102 e-business model - 20 cases - v6.8 - update 9 jan 2014
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102 e-business model - 20 cases - v6.8 - update 9 jan 2014TRANSCRIPT
30 E-Business ModelsAnalysis
By Dr. Nguyen Van Thoan
ECOM & MIS & EMARKThink big, Start small, Action Fast
30 CASESThink big, Start small, Action Fast
30 CASESThink big, Start small, Action Fast
CLC.K49.TMAE306.2 Ecommerce Stories
• Day 4 – Chapter 2: Ebusiness Model• 8 key elements of Ebusiness model• 20 top stories about Ecommerce (success
and failure)• How many ways to sell online?• Guide Case for Presentation (See Forum).• Chapter 2 - Quiz
E-Commerce – CTTT, CLC, FB
E-Commerce - Dr. Nguyen Van Thoan
8 Key Elements of a Business Model1. Value proposition2. Revenue model3. Market opportunity4. Competitive environment5. Competitive advantage6. Market strategy7. Organizational development8. Management team
8
E-Business Model
• What can you tell us about Facebook & what can we learn from this e-business model?
800/955 million active
users
3rd size only after Google and Yahoo
New kind of e-commerce “Social e-
com”Largest: search engine, content,
ad networks500 shareholders 2006: Yahoo offer to
buy 1 bio
2007: MS buy 1,6% stake (240 mio) 15
bio
2011: Value 50 bio
2012: Value 104 bio
February 4, 2004Rev: 3.71 billion (2011)
May 14, 1984
Buy Disney ticket
12% of top Internet retailers
Ads – what,
locations, preferenc
e, behavior
…
Loser58035 mio
Lessons from this caseMay 14, 1984
1. Idea Software2. Programming as core competency3. INVESTOR4. Strategy Market5. Competition6. Community7. New application8. INFRASTRUCTURE
http://www.youtube.com/ecomftu2012
Behind the scene?May 14, 1984
Historyhttp://www.youtube.com/watch?v=sffGo3GAMIQ
Data Centerhttp://www.youtube.com/watch?v=Y8Rgje94iI0Data Center 2http://www.youtube.com/watch?v=nh0xEhxx4zk
http://www.youtube.com/ecomftu2012
E-Business Model• What can you tell us about Amazon.com & what can we
learn from this e-business model?Software development center
World largest130 publishers300.000 books 2 millions
2005: World’s 3largest Linux
DB25 HP servers
Amazon technologyCRM & ISM
See Turban, 2012, EC, page 100 & 546
KEYS: size – innovation – personalization – service quality
Founded: 1994
Rev: 48.07 billion (2011)Net income: 631 mioEmployees: 69.100
BooksEbooksDigital Third
Parties---
2003
Change Biz model: OWN inventory and logistics
Suggest box
Fulfillment & waehouse center
Gift ideas
Web fulfillment contractor for
Target
2 bioWare house
Leaders inWH mgmtAutomatio
nPackagingInventory
mgmt
Lessons from this case?
1. Biggest online store (FIRST)2. Make the products find customers
(SMART IDEA)3. Lower prices (MARKETING)4. Creative marketing techniques
(Customer comments, reviews, product recommendations and cross selling, etc…) - SMART
5. New technologies to reduce labor costs6. A shop that sells everything
See Turban, 2012, EC, page 100 & 546
Lessons from this case?
1. Supporting products2. Personalized customer services3. Outsourcing strategy (Supplier)4. Customer services and branding5. Customer loyalty6. Inventory management (New
strategies)
See Turban, 2012, EC, page 100 & 546
Behind the Scene?
Jeff Bezos talkhttp://www.youtube.com/watch?v=-hxX_Q5CnaA
Jeff Full Speechhttp://www.youtube.com/watch?v=YlgkfOr_GLYDistribution Centerhttp://www.youtube.com/watch?v=bfFsqbIn_3EYoutube channelhttp://www.youtube.com/user/amazon
Discussion – Star time!
