IntroductionToebusiness

8/7/2019 IntroductionToebusiness

1/41

1

This presentation handout supports the Introduction to eBusiness

slide presentation.

Learning Outcomes

The objectives of this training module are to provide:

Overview of eBusiness

eBusiness Terms

Who uses eBusiness

Statistics on eBusiness

Examples and Benefits of eBusiness applications by Victorian businesses

Workshop Notes:

___________________________________________________________________________________

___________________________________________________________________________________

___________________________________________________________________________________

___________________________________________________________________________________

___________________________________________________________________________________

What is eBusiness?eBusiness presents a broader dimension of eCommerce as it represents the use of electronic technology,especially web and other network technology, for business.

eBusiness represents:

1. A range of online tools and processes that transform a companys value proposition by usingsophisticated data warehousing to target customers more effectively, networks to link companies withsuppliers, distributors and other business partners; and flexible organisational infrastructures thatadapt to change.

2. A way for companies to participate as part of a larger networked community of providers, eachbringing specialised skills and new levels of performance to an e-market place.

Notes on What is eBusiness?

Workshop Notes:

___________________________________________________________________________________

___________________________________________________________________________________

___________________________________________________________________________________

___________________________________________________________________________________

Introduction to E-Business


2/41

2

Useful eBusiness Terms

Business-to-Business (B2B)Interaction between businesses either in an established supply chain, or with trading partners. The ability toelectronically link your business with that of your suppliers could lead to faster restocking times, lower stocklevels, and lower costs. If you have been considering engaging in business-to-consumer e-commerce, givesome thought also to ways in which you could lower costs or increase your efficiency by engaging inbusiness-to-business e-commerce.

Business automation

A contact manager, job activity and job tracking system that allows fast and flexible communications with amobile workforce.

Content Management System

A software package that creates and maintains contenton a website by providing a set of tools for creating,editing and publishing the webpages and directories that makes up a website.

eCRM (electronic Customer Relationship Management)

An integrated sales, marketing and service strategy that is used to identify, attract and retain anorganisations customers through innovative Internet technology.

eMarketplace (electronic marketplace)

An online trading forum where companies buy and sell products and services using different trading andpurchasing mechanisms, including catalogues, auctions, reverse auctions, requests for quote (RFQ) andrequests for tender (RFT).

eProcurement (electronic procurement)

A business-to-business (B2B) purchasing system that offers electronic purchase order processing andenhanced administrative functions for buyers and suppliers.

Extranet

An intranet partially accessible to authorized outsiders. Whereas an intranet resides behind a firewall and isaccessible only to people who are members of the same company or organisation, an extranet providesvarious levels of accessibility to outsiders.

Intranet

A worldwide network of computers that facilitates data communication services such as remote login, filetransfer, electronic mail, newsgroups and the World Wide Web.

Local Area Network (LAN)

A network of computers communicating over short distances in restricted areas, such as a campus of auniversity. Many LANs have connections to larger networks.


3/41

3

M-CommerceThe use of a wireless terminal, such as a mobile phone or personal digital assistant (PDA), and a network to

access information and conduct transactions that result in the transfer of value.

Online networking

Uses Internet, intranet and extranet technology to collaborate amongst certain groups of users, such asemployees or partners.

Notes on Useful eBusiness Terms

Workshop Notes:

___________________________________________________________________________________

___________________________________________________________________________________

___________________________________________________________________________________

___________________________________________________________________________________

___________________________________________________________________________________

Who uses eBusiness?

71% access and use online cataloguesthat lists products/prices

69% pay for products and services

65% place orders for products andservices

51% receive payments for products andservices

45% take orders for products andservices

Source:Sensis/ Yellow Pages EBusiness report, July 2004

Notes on Who uses eBusiness?

Workshop Notes:

___________________________________________________________________________________

___________________________________________________________________________________

___________________________________________________________________________________

___________________________________________________________________________________

___________________________________________________________________________________


4/41

4

Which Industry sectors are Buying Over the Internet?

Connected toInternet

Look forInformation

PlaceOrders

Pay

All Business 86% 76% 56% 59%

Manufacturing 84% 74% 51% 54%

Building/Construction 78% 65% 48% 47%

Wholesale Trade 88% 75% 54% 55%

Retail Trade 77% 70% 57% 55%

Transport/Storage 86% 76% 48% 69%

Business Services 97% 89% 63% 74%

Finance and Insurance 96% 86% 71% 71%

Health/Community Services 89% 69% 74% 45%Personal Services 85% 73% 54% 56%

Hospitality 83% 72% 62% 61%

Base =All Businesses

Source:Sensis Business Index, Sweeney Research May 2004

Which Industry sectors are Selling Over the Internet?

Connected toInternet

Take Orders ReceivePayment

All Business 86% 39% 44%

Manufacturing 84% 36% 47%

Building/Construction 78% 23% 40%

Wholesale Trade 88% 46% 48%

Retail Trade 77% 42% 51%

Transport/Storage 86% 50% 43%

Business Services 97% 42% 49%

Finance and Insurance 96% 31% 36%

Health/Community Services 89% 26% 36%

Personal Services 85% 48% 36%Hospitality 83% 53% 32%

Base =All Businesses



5/41

5

Which types of Business customers use the Internet?

All Small & Medium SizeBusiness

Mainly Sell to

Mainly Sell to Total Sell to SmallBusiness

Medium

Business

Local Same city or town 60% 85% 62% 39%

Elsewhere in State 11% 55% 10% 15%

Interstate 21% 54% 20% 34%

Overseas 5% 36% 5% 6%

Base =Use eCommerce


How does Australias use of the Internet compare to overseas?84% of adult (16 years and over) persons in Australia had Internet access in the 3rd Quarter 2003,compared to:

89% in Sweden

81% in the US

80% in the UK

79% in the Netherlands

74% in Hong Kong

67% in Germany

63% in France

62% in Spain

60% in Italy

52% in Brazil

Australia is one of the leading countries in the world in terms of Internet infrastructure, penetration and use.

Australians are major adopters of Information Economy-enabling technologies such as the Internet,computers and mobile phones.

