Electronic Business
Marketing:
A comprehensive process that involves every aspect of a business from designing its products, setting the pricing strategy to analyzing sales statistics and collecting customer feedback.
BIS, 3rd, sem2, 2012-2013 2
Electronic Business
E-Marketing:
Refers to using technology such as the internet, website and email, sms, including its wide variety of options and tools to conduct your marketing activities and achieve your marketing objectives.
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Electronic Business
E-Marketing tools and strategies1) Business websites; 2) Search Engine;3) Email; 4) Online newsletters/e-zines; 5) Online catalogues; 6) Online press releases; 7) Online surveys;
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Electronic Business
E-Marketing tools and strategies, cont..8) Online customer service; 9) Banner advertising; 10)Affiliate marketing. 11)Mobile telephone marketing; 12)Online Community (Friendster,
YouTube) - new13)Web Log (Blog) - new
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E-Marketing Concept• get the right product • promoted in the right way • sold at the right price • distributed at the right place • profitably
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Examples of e-Marketing• online surveys to conduct market research • web site to display and sell your products • internet advertising to promote your
business • software to collect and analyze your
customer information
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Electronic Business
The Key to successful e-Marketing• The key to successful e-Marketing in today's
business environment is to place your clients in control. Allow them to choose how often and
what type of messages they receive
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Electronic Business
The Key to successful e-Marketing, cont..
• This is commonly referred to as Permission Marketing.
• Your e-Marketing messages and tools should aim to deliver information that the consumer wants - that they perceive to be valuable.
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Electronic Business
Integrating E-marketing Into Your Business • e-Marketing is not an alternative to your
existing Marketing Plan, in fact you may already have a "Marketing Plan" that identifies your marketing objectives, outlines your key strategies designed to achieve those objectives, and guides your daily marketing activities.
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Electronic Business
Integrating E-marketing Into Your Business, cont..
• With e-Marketing you can develop techniques to enhance this existing plan to make your marketing activities more effective (smarter) more efficient (cheaper) and you may even find that you can tap into new markets both locally and overseas.
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How Would E-marketing Enhance My Existing Marketing Plan
• With the use of internet-based product catalogues you can reduce your printing costs and maintain a higher quality of product information for your customers.
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Electronic Business
How Would E-marketing Enhance My Existing Marketing Plan, cont..
• By utilising marketing information systems you can analyse your sales information to make more informed decisions and customers all over the world can view your products with a website.
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Electronic Business
The main E-Marketing tools• Affiliate Program• Search Engine Optimization• Email Campaigns• Banner Exchange• Business Website• Mobile Phone Marketing
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Electronic Business
The main E-Marketing tools - Affiliate Program
Affiliate marketing is where you refer customers to other businesses via links to their web site from your web site or emails and receive commissions for each customer you refer to the other business.
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Electronic Business
The main E-Marketing tools - Affiliate Program, cont..
Conversely, you can set up your own affiliate marketing program to have other businesses sell your products and services for you by paying them a commission.
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Electronic Business
The main E-Marketing tools- Affiliate Program - Affiliate Types Commission Based (www.Amazon.com )Flat-Fee Based (www.paypal.com)Click-Through Based (www.overture.com )Banner-Impression Based (
www.doubleclick.com)
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Electronic Business
The main E-Marketing tools - Affiliate Program - Affiliate Advantages 1)Increased sales.2)Improves search engine link popularity.3)The Internet becomes your sales team.4)Low operating costs.5)Sites with affiliate programs could be perceived as more significant.
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Electronic Business
The main E-Marketing tools - Affiliate Program - Affiliate Disadvantages
1. Potentially expensive up-front costs.2. Administrative overhead.3. Accounting overhead.4. Some profits go to the affiliate.
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Electronic Business
The main E-Marketing tools - Search Engine Optimization
Search engine optimisation is the process of getting your web site address or URL as close as possible to the top of the search results when someone using the search engines is looking for the products you sell.