• What are the key factors for a successful website?
What are the key factors to a successful website?• Loading time • Easy to read• One click to reach important thing• Good interface• Good background music• Fast and secure payment• Good SEO• Cookies and checking customer behaviors• Good design and structure of the website• Social network• Updated and precise information• Good security• Target market and segmentation
Dell Computer – Michael Dell
Dell World 2012 - Michael Dell’s Speechhttp://www.youtube.com/watch?v=5OqQq14d-dE
Youtube Channelhttps://www.youtube.com/dell
Wikipedia
History 1http://www.youtube.com/watch?v=gXD1TRGafQ0History 2http://www.youtube.com/watch?v=oVFPW0r4jWkWriterhttp://www.youtube.com/watch?v=3Knv6D6Thi0
E-Business ModelWhat can you tell us about Volkswagen
what can we learn from this e-business model?
90%Global
Purchases60 online
applicationsRFQ, contract, catalogue, order, payments…
See Laudon, 2012, EC, page 759
3rd largest car manufacturerproducing: 7.29 million carsRev: 175 billion USD (2010)Brand: Volkswagen, Audi, Bentley, Bugatii, Lamborghini… Porche (2011)390.000 employee
WEBSITE36,000 suppliers110,000 users
Online catalogue: 2.5 million itesmFrom 590 global
suppliers14.200 internal
users2010:
3.000 online contracts – value: 16.6 billion USD
61 plants – components, automotive parts… 60% rev – 100 billion/year
VWGroupSupply.comPrivate procurement portalB2B networkVs.CovisintFord, General Motors, Daimler Chrysler
ECAP (e-capacity management)
Material requirements400 suppliers
4.000 critical parts
Volkswagen means "people's car"pronounced [ˈvɔlksˌ v aːɡən]
2000: 1.500 2012: 200B2B marketplace
http://www.youtube.com/user/Volkswagen
E-Business ModelWhat can you tell us about Walmart
what can we learn from this e-business model?
2002Online order, help desk1 million products onlineSelling songs online2006: rebuild website – 4 clicks2007: Site to StoreRank 2nd to AmazonLink to Facecbook
See Turban, 2012, EC, page 143
Largest retailer in the worldRev: 405 billion (2010)2.1 million employees (1.4 U.S.)8.700 stores (15 countries)Low pricesOnline: 1996 – difficult2002: improvement
WEBSITEAbout Walmart.com
Target: 25.000 USD incomeOnline: 60.000 USD
Partner with AOLInternet connection
Walmart
Technology
Sam Walton (1918 – 1992)Started in 1962
Brick & Click http://www.youtube.com/user/Walmart
7Bill Gates
Michael DellJack Welch
IT as White House
E-Business Model1. selling shoes online
4. ShoeSite to Zappos "zapatos," "shoes"
See Turban, 2012, EC, page 143
5. Critical success factors:- Large selection- Fast delivery- Positive culture- Customer service
8. BRAND
* successful with shoes
* leverage into other products.
2. footwear in the US is a 40 billion dollar market 5% = mail order
3. Investment 500.000 USD
6. Amazon? leverage its supplier relationships, while maintaining a separate brand.
9. Order fulfillment- large warehouse of products- fast delivery
Brick & Click http://www.youtube.com/user/Walmart
7. “WOW” * customer experience * huge selection* excellent service
Sub of Amazon.comRetail1999Nevada, United StatesNick Swinmurn, founderProducts Shoes, handbags, eyewear, accessories, apparelRevenue US$1 billion (2009)Website zappos.com
November 2009Amazon buy for a reported $1.2 billionZappos has ten core values
Alibaba.com
Alibaba.com
1-22
E-commerce: Marketplace, B2B portal
Finding Buyer & Sellers
Adversiting products & services – 2 million businesses
US ? superpages
EU ? europages
Japan ? Vietnam ?
