4.1 prof jess role @ ueab 2012 4 4 the digital firm: electronic commerce & electronic commerce...
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4.4.11Prof Jess Role @ UEAB 2012
44THE DIGITAL FIRM:THE DIGITAL FIRM:
ELECTRONIC COMMERCE ELECTRONIC COMMERCE & &
ELECTRONIC BUSINESSELECTRONIC BUSINESS
4.4.22Prof Jess Role @ UEAB 2012
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
4.4.33Prof Jess Role @ UEAB 2012
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**
4.4.44Prof Jess Role @ UEAB 2012
As a manager, you will want to know how your firm can benefit from e-
business and e-commerce.
4.4.55Prof Jess Role @ UEAB 2012
MANAGEMENT CHALLENGESMANAGEMENT CHALLENGES
• EMERGING DIGITAL FIRMEMERGING DIGITAL FIRM
• ELECTRONIC COMMERCEELECTRONIC COMMERCE
• ELECTRONIC BUSINESSELECTRONIC BUSINESS
• CHALLENGES & OPPORTUNITIESCHALLENGES & OPPORTUNITIES
**
4.4.66Prof Jess Role @ UEAB 2012
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
**
4.4.88Prof Jess Role @ UEAB 2012
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
**
4.4.99Prof Jess Role @ UEAB 2012
INTERNET TECHNOLOGY & INTERNET TECHNOLOGY & THE DIGITAL FIRMTHE DIGITAL FIRM
• 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
**
4.4.1010Prof Jess Role @ UEAB 2012
INTERNET TECHNOLOGY & INTERNET TECHNOLOGY & THE DIGITAL FIRMTHE DIGITAL FIRM
• 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
**
4.4.1111Prof Jess Role @ UEAB 2012
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
**
4.4.1313Prof Jess Role @ UEAB 2012
• 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
**
INTERNET BUSINESS MODELSINTERNET BUSINESS MODELS
4.4.1414Prof Jess Role @ UEAB 2012
• 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
**
INTERNET BUSINESS MODELSINTERNET BUSINESS MODELS
4.4.1515Prof Jess Role @ UEAB 2012
• 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
**
INTERNET BUSINESS MODELSINTERNET BUSINESS MODELS
4.4.1616Prof Jess Role @ UEAB 2012
• 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
**
INTERNET BUSINESS MODELSINTERNET BUSINESS MODELS
4.4.1717Prof Jess Role @ UEAB 2012
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
**
4.4.1818Prof Jess Role @ UEAB 2012
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
**
4.4.1919Prof Jess Role @ UEAB 2012
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
**
4.4.2222Prof Jess Role @ UEAB 2012
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
**
4.4.2626Prof Jess Role @ UEAB 2012
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
4.4.2828Prof Jess Role @ UEAB 2012
INTRANETS AND INTRANETS AND ELECTRONIC BUSINESSELECTRONIC BUSINESS
• BENEFITSBENEFITS
• FUNCTIONAL APPLICATIONSFUNCTIONAL APPLICATIONS
• SUPPLY CHAIN MANAGEMENTSUPPLY CHAIN MANAGEMENT
**
4.4.3030Prof Jess Role @ UEAB 2012
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**
4.4.3131Prof Jess Role @ UEAB 2012
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**
4.4.3232Prof Jess Role @ UEAB 2012
FUNCTIONAL APPLICATIONS:FUNCTIONAL APPLICATIONS:
• FINANCE & ACCOUNTINGFINANCE & ACCOUNTING
• HUMAN RESOURCESHUMAN RESOURCES
• SALES & MARKETINGSALES & MARKETING
• MANUFACTURING & PRODUCTIONMANUFACTURING & PRODUCTION
**
4.4.3333Prof Jess Role @ UEAB 2012
FINANCE & ACCOUNTING:FINANCE & ACCOUNTING:
• GENERAL LEDGER REPORTINGGENERAL LEDGER REPORTING
• PROJECT COSTINGPROJECT COSTING
• ANNUAL REPORTSANNUAL REPORTS
• BUDGETINGBUDGETING
**
4.4.3434Prof Jess Role @ UEAB 2012
HUMAN RESOURCES:HUMAN RESOURCES:
• CORPORATE POLICIESCORPORATE POLICIES
• EMPLOYEE SAVINGS PLANSEMPLOYEE SAVINGS PLANS
• BENEFITS ENROLLMENTBENEFITS ENROLLMENT
• ON-LINE TRAININGON-LINE TRAINING
• JOB POSTINGJOB POSTING
**
4.4.3535Prof Jess Role @ UEAB 2012
SALES & MARKETING:SALES & MARKETING:
• COMPETITOR ANALYSISCOMPETITOR ANALYSIS
• PRICE UPDATESPRICE UPDATES
• PROMOTIONAL CAMPAIGNSPROMOTIONAL CAMPAIGNS
• SALES PRESENTATIONSSALES PRESENTATIONS
• SALES CONTRACTSSALES CONTRACTS
**
4.4.3636Prof Jess Role @ UEAB 2012
MANUFACTURING & PRODUCTIONMANUFACTURING & PRODUCTION::
• QUALITY MEASUREMENTSQUALITY MEASUREMENTS
• MAINTENANCE SCHEDULESMAINTENANCE SCHEDULES
• DESIGN SPECIFICATIONSDESIGN SPECIFICATIONS
• MACHINE OUTPUTMACHINE OUTPUT
• ORDER TRACKINGORDER TRACKING
**
4.4.3737Prof Jess Role @ UEAB 2012
SHIPPINGSHIPPING INVENTORYINVENTORY
PLANNING & PLANNING & FORECASTINGFORECASTING
ORDER ORDER PROCESSINGPROCESSING
PRODUCTIONPRODUCTION
PROCUREMENTPROCUREMENT
ACCOUNTINGACCOUNTING
SUPPLIERSSUPPLIERSCUSTOMERSCUSTOMERS
LOGISTICS LOGISTICS SERVICESSERVICES
DISTRIBUTORSDISTRIBUTORS
INTRANETINTRANETINTRANET
SUPPLY-CHAIN MANAGEMENTSUPPLY-CHAIN MANAGEMENT
4.4.3838Prof Jess Role @ UEAB 2012
CHALLENGES & OPPORTUNITIESCHALLENGES & OPPORTUNITIES
• UNPROVEN BUSINESS MODELSUNPROVEN BUSINESS MODELS
• BUSINESS PROCESS CHANGE BUSINESS PROCESS CHANGE REQUIREMENTSREQUIREMENTS
• CHANNEL CONFLICTSCHANNEL CONFLICTS
• LEGAL ISSUESLEGAL ISSUES
• SECURITY & PRIVACYSECURITY & PRIVACY
**
4.4.3939Prof Jess Role @ UEAB 2012
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.
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