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Electronic Business
The main E-Marketing tools - Search Engine Optimization - Search Engine Tips 1. Submit Web site to search engine
(http://google.com/addurl).2. Use keywords in the content near the top of
the document.3. Keywords placed inside clickable link text
ranks higher.BIS, 3rd, sem2, 2012-2013 22
Electronic Business
The main E-Marketing tools - Search Engine Optimization - Search Engine Tips, cont.. 4. Use descriptive Web page titles.5. Use a descriptive URL, for example:
www.webmastercertification.com/webmaster-courses.cfm.
6. Encourage other sites to link to yours. BIS, 3rd, sem2, 2012-2013 23
Electronic Business
The main E-Marketing tools - Search Engine Optimization - Click Popularity Search Engines
1) http://www.yahoo.com 2) http://www.google.com 3) http://www.altavista.com 4) http://www.excite.com 5) http://www.lycos.com 6) http://www.msn.com 7) http://www.aol.com 8) http://www.askjeeves.com 9) http://www.nbci.com 10) http://www.iwon.com
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Electronic Business
The main E-Marketing tools - Email Campaigns
Email campaigns are targeted emails that work much like conventional direct mail campaigns. They come in various forms such as direct email, newsletters, newsgroups, and press releases.
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Electronic Business
The main E-Marketing tools - Email Campaigns - newsletters
• Newsletters, in this case, are email messages distributed by a company or organization to an opt-in list on a set schedule. Newsletters typically announce sales, specials, schedules, events, product releases, as well as a payload of useful information that makes the newsletters newsworthy.BIS, 3rd, sem2, 2012-2013 26
Electronic Business
The main E-Marketing tools - Email Campaigns – newsletters
• There are two types of marketing opportunities with newsletters. You can either offer your own newsletter or you can advertise in someone else's newsletter.
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Electronic Business
The main E-Marketing tools - Email Campaigns - Newsgroups
A newsgroup is a kind of electronic bulletin board where people who are interested in like subjects can post and respond to conversational "threads" or topics. There are literally thousands of newsgroups hosted all over the world, and covering every conceivable topic about which humans converse.BIS, 3rd, sem2, 2012-2013 28
Electronic Business
The main E-Marketing tools - Email Campaigns - press releases.
An Internet press release is the same as a traditional press release except it is internet based.
The idea is to send a document to a news provider with the hope they find your document newsworthy enough to publish.
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Electronic Business
The main E-Marketing tools – Email types
o Spam Email oOpt-out Email oOpt-in Email
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Electronic Business
The main E-Marketing tools - Email types - Spam Email
A sharp line divides email marketing from spam. Basically email marketing is solicited email (requested), and spam is non-solicited email (not requested).
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The main E-Marketing tools - Email typesOpt-out Email • Opt-out email is email sent to target groups
who have shown an interest in a specific topic. Once the email is received, the recipient has the option to "unsubscribe" from receiving further email from you.
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The main E-Marketing tools - Email typesOpt-out Email , cont..• Opt-out email is considered solicited email
because at some point the recipient filled out a form somewhere that landed them on a list of people who have agreed to receive email.
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Electronic Business
The main E-Marketing tools - Email typesOpt-out Email , cont..
Opt-out email is often mistaken for spam since you don't specifically ask for opt-out email.
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Electronic Business
The main E-Marketing tools - Email typesOpt-in Email• Opt-in email is email that has been specifically
requested. This email approach will be well received by your target audience since they ask you to send it to them.
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Electronic Business
The main E-Marketing tools - Email typesOpt-in Email
• The recipient must explicitly request to be placed on your opt-in list, or you run the risk of looking like a spammer.
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Electronic Business
The main E-Marketing toolsBanner Exchange• A banner advertisement is an image placed at
the top or bottom of a web page, to catch the viewer's eye and possibly prompt them to click on it.
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The main E-Marketing toolsBanner Exchange, cont..• It can either be static, that is, simply like a
billboard displaying the name of a website, or dynamic, encouraging the user to click on the banner image to be transferred to that website.
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Electronic Business
The main E-Marketing toolsBusiness Website
A company tells customers and potential customers where to find their website on the internet by giving them the address (or URL) of their home page. From the home page, you can get to all the other pages on their site.
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The main E-Marketing toolsBusiness Website, cont..