Source:Australian Federal Department of Communications, Industry, Technology and the Arts.


6/41

6

How has Australias use of the Internet changed?

June 2000 June 2003

Businesses with PCs 76% 83%

Businesses with Internet access 56% 71%

Businesses with website 16% 23%

Internet access by large businesses 95% 99%

Internet access by medium businesses 83% 91%

Internet access by small businesses 65% 81%

Internet access by very small bus. 50% 65%

Large businesses with website 68% 80%

Medium businesses with website 46% 51%

Small businesses with website 24% 33%Very small bus. with website 9% 15%

Businesses* receiving online orders 15% 19%

Businesses* ordering online 18% 39%

Bus.* accessing government services 44% 71%

E-commerce revenue AU$5.1billion

$24.3billion

*among businesses online.

Source:Australian Bureau of Statistics, Nielsen//NetRatings and US Census

Notes on Who uses eBusiness?

Workshop Notes:

___________________________________________________________________________________

___________________________________________________________________________________

___________________________________________________________________________________

___________________________________________________________________________________

___________________________________________________________________________________


7/41

7

Examples of eBusiness

Label Manufacturer Uses the Internet to increase export sales by allowing agents and distributorsfrom all over the world to see the latest designs, place orders and manage theiraccount.

Olive Farmer Listing of products on the website for sale as well as providing an onlineshopping facility for a network of other olive farms.

Restaurant No website is required to benefit from wireless technology and handheld digitalassistants taking orders from tables which are electronically sent to the kitchen.

Pottery Importer A content management system allows up to date products, pricing and gallery

events timetable to be published internally, reducing costs of external websitedevelopment.

RecruitmentConsultants

Implementation of an online process automated system using an ApplicationService Provider model to streamline job applications process.

Notes on Examples of eBusiness

Workshop Notes:

___________________________________________________________________________________

___________________________________________________________________________________

___________________________________________________________________________________

___________________________________________________________________________________

___________________________________________________________________________________


8/41

8

Examples of eBusiness

Farm MachineryDealer

Entering hundreds of agricultural machinery equipment online ensures stockavailability is more timely recorded across multiple dealer locations andmarketed more effectively to rural customers.

Wholesale DentalDistributor

Instant online ordering using handheld digital assistants for 24 salesrepresentatives provides greater efficiency in the supply chain and providesmanagement with a real time contact management tool.

Motorcycle TourismOperator

Using streaming video on a website to show not tellvisitors about the motorcycleservice being offered utilises the advantages offered by an increasing number ofbroadband internet connections.

Horse Transporter The Internet provides a critical document management system to keep ownersand trainers of horses flown to and from Melbourne informed of their progress.The Intranet provides a way for all offices to share information and reducingcommunication costs.

Building Company The use of an electronic customer relationship management tool assists in thejob scheduling, workflow process and accountability of projects in the buildingindustry.

Notes on Examples of eBusiness

Workshop Notes:

___________________________________________________________________________________

___________________________________________________________________________________

___________________________________________________________________________________

___________________________________________________________________________________

___________________________________________________________________________________


9/41


10/41

10

Web Hosting

Most Australian websites are hosted on a dedicated web server at the external web hosting providerslocation. The benefits of a web hosting provider include:

Domain Name Services including website name registration, website forwarding, providing multipleemail accounts and domain name protection services.

Storage and Backup of the website and files including databases and email lists.

Server Speedand Reliability of the website is important as people are accessing your businesswebsite from computers around the world. It is important that a website is always accessible and remainsuninterrupted by power failures and server faults.

Management Information Web hosting companies should provide access to real-time website trafficstatistics which will allow your business to evaluate and monitor the number of visitors, time spentviewing and which country the visitors originate from.

Security Webhosting companies have systems and processes in place which reduce the risk of asecurity breach on your website (such as viruses and hackers).

Technical Support Time is money and hence you should check to ensure that your web hostingcompany has a dedicated technical support team to answer questions and solve technical problems via atelephone and or an email support centre.

Advanced Solutions To provide a full range of solutions including managed services across variousoffice locations, shopping cart e-commerce technology, secure servers, content management systems,database hostingand wireless services.

Pricing - Website hosting is a competitive industry and fees typically range from $20 to $100 per month.The difference in price relates to the amount of Megabyte Disk Space, the monthly data transfer permonth, number of email addresses and whether there is e-commerce and database connectivity.

Notes on Web Hosting

Workshop Notes:

___________________________________________________________________________________

___________________________________________________________________________________

___________________________________________________________________________________

___________________________________________________________________________________

___________________________________________________________________________________


11/41

11

Selecting an Internet Service Provider

There are over 500 Internet Service Providers (ISP) in Australia. Before selecting your Internet ServiceProvider, be aware that they differ on location, price, support and additional services.

Location Often rural dial-up customers need to consider long distance call rates and whether theInternet Service Provider has broadband in your business area.

Price - The following websites allow you to type in the telephone number and it will return a list of InternetService Providers who provide broadband access in that area along with pricing information

www.ispchoice.com.au

www.whirlpool.net.au

Internet Tool Kit - The Australian Communications Authority has developed a "tool kit" athttp://www.toolkit.aca.gov.au which provides comprehensive information outlining important factors toconsider when shopping for an Internet service and questions to ask Internet service providers (ISPs).

Notes on Selecting an Internet Service Provider

Workshop Notes:

___________________________________________________________________________________

___________________________________________________________________________________

___________________________________________________________________________________

___________________________________________________________________________________

___________________________________________________________________________________


12/41

12

Broadband Internet Access

There are several types of connection for businesses to subscribe to:

Narrowband - a narrowband connection to the Internet through a telephone line, normally through a 28or 56 kilobytes per second speed modem.

ISDN (Integrated Services Digital Network) - a system of digital phone connections that allows one line tohandle several applications at once (e.g. videoconferencing, facsimile, telephone and computer).

