COMP 6125 An Introduction to Electronic

Commerce

Session 4: E-Business Strategies

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

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)

Internal Business Systems

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

Enterprise Communication & Collaboration

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)

Supply Chain Management

• Supply chain – part of an industry value chain that precedes a particular strategic business unit

• Company’s 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

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

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

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

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

Support Activities

• Include general categories of:– Finance and administration

– Human resource development

– Technology development

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

Human Resource Development

• Hiring of employees

• Training or employees

• Evaluating employees

• Administering benefits

• Complying with government record-keeping regulations

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

Electronic Commerce

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

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

Home Assignment

• Read Chapter 5, pg 217-254

Links

• Reference

• Of Interest– “How To Fashion Your New E-Business

Model”, http://hbswk.hbs.edu/item/3007.html