Web sites may be very complex and consist of hundreds of pages of information and even provide the ability for your customers to purchase your products on the internet. Alternatively, they can be quite simple, consisting of only a few pages that do little more than inform your customers of your businesses address and contact details. BIS, 3rd, sem2, 2012-2013 40
Electronic Business
The main E-Marketing toolsMobile Phone Marketing
Mobile telephone marketing is the use of mobile phone technologies such as voice, text and multimedia message services to promote products/services to consumers.
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The main E-Marketing toolsMobile Phone Marketing
Currently, the main mobile telephone technologies used for e-Marketing are:
• Short Message Service (SMS)• Multimedia Messaging Service (MMS)• Wireless Application Protocol (WAP)• General Packet Radio Service (GPRS)
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Electronic Business
eBusiness Seminars (3)1. Eportals
2. epayments
3. CMS
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Electronic Business
Enterprise Resources Planning (ERP)
Enterprise resource planning (ERP) is an enterprise-wide information system designed to coordinate all the resources, information, and activities needed to complete business processes such as order fulfillment or billing.
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Electronic Business
Enterprise Resources Planning (ERP)
An ERP system supports most of the business system that maintains in a single database the data needed for a variety of business functions such as Manufacturing, Supply Chain Management (SCM), Financials, Projects, Human Resources and Customer Relationship Management (CRM)
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Electronic Business
Enterprise Resources Planning (ERP)
An ERP system is based on a common database and a modular software design. The common database can allow every department of a business to store and retrieve information in real-time. The information should be reliable, accessible, and easily shared.
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Electronic Business
Enterprise Resources Planning (ERP)
The modular software design should mean a business can select the modules they need, mix and match modules from different vendors, and add new modules of their own to improve business performance
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Electronic Business
Enterprise Resources Planning (ERP)
• Ideally, the data for the various business functions are integrated. In practice the ERP system may comprise a set of discrete applications, each maintaining a discrete data store within one physical database.
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Electronic Business
Enterprise Resources Planning (ERP)
• The term ERP originally referred to how a large organization planned to use organizational wide resources. In the past, ERP systems were used in larger more industrial types of companies. Today the term can refer to any type of company, no matter what industry it falls in. In fact, ERP systems are used in almost any type of organization – large or small.BIS, 3rd, sem2, 2012-2013 50
Electronic Business
Enterprise Resources Planning (ERP)o ERP system modules
An ideal ERP system is when a single database is utilized and contains all data for various software modules. These software modules can include:
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Electronic Business
Enterprise Resources Planning (ERP)o ERP system modules
• Manufacturing• Financials• Human Resources• Supply Chain Management (SCM)• Projects• Customer relationship management (CRM)• Data Warehouse
BIS, 3rd, sem2, 2012-2013 53
Electronic BusinessERP system modules
BIS, 3rd, sem2, 2012-2013 5454
Employees
Managers andStakeholders
CentralDatabase
ReportingApplications
HumanResource
ManagementApplications
FinancialApplications
ManufacturingApplications
InventoryAnd SupplyApplications
HumanResource
ManagementApplications
ServiceApplications
Sales andDelivery
ApplicationsSales ForceAnd CustomerService Reps
Customers Back-officeAdministratorsAnd Workers
Suppliers
Electronic Business
Enterprise Resources Planning (ERP)o Main ERP vendors
• Baan• JD Edwards• Oracle• PeopleSoft• SAP
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Electronic BusinessMain ERP vendors
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ERP Vendors Revenue
6.5
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2.07
0.894
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Electronic Business
Enterprise Resources Planning (ERP)o Why ERP
• To integrate financial data.
• To standardize manufacturing processes.
• To standardize HR information.
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Enterprise Resources Planning (ERP)o ERP Project • Real transformational ERP efforts will usually run
between 1 to 3 years, on average.• Short implementations (3 to 6 months):
– small companies,– implementation limited to a small area of the company, or– the company only used the financial pieces of the ERP system.
• The important thing is not to focus on how long it will take but to understand why you need ERP and how you will use it to improve your business.