Broadband - A permanent, high-speed connection between your computer and an ISP that does not usea dedicated telephone line. Broadband means a high-speed Internet connection that is, at the very least128kbps, which is almost three times the speed of a narrowband 56kbps dial-up connection. Mostbroadband services are available at speeds of 256kbps, 512kbps, 1500kbps and even faster. There arethree main technologies used to deliver broadband:

Cable The television cable network is used to connect to the Internet.

ADSL The existing telephone wires are used to send information to/ from your computer and ISP

Satellite - A satellite dish sends and receives signals to your computer.

Who uses Broadband?

How do you currently access theInternet?

Total Small

Business

MediumBusiness

Dial up Modem 55% 58% 20%

Cable Modem 14% 14% 18%ADSL 10% 9% 15%

Broadband 8% 7% 11%

ISDN 7% 7% 21%

Digital Subscriber Line 4% 4% 9%

Wireless connection 1% - 1%

Satellite 1% 1% 1%

Cant say 1% 3% 8%

Base = Businesses connected to the Internet


Workshop Notes:

_______________________________________________________________________________________

_______________________________________________________________________________________

_______________________________________________________________________________________


13/41


14/41

14

Internet Security

Internet Security Software software which combines antivirus and firewall software and often includes anti-spam and other security and productivity features.

Anti-Virus Software Over 50,000 computer viruses are registered globally and they spread typically byemail attachments, Internet downloads, shared disks, CD-ROMs and other sources. In order to protect yourcomputer and the information held on it, anti-virus software is recommended. A virus is any computerprogram written to damage computer systems (e.g. erases your vital files).

Firewall - A Firewall prevents unauthorized access to or from a private network by examining each messageand blocking those that do not meet the specified security criteria.

Firewalls can provide many levels of security. Firewall use does require some skill, so seek technical advice to set up your firewall to suit your needs

see your ISP or computer retailer. Some firewall software comes in shrink-wrapped boxes and can be purchased from a computer retailer or

software dealer. Other firewall software can be directly downloaded from the World Wide Web. Set yourfirewall to update itself automatically.

Trusting the Internet: A Small Business Guide to E-security

The National Office for the Information Economy has published a guide, Trusting the Internet: A Small BusinessGuide to E-security, which can help you understand the key issues of Internet security http://www2.dcita.gov.au/ie/publications/2002/07/trusting_the_net

This report overviews critical questions that every Australian business with an online presence need to know:

How do I set up a secure website?

How do I tell if I'm completing a secure transaction?

How do I protect my company from viruses?

How do I make sure my passwords are appropriate and secure?

How do I make sure my PC is secure?

How do I choose the best authentication system?

Notes on Internet Security

Workshop Notes:

___________________________________________________________________________________

___________________________________________________________________________________

___________________________________________________________________________________

___________________________________________________________________________________


15/41

15

Privacy Policy

The Privacy Amendment (Private Sector) Act 2000

In December 2000 the Privacy Amendment (Private Sector) Act was passed through Federal Parliament.This amends the Privacy Act1988 which previously applied primarily to federal public sector agencies.

Under the changes to the Privacy Act, a set of National Privacy Principles (NPPs), which describe minimumstandards for the handling of personal information apply to the private sector. These principles relate to themanner in which personal information may be collected and used, and to whom it may be disclosed. TheNPPs require that businesses which use personal information be open about their information practices andmaintain the accuracy of the personal information. As a result of the amendments, the Privacy Actapplies tothe private sector as well as the public sector.

The amendments generally do not apply to businesses with an annual turnover of $3 million or less, unless

those businesses choose to 'opt-in' or conduct particular types of business.

You should conduct your own detailed research and/or seek legal advice before finalising a privacy policy.These notes are for your general guidance only.

More information is available at www.privacy.gov.au

Privacy Policy - While every Australian organisation website will need a slightly different privacy policy, thefollowing elements are important to include:

Legal statement - A statement that the website will not collect or disclose any personal informationwithout first obtaining user approval, unless required to do so to satisfy legal obligation

Data sharing - An outline of the circumstances under which the personal data might be shared withothers

Log files - Information on what log file information (such as the addresses of visitors to the website)is stored by the website

Email addresses - Provisions regarding how email addresses submitted to the website will be used.

Notes on Privacy Policy

Workshop Notes:

___________________________________________________________________________________

___________________________________________________________________________________

______________________________________________________________________________________________________________________________________________________________________


16/41

16

The Spam Act 2003

Spam Act 2003

The Spam Act says that unsolicited commercial electronic messagesare prohibited and that commercialemail messages must not be sent without:

- The consent of the recipient

- Accurate information about the sender of the message; and

- A functional way for the messages recipients to indicate that they do not wish to receive such

messages in the future that they wish to unsubscribe.

Messages covered include email, short message service (SMS) and Instant Messaging (IM).

If a business is found to have breached the Act, a court may impose a penalty of up to $220,000 for a singledays contravention.

Spam Act 2003: A practical guide for business

The Australian Government has prepared this guide to provide practical information about the Spam Act andguidance on steps that may be taken to assist in complying with it. The report can be downloaded fromhttp://www.aca.gov.au/consumer_info/spam/informationforbusiness.htm

Notes on Spam Act 2003

Workshop Notes:

___________________________________________________________________________________

______________________________________________________________________________________________________________________________________________________________________

___________________________________________________________________________________

___________________________________________________________________________________


17/41

17

This presentation handout supports the Smart Tips and DemystifyingeBusiness Myths slide presentation.

Learning Outcomes

The objectives of this training module are to provide insights and smart tips and demystifying eBusinessmyths on:

Developing your website using Content Management Systems

Supply Chain Management and Online Process Automation

Online and eMarketing

Buying and Selling online

Broadband Infrastructure Requirements

Approaching Export

Wireless and Mobile Applications

Knowledge Management (Using Intranets)

Electronic Customer Relationship Management

eSecurity and Trust

Workshop Notes:

___________________________________________________________________________________

___________________________________________________________________________________

___________________________________________________________________________________

___________________________________________________________________________________

___________________________________________________________________________________

Smart Tips and Demystifying eBusiness Myths


18/41

18

Developing your Website (Content Management Systems)

Utilize your existing website in Content Management System

By implementing a content management system, you may wish to move your existing website content intothe new system. Although a content management system offers a template for your website, be sure to useyour existing content, images, pictures and files. You dont have to start afresh and develop completely newmaterials!

