E- Business and Value Chains

IB3B00 2012/2013

Module Handbook

M. C. Escher, Spherical Spiral

Module Tutors

Dr Daniel Chicksand (NIE) Dr Carlos Mena

Mr Nigel Pye Mr Ross Ritchi

Email:

Daniel.chicksand@wbs.ac.uk Tel. ext. 28238

Office: B2.10 (2nd Floor WBS Scarman Road)

Daniel.Chicksand@wbs.ac.uk

1. Module Aims The business environment is constantly changing. However, for many the arrival of the internet has heralded a new more radical period of change. For organisations able to harness new technology, there have been exciting opportunities for creating competitive advantage, but for those organisations unable to effectively respond, they have entered a period of considerable uncertainty. Today, Internet business is an integral part of everyday life for both business and consumer. Examples of the way the internet pervades all parts of society are many: the WEB 2.0 environment has enabled rich social interaction through on-line social networks; the way we shop has adapted through the arrival of, for example, eBay, Amazon and on-line travel agents; and, the way organisations manage their supply chains and supply relationships now includes the use of on-line commercial applications. E-business is here to stay. However, organisations and individuals should understand how their existing business models need to be skilfully merged with new innovations. It is not a matter of replacing everything with e-business, but understanding how, for example, to extend traditional marketing principles to make them effective in the on-line environment (such as the use of viral marketing) or how best to automate aspect of the procurement process (e-procurement applications). For some organisations this change is a natural extension to their current offering to customers, but for others this requires a much more fundamental re-think to their current value proposition. For instance, the arrival of the on-line world has challenged the traditional print business. To create competitive advantage publishers have had to devise new mediums for delivering news, such as daily downloads of their newspaper direct to customers PDA devices (Kindle, I-Phone etc.). On completion of this module you will have developed a basic knowledge and understanding of:

the changing business environment created by technological advancements in IT and the value that is generated by moving into virtual environments;

the business models, strategies and associated technology of e-business models for analysis of value chains;

the use and abuse of electronic/cyber marketing for generating competitive advantage and/or failure particularly in relation to developing domestic and export markets;

an organisation's physical supply chains to identify the potential role of e-business models for value creation;

the risk and security problems in virtual value chains, and the methods available to minimise

them; the improvements to the design and implementation of an electronic, procurement,

marketing and SCM strategy for an organisation.

2. Teaching & Learning Methods

The management of businesses and supply chains with the use of IT tools is a broad and constantly developing area in both the academic and practitioner arena. We will set out to examine the major issues in this fast developing managerial area through a mixture of lectures, short exercises, simulations and case analysis, to make the delivery as interactive as possible. In addition, we may have  the  opportunity  to  analyse  ‘live’  problems  with  representatives  from  a  number  of  organisations  for whom the management of aspects of e-business (i.e. e-procurement or e-marketing) is of a central concern. Lectures: Each topic will be introduced in a 2 hour lecture. The lectures will be based on the topics indicated in the right hand column of the programme outline that is presented later in this handbook. The lecture will include time to de-briefing the cases. Case Studies: Case studies discussions will be structured around several questions - designed to bring out some of the key issues associated with the topic. You are expected to prepare for these case studies by reading the material specified in the study schedule. All of the readings will help you to understand the course. What we provide to you: You will be given readings for the following week. This will include articles, case studies and chapters from textbooks. You will be expected to have read the indicated resources and be prepared to discuss them in the next session. In some circumstances preparation questions may be posted on my.wbs or given out in the class to guide your preparation of the articles and cases. Handout material will be given out at each session. This will be a combination of copies of presentation slides used as well as supporting material for items discussed in the session.

It  is  the  School’s  belief  that  students  are  important  and  should  be  able  to  talk  freely  with  us.  Within  the constraints imposed by our own responsibilities and duties within the University we will ensure that we maintain this doctrine.

