Post on 03-Jan-2016
transcript
E-BUSINESS COMMUNITIES
04/20/23
Chapter 3
Learning outcomes
Outline e-Business communities and its components.
Demonstrate how to build and maintain healthy relationships within e-Business communities.
Illustrate the development of cultural, informational, and technological systems in high-profile e-Business sites.
A few scenario…
Who /What is E-Business Communities (EBC)?
e-Business communities (EBC) represent: business ecosystem, business clusters, business networks, link of businesses, customers and Suppliers
The aims: To create end-to-end value
streams to best meet customers’ needs.
Who /What is E-Business Communities (EBC)?
For example: Amazon.com E*TRADE Google Dell Many more .com companies
Organize and strengthen cross enterprise relationships to create end-to-end value for customers
supplier
intermediaries
informediary
customers
distributor
EBC components
The EBC components are depending on the e-Business models used by the enterprises.
It may vary from one industry to another and from one enterprise to others within the same industry.
For example: if your company XYZ is selling clothes online, your
EBC components may not be the same as your competitor, Company ABC.
EBC components
Based on a few common e-Business models
Brokerage model Companies act as market maker Bring buyers and sellers together Charge a fee for the transactions B2B, B2C, and C2C, Types:
Buy/sell fulfillment Market exchange Buyer aggregator Distributor Virtual mall Auction broker Search agents, etc.
Examples: travel agents, online brokerage firms, online auction house
EBC components
Advertising model Provide content and services Charge advertisers fees for banners, permanent button, and
other ways to deliver clients’ messages to visitors. Types:
Generalized portal Personalized portal Specialized portal
Find a good example that can represent these three types of portal
EBC components
Informediary model Collect valuable information on
customers and their buying habits Sells it to other companies for
important patterns to serve their customers better.
Types: Recommender system Registration model
Offers the customers free content, cash, etc for the information.
Collect information about companies and sell it to customers.
Informediary company
Company A
Company B…
Company n
Customer 1
Customer 2…
Customer n
information
information
EBC components
Direct to customer/ e-tailing model Find out who are involved in this model. How? Any different types? Example: Amazon.com
Based on e-Business models discussed in Chapter 2, identify the EBC components that involved.
EBC components
Rationale: Although each of the models are different, they have
one thing in common,
To make money for the business owners for a long term
Building & Maintaining Relationship
Require end-to-end process integration (back-end and front-end applications).
Allow the processes to flow seamlessly.
Barriers must be eliminated such as: Process inefficiency Lack of application integration Fragmented and distributed
information Lack of accurate information
Building & Maintaining Relationship
Increase speed of service A key reason why the customers choose to do business
with certain companies. Contribute to the e-Business trend
Reduce the processing time between search, selection, order entry, and order fulfillment.
Any delay is unacceptable.
Building & Maintaining Relationship
Empower the customer: Self-service Inconvenience and poor services create
impatient customers Today, customers have more money than
time Avoid difficulty Avoid slow business deals Looking for doing things themselves-: self-service
The impact: self-service change the business structure-
eliminate the intermediary or middleman. the buyer and seller can meet directly online
such as real estate, insurance, travel, online trading etc.
require a new infrastructure, policy and the integration of processes to serve the customers well.
Pay bills,Shopping,Meeting,
Negotiation, others…
Building & Maintaining Relationship
Provide integrated solutionProvide customization and integration in sales and
services ex: options providedProvide consistent and reliable customer service
ex: helpdesk serviceProvide flexible fulfillment and convenient delivery
of products and servicesContract manufacturing- become brand intensive
Focus on what they do best
Building & Maintaining Relationship
Business process outsource (BPO) Delegate one or more business processes to external
provider Objective: to improve overall business performance Part of e-Business concept. Due to
Operation complexity Technology The need for constant growth Core competency in many functional areas
Building & Maintaining Relationship
Increase process visibility Customers require
Access to order status Product information Pricing and Availability and etc.
Help create additional demand/ expectation Example: UPS-tracking system. Customers can check
online of the delivery status. Now customers are looking for delivery services within
hours, no longer in days -> increase delivery expectation and system efficiency.
For e-Business – companies have to build internal applications and
processes, and make it internal operations more transparent
Close customer contact and high quality services will develop high competitive edge and long-term relationship with customers.
Building & Maintaining Relationship
Learn the trends in employee retention become a learning
organization to prosper fast paced and demanding environment
Example: provide incentive to motivate employees such as cash reward, competitive benefits, etc.
In e-Business, supporting and sustaining a culture is a must to succeed.
Building & Maintaining Relationship
Integrated enterprise applications Back-end applications ex. Inventory, procurement,
strategic planning, decision support system, etc. Front-end application ex. E-commerce site.
Building & Maintaining Relationship
Infrastructure readiness Quality of services such as, server capability,
bandwidth, ISP, etc. Wireless application Middleware
Multi-channel integration Click and mortar : A type of business model that includes both online and
offline operations, which typically include a website and a physical store. A click-and-mortar company can offer customers the benefits of fast online transactions or traditional face-to-face service.
Moving towards e-Business
The creation of e-Business strategy sometimes based on: Assumptions Premises Belief about customers needs, technology,
competition, etc.
Approach in e-Business strategy planning Top-down -> analytic planning Bottom-up -> ‘just do it’ tactical planning
Moving towards e-Business
Knowledge building and
capability evaluation
E-Business design
E-Business blue print
Application development &
deployment
Key insights Key objectives Priorities
More questions Feedback Feedback
Figure 3.1: Continuous planning with feedback
Moving towards e-Business
Knowledge building and capability evaluation Develop a clear vision of customers needs Develop a clear understanding of company’s
capabilities to address customers needs Vision must be communicated clearly to employees
E-Business design Lay the foundation to address new customers needs Help the company gets where it needs to go Ex: if customer wants self-service application, your e-
Business design must facilitate that need.
Moving towards e-Business
E-Business blue-print Create a link between e-Business design – goals –
technology foundation Determine application framework required Clearly define project and milestones to achieve
Application development and deployment Translate the milestone and project into integrated
applications Employees must know what to do.
Moving towards e-Business
Roadmap Phase 1: knowledge building
Who are my customers? How are my customers’ priorities shifting? Who is my target customers? How can I add value for my target customers? How do I become my customers’ first choice? How does my product reach the customers? Do we understand the environment and industry trends? Do we understand the technology trends? What are the priorities in the supply chain? Who are my competitors?
Moving towards e-Business
Phase 2: Capability evaluation What internal capabilities do we have today? What capabilities and resources do we need to execute
quickly? Phase 3:E-business
Select an e-business design E-business design refinement Clarify the differentiation levels
Example of web-based applications
Web-based applications that can be used as part of your e-Business design. For example in marketing purposes. Google Advert MSN Yahoo Facebook LinkedIn Twitter Many more.
Summary
EBC must be clearly define to develop a successful e-business design.
A few factors involved in building and maintaining relationships with EBC components.
Moving towards e-Business involve the development of culture, information and technology – assisted by model and roadmap.
Tutorial
Define EBC.Describe 5 factors that contribute in building
and maintaining relationships among the EBC components
Use the identified factors above for your business of interest.
Assume you have a catering business, illustrate how the roadmap can assist in transforming your company into e-Business.
References
Google Image, http://www.google.com accessed on 13 April 2011.
Chaffey, D., (2007, 2009), E-Business and e-Commerce Management, 3rd and 4th Edition, Prentice Hall.
Kalakota, R. and Robinson, M. (1999), e-Business: Roadmap for Success, Addison Wesley.