-commerce Business model • Revenue models • Calculating revenue for an online business • Site owners must develop models of potential revenue depending on the mix of revenue-generating techniques from the four main revenue options they use on the site. Prof. Simón P. Deffendini, Ph.D. digital business and e-commerce Business model • Revenue models • Calculating revenue for an online business • Site owners must develop models of potential revenue depending on the mix of revenue-generating techniques from the four main revenue options they use on the site. Prof. Simón P. Deffendini, Ph.D. digital business and e-commerce Valuing tech start-ups • 1 Concept • 4 Traffic • 2 Innovation • 5 Financing • 3 Execution • 6 Profile Prof. Simón P. Deffendini, Ph.D. digital business and e-commerce Commercial mechanisms and online transactions Prof. Simón P. Deffendini, Ph.D. digital business and e-commerce Commercial mechanisms and online transactions Prof. Simón P. Deffendini, Ph.D. digital business and e-commerce Commercial mechanisms and online transactions Prof. Simón P. Deffendini, Ph.D. digital business and e-commerce Commercial mechanisms and online transactions Prof. Simón P. Deffendini, Ph.D. digital business and e-commerce Prof. Simón P. Deffendini, Ph.D.