Subscription fee: 250 3.000 USD/year
Millions of China, US, EU, other firms
Competitive: local, free, trade promote org?
1st, leader, China firms ? What else?
Market strategy: one to one service?
Management TEAM? Jack Ma & 17 in 1999
79 million registered users240 countriesMarch 31, 2012.
‘Open, Sesame,’
Alibaba.com (advanced)
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
Website design? Server, software, security?
Valur for Seller?
Communication?
Value for Buyers?
CRM: Customer Relationship Management?
Services for Paid MEMBERS?
https://www.youtube.com/user/teamalibaba?feature=results_main
Boeing.com
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
Where are we?
Boeing.com
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
1. World largest2. Revenue from B2B NOT concern3. Concern: customer service !!!
Founded: Seattle, Washington, US (1916)
Founder(s): William E. BoeingRevenue: US$ 68.735 billion
Operating income: US$ 5.891 billionProfit: US$ 4.018 billion (2011)
Employees: 174,225 (June 28, 2012)
PARTS Single pointMaintenance SERVICE
Intermediary: supplier – airlines
ONE-STOP SHOPPING
Mechanic BOEING Producer
EDI Internet: normal PC, connection
http://www.boeing.com/commercial/747family/pf/pf_facts.html
Boeing.com
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
1996: PART online50% of customers½ million inquiries first year
Founded: Seattle, Washington, US (1916)
Founder(s): William E. BoeingRevenue: US$ 68.735 billion
Operating income: US$ 5.891 billionProfit: US$ 4.018 billion (2011)
Employees: 174,225 (June 28, 2012)
PARTS Single pointMaintenance SERVICE
Intermediary: supplier – airlines
ONE-STOP SHOPPING
Mechanic BOEING Producer
EDI Internet: normal PC, connection
http://www.boeing.com/commercial/747family/pf/pf_facts.html
Boeing.com
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
Practice Assignment: Create an account on YOUTUBE – advertising channel
E-Banking Solutions?
• What can you tell us about Facebook & what can we learn from this e-business model?
800/955 million active
users
Temenos hiện đang là đối tác chiến lược của các ngân hàng ở Việt Nam như: Techcombank, Military Bank, Sacombank, Sea Bank, VP Bank, Global Bank…
Industry Banking SoftwareFounded: Geneva, Switzerland
Products TEMENOS T24Insight: TEMENOS COREBANKING (TCB)
Revenue: $914 millionEmployees: 4,500
VIDEOShttp://www.temenos.com/products/t24/#
Core bankingCORE BANKING COMPARISONhttp://www.inntron.com/core_banking.html
E-Banking Solutions?
Joomla - VirtueMart
Channelhttp://www.youtube.com/watch?v=gXD1TRGafQ0
UPS
• DIAD - Delivery Information Acquisition Device
• Google – Data Center
Salefoce
• Online Services (Cloud)
FedEx
• IT lized Operation
ESPN
• Online news and digital content
REI
• CRM – Understand customers
Suzuki - Oracle
• Enterprise Database
MS – Dynamic CRM
• Enterprise Database
Sino Steel – ERP
• Enterprise Database
Groupon
• Enterprise Database
Etsy
• Marketplace
Ford – Auto Exchange
• B2B marketplace
IBM - Watson
• Intellectual Machine?
