unit 31 criteria 3-3&4
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Unit 31: E-businessOperations
Session 13
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Learning Outcomes
3-3 Explain how the issues of trust andsecurity apply to supply chainmanagement
3-4 Evaluate use of the internet to improve
efficiency of the supply chain and addvalue for the final customer
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Topics
Review of Last session
Group ReportLecture
Trust and Security Internet Benefit - Evaluation
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Review of Last Session
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Topics Discussed
Web Auction
Marketplaces, SCM, and
networks
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Test of Baseline Knowledge
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Test of Baseline
Knowledge What are Trust and security considerations
in relation to e-business? for scm
What are specific benefits of the internet to: final customer
major manufacturers
retail chains
integration of supply chains;
growth of e-business
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Explain how the issues of trustand security apply to supply
chain management
CRITERIA 3-3
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Trust and Security the value of orders,
delay between ordering and delivery (lead time) and deferredpayment
necessitating high levels of trust between buying and sellingorganisations, especially when the items are strategicallyimportant to the buyer (often these items are specially made andsingle sourced);
their business relationship depends upon secure systems to
process their transactions
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Internet Security computer security specifically related to
the Internet.
Its objective is to establish rules and measures touse against attacks over the Internet.
The Internet represents an insecure channel for
exchanging information
Different methods have been used to protect thetransfer of data, including data encryption.
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Types of Data (Security)
Low Level Data
Mid- Level Data High- Level Data
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Types of Security
Network layer security
IPsec Protocol
Electronic mail security
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Value of Orders/ Sales
Increase in margins,
Increased staff motivation.
Customer satisfaction. Privileged relationships with the
partners.
Value to the company, staff, clients, andpartners.
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Lead time and Deferred Payments
The amount of time between the placingof an order and the receipt of the goodsordered.
A debt which has been incurred (order orservice rendered) and will be paid back atsome point in the future.
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High Level of Trust
Essential for business transactions to takeplace both in the physical and internetworld.
Key factor in determining e-biz success.
Trust = Credibility
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Building Credibility and Trust
Branding -- Name Recognition andReputation
Customer Service
Website Design
Usability
Information Quality and Objectivity Third party verification
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E-business Relationship
refers to the integration, within thecompany, of tools based on informationand communication technologies to
improve their functioning in order tocreate value for the enterprise, its clients,and its partners.
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E-business Relationship
enterprise and its clients,
enterprise-employee relationships,
enterprise with its different partners andsuppliers.
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E-business Relationship diagram
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Secure Systems
collective processes and mechanisms bywhich sensitive and valuable informationand services are protected from
publication, tampering or collapse byunauthorized activities or untrustworthyindividuals and unplanned events
respectively.
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Secure Systems Objective
objective of computer security includesprotection of information and propertyfrom theft, corruption, or natural disaster,
while allowing the information andproperty to remain accessible andproductive to its intended users
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How to install Security
By Design
By Architecture
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Evaluate use of the internet to
improve efficiency of thesupply chain and add valuefor the final customer
Criteria 3-4
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Internet Benefits - Evaluation
using industry networks on the internet allows; benefits that can bepassed on to the final customer ie faster introduction of new products,
more responsive supply chains and lower costs;
the major manufacturers and retail chains compete not as individualorganisations, but as organisations together with their supply chains hence the importance of supply chain management;
the internet is making a major contribution to the integration of
supply chains; the continued growth of this aspect of b2b e-business will make it by
far the most significant application in excess of ten times the value ofb2c e-business
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Final Customer
Faster Delivery of Products
Availability of New Products
Information on products and the market as a
whole readily available Convenience
Enable product comparison
Value added service Easy for customers to request specific
information
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Supply chains
Responsive
Lower costs
Convenience Collaboration
Increase productivity
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Major manufacturers
Increase brand awareness and product line Provide extensive updated information of their product range Low operational cost Increase efficiency Maximum return on investment for any manufacturing business.
Can directly open a dedicated channel to service the end customers Reduces the dependency on retail or channel partners, leading to
costs benefits. Easier to target smaller consumer and niche markets Establishing new opportunities and relationships with potential
customers, business associates Can control who they target and can send out notifications as and
when they want Direct access to his customers and brand patrons, as there are no
middlemen and no mediums.
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Retail Chains
Consumers can order online
Retail chains can display their productsand prices online
Increase profit
Brand awareness
Infinite shelf space available
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B2B continuing Growth
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B2B continuing Growth
Five types of growth have to be managed as thecompany initiative matures:
a growth in the strategy and objectives of the initiatives;
a growth in the structure of the e-commerceimplementation within the organisation; a growth in the types of e-commerce technologies and
applications used; a growth in the focus of the implementation; and a growth in the level of management involved in the
implementation.
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END OF SESSION
See you next meeting
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