1 Lecture 8 Electronic Commerce Modelling Techniques Electronic Commerce.
INTRODUCTION TO ELECTRONIC COMMERCE, (COMM1Q) WEEK 10 Supply Chain Management.
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Transcript of INTRODUCTION TO ELECTRONIC COMMERCE, (COMM1Q) WEEK 10 Supply Chain Management.
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INTRODUCTION TO ELECTRONIC COMMERCE,
(COMM1Q)
WEEK 10
Supply Chain Management
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CLASSIFICATION BY TRANSACTION
• B2B - business to business• B2C - business to consumer• C2C - consumer to consumer• C2B - consumer to business• Non-business EC• Intra-business EC
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B2B• Uses Extranets and the Internet.
Extranet = two or more Intranets connected via Internet, Only enough information made available to allow business,
Often security attained using virtual private n/works (VPN).
• Cost of deploying networks has dramatically fallen - by-product of Internet.
• Transaction costs have been cut dramatically - a driving force behind B2B adoption.
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Key to B2B is SCM
Supply Chain Management (SCM)
• ‘Supply Chain’ means the network of alliances that a company forms with suppliers and distributors to source manufacture and deliver goods and services.
• Alliances can be just as effective as a single company.
• SCM= ‘the co-ordination of materials, information and financial flows between all the partners in the alliance’.
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B2B Requires SCMSupply Chain Management (SCM)
• Companies that exploit their supply chain properly gain the competitive advantage.
• Competition becomes competing supply chains - - pressure on prices, quality, responsiveness, - ever increasing customer expectations.
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THE VALUE SYSTEM
Accounting Invoicing etc.
FIRMSUPPLIERS DISTRIBUTORS/CUSTOMERS
Administration & Personnel.
Sales & Marketing
Customer Relations
Stock control
PRODUCTS & SERVICES
Distribution
MONEY & INFORMATIONOperations
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SUPPLIERS FIRM DISTRIBUTORS/ CUSTOMERS
INTRANETEXTRANET EXTRANET
INTERNETINTERNET
THE VALUE SYSTEM
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SUCCESS DEPENDS UPON
Scalability
Interoperability
Configurability
Compatibility
Manageability
Availability
Reliability
Distributability
Serviceability
Stabiltiy
(Turban 2000)
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Examples of B2B
• Supplier Orientated Marketplace– www.cisco.com
• Buyer Orientated Marketplace– http://www.shoppoint.co.dk
• Intermediary Orientated Marketplace– http://www.procurenet.com
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B2C
• E-tailing:
Manufacturer Wholesaler Distributor Retailer Customer
Manufacturer Customer
Manufacturer CustomerElectronic Intermediary
Direct Marketing – Dis-intermediation
Marketing with e-intermediaries – Re-intermediation
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Key to B2C is CRM
1. Only 10% of companies can support e-commerce!
2. Sell to existing customers rather than new customers
3. Dissatisfied customers = BAD NEWS.
4. Minimal increases in customer retention = maximal company profits
5. The odds of selling a product or service to an existing customer are three times as high as to a new customer
6. Customers will do business with you again if you deal with complaints swiftly
(Sybase Customer Asset Management Solutions: http://www.sybase.com)
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Examples of B2C
• Electronic stores– www.amazon.com– www.dell.com
• Electronic Malls– http://www.evvmall.com/– http://www.mall.com/