Download E-Commerce: Factors Determining Online Sales and the Impact of Technology and more Slides Information Technology in PDF only on Docsity! Don’t worry too much about the coming storm for you might miss enjoying today’s sunshine! docsity.com Technology Products and the economy docsity.com So what determines what sells online? Have all items been created equal as far as selling them online? docsity.com Why book selling took off online? • Purchase decision is information- intensive • Product demonstration and atmospherics are unimportant • Selection is vast and stores carry limited selection • Prices and selection change frequently • Retail buying experience is unpleasant • Logistically efficient (volume and value) • Non- perishable • Delayed gratification acceptable • Gift- oriented docsity.com Four dimensions of “E- suitability” Information- intensity : How much information does the consumer need to gather in the entire buying process? Multisensory appeal : To what extent does the product evaluation require consumers to engage the senses of smell, taste, and touch? Atmospherics : How important is the role of the physical store environment and the interaction with the salesperson in the purchase process? Logistical efficiency : How efficiently can the product be packed and shipped to individual consumers? docsity.com Changes of last 30 years • Open Standards & Global connectivity • Expansion of the Enterprise and User base • Literate users • Outsourcing • Simplification of the application development • Emphasis on ease of use docsity.com What about technology that has remained the same over the past 30 years? docsity.com Things that remained the same Technology Price Deflation Moore’s law – processing capability doubles every 18 month while computing costs are cut by half Metcalf’s law - states that the value of a network is proportional to the square of the number of connected users of the system (n2). Rapid Technology Change & Vendor Fragility Organizational Resistance to change Technical Skill obsolescence Resilience of legacy systems The four pillars for evaluating technology remain: Efficiency, Capacity, Reliability & Security docsity.com The New E-conomy - Value Shifts* Old Economy New Economy Assets Information Products Services Vertical Integration Virtual Integration Money Time Size Flexibility Revenues New products & services Barriers to entry Innovation docsity.com New E-economy Critical Resources Scarce Resources 1. Time 2. Talent 3. Management Plentiful Resources 1. Capital 2. Technology 3. Outsourced Service Providers docsity.com
