從企業角度探討O2O的關鍵成功因素 - 政大學術集成

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(1)國立政治大學資訊管理研究所碩士學位論文指導教授:尚孝純博士 Dr.Shari S.C.Shang. 從企業角度探討 O2O 的關鍵成功因素. The Critical Success Factors of Online to Offline Business Model – A Business Perspective. 研究生: 楊欣庭 Abby S.T.Yang 中華民國一百零肆年七月.

(2) 論文致謝論文即將完成之際，內心感受難以著墨。喜悅，離愁，感激交織在這份致謝中。首先，最要感謝的人就是我的指導教授-尚孝純老師，初次見面尚老師時，老師獨特的氣質最讓我印象深刻，說話慢條斯理卻又很俏皮，不如以往老師的印象是莊嚴傳統，也奠定我在 2 年研究所裡想跟隨學習對象的期待。因為尚老師擁有豐富的社會工作經驗，因此在她帶領下閱讀各式各樣有趣的國內外個案，更幫助我了解學習理論框架和業界實際的運作方式。在此篇論文是採用個案研究，在尚老師的協助下，我拜訪了許多在業界的學長姊，這一階段要感謝的人很多。我還要感謝怡海科技、Yahoo、台新銀行、全家、李奧貝納、麥當勞和 IBM 公司，因為相關業界的人士才讓我的論文能順利連絡到訪談的對象並完成我的論文，除此之外，我還從你們的經驗分享中，讓我不斷思考自己人生的規劃，並也替我職涯發展問題解惑，是我在從事論文訪談中所獲得的意外寶藏，我由衷得感謝你們在工作上百忙之外還願意撥冗寶貴的時間來協助我。在論文口試中，感謝淡江大學的陳雅鈴老師和政治大學的陳聖智老師，除了撥冗參與口試，也提供我很多研究上寶貴的意見，還不時得幫我加油打氣！同時，學校的朋友同學、學長姊、學弟妹在論文和學業的壓力下互相砥礪和支持，一起談心分擔解憂，讓我在每一次的挫折中再站起來。研究所的 2 年，我也非常開心能與陳怡臻、劉翰徽、莊英杰成為同實驗室的好夥伴，原本以為苦悶的研究生生活，卻因為你們常常歡笑不斷，曾經一起出遊、一起實習、一起熬夜寫作業和時常談心，謝謝你們這兩年的陪伴，雖然畢業，但將會是我們友誼另一個開始。最後，要感謝的就是我身邊陪伴的人。謝謝爸爸媽媽從小細心的栽培我，給予我健全和學習成長環境，從小良好的教育方式深深的影響著我，現在所得到的成果都應歸因於爸媽無怨無悔的付出; 謝謝姐姐擔當我人生的指引燈，讓我總會在人生道路上找到自己的出口; 謝謝男友，在我壓力大的時候，成為我精神上的支柱，替我分憂並時時安慰我; 謝謝周遭親愛的你們，陪伴我走到學業即將完成的這一刻。僅將這本碩士論文,獻給我至愛的家人、老師、同學朋友,表達我最誠摯的謝意,感謝你們的支持與鼓勵! I.

(3) ABSTRACT Online-to-Offline (O2O), a brand-new business model that drives online visitors to purchase in-store by offering services online, has received a great deal of attention. In addition to well-known retailers and ecommerce businesses, the O2O business model has been adopted by companies across a variety of industries, such as Target and Macy's in retailing, GAP and Uniqlo in apparel, Warby Parker in accessories and McDonald’s and Instacart in food. However, less attention has been paid in the literature to the clear definition and scope of both online and offline businesses in the O2O business model, and there is limited understanding of how to build a successful O2O project. The objective of this study is to organize comprehensive information for the O2O business model and to examine the critical success factors (CSFs) for building O2O business models. Based on the literature and case studies of the O2O business model, this study builds a framework for data collection and is conducted in two stages. First, we build a preliminary finding regarding the five major types of O2O business models—(1) Commerce O2O; (2) Try-on O2O; (3) Promotional O2O; (4) Experience O2O; and (5) Crowdsourcing O2O—based on the literature and more than 50 practical cases and select five promotional O2O companies in Taiwan as our focus. Second, we conduct an in-depth case study on selected cases related to possible CSFs for successful O2O implementation. The critical success factors (CSFs) for building O2O business models are–(1) Four factors of technological dimension- User Interface design, Ease of use application, Accurately located function and IT load balancing capability; (2) Five factors of management dimension- Management support, Good CRM system, Strategic execution capability, Actively involve end users in solution design and Measure, monitor, and track; (3) Four factors of organization dimension- Complete staff training, Seamless the process of online and offline channels, Reinvent the company's future and Establish a clear project goal. The research results not only provide a complete O2O overview but also verify and enhance the list of CSFs for building O2O business models. It is hoped that we can gain a better understanding of the O2O business model from these cases and thus help companies develop effective plans for building O2O projects. Keywords: Online-to-Offline (O2O), Online, Offline, e-commerce, business model II.

(4) 摘要 O2O 是一個嶄新的商業模式，透過網路上的服務提供導引線上消費者到線下店面進行消費或是取用實體服務。在近年，O2O 迅速成為眾企業討論的話題。除了知名零售和電子商務企業，O2O 商業模式以在各行各業中逐漸發展，舉例來說，知名零售業的 Walmart 和 Target; 服飾業的 Uniqlo 和 GAP; 配件-眼鏡的 Warby Parker 和餐飲業麥當勞和 Instacart。業界充滿林林種種的實際個案，但學術上卻缺乏完整的研究來說明 O2O 的現況，我們不了解 O2O 的定義和範圍，甚至對於企業來說，到底該如何成功地實現 O2O 的精華。此篇研究的目的是希望能提供企業更具體了解 O2O 的概觀，並可以檢視在規劃一個 O2O 專案的發展需要有哪些關鍵成功因素。基於之前少數的文獻和大量從網路、報章雜誌所蒐集的業界個案，我們的研究透過這些資料蒐集分為兩階段研究。第一階段，根據蒐集的資料，我們建立五種型態的 O2O 商業模式 –(1) Commerce O2O; (2) Try-on O2O; (3) Promotional O2O; (4) Experience O2O; and (5) Crowdsourcing O2O 。我們專注在 promotional O2O 的五家在台灣企業的個案研究。第二階段，根據文獻我們先定義出可能的關鍵成功因素列表，再舉辦深入的企業訪談，透過訪談的方式來驗證並修改原本的關鍵成功因素列表，為 3 個分類-(1)4 個技術關鍵成功因素: 系統操作友善, User Interface 設計, 精確的定位, 穩定的 IT 系統承載的能力;(2)5 個管理關鍵成功因素-管理者支持, 客戶關係管理, 使用者參與方案設計, 專案執行的高貫徹度, 專案的監控管理追蹤;(3)4 個組織關鍵成功因素-完整的人員訓練, 線上線下的流程無縫整合, 不斷創新與思考方向, 明確的專案目標。最後，我們希望這篇研究可以幫助企業更了解 O2O 商業模式，並且幫助他們有效的發展 O2O 專案。. 關鍵字: Online-to-Offline (O2O), 線上, 線下, 電子商務, 商業模式. III.

