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for highly customizable packaged software for data warehousing and enterprise
resource planning (ERP) and On-line outsourcing of Applications to Application
Service Providers. Firms may need to develop new investment models that include
measures of market expansion, revenue per customer, and customer satisfaction
metrics.
Implementing e-commerce projects in “Internet time” is an enormous challenge. E-
commerce is the use of information technology in business. The novel organization
strategies, CRM, personalization and mass customization needs to be incorporated
into the business models. Use of information technology by an organization usually
requires major restructuring of the organization. The scale of change may be
enormous depending on the organization and nature of the opportunity. CISCO
Systems is a success story and an example of a restructured organization that is
reportedly transacting over 90 percent of its dealings with the distributors over the
Internet.
The web site is where the consumer and the firm conduct their business and must
become the focus of attention. The web site must have the functionalities that enable
the firm to acquire, sell and retain customers. E-commerce sites are eminently easier
to leave than physical store as the customer has less time invested than shopping in
a physical store. Customer support was claimed as the main reason for the demise
of many dot-coms. Consumers are frequently disappointed at how little depth exists
beneath the user interface for providing customer support. Improved scales to
measure all the dimensions of perceived quality of web sites must be developed.
E-commerce is developing along several fronts. One trend is towards providing same
day fulfillment. E-commerce companies are forming alliances with local affiliates.
Customers are enabled to pick-up and return their purchases in locations close to their
favorite shopping areas. Personalization is another area of common concern for
future development of e-commerce. An objective of personalization is to enable the
firm to know their customers and interact with them one-on-one to provide each
customer with a unique website experience. Personalization allows businesses to
customize their marketing mix. For example,
instead of competition on the bases of
price alone, it would be possible to treat each customer differently as a frequent buyer
enjoying perks and special treatments. Each customer may also be targeted with
useful advertisements that inform his/her needs, and given credit for viewing the