102 e-business model - 20 cases - v6.8 - update 9 jan 2014

30 E-Business ModelsAnalysis

By Dr. Nguyen Van Thoan

ECOM & MIS & EMARKThink big, Start small, Action Fast

30 CASESThink big, Start small, Action Fast

30 CASESThink big, Start small, Action Fast

CLC.K49.TMAE306.2 Ecommerce Stories

• Day 4 – Chapter 2: Ebusiness Model• 8 key elements of Ebusiness model• 20 top stories about Ecommerce (success

and failure)• How many ways to sell online?• Guide Case for Presentation (See Forum).• Chapter 2 - Quiz

E-Commerce – CTTT, CLC, FB

E-Commerce - Dr. Nguyen Van Thoan

8 Key Elements of a Business Model1. Value proposition2. Revenue model3. Market opportunity4. Competitive environment5. Competitive advantage6. Market strategy7. Organizational development8. Management team

8

E-Business Model

• What can you tell us about Facebook & what can we learn from this e-business model?

800/955 million active

users

3rd size only after Google and Yahoo

New kind of e-commerce “Social e-

com”Largest: search engine, content,

ad networks500 shareholders 2006: Yahoo offer to

buy 1 bio

2007: MS buy 1,6% stake (240 mio) 15

bio

2011: Value 50 bio

2012: Value 104 bio

February 4, 2004Rev: 3.71 billion (2011)

May 14, 1984

Buy Disney ticket

12% of top Internet retailers

Ads – what,

locations, preferenc

e, behavior

…

Loser58035 mio

Lessons from this caseMay 14, 1984

1. Idea Software2. Programming as core competency3. INVESTOR4. Strategy Market5. Competition6. Community7. New application8. INFRASTRUCTURE

http://www.youtube.com/ecomftu2012

Behind the scene?May 14, 1984

Historyhttp://www.youtube.com/watch?v=sffGo3GAMIQ

Data Centerhttp://www.youtube.com/watch?v=Y8Rgje94iI0Data Center 2http://www.youtube.com/watch?v=nh0xEhxx4zk

http://www.youtube.com/ecomftu2012

E-Business Model• What can you tell us about Amazon.com & what can we

learn from this e-business model?Software development center

World largest130 publishers300.000 books 2 millions

2005: World’s 3largest Linux

DB25 HP servers

Amazon technologyCRM & ISM

See Turban, 2012, EC, page 100 & 546

KEYS: size – innovation – personalization – service quality

Founded: 1994

Rev: 48.07 billion (2011)Net income: 631 mioEmployees: 69.100

BooksEbooksDigital Third

Parties---

2003

Change Biz model: OWN inventory and logistics

Suggest box

Fulfillment & waehouse center

Gift ideas

Web fulfillment contractor for

Target

2 bioWare house

Leaders inWH mgmtAutomatio

nPackagingInventory

mgmt

Lessons from this case?

1. Biggest online store (FIRST)2. Make the products find customers

(SMART IDEA)3. Lower prices (MARKETING)4. Creative marketing techniques

(Customer comments, reviews, product recommendations and cross selling, etc…) - SMART

5. New technologies to reduce labor costs6. A shop that sells everything


Lessons from this case?

1. Supporting products2. Personalized customer services3. Outsourcing strategy (Supplier)4. Customer services and branding5. Customer loyalty6. Inventory management (New

strategies)


Behind the Scene?

Jeff Bezos talkhttp://www.youtube.com/watch?v=-hxX_Q5CnaA

Jeff Full Speechhttp://www.youtube.com/watch?v=YlgkfOr_GLYDistribution Centerhttp://www.youtube.com/watch?v=bfFsqbIn_3EYoutube channelhttp://www.youtube.com/user/amazon

Discussion – Star time!

• What are the key factors for a successful website?

What are the key factors to a successful website?• Loading time • Easy to read• One click to reach important thing• Good interface• Good background music• Fast and secure payment• Good SEO• Cookies and checking customer behaviors• Good design and structure of the website• Social network• Updated and precise information• Good security• Target market and segmentation

Dell Computer – Michael Dell

Dell World 2012 - Michael Dell’s Speechhttp://www.youtube.com/watch?v=5OqQq14d-dE

Youtube Channelhttps://www.youtube.com/dell

Wikipedia

History 1http://www.youtube.com/watch?v=gXD1TRGafQ0History 2http://www.youtube.com/watch?v=oVFPW0r4jWkWriterhttp://www.youtube.com/watch?v=3Knv6D6Thi0

E-Business ModelWhat can you tell us about Volkswagen

what can we learn from this e-business model?

