Digital Business Introduction 2024-25 PDF

digital business Prof. Miguel Houghton. digital business Chapter 1 Introduction to digital business Prof. Miguel Houghton. digital business Learning outcomes Define the meaning...

digital business Prof. Miguel Houghton. digital business Chapter 1 Introduction to digital business Prof. Miguel Houghton. digital business Learning outcomes Define the meaning and scope of digital business and e-commerce and their different elements Prof. Miguel Houghton. digital business Learning outcomes Define the meaning and scope of digital business and e-commerce and their different elements Summarise the main reasons for adoption of digital business and barriers that may restrict adoption Prof. Miguel Houghton.  digital business Learning outcomes Define the meaning and scope of digital business and e-commerce and their different elements Summarise the main reasons for adoption of digital business and barriers that may restrict adoption Outline the ongoing business challenges of managing digital business in an organisation, particularly online start-up businesses Prof. Miguel Houghton.  digital business Management issues How do we explain the scope and implications of digital business to staff? Prof. Miguel Houghton. digital business Management issues How do we explain the scope and implications of digital business to staff? What is the full range of benefits of introducing digital business and what are the risks? Prof. Miguel Houghton. digital business Management issues How do we explain the scope and implications of digital business to staff? What is the full range of benefits of introducing digital business and what are the risks? How do we evaluate our current digital business capabilities? Prof. Miguel Houghton. digital business Digital business “When we declared “every business is a digital business” in the Accenture Technology Vision 2013, we didn’t see it as a trend for last year or this year. We saw it as the future. The future of technology. The future of business. The future of our increasingly interconnected and interdependent world”. Pierre Nanterme Accenture - Chairman & CEO Prof. Miguel Houghton. digital business 1.1 Definitions Prof. Miguel Houghton. digital business Digital business DB is how businesses apply digital technology and media to improve the competitiveness of their organisation through optimising internal processes with online and traditional channels to market and supply. Prof. Miguel Houghton. digital business Digital business Prof. Miguel Houghton. digital business Digital business Prof. Miguel Houghton. digital business Digital business Prof. Miguel Houghton.  digital business Digital business How businesses apply digital technology and media to improve the competitiveness of their organisation through optimising internal processes with online and traditional channels to market and supply. Vs. Electronic commerce All electronically mediated information exchanges between an organisation and its external stakeholders. Prof. Miguel Houghton.  digital business Electronic commerce All electronically mediated information exchanges between an organisation and its external stakeholders. Prof. Miguel Houghton.  digital business Prof. Miguel Houghton.  digital business Prof. Miguel Houghton.  digital business Business-to-consumer (B2C) e-commerce Commercial transactions between an organisation and consumers. Prof. Miguel Houghton.  digital business Business-to-business (B2B) e-commerce Commercial transactions between an organisation and other organisations Prof. Miguel Houghton.  digital business Consumer-to-consumer (C2C) e-commerce Allow Consumers to trade, buy, and sell items Prof. Miguel Houghton. digital business Consumer-to-business (C2B) e-commerce Consumers approach the business with an offer. Prof. Miguel Houghton.  digital business Government-to-consumers (G2C) e-commerce The application of e-commerce technologies to government and public services for citizens and businesses. Prof. Miguel Houghton.  digital business Electronic commerce options… Summary and examples of transaction alternatives between Figure 1.11 businesses, consumers and governmental organisations Prof. Miguel Houghton.  digital business Electronic commerce means of connection Prof. Miguel Houghton.  digital business Electronic commerce All electronically mediated information exchanges between an organisation Buy-side and its external stakeholders. Sell-side e-commerce e-commerce E-commerce E-commerce transactions transactions between an between an organisation organisation and its and its suppliers and customers. other partners. Prof. Miguel Houghton.  digital business Electronic commerce 1) Transactional e-commerce sites: These enable purchase of products online. Sell-side e-commerce E-commerce transactions between an organisation and its customers. Prof. Miguel Houghton.  digital business Electronic commerce 2) Services-orientated relationship-building sites: These provide information to stimulate purchase and build relationships, particularly where products are not suitable for sale online. Sell-side e-commerce E-commerce transactions between an organisation and its customers. https://www.kpmg.com Prof. Miguel Houghton.  