Post on 06-Mar-2016
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INTERNET ECONOMYINTERNET network of computers which permits access and sharing of information
INTERNET ECONOMY impact of this network on the economic aspects of societyINTERNET ECONOMY
ACTIVITIES SUPPORTING THE INTERNET
ACTIVITIES SUPPORTED BY THE INTERNET
ACTIVITIES BENEFITING FROM THE INTERNET
ACTIVITIES SUPPORTING THE INTERNET
INTERNET SERVICE PROVIDERS SOME OF THE BIGGEST COMPANIES IN THE COUNTRY
TELECOM COMPANIES -- SOME OF THE BIGGEST COMPANIES IN THE COUNTRY
NETWORK EQUIPMENT (eg. ROUTERS) MANUFACTURERS eg. SOME OF THE BIGGEST COMPANIES LIKE CISCO ACTIVITIES SUPPORTED BY THE INTERNET
E-COMMERCE
SEARCH ENGINES
E-HEALTH
E-GOVERNANCEE-COMMERCE
B TO B -- speed of operations goes up multiple times
B TO C personalised service is possibleE-COMMERCE
E-commerce market in India
2.5 billion USD 2011 6.3 billion USD
2012 14 billion USD E-COMMERCE
About 75% of this is travel related (airline tickets, railway tickets, hotel bookings, online mobile recharge etc.).
About 12.5% is online retailing 1 crore online buyers growing at 30% pa
International growth rate 8% pa DRIVERS IN INDIAN E-COMMERCE ---- 1
Increasing broadband Internet (growing at
20% (MoM) and 3G penetration.DRIVERS IN INDIAN E-COMMERCE --- 2
Rising standards of living and a burgeoning, upwardly mobile middle class with high disposable incomes
DRIVERS IN INDIAN E-COMMERCE --- 3
Availability of much wider product range compared to what is available at brick and mortar retailersDRIVERS IN INDIAN E-COMMERCE --- 4
Busy lifestyles, and
Lack of time for offline shopping DRIVERS IN INDIAN E-COMMERCE --- 4
Urban traffic congestionDRIVERS IN INDIAN E-COMMERCE --- 5
Lower prices compared to brick and mortar retail driven by removal of intermediaries and reduced inventory and real estate costsE-COMMERCE
Overall e-commerce market is expected to reach US$ 24 billion by the year 2015
Online travel and e-tailing will contribute equally.
Another big segment in e-commerce is mobile/DTH recharge with nearly 1 million transactions daily by operator websites like Airtel.in, Vodafone.in E-COMMERCE
COMMON E-COM COS IN INDIAFlipkart, HomeShop18, Snapdeal, Indiatimes and MakeMyTrip
GLOBAL E-COM COS IN INDIAE-bay started some time back
June 2013 amazon.com started operations in IndiaSEARCH ENGINE
PIONEER ---- YAHOO
LEADER ----- GOOGLE
GOOGLE TURNOVER USD 50 BILLION
HAS MADE ENCYCLOPAEDIA OBSOLETE
HAS MADE INFORMATION AVAILABLE TO THE AVERAGE MAN AT THE CLICK OF A SWITCHE-HEALTH --- 1 Using Internet for health
Electronic health records: enabling the communication of patient data between different healthcare professionals (GPs, specialists etc.)
E-HEALTH --- 2
Telemedicine or cyber medicine : physical and psychological treatments at a distance, including tele-monitoring of patients functionsE-HEALTH --- 3
Consumer health informatics: use of electronic resources on medical topics by healthy individuals or patientsE-HEALTH --- 4
Health knowledge management: e.g. an overview of latest medical journals, best practice guidelines etc. available to doctors to improve themselves
E-HEALTH --- 5Using Internet for health
Virtual healthcare teams: consisting of healthcare professionals who collaborate and share information on patients through digital equipment E-GOVERNANCE