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Electronic Business
Enterprise Resources Planning (ERP)o How ERP improve business performance
• Improving integration, flexibility • Fewer errors • Improved speed and efficiency • More complete access to information• Lower total costs in the complete supply chain• Shorten throughput times• Sustained involvement and commitment of the top
managementBIS, 3rd, sem2, 2012-2013 59
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Enterprise Resources Planning (ERP)o How ERP improve business performance, cont..
• Reduce stock to a minimum• Enlarge product assortment• Improve product quality• Provide more reliable delivery dates and higher
service to the customer• Efficiently coordinate global demand, supply and
production
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Electronic Business
Enterprise Resources Planning (ERP)o ERP risks
• Expensive (can costs 100 thousands to millions of dollars)
• Time-consuming (can take months to years)
• Great risk for the organization • Transfer of Knowledge• Acceptance with the company
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Electronic Banking
What is E-banking
Electronic banking, also known as e-banking, virtual banking and online banking, is a service that allows customers to access their bank information, conduct financial transactions, make deposits, withdrawals and pay bills through the Internet without having to physically visit their bank.
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Electronic Banking
What is E-banking
Also, Internet banking (e-banking) is
defined to include the provision of retail and
small value banking products and services
through electronic channels as well as large
value electronic payments and other wholesale
banking services delivered electronically.BIS, 3rd, sem2, 2012-2013 64
Electronic Banking
History The concept of electronic banking
systems began when the first automated teller machines (ATMs) were installed in the 1970s.
ATM machines allowed deposits to be made from remote locations—a convenience for customers who otherwise would have had to withdraw cash personally from their bank.
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Electronic Banking
History, cont..
The advantages offered by ATM machines quickly spilled over to encompass other areas of bank services, computerizing manual systems for greater efficiency and time savings.
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Electronic Banking
History, cont..
The concept behind ATM machines gave rise to smart cards, intranet and Internet banking, EFT (electronic funds transfer) and POS (point of sale) systems, phone banking and other electronic services.
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Electronic Banking
Fundamental characteristics
Traditional Banking
Traditional banking was time-
consuming. A person would have to
physically walk into a bank, fill out a deposit
slip, wait in line and wait some more while the
teller processed his transaction. BIS, 3rd, sem2, 2012-2013 68
Electronic Banking
Fundamental characteristics Electronic Banking Transactions
Electronic banking allows anyone with a telephone, computer or bank card to access his/her account without ever crossing a bank's threshold. Electronic banking includes, among other things, electronic bill pay, funds transfer, balance retrieval and cash advances. It also includes direct deposit.
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Electronic Banking
Levels/Scope of e-banking business
Basic information e-banking
Simple transactional e-banking
Advanced transactional e-banking
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Electronic Banking
Levels/Scope of e-banking business
Basic information e-banking
Is a web sites that just disseminate
information on banking products and services
offered to bank customers and the general
public;BIS, 3rd, sem2, 2012-2013 71
Electronic Banking
Levels/Scope of e-banking business
Simple transactional e-bankingIs a web sites that allow bank customers
to submit applications for different services, make queries on their account balances, and submit instructions to the bank, but do no permit any account transfers;
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Electronic Banking
Levels/Scope of e-banking business
Advanced transactional e-bankingIs a web sites that allow bank customers
to electronically transfer funds to/from their accounts pay bills, and conduct other banking transaction online.
Usually, e-banking refers to types II and III.BIS, 3rd, sem2, 2012-2013 73
Electronic Banking
Current development situations (in industrial countries)
E-banking products and services are
getting more and more advanced and
increasing in variety. From providing
information at the early stage to providing
transactional activities.BIS, 3rd, sem2, 2012-2013 74
Electronic Banking
Current development situations (in industrial countries), cont.. Both volume and share in the total banking
business are getting bigger and bigger very fast
E-banking customer base is getting bigger quickly.
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Electronic Banking
Status in developing countries
Developing countries are:
in catching up in e-banking
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Electronic Banking
Impact of E-banking on traditional banking
• The early conventional wisdom: Internet banking would destroy the traditional banking business model and promote the entry of newcomers from the outside of the banking industry.