Avoid high external rates for content changes

By implementing a content management system, you can remove the higher costs of simple updates to yourwebsite that external contractors or web developers can charge. Instead, the content management systemwill allow you or a member of your organisation to enter changes into a friendly interface avoiding the need tounderstand how to use website publishing programs.

REFERENCE CASE STUDIES REFERENCE eNOTESNorthcote Pottery www.northcotepottery.com.au eNote 5: Website Development

Anglesea Online www.anglesea-online.com.au eNote 7: Writing for the Web

Workshop Notes:

___________________________________________________________________________________

Supply Chain Management/ Online Process Automation

Remove steps in repetitive processes!Internet technology can remove repetitive steps in a process or create more time/cost effective way toachieve a repeated task. This can be as simple as creating web based forms that initiate another task orproduces a report or automatic calculations of payments to more complex applications involving onlineinventory, tracking and workflow management capabilities.

Incorporate customers and suppliers access in the design

Supply chain management systems typically allow clients access to your manufacturing process, stockcontrol, warehousing/logistics or distribution process in order to make the supply of stock or service moreefficient. Be sure to design your system with customers feedback not only in the design phase but throughoutthe development period. Gaining feedback is very important to meet the needs of your customers andsuppliers.

REFERENCE CASE STUDIESSupply Chain Management Online Process Automation

Rocket www.rocket.com.au Hallis www.hallis.com.au

Sundowner Motor Inns www.sundownermotorinns.com.au AUR Food Right Supermarkets

Workshop Notes:

___________________________________________________________________________________

___________________________________________________________________________________


19/41

19

eMarketing

Search Engines

Increasingly, small and medium sized businesses are advertising on Internet search engines by purchasingkeywords which relate to their business product or service. When people type these key words (forexample, plumber, car dealer, newsagent, etc) into a search engine, such as www.yahoo.com.au orsearch.ninemsn.com.au, the return list of results will feature the business who sponsored or paid for thatkeyword higher in the results ranking!

Email Marketing is simple

A simple and cost effective method of promoting your online business is to collect your client email addressesby asking them to join or opt in to an email newsletter. Email newsletters are written very easily and thecomplete list of contacts can be sent using a standard email program by creating lists that segments of your

database belong to.

REFERENCE CASE STUDIES REFERENCE eNOTESStuck On You www.stuckonyou.biz eNote 9: E-Commerce Marketing

MWT Australia www.mwtaustralia.com eNote 10: Making Search Engines work

Workshop Notes:

___________________________________________________________________________________

___________________________________________________________________________________

Buying and Selling Online

Clearly state Warranty and Refund policies

With more businesses now selling their products and services securely online by accepting online credit cardtransactions, a smart tip is to ensure that your terms and conditions are clearly displayed on the website andcomply with all Australian federal, state and territory laws. Similarly, warranty and refund policies areimportant to online shoppers, particularly those who are buying from overseas and require this information.

Look for Testimonials and Customer Service email

To provide a level of comfort the organisation you are buying from online is going to fulfill your online order toyour satisfaction, look for a customer feedback or written testimonials on the website. Furthermore, you maysend an email requesting further information which will test the level of customer service offered which can

be very important following the purchase if you need service and other information!

REFERENCE CASE STUDIES REFERENCE eNOTESThe Coffee Company www.coffeecompany.com.au eNote 12: Selling Online

Clearstream Olive Farm www.clearstreamolives.com eNote 13: Buying Online

Workshop Notes:

___________________________________________________________________________________

___________________________________________________________________________________


20/41

20

Broadband Infrastructure Requirements

Demonstrate your business with streaming video

The reduction in price of broadband means that more Internet users can easily download streaming videoclips on websites. To increase the number of lookers to bookers on your website, you may provide astreaming video clip of your business product being demonstrated. Similarly, services are intangible and hardto demonstrate. Therefore, streaming video can show your services being consumed and people can seeyour service easily via their broadband connection.

Reduced broadband prices

With monthly broadband Internet access falling below the $30 per month mark, be sure to check on theavailability of it in your area. In order to upgrade from a dial-up Internet connection, you will most likely onlyneed a broadband or satellite modem. Many of the Internet Service Providers subsidise the costs of the

upgraded modem into monthly payments so there is no upfront cost for your business to bear.

REFERENCE CASE STUDIES REFERENCE eNOTESHD Chauffeur Rides www.harleyrides.com.au eNote 3: Setting up on the Internet

Hanging Rock Winery www.hangingrock.com.au eNote 7: Make Search Engines work

Workshop Notes:

___________________________________________________________________________________

___________________________________________________________________________________

Approaching Export

Provide access to a currency converter

If you are selling your products to overseas customers from your website, you may wish to provide thecurrency of the $ symbol as overseas customers may think it is a different currency to Australian dollars. Youmay wish to provide a link to a currency converter to assist international visitors to your website in calculatingthe figure in their own currency before buying.

Tracking for Fulfillment

Most of the international courier and logistics companies such as DHL (www.dhl.com), TNT (www.tnt.com)and Federal Express (www.fedex.com) provide a tracking number that people who purchase your productonline can enter via their website to see exactly where their product is geographically whilst in transit. This

service provides customers with an added degree of trust and will assist in your business approaching exportsales.

REFERENCE CASE STUDIES REFERENCE eNOTESStuck On You www.stuckonyou.biz eNote 12: Selling Online

Clearstream Olive Farm www.clearstreamolives.com eNote 13: Buying Online

Workshop Notes:

__________________________________________________________________________________


21/41

21


SMS is a simple mobile application

The Short Messaging Service (SMS) has in recent years experienced explosive growth as a form of businesscommunications. The 160 character text messages that are on average charged by telecommunicationscarriers at $0.25 cents each, can allow you to send out reminders to clients about payments, forms to lodge,upcoming events as well as staff reminders, instructions and memos!

