Download - Class 12, 13 and 14
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Supply Chain Management
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Supply Chain Management
• Supply chain management (SCM) is the management of the flow of goods and services.
• It includes the movement and storage of raw materials, work-in-process inventory, and finished goods from point of origin to point of consumption.
• Interconnected or interlinked networks, channels and node businesses are involved in the provision of products and services required by end customers in a supply chain.
• Supply chain management has been defined as the "design, planning, execution, control, and monitoring of supply chain activities with the objective of creating net value, building a competitive infrastructure, leveraging worldwide logistics, synchronizing supply with demand and measuring performance globally."
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Benefits of supply chain management
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Realization of benefits
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Members of the supply chain: (a) simplified view, (b)
including intermediaries
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A typical supply chain for a B2B company
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Push and pull approaches to supply chain management
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Push and pull approaches to supply chain management
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A typical IS infrastructure for supply chain management
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Alternative strategies for modification of the e-business
supply chain
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E-Procurement
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The 5 Rights of E-Procurement
• at the right price
• delivered at the right time
• are of the right quality
• of the right quantity
• from the right source.
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Key procurement activities within an organization
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Process flow analysis for traditional procurement
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Process flow analysis for new procurement
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Use of different information systems for different aspects
of the fulfilment cycle
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The three main e-procurement model alternatives for
buyers
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Integration between e-procurement systems and
catalogue data
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E-Marketing
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E-Marketing
• Marketing is the management process responsible for identifying,
anticipating and satisfying customer requirements profitability
• Which e-marketing tools can assist?
• Web, e-mail, databases, wireless and digital television
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The operational and management processes of e-
marketing
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The operational and management processes of e-
marketing
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The e-marketing plan in the context of other plans
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SOSTAC– a generic framework for e-marketing planning
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Inputs to the e-marketing plan from situation analysis
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Stages in target marketing strategy development
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Channels requiring integration as part of integrated e-
marketing strategy
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Channel integration required for e-marketing and mixed-
mode buying
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The elements of the marketing mix
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E- Customer Relationship
Management
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E-CRM – A Definition
• E-CRM is:
• Applying…Internet and other digital technology… (web, e-mail, wireless, iTV, databases)
• to… acquire and retain customers (through a multi-channel buying process and customer lifecycle)
• by…improving customer knowledge, targeting, service delivery and satisfaction
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Marketing Applications of CRM
• A CRM system supports the following marketing applications:– Sales force automation (SFA). Sales representatives are supported in their account
management through tools to arrange and record customer visits
– Customer service management. Representatives in contact centres respond to customer requests for information by using an intranet to access databases containing information on the customer, products and previous queries
– Managing the sales process. This can be achieved through e-commerce sites, or in a B2B context by supporting sales representatives by recording the sales process (SFA)
– Campaign management. Managing ad, direct mail, e-mail and other campaigns
– Analysis. Through technologies such as data warehouses and approaches such as data mining, which are explained further later in the chapter, customers characteristics, their purchase behaviour and campaigns can be analyzed in order to optimize the marketing mix.
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The four classic marketing activities of customer
relationship management
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Reach–Act–Convert–Engage model
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A summary of how the Internet can impact on the buying
process for a new purchaser
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Different information sources as important when
researching a product or service
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Activity segmentation of a site requiring registration
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Customer life cycle segmentation
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An overview of the components of CRM technologies
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E-Payment system
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Tools used to establish secure Internet communications
channels
• Secure Sockets Layer (SSL)/Transport Layer Security (TLS)—This is the most common form of securing channels. The SSL protocol provides data encryption, server authentication, client authentication, and message integrity for TCP/IP connections.
• Virtual private networks (VPNs)—These allow remote users to securely access internal networks via the Internet, using PPTP, an encoding mechanism that allows one local network to connect to another using the Internet as the conduit.
• WPA2—the most current wireless security standard uses the AES algorithm for encryption and CCMP, a more advanced authentication code protocol
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Tools to protect networks, the servers, and clients
• Firewalls—software applications that act as filters between a company’s
private network and the Internet itself, preventing unauthorized remote client
computers from attaching to your internal network.
• Proxies—software servers that act primarily to limit access of internal clients
to external Internet servers and are frequently referred to as the gateway.
• Intrusion detection and prevention systems (IDS/IDP)—an IDS examines
network traffic, watching to see if it matches certain patterns or preconfigured
rules indicative of an attack, while an IPS has all of the funcationality of an
IDS with the additional ability to take steps to prevent and block suspicious
activities.