The  objective  of  the  course  is  not  just  to  provide  you  with  a  ‘toolbox’  of  techniques  and  analytical  methods, but to enable you to pose some fundamental questions about the relationship between internal and external business activity. What we expect from you: The emphasis is firmly upon you to ensure that you prepare for each session by undertaking the pre-reading and other tasks you are given. We cannot do your learning for you. You have a duty to yourself to keep up with the reading and supporting studies and to make sure you express any questions or problems as soon as they are apparent. The onus is, therefore, upon you to participate, although we do want this course to be enjoyable and fun for most of the time!

We look forward to sharing an enjoyable course with you all!

3. Office Hours We will be available immediately after the session finishes each week and during my regular office hours (which are posted on my.wbs). If for some reason we are not available to answer a query, you should utilise the email system as your first point of contact. With an appointment, we are open to meet you outside of office hours. The OM group secretary, Emily Jamieson, can arrange appointments for you if needed.

4. Location & Timing: Venue: PLT Friday: 15.05 – 17.00

5. Course References & Readings:

There is no single course text. However, the recommended text is:

Jelassi, T. And Enders A. (2008), ‘Strategies  for  E-Business; Creating Value through Electronic and Mobile  Commerce’,  2nd Edition: Prentice Hall.

You will also find the following texts useful:

Laudon,  K.C.  and  Traver,  C.G.  (2009)  ‘E-Commerce  2010:  Business,  Technology,  Society’,  6th Edition International: Prentice Hall.

Turban,  E.  et  al.  (2009)  ‘Electronic  Commerce  2010:  A  Management  Perspective’,  6th Edition: Prentice Hall.

Chaffey,  D.  (2009)  ‘E-Business and E-Commerce Management: Strategy, Implementation and Practice’,  4th Edition: Prentice Hall

Indicative further reading: Curran,  T.  A.  ad  Ladd,  A.  (2000)  ‘SAP  R/3  Business  Blueprint:  Understanding  Enterprise  Supply  Chain  Management’  (2/E)  Prentice  Hall.

Bauer, Michael, et al. (2001). 'e-Business: The Strategic Impact on Supply Chain and Logistics. Council of Logistics Management.

Neef,  D.  (2001)  ‘e-Procurement:  From  Strategy  to  Implementation’  Financial  Times  Press.

Ross,  D.  F.  (2002)  ‘Introduction  to  E-supply Chain Management: Engaging Technology to Build Market-winning Business  Partnerships’  The  St.  Lucie  Press/APICS  Series  on  Resource  Management,  USA.

Laudon, K.C. and Traver Guercio, C. (2003) "E-Commerce: Business Technology Society" 3rd Edition USA: Addison Wesley.

Simchi-Levi, D. David Wu S. and Zuo-Jun, S. (Eds) (2004)  ‘Handbook of Quantitative Supply Chain Analysis: Modeling in the e-Business  Era’ Springer.

Garfinkel, S. and Rosenberg, B. (2006) ‘RFID:  Applications,  Security,  and  Privacy’ Addison-Wesley.

Zhang, Q. (ed) (2007) E-supply Chain Technologies and Management IGI Global.

You are encouraged to read newspapers and journals including: SCM related Journals General Management Journals Journal of Supply Chain Management Harvard Business Review International Journal of Physical Distribution and Logistics Management

Strategic Management Journal

Journal of Business Logistics Academy of Management Review Logistics Information Management Journal of Operations Management Logistics and Transportation Review Practitioners Journals and Newspapers International Journal of Logistics Management Supply Management European Journal of Purchasing and Supply Chain Management

Supply Chain Management Review

The International Journal of Operations and Production Management

Financial Times

Supply Chain Management: An International Journal

6. The Module Work Programme

A provisional programme for the module is provided. The programme provides information about each session, the cases that your need to prepare or any other tasks that need to be completed in each session and the readings associated with each topic. PLEASE ACCEPT THAT THE PLAN IS PROVISIONAL. Actual timings and content will vary to suit the issues raised during the course and the availability of any guest speakers. Changes will be communicated through my.wbs.

There is no lecture in week 1.

Week 2 Session 1 Introduction – E-business and value chains: traditional Vs virtual supply chains (Ross)

Date 28/01/13

Session Objectives Explain the rationale for the module and assessment method Introduce e-business, e-commerce and e-scm Evaluate the impact of setting up an e-business for revenues in a

supply chain Evaluate the impact of setting up an e-business on costs for a supply

chain Tasks to be completed Cases will be handed out during the class.

