Strategic & Tactical Tools for Ebusiness

Fan acquisition

Engagement

Amplification

Community

Brand Strength

And sales

• These are the SAME steps as in the Social marketing funnel.
• Shows that mobile and social are essentially the same in many aspects
  • Most popular apps on mobile are social for sharing pictures

1. Employee empowerment and Engagement

• Mobile point of sale (POS) transactions – Salespeople -> problem solvers

• These technological improvements causes a paradigm shift, salespeople with a POS transaction device can be kept accessible to become part of the problem solving human resources. The store is not only a marketing channel, but also a point to solve problems

2. Omni channel marketing

Deliver seamless shopping experience to customers across all channels by synchronizing technologies, services and processes in a centralized and interoperable way

Solutions:

• Marketing can happen with seamlessly integrated channels
• Cross-channel inventory visibility
• In-store pickup 

Challenges:

• Siloed technology
• Inventory intelligence
• Fragmented fulfillment
• Customer identification
• lot of organisational work to achieve omni-channel strategy

3. Customer analytics

• Consumer in-store location through beacons that direct customers to aisle

Location-based marketing targets marketing messages to users based on their location.

Two general techniques to local marketing

• Geo-aware techniques identify the location of a user’s device and then target marketing to the device, recommending actions within reach
  • may target smartphones within several square city blocks to alert them to available offers from participating merchants
• Proximity marketing identifies a perimeter around a physical location, and then target ads to users within that perimeter, recommending actions possible within the fenced-in area.
  • For instance if users walk into perimeter of a store, they receive ads

Tools

• iBeacons - are in-store devices that send messages to customers nearby
  • Uses Bluetooth Low Energy to connect to devices
  • Special offers can be sent, general areas can be marked with different areas, and get help if stuck in a section too long
  • Beacons can stimulate loyalty programs by being noticed when walking into stores
  • Beacons can give sudden sales or discounts
  • Can also silently gather data on points in store where people buy most or get stuck
  • Downside: only 20% of users have bluetooth on
    • Privacy concerns
    • Pushing notices in store ca make people stop using app
      • If more than 1 message sent in store, 300% less usage noticed

• Facebook PlaceTips - Facebook messaging to news feed about offers nearby
• NFC technology - Scanning of location based bar codes to get more info on products

1. the client side, within the customers hardware and software
2. at the server side, within the merchants information systems
3. within the communications pipeline, that is the various internet communications channels enabling the transaction to take place and be fulfilled

For example at the client side web beacons or malicious spyware might be installed on the consumer's computer and this might be used to obtain credit card information through recording the user's keystrokes.

On the merchant server side the database of customer details (including credit cards) might be hacked - this is known as a customer list hack this might be done through an SQL injection where SQL database statements are inserted into a database entry field for execution resulting in the contents of the database being dumped to the attacker.

Throughout the communications process the internet communications channels might be monitored

Major technical security attacks:

• Malware: code that has gotten into our device without our knowledge that is hurting it
• Unauthorized access: someone taking the customer data, for example
• Denial-of-service (DDoS) attacks: hurtful events that can stop the service
  • Involves the hijacking fo several computers in a botnet and sending Get requests to a server repeatedly, overloading its CPU
• Spam and spyware
• Trojans
• Hijacking
• Botnets

From the social side:

• Social engineering
  • psychological manipulation of people
    into performing actions or divulging confidential information
• Social phishing attacks
  • most common type of attacks leveraging social engineering techniques. Attackers use emails, social media, instant messaging and SMS to trick victims into providing sensitive information or visiting malicious URLs in the attempt to compromise their systems
• Fraud and scams on the Internet
• Data breach (leak)

1. Integrity

• It refers to the ability to ensure that information being displayed on a website or transmitted or received over the internet has not been altered in any way by an unauthorized party. 

2. Nonrepudiation

• the ability to ensure that e-commerce participants do not deny or repudiate their online actions

3. Authenticity

• the ability to identify a person or entity with who one is transacting with on the internet

4. Confidentiality

• the ability to ensure that messages and data are only available to those who are authorised to view them

5. Privacy

• the ability to control the use of information about oneself

6. Availability

• the ability to ensure that an e-commerce site continues to function as intended and is available to provide service

• Malware
• Malvertising
• Drive-by download
• virus
• worm
• ransomware
• trojan
• backdoor
• Dos
• DDos
• Identity fraud
• SQL injection attack
• etc.
• Credit card fraud / theft

• Social networks such as Facebook, Twitter, LinkedIn, Pinterest and Tumblr provide a rich and rewarding environment for hackers
• Viruses, site takeovers, identity fraud, malware-loaded apps, click hijacking, phishing, and spam are all found on social networks
• Common types of scam on social networks include manual sharing scams, where victims unwittingly share videos, stories and pictures that include links to malicious sites, with “free” gift cards, for example
• Another technique is a fake reaction button: when clicked, it installs malware and post updates to the user’s newsfeed, further spreading the attack
• SN firms have by far been relatively poor policeman because they have failed to aggressively weed out accounts that send visitors to malware sites (unlike Google, that maintains a list of known malware sites).