(5) CONTENT ABSTRACT ........................................................................................................................................... II TABLES.................................................................................................................................................VI CHAPTER 1: INTRODUCTION ........................................................................................................ 7 1.1RESEARCH BACKGROUND ......................................................................................................................... 7 1.2 RESEARCH MOTIVATION .......................................................................................................................... 9 1.3 RESEARCH OBJECTIVES ..........................................................................................................................10 1.4 RESEARCH PROCESS ...............................................................................................................................11 CHAPTER 2: ONLINE TO OFFLINE (O2O) BUSINESS MODEL ............................................12 2.1 ONLINE BUSINESS IN O2O BUSINESS MODEL ...................................................................................12 2.2 OFFLINE BUSINESS IN O2O BUSINESS MODEL ..................................................................................14 2.3 TYPES OF O2O BUSINESS MODEL ........................................................................................................17 2.4 THE EFFECTS OF THE O2O BUSINESS MODEL...................................................................................23 2.6 TECHNOLOGIES FOR THE O2O STRATEGY ..........................................................................................25 2.7 O2O IMPLEMENTATION .........................................................................................................................26 CHAPTER 3: RESEARCH METHODOLOGY ...............................................................................35 3.1 RESEARCH METHODOLOGY ...................................................................................................................35 3.2 RESEARCH PROCESS ...............................................................................................................................38 3.3 COMPOSITION OF DELPHI PANEL..........................................................................................................41 3.4 DATA COLLECTION...................................................................................................................................42 CHAPTER 4: RESEARCH RESULTS ..............................................................................................49 4.1 TECHNOLOGICAL DIMENSION ................................................................................................................49 4.2 MANAGEMENT DIMENSION....................................................................................................................50 4.3 ORGANIZATION DIMENSION...................................................................................................................52 CHAPTER 5: CONCLUSION ............................................................................................................55 5.1 RESEARCH SUMMARY..............................................................................................................................55 5.2 RESEARCH CONTRIBUTION ....................................................................................................................56 5.3 LIMITATION AND FUTURE RESEARCH ...................................................................................................56 REFERENCES .....................................................................................................................................58 APPENDIX 1 ......................................................................................................................................62 APPENDIX 2 ......................................................................................................................................83 IV.

(6) APPENDIX 3 ......................................................................................................................................87 APPENDIX 4 ......................................................................................................................................90. V.

(7) TABLES Table 1 Description of Online businesses in O2O business model ............................16 Table 2 Description of Offline businesses in O2O business model ............................16 Table 3 The framework of types of O2O project ...............................................................18 Table 4 Technologies adopted in O2O strategy .................................................................27 Table 5 Critical success factors for O2O implementation ..............................................30 Table 6 Promotional O2O business model case studies in Taiwan ............................39 Table 7 Research Process ...........................................................................................................41 Table 8 Description of panel participants............................................................................42 Table 9 The Delphi analysis procedure.................................................................................43 Table 10 Suggested factors provided by a panel of experts .........................................45 Table 11 The result of technological dimension ...............................................................47 Table 12 The result of organization dimension ................................................................47 Table 13 The result of management dimension ................................................................48. VI.

(8) CHAPTER 1: INTRODUCTION 1.1Research Background What do Groupon, McDonald's surprise alarm app and Yahoo chaoji shangcheng’s ecommerce application (app) have in common? They find consumers online and bring them into offline stores for offline services. The Groupon website (Kim, 2015) persuades online shoppers with various types of coupons and drives them to purchase from its offline partners. McDonald 's surprise alarm app (AsiaOne, 2014) allows customers not only to wake up on time but also to receive an opportunity for a discounted breakfast. In Taiwan, Yahoo chaoji shangcheng ecommerce has developed an app to send information about discounted products to shoppers’ smartphones through location-based service (LBS) technology and drive those shoppers to purchase in nearby stores (Horwitz, 2014). In the modern era, several Online-to-Offline (O2O) practical cases appeared in our surroundings. According to the Forrester Research Report (Mulpuru, 2014), "Web-influenced sales" means that online marketing and research will prop up sales in physical stores. The report also estimates that online and Web-influenced offline sales combined represented 42 percent of total retail sales in 2009, a percentage that was predicted to grow to 53 percent by 2014, when the Web was predicted to influence $1.4 billion worth of in-store sales (Schonfeld, 2010). The MIT Technology Review report (Regalado, 2013) has also learned that 80% of shoppers prefer to check product prices online. This information tells enterprises that consumer purchase behavior has evolved: consumers rely on a great deal of online information before making a purchase decision. Today, marketers develop various types of digital marketing strategy, such as releasing digital coupons, optimizing search results and utilizing LBS technology, all of which attract customers to offline stores. Consequently, the number of O2O applications has been growing daily. In the meantime, offline to online businesses are also growing. TechCrunch, a study (2010) of consumer behavior in the U.S., notes that although frequent shoppers buy products online in the U.S., there remain a large number of frequent shoppers who spend their money in offline stores. This phenomenon represents a new opportunity for traditional offline companies to transfer their marketing strategy to the online world. This type of offline-to-online model has flourished recently: for example, Macy's places a QRcode on each of its products, thus 7.

(9) allowing consumers to scan those products and quickly obtain information online before they purchase. Walgreens, in cooperation with Foursquare, locates consumers who are near their offline stores and then sends them coupons to drive them to make in-store purchases. McDonald's surprise alarm app offers coupons to consumers: when the app wakes them, customers receive a discounted breakfast in offline stores. Whether online-to-offline or offline-to-online, China’s ecommerce markets are experiencing exponential growth. Consider, for example, the most popular ecommerce company, Alibaba. That company has prompted numerous physical stores to go online, enabling business-to-business (B2B) and business-tocustomer (B2C) transactions over the Internet and delivery of goods through offline logistic services. According to iiMedia Research (2012), The Chinese O2O market reached 98.7 billion yuan (approx. US$15.8 billion) in 2012, representing a growth of 75.5 percent from 56.2 billion yuan (approx. US$9 billion) in 2011. This study defines the O2O business model based on previous literature. An O2O business model connects offline business opportunities with the Internet, situating the Internet as the front counter of offline trade (Yingsheng et al, 2014). Zhang (2014) notes that the O2O business model is characterized by its information flow and cash flow online and its logistics and commerce flow offline. With the rise of mobile technology, Margaret Fitzgerald (2012) states that the O2O business model uses online and mobile technology to drive offline local sales or redemptions. In simple terms, O2O is offline purchasing propelled by the Web. To summarize the different aspects of an O2O business model, this study defines that business model as a combination of offline business and online commerce, online websites or mobile technology, which results in offline purchases or fulfillments. Online commerce not only provides information and services but also offers discounts. The actions trigger information flow or cash flow happened. Offline businesses include physical stores (e.g., a department store, a convenience store, and so on) and service in the real world. The service causes either logistics or commerce flow happened, and possibly creates more store-traffic and transactions. Because the growth of the O2O market is inevitable, firms must focus on building a seamless experience between the online and the offline to acquire and retain customers. 8.

