erp & commerce by ahlam
TRANSCRIPT
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ERP & E-Commerce
P
reparedb
y:
Ahlam
Ansari
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ERP
(Enterprise Resource Planning)2
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Facilitates business,supplier, and customer
information flows
Supports basicinternal business
processes
An integratedsuite of software
modules
The backbone ofbusiness processes
A cross-functionalenterprise system
ERP
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ERP software is a family of software modules that supports the
business activities involved in vital back-office processes.
ERP gives a company an integrated real-time view of its core
business processes, such as production, order processing andinventory management.
ERP systems track business resources (such as cash, rawmaterials, and production capacity), and the status of
commitments made by the business (such as customer orders,purchase orders, and employee payroll), no matter whatdepartment has entered the data into the system.
Characteristics of ERP
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ERP software suites typically consist ofintegrated modules of:
Manufacturing
Distribution
Sales
Accounting
Human Resource applications
Characteristics of ERP (continued)
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ERP Application Components
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Benefits and Challenges of ERP
ERP Business Benefits
1. Quality & efficiency
2. Decreased costs
3. Decision support
4. Enterprise agility
ERP Challenges
1. High risk & cost
2. Hardware and softwareare a small part ofoverall project
3. Failure can cripple or killa business
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Costs of implementing a new ERP
system
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Causes of ERP Failures
Common Causes of ERP Failure
Over-reliance
on ERP vendoror consultants
Under-estimating the
complexity ofplanning,development,
training
Failure toinvolve affected
employees inplanning anddevelopment
Trying to do toomuch, too fast
Insufficienttraining
Insufficient dataconversion and
testing
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Electronic Commerce
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Is more than just
buying and selling
products online
Relies on theresources of the
Internet, intranets,
extranets, and other
technologies
Is the online process of
developing, marketing, selling,
delivering, servicing, and paying
for products & services transactedon internetworked, global
marketplaces of customers, with
the support of a worldwide
network of business partners.
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Electronic Commerce Fundamentals
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E-commerce
is changing
the shape of
competition
E-commerce is
changing the
speed of action
E-commerce is
changing streamlining
of interactions ,
products andpayments from
customers to
companies and from
companies to
suppliers
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The Scope of e-Commerce
There are a range of business processes involved in the
marketing, buying, selling, and servicing in e-commerce.
Companies involved in e-commerce as either buyers or
sellers rely on Internet-based technologies and e-
commerce applications and services to accomplish
marketing, discovery, transaction processing, and product
and customer service processes.
The Internet, Intranets, and extranets provide vital
electronic commerce links between the components of a
business and its customers, suppliers, and other businesspartners.
This allows companies to engage in three basic categories
of electronic commerce applications.13
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Categories of e-Commerce
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Business-to-
Consumer
(B2C)
Business-to-Business
(B2B)
Consumer-to-Consumer
(C2C)
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B2C e-Commerce
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e-commerce websites that providevirtual storefronts andmultimedia catalogues .
Online customer support Interactive order processing
Secure electronic payment systems
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B2B e-Commerce
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Secure Internet or extranet e-commerce websites
Electronic data interchange (EDI) via the Internet or
extranets for computer-to-computer exchange of e-
commerce documents
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C2C e-Commerce
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C2C is an important e-commerce alternative for B2C
or B2B e-commerce.
Personal advertising of products or services to buy or sell by
consumers at electronic newspaper sites, consumer e-
commerce portals, or personal websites is an important form ofC2C e-commerce.
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Bricks and Clicks in
E-Commerce
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It is a business model by which a company integrates both offline
(bricks) and online (clicks) presences.
A popular example of the bricks and clicks model is when a chain
of stores allows the customer to order products either online or
physically in one of their stores, also allowing them to either
pick-up their order directly at a local branch of the store or get itdelivered to their home. There are many alternative
combinations of this model.
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Bricks and Clicks
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Alternatives and benefits trade-offs for an
integrated or separate e-commerce business
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Spin-Off
Strategic
Partnership
Joint
Venture
In-
HouseDivision
Separation
Greater FocusMore Flexibility
Access to Venture Funding
Integration
Established BrandStored Information
Purchasing Leverage
Distribution Efficiencies
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A formal alliance between two commercial
enterprises, where each possesses one or morebusiness assets that will help the other.Eg. Rite Aid and DrugStore.com
Strategic Partnership
The creation of an independent companythrough the sale or distribution of new shares of
an existing business/division of aparent company.Eg. Barnesandnoble.com
Spin Off
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A joint venture is a business agreement in whichparties agree to develop, for a finite time, a new entity
and new assets by contributing equity.Eg. KB Toys BrainPlay.com
Conducting an activity or operation within acompany, instead of relying on outsourcing.A
firm uses its own employees and time to keep adivision or business activity, such as financingor brokering, in-house.Eg. OfficeDepot.com
In-House Division
Joint Venture
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Other Clicks and Bricks Strategies
Other clicks and bricks strategies range from:
Partial e-commerce integration using joint ventures and
strategic partnerships.
Complete separation via the spin-off of an independente-commerce company.
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Benefits and challenges of a completely separate
clicks and bricks strategy
Access to venture capital funding,
create an entrepreneurial culture,attract quality management,
maintain a high degree of business flexibility, and
accelerate decision-making.
Benefits of a partially integrated clicks and bricks
strategy
Sharing established brands
Sharing key business information
Joint buying power
Distribution efficiencies
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Questions???
to beDiscussed.
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1. Explain Enterprise Resource Planning
in detail.
2. What is E-commerce? Explain the
clicks and bricks strategy of E-
commerce.
3. What is e-commerce? Explain thethree basic categories of e-commerce
with examples.26
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[1] Management
Information Systems,
6th/Ed.
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References
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THANKYOU
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