digital business Electronic commerce 3) Brand-building sites. These sites provide an experience to support the brand. Products are not typically available for online purchase. Sell-side e-commerce E-commerce transactions between an organisation and its customers. https://us.coca-cola.com Prof. Miguel Houghton.  digital business Electronic commerce 4) Publisher or media sites: These provide information, news or entertainment about a range of topics, both on the site and through links to other sites. Sell-side e-commerce E-commerce transactions between an organisation and its customers. https://www.tmz.com Prof. Miguel Houghton.  digital business Electronic commerce 5) Social network sites (SNS): Social networks could be considered to be in the previous category, since they are often supported by advertising, but their influence on company and customer communications suggests they form a separate category. Sell-side e-commerce E-commerce transactions between an organisation and its customers. Prof. Miguel Houghton.  digital business Disruptive digital technologies Technologies which offer opportunities for business for new products and services for customers and can transform internal business processes. Prof. Miguel Houghton.  digital business Disruptive digital technologies Technologies which offer opportunities for business for new products and services for customers and can transform internal business processes. ‘a technology that changes the bases of competition by changing the performance metrics along which firms compete. Customer needs drive customers to seek certain benefits in the products they use and form the basis for customer choices between competing products’ Danneels (2004). Prof. Miguel Houghton.  digital business Digital business transformation Prof. Miguel Houghton.  digital business Digital business transformation Prof. Miguel Houghton.  digital business Digital business transformation Prof. Miguel Houghton. digital business 1.2 Internet, www and its impact in business Prof. Miguel Houghton.  digital business The Internet ‘The Internet’ refers to the physical network that links computers across the globe. It consists of the infrastructure of network servers and wired and wireless communication links between them that are used to hold and transport data between the client devices and web servers. Prof. Miguel Houghton.  digital business The Internet Prof. Miguel Houghton.  digital business The Internet of Things What is the Internet of Things? It’s the networked interconnection of everyday machines to one another, as well as to humans. Porter.. https://www.youtube.com/watch?v=Up6AiNFJI3g Prof. Miguel Houghton.  digital business World Wide Web (WWW) The most common technique for publishing information on the Internet. It is accessed through desktop or mobile web browsers which display interactive web pages of embedded graphics and HTML/ XML encoded text Prof. Miguel Houghton.  digital business Figure 1.1 Google circa 1998 Source: Wayback machine archive: http://web.archive.org/web/19981111183552/google.stanford.edu. Google and the Google logo are registered trademarks of Google Inc., used with permission. Prof. Miguel Houghton.  digital business Digital business major innovation 1990 1995 2000 2005 2010 2015 Prof. Miguel Houghton.  digital business Digital business transformation Prof. Miguel Houghton. digital business 1.3 Supply chain and its adaptation to DDBB Prof. Miguel Houghton.  digital business Digital business How businesses apply digital technology and media to improve the competitiveness of their organisation through optimising internal processes with online and traditional channels to market and supply. Prof. Miguel Houghton.  digital business Digital business How businesses apply digital technology and media to improve the competitiveness of their organisation through optimising internal processes with online and traditional channels to market and supply. Prof. Miguel Houghton.  digital business Value chain A model for analysis of how supply chain activities can add value to products and services delivered to the customer. Prof. Miguel Houghton.  digital business Value networks The links between an organisation and its strategic and nonstrategic partners that form its external value chain. Prof. Miguel Houghton.  digital business Supply chain management (SCM) The coordination of all supply activities of an organisation from its suppliers and partners to its customers. https://www.youtube.com/watch?v=Mi1QBxVjZAw Prof. Miguel Houghton.  digital business Stage models Used to review how advanced a company is in its use of information and communications technology (ICT) to support different processes. Prof. Miguel Houghton. digital business 1.4 New players in the digital world Prof. Miguel Houghton. digital business Digital business Prof. Miguel Houghton. digital business Digital business Prof. Miguel Houghton.  