(10) 1.2 Research Motivation In recent years, industries have been confronted by great changes brought about by the Internet, and O2O strategy is an emerging pattern in this regard. There are several types of O2O business models. One type of O2O business model is exemplified by companies such as Amazon, eBay and Spoon Rocket, all of which provide a wide selection of products on the Web. Customers place an item into a shopping cart, submit the order and then wait for delivery. These companies now offer pick-up service in offline stores so that consumers can retrieve their items from local stores. Another type of O2O business model involves ecommerce companies that sell non-digital products (Bell et al, 2014)—for example, apparel and related categories that involve fit and feel, or products that involve taste and texture—for which customers value a physical inspection. Such business include Ebay Fashion app, Tissot Reality and Warby Parker, which provide a try-on service to allow customers to experience items, thus reducing uncertainty and increasing willingness to buy. Digital promotion marketing has become both popular and common. Starbucks Taiwan offers digital coupons in many places on the Internet to provide customers with buy-one-get-one-free deals in offline stores. Retailers such as Walgreens, Target and Yahoo Taiwan chaoji shangcheng ecommerce also attract consumers to purchase in retail stores by offering coupons on their Websites or mobile apps. Traditional offline companies have begun either to create websites or to develop mobile apps with integral product information, thus simplifying the buying process. For example, eBay-RedLaser’s barcode scanning technology allows users to compare products' prices (offline). Users scan a barcode on an item at a store and then automatically access eBay listings of the product in the marketplace (online). The RedLaser App allows offline users to find a desired product in a nearby store at a lower price through LBS technology or to purchase the product on eBay. (Brynjolfsson et al., 2013). The final type of O2O business model is one in which ecommerce companies serve as a platform to match the demand- and supply sides, creating a network of individuals to share a resource. Prominent companies that use this business model include the accommodation platform Airbnb, the private taxi service Uber, and the coupon service Groupon. Many companies also offer car rentals, office space, money lending, venture capital and professional and personal services.. 9.

(11) As seen from the above cases, the various types of O2O business models have been adopted across the retailing, apparel, accessory, and food industries. All of these models were all developed by various types of firms, leading to different implementation methods and effects. Therefore, there is a need to understand the different types of O2O business models. In the Internet era, it is critical to understand that customers’ shopping preferences have become dynamic and changeable. They want not only the advantage of online shopping, such as a wide selection, recommendation mechanisms, product reviews and ratings, but also the advantage of offline stores, such as no waiting time, customized service, and a touch-and-feel experience. Another O2O-related risk is the uncertainty of inventory in offline stores. For example, GAP allows consumers to select and then reserve five items in an online order. Later, customers try on the items in-store and make a purchase decision. GAP stores must be accessible to customers and must hold the inventory. This sharply reduces the risk of mis-supply. Seamless online and offline integration is another concern of O2O projects (Chu, 2013). Apple established its online and offline channels as entirely separate organizations. Fortunately, thanks to Apple’s innovative products and unparalleled service, it did not make enormous mistakes. However, customers begin to expect more from the company. Apple upgraded its collaboration between its online and offline businesses, enabling sales staff to check a store’s inventory and reserve items online for in-store purchases (Rigby, 2011). Apple also redesigned its store environment, replacing information cards near demonstration products to give consumers an integral offline service. To succeed in O2O projects, as demonstrated by the above cases, firms should consider CSFs when building O2O business models. These factors might involve technology, management, and organizational dimensions. These needs lead us to consider the critical factors for building a successful O2O business model. 1.3 Research Objectives Before companies invest more time and money in developing and deploying the O2O business model, the following questions should be asked: What role do I want the O2O business model to play in my business brand? How should I develop the O2O business model? How can I bring online shoppers into the store and support offline sales? What factors related to making an O2O plan should concern me? How. 10.

(12) can I convert Internet users into offline customers? Due to less discussion in the previous literature, this study will provide businesses with answers. The objective of this study is to build a deep understanding of the practice and management of the O2O business model. The key questions are as follows: . What are the types of O2O business models?. . What are the CSFs for building O2O business models?. 1.4 Research Process The remainder of this paper is organized as follows. First, this article developed an online and offline framework based on a review of literature and business cases in the relevant years. Next, this study contributes 5 simple types of O2O business models and develops a CSF research framework for each type of model. This research will enable businesses to examine their O2O strategies.. 11.

(13) CHAPTER 2: ONLINE TO OFFLINE (O2O) BUSINESS MODEL 2.1 Online Business in O2O Business Model An online website can be viewed as a delivery mechanism for a collection of services that facilitate customers’ ability to complete an overall purchase process. There has been an explosion in the worldwide use of handheld devices such as smartphones, tablets and other handheld Internet access devices. These devices are becoming another communication and promotion channel between businesses and customers (Shankar et al., 2010). To reach new customers, firms promote information about their items and convey messages about brand image, competitive pricing and product features via multiple channels, such as social networks (Facebook, Twitter), websites and mobile apps. Advanced technologies on mobile devices provide a collection of functions that provide customers with better shopping experiences (Brynjolfsson et al., 2013). In doing so, value-added services will enhance what customers derive from their purchases and improve customer loyalty. (Rose et al., 2012) This chapter will provide a complete view about what firms do online in the O2O business model by collecting more than 50 cases into Table 1 to describe online businesses’ activities, use of media, information delivered, and objectives. . Media used. Because the Internet provides a new opportunity for customers to find product information and quicker, more convenient purchasing environments, most established offline store have established websites to increase their revenue. In addition, mobile technology—especially mobile devices—gradually changes customers’ purchasing behavior and expectations (Brynjolfsson et al., 2013). Business has begun to develop apps on mobile devices because customers take those devices with them everywhere and at all times. Books.inc, which began as a purely online bookstore in Taiwan, has developed a mobile app to offer customers a service that enables them to search for a book price at the Books.inc online shop by scanning the UPC of a copy of the real book. . Activity. In these business cases, searching for product information is not the only way to attract customers to purchase offline. Clients also make service reservations 12.

(14) online: examples of businesses that engage in such transactions include the restaurant reservation firm EZtable, the meal order service Mos Burger (through its Mos Order app), the accommodation rental service Airbnb and the car reservation firm Uber. Some firms create games in which they interact with customers via websites or apps to offer coupons, such as Coca-Cola's Chok! Chok! Chok! and iButterfly. Another service groups strangers together to enjoy offline services, as in the case of Grubwithus. Businesses also determine what a customer needs via his or her historical record online and provide a customized product or service through a physical channel, as in the case of Trunk Club. China-Walk.by shows a consumer a suitable product located nearby on its ecommerce platform through LBS technology after the customer enters the desired product's condition. Customers can easily access any type of physical store on Walk.by without waiting. . Information delivered. Anna (2007) noted that there are several factors that affect customer use of the Internet for information searches. Indeed, previous researchers focus on a customer’s buying process/search (pre-purchase) and purchase (Kushwaha & Shankar 2007) stages. They conclude that delivering information online to customers is a crucial stage; our research collects which information will be delivered by online businesses. Coupons are widely used by customers while shopping in physical stores. Shoppers obtain coupons via a website or mobile app and then exchange their gift or product for one at a discounted price. Another type of information relates to location. Firms attempt to convey promotional information about an item based on a customer's location. Customers can also search for the location of a nearby store to purchase products that they need. To make customers’ buying processes easier, some apps help them compare product features before they make purchase decisions. Through many business cases and previous studies, we have developed a complete framework to explain what happens online in the O2O model. This study examines a number of cases within the framework shown in Table 1. For example, users can scan a barcode on an item at a store on eBay’s RedLaser app and then automatically accesses any available eBay listings of the product. The RedLaser app provides navigation to the location of the nearest store. The service not only makes the buying process more convenient but also compares products easily 13.