Week 3 Session 2

Value creation through E- Strategy (Daniel) Date 25/01/13 Introduction to the topic

The influence of e-commerce on the economy and business activity has become tremendous. In this session we will discuss how organizations can create value through e-supply chain strategies. The failure of may e-commerce startups makes the need for the identification of the most appropriate e-business strategy for particular company and individual products of paramount importance

Session Objectives Identify the role of e-business in supply chain strategy Develop a value creation framework to assist managers in making

decisions for e-strategies Present how companies can improve their performance, reduce

costs increase service levels, ameliorate the bullwhip effect through e-strategies for supply chain integration

Tasks to be completed Case study: Bradstone Case and Video to be delivered during the class Week 4 Session 3

E-marketing (Daniel) Date 01/02/13 Introduction to the topic

Search, online display, email marketing, affiliate marketing – all examples  of  ‘e’  or  digital  marketing  tools  that  marketers  around  the  world are increasingly using to acquire, convert and retain audiences and customers. This session will give you can overview of the marketing  ‘digital  tool’  kit  and  how  they  are  used  in  practice  in  

conjunction with offline channels. Case studies from Reed Business Information, a leading online and magazine publisher, will be used to bring the subject to life.

Session Objectives To provide an overview of e-marketing  and  it’s  role  within  the  marketing communications mix

To show how e-marketing is used to acquire, convert and retain prospects and sales leads

Tasks to be completed Case study: Reed Business Information case will be provided in class Week 5 Session 4

Security and risk management in e-business (Ross) Date 08/02/13 Introduction to the topic

IT tools in general and web services in particular hold the promise of significant benefits for organisations and consumers across the globe. This session explores the security threats and solutions that managers need to be aware of when implementing an online solution. E-business solutions, just like physical stores and markets, are left open to malicious behaviour by individuals or organizations and face other unique problems because they exist in the digital environment of the Web

Session Objectives Explain the scope of e-commerce crime and security problems Describe the key dimensions of e-business security Identify the key security threats in the e-commerce environment Describe how various forms of encryption technology help protect

the security of messages sent over the Internet Present several tools used to protect networks, servers, and clients Discuss the importance of policies, procedures, and laws in creating

security Tasks to be completed Cases will be handed out during the class.

Week 6 Session 5 M-Commerce and E-SCM (Daniel) Date 15/03/13

Introduction to the topic

M-commerce (mobile commerce) is the buying and selling of goods and services through wireless handheld devices such as mobile phones and personal digital assistants (PDAs). M-commerce is considered as the next-generation e-commerce and enables users to access the Internet without needing to find a place to plug in. In this session we will discuss the exciting opportunities that new technology provides the organisations for creating value and integrating their supply chains.

Session Objectives More specifically we will: Describe the characteristics and attributes of m-commerce Describe the drivers of m-commerce Present the supportive technologies and their capabilities Describe the wireless standards and transmission networks Describe the applications of m-commerce within organizations Describe B2B and supply chain applications of m-commerce Describe consumer and personal applications of m-commerce

Tasks to be completed Cases will be handed out during the class. Week 7 Session 6

E-Fulfilment: IT Decision Support Systems for SC integration (Nigel) Date 22/02/13

Introduction to the topic

The integration of supply chains with the use of IT tools requires interfaces with so called back end systems (such as inventory and billing). These tools such as Enterprise Resource Planning (ERP) systems bring into balance the disparate manufacturing, finance and business functions in order to make an enterprise more efficient. They do not however help to answer the fundamental questions of what should be made, where and from whom. The use of Decision Support Systems can assist decision makers (procurement managers) to seamlessly integrate supply chains.

Session Objectives This session discusses how DSS can enable seamless e-fulfilment and is structured around the following questions.

What are decision support systems and how do they support supply chain management?

What criteria should be used to select decision support systems? What drives the selection of best of breed systems?