90%Global

Purchases60 online

applicationsRFQ, contract, catalogue, order, payments…

See Laudon, 2012, EC, page 759

3rd largest car manufacturerproducing: 7.29 million carsRev: 175 billion USD (2010)Brand: Volkswagen, Audi, Bentley, Bugatii, Lamborghini… Porche (2011)390.000 employee

WEBSITE36,000 suppliers110,000 users

Online catalogue: 2.5 million itesmFrom 590 global

suppliers14.200 internal

users2010:

3.000 online contracts – value: 16.6 billion USD

61 plants – components, automotive parts… 60% rev – 100 billion/year

VWGroupSupply.comPrivate procurement portalB2B networkVs.CovisintFord, General Motors, Daimler Chrysler

ECAP (e-capacity management)

Material requirements400 suppliers

4.000 critical parts

Volkswagen means "people's car"pronounced [ˈvɔlksˌ v aːɡən]

2000: 1.500 2012: 200B2B marketplace

http://www.youtube.com/user/Volkswagen

E-Business ModelWhat can you tell us about Walmart

what can we learn from this e-business model?

2002Online order, help desk1 million products onlineSelling songs online2006: rebuild website – 4 clicks2007: Site to StoreRank 2nd to AmazonLink to Facecbook

See Turban, 2012, EC, page 143

Largest retailer in the worldRev: 405 billion (2010)2.1 million employees (1.4 U.S.)8.700 stores (15 countries)Low pricesOnline: 1996 – difficult2002: improvement

WEBSITEAbout Walmart.com

Target: 25.000 USD incomeOnline: 60.000 USD

Partner with AOLInternet connection

Walmart

Technology

Sam Walton (1918 – 1992)Started in 1962

Brick & Click http://www.youtube.com/user/Walmart

7Bill Gates

Michael DellJack Welch

IT as White House

E-Business Model1. selling shoes online

4. ShoeSite to Zappos "zapatos," "shoes"

See Turban, 2012, EC, page 143

5. Critical success factors:- Large selection- Fast delivery- Positive culture- Customer service

8. BRAND

* successful with shoes

* leverage into other products.

2. footwear in the US is a 40 billion dollar market 5% = mail order

3. Investment 500.000 USD

6. Amazon? leverage its supplier relationships, while maintaining a separate brand.

9. Order fulfillment- large warehouse of products- fast delivery

Brick & Click http://www.youtube.com/user/Walmart

7. “WOW” * customer experience * huge selection* excellent service

Sub of Amazon.comRetail1999Nevada, United StatesNick Swinmurn, founderProducts Shoes, handbags, eyewear, accessories, apparelRevenue US$1 billion (2009)Website zappos.com

November 2009Amazon buy for a reported $1.2 billionZappos has ten core values

Alibaba.com

Alibaba.com

1-22

E-commerce: Marketplace, B2B portal

Finding Buyer & Sellers

Adversiting products & services – 2 million businesses

US ? superpages

EU ? europages

Japan ? Vietnam ?

Subscription fee: 250 3.000 USD/year

Millions of China, US, EU, other firms

Competitive: local, free, trade promote org?

1st, leader, China firms ? What else?

Market strategy: one to one service?

Management TEAM? Jack Ma & 17 in 1999

79 million registered users240 countriesMarch 31, 2012.

‘Open, Sesame,’

Alibaba.com (advanced)

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

Website design? Server, software, security?

Valur for Seller?

Communication?

Value for Buyers?

CRM: Customer Relationship Management?

Services for Paid MEMBERS?

https://www.youtube.com/user/teamalibaba?feature=results_main

Boeing.com


Where are we?

Boeing.com


1. World largest2. Revenue from B2B NOT concern3. Concern: customer service !!!

Founded: Seattle, Washington, US (1916)

Founder(s): William E. BoeingRevenue: US$ 68.735 billion

Operating income: US$ 5.891 billionProfit: US$ 4.018 billion (2011)

Employees: 174,225 (June 28, 2012)

PARTS Single pointMaintenance SERVICE

Intermediary: supplier – airlines

ONE-STOP SHOPPING

Mechanic BOEING Producer

EDI Internet: normal PC, connection

http://www.boeing.com/commercial/747family/pf/pf_facts.html

Boeing.com


1996: PART online50% of customers½ million inquiries first year

Founded: Seattle, Washington, US (1916)

Founder(s): William E. BoeingRevenue: US$ 68.735 billion

Operating income: US$ 5.891 billionProfit: US$ 4.018 billion (2011)

Employees: 174,225 (June 28, 2012)

PARTS Single pointMaintenance SERVICE

Intermediary: supplier – airlines

ONE-STOP SHOPPING

Mechanic BOEING Producer

EDI Internet: normal PC, connection

http://www.boeing.com/commercial/747family/pf/pf_facts.html

Boeing.com


Practice Assignment: Create an account on YOUTUBE – advertising channel

E-Banking Solutions?