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Tools to protect networks, the servers, and clients
• Operating system controls—built-in username and password
requirements that provide a level of authentication. Some operating
systems also have an access control function that controls user access
to various areas of a network.
• Anti-virus software—a cheap and easy way to identify and eradicate
the most common types of viruses as they enter a computer, as well as
to destroy those already lurking on a hard drive.
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Types of Payment Systems
• Cash
• Checking Transfer
• Credit Card
• Stored Value
• Accumulating Balance
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Cash
• Legal tender defined by a national authority to represent value
• Most common form of payment in terms of number of transactions
• Instantly convertible into other forms of value without intermediation of
any kind
• Portable, requires no authentication, and provides instant purchasing
power
• “Free” (no transaction fee), anonymous, low cognitive demands
• Limitations: easily stolen, limited to smaller transaction, does not
provide any float
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Checking Transfer
• Funds transferred directly via a signed draft or check from a
consumer’s checking account to a merchant or other individual
• Most common form of payment in terms of amount spent
• Can be used for both small and large transactions
• Some float
• Not anonymous, require third-party intervention (banks)
• Introduce security risks for merchants (forgeries, stopped payments),
so authentication typically required
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Credit Card
• Represents an account that extends credit to consumers, permitting
consumers to purchase items while deferring payment, and allows
consumers to make payments to multiple vendors at one time
• Credit card associations: Nonprofit associations (Visa, MasterCard) that
set standards for issuing banks
• Issuing banks: Issue cards and process transactions
• Processing centers (clearinghouses): Handle verification of accounts
and balances
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Stored Value
• Accounts created by depositing funds into an account and from which
funds are paid out or withdrawn as needed
– Examples: Debit cards, gift certificates, prepaid cards, smart cards
– Debit cards: Immediately debit a checking or other demand-deposit account
– Peer-to-peer payment systems such as PayPal a variation
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Accumulating Balance
• Accounts that accumulate expenditures and to which consumers make
period payments
– Examples: utility, phone, American Express accounts
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Current Online Payment Systems
• Credit cards are dominant form of online payment, accounting for
around 80% of online payments in 2005
• New forms of electronic payment include:
– Digital cash
– Online stored value systems
– Digital accumulating balance payment systems
– Digital credit accounts
– Digital checking
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Digital Cash
• One of the first forms of alternative payment systems
• Not really “cash”: rather, are forms of value storage and value
exchange that have limited convertibility into other forms of value, and
require intermediaries to convert
• Many of early examples have disappeared; concepts survive as part of
P2P payment systems
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Online Stored Value Systems
• Permit consumers to make instant, online payments to merchants and
other individuals based on value stored in an online account
• Rely on value stored in a consumer’s bank, checking, or credit card
account
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Digital Accumulating Balance Payment Systems
• Allows users to make micropayments and purchases on the Web,
accumulating a debit balance for which they are billed at the end of the
month
• Examples: Qpass, Valista, Clickshare, Click & Buy, Peppercoin
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Digital Credit Card Payment Systems
• Extend the functionality of existing credit cards for use as online
shopping payment tools
• Focus specifically on making use of credit cards safer and more
convenient for online merchants and consumers
• Example: eCharge
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Digital Checking Payment Systems
• Extend the functionality of existing checking accounts for use as online
shopping payment tools
• Examples: PayByCheck, Western Union MoneyZap
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Online Credit Card Transactions
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The key participants in processing card payments online
include
• Acquiring bank
• Credit card association
• Customer
• Issuing bank
• Merchant
• Payment processing service
• Processor
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The SET (Secure Electronic Transaction) Protocol
• Authenticates cardholder and merchant identity through use of digital
certificates
• An open standard developed by MasterCard and Visa
• Transaction process similar to standard online credit card transaction,
with more identity verification
• Thus far, has not caught on much, due to costs involved in integrating
SET into existing systems, and lack of interest among consumers
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How SET Transactions Work
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Digicash: How First Generation Digital Cash Worked
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Most Common Payment Systems, Based on Number Of
Transactions
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Most Common Payment Systems, Based on Amount
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Various Payment Methods Offered Online Merchants
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Electronic Billing Presentment and Payment (EBPP)
• Online payment systems for monthly bills
• EBPP expected to grow rapidly, to an estimated 40% of all households
by 2007
• Main business models in EBPP market include:
– Biller-direct
– Consolidator
• Above are supported by EBPP infrastructure providers
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Major Players in the EBPP Marketspace
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B2B Payment Systems
• More complex than B2C
• Major types:
– Systems that replace traditional banks (example: TradeCard, Orbian)
– Financial institutions hoping to extend to the B2B marketplace
– Credit card companies
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