Wireless Devices increase customer time

The introduction of personal digital assistants which are handheld devices that hold customer and productdetails has allowed businesses to increase productivity and sales where staff are out of the office and in frontof customers. Being able to process customer orders, record stock inventories or customer service reportswhen in the field or at a clients premises has provided increased sales for many Australian businesses.

REFERENCE CASE STUDIES REFERENCE eNOTESIvoclar Vivadent www.ivoclarvivadent.com.au eNote 19: Telecommunications

Paesano Restaurant

Workshop Notes:

___________________________________________________________________________________

___________________________________________________________________________________

Knowledge Management (Using Intranets)

Intranets bring together branch offices

Intranets use Internet technology to provide an internal network for an organisation. Intranets allow branchoffices and remote users to access information such as staff news, company policies, internal job vacancies,footy tipping scores and internal telephone directories. Many companies now use an Intranet website - similarto a staff notice board, except it is online!

Intranets help workflow

Intranets can reduce the time spent looking for internal information, assist in a more efficient workflow anddocumentation process. It allows your organisational members to create online procedures that can minimizeprinting and faxing or other paper based manual processes.

REFERENCE CASE STUDIES REFERENCE eNOTESInternational Racehorse Transport www.flyirt.com eNote 11: Web Portals

eNote 18: Application Service Providers

Workshop Notes:

___________________________________________________________________________________

___________________________________________________________________________________


22/41

22


eCRM is not costly

Many small and medium sized businesses still keep their customer details and works or progress reports inspreadsheets and equally believe that customer relationship management software is prohibitively expensive.Software packages such as ACT (www.acttoday.com.au), Goldmine and Maximizer (www.maximizer.com.au)allow you to import customer lists from spreadsheets and increases the functionality to help you bettermanage your business.

Attend User Groups

Most of the electronic customer relationship management software companies in Australia hold regularmonthly meetings that are free to attend. They provide businesses with the opportunity to see demonstrationsof software, hear from other businesses on how they utilise the software to enhance their client contact

management and understand how to construct groups as well as generate management reports.

REFERENCE CASE STUDIESMcKenzie Consulting www.mckenzie-group.com.au

Networx Events www.networxevents.com.au

Workshop Notes:

___________________________________________________________________________________

___________________________________________________________________________________

eSecurity and Trust

Keep your Anti-Virus Software current

Unlike most software packages that you purchase for your business, anti-virus software needs constantupdating. With the increases in computer viruses, most anti-virus software vendors are now including onlineupdates that are automatically downloaded from their server to your computer when they become available.Prior to purchasing anti-virus software for your business, be sure to check updates are included!

Website Privacy Polices

If you are collecting details from visitors to your website, it is important to clearly display on your website aprivacy policy. There are various websites that will help you construct a privacy policy which you may wish topost on your website. For more information, please visit www.privacy.gov.au

REFERENCE CASE STUDIES REFERENCE eNOTESNetworx Events www.networxevents.com.au eNote 16: Security

Workshop Notes:

___________________________________________________________________________________

___________________________________________________________________________________


23/41

23

This presentation handout supports the Understanding eBusinessCosts slide presentation.

So whats it all about?

This guide to Understanding eBusiness Costs can be used in conjunction with the Do it Yourself eBusinessAnalysis section of these training materials. It will assist you provide an indication of the various costs thatmight be incurred in buying e-commerce and eBusiness related products and services, to develop and extendyour online initiative. Note that the costs given are only estimates, and while as accurate as possible, maynot reflect the prices you actually pay. Prices were current at the time of compilation in August, 2004. Be sureto check for current prices whilst planning your eBusiness initiatives.

Learning Outcomes

The objectives of this training module are to provide insights and approximate cost guides for:

Establishment and Start up costs

Developing your website using Content Management Systems

Operating Costs

Buying and Selling online

Security Internet Software



Online Advertising and eMarketing

Workshop Notes:

___________________________________________________________________________________

___________________________________________________________________________________

___________________________________________________________________________________

___________________________________________________________________________________

___________________________________________________________________________________

Understanding eBusiness Costs


24/41

24

Establishment and Start Up Costs*

*Prices were current at the time of compilation in August 2004. Be sure to check for current prices whilstplanning your eBusiness initiatives.

Computer, modem (often internal), printer andscanner (recommended)*

Software:

o Word processor

o Web browser, e-mail software

Telecommunications - extra telephone line

Dial up account with ISP, 1 e-mail address

Broadband account with ISP, 1 e-mail address

Domain name (www.yourbusiness.com.au)

Domain name (www.youbusiness.com)

Website hosting at ISP:

o 25 Megabyte Disk Space

o 2 Gigabyte traffic per month

o 1 mailbox

o SSL Access/ Database access

o Detailed site statistics

$2,000 - $3,000

$300 - $500

Free, usually included with computer

$200

$19.95 upwards per month

$30.00 upwards per month

From $66 to $140 for 2 year registration

From US$9 for 1year registration

$25 upwards per month

* Costs indicated are based on new goods. Good second hand equipment may be sourced, however thisshould only be done in consultation with an experienced computer user or technician.

REFERENCE eNOTESeNote 1: Setting up on the Internet eNote 3: Opportunities to Save Money

eNote 2: Finding Information on the Web eNote 4: Web Addresses explained

Workshop Notes:

___________________________________________________________________________________

___________________________________________________________________________________

___________________________________________________________________________________

___________________________________________________________________________________

___________________________________________________________________________________


25/41

25

Developing your Website*


Website development:

o DIY package (e.g. Frontpage 2000)

o By professional website developer

Hosted website solution (pre-built, template-driven websites that allow you to control yourown content)

Training - each basic course per person

$200

$500 - $10,000 depending on functionality

$400 -$900 per annum

$100 -$300

REFERENCE eNOTESeNote 5: Website Development eNote 6: Essential Website Information

eNote 7: Writing for the Web

Workshop Notes:

___________________________________________________________________________________

___________________________________________________________________________________

Operating Costs*


ISP fees (for e-mail and web surfing, oftenincludes some hosting allocation for a website)