• The existence of mobile devices has broadened opportunities for hackers
• Mobile users are filling their devices with personal and financial information and using them to conduct transactions, from retail purchases to mobile banking
• Mobile devices face the same risk as any other Internet device, as well as some risks associated with wireless network security
• Public Wi-fi networks that are not secured are very susceptible to hacking
• Malicious mobile apps (MMAs, malware for cell phones) was developed early 2004
• The majority of mobile malware still targets the Android platform

• The move of so many Internet services into the cloud also raises security risks
• DDoS attacks threaten the availability of cloud services, on which more and more companies are relying
• Companies with hybrid networks, with their applications scattered among public clouds, private clouds, and on-premises systems, are more at risk

• Encryption
• Symmetric key cryptography
• Advanced encryption standard
• Public key cryptography
• Digital envelops
• VPN
• Firewalls
• Proxy servers

customer relationship management, demand management, order fulfillment, manufacturing management, procurement, product development, returns, logistics/transportation, and inventory management

E-Commerce: describes specifically that portion of B2B commerce that is enabled by the Internet (including mobile apps). It is the sale of goods or services between businesses via an online sales portal. In general, it is used to improve the efficiency and effectiveness of a company's sales efforts. Instead of receiving orders using human assets (sales reps) manually – by telephone or e-mail – orders are received digitally, reducing overhead costs

• Lower administrative costs
• Lower search costs for buyers
• Reduce inventory costs by increasing competition among suppliers (increasing price transparency) and reducing inventory to the bare minimum
• Lower transaction costs by eliminating paperwork and automating parts of the procurement process
• Increase production flexibility by ensuring delivery of parts just at the right time (known as just-in-time production)
• Improve quality of products by increasing cooperation among buyers and sellers and reducing quality issues
• Decrease product cycle time by sharing designs and production schedules with suppliers
• Increase opportunities for collaborating with suppliers and distributors
• Create greater price transparency—the ability to see the actual buy and sell prices in a market
• Increase the visibility and real-time information sharing among all participants in the supply chain network.

• Often Lack of real-time demand, production and logistic data.
  • Result of this is unexpected supplier failure
• Environmental impacts
• Natural disasters
• Labor concerns (strikes etc.)
• Impacts of economic, financial and political instability

The sensitivity in the supply is a difficult challenge to manage (Bullwhip effect)

The bullwhip effect is, how a change in the user demand can echo all the way down in the supply chain with an increasing effect between each link in the supply chain and is commonly visualized with the waves a bullwhip makes, and thus the name.

Information systems can help avoid this bullwhip effect, as they make companies able to be more transparent about their expected demand, and thus the following links in the supply chain have better odds of matching the precise demand. However, this require companies to share information with each other, which is not always wanted.

Examples:

• Blockchain
• EDI (Electronic data interchange)
• Cloud

A coordination of various organisations that are related in the process of producing value

Ad:

• Transparency
• Real-time information
• Security
• Immutability

Dis:

• Hard to build network
• Information loss (e.g. blackouts)
• Loss of sovereignty 
• Carbon footprint / Energy consumption

Reusable

Non-rival use

Versionable

• can be subject to different modifications (upgrades). Such as video games

E-business: digital enabling of transactions and processes within a firm

E-buss turn into e-commerce when exchange of value occurs

Business:

• all forms of e-comm (retail e/m, social network, on-demand, B2B) continue to show very strong growth;
• Social, mobile, digital advertising

Technology:

• Mobile / cloud computing, IoT, Big Data, 
• Mobile is king and new technologies help to build the mobile platform. Data flood is leveraged by analytics.

Society:

• User-generated content, privacy issues, digital copyright, taxation, surveillance, online security
• Conflicts over copyright, privacy, security threats

--> fundamental change to traditional commerce (information asymmetry, fixed prices, sales-force driven etc)

1.Ubiquity

• Available everywhere and all the time
• Alters industry structure by creating new marketing channels and expanding size of overall market. Creates new efficiencies in industry operations and lowers costs of firms’ sales operations. Enables new differentiation strategies

2.Global reach

• Reach = the total number of users or customers an e-commerce business can obtain
• Changes industry structure by lowering barriers to entry, but greatly expands market at the same time. Lowers cost of industry and firm operations through production and sales efficiencies. Enables competition on a global scale

3.Universal standards

• lowers market entry costs for merchants, reduces search costs for consumers, price discovery becomes simpler as prices and product descriptions are displayed, network externalities arise (mutual gains on consumer and seller side from using the same technology)

4.Information richness

• Complexity and content of a message

5.Interactivity

• Technology enables two-way communication between merchant and consumer
• Alters industry structure by reducing threat of substitutes through
  enhanced customization.