Alfresco
• Open source Document Management
Loreal - KM
• MS Sharepoint
Fresh Direct
• Online Grocery
IBM – BPM
• Business Process Management
MS – Dynamic CRM
• Enterprise Database
MS – Dynamic CRM
• Enterprise Database
MS – Dynamic CRM
• Enterprise Database
MS – Dynamic CRM
• Enterprise Database
MS – Dynamic CRM
• Enterprise Database
Building an E-commerce Site: A Systematic Approach
Video linksVideo links Amazon.com – Warehouse robots http://www.youtube.com/watch?v=Abvdd9UdBus Amazon.com – UK order fulfillment http://www.youtube.com/watch?v=gk5-blcvF9E Amazon.com – Jeff Bazoz interview http://www.youtube.com/watch?v=pVp6WqS7L0M Amazon.com – Order Fulfillment by A – FBA http://www.youtube.com/watch?v=jVVa83MnvdY
Copyright © 2012 Pearson Education, Inc. Slide 4-53
Building an E-commerce Site: A Systematic Approach
Video linksVideo links Tommy Hilfiger http://www.youtube.com/watch?v=POb10N4GSV0
Catalogue: Photo 3D Virtual model Video – youtube (embed)
Copyright © 2012 Pearson Education, Inc. Slide 4-54
Building an E-commerce Site: A Systematic Approach
Video linksVideo links Future supermarket http://www.youtube.com/watch?v=VykB2pVW_wg Future Retails in details http://www.youtube.com/watch?v=EX5d-aOdk7A Online shopping concepts http://www.youtube.com/watch?v=GAyvTVQdXqc Future model for Retail http://www.youtube.com/watch?v=f0gQP8ktmSA
Copyright © 2012 Pearson Education, Inc. Slide 4-55
Building an E-commerce Site: A Systematic Approach
Copyright © 2012 Pearson Education, Inc. Slide 4-56
Building an E-commerce Site: A Systematic Approach
Copyright © 2012 Pearson Education, Inc. Slide 4-57
Building an E-commerce Site: A Systematic Approach
Copyright © 2012 Pearson Education, Inc. Slide 4-58
http://www.youtube.com/user/tommyhilfiger
Case: Tommy HilfigerWorld best premium life style brands
Copyright © 2012 Pearson Education, Inc. Slide 4-59
Target: 18-35 2006: more than
online sale – more interactive
Casual clothing1.000 stores
2010 bought by, owner of Calvin Klein, for 3 bio USD
Online store since 2000 - catalogue
Online sale: 2004
Founded in 1985 by Tommy Hilfiger
Outsouce?VP: Ecommerce
LOOK and FEELIncrease: 30% sales2010-2011: Facebook – 1,7 mio LIKEs
Tommy.com
Founded in 1985 by Tommy HilfigerNet income: 1.6 bio (2009)
Case: Tommy Hilfiger - websiteIn business: 5 years – has brands
Copyright © 2012 Pearson Education, Inc. Slide 4-60
No new IT for Ecommerce Look & Feel
State of the Art
No infrastructure, no software, no IT staff
A website everyone can be proud of!Cool stuff on that!
ATG as solution provider – specialized in ecommerce
Facebook: 1.7 mio likes
iPhone apps
Virtual Fitting ROOM
360 degree views
CompateSuggestionsRead commentsSpecific cut and riseMobile versionSmart phone purchase
30 IT Applications
By Dr. Nguyen Van Thoan
Why E-Commerce is NOT Easy
HardwareComputer
Super-computer
Data center
Software
Networking
Programming
BusinessManagement
Manufacturing
ServiceSystem A&D Project
Management Ecom, Emark, MIS - Management
Server App developmentWeb devpt
Security
Cisco – CCNA - CCNP
IT ApplicationsCosts vs. Benefits
IT Applications
20E-Marketing
techniques/skills
20 excel skills
10 Applicable Rules in IT
By Dr. Nguyen Van Thoan
10 Applicable Rules in IT
http://en.wikipedia.org/wiki/Pareto_principle
20/80 rule
(1904 – 2008)(1848 – 1923)
80% of your sales come from 20% of your clients
Pareto noticed that 80% of Italy's land was owned by 20% of the population
richest 20% of the world's population controlling 82.7% of the world's income
Even if we take the ten wealthiest individuals in the world, we see that the top three (Carlos Slim Helú, Warren Buffett, and Bill Gates) own as much as the next seven put together
•80% of your profits come from 20% of your customers •80% of your complaints come from 20% of your customers •80% of your profits come from 20% of the time you spend •80% of your sales come from 20% of your products •80% of your sales are made by 20% of your sales staff
For example, Microsoft noted that by fixing the top 20% of the most reported bugs, 80% of the errors and crashes would be eliminated
10 Applicable Rules in IT
http://en.wikipedia.org/wiki/Pareto_principle
20/80 rule
(1904 – 2008)(1848 – 1923)
80% of your sales come from 20% of your clients
For example, Microsoft noted that by fixing the top 20% of the most reported bugs, 80% of the errors and crashes would be eliminated
The "90–9–1" version of this rule states that 1% of people create content, 9% edit or modify that content, and 90% view the content without contributing.
