Administrativecostreductionsfrommoreefficient

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Unformatted text preview: .23 Barriers to consumer adoption • • • • • No perceived benefit Lack of trust Security problems Lack of skills Cost Slide 1.24 Activity – drivers and barriers to adoption • You are in a team of advisers at a local business link (a local government agency encouraging adoption of e‐commerce) • List: – Drivers to adoption of sell‐side e‐commerce by business and how you can reinforce these by marketing benefits. – Barriers to adoption of sell‐side e‐commerce by business and how you can reinforce these by stressing benefits. Slide 1.25 Cost/efficiency and competitiveness drivers • Cost/efficiency drivers – – – – Increasing speed with which supplies can be obtained Increasing speed with which goods can be dispatched Reduced sales and purchasing costs Reduced operating costs. • Competitiveness drivers – Customer demand – Improving the range and quality of services offered – Avoid losing market share to businesses already using e‐ commerce. Slide 1.26 Tangible and intangible benefits Tangible benefits Increased sales from new sales leads giving rise to increased revenue from: – new customers, new markets – existing customers (repeat‐selling) – existing customers (cross‐selling). Marketing cost reductions from: – reduced time in customer service – online sales – reduced printing and distribution costs of marketing communications. Supply‐chain cost reductions from: – reduced levels of inventory – increased competition from suppliers – shorter cycle time in ordering. Administrative cost reductions from more efficient routine business processes such as recruitment, invoice payment and holiday authorization. Intangible benefits Corporate image communication Enhancement of brand More rapid, more responsive marketing communications including PR Faster product development lifecycle enabling faster response to market needs Improved customer service Learning for the future Meeting customer expectations to have a web site Identifying new partners, supporting existing partners better Better management of marketing information and customer information Feedback from customers on products Slide 1.27 Figure 1.6 Attitudes to business benefits of online technologies to business benefits of online technologies Source: DTI (2002) Slide 1.28 Figure 1.7 North West Supplies Ltd site (www.northwestsupplies.co.uk) West Supplies Ltd site Source: Opportunity Wales Slide 1.29 Figure 1.8 Adoption of I...
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