COMP 6125 An Introduction to Electronic Commerce

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COMP 6125 An Introduction to Electronic Commerce

• Session 4 E-Business Strategies

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Introduction

• Any business term that relies on an automated
  information system
• Involves business processes spanning the entire
  value chain
• Electronic purchasing and supply chain
  management, processing orders electronically,
  handling customer service, cooperating with
  business partners
• Allows organizations to link internal and
  external data processing systems more efficiently
  and flexibly, to work more closely with suppliers
  and partners, and to better satisfy the needs and
  expectations of their customers

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Introduction

• Usually includes e-commerce, but not limited to
  it
• Can be divided into 3 categories
• Internal business systems (CRM, ERP, HRM, DMS)
• Enterprise communication and collaboration
• Electronic commerce (B2B, B2C)

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Internal Business Systems

• This involves, inter alia
• Customer Relationship Management
• Human Resource Development
• Document Management Systems
• Enterprise Resource Planning

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Enterprise Communication Collaboration
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Purchasing Activities

• Identifying vendors
• Evaluating vendors
• Selecting specific products
• Placing orders
• Resolving issues that may arise after receipt of
  goods or services (late delivery, incorrect
  quantity/quality, etc)

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Supply Chain Management

• Supply chain part of an industry value chain
  that precedes a particular strategic business
  unit
• Companys supply chain for a particular product
  or service includes all activities undertaken by
  every predecessor in the value chain to design,
  produce, promote, market, deliver and support
  every individual component of that product or
  service

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Electronic Marketplaces Portals For Businesses

• E-marketplace virtual space in which companies
  in an industry can contact each other and
  transact business
• Portal doorway to the Internet for industry
  members of services within one specific industry

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Logistics Activities

• Includes managing inbound movements of materials
  and support, and outbound movements of finished
  goods and services.
• Examples receiving, warehousing, controlling
  inventory, scheduling and controlling vehicles,
  distributing finished goods

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Logistics Activities

• The Web and Internet provide increasing
  opportunities to manage these activities better
• For example lower transaction costs, constant
  connectivity between firms engaged in logistics
  management
• Web-enabled automation saves companies millions
  each year in their warehousing operations
  assists companies to be viewed as information
  management firms also

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Logistics Activities

• Many companies have integrated online tracking
  systems to enable customers to keep track of
  shipping information and where the current
  product is in the shipping process
• Examples Schneider Logistics, J.B. Hunt, FedEx,
  UPS

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Support Activities

• Include general categories of
• Finance and administration
• Human resource development
• Technology development

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Finance And Administration

• Making payments
• Processing payments received
• Planning capital expenditure
• Budgeting and planning to ensure future costs are
  met
• Operation of the computer infrastructure of the
  organization

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Human Resource Development

• Hiring of employees
• Training or employees
• Evaluating employees
• Administering benefits
• Complying with government record-keeping
  regulations

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Technology Development

• Activities dependent on the nature of the
  organization
• For example
• Networking research scientists into virtual
  collaborative workgroups
• Posting research results
• Publishing research papers online
• Providing connections to outside sources of
  research and development services

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Electronic Commerce

• See Session 4 B2B, B2C, C2C and B2G E-Commerce

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Independent Industry Marketplaces

• Types
• Industry marketplaces focused on a single
  industry
• Independent exchanges not controlled by a
  company that was an established buyer or seller
  in the industry
• Public marketplaces open to new buyers and
  sellers just entering the industry

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Home Assignment

• Read Chapter 5, pg 217-254

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Links

• Reference
• Of Interest
• How To Fashion Your New E-Business Model,
  http//hbswk.hbs.edu/item/3007.html