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Electronic Banking
Impact of E-banking on traditional banking, cont..• Developing countries could have the
“opportunities to leapfrog” in the adoption of efinance on a large scale.
• In reality, e-banking develops fast, but not damaging as conventional wisdom projected.
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Electronic Banking
Impact of E-banking on traditional banking, cont..
• The notion of leapfrog has not worked in many developing countries due to various impediments.
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Electronic Banking
Impact of E-banking on traditional banking, cont..
• already visible, including a high level of acceptance of technology by customers and financial institutions….H(h)owever, most projects have not yet been deployed on a large scale.
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Electronic Banking
Impact of E-banking on traditional banking, cont..
• It provides a comprehensive look at the status of efinance in developing countries. It covers arrange of areas related to e-finance including e-banking, e-payments, e-trades, and e-credit information
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Electronic Banking
Impact of E-banking on traditional banking, cont..
• Even in industrial countries, e-banking is still a complementary tools to traditional banking. Lots of pure e-banking businesses have been forced out of market.
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Impact of E-banking on traditional banking, cont..• Internet-only banks have been substantially
less profitable. They generate lower business volumes and any savings generated by lower physical overheads appear to be offset by other types of non-interest expenditures, notably marketing to attract new customers. BIS, 3rd, sem2, 2012-2013 83
Electronic Banking
• Banking consumers today have more options than ever before:– “brick and mortar” institution
(has a building and personal service representatives)
– “brick and click” institution(physical structure + Internet bank services)
– “Virtual bank”(no public building – exists only online)
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Electronic Banking
• Traditional banking business assumes:
– Customer desk at bank’s building
– Office hours from 8.00 am to 7.00 pm
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Electronic Banking
• Logical solution is to use e-channels:– Internet– WAP based mobile network– Automated telephone– ATM network– SMS and FAX messaging– Multipurpose information kiosks– Web TV and others …
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Electronic Banking
E-channels enable financial transactions from
anywhere and allow non-stop working
time.
Therefore, E-Bank is transforming banking
business into e-Business through utilizing e-
ChannelsBIS, 3rd, sem2, 2012-2013 87
Electronic Banking
BIS, 3rd, sem2, 2012-2013 88
• Customers’ requests are:– Non-stop working time– Using services from
anywhere
• E-channels provide:– Working time 0
- 24h– Great flexibility
Electronic Banking
More E-banking advantages:
• Possibility to extend your market (even out of country)
• Possibility to process more financial transactions
• Possibility to lower your transaction cost
BIS, 3rd, sem2, 2012-2013 89
Electronic Banking
• Electronic Banking Services
Electronic banking services are designed
to provide banking customers with the
capability to conduct banking business
remotely through personal computers and
other electronic devices .BIS, 3rd, sem2, 2012-2013 90
Electronic Banking
Electronic Banking Services• Types of Services
Electronic banking comprises personal
computer (PC) banking through
1. traditional proprietary communication channels
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Electronic Banking
Electronic Banking Services• Types of Services, cont..
2. retail and corporate Internet
banking services,
3. telephone banking, and
4 potentially other forms of remote electronic access to banking services.
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Electronic Banking
Electronic Banking Services• Types of Services, cont..
While electronic banking services have
been oriented toward retail customers, many
banking organizations are now offering small
business applications and corporate cash
management services via the Internet. BIS, 3rd, sem2, 2012-2013 93
Electronic BankingElectronic Banking Services
• Types of Services, cont..
These services typically include payroll, automated clearing house (ACH), and wire transfers. Wholesale banking services, which have been conducted electronically for many years, are also beginning to move from proprietary networks and communications channels to the Internet.BIS, 3rd, sem2, 2012-2013 94
Electronic Banking
Electronic Banking Services• Types of Services, cont..
Telephone banking, a fairly conventional form
of electronic banking, is provided by many
institutions. Telephone banking services generally
allow customers to check account balances and
transactions and pay bills through touch-tone or voice
response systems.BIS, 3rd, sem2, 2012-2013 95
Electronic Banking
Electronic Banking Services• Types of Services, cont..
