4.1 Prof Jess Role @ UEAB 2012 4 4 THE DIGITAL FIRM: ELECTRONIC COMMERCE & ELECTRONIC COMMERCE & ELECTRONIC BUSINESS

4.4.11Prof Jess Role @ UEAB 2012

44THE DIGITAL FIRM:THE DIGITAL FIRM:

ELECTRONIC COMMERCE ELECTRONIC COMMERCE & &

ELECTRONIC BUSINESSELECTRONIC BUSINESS


We need to knowWe need to know• HOW INTERNET TRANSFORMS HOW INTERNET TRANSFORMS

BUSINESSBUSINESS• COMPARE CATEGORIES OF COMPARE CATEGORIES OF

ELECTRONIC COMMERCEELECTRONIC COMMERCE• EVALUATE PRINCIPAL EVALUATE PRINCIPAL

ELECTRONIC PAYMENTELECTRONIC PAYMENT SYSTEMSSYSTEMS

**

© 2008 by Prentice Hall


LEARNING OBJECTIVESLEARNING OBJECTIVES

• DEMONSTRATE HOW INTERNET DEMONSTRATE HOW INTERNET TECHNOLOGY SUPPORTS TECHNOLOGY SUPPORTS ELECTRONIC BUSINESS, SUPPLY ELECTRONIC BUSINESS, SUPPLY CHAIN MANAGEMENTCHAIN MANAGEMENT

• EXAMINE CHALLENGES OF EXAMINE CHALLENGES OF INTERNET TO BUSINESSINTERNET TO BUSINESS

& SOCIETY & SOCIETY**


As a manager, you will want to know how your firm can benefit from e-

business and e-commerce.


MANAGEMENT CHALLENGESMANAGEMENT CHALLENGES

• EMERGING DIGITAL FIRMEMERGING DIGITAL FIRM

• ELECTRONIC COMMERCEELECTRONIC COMMERCE

• ELECTRONIC BUSINESSELECTRONIC BUSINESS

• CHALLENGES & OPPORTUNITIESCHALLENGES & OPPORTUNITIES

**


MANAGEMENT CHALLENGESMANAGEMENT CHALLENGES

1. ELECTRONIC COMMERCE & 1. ELECTRONIC COMMERCE & ELECTRONIC BUSINESS ELECTRONIC BUSINESS REQUIRE NEW MIND SETREQUIRE NEW MIND SET

2. FINDING SUCCESSFUL 2. FINDING SUCCESSFUL INTERNET BUSINESS MODELINTERNET BUSINESS MODEL

**



INTERNET TECHNOLOGY & INTERNET TECHNOLOGY & THE DIGITAL FIRMTHE DIGITAL FIRM

• INFORMATION TECHNOLOGY INFORMATION TECHNOLOGY INFRASTRUCTURE: Information flows INFRASTRUCTURE: Information flows seamlessly throughoutseamlessly throughout

• DIRECT COMMUNICATION BETWEEN DIRECT COMMUNICATION BETWEEN TRADING PARTNERS: TRADING PARTNERS: DISINTERMEDIATIONDISINTERMEDIATION removes removes intermediate layers streamlines processintermediate layers streamlines process

**



• VENDORS CAN PROVIDE VENDORS CAN PROVIDE INFORMATION 24 HOURS A DAYINFORMATION 24 HOURS A DAY

• CAN EXTEND DISTRIBUTION CAN EXTEND DISTRIBUTION CHANNELSCHANNELS

• CAN REDUCE TRANSACTION CAN REDUCE TRANSACTION COSTSCOSTS

**



• REDUCES REDUCES INFORMATION ASYMMETRYINFORMATION ASYMMETRY: : Asymmetry exists when one party has Asymmetry exists when one party has more information than othermore information than other

• INCREASES INCREASES RICHNESSRICHNESS: Depth & detail of : Depth & detail of informationinformation

• INCREASES INCREASES REACHREACH: Number of people : Number of people contactedcontacted

**


INTERNET BUSINESS MODELSINTERNET BUSINESS MODELS

• VIRTUAL STOREFRONT: Sells VIRTUAL STOREFRONT: Sells goods, services on-linegoods, services on-line

• MARKETPLACE CONCENTRATOR: MARKETPLACE CONCENTRATOR: Concentrates information from Concentrates information from several providersseveral providers

• ON-LINE EXCHANGE: Bid-ask ON-LINE EXCHANGE: Bid-ask system, multiple buyers, sellerssystem, multiple buyers, sellers

**



• INFORMATION BROKER: Provide info on INFORMATION BROKER: Provide info on products, pricing, etc.products, pricing, etc.