USING ICT (INFORMATION & COMMUNICATION TECHNOLOGY) TO DELIVER GOVERNMENT SERVICES
E-GOVERNANCE IS OF THREE MODES
G TO C
G TO B
G TO GE-GOVERNANCE
IMPORTANT SERVICES IN PROCESS OF BEING DELIVERED
INCOME TAXPENSIONSPASSPORTSLAND RECORDSHEALTH REIMBURSEMENTSPDS E-GOVERNANCE
UDIPI DISTRICT
ALL 161 GRAM PANCHAYATS INTERNET ENABLEDTAX COLLECTION, BUILDING LICENSE, BUYING AND SELLING LAND REGISTRATION ONLINEGOVERNMENT OFFICIALS BEING TRAINED IN NET USAGEACTIVITIES BENEFITING FROM INTERNET
COST OF INFORMATION SEARCH IS LESS
TIME FOR INFORMATION SEARCH IS LESS
PRICE COMPARISONS ARE FASTER AND BETTER
GREATER CHOICE IS POSSIBLEMCKINSEY STUDY OF INTERNET ECONOMY
STUDIED 13 COUNTRIES INCL. INDIA CHINA ACCOUNTING FOR 70% GLOBAL GDP
> 2 BILLION INTERNET USERS (TOTAL GLOBAL POPULATION 7 BILLION)
INTERNET ECONOMY > AGRICULTURE & ENERGY
MCKINSEY STUDY OF INTERNET ECONOMY
INTERNET ECONOMY = AVG 3.5% GDP
INTERNET ECONOMY DOUBLED IN LAST 5 YEARS
COMPANIES WITH STRONG WEB PRESENCE GREW TWICE AS FAST IN LAST 5 YEARS
IMPACT OF INTERNET ON RETAILKEEP PRODUCTS THAT GAIN FROM BEING IN A PHYSICAL STORE
NOT CD & DVD BUT CLOTHES
PRODUCTS WHERE CUSTOMERS WANT ADVICESTORES MUST BECOME FUN PLACES TO VISIT
The cinema theatre effectSTORES MUST BUILD RELATIONSHIPS WITH CUSTOMERSSTORES MAY BECOME SMALLER AGAINREAL LIFE INDIAN EXAMPLE
Of
THE IMPACT OF INTERNET ON RETAILBIG BAZAAR DIRECT
COMBINES
REACH OF THE TRADITIONAL NEIGHBOURHOOD STORE &
BRAND NAME OF BIG BAZAAR
BIG BAZAAR DIRECT
NEIGHBOURHOOD STORE PERSON VISITS YOUR HOUSE WHEN YOU SMS
SHOWS YOU THE BIG BAZAAR DEALS ON TABLE
YOU MAKE YOUR CHOICE & BIG BAZAAR CONFIRMS THROUGH SMS
YOU PAY FRANCHISEE CASH
PRODUCTS DELIVERED IN THREE DAYSHOW CUSTOMER GAINS
GETS BIG BAZAAR DEALS EVEN IF THERE IS NO BIG BAZAAR STORE IN THAT TOWN
GETS BIG BAZAAR DISCOUNTS SITTING AT HOME
GETS HOME DELIVERYHOW FRANCHISEE GAINS
BIG BAZAAR BRAND GETS HIM SALES
EARNS 7 TO 9 % COMMISSION FROM BIG BAZAAR ON SALES
ZERO INVENTORY COSTS
NOMINAL FEE OF RUPEES 3 LAKH TO BECOME FRANCHISEEHOW BIG BAZAAR GAINS
ENCASHES BRAND BY GETTING REVENUE FROM TOWNS WHERE THERE IS NO BIG BAZAAR SHOP
GETS NEW SALES CHANNEL APART FROM DIRECT SALES
LEVERAGES LOCAL CONNECT OF FRANCHISEE TO GET BUSINESSBIG BAZAAR DIRECT
LAUNCHED IN MAHARASHTRA AT NAGPUR & AMRAVATI WITH 15 FRANCHISEES
NAGPUR NATIONAL WAREHOUSE OF FUTURE GROUP
NEXT MUMBAI, DELHI, HYDERABAD, AHMEDABAD
IS CURRENTLY IN TOUCH WITH 4600 APPLICANTS ACROSS COUNTRYBIG BAZAAR DIRECT
A BIG BAZAAR STORE STOCKS AN AVERAGE 30,000 PRODUCTS.
BIG BAZAAR DIRECT WILL INITIALLY OFFER 2000 PRODUCTS ACCESSORIES, FURNITURE, PACKAGED FOODS, ELECTRONICS
WILL ADD FOOD ITEMS AND GROCERY
WILL REDUCE DELIVERY TO SAME DAYWHAT CAN GO WRONG
DELAY AND ERRORS IN DELIVERY
BAD CONSUMER EXPERIENCE CAN HURT MOTHER BRAND
REVENUE GENERATION FOR FRANCHISEE NOT UP TO EXPECTATIONIMPACT ON TOURISM INDUSTRYTOURISM INDUSTRY
EUROPE 70% HOUSEHOLDS INTERNET ACCESS
INDIA 10% HOUSEHOLDS INTERNET ACCESS
TOUR OPERATORS & TRAVEL AGENCIES BECOMING REDUNDANT
GEENRAL PURPOSE TOURISM REPLACED BY NICHE TOURISMIMPACT ON HOUSING INDUSTRYHOUSING INDUSTRY
INFORMATION ABOUT NEIGHBOURHOODS AVAILABLE ON THE NET
INFORMATION ON BUILDERS AVAILABLE ON THE NET
INFORMATION ON HOUSEHOLD ARTICLES AVAILABLE ON THE NET
IMPORTANCE OF BUILDER HAS DECREASEDIMPACT ON INDUSTRY
BUYER POWER HAS INCREASED
SWITCHING COST HAS DECREASED
ENTRY BARRIERS HAVE DECREASED