(15) (Brynjolfsson et al., 2013). As another example, Coca-Cola's "Chok! Chok! Chok!" is a successful promotional campaign in Hong Kong. Coca-Cola created a game within a smartphone app to allow teens to catch tumbling bottle caps straight from their television screens to win instant prizes and coupons. 2.2 Offline Business in O2O Business Model The O2O business model is a brand-new model that integrates ecommerce and physical services. Due to changeable customer behavior, many ecommerce businesses are beginning either to open physical stores or to cooperate with other (offline) businesses. Some customers prefer to purchase in physical stores because they can retrieve their items with no waiting time (i.e., instant gratification). Previous studies show that customers prefer to touch and feel nondigital products in-store (Zhang., 2008. Bell et al, 2014). To increase customer satisfaction and help customers make purchase decisions, it is critical to reduce product-related uncertainty. It is also important for businesses to build a good relationship with customers and improve customer retention when they are operating physical stores and wish for customers to intend to repurchase. The primary objective for offline business in the O2O model is that firms offer discount or product information to customers online and then drive them to make purchases in offline channels and increase revenue in offline channels. Table 2 describes the business strategies, physical channels, activities and objectives related to offline businesses. . Business strategies and physical channels. Previous researchers note that uncertainty about non-digital attributes is a key barrier to consumers' willingness to buy online (Bell, Gallino, & Moreno, 2014). Bravo, Iversen and Pina (2011) argue that the advantage of physical retail stores is their uniqueness in both providing instant gratification and allowing consumers to touch and feel merchandise. Therefore, some purely online businesses have expanded to offline channels, a move that is referred to as "business expansion". The fashion eyewear company Warby Parker’s strategy to deliver products to customers includes “pop-up” stores and a free home try-on program (Bell, Choi and Lodish, 2012). Another strategy, "Business alliance", refers to a relationship between an ecommerce company and an offline business in which the businesses work together to develop a more engaging iBeacon channel and digitally 14.

(16) connected shopping experience for consumers. China Alibaba cooperated with Intime Retail to put merchandise in front of consumers. EZtable connects its business partners—restaurants—with customers. . Activities. Most firms provide coupons to Internet users to convince them to exchange coupons for merchandise or other services. When customers visit an offline store, salesmen must help them both to find a suitable product and to have a convenient shopping experience. To reduce online shoppers’ uncertainty, some businesses provide a service through which a customer can reserve products online and try them on offline. For instance, Trunk Club ships a handpicked collection of shoes, pants, and shirts via FedEx to customers who have reserved the merchandise online. Customers are able to try on at home, keep the clothes that they want and return the items that do not fit. Another company, for example, FoodPanda in Taiwan, helps customers reserve restaurant meals online. After the meal is completely prepared, FoodPanda assigns a nearby driver to pick up the meal in store and delivers it to the customers. Another popular business, Uber, picks up passengers at any place within a few minutes of being contacted. BESTSELLER, a fashion company, places a QRcode on every product in retail stores. Customers scan the QRcode of a product in which they are interested. These scanning records will be sent to the front platform. Knowledgeable sale staff members then offer personal recommendations to help customers purchase, based on data collected from the front platform. Another common service in physical stores is offering free Wi-Fi to visitors. E-Mart, a Korean retailer, creates Wi-Fi Hotspot balloons, which are flown on trains. When customers use their smartphone to connect with the Wi-Fi, they can download a coupon and use the retailer’s free Wi-Fi to shop online, with the purchases delivered to their home or office. You will find that there are many O2O tactics that are used both online and offline. The most important of these tactics is firms’ seamless online/offline integration to provide shoppers with a better shopping experience. We now can see exactly what it is that businesses do offline in the course of their O2O projects, as shown in Table 2. For example, consider Uber, which offers physical service offline—i.e., a pick-up service. Due to Uber’s speedy pick-up time and special high-level cars, customers experience high levels of satisfaction. 15.

(17) Table 1 Description of Online businesses in O2O business model Media Used. Activity. Information Delivered. Objective for Business.  Kiosk.  Browse. . .  Online.  Search. Website.  Reserve. The particular location (Where to buy). . Product/.  Game. Information. device.  Group. price, review). APP.  Diagnose/ Ask.  TV. . questionnaire. Coupon. points/.  Navigate. Barcode.  Recommend. .  Compare. . (feature,. /. item's. QR. information. effectively . Reward. Product’s. To facilitate customers comparing and searching. Virtual. currency/.  Collect. visitors. Service.  Mobile. To attract more online. code/. To make a convenient buying process. . To strengthen customer loyalty. comparison . of brand feature, price, rating and review. To. improve. customer. retention . To. reinforce. brand. awareness. Table 2 Description of Offline businesses in O2O business model Business. Physical Channel. Activity. . . Objective for Business. Strategy . Expansion. . Alliance. . Physical. Department. Exchange. store . service. Convenient. . store. or. . return products. experience. Interact. access to product. with. salesman. . Pop-up store. . Try-on. . Exhibition. . Products/. . Home. Services. . Restaurant. Delivered. . Retailer. . Pickup. . Cafe. . Connect free Wi-. . Showroom. . Scan. . physical. To increase revenue of. To drive online visitors to offline store. . To. increase. customer. satisfaction . To. strengthen. customer. loyalty QRcode/. . UPC. To. improve. customer. retention . To. reinforce. awareness 16. via. offline store. Fi . To have touch-and- feel. brand.

(18) 2.3 Types of O2O Business Model The O2O business model is a brand-new commerce model that is interesting to firms across various industries. We can easily access an introduction to either the O2O business model or new services that use an O2O strategy from various research reviews, technology news and reports, some of which appear in our daily lives. Therefore, the early stage of this study described 50 case studies (refer to APPENDIX 1) across industries and countries, including each case study's sales scenario, media, short description, commerce cycle and resources. To make it easier to understand the scope of O2O world, we develop a framework of the types of O2O business models, which are shown in Table 3. To classify O2O business models using practical cases, we should use a set of features or parameters to characterize each type of model. To classify the types of O2O business models, we characterized each type according to its model’s objective.. 17.

(19) Table 3 The framework of types of O2O project O2O Types. Project Goal. Description. Case study. Transaction O2O. Retailers provide a comfortable. Businesses provide product information online (about. Ebay.com (Retailing),. shopping experience that allows. which products best suit the customer) and complete. Qinqniancaijun 青年菜君(Food),. consumers to select and purchase. product fulfillment offline. There are two subtypes of. Book.com (Book),. products online and wait for the. O2O that represent how businesses manage product. Spoon Rocket (Food). item come to them.. fulfillment: (1) pick up in-store, or (2) deliver to home.. Amazon (Retailing) GAP (Apparel). Try-On O2O. Ecommerce companies provide a. More and more companies create an appealing. Ebay Fashion app (Apparel),. method to make customers put. application adopting new technology that shoppers can. Tissot Reality (Apparel),. on apparel and accessories.. browse, buy, and even virtually “try-on” clothing from it.. Tesco F&F virtual Fitting Room(Apparel), Warby Parker (Accessory). 18.

