Unformatted text preview: customer or supplier continue to use a service since they find the service valuable and they have invested a lot of time in learning the service or integrating it with their system and there are some costs in switching.
• e.g. In Europe the low cost airlines such as Easyjet and Ryanair
have succeeded in migrating the majority of their customers to online booking within few years while acquiring more customers. Slide 1.7 The impact of the Internet on business • Andy Grove, Chairman of Intel, one of the early adopters of e‐commerce, has made a meteorological analogy with the Internet. He says:
• The Internet a typhoon force, a ten times force, or is it a bit of wind? Or is it a force that fundamentally alters our business? (Grove, 1996) Slide 1.8 E‐business risks
• The risks of introducing e‐business services vary from strategic risks to practical risks. • One of the main strategic risks is making the wrong decision about e‐business investments. – Some companies have taken advantage of e‐business,
– but others have achieved no return either because the execution of the plan was flawed or simply because planned approaches used for their market were inappropriate. • There are also many practical risks to manage which if ignored can lead to bad customer experiences and bad news stories which lead to damage the reputation of the company. Slide 1.9 Internet risks – what can go wrong with a transactional site? If the customers experience very bad services they will stop using it and switch to other online options. Examples of poor online customer experience:
• Web sites that fail because of a spike in visitor traffic after a peak‐hour TV advertising campaign
• Hackers penetrating the security of the system and stealing credit card details.
• Problems with fulfilment of goods ordered online (missing ordered or are delayed)
• Annoying customers with emails without their permission
• Email customer service enquiries from the website don’t reach the right person and are ignored. Slide 1.10 Activity 1.1
• Examine the growth of the Internet use by consumers in your country and the neighbouring countries
• www.itu.int/ITU‐D/ict/statistics Slide 1.11 What is E‐commerce and E‐business
• Electronic commerce (e‐comm...
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