eComm_ERP2

Ecommerce

• Ecommerce, or electronic commerce, refers to the buying and selling of goods and services over the internet.

• Emerged in the late 1990s with the advent of web browsing.

• Transformed how organizations market and provide goods/services, as well as how they acquire and retain customers.

• Social media has played a significant role in ecommerce by allowing organizations to target audiences efficiently and cost-effectively.

Defining Characteristics of Ecommerce

• Everywhere Presence: Accessible via smartphones, tablets, and laptops; no physical store needed.

• Reduced Transaction Costs: Eliminates middlemen and warehousing, simplifying direct delivery to consumers.

• Market Expansion: Businesses can easily reach new markets without the need for physical infrastructure.

• Interactivity: Enhanced customer experience through personalized recommendations and user feedback.

• Rapid Price Comparison and Personalization: Consumers have tools to easily compare prices and receive tailored offers based on past behaviors.

• Social Networking Integration: Increased advertising on social media platforms due to targeted and specific audience engagement.

The Uber Example

• Disruption of the traditional taxi industry, illustrating how technology transformed service delivery.

• Utilized smartphones and GPS to enhance customer experience through transparency (cost, time) and convenience (easy payment, driver matching).

• Demonstrated how digital platforms can connect service providers with consumers without owning assets (e.g., Uber doesn't own cars).

Digital Goods

• Digital products (software, music downloads) differ from physical goods—ownership is often restricted to a license.

• Cost of producing digital goods remains constant regardless of the quantity; this drastically changes business models.

• Significant shift in how companies produce and distribute products; for example, software is now commonly downloaded instead of shipped.

Types of Ecommerce Models

• Business to Business (B2B): Companies selling to other companies. Examples include suppliers of raw materials to manufacturers.

• Business to Consumer (B2C): Companies like Amazon selling directly to consumers.

• Consumer to Consumer (C2C): Marketplaces like eBay allowing individuals to sell to one another.

• Mobile Commerce (mCommerce): Transactions conducted through smartphones, increasingly becoming the standard.

Data Interchange Standards

• Electronic Data Interchange (EDI) helps businesses communicate orders and stock levels electronically, enhancing supply chain efficiency.

• EDI standards can automate processes like ordering and invoicing, improving operational effectiveness.

Social Ecommerce

• Modern social networks create targeted advertising opportunities based on extensive data about user behavior and preferences.

• Exploits user engagement on platforms like Facebook and Instagram to drive sales, offering tailored ads that resonate with potential customers.

Enterprise Applications

• Focus on Enterprise Resource Planning (ERP) software, crucial for managing business operations and processes across organizations.

Importance of ERP

• Streamlines operations by integrating different departments (e.g., sales, manufacturing, HR) for better data sharing and operational efficiency.

• Facilitates adherence to business rules through automation of processes.

• Enhances decision-making with real-time data insights, aiding business processes from sales forecasting to staffing needs.

Challenges of ERP Implementation

• ERP systems are complex, requiring thorough mapping of existing business processes and significant customization based on organizational needs.

• Implementation can involve high costs, time (often more than a year), and extensive change management to transition from legacy systems.

ERP Components

• Modules: Specific software applications for different functions (e.g., finance, supply chain, HR, CRM) that share a common data repository.

• Business Intelligence Tools: Enhances capabilities by providing timely insights from integrated data for better decision-making.

Trends in ERP and Future Directions

• Increasing adoption of cloud-based ERP solutions and mobile integration for frontline workers.

• Transition towards open-source ERP options to reduce costs.

• Continuous integration of AI and digital tools into business processes aiming for improved efficiency, customer understanding, and operational agility.

Conclusion

• Both ecommerce and enterprise applications have significantly transformed business landscapes.

• Organizations must adapt to these technological advancements to survive and compete, transitioning from traditional methods to innovative, digital-centric models.