Tasks to be completed Case study: TBC

Week 8 Session 7 Use of RFID in Supply Chains (Nigel) Date 01/03/13

Introduction to the topic Radio Frequency Identification (RFID) involves the reading of physical tags placed on products and traded items such as cases, pallets, or re-usable containers. Combining this remote sensing technology, with a unique standard tag identification, and therefore access to global standardised databases will result in accurate product identification, in real time, at any stage in the supply chain. RFID technology is delivering value and promises much more for all industry sectors, not just retail and consumer products – cost savings, supply chain efficiencies and visibility, and better stock security. It also allows companies to gain control of their operations to a level unimaginable with previous identification techniques and will generate a data stream of physical movements as a byproduct of conducting business. This opens up crucial strategic opportunities.

Session Objectives This section builds on the previous discussion on technology standards and discuss whether and how the use of Radio Frequency Identification Tags (RFIDs) can  be  used  to  support  an  organisation’s  supply  chain  integration strategy in terms of:

creating an agile data infrastructure accessible at any time getting accurate distribution & sales information related to products increasing material & finished goods velocity through Supply Chain quality tracking at key processes in manufacturing reliable information capability for Reverse Distribution processes faster shipping and receiving processes

Tasks to be completed Case Study: RFID at the Metro Group

Week 9 Session 8 E-procurement (Carlos) Date 08/03/13

Introduction to the topic

E-Procurement is the term used to describe the use of electronic methods in every stage of the purchasing process from identification of requirement through to payment, and potentially to contract management. The expectations from e-procurement are among other things, increased market reach, for both buyers and suppliers, reduce procurement costs and paperless transactions. In this session we discuss the potential of e-procurement as well as the need for a new business model with will allow organisations and their suppliers to improve supply chain performance

Session Objectives What is the e-procurement process? Benefits, components, and status of e-procurement Business models of e-procurements Provide a framework for e-procurement Factors and Strategies of e-procurement planning

Tasks to be completed Case Study: TBC Week 10 Session 9

E-auctions and portals (Carlos) Date 15/03/13 Introduction to the topic

Auctions constitute over 25% of all B2B e-commerce today and an increasing method for procuring products/services. This session discusses the reasons behind the extraordinary popularity of auctions and how they can increase supply chain performance.

Session Objectives Describe the major types of auctions, their benefits and costs, and how they operate

Understand when to use auctions in a business Recognize the potential for auction abuse and fraud Describe the major types of Internet portals Understand the business models of portals

Tasks to be completed Case Study: TBC

7. Assessment Schedule

Warwick and Exchange students:

12 CATS

Assessed coursework of 2000 words (100%) (80% for 15 CAT students)

Your Task: Identify an organisation which has developed an e-business strategy and utilises ICT applications to deliver enhanced customer value. Focus on one or more aspect of their e-business strategy, such as the use of E-procurement, E-marketing or E-SCM and write a report addressing the following:

1. How has the organisations business and / or supply chain management practices changed with the development of the internet?

2. What new opportunities there have been for the organisation to develop their e-business strategy and the use of ICT tools to create additional customer value?

3. Assess the strengths and weaknesses of the organisations current use of ICT tools to support the organisations overall business offering.

4. Suggest e-business strategy improvements and alternative ICT tools which could be used to create greater customer value or to help differentiate the organisation from competitors. Justify any proposals.

TOTAL WORD LIMIT – 2000 WORDS (excluding appendices)

15 CATS

Students will be required to submit an extra 1500 words assignment (20% for 15 CAT students)

Your Task: Following  the  analysis  of  the  chosen  company’s  e-business strategy and use of ICT tools, choose another organisation which is a direct competitor (offering the same good or service) and contrast their e-business strategy and use of ICT tools. Which company is more profitable and why?