(20) Promotional. Firms attempt to persuade online. (1) Target marketing O2O. Walgreens (retailing),. O2O. visitors to purchase offline by. Most O2O cases appear in the retail industry. Taking. Taiwan Shin Kong Mitsukoshi. providing useful promotional. advantage of data such as location, membership. Department store. information to customers. Two. information, shopping history, shopping behavior and so. Yahoo chaoji shangcheng ecommerce. subtypes of this O2O include (1). on from multiple channels will provide savvy business. app (retailing),. target marketing O2Os, and (2). the ability to target their promotions to existing. Mcdonald's surprise alarm app (Food),. alien marketing O2Os.. customers.. Starbucks coupon (Beverage) Taishi Bank (Banking). (2) Alien marketing O2O. UNIQLO LUCKY LINE. Firms do not use much data; instead, they develop. (Clothing),. something fun and interesting as an easy way to attract. Cocacola Chok!Chok!Chok! (Beverage). public and convince consumers to obtain a coupon or. Family FamiPort (Retailing). discount information online and then bring their coupon or information to make an in-store purchase. Complementary. Firms provide a service via. Offline companies open online shops and then place. Macy’s (Retailing),. O2O. mobile app to help customers. products/services information online. In addition,. BESTSELLER (Clothing),. quickly obtain product. several companies develop apps to make consumers’. Come to book app 博客來快找 (Book). information in an offline store.. buying processes easier.. 19.

(21) Crowdsourcing. Ecommerce companies lower. Ecommerce companies create websites or mobile apps. Uber (Transportation),. O2O. their operation expenses by. that concentrate on the same types of products/services. Instacart (Retailing),. harnessing a network of. to serve as a platform that connects the demand side. KitchSurfing (Food),. resources, such as offline. (e.g., consumers) with the supply side (e.g., individuals,. Airbnb (Rental),. partners and individual. restaurants.) Consumers enjoy services offline if the. Homejoy (Cleaning),. consumers.. match is successful.. EZTable (Food) Groupon (Internet). 20.

(22) Five types of O2O business model: (1) Commerce O2O When the Internet began to influence the market, ecommerce rapidly became a new type of shopping. Customers have a wide selection of products and easy access to search engines to obtain information and purchase whatever they want online at home—or anywhere. Businesses provide product information online (about what products best suit customers) and engage in product fulfillment offline. Now, ecommerce is involved in shopping. To satisfy customer expectation, ecommerce businesses offer several delivery options. There are two sub-types of models according to which businesses engage in product fulfillment. Generally, customers either visit a physical store to pick up items or have their items delivered. For example, Book.com, an online bookstore in Taiwan, has worked with convenience stores. When consumers reserve books online, they can select to have the books delivered by the ecommerce merchant to a particular convenience store. (2) Try-On O2O As mentioned above, consumers prefer to touch and feel merchandise that has non-digital attributes. A non-digital attribute—for example, the fit and feel of apparel or the taste and texture of a product—is difficult to fully assess without a physical inspection. To avoid the weakness of showrooming, ecommerce extends a physical channel or develops home-try services so that consumers can try on an item before they purchase. Besides, a development of augmented reality (AR) is being to superimpose different clothes or outfits and see what suits you. Several companies adopted Augmented Reality technology (AR) to create a virtual try-on service on website, mobile app or Kiosks in store. Watch Company Tissot have incorporated AR into their service that helps Australian shoppers try-on their watch virtually. AR try-on service reduces the customer's uncertainty of apparel items and offers unlimitedly mobile try-on service. EBay launched a fashion app to let shoppers browse, buy and even virtually "try on" clothing the site’s new, designer, branded and vintage merchandise. It also shows the latest fashion trend on the app, users can just tap the outfit to search for similar items on eBay. 21.

(23) (3) Promotional O2O Consumers’ multiple-channel shopping behavior is spurring innovation in how firms provide information and products. Information promotion has become a critical stage for consumers to make purchase decisions. In promotional O2O, we classify two subtypes of models. The first subtype is target marketing O2O (for known customers). Most O2O cases appear in the retail industry. Retailers pay a great deal of attention to data application, such as location, membership data, shopping history, shopping behavior and so on, from multiple channels, thus providing savvy business with the ability to make targeted promotions to existing customers. The second subtype is alien marketing O2O (for unknown customers). Firms do not use many data applications. They develop some useful or fun function to allow consumers to obtain a coupon or discount information easily from websites, social networks, apps, online catalogues and so on; these coupons and information will attract them to offline stories to make their purchases. One example of a target marketing O2O is Yahoo’s chaoji shangcheng ecommerce app, which allows consumers to scan UPC codes to determine whether discounted products are available nearby and if so, at what price. The app locates customers using LBS technology to offer targeted promotional information, an appropriate shop or a suitable product to encourage purchases. One example of an alien marketing O2O is the popular case study of McDonald’s surprise alarm app, which is an app developed by McDonald’s that connects to a user’s alarm clock. Users download the app and when it begins to ring in the morning, users can receive an opportunity for a discounted breakfast. (4) Complementary O2O Customers’ shopping behavior has become both dynamic and ubiquitous. The buying process is no longer limited to online and offline experiences. Customers can obtain information via an app (i.e., online) while “on the go”, experience the item at an offline retail store, purchase it on a website after sales staff provide a recommendation, and wait for the item to come to them—all without picking up the item with their hands. Companies began to develop various apps to attract customers and to seamlessly connect their online and offline buying experiences.. 22.

(24) Offline companies open online shops to place product/service information online and to place promotional information to encourage customers to purchase offline. Moreover, several companies have developed apps to make it easier for consumers to purchase easier while “on the go”. For example, an app called "Come to book", developed by Book.com Taiwan, helps consumers search information about books by scanning a UPC on an item in-store, thus allowing them to easily compare the book's price in physical bookstore to the price on Book.com. (5) Crowdsourcing O2O The platform of websites and mobile apps typically link the supply- and demand sides to share resources and capacity in an efficient manner. For example, Airbnb provides a rental accommodation marketplace that links the supply side—i.e., people who want to rent out empty rooms—and the demand side—i.e., those who want to rent a suitable, comfortable room. Similarly, Uber provides a personal pick-up service marketplace that links riders in need of transportation with drivers via a reservation app, thus furnishing riders with a speedy pick-up service offline. This commercial crowdsourcing outsources the collection, organization and confirmation of directory data, which indicates same-type goods or services in crowdsourced O2O companies. These directory data can consist of a variety of restaurants from Opentable, coupons from Groupon, and consumption goods from Instacart. Customers prefer to compare a single product from different brands before purchasing. Crowdsourcing commerce simplifies comparison shopping and offers consumers a single point of entry to a concentration of products/services for purchase. 2.4 The Effects of the O2O Business Model The reason that this brand-new model is so popular in the commercial world is that the O2O business model strikes a balance between consumers and enterprises. It not only provides consumers with a comfortable shopping experience but also helps the company understand exactly what it is that consumers need. As will be shown, O2O business models have a substantial impact. 23.