that 20% of a group will produce 80% of the activity
E-Commerce – CTTT, CLC, FB
E-Commerce - Dr. Nguyen Van Thoan
8 Key Elements of a Business Model1. Value proposition2. Revenue model3. Market opportunity4. Competitive environment5. Competitive advantage6. Market strategy7. Organizational development8. Management team
8
E-Commerce – CTTT, CLC, FB
E-Commerce - Dr. Nguyen Van Thoan
8 Keys to Success1. Passion (do it for love, not for money)2. Work3. Good4. Focus5. Push6. Creative/idea – Think7. Serve/share/Sacrifice 8. Persistence
8
E-Commerce – CTTT, CLC, FB
E-Commerce - Dr. Nguyen Van Thoan
8 Keys to Success
1. Quan hệ (duệ)2. Tài nghệ3. T… tệ4. H…. đệ 5. Công nghệ6. ….7. gEne8. hEalth ieMBA.b03 (gu/sai/rai/tai)
8
E-Commerce – CTTT, CLC, FB
E-Commerce - Dr. Nguyen Van Thoan
4 types of RICH
4
E-Commerce – CTTT, CLC, FB
E-Commerce - Dr. Nguyen Van Thoan
Day 1 – Introduction of Ecommerce• 10 notes for the Course1. Combination of Offline class & Online course2. Ecommerce (IT application in Commerce, Business &
Management)3. Minimum requirements: IT, Ecom, Emark, MIS basic
understanding & using computer4. Class participation: Read, Listen, Speak, T/W5. English improvement & Knowledge/Skills
E-Commerce – CTTT, CLC, FB
E-Commerce - Dr. Nguyen Van Thoan
Day 1 – Introduction of Ecommerce• 10 notes for the Course6. Web: http://elearning.ftu.vn7. Textbook: Ecommerce (Laudon, Turban – 2012)8. Group work: website (4-5)9. Individual: case presentation (2) – Telling stories!10.Assessment: 10/30/60- Quiz: 10% - Group/Website: 20%- Midterm: 10%- Individual: 20%- FINAL: 40%
E-Commerce – CTTT, CLC, FB
E-Commerce - Dr. Nguyen Van Thoan
Q1. What is electronic commerce?
What is electronic commerceDifferentiate E-Commerce & E-BusinessFind 2 examples to illustrate Ecom & Ebiz
E-Commerce – CTTT, CLC, FB
E-Commerce - Dr. Nguyen Van Thoan
Q2. What are the two key benefits of EC?
When top managers/directors consider implementation of IT application (or Ecommerce, Ebusiness application), what are the TWO most important things they need to know?
E-Commerce – CTTT, CLC, FB
E-Commerce - Dr. Nguyen Van Thoan
TMA.306E.1 - Clips EcommerceFuture of retail
E-Commerce – CTTT, CLC, FB
E-Commerce - Dr. Nguyen Van Thoan
TMA.306E.1 - Discussion Find an example of Ecom/Ebiz around you
Ecommerce
Online shop selling books
SMS Banking
Elearning
ATMInternet bankingVinatour.com.vnReal estate online advertising
Megastar
E-ticket (Airlines)
Advertise on fbMuachungappstore
Toeft.com
E-document on violet.com
Game online (Zing)
Hotel booking
Ebay online auction
E stock
E-conferenceAlibaba.com
Google store
Mobile marketing on mobile application
Email marketimgWebsite design service
tiki.vn
IKea
Newspaper subscription
Trial fee paid test online
Selling & buying copy right online
Buying clothes online
Unlock iPhone online
Vov.vn
Banner advertising
Online booking
Buying domainemedical
E-Commerce – CTTT, CLC, FB
E-Commerce - Dr. Nguyen Van Thoan
TMA.306E.1 - Discussion Benefits of Ecommerce?