digital business New communications approaches and consumer behaviour Inbound marketing The consumer is proactive in actively seeking out information for their needs, and interactions with brands are attracted through content, search and social media marketing. Prof. Miguel Houghton.  digital business New communications approaches and consumer behaviour Zero Moment of Truth (ZMOT) A summary of today’s multichannel consumer decision-making for product purchase where they search, review ratings, styles, prices and comments on social media before visiting a retailer. Prof. Miguel Houghton. digital business New communications approaches and consumer behaviour Content marketing The management of text, rich media, audio and video content aimed at engaging customers and prospects to meet business goals, published through print and digital media including web and mobile platforms, which is repurposed and syndicated to different forms of web presence such as publisher sites, blogs, social media and comparison sites. Prof. Miguel Houghton.  digital business New communications approaches and consumer behaviour Search marketing Companies seek to improve their visibility in search engines for relevant search terms by increasing their presence in the search engine results pages Prof. Miguel Houghton.  digital business New communications approaches and consumer behaviour Search marketing Companies seek to improve their visibility in search engines for relevant search terms by increasing their presence in the search engine results pages https://www.youtube.com/watch?v=DvwS7cV9GmQ Prof. Miguel Houghton.  digital business New communications approaches and consumer behaviour Social media A category of media focussing on participation and peer-to-peer communication between individuals, with sites providing the capability to develop user-generated content (ugc) and to exchange messages and comments between different users. http://bit.ly/smartsocialstats Prof. Miguel Houghton.  digital business New communications approaches and consumer behaviour Social media marketing Monitoring and facilitating customer– customer interaction and participation throughout the web to encourage positive engagement with a company and its brands. Interactions may occur on a company site, social networks and other third-party sites. https://www.youtube.com/watch?v=BS0AfId45zo Prof. Miguel Houghton.  digital business New communications approaches and consumer behaviour Social media marketing Monitoring and facilitating customer– customer interaction and participation throughout the web to encourage positive engagement with a company and its brands. Interactions may occur on a company site, social networks and other third-party sites. https://www.youtube.com/watch?v=Qv6PabPkSdc Prof. Miguel Houghton.  digital business Digital marketing definition Digital marketing involves: Applying these technologies which form online channels to market: Web, email, databases, plus mobile/wireless and digital TV. Prof. Miguel Houghton.  digital business Digital marketing definition Digital marketing involves: To achieve these objectives: Support marketing activities aimed at achieving profitable acquisition and retention of customers... within a multichannel buying process and customer lifecycle. Prof. Miguel Houghton.  digital business Digital marketing definition Digital marketing involves: Through using these marketing tactics: Recognising the strategic importance of digital technologies and developing a planned approach to reach and migrate customers to online services through e-communications and traditional communications. Prof. Miguel Houghton.  digital business Digital marketing definition Digital marketing involves: Through using these marketing tactics: Retention is achieved through improving our customer knowledge (of their profiles, behaviour, value and loyalty drivers), then delivering integrated, targeted communications and online services that match their individual needs Prof. Miguel Houghton.  digital business Digital media channels Online communications techniques used to achieve goals of brand awareness, familiarity, favourability and to influence purchase intent by encouraging users of digital media to visit a website to engage with the brand or product and ultimately to purchase online or offline through traditional channels. Prof. Miguel Houghton.  digital business Digital media channels Online communications techniques used to achieve goals of brand awareness, familiarity, favourability and to influence purchase intent by encouraging users of digital media to visit a website to engage with the brand or product and ultimately to purchase online or offline through traditional channels. Prof. Miguel Houghton.  digital business Digital media marketing opportunities Reach – Over 2 billion users globally – Connect to millions of products Richness – Detailed product information on 20 billion+ pages indexed by Google. Blogs, videos, feeds… – Personalised messages for users Affiliation – Partnerships are key in the networked economy. Prof. Miguel Houghton. digital business online value proposition (OVP): The 6 C´s Content: ’content is king’. Convenience: ’24 x 7 x 365´. Customisation: ’personalisation’. Choice: ’breath & depth’. Community: “discuss anything” Cost reduction: “ low-cost place of purchase“ Prof. Miguel Houghton. digital business 1.5 Digital Business models Prof. Miguel Houghton.  