IQ SCHOOL OF FINANCE

CFAP 03 – STRATEGY AND PERFORMANCE MEASUREMENT

BY MUZZAMMIL MUNAF | ACA | ADVISOR | TRAINER |
SUMMARIES AND MIND MAPS

EFFECTIVENESS OF ICT
E-Business
[E-business includes all aspects of e-commerce, but also includes work flows and movements of information within an entity. Internal processes are driven by e-business methods as well as external
relationships with customers, suppliers and other external stakeholders]

The impact of the internet on business

strategy and competition (Porter) Barriers to E-Business
Main business and marketplace models for delivering e-business [Although many companies engage in some form of e-business,
[Porter argued that two main factors determine the
profitability of a business entity; structure of the [The internet has given companies an opportunity to sell their goods or services to a large number of there are barriers to setting up e-business activities and
industry in which it competes and ability of the customers, and to find new suppliers. Following are the main types of business models] maintaining them so that they remain an effective way of
entity to achieve a sustainable competitive developing the business]
advantage.]

E-
procurement
As well as
Intermediary creating larger Advertising
Competitive Bargaining On-going
Providing companies markets for The internet
rivalry with power of Alliances of Set-up costs. operating
Threat of new electronic Their business consumer has also Customer
existing suppliers Bargaining suppliers It can be fairly costs.
entrants auctions is based on goods and created new relationships
competitors Suppliers are power of In some expensive for A website has No in-house
In many These are acting as services, opportunities Promotion The internet Time to
The internet able to use the customers markets, a small to be updated skills
industries, the E-Shopping websites agents for communicatio for advertising Opportunities provides Type of establish the
encourages internet to Customers are businesses company to business frequently, to system A company
barriers to (customers where selling the ns networks and are provided opportunities
greater increase the able to obtain have created establish a keep it might not
entry have buying goods customers can (similar) and computer marketing. by the chance for companies Some It takes time
competition. number of information alliances with website for interesting employee
been lowered. or services by auction goods products or systems have Companies to send to build products and to establish a
Companies clients or about the rival shared selling its (and accurate), individuals
By using the placing an for sale, and services of a created new can advertise promotional customer services are website that
provide a customers for products of websites for products and and it might with the
internet, new order on put in bids for large number opportunities their products messages by relationships, easier to sell customers
large amount their products. many different selling their taking be necessary knowledge or
competitors company's auctioned of different for business- or services on e-mail to for example by on the internet know about
of information As a result, the competitors products to payment by to keep skills to
can enter the website) items. eBay is companies, to-business search engines potential providing than others. and want to
about bargaining by using customers credit card, making special maintain a
market more perhaps the and attracting purchasing by such as customers. support, user visit.
themselves power of search over a wider debit card, offers to website.
quickly and most well- customers to linking up the Google, or on forums and
and their suppliers is engines. geographical Interswitch or encourage
more cheaply. known their website. computer the websites FAQ
products on likely to area. PayPal. customers to
example. (foodpanda, systems of of other
their websites. increase. revisit the site.
sastaticket.pk) companies companies.
with those of
their main
suppliers.

Always a mentor | Muzzammil Munaf Page 1 of 4

IQ SCHOOL OF FINANCE
CFAP 03 – STRATEGY AND PERFORMANCE MEASUREMENT
BY MUZZAMMIL MUNAF | ACA | ADVISOR | TRAINER |
SUMMARIES AND MIND MAPS

DESIGN OF AN E-COMMERCE WEBSITE

Design features such as The website is an

The system must allow
the ability to enlarge The website must be advertising medium as
The website must be Screens should also be users to interact with it, Website should be System must be
images of products, or kept up to date. For well as an electronic The system must be able
easy to use. The user visually attractive, to so that the users can available all the time integrated with all
obtain additional example, the availability store. It can be designed to reassure users that it
must be able to navigate encourage users to choose their own route with least possible necessary functions of
information about a of products must be kept in such a way that the is secure.
through the site easily. browse through the site. through the website downtime. the department.
product, may also be up to date. user's attention is drawn
easily.
very useful. to additional products.

E-MARKETING AND THE 7 P's OF MARKETING MIX

PRODUCT PRICE PLACE PROMOTION PHYSICAL ENVIRONMENT PEOPLE PROCESS

Some products sold on the Websites and e-mail are

In terms of e-marketing, the Buying goods or services by
internet can be customised This is more transparent on new ways of advertising
design of a website is internet is a process, and
so that they are constructed the internet and users can goods and services. Buying The internet does not
important, because visitors the quality of this process is
to the customer's often compare prices easily. Some goods, such as music, space on the websites of involve people in marketing
will not stay on a website if another element in the
specification. Additionally, video and software can be other companies or on in the sense that customers
Some websites are it is not attractive, difficult marketing mix for e-
products can be bundled, so delivered over the internet. search engines such as are communicating by
specifically designed to to navigate or fails to business. A sale must be
that related products can be Google can provide an computer with a website.
compare prices provide the information that followed up by an efficient
bought at the same time, opportunity for targeted
visitors are looking for. delivery service.
perhaps at reduced prices. promotion.

