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E-CommerceInternet 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

E-CommerceInternet Business Solution

Seminar

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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.

E-Commerce Seminar

Welcome

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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.

E-Commerce Seminar

Objectives

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“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.”

E-Commerce Seminar

The Internet Revolution

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“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.”

E-Commerce Seminar

E-Commerce Defined

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“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 Business-

to-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.”

E-Commerce Seminar

Types of E-Commerce

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“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.”

E-Commerce Seminar

E-Commerce Benefits

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“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. Email

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.”

E-Commerce Seminar

Requirements for Success

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“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, web-

site 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 in-

house 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.”

E-Commerce Seminar

Your E-Commerce Website

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“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.”

E-Commerce Seminar

Technology Solutions

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“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 ISP-

hosted 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.”

E-Commerce Seminar

Conclusions

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