Telephone line rental and calls

Web site:

o Hosting by ISP

o Maintenance & upgrade by developer

Computers & software

o Maintenance & support

o Training (per course per person)

o Administration (staff time cost)

$120 - $500 per annum depending on usage

$320 (based on 2 local calls per working day)

$350 - $450 per annum

$50 - $200 per hour

$50 - $200 per hour

$100 - $300

1 - 2 hours per week for one person

REFERENCE eNOTESeNote1: Setting up on the Internet


26/41

26

Workshop Notes:

___________________________________________________________________________________

___________________________________________________________________________________

___________________________________________________________________________________

___________________________________________________________________________________

___________________________________________________________________________________

E-Commerce - Secure Selling Online*


Online shopping cart and e-commerce merchanttechnology

Online credit card payment processing:

o Bank Internet merchant fees

o Credit card payment approval & processing(bank or gateway provider)

From $200 for a off the shelfsoftware system to

$1,000 to $3,000 for an outsourced system,there is a monthly fee, set-up fee and ortransaction fee depending on the provider.

From 4% of online revenue

From 2-4% of online revenue, depending onvolume of transactions

REFERENCE eNOTESeNote 12: Selling Online

eNote 14: Online Credit Card Facilities - FAQ

Workshop Notes:

___________________________________________________________________________________

___________________________________________________________________________________

___________________________________________________________________________________

___________________________________________________________________________________

___________________________________________________________________________________


27/41

27

Security Internet Software*


Antivirus 1 user licence of Norton AntiVirus

Antivirus 5 user licence

Firewalls:

All in one ADSL Modem/Firewall Router

ADSL Wireless 11g Firewall/Router

From $100

From $225

From $400

From $250

From $350

REFERENCE eNOTESeNote 16: Security

Workshop Notes:

___________________________________________________________________________________

___________________________________________________________________________________

Electronic Customer Relationship Management*

*Prices were current at the time of compilation in August 2004. Be sure to check for current prices whilst

planning your eBusiness initiatives.

Contact Management Solution software 1 userlicence of ACT or Goldmine

Antivirus 6 user licence

Quickbooks or MYOB Link to ACT

ACT for Palm Operating System

CRM which integrates with Microsoft Office 1user to 5 user licence

From $250

From $1250

$320 to $370

$75

$225 to $1850

REFERENCE eNOTESeNote 18: Applications Service Providers

Workshop Notes:

___________________________________________________________________________________

___________________________________________________________________________________

___________________________________________________________________________________

___________________________________________________________________________________


28/41

28

Wireless and Mobile Applications Costs*


SMS Campaign Manager 1 user licence ofBond Wireless

SMS to Email Infrastructure software From $400

From $5,000

REFERENCE eNOTESeNote 19: Telecommunications

Workshop Notes:

___________________________________________________________________________________

___________________________________________________________________________________

___________________________________________________________________________________

___________________________________________________________________________________

___________________________________________________________________________________

eMarketing Costs*


Search Engine Marketing

Search engines charge for keyword advertising

Search Engine Optimisation employing arange of technical techniques to ensure yourwebsite is found ahead of your competitors.

Prices vary depending on the traffic to a website,

agencies commissions and positioning of theadvertisements. Please note that some websitesrequire a minimum monthly spend.

From $0.01 cent per word upwards

$60 per hour or a flat fee for bulk listings tosearch engines for $200

REFERENCE eNOTESeNote 10: Make Search Engines Work for your website

Workshop Notes:

___________________________________________________________________________________

___________________________________________________________________________________


29/41

29

eMarketing Costs*


Online Advertising

Many websites accept paid advertising, on any of aflat, per impression (view) or per click basis.Advertisements can be plain text, banners, buttonsor pop-ups.

Cost per Thousand (CPM)

Cost per Thousand (Roman M) impressions (views)is the price paid by advertisers to a website todisplay a banner advertisement one thousandtimes.

The average CPM is approximately $15 to $35

Cost per Click (CPC)

The price paid by advertisers to acquire a singlecustomer and occurs when a user clicks on anadvertisement and is transferred to theorganisations website.

The average CPC is approximately $1 to $3.

Cost per lead or sale

New technology allows a click on an advertisementto be traced back to the originating website.Instead of earnings based on the impression orclick, advertising hosts are paid if that referralresults in an appointment or sale.

Sponsorship

Flat fee Approximately $100 to $10,000 permonth, depending on the type and popularity ofwebsite or email.

Email Marketing

Costs for permission email marketing varydepending on the email format and size, thequantity of recipients, the level of reporting and

additional services required.

From $10 to $100 per month set-up fee or costper month fee

Set up fees: approximately $250 to $500

Price per email

From approximately $0.04 to $0.25 for a list ofup to 1,000 subscribers

Price per email: Approximately $0.01 to $0.15for a list of up to 40,000 subscribers

Email software programs can be downloadedfrom the Internet from approximately $100


30/41

30

This presentation handout supports the Do it Yourself eBusiness

investment Analysis slide presentation.

This Do It YourselfeBusiness analysis will help you complete aBusiness Case for your E-commerce and eBusiness idea.

Learning OutcomesThe objectives of this training module are to provide:

1. Outline of your E-commerce idea - create a reference point to keep you focused on your venturesproposed boundaries.

2. Strengths, Weaknesses, Opportunities and Threats (SWOT) Assessment Your view of theintangible value that your project will bring.

3. Financial Assessment Estimates of the costs and financial benefits of the idea. The FinancialAssessment will give you a clear picture of the impact venture, but consider a go / no-go decision basedon the entire business case that you have put together.

Note Figures and cost ideas discussed in the workshop session are all estimates.

In order to ensure your eBusiness investment analysis is accurate before making a decision, we recommendyou redo this business case exercise with more accurate and complete information in all three sections,based on your own research, and using the following tools.