• TRANSACTION BROKER: TRANSACTION BROKER: Buyers Buyers view rates, terms from various sourcesview rates, terms from various sources

• AUCTION: Electronic clearinghouse AUCTION: Electronic clearinghouse products, prices, change in response to products, prices, change in response to demand demand

**



• REVERSE AUCTION: Buyer sets REVERSE AUCTION: Buyer sets price, submits to multiple sellersprice, submits to multiple sellers

• AGGREGATOR: Group pools orders AGGREGATOR: Group pools orders for volume discountfor volume discount

• DIGITAL PRODUCT DELIVERY:DIGITAL PRODUCT DELIVERY: Sell, download software, other Sell, download software, other digital productsdigital products

**



• CONTENT PROVIDER: Creates revenue CONTENT PROVIDER: Creates revenue through providing client for a fee, and through providing client for a fee, and advertisingadvertising

• ON-LINE SERVICE PROVIDER: Provides ON-LINE SERVICE PROVIDER: Provides service, support for hardware, software service, support for hardware, software productsproducts

• VIRTUAL COMMUNITY: Chat room, online VIRTUAL COMMUNITY: Chat room, online meeting placemeeting place

**



• PORTAL: Initial point of entry to PORTAL: Initial point of entry to Web, specialized content, servicesWeb, specialized content, services

• SYNDICATOR: Aggregate SYNDICATOR: Aggregate information from several sources information from several sources sold to other companiessold to other companies

**



ELECTRONIC COMMERCEELECTRONIC COMMERCE

• BUSINESS-TO-CONSUMER (B2C)BUSINESS-TO-CONSUMER (B2C)

• BUSINESS-TO-BUSINESS (B2B)BUSINESS-TO-BUSINESS (B2B)

• CONSUMER-TO-CONSUMER (C2C): CONSUMER-TO-CONSUMER (C2C): Individuals use Web for private sales Individuals use Web for private sales or exchangeor exchange

**


BUSINESS-TO-CONSUMERBUSINESS-TO-CONSUMER

• WEB SITES: Provide information on WEB SITES: Provide information on products, services, prices, ordersproducts, services, prices, orders

• CUSTOMER-CENTERED RETAILING: CUSTOMER-CENTERED RETAILING: Closer, yet more cost-effective Closer, yet more cost-effective relationship with customersrelationship with customers

• INFORMATION BROKERS: Comparison INFORMATION BROKERS: Comparison shops to customershops to customer’’s requirements, s requirements, reintermediationreintermediation

**


BUSINESS-TO-BUSINESS BUSINESS-TO-BUSINESS ELECTRONIC COMMERCEELECTRONIC COMMERCE

AUTOMATION OF PURCHASE, SALE AUTOMATION OF PURCHASE, SALE TRANSACTIONS FROM BUSINESS TRANSACTIONS FROM BUSINESS TO BUSINESSTO BUSINESS

• PROVIDES ALTERNATIVE SOURCESPROVIDES ALTERNATIVE SOURCES• ELECTRONIC HUBS: Online ELECTRONIC HUBS: Online

marketplaces, point-to-point marketplaces, point-to-point connections, integrated informationconnections, integrated information

**


The benefits of disintermediation to the consumer


Web site visitor tracking

Web site personalization


BUSINESS-TO-BUSINESS BUSINESS-TO-BUSINESS ELECTRONIC COMMERCEELECTRONIC COMMERCE

EXCHANGES: Commercial on-line EXCHANGES: Commercial on-line market, many buyers, sellersmarket, many buyers, sellers

• POTENTIAL FOR INTEGRATING POTENTIAL FOR INTEGRATING PRODUCT INFORMATIONPRODUCT INFORMATION

• PROVIDES SERVICE, VALUEPROVIDES SERVICE, VALUE

**


Electronic data interchange (EDI)


A private industrial network


A Net marketplace


ELECTRONIC COMMERCE PAYMENT SYSTEMSELECTRONIC COMMERCE PAYMENT SYSTEMS

SYSTEM DESCRIPTION

CREDIT CARDS SECURE SITE PRESERVES INFORMATION

ELECTRONIC CASH DIGITAL CURRENCY USED FOR MICROPAYMENTS

PERSON-TO-PERSON SEND MONEY TO SITES UNABLE TO USE CREDIT CARDS

DIGITAL WALLET SOFTWARE STORES CREDIT CARD INFORMATION

ELECTRONIC CHECK CHECK WITH ENCRIPTED DIGITAL SIGNATURE

SMART CARD MICROCHIP STORES ELECTRONIC CASH

ELECTRONIC BILL PAYMENT ELECTRONIC FUNDS TRANSFER


Functional applications of intranets


INTRANETS AND INTRANETS AND ELECTRONIC BUSINESSELECTRONIC BUSINESS

• BENEFITSBENEFITS

• FUNCTIONAL APPLICATIONSFUNCTIONAL APPLICATIONS

• SUPPLY CHAIN MANAGEMENTSUPPLY CHAIN MANAGEMENT

**


Collaborative commerce


BENEFITS OF INTRANETS:BENEFITS OF INTRANETS:

• CONNECTIVITYCONNECTIVITY• CAN BE TIED TO LEGACY SYSTEM CAN BE TIED TO LEGACY SYSTEM

& TRANSACTION PROCESSING& TRANSACTION PROCESSING• INTERACTIVE APPLICATIONS INTERACTIVE APPLICATIONS

WITH TEXT, AUDIO, VIDEOWITH TEXT, AUDIO, VIDEO• SCALABLE TO LARGER OR SCALABLE TO LARGER OR

SMALLER SYSTEMS AS REQUIREDSMALLER SYSTEMS AS REQUIRED**


BENEFITS OF INTRANETS:BENEFITS OF INTRANETS:

• EASY TO USE BROWSER EASY TO USE BROWSER INTERFACEINTERFACE

• LOW START-UP COSTSLOW START-UP COSTS• RICH, RESPONSIVE INFORMATION RICH, RESPONSIVE INFORMATION

ENVIRONMENTENVIRONMENT• REDUCED INFORMATION REDUCED INFORMATION

DISTRIBUTION COSTSDISTRIBUTION COSTS**


FUNCTIONAL APPLICATIONS:FUNCTIONAL APPLICATIONS:

• FINANCE & ACCOUNTINGFINANCE & ACCOUNTING

• HUMAN RESOURCESHUMAN RESOURCES

• SALES & MARKETINGSALES & MARKETING

• MANUFACTURING & PRODUCTIONMANUFACTURING & PRODUCTION

**


FINANCE & ACCOUNTING:FINANCE & ACCOUNTING:

• GENERAL LEDGER REPORTINGGENERAL LEDGER REPORTING

• PROJECT COSTINGPROJECT COSTING

• ANNUAL REPORTSANNUAL REPORTS

• BUDGETINGBUDGETING

**


HUMAN RESOURCES:HUMAN RESOURCES:

• CORPORATE POLICIESCORPORATE POLICIES

• EMPLOYEE SAVINGS PLANSEMPLOYEE SAVINGS PLANS

• BENEFITS ENROLLMENTBENEFITS ENROLLMENT

• ON-LINE TRAININGON-LINE TRAINING

• JOB POSTINGJOB POSTING

**


SALES & MARKETING:SALES & MARKETING:

• COMPETITOR ANALYSISCOMPETITOR ANALYSIS

• PRICE UPDATESPRICE UPDATES

• PROMOTIONAL CAMPAIGNSPROMOTIONAL CAMPAIGNS

• SALES PRESENTATIONSSALES PRESENTATIONS

• SALES CONTRACTSSALES CONTRACTS

**


MANUFACTURING & PRODUCTIONMANUFACTURING & PRODUCTION::

• QUALITY MEASUREMENTSQUALITY MEASUREMENTS

• MAINTENANCE SCHEDULESMAINTENANCE SCHEDULES

• DESIGN SPECIFICATIONSDESIGN SPECIFICATIONS

• MACHINE OUTPUTMACHINE OUTPUT

• ORDER TRACKINGORDER TRACKING

**


SHIPPINGSHIPPING INVENTORYINVENTORY

PLANNING & PLANNING & FORECASTINGFORECASTING

ORDER ORDER PROCESSINGPROCESSING

PRODUCTIONPRODUCTION

PROCUREMENTPROCUREMENT

ACCOUNTINGACCOUNTING

SUPPLIERSSUPPLIERSCUSTOMERSCUSTOMERS

LOGISTICS LOGISTICS SERVICESSERVICES

DISTRIBUTORSDISTRIBUTORS

INTRANETINTRANETINTRANET

SUPPLY-CHAIN MANAGEMENTSUPPLY-CHAIN MANAGEMENT


CHALLENGES & OPPORTUNITIESCHALLENGES & OPPORTUNITIES

• UNPROVEN BUSINESS MODELSUNPROVEN BUSINESS MODELS

• BUSINESS PROCESS CHANGE BUSINESS PROCESS CHANGE REQUIREMENTSREQUIREMENTS

• CHANNEL CONFLICTSCHANNEL CONFLICTS

• LEGAL ISSUESLEGAL ISSUES

• SECURITY & PRIVACYSECURITY & PRIVACY

**


The emerging digital firm requires this level of information integration, and companies increasingly depend on such an infrastructure today to remain efficient and competitive.

Internet technology has emerged as the key enabling technology for this

digital integration.



THE DIGITAL FIRM:THE DIGITAL FIRM:

ELECTRONIC COMMERCE ELECTRONIC COMMERCE & &

ELECTRONIC BUSINESSELECTRONIC BUSINESS

Documents

4.1 Prof Jess Role @ UEAB 2012 4 4 THE DIGITAL FIRM: ELECTRONIC COMMERCE & ELECTRONIC COMMERCE & ELECTRONIC BUSINESS