A few banking organizations are also beginning
to offer consumer products and services through
wireless devices, such as cellular telephones, pagers,
personal digital assistants (PDA), palmtop computers,
or other devices that can provide wireless access to
institution’s services, either directly or via the
Internet. BIS, 3rd, sem2, 2012-2013 96
Electronic Banking
Electronic Banking Services• Operations
There are a variety of operational methods for providing electronic banking services. Banking organizations may perform their core data processing internally but outsource the Internet banking activities to a different vendor or service provider.
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Electronic Banking
Electronic Banking Services• Operations, cont..
A dedicated workstation at the financial institution is often used to transmit transaction data files between the institution’s core processing system and the Internet application, and to allow the financial institution to update parameters and perform other maintenance activity.BIS, 3rd, sem2, 2012-2013 98
Electronic Banking
Electronic Banking Services
• Operations, cont…
Alternatively the Internet banking
service provider may interface directly with
the bank’s core processing service provider if
that function is also outsourced.
BIS, 3rd, sem2, 2012-2013 99
Electronic Banking
Electronic Banking Services
• Operations, cont..
In addition, many banking organizations now purchase Internet banking services from their primary core processing service provider, eliminating the need for external data transmissions.
BIS, 3rd, sem2, 2012-2013 100
Electronic Banking
Electronic Banking Services
• Operations, cont..
Even with this structure, the institution maintains a local workstation to provide access to customer information or perform other administrative and maintenance functions for the Internet banking system.
BIS, 3rd, sem2, 2012-2013 101
Electronic Banking
Electronic Banking Services
• Operations, cont..
Other institutions operate an electronic banking
system in their own computer facilities by purchasing
an “off-the-shelf” or “turnkey” electronic banking
software application from one of the vendors of such
software and installing the software on their own
system.BIS, 3rd, sem2, 2012-2013 102
Electronic Banking
Electronic Banking Services
• Operations, cont.
Choices in turnkey options vary from the
bank’s purchase and use of templates or modules,
where the bank chooses from a selection of standard
services, to more complex situations where the
software vendor designs and develops the electronic
banking software application to the bank’s
specifications. BIS, 3rd, sem2, 2012-2013 103
Electronic Banking
• E-banking offers vast opportunities, yet even less than one in three banks have an E-banking strategy in place.
• According to a study, less than 15 percent of banks with transactional websites will realize profits directly attributable to those sites.
BIS, 3rd, sem2, 2012-2013 105
Electronic Banking
• Hence, banks must recognize the seriousness of the challenge ahead and develop a strategy that will enable them to leverage the opportunities presented by the Internet.
• No single E-banking strategy is right for every banking company. But whether they adopt an offensive or a defensive posture, they must constantly re-evaluate their strategy.
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Electronic Banking
• In the fast-paced e-economy, banks have to keep up with the constantly evolving business models and technology innovations of the Internet space. Early e-business adopter like Wells Fargo not only entered the E-banking industry first but also showed flexibility to change as the market developed.
BIS, 3rd, sem2, 2012-2013 107
Electronic Banking
• The pressure is now building for all banks to develop sound e-business strategies that will attract and retain increasingly discriminating customers.
• The major problem with the banks, which have already invested huge amounts in their online initiatives, is that their online offerings remain unprofitable.
BIS, 3rd, sem2, 2012-2013 108
Electronic Banking
• Though banks have enrolled some existing customers in their online programs, they are not getting customers in large numbers. This has made banks wonder whether there is any value in the online channel. Just enrolling customers for online banking may not be sufficient until and unless they use the site actively.
BIS, 3rd, sem2, 2012-2013 109
Electronic Banking
• Banks must make efforts to increase their site usage by customers and effectively co-ordinate the online channel with branches and call centers. Then only they will be able to derive maximum value that includes cost reduction, cross-selling opportunities, and higher customer retention.
BIS, 3rd, sem2, 2012-2013 110
Electronic Banking
• Customers have some rational reasons for staying offline. Some of these reasons include:
usability features of the site,
concerns about security and
frequent complaints that signing up is complicated and time-consuming.