6.Information density

• The total amount and quality of information available to all market participants -> Information become less expensive and of better quality, more transparency on prices and costs, merchants can segment and target specific customer groups based on data

7.Personalization/customization

• Personalization = targeting of marketing messages to specific individuals by adjusting the message to a person’s name, interests, and past purchases
• Customization = changing the delivered product or service based on a user’s preferences or prior behavior
• Alters industry structure by reducing threats of substitutes, raising barriers to entry.

8.Social technology

• user-generated content and social networks

• B2C, B2B (most $),
• C2C, Mobile e-commerce (use of mobile devices to enable online transactions),
• social e-commerce (e-commerce enabled by social networks and online social relationships),
• local e-commerce (focused on engaging the consumer based his or her current geographic location)

Evolution of multi/cross-channel retailing to encompass all digital and social technologies

Customers can examine, access, purchase, and return goods from any channel, even change channels during process, and receive timely info at each stop in each channel

Economies of scale

•  inverse relationship between fixed costs and output / a proportionate saving in costs gained by an increased level of production
• used to be a competitive advantage (mass production --> lower costs), but is changing due to technologies (platforms and on-demand technologies)

Economies of unscale

• instead of offering a mass product, offering customized, smaller solutions that are targeted to specific customers due to emergence of platforms and on-demand tech (AI, cloud etc)

Interconnected network of thousand of networks, millions of computers, linking businesses, educational inst, and individuals

One of the internet most popular services

Phase 1: Innovation phase (1961)

- fundamental building blocks of the Internet (packet-switching hardware, IP, client server computing)

Phase 2: Institutionalization (1995)

- large instututions provide funding for fledging internet, evolution of civilian internet

- beginning of e-commerce

Phase 3: Commercialisation (1995)

- private corporations take over internet, expansion of the internet beyond military instututions and college campus

A method of slicing digital messages into packets, sending the packets along different communication paths as they become available, and then reassembling the packets once they arrive at their destination

- Packet switching

- TCP / IP (transmission control protocol / internet protocol)

- IP Adresses

- Domain names

- Client / server 

TCP: breaks data into packets and resembles it. IP provides the internets addressing scheme for the travel from one router to another.

Protocol: set of rules and standards for data transfers

TCP: core communications protocol for the Internet. establishes connections among sending and receiving computers and
handles assembly and reassembly of packets

IP: provides the Internet’s addressing scheme and is responsible for delivery of packets

IP: provides the Internet’s addressing scheme and is responsible for delivery of packets

IP-Address: unique identifier to communicate over network

Domain name: IP address expressed in natural language

Domain name system: system for expressing numeric IP addresses in natural language

Client / Server computing: A model of computing in which client computers are connected in a network together with one or more servers

Benefit: easy to expand capacity by adding servers or clients

INSTALLED BASE: implies diverse IT capabilities and their user, operations and design communities

SHARED: across multiple communities in many and often unexpected ways

OPENESS: unbounded; components can be added and integrated in unexpected  ways;

HETEROGENEOUS: their OPENNESS invites social and technical diversity;

EVOLVABLE: they are OPEN (to change);

Layer 1: Network Layer --> responsible for placing packets on and receiving them from the network medium (e.g. fiber cables, wifi)

Layer 2: Internet Layer --> IP, responsible for addressing, packaging, and routing messages on the Internet

Layer 3: Transport Layer --> TCP, responsible for providing communication with other protocols within TCP/IP suite

Layer 4: Application Layer --> includes protocols used to provide user services or exchange data

Model of computing in which computer processing, storage, software, and other services are provided as a shared pool of virtualized resources over the Internet (e.g. AWS, GSuite)

Anothet def: a model for enabling convenient, on-demand network access to a shared pool of configurable computing resources (for example, networks, servers, storage, applications, and services) that can be rapidly provisioned and released with minimal management effort or service-provider interaction

Characteristics:

- On-demand self service --> Consumers can obtain computing capabilities on their own

- Ubiquitous network access --> can be accessed using standard network and Internet devices, including mobile platforms.

- Measured service --> Charges for cloud resources are based on the amount of resources actually used.

- Rapid elasticity --> resources can be rapidly provisioned, increased, or decreased

- Local independent resource pooling --> resources are pooled to serve multiple users.

SaaS: Software as a Service --> Consumer use software hosted on the vendor on the vendors cloud infrastructure (e.g. Salesforce, Dixa)

PaaS: Platform as a Service --> Customers use infrastructure and programming tools supported by the CSP to develop their own applications (e.g. IBM)

IaaS: Infrastructure as a Service --> Customers use processing, storage, networking, and other computing resources from third-party providers to run their information systems (e.g AWS) 

Deployement types
Public, private, community, hybrid