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.
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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
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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
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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
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
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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
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Business/IT alignment
Suman Bhattacharya
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
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
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
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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.
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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
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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
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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
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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