6 I's OF E-MARKETING

INTERACTIVITY INTELLIGENCE INDIVIDUALISATION INTEGRATION INDUSTRY STRUCTURE INDEPENDENCE OF LOCATION

To interact with the customer

through website. The internet can be used as a The internet introduces the possibility
The internet can lead to a re-
Getting visitors to the site to provide relatively low-cost method of The internet provides scope for of increasing the impact of an entity
structuring of the industry supply
details about themselves (and agree collecting market research data and In traditional media the same integrated marketing on a global market. Users of a website
chain. Disintermediation is the
to receive e-mails from the website data about customers and other message tends to be broadcast to communications. Many companies cannot easily tell from the website
removal of intermediaries such as
owner in the future), perhaps in visitors to a website. This data can be everyone. Communication via the are now considering how they whether it is owned by a small local
distributors or agents: this occurs for
exchange for additional information analysed to produce marketing internet can be tailored or integrate email response and website company or a large multinational or
example when a company starts
or a free service. information about what customers 'personalised' to the individual. call-back into their existing call-centre global company. This gives small
selling directly to end-consumers
Getting visitors to buy a product or buy, and what information on a or customer service operation. companies opportunities to sell into
through its website.
service and pay for it using the website interests them most. global markets.
internet.

Always a mentor | Muzzammil Munaf Page 2 of 4

IQ SCHOOL OF FINANCE
CFAP 03 – STRATEGY AND PERFORMANCE MEASUREMENT
BY MUZZAMMIL MUNAF | ACA | ADVISOR | TRAINER |
SUMMARIES AND MIND MAPS

Duplicate its existing brand identity online. However, if the quality of the internet site is poor, the brand could be damaged.

E-Branding
Extend the traditional brand by creating a slightly different version of the brand. For example, in the UK the BBC extended its name
image to its online services, giving the new services the slightly different name of BBC Online. This allowed the useful associations of the
BBC brand name to be retained, but also suggested to the customer that the services offered by BBC Online might be different

When an established company is planning to market

its products by internet for the first time, it has to
consider what to do about its brand identity. There Partner with an existing e-brand. For example, a chain of hotels could market itself online through an airline website and so associate
the hotels with the airline brand name.
are four choices.

Create a new brand for the web. The new brand name allows an entity to break free from the perceptions associated with the old brand
name. The old brand might be perceived by customers as too traditional and if there is going to be a successful, dynamic presence on the
web, a new brand is needed without associations of tradition and conservatism.

CUSTOMER RELATIONSHIP MANAGEMENT

The purpose of customer relationship management (CRM) is to help companies to understand better the behaviour of their customers, and modify their marketing operations to service customers in the best way possible.

Provide customers with a

better experience when they
contact the company.
Collect information for Monitor key customer
Store the customer Access the information, often Use the analysis of customer Customer service staff are able
identifying individual management performance
information and keep it up-to- instantly, whenever it is Analyse customer behaviour behaviour to develop a more to provide this type of
customers and categorising indicators, such as the number
date. needed. effective marketing strategy. experience because they have
their behaviour. of customer complaints.
access to customer's record
and know their previous
requirements.

Always a mentor | Muzzammil Munaf Page 3 of 4

IQ SCHOOL OF FINANCE
CFAP 03 – STRATEGY AND PERFORMANCE MEASUREMENT
BY MUZZAMMIL MUNAF | ACA | ADVISOR | TRAINER |
SUMMARIES AND MIND MAPS

BIG DATA

Big Data is the term used to describe huge volume of both structured and unstructured data that is so large it is difficult to process using traditional database and software techniques.

Three V's of Big Data Additional four V's of Big Data

Velocity refers to the incredibly

high speed that data is created, Variety refers to the wide range
stored, analysed and visualised. of data types and sources
- for example when you post a reflected within big data. Big Volume refers to the huge Visualisation is particularly
Variability - whilst big data Value - the huge volume of
photo or comment on social data comprises largely volumes of new data generated challenging as it refers to
Veracity - data needs to be reflects a wide range (variety) data that big data reflects is
media. The post becomes unstructured data which every second. All this new data making the vast amount of
correct and error-free in order of sources its meaning can also capable of creating huge value
immediately available around requires a different approach needs processing, storing and data comprehensible in a
to be reliable and relevant. vary widely depending on the for organisations, societies and
the world to users using the and technique to store raw to be made readily accessible manner that is easy to read and
context. consumers.
same social media platform. data. Furthermore, the wide for searching and analysing. understand.
The speed at which new data is variety of data facilitates new
generated across the globe is ways of thinking and analysing.
incredible.

How Big Data can create value for organisations? Use cases of Big Data

- Finance (bringing value to the

organisation)
Enabling experimentation to - Real-time stock market insights
Replacing/supporting human
discover needs, expose Segmenting populations to Innovating new business models, (algorithm trading)
decision making with automated
variability and improve customise actions products and services.
Creating transparency algorithms - Financial modeling (predictive)
performance Big data enables highly specific Big data enables companies to
Improved accessibility for relevant Sophisticated analytics can - Customer analytics
Organisations are able to collect segmentation to be developed to enhance existing products, create
stakeholders in a timely manner substantially improve decision (understanding customer needs &
and analyse ever more accurate support tailored products and new products and services and
can create value. making, minimise risks and unearth preferences)
and detailed performance data on services that precisely meet those invent entirely new business
valuable insights that would - Risk Management and Fraud
everything from personal sick days needs. models.
otherwise remain hidden. Detection
to product inventories.
- Analysing financial performance
& growth

Always a mentor | Muzzammil Munaf Page 4 of 4