1 e Commerce(Introduction)1st Slide

7/30/2019 1 e Commerce(Introduction)1st Slide

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E-Commerce

Suman Bhattacharya @[email protected]
http://www.fotosearch.com/IGS120/102_002/http://www.fotosearch.com/IGS120/102_003/http://www.fotosearch.com/IGS120/102_033/http://www.fotosearch.com/IGS120/102_005/http://www.fotosearch.com/IGS120/102_003/http://www.fotosearch.com/IGS120/102_002/http://www.fotosearch.com/sby107/22149nxs/http://www.fotosearch.com/IGS120/102_037/


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Electronic commerce, commonly known as(electronic marketing) e-commerce or e-

Commerce, consists of the buying and selling

ofproducts orservices over electronicsystems such as the Internet and other

computer networks.



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E-Commerce combines a range of processes, such as

e-mail, WWW, & internet applications to provide

ways to exchange information between individuals,

companies, countries across the globe.

Suman Bhattacharya

@[email protected]


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Key business Characteristics

Industrial Age Information AgeMass production Mass customization

Labour performs repetitive task Labour applies knowledge

Capital intensive Knowledge intensive

Capitalists own production means Labour owns production

means

Capital is primary driver Knowledge is primary driver



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What is a business model?

The method of doing business by which a company can

sustain itself how it generates revenue

A company produces a good or service and sells it to customers

Sales Cost of operations = Profits

Broadcasting: The broadcaster is part of a complex network ofdistributors, content creators, advertisers (and their agencies), andlisteners or viewers. Who makes money and how much is not alwaysclear. The bottom line depends on many competing factors.

Sustenance of the model depends on the companyspositioning of itself in the value chain and clearidentification of its core competencies

Suman Bhattacharya

suman93 2004 ahoo.co.in


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Value Chain

The list of activities that a company engages into provide its ultimate product or service

The primary activities are:

Inbound logistics, including procurement andreceiving

Operations

Outbound logistics, including warehousing anddistribution

Sales and marketing

Service

Suman Bhattacharya

@[email protected]


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Core Competencies

Every business must have a certain level ofcompetency in the activities that it performs

The core competency is what the company does

best. The most successful core competency is notnecessarily found in a specific activity but rather inmanaging the linkages between the activities ofthe business

Suman Bhattacharya

@[email protected]


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Customer

Support

Services

dell.com

ChipManufacturers MarketingOrganisations

Component

Manufacturers Dell.com

Accessories

Manufacturers

SoftwareDesign



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Business ModelPaul Timmers defined business model as:

A Business Model can be defined as an architecture forproduct, service and information flow, including a description

of various business players and their roles

A description of the potential benefit for the various business

players and

Revenue sources.

Suman Bhattacharya

@[email protected]

Afuah and Tucci

The method by which a firm builds and uses its resourcesto offer its customers better value than its competitors and tomake money doing so.


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Business Models

Michael Porter

The essence of strategy is choosing to

perform activities differently than rivals do

Competitive strategy is about being different. Deliberately choosing a different set of

activities to deliver a unique mix of value

Some definitions do not make a clear

distinction between strategy and models

Suman Bhattacharya

@[email protected]


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Business Processes

Information systems

Business

Model

Strategy

Planning

level

Architectural

level

Implementationlevel

Conceptual architectureof a business strategy

e-Business Technology layer

Positioning Objectives & goals

Communication of strategy

Avoid re-inventing strategy

e-Business Technology layer

Suman Bhattacharya

@[email protected]


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Business/IT alignment

Suman Bhattacharya

@[email protected]

STRATEGY

ORGANIZATION TECHNOLOGYFUNCTIONAL INTEGRATION

STRATEGIC FIT AUTOMATION LINKAGE

IN

TERNAL

EXTERNAL

BUSINESS STRATEGY I/T STRATEGY

ORGANIZATIONAL INFRASTRUCTURE

AND PROCESSES

IT INFRASTRUCTURE AND PROCESSES

BUSINESS

SCOPE

DISTINCTIVE

COMPETENCIES

BUSINESS

GOVERNANCEBUSINESS

SCOPE

TECHNOLOGY

SCOPE

I/T

GOVERNANCE

PROCESSES

ARCHITECTURES

SKILLSSKILLS

ADMINISTRATIVE

INFRASTRUCTURE

PROCESSES

Business

model


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An e-Business Model is an Answer

to the Question:

Who Pays?

For What?

To Whom?

And Why?Suman Bhattacharya

suman93 2004 ahoo.co.in

Customers for the Good / Service

Distribution, Consultancy, Training,

Installation, Customization, Integration, Audit

Data, Information, Expertise Knowledge,

InfrastructureAfter-Sales Service

Direct or Intermediated

Retailer, Franchisee, Value-Adder,

Transaction

Cost Advantage

Quality Advantage


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An e-Business Model framework

(questions)

Suman Bhattacharya

@[email protected]

Customer

relationship

Product

innovation

Financial

Aspects

Infrastructure

operationHOW?

WHO?WHAT?

HOW MUCH?

Who are our customers?

How do we reach them?

How we get and keep our

customers?

What are our key

competencies?

How we operate and

deliver?

How we collaborate?

What do we offer to our customers?

What are our revenues?Our pricing?

What are our costs?


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An e-Business Model framework

(concepts)

Suman Bhattacharya

@[email protected]

Customer

relationship

Product

innovation

Financial

Aspects

Infrastructure

operation

Capability

Configuration

Partnership

HOW?

Channel

Customer

Relationship

Proposition

WHAT?

Cost

Revenue

WHO?

HOW MUCH?


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Properties of e-Business Models:

Technology toBusiness Models

Technology cannot be an afterthought in forming

business strategy. The technology language now

mus tbe a business language

Suman Bhattacharya

@[email protected]


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Properties of e-Business Models:Shift Focus from Creatingto Experiencing

Do not use technology to onlycreate the product.

Use technology to enhance the end-to-endcustomer experience surrounding the product and

service, from selection and ordering to receivingand after-sales relationship management.

Suman Bhattacharya

@[email protected]


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Properties of e-Business ModelsShift Focus from Customizat ionto Personalization

e-Commerce enables l is teningto customers

Integrated, personalized service keepscustomers coming back

Suman Bhattacharya

@[email protected]


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Properties of e-Business Models:

Reversaland Unbundl ingof the Value Chain

Traditional value chain analysis focuses on

cost reduction to enhance profit margins

Reorient analysis in terms of customer needs

Begin with customer needs and work backward alongthe fulfillment chain; reversalof the value chain

Suman Bhattacharya

@[email protected]


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Advantage of E-commerce

24 * 7 Operation Global Reach

Cost of acquiring, serving & retaining

customers Customer controls the interaction

Knowledge of customer behavior

Suman Bhattacharya

@[email protected]


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Disadvantage of E-commerce

All the business process dont never providethemselves to e-commerce (e.g. unpreserved

food, high cost item etc.)

Cost & benefit hard to predict

Rapid technology change

Unwillingness of the customers to use the e-

commerce facility

Suman Bhattacharya

@[email protected]

1 e Commerce(Introduction)1st Slide

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