To assist you, please also refer to:

Understanding eBusiness Costs handout: summarises costs of E-Commerce and eBusiness relatedproducts and services

Financial Assessment is available in using the Quick Reckoner - a Microsoft Excel spreadsheetavailable from www.mmv.vic.gov.au. Simply type in your own data and it will self-calculate. You canreuse the spreadsheet to redo the Business Case exercise, to assess any other E-commerce ideas youhave or to evaluate actual results on an annual basis.

eNotes: contains information to support you through the action planning process

Case Studies: contain information on e-commerce and eBusiness technology implementations, thebenefits, costs, management insights and results as well as a return on investment. Further information isavailable at www.mmv.vic.gov.au/casestudies

We encourage you to seek professional advice in completing any business case, whether they arepreliminary or financial. Use the references inthe eNote: eBusiness Assistanceor contact Certified PractisingAccountants (CPA Australia) to find your local CPA representative, online at www.cpaaustralia.com.au or call(03) 9606 9606. Professionals can advise you on cost-benefit analysis, amortization and lease versuspurchase options.

Do it Yourself eBusiness Investment Analysis


31/41

31

1. Project Outline Assessment

What is your E-Commerce or eBusiness idea?

___________________________________________________________________________________

___________________________________________________________________________________

___________________________________________________________________________________

___________________________________________________________________________________

Describe your E-Commerce or eBusiness project?

How far do you want to go with E-commerce at this stage?

___________________________________________________________________________________

___________________________________________________________________________________

___________________________________________________________________________________

___________________________________________________________________________________

Examples:

I want to use email to communicate with customers I want to set up a basic website about my business I want to revise my website and keep it frequently updated I want to sell my products online

I want to automate internal processes and reduce administrative processes and paper work usingtechnology

I want to increase efficiencies in my supply chain with suppliers

I want to upgrade to broadband to send and receive files quickly I want to improve my management of customers I want to increase the online marketing and advertising to make my business more visible online

I want to protect my website from computer virus and increase security measures

What are the key things you need to do?

- Think about the equipment, hardware, software, resources and training you require.___________________________________________________________________________________

___________________________________________________________________________________

___________________________________________________________________________________

___________________________________________________________________________________

___________________________________________________________________________________


32/41

32

2. Basic Benefit Assessment (Strengths and Weaknesses)

What overall benefits would you expect from investing in E-Commerce or eBusiness?

___________________________________________________________________________________

___________________________________________________________________________________

___________________________________________________________________________________

___________________________________________________________________________________

Questions to consider:

How will e-commerce and eBusiness develop the business?

o New customers or exports

Improve / impact on how you do business?

o Reduce costso Faster, better communications with suppliers

o Access to information that helps you improve your service / understanding of competitors

What new skills are required?

Assistance outside the business?

o (Internet support, web developer, application service provider, broadband)

Marketing benefits?

o Information available on website means sales staff can concentrate on selling

o Cheaper ways of marketing to more potential customers

o Updated product and price lists

Other benefits?

o Better use of staff and their skills

o Time saved when using email and Internet rather than other means to do business

o Time saved when not traveling to client sites

Impact on operating and capital expenditure

o Impact on cash flow

o Outsourcing policy

Any downsides?

o Itll take too much of my time

o Im worried about the security of information on my computers

o Will I be able to service my customers just as well as I do now?


33/41

33

Opportunity Assessment

How will this project help the business to achieve its aims and develop further?

___________________________________________________________________________________

___________________________________________________________________________________

___________________________________________________________________________________

___________________________________________________________________________________

___________________________________________________________________________________

___________________________________________________________________________________


How will this help us achieve our business objectives?o Extend my customer base outside Victoriao Expand range of services I can offer to customers at low costo Increase order processing timeso Increase workflow and speed of product delivery

Help with new business opportunities?o Maybe I can offer online services now, rather than always deal with customers face-to-

faceo I can replace offline process with online processes (i.e. online workflow automation,

ordering and banking)

Any constraints?

o Consider whether your suppliers actually have, e.g. email, broadband, supply chainso Find out whether you can actually get good technical support locally


34/41

34

Threats and Competitor Assessment

Assess the threats from undertaking this project and how you will overcome them?

___________________________________________________________________________________

___________________________________________________________________________________

___________________________________________________________________________________

___________________________________________________________________________________

___________________________________________________________________________________


What are the three main threats to your business?

o Customers finding similar products on another (even foreign) website, and buying from themo New start-up home businesses - low cost to do it, and they can undercut youo Not getting an early return on investment / Not finding staff with the right skills

How will E-commerce and eBusiness help to overcome these threats?o Youll be able to offer products to a wider marketo Reduce dependency on your current local customer baseo Increase efficiencies of stock ordering, online process automation, faster processing timeso Providing lots of information and advice on your website will help build customer loyaltyo Increasing functionality for external suppliers and distributors via access to your websiteo Reduce investment risk by doing project in several less costly stages - seeing some return at

each stage before starting next.

Questions to consider about competitors:

What are your competitors doing already in E-commerce?

What E-commerce and eBusiness are they doing?

o Website

o Online product catalogue and frequent updates

o Support their agents with a restricted part of their website

o Online marketing and advertising

Are these E-commerce and eBusiness initiatives impacting your business?

o Customers prefer to look at product information online

o They can keep their online product catalogues up to date

o Customers like the customer services theyre getting from a website


35/41

35

3. Financial AssessmentThe following financial tables are for written completion during the workshop. During the workshop, you maywish to complete the shaded boxes:

Individual costs

Totals

The Quick Reckoner Microsoft Excel version of these spreadsheets is available for you to work throughoutside of this workshop.

3.1 Start Up CostsEquipment $

Computer(s), printer etc. ..

Software:(1)

(2)

..

..

Telecommunications(e.g. new dedicated phone line / ISDN/ADSL Line)

..

Website

Domain name ..

Site storage at ISP - set up costs ..

Design and develop website:

- external developer

- internal development

..

..

Training

Staff training ..

Office Expenses

Furniture etc. ..

Changes to business processes ..

Marketing of E-commerce (one-off expenses)

Changes to stationery, catalogues,brochures, packaging etc.

..

Advertising & promotion ..

Total Start Up Costs


36/41

36

3.2 Revenue from E-commerce Project (Annual)E-commerce Revenue $

From website sales ..