digital business Business model There are three different perspectives from which a business model can be viewed Prof. Miguel Houghton  digital business Business model Revenue models Describe methods of generating income for an organisation Prof. Miguel Houghton  digital business Business model Revenue models CPM (cost per mille) display advertising on-site. This is the traditional method by which site owners charge a fee for advertising. Prof. Miguel Houghton  digital business Business model Revenue models CPC advertising on-site (pay-per-click text ads). Advertisers are charged not simply for the number of times their ads are displayed, but according to the number of times they are clicked upon. Prof. Miguel Houghton  digital business Business model Revenue models Sponsorship of site sections or content types (typically fixed fee for a period). A company can pay to advertise a site channel or section. Prof. Miguel Houghton  digital business Business model Revenue models Affiliate revenue (CPAff): a process where publishers earn a commission by promoting a product or service made by another retailer or advertiser using an affiliate link. Affiliate revenue is commission-based, for example Amazon books are displayed on Dave Chaffey’s site Smart Insights Prof. Miguel Houghton  digital business Business model Revenue models Transaction fee revenue. A company receives a fee for facilitating a transaction. Examples include eBay and PayPal, Prof. Miguel Houghton  digital business Business model Revenue models Subscription access to content or services. A range of documents can be accessed from a publisher for a fixed period. Prof. Miguel Houghton  digital business Business model Revenue models Pay-per-view access to documents. Here payment occurs for single access to a document, video or music clip that can be downloaded. Prof. Miguel Houghton  digital business Business model Revenue models Subscriber data email marketing. The data a site has about its customers are also potentially valuable, since it can then send different forms of email to its customers from either the publisher or third parties. Prof. Miguel Houghton  digital business Business model Revenue models Calculating revenue for an online business Site owners must develop models of potential revenue depending on the mix of revenue-generating techniques from the four main revenue options they use on the site. Prof. Miguel Houghton  digital business Business model Revenue models Calculating revenue for an online business Site owners must develop models of potential revenue depending on the mix of revenue-generating techniques from the four main revenue options they use on the site. Prof. Miguel Houghton  digital business Business model Revenue models Calculating revenue for an online business Site owners must develop models of potential revenue depending on the mix of revenue-generating techniques from the four main revenue options they use on the site. Prof. Miguel Houghton  digital business Business model Revenue models Calculating revenue for an online business Site owners must develop models of potential revenue depending on the mix of revenue-generating techniques from the four main revenue options they use on the site. Prof. Miguel Houghton digital business 1.5.1 Canvas Digital Business model Prof. Miguel Houghton.  digital business Business model An architecture for product, service and information flows, including a description of the various business actors and their roles; and a description of the potential benefits for the various business actors; and a description of the sources of revenue. (Timmers - 1999) Prof. Miguel Houghton digital business Business Model Canvas Prof. Miguel Houghton digital business Valuing tech start-ups 1 Concept 4 Traffic 2 Innovation 5 Financing 3 Execution 6 Profile https://www.smartinsights.com/digital-marketing-strategy/online-value- proposition/start-with-why-creating-a-value-proposition-with-the-golden- circle-model/ Prof. Miguel Houghton  digital business Digital business DB is how businesses apply digital technology and media to improve the competitiveness of their organisation through optimising internal processes with online and traditional channels to market and supply. https://www.youtube.com/watch?v=6Wq6xQxaLGE https://www.youtube.com/watch?v=gqy70cDPwRY https://www.youtube.com/watch?v=y60yeHak5bE https://www.youtube.com/watch?v=mSm4db_ARQM Prof. Miguel Houghton.  digital business The Internet ‘The Internet’ refers to the physical network that links computers across the globe. It consists of the infrastructure of network servers and wired and wireless communication links between them that are used to hold and transport data between the client devices and web servers. https://cmsw.mit.edu/joi-itos-9-principles-media-lab/ https://www.youtube.com/watch?v=Up6AiNFJI3g Prof. Miguel Houghton.