TOTAL WORD LIMIT – 1500 WORDS (excluding appendices) Please include a short case description of the companies in the appendices of your report. All assignments have to be submitted by 12.00hrs on 30 April 2011 to the Business School Undergraduate Office. You may submit via my.wbs, by hand or by recorded postage. Notes on the Assignments The goal of the assignments is to analyse real e-business strategies. We are flexible on the companies you select but please discuss it with us before you proceed. Your assignment grade will be based on three components: (30%) breadth and depth of research; (50%) quality of analysis; (20%) quality of presentation. The first component reflects the quantity and quality of material you find regarding the selected company. Use as many sources as possible: textbooks, referred articles, newspapers, trade journals, the web, etc. The second component reflects coherence of your arguments and the insights of your analysis. The third component reflects the quality of your writing. For example, are thoughts well developed and presented in a logical order? Are spelling and grammar errors avoided? Are figures and tables clear? Each of the three components of your course grade will be on a 1-100 scale. The weighted average of these components will determine your final grade. Mark allocation Scores for each aspect of the assessment will be added together to form the whole mark. Students are not required to pass all elements of the assessment. An excellent answer:

The student provides a very thorough answer to the four components of the task, demonstrating extensive reading from a variety of different sources and a very comprehensive approach to the evaluation of the chosen case. This will include the use of a range of different models, including those taught in class and researched from a range of further reading. You will not only use models but also take a critical compare and contrast approach with them, concluding which is best organisational fit. Diagrams will be used and adapted to the organisational examples. An assignment which flows concisely.

A very good answer:

This is likely to be less well constructed. It should answer thoroughly the four components of the task, using theoretical models discussed in the class and provide evidence of literature review. There will be a comprehensive approach to the evaluation of the chosen organisation, but it is likely that the range of models used will be smaller and more descriptive although still showing evidence of background reading. It will clearly demonstrate an evaluative i.e. critical approach to the work, but the conclusions are likely to be less well formulated.

A fair answer:

This is likely to provide descriptive answers to the four components of the task, displaying little evidence of background reading and also descriptive rather than analytical in its approach, in relation to both the organisational evidence and the use of models. The assignment is likely not to be well constructed.

A fail answer:

This will fail to answer satisfactory or not cover significant components of the task, and make either no overt use or very insignificant overt use of any of the established theories either used in class or from background reading in the analysis of e-business practices of the chosen company.

8. Writing the assignment

In writing a case or assignment report, please use the following guidelines:

The assignment should be typewritten and double spaced. The font for the body text is to be 12 point. Headings may be in any font and size. In figures you may use fonts down to a minimum size of 8 point.

The assignment should be printed single-sided, numbered and stapled in the top-left corner. NO BINDERS OR COVERS OF ANY SORT ARE TO BE USED. The Undergraduate Office has been instructed to reject any assignments that do not adhere to the submission rules.

Page setup is to be as follows:

Top margin: 2.54 cm Bottom margin: 2.54 cm Left margin: 3.17 cm Right margin: 3.17 cm Further information:

Include the course title and number, the title of the work and your ID number on the cover page of the document. The cover page will be available for download from my.wbs. You will also be required to agree to a declaration about the provenance of the work.

Start the assignment with an executive summary (no more than one page), pulling together your findings in precise language.

Keep your assignment brief, concise, and to the point. In selecting margins and font sizes, please exercise reason and kindness.

Avoid repeating case facts, except when necessary to support an argument. Include specific recommendations, where appropriate. Make good use of exhibits such as tables and figures to support your analysis. Never include

an exhibit without making specific reference to it. Appendices belong at the end of the report. Support your statements and conclusions with adequate analyses and arguments. Your assignment should reflect a high degree of professionalism in style and readability The plausibility and clarity of your analysis, as well as the overall presentation will determine

your grade. Extensions Do not ask the course tutor for extensions. Course tutors have no role in granting extensions – talk to your programme manager. The exception is if you are a student from outside Warwick Business School. In this case talk to your personal tutor about the need for an extension. Your personal tutor should then make a case to me via email, letter or telephone. Plagiarism Unless there are specific instructions or guidelines to the contrary, the University expects that all work submitted is solely your work. It is vital that you reference all academic work from other sources, including websites. Being found guilty is very serious.

Every case of suspected plagiarism will be investigated and reported to the Deputy Dean of WBS. Markers in this university are professional teachers and researchers thus they are familiar with the published work in their field. It is very easy to identify excerpts that have been cut and pasted from websites, textbooks, published articles and case studies!!