(25) on both consumers and businesses. This chapter will now describe the effects of the O2O business models on both consumers and enterprises. Generally, firms increase multiple touch-points for customers—for example, websites, apps, television, physical channels, Wi-Fi points and social media—to better operate their O2O business models. One benefit is that companies’ opportunities to reach new visitors expand. Another benefit of O2O is data collection. Firms use of data via the Internet to digitally track customer profiles, to understand channel preferences, and to continue improving customer profiles and data to satisfy customer demand in a manner that is savvy. When firms possess sufficient customer data, in-store staff members interact with customers directly, because they have acquired data from their systems that provide information about customers’ specific pain points or demands, and that interaction helps to convince customers to purchase by evaluating the pros and cons of a particular product. Sometimes, staffs offer specialized knowledge consultation to customers in the event of problems with previous purchases. Customers’ feelings about staff also influence the buying experience. O2O business models also help firms improve customers’ interactive engagements both online and offline. In some case studies, businesses conduct a campaign to convince Internet users to upload photos and videos, providing coupons or prize tickets for in-store exchange. To facilitate consumers’ online searches for promotional information, companies install free Wi-Fi either in their stores or in locations with heavy foot traffic. This is a good tactic to encourage consumers first to place orders or acquire coupons online and then to purchase in physical stores. Another O2O strategy involves adopting social networks. Companies develop social-network websites, such as Facebook fan pages, discussion, Twitter, and so on, to gather Internet users with the same interests or character. In this manner, business can learn about customer insights and offer products to them. Consumers may be glad to meet people with whom they share features and can both acquire useful information and purchase a product. In addition to the effects of outside organizations, firms develop IT systems to achieve O2O management inside their organizations. Technology systems enable 24.

(26) firms to efficiently and seamlessly integrate resources to minimize operating costs. For instance, ERPs have gradually been adopted by ecommerce. ERPs work with online shopping platforms and POS to enable firms to manage both day-to-day transactions and physical store operations effectively. Furthermore, to fulfill consumers’ product orders, retailers must carry the appropriate product at the appropriate time. If a company has its own retail store, it should not only accurately decide which products to carry at each of its retail locations but also forecast demand for each product and store. When a customer reserves products or services online (or purchases in-store), a business has the ability to predict its inventory in its physical channels and immediately offer items to that customer. Higher demand uncertainty at the store level results in higher supply-mismatch costs and indirectly leads to poor customer satisfaction. Target has developed an app to enable customers to search (while “on the go”) how many of their desired items are in stock and to purchase those items in-store. The O2O business model can help firms address the challenges of labor shortages. To avoid miscalculations, managers evaluate data related to online and offline traffic and reallocate resources prior to conducting operations. The market has been gradually flooded with software companies that provide retailers with technological support. These companies will create another O2O management issue. 2.6 Technologies for the O2O Strategy Technology is another critical factor that stimulates and accelerates O2O business models in the marketing landscape. The most common situation occurs when a shopper is purchasing something in-store, picks up an item at the store, and then scans its barcode with his smartphone using the Yahoo chaoji shangcheng ecommerce app. He finds that a 7-11 convenience store just a short distance from him offers the product at a discount and therefore goes to the 7-11 to make the purchase. This example illustrates how the latest technological advances in mobile computing are merging touch-and-feel experiences in the physical world with online content. This increases the interaction between businesses and consumers. 25.

(27) Business is shifting toward helping consumers in the buying process, rather than focusing on only transaction or delivery. Shoppers enjoy the convenience of the online shopping environment, the ability to purchase unusual items, the ease of comparison shopping, and lower prices, but they prefer physical product interaction, service, low product uncertainty and instant gratification. Burke (2002) finds that technology applications must be tailored to the unique requirements of consumer segments and product categories. Businesses can benefit from technology to analyze consumers’ shopping behavior and to combine online social data to clarify the profile of their target customer. In doing so, firms successfully promote useful information or items to target consumers. 2.7 O2O Implementation The purpose of this study is to provide guidance to practitioners in planning and monitoring an O2O implementation. More importantly, it provides companies with information about how to succeed with O2O projects. Because of the lack of literature discussing the CSFs of O2O implementation, this study identifies the CSFs of O2O implementation from practical cases and previous, related research (Rose, Clark, Samouel and Hair, 2012). Previous books about management information systems (Laudon & Laudon, 2011. Tung-Ching, L., 2010) address a similar overview of fundamental MIS concepts using an integrated framework for analyzing and examining information systems. That framework shows that information systems are composed of management, organization, and technology. In contrast, this study applies the framework to O2O implementation and then discusses case studies to illustrate how technology, management and organization work together to create an O2O solution to business challenges and to identify the CSFs within the 3 dimensions of a business’s O2O implementation.. 26.

(28) Table 4 Technologies adopted in O2O strategy Technology. Resource. Role Play. Description. Practical Case. Goal. QR code,. Brynjolfsson,. Distribute. Enterprises use scanning. Yahoo Taiwan, chaoji. To rapidly get. barcode,. Hu, and. information. technology to embed. shangcheng ecommerce app. the desired. RFID (Radio. Rahman. product information in. Enables customers to buy. information.. Frequency. (2013). codes. Shoppers can scan. online effectively when. Identification). Jiang and. QRcodes, barcodes, RFID on. scanning a product’s. Ding (2013). smartphones (in store) or. barcode while visiting an. leaflets (offline) and obtain. online site’s physical. product information. channel partners.. (online), which is used to identify goods or make payments online. Kiosk. Perez (2014). Retail. Kiosks are now relatively. Taishin International Bank. To save. frontdesk. common machines in. Co. & Family Mart. customer's. physical stores operated by. The bank has installed an. time.. retailers; the kiosks feature. online bank system on. various products from which. FamiPort, a kiosk at the. shoppers can make their. Family Mart convenience. selections. Kiosks provide an. store. The system provides a. option for retail sales to. service of so-called reward. provide broad types of. points, which allow. services, including paying,. customers of Taishin. ordering, printing and so on. International Bank Co to. (offline).. exchange points for real items or services at the Family Mart.. Beacon. Vanhemert. Connect. Beacon can automatically. USA, Walmart. To experience a. (2013). customer. create a signal area. A. When a shopper steps into. personalized. Lundan. shopper's mobile device. Walmart, his/her shopping. shopping. (2013). connects with Beacon when. list transfers to a. experience.. he or she walks into one of. personalized map, showing. those locations (offline).. the item's accurate position. Beacon then triggers. in the store.. 27.

(29) personalized information to be sent to shopper's device while he or she is “on the go” (online). Virtual Try-on. Kim and. Experience. One technology that has. Japan, iButterfly app. To try on the. & Augmented. Forsythe. products. been gaining popularity on. iButterfly is a gamified. item and make. Reality. (2008). online apparel shopping. location-based service app. sure it is suited.. Shim and Lee,. sites is Virtual Try-on. This. in Japan that enables users. (2011). technology enables. to enjoy the feeling of. Brynjolfsson,. enhanced product viewing. catching ”butterflies” in an. Hu, and. and reduces shopper’s. AR world via smartphone. Rahman. perceived risk (online).. and subsequently obtaining. (2013). a butterfly coupon.. Location-. Zhou (2013). Locate. The growing prevalence of. USA, Walgreens. To find out the. based service. Brynjolfsson,. target. location-based services on. Walgreens cooperates with. place where. (LBS). Hu, and. customers. mobile devices is another. Foursquare, a location-based. the product. Rahman. critical enabler that can. social networking website,. locates.. (2013). present optimal information. to offer customers electronic. and services (online) to. coupons on their mobile. users based on their location. devices from the moment. (offline).. that they enter a Walgreens store.. Social media. Bradner. Social. Shoppers’ buying decisions. Procter & Gamble (P&G),. To get more. (2007). opinions. rely not only on marketing. BeingGirl.com The site. value-add. Rigby (2011). efforts from firms but also. provides health content,. information. Kane, Palmer,. on online blogger reviews. product information, and. from other. Phillips and. and friends’ ratings or. community to teenage girls.. consumers. Kiron (2014). recommendations on social. P&G satisfies teenage girls’. networks such as Facebook. needs by interacting with. and Twitter (online).. them and has increased sales.. 28.