• What can you tell us about Facebook & what can we learn from this e-business model?

800/955 million active

users

Temenos hiện đang là đối tác chiến lược của các ngân hàng ở Việt Nam như: Techcombank, Military Bank, Sacombank, Sea Bank, VP Bank, Global Bank…

Industry Banking SoftwareFounded: Geneva, Switzerland

Products TEMENOS T24Insight: TEMENOS COREBANKING (TCB)

Revenue: $914 millionEmployees: 4,500

VIDEOShttp://www.temenos.com/products/t24/#

Core bankingCORE BANKING COMPARISONhttp://www.inntron.com/core_banking.html

E-Banking Solutions?

Joomla - VirtueMart

Channelhttp://www.youtube.com/watch?v=gXD1TRGafQ0

UPS

• DIAD - Delivery Information Acquisition Device

Google

• Google – Data Center

Salefoce

• Online Services (Cloud)

FedEx

• IT lized Operation

ESPN

• Online news and digital content

REI

• CRM – Understand customers

Suzuki - Oracle

• Enterprise Database

MS – Dynamic CRM


Sino Steel – ERP


Groupon


Etsy

• Marketplace

Ford – Auto Exchange

• B2B marketplace

IBM - Watson

• Intellectual Machine?

Alfresco

• Open source Document Management

Loreal - KM

• MS Sharepoint

Fresh Direct

• Online Grocery

IBM – BPM

• Business Process Management

MS – Dynamic CRM


MS – Dynamic CRM


MS – Dynamic CRM


MS – Dynamic CRM


MS – Dynamic CRM


Building an E-commerce Site: A Systematic Approach

Video linksVideo links Amazon.com – Warehouse robots http://www.youtube.com/watch?v=Abvdd9UdBus Amazon.com – UK order fulfillment http://www.youtube.com/watch?v=gk5-blcvF9E Amazon.com – Jeff Bazoz interview http://www.youtube.com/watch?v=pVp6WqS7L0M Amazon.com – Order Fulfillment by A – FBA http://www.youtube.com/watch?v=jVVa83MnvdY

Copyright © 2012 Pearson Education, Inc. Slide 4-53


Video linksVideo links Tommy Hilfiger http://www.youtube.com/watch?v=POb10N4GSV0

Catalogue: Photo 3D Virtual model Video – youtube (embed)



Video linksVideo links Future supermarket http://www.youtube.com/watch?v=VykB2pVW_wg Future Retails in details http://www.youtube.com/watch?v=EX5d-aOdk7A Online shopping concepts http://www.youtube.com/watch?v=GAyvTVQdXqc Future model for Retail http://www.youtube.com/watch?v=f0gQP8ktmSA








http://www.youtube.com/user/tommyhilfiger

Case: Tommy HilfigerWorld best premium life style brands


Target: 18-35 2006: more than

online sale – more interactive

Casual clothing1.000 stores

2010 bought by, owner of Calvin Klein, for 3 bio USD

Online store since 2000 - catalogue

Online sale: 2004

Founded in 1985 by Tommy Hilfiger

Outsouce?VP: Ecommerce

LOOK and FEELIncrease: 30% sales2010-2011: Facebook – 1,7 mio LIKEs

Tommy.com

Founded in 1985 by Tommy HilfigerNet income: 1.6 bio (2009)

Case: Tommy Hilfiger - websiteIn business: 5 years – has brands


No new IT for Ecommerce Look & Feel

State of the Art

No infrastructure, no software, no IT staff

A website everyone can be proud of!Cool stuff on that!

ATG as solution provider – specialized in ecommerce

Facebook: 1.7 mio likes

iPhone apps

Virtual Fitting ROOM

360 degree views

CompateSuggestionsRead commentsSpecific cut and riseMobile versionSmart phone purchase

30 IT Applications


Why E-Commerce is NOT Easy

HardwareComputer

Super-computer

Data center

Software

Networking

Programming

BusinessManagement

Manufacturing

ServiceSystem A&D Project

Management Ecom, Emark, MIS - Management

Server App developmentWeb devpt

Security

Cisco – CCNA - CCNP

IT ApplicationsCosts vs. Benefits

IT Applications

20E-Marketing

techniques/skills

20 excel skills

10 Applicable Rules in IT



http://en.wikipedia.org/wiki/Pareto_principle

20/80 rule

(1904 – 2008)(1848 – 1923)

80% of your sales come from 20% of your clients

Pareto noticed that 80% of Italy's land was owned by 20% of the population

richest 20% of the world's population controlling 82.7% of the world's income

Even if we take the ten wealthiest individuals in the world, we see that the top three (Carlos Slim Helú, Warren Buffett, and Bill Gates) own as much as the next seven