Ecommerce
Faster Competitive price
Gain more customers
Recorded Find products easily
Lower Costs
Reduce travel time
Overcome geographical limitations
Better information
24/7 stores
more freedom
Increase profit/sales
No need physical officesMore Flexible
Global access
Less HR
Less inventory
Easy customers’ feedback
E-Commerce – CTTT, CLC, FB
E-Commerce - Dr. Nguyen Van Thoan
Day 1 – MIS (Ecom, Emark) – K51CTTT• 10 notes for the Course1. Combination of Offline class & Online course2. MIS (IT application in Commerce/Business &
Management)3. Minimum requirements: IT, Ecom, Emark, MIS basic
understanding & using computer4. Class participation: Read, Listen, Speak, T/W5. English improvement & Knowledge/Skills
E-Commerce – CTTT, CLC, FB
E-Commerce - Dr. Nguyen Van Thoan
Day 1 – MIS (Ecom, Emark) – K51CTTT• 10 notes for the Course6. Web: http://elearning.ftu.vn7. Textbook: Information Systesm Today 4th Edition, Valacich, 2010
(paper copy)Management Information Systems 12th Edition, Laudon,
2012 (ebook)6. Group work: website (4-5)7. Individual: case presentation (2) – Telling stories!8. Assessment: 10/30/60- Quiz: 10% - Group/Website: 20%- Midterm: 10%- Individual: 20%- FINAL: 40%`
E-Commerce – CTTT, CLC, FB
E-Commerce - Dr. Nguyen Van Thoan
Day 1 – MIS (Ecom, Emark) – K51CTTT• 10 Practice1. Word, Excel, Power Point2. Computer hardware, software3. Online applications4. Ecommerce skillls: website, selling online5. Emarketing skills: youtube, email6. Group/Website: 20%7. Midterm: 10%8. Individual: 20%9. FINAL: 40%
E-Commerce – CTTT, CLC, FB
E-Commerce - Dr. Nguyen Van Thoan
Q1. Who is CIO?
Who is CIO?What are the roles/responsibilities of CIO?Find one CIO of a company/organization/country.
FSB - Q2 - Who is CIO and The Roles of CIO in an organization?
Find a typical CIO in an organization, company, industry or even country. Tell smt about his or her roles and resposibilities in IT application.
E-Commerce – CTTT, CLC, FB
E-Commerce - Dr. Nguyen Van Thoan
Q1. Who is CIO?
What are the roles/responsibilities of CIO?
CEO
CFOCOO
CCOCAOCTO
CBDO-CMO
CSO
CPO
CHRO
CVO
CDO
CIO
CSO CNO CLO
E-Commerce – CTTT, CLC, FB
E-Commerce - Dr. Nguyen Van Thoan
Q2. What are the two key benefits of IT application in organization (biz, mag,
prod)
When top managers/directors consider implementation of IT application (or Ecommerce, Ebusiness application), what are the TWO most important things they need to know?
E-Commerce – CTTT, CLC, FB
E-Commerce - Dr. Nguyen Van Thoan
Q2. What are the two key benefits of IT application in organization (biz, mag, prod)
systematic
Better
secure
automated
Labour-saving
Maintain quality infomation
More efficient
Updated
Expand capacity
Globalization
More competitive
entertained
multitask
organised
Time-saving
Good analysis
Accurate
Faster updated
24/7
portable Cheaper
Work performance
Support decision-making
process
More convinent
Future investmemt
Cost reduction
Increse revenue
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