Indirect(e.g. from website promotion,

e.g. sales from web introduction,

e.g. sale of software developed,

E.g. training other businesses, etc.)

..

Less Cost of Goods Sold(E.g. costs of supplies, packaging, and deliverycosts, etc.)

.. ..

.. ..

Gross Revenue from E-commerce

3.3 Cost savings from E-commerce (Annual)Cost Savings from E-commerce $

Marketing materials:

- printing

- advertising

..

..

Communications with customers,suppliers, agents etc.:

- Postage

- Telephone, fax

- Travel

- Meetings

..

..

..

..

Business improvements, efficiencies,productivity - staff time savings:

- hours @ $ per hour

- hours @ $ per hour

- Other staff savings

..

..

..

Use of online financial services:

- banking

- customer payments

- supplier payments

- payroll

- other (e.g. reduced bank visits)

..

..

..

..

..

Other: .. ..

Total Cost Savings from E-commerce


37/41

37

3.4 E-commerce Operating Costs (Annual)

Operating Costs from E-commerce $Internet communications:

- ISP fees

- telephone calls

..

..

Website:

- hosting by ISP

- site maintenance & updates:

by staff

by external resources

- other

..

..

..

..

Computers and software:

- maintenance

- software licenses & upgrades

- training

- administration

- other

..

..

..

..

..

E-commerce marketing & promotion:

- advertising

- email Newsletter

- new customer services

..

..

..

Total Operating Costs from E-commerce

NET REVENUE FROM E-COMMERCE PROJECT:Gross Revenue from E-commerce +Total Cost Savings from E-commerce -Total Operating Costs from E-commerce ..

NET REVENUE FROM E-COMMERCE PROJECTWRITING OFF START UP COSTS IN FIRST YEAR:Gross Revenue from E-commerce +Total Cost Savings from E-commerce -Total Operating Costs from E-commerce -Total Start Up Costs ..

AMORTISATION Over Four Years ..


38/41

38

4. Overall Assessment

Consider which box fits you!

Not for us at thisstage!

Not sure, wellstay open to

options though.

Looks good, butwe need to do

some more workbefore we are

sure.

It will give ussignificant

benefits, we willstart as soon as

possible.

The only way togo - we starttomorrow!

Workshop Notes:

___________________________________________________________________________________

___________________________________________________________________________________

___________________________________________________________________________________

___________________________________________________________________________________

___________________________________________________________________________________

___________________________________________________________________________________


39/41

39

Find more about eCommerce and eBusiness from these websites:

Government Information Agencies

Victorian Government

VictoriaOnlineVictoriaOnline is the entry point to online services provided by the Victorian State and Local Governments,along with Federal Government.www.vic.gov.au

The Business Channel

Business Channel is an electronic information service designed by the Victorian Government to bringgovernment agencies and services within easy reach of the business community 24 hours a day, seven days aweek.

www.business.channel.vic.gov.au

Consumer Affairs Victoria

Consumer Affairs Victoria is the Victorian Government agency responsible for enforcing the Fair Trading Act1999, along with other State legislation regarding business activities.

www.consumer.vic.gov.au

Privacy VictoriaPrivacy Victoria is the key body in a system regulating the way Victorian government agencies and localcouncils collect and handle personal information.www.privacy.vic.gov.au

Federal Government

Australian Bureau of Statistics (ABS)Australias primary government statistical agencywww.abs.gov.au

Australian Government Information Management OfficeExtensive information on eCommerce, IT and the Information Economywww.agimo.gov.au

Department of Communications, Information Technology & the Arts (DCITA)Information about eBusiness, available publications and funding programs.

http://www2.dcita.gov.au/ie/ebusiness

Business Entry Point

The Business Entry Point covers the resources that are available from Commonwealth, State as well asTerritory governments.

http://www.business.gov.au

Index of where to find more information


40/41

40

Industry Bodies

Internet Industry Association (IIA)Australias national Internet Industry Associationwww.iia.net.au

E-commerce Association of Central VictoriaThis website aims to develop opportunities for businesses and the wider Central Victorian community throughresearch into and promotion of electronic commerce technologies.www.ecomcv.asn.au

Research AgenciesBitPipeA complete guide to the latest eBusiness white papers, product literature, webcasts and case studieshttp://www.bitpipe.com

eMarketerGlobal supplier of e-commerce and eBusiness statisticswww.emarketer.com

Forester ResearchUS based research agency specializing in the Internet and Information Technologywww.forrester.com

SensisAustralian supplier of eCommerce and eBusiness reportshttp://about.sensis.com.au

News AgencieseCom-AdviserAn online advisory tool developed to help small and medium size businesses (SMEs) move quickly into theconnected world of e-businesswww.ecom-adviser.com.au

E-Commerce TimesDaily information and special reports on small business and eBusiness trends

www.ecommercetimes.com

ClickZ todayNews, information and articles on B2B issues, e-commerce and marketingwww.clickz.com

Going DigitalThis website features a range of case studies from agriculture to building, retail and transport.www.goingdigital.com.au


41/41

41

Tradegate ECAHelps to facilitate implementation of e-commerce via agreed national standards and strategieswww.tradegate.org.au

Cant Find what you are looking for?Try looking for more information on one of the following Internet Search Engines

http://www.google.com

http://www.sensis.com.au

http://www.goeureka.com.au

http://search.ninemsn.com.au

http://au.altavista.com

http://www.looksmart.com.au

http://www.yahoo.com.au

Disclaimer

These materials are provided for general assistance and information only. Neither APT Strategies Pty. Ltd nor the State of Victoria makesany representations or warranties (express or implied) as to the accuracy or currency of the information contained in the materials norendorses any company or organisation or other web-sites or materials referred to. The State of Victoria does not accept any liability forany reliance placed on this material, including any liability in negligence for relying on any information in these materials or any products,services or information which may be provided by the companies and organisations referred to. Copyright State of Victoria 2004.

Date post:	08-Apr-2018
Category:	Documents
Upload:	soorajtvm
View:	216 times
Download:	0 times

IntroductionToebusiness

Documents