BIS, 3rd, sem2, 2012-2013 111
Electronic Banking
• Banks can solve these problems by refocusing investment on improving the site’s basic functionality and user-friendliness, and avoiding advanced features that most customers neither understand nor value.
BIS, 3rd, sem2, 2012-2013 112
Electronic Banking
• Developing advanced features that appeal to a relatively small numbers of customers, creates far less value than strengthening core capabilities and getting customers to use them. Banks must make efforts to familiarize customers with their sites and show them how easy and efficient the online channel is to use.
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Electronic Banking
• Integrating the online channel with the rest of the bank is another important issue that banks must focus upon. This is important because nearly all the value of the online channel is realized offline _ in cross sales completed in other channels and in cost reductions.
BIS, 3rd, sem2, 2012-2013 114
Electronic Banking
• An actively used online channel should also serve as a medium to sell banking services for the branch staff, the call center, and the relationship manager. Integrated channels working together are far more effective than a group of channels working without any coordination.
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• To facilitate this integration, banks must formulate paths that people in various customer segments are likely to take among the channels. The interactions in each channel can then be worked around these paths.
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• For example, a call center representative must work out which channel(s) the customer used before coming to her, and which channel(s) the customer is likely to visit next. Each channel must have entry and exit points that must welcome customers and then send to other channels. Hence, the overall goal of banks is to create a seamless multichannel experience.
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• On the other hand, those banks that are planning to build their online businesses will have to understand several strategic issues like do they have the right business model for E-banking? How should they price their E-banking products and services?
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• Bankers planning to move into E-banking have to explore different options, make investments and have to develop a variety of partnerships. They have to put their time and efforts to identify the best opportunities. In the case of traditional banks, if they are too aggressive in using price incentives to build their e-business, they risk the profitability of their traditional business.
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• However, if they do not offer sufficient price incentives for customers to bank online, their efforts to build a sound e- banking business may not fructify.
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• Banks have to be creative in rethinking organizational structures and management processes. Traditional banks that are conservative in nature may find it difficult to attract and retain online talent.
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• Moreover, getting people in the traditional business to help build an e-enterprise would not be an easy task. To make all this happen, requires a major revision of incentive systems, planning and budgeting processes, and management roles. Banks can exploit the opportunities provided by the Internet if they demonstrate courage, use their imagination, and take decisive action.BIS, 3rd, sem2, 2012-2013 122
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• While most of the banks have started focusing on E-banking activities, a new challenge in the form of mobile banking has emerged. M-Banking is both an additional opportunity for banks to offer their online services and an additional channel from which to access new customers and cross-sell to existing customers.
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• Rapidly changing lifestyles of customers and their demand for more speed and convenience has subdued the role of branch banking to a certain extent. With the proliferation of new technologies, disintermediation of traditional channels is being witnessed.
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• Banks can go beyond their traditional role as a channel for banking/financial services and can become providers of personalized information. They can successfully leverage m-banking to:
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• Provide personalized products and services to specific customers and thus increase customer loyalty.
• Exploit additional sources of revenue from subscriptions, transactions and third-party referrals.
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• M-Banking gives banks the opportunity to significantly expand their customer relationships provided they position themselves effectively. To leverage these opportunities, they must form structured alliances with service affiliates, and acquire competitive advantage in collecting, processing and deploying customer information.BIS, 3rd, sem2, 2012-2013 127
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CRM - A powerful Tool for Customers Relations
• Help to exploit sales potentials and maximize the value of the customer to the bank.
• CRM integrates various components of a business such as sales, marketing, IT and accounting.
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CRM - A powerful Tool for Customers Relations, cont..
• It will add customer loyalty to the business.
• Relatively new method in managing customer loyalty, previously used by retail businesses for many years
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CRM - A powerful Tool for Customers Relations, cont..
• The core objective of modern CRM methodology is to help business to use technology and human resource to gain abetter view of customer behavior
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Objective of CRM in BankMain objectives to implement CRM in
the business strategy are:• To simplify marketing and sales process• To make call centers more efficient• To provide better customer service• To discover new customers and increase
customer revenues• To cross sell products more effectively
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