(30) (1) Technology: Technology is a useful tool for managers to address changeable challenges. It primarily consists of IT infrastructure (software, hardware, networking, databases, etc.) and IT application (ERP, POS, CRM, etc.). The O2O business model is a combination of ecommerce platforms and physical channels. As this paper mentions above, enterprises rely on systems to connect their front platforms and central systems, thus improving their business operations in an efficient and flexible manner. (2) Management: Management's job is to understand their organization’s situation, to make decisions and to formulate solutions to organizational problems. When managers sense business challenges in the market environment, they should plan a strategy for responding to the organizational problem and to allocate resources (e.g., financial, labor, knowledge and so on) to coordinate their projects. (3) Organization: In the present era, there can be no business without information systems. An organization’s key elements include its people, structure, business processes, politics, and culture. Tung-Ching (2010) notes the effects of digital strategies, human resources, organizational structure, business processes, and a digital-strategy-based business model on an organization. The framework of critical success factors: (1) Technology Ease-of-use application Users prefer to use applications that make it seem as though the computer understands them. Such applications allow consumers to easily shop for what they want. The interface and operation should be simple, concise and self-explanatory for people who are even not techies. Flow connectedness Website load time has always been an important factor in website success. The longer a website’s load time, the lower the customers’ patience levels. Load time greatly influences customers' mood when there is a wait between the action of a customers and the response of the website or other application. 29.

(31) Table 5 Critical success factors for O2O implementation Factor Technology. Reference. 1.. Description. Ease-of-use Rose, Clark, Samouel Application should be easy to use,. application. and Hair (2012). concise and self-exploratory for both. Anderson,. business-side users and market-side. Swaminathanand,. users.. Mehta (2013) 2.. Flowing Rose, Clark, Samouel No waiting time between user's. connectedness. and Hair (2012) Bell,. Gallino. actions and the response of the and online websites or smartphone apps.. Moreno (2014) 3. The aesthetics of Rose, Clark, Samouel The look and feel of the website and website or app. and Hair (2012). app should be consistent with user's perception of the company.. 4. Stronger IT bone. Roberts and Zahay Integrate the subsystem of the online (2012). platform and offline stores and standardize the operation process.. 5.. Accurately Brynjolfsson,. located function Management 6.. and Rahman (2013). navigation is quick and accurate. Rigby (2011). when shoppers are on the go.. Management Parr. Support. Hu, Maps should update real-time, and. and. Shanks Top. (2003). management. advocacy,. provision of adequate resources, and commitment to project. 7.. Promotion Rigby (2011). channel. Zhang (2008). Find the suited channel to reach the target (demography) customers.. 8. Accurate content Rigby (2011). Retailers. should. send. the. promotion. information that consumers feel really useful to them.. 9. Good CRM system Roberts and Zahay Constantly collect and analyze data (2012). from customer's buying behavior,. Heckmann,. buying history and membership to. Kesteloo, Schmaus (2012) 30. and build up a solid relationship..

(32) 10. Effective logistic Heckmann, mechanism. E-commerce businesses deliver the. Kesteloo,. and items to customers with a speedy. Schmaus (2012). logistic.. 11. Integral content Rigby (2011). The. information. of. products/. delivered. services is integral for customer to quickly understand.. Organization 12. Complete Staff Jacob (2014). Sales staff should understand the. training. feature of product and conflict with consumer's problems, so they can response. to. consumers,. campaign. process. and. assist operate. systems. 13. Balanced team. Parr. and. Shanks Right mix of technical experts, data. (2003). analyst, project planners, users and. Rigby (2011). external working partners.. 14. Seamless the Rigby (2011). The processes should be seamless. process of online Heckmann,. and the customer experience should. and offline channels. Kesteloo,. and be consistent.. Schmaus (2012) 15.. Reinvent. the Heckmann,. company's future. Companies should constantly adopt. Kesteloo,. and new. Schmaus (2012) 16. Commitment to Parr change. and. (2003). business. models,. improvement and examine itself.. Shanks Perseverance and determination in the face of inevitable problems.. 31. make.

(33) Website and app aesthetics The aesthetics of any application’s interface influence customer perceptions of the brand. When consumers enter a website or mobile app to engage in Internet shopping, the look and feel of the website and/or app are important. This is particularly true for entertainment applications, which all need fantastic technologies—e.g., VR, AR and animation—to present users with a beautiful, appealing interaction interface. Stronger IT bone If a company's multiple channels want to be truly integrated, they must be linked to an IT bone with a dedicated multiple-channel integration layer. The purpose is to provide a seamless process for the company's operation and consumers’ purchase-related actions. For instance, a customer might reserve a desired product online and want to pick up the product at the particular retail store. The store’s staff should ensure adequate inventory to fulfill the transaction. Accurately located function LBS technology helps companies not only to promote information to targeted customers' smartphones but also to locate customers and then navigate them to the offline store. Therefore, the application should accurately locate the customer so that the promotional strategy is effective and useful. (2) Management Management support Management support can take several different forms, such as demonstrating commitment, helping teams overcome obstacles, increasing team coherence and providing team encouragement. Management also provides sufficient resource support. These things will encourage team members' willingness to improve their performance. Promotional channel Different customer segments have completely different preferences and demands. Marketers should understand each customer segment’s need and find a suitable reach point for each one. This promotional strategy becomes effective if 32.

(34) companies find the appropriate channel to reach the appropriate customers. Accurate content promotion Customers dislike receiving useless information. Garbage pop-up information jumps onto the screen on mobile devices, causing consumers to experience “noise”. Companies now rely on data analysis to target customers and promote information that is useful for them. Effective CRM system Due to a highly competitive market environment, a good relationship with customers becomes highly important for companies. Companies should collect integral data, including customer behavior, transaction records, preferences and so on, and should analyze that data to improve their marketing strategy. Effective logistic mechanism To satisfy increasing customer expectations related to product delivery, companies can increase their delivery options and speed up their delivery time. This project is challenging because of the interplay among many companies' logistic mechanisms. For instance, Amazon has introduced same-day delivery in select urban areas; therefore, competitors will improve their own delivery services to win customers. Integral content delivered Customers prefer to search for product information prior to making a purchase. Companies provide all product information satisfying to customers. Moreover, product guides are also important for customers to know about before making a purchase decision. The information should be clear to avoid a conflict between businesses and customers. (3) Organization Complete staff training Companies also invest in staff training in the area of offline store conversion. Staff members familiar with both online and offline service can provide better responses to sudden problems. Moreover, knowledgeable and enthusiastic staff 33.

