Electronization: processes, tools, paradigms, metaphors, and industries

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Electronization processes, tools, paradigms,
metaphors, and industries

• Miklos A. Vasarhelyi

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New things and ways to do things

• Paradigm
• a pattern, example, or model
• Metaphor
• a figure of speech in which one thing is spoken
  as if it were another (e.g. all the world is a
  stage)

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New models - paradigms

• Nearly full disclosure (Victorias Secret)
• You can make money at much lower prices (National
  Discount Brokers)
• Being a doctor is not the same any more
  (PlanetRX)
• Is being an insurance agent going to be the same?
• Is there going to be evolution or paradigmatic
  change?

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Main effects

• Globalization of markets
• Dramatic change of business models
• new ways of doing business
• can we work with the new economics?
• One to one marketing
• site customization, product customization
• Integration of systems with clients
• linking Intranets and Extranets

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Main effects (II)

• E-service not even envisaged before
• service, service, service
• tailored product leads
• pre and post sale care
• The merging /blurring of markets / industries
• Commodization of products

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Paradigms

• Buying natural gas
• Altra Energy Technologies
• handles 40 of the industrys natural liquids
• 12b USD on the site this year
• anonymous transactions
• low barriers to entry, but only if you get there
  first

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Electronization of Business
Purchasing
B2B Purchasing Open EDI Extranets
Manufacturing
Sale
Tracking
Payment
Pre-sale care
Inventory
Web-based Cash register Shopping carts Click
paths E-Catalog
VRS Auto Responder
Web-based Credit card E-cash Micropayments
E-Catalog
Delivery
Marketing
Individual targeting Spaming Virtual
communities Customer party lines
Bitable Non-bitable
Tracking
Advertising
Auditing
Accounting
Web advertising Customization Banners
E-care
Continuous Automatic Confirmation
Tech support Lead Follows Help desk
Continuous ERPSs New Paradigms
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World Wide Web
Technology
Services
Business Model
E-Catalog Auctions Name your price
Delivery Escrow Price Comparisons
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Manufacturing
Tracking
Federal Express

• Mass Customization of Product
• Levis Jeans
• Mountain bikes
• Auto manufacturing
• Dell computers

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Package tracking
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Purchasing
B2B Purchasing Open EDI Extranets
J. C Penney
Electronic Auctioning
freeMarkets.com AdAuction.com
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Provisioning through an Extranet (open your
Kimono)
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Inventory
E-Catalog Virtual inventories
Amazon
CD Now!
I-Cat
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Electronic Catalogs
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New businesses?
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Electronization of Business
Sale
Web-based Cash register Shopping carts Click
paths E-Catalog
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Customization of production of marketing
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New models of business

• Electronic auctions
• B2B
• B2C
• You bid for your price
• priceline.com
• Compare prices
• www.comparatel.com

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Does this apply to us?

• www.insure.com
• the consumer insurance guide
• we inform, you decide
• www.ambest.com
• insurance company ratings
• www.insureline.com
• oops I just invented this one ...

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Some sites

• www.alstate.com
• auto safety, safe driving,
• www.allamerica.com
• retirement plan service center
• online auto-quotes
• www.sunbelt-ins.com
• quotes
• customer tools

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Some customer tools

• Insurance information index
• file an auto e-claim loss notice
• make a change in the policy
• property e-claim loss notice
• home mortgage calculator
• auto and homeowners quote request form

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Marketing Surprises
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Industries are blurring

• Quicken
• tax returns
• internet access
• banking
• Insurance
• Online Brokerage
• INTUIT

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Electronization of Business
Sale
Web-based Cash register Shopping carts Click
paths E-Catalog
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Does a bank need a building?
Is a bank still a bank?
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Electronization of Business
Payment
Web-based Credit card E-cash Micropayments
Pay electronically
Virtual banks
Click ATT
E-cash- First virtual Mondex
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Messagemedia.com The First Virtual Internet
Payment System. Interactive
Messaging Services
Electronic Payments/ Messaging
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Cybercash.com The Cybercash is the leading
Provider of Secure Electronic Commerce Payment
Solution.And they are the only company that offer
Multiple Payment Types including Credit, Cash,
and Check.
Credit Card Payment Service
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Mondex Card
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Electronization of Business
Delivery
Tracking
Bitable Non-bitable
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Electronization of Business
The traditional reporting model is obsolete we
must have continuous data we must read
information directly from databases we must have
non-financial information
Assurance is more important now but it must be
continuous it must assure on identity in a
faceless international world we must assure
databases we must assure non-financial
information
Auditing
Accounting
Continuous Automatic Confirmation
Continuous ERPSs New Paradigms
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Electronization of Business
Information is so technical that must be
e-cared pre-sale information is essential and
will complete the sale customers some times hate
VRSs much technology can be used and must call
centers must be technological human machine
graceful hand-offs are necessary most important
part of the cycle
Pre-sale care
VRS Auto Responder
E-care
Tech support Lead Follows Help desk
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Electronization of Business
Click through banners tailored to the user by
geography by interest by other (community)
Site personalization
Marketing
Individual targeting Spaming Virtual
communities Customer party lines
Advertising
Web advertising Customization Banners
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Customization
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Levels of Marketing

• Brand Marketing
• Segment Marketing
• Individualized Marketing
• customization
• direct addressing

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Ethics

• Who owns customer information?
• Database usage and sharing
• Relationships with partners
• Information to customers
• Jurisdiction
• Culture and feelings

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Standards for information use
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Provisioning - ethics?
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Dis-intermediation
Airline Reservation
Travel Agent
Customer
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Dis-intermediation
Airline Reservation
Travel Agent
Customer
Reservation Database
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Dis-intermediation
Airline Reservation
Broker
Insurance agent
Pharmacist
Car dealer
Customer
Reservation Database
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Re-intermediation
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Conclusions

• It is not electronic commerce it is
  electronization!
• Traditional businesses will change (or in some
  cases disappear)
• Strategic choices will be of essence, in
  particular where to put our effort
• Indigenous Internet businesses have some
  advantages