(35) members can offer useful product information to help consumers evaluate the pros and cons of specific products. Balanced team Because of firms’ operations across both online and offline channels, the O2O business model is a difficult and important task for companies. Understanding teams’ interpersonal dynamics can help managers identify the optimal arrangement of individuals to ensure team success and high performance. Firms need an appropriate mix of technical experts to develop useful IT, data analysts to analyze customer profiles, and project planners to manage O2O projects, users and external working partners. Make the process of online and offline channels seamless Inconsistent processes for online and offline are the enemy of O2O business models. For instance, retailers should not have different price policies for the same product in offline and online channels. Likewise, problems can occur when a customer stops at a firm’s offline store to retrieve a product ordered online, but the wrong product has been delivered to the store. Therefore, the process of multiple channels should be seamless and the customer experience should be consistent. Reinvent the company's future The imperative of offering an O2O experience represents the largest transformation that many retail leaders have ever faced. Companies should be willing to accept this dramatic organizational change and to constantly improve their technology, management and organization policies. Commitment to change When companies are confronted by an inevitable challenge, they should have the capability to engage in introspection and to rethink their strategies. Most importantly, they should constantly incorporate new knowledge and improve the problematic process or policy.. 34.

(36) CHAPTER 3: Research Methodology 3.1 Research Methodology To fulfill the research objective of evaluating the CSFs of implementing O2O promotions, this research plans two stages of empirical study. The first stage is to build a preliminary finding about the five major types of O2O business model sand the CSFs of O2O business models based on the previous literature and more than fifity case studies (see APPENDIX 1). The second stage is to conduct in-depth, selected case studies (five promotional O2O projects), as shown in Table 6, across a range of industries in Taiwan. The reason for focusing on promotional O2O is that promotional activity is very important to business processes. Enterprises like to use O2O business models— e.g., providing coupons and promotional information via smartphone apps, online catalogues, online websites, and social networking—both to reach new consumers and to provide promotional information. Due to increasing competition among companies, promotional methods have become more innovative and creative.. The criteria for successful O2O projects To offer broad and accurate information of critical successful factors in O2O project implementation to business, this study conduct in-depth interview with experience project participants from different companies and select five successful representative O2O project. Therefore, how to measure "a successful O2O project "? According to various case studies, we generalize two measurements: (1) An increasing traffic both online and offline and (2) Sales both online and offline go up. Based on the definition of O2O in this study, firms provide a variety of services through online channel to touch broad online visitors. More and more visitors come into the website or download mobile app to get more information. The online visitors are encouraged to offline store or experience offline services via online information. It leads the revenue in offline store to go up. The more online visitors convert into customers in store, the more revenue prop up.. 5 selected promotional O2O projects The O2O business model has grown more popular internationally. Several Taiwanese companies are enthusiastically following this trend. Following successful measurements, we selected the five companies below as interview participants. 35.

(37) . Yahoo Taiwan chaoji shangcheng ecommerce. Yahoo chaoji shangcheng ecommerce was founded as a marketplace for business e-commerce and has collaborated with approximately 4,000 online and offline stores. To increase their users and improve customer shopping experiences, Yahoo Taiwan developed an app called the "chaoji shangcheng ecommerce app." The app utilizes LBS technologies that promote customer coupons offered at nearby stores, and the app "scans and buys services" to allow customers to make quick purchases via chaoji shangcheng ecommerce by scanning product barcodes in offline stores. Shoppers need not carry a heavy bag while shopping and can easily compare product information using the app. According to the report and according to our panelist, the Yahoo chaoji shangcheng ecommerce app successfully enables the company’s physical partners to attract more customers through the provision of coupons, substantially increasing revenues. . McDonald’s Surprise Alarm app. McDonald's sales have declined over the past few years in Taiwan. To boost its sales, McDonald's researched daily customer habits and found that few Taiwanese eat breakfast daily due to busy work schedules. McDonald's thus cooperated with TMS research, which specializes in market research, business intelligence, data analysis and strategic consulting; Leo Burnett Taiwan and DDB Group Singapore, which are marketing agencies known for digital marketing, advertising, and marketing campaigning; and elite figures from other countries in launching the Surprise Alarm app project. The mobile app became an established tool that people used to complete numerous tasks, and the alarm clock was a very popular feature. The app sends users a prize once daily upon waking up from the app alarm clock. A few months after its introduction, the Surprise Alarm app achieved over 420,000 downloads and had given out over 5.9 million “surprises.” . Taiwan Shin Kong Mitsukoshi Department store. The Shin Kong Mitsukoshi Department (SKM) store is a well-known chain department store in Taiwan. When a surge of customers arrived at store locations on Anniversary Celebration day, coupon and reward points exchange activities offered at store counters could not operate efficiently. Last year (2014), SKM introduced the SKM app to make customer shopping experiences simpler and 36.

(38) more convenient. Shoppers can collect coupons through the app without waiting in a long line. This year, SKM instituted beacon aware -location technologies in stores that connect to mobile apps to allow shoppers to accurately receive product messages upon approaching a beacon in a store. A shopping -tour app function was designed to help customers create personal shopping routes to their favorite brand stores, restaurants, etc. Recommendations are sent to shoppers' mobile phones, encouraging shoppers to make purchases while on shopping -tours and upon viewing real-time promotional messages. SKM has collected and analyzed customer data from this app to better target customer needs and to deliver the most relevant messages at the appropriate times. . Taishin Mobile Bank app. The banking industry in Taiwan has undergone intense processes of competition for a long time. With the rise of O2O trends, most have started to integrate online and offline channels. The Taishin Mobile Bank app was created to serve both banking and marketing operations. On the banking end, the app provides services that have traditionally been delivered offline (e.g., payments, money deposits, fund transfers, etc.), and on the marketing end, the app integrates financial products into customers’ daily lives, providing information and coupons on entertainment, food, travel and resort packages. Taishin Bank also cooperated with more than 2,000 FamilyMart convenience store branches where Taishin ATMs are located. The "I-promotion" function of the app presents coupons offered by Taishin Bank's physical partner. "I-check in," a new function developed this year, uses beacon technologies to offer users real-time messages on the stock market, account interest rates and credit cards, when users enter a Taishin Bank branch. Taishin Bank collects and analyzes customer shopping behaviors to formulate more valuable financial services for customers. Taishin Bank has improved its services to facilitate seamless banking experiences for bank members and the public.. . FamilyMart convenience store. Wiki statistics show that the number of convenience stores in Taiwan exceeded 10,000 in 2015. Four major convenience store brands have aggressively improved 37.

(39) their services and strategies to attract more customers. FamilyMart, one convenience store brand, has made an effort to understand O2O strategies and has developed both online (app, online website and social networking site) and offline (Kiosks and ATMs offered through Taishin Bank) technological applications. The FamiPort app, one of tools created to complete the O2O business model, provides services initially offered through convenience stores (e.g., ticket bookings, reward point exchanges, and delivery services). The app includes an online shopping option that allows customers to browse through a wide variety of products and coupons and to obtain product barcodes. A transaction is completed after a store clerk scans a product barcode. From these constant service announcements, FamilyMart has grown to be comparable to the leading convenience store brand 7-11. 3.2 Research Process We first describe online and offline O2O projects, the proliferation of the O2O business model and the various types of O2O business models. We then present effective strategies for O2O implementation. Identifying critical factors of O2O implementation success requires broad and in-depth data collection and analysis. We use a promotional O2O business model to thoroughly explore CSFs in O2O implementation. In collecting and thoroughly examining a broad range of data, we employ the Delphi method to determine ways to effectively implement O2O projects. We thus collect a wide variety of information via in-depth interviews with experienced businessperson. The Delphi method is a systematic, interactive process to elicit a consensus view with a group of experts. Forecasting, an important application of the method, used to investigate the factors that influence decision-making on the specific issue, topic and problem. Delphi method used to gather a panel of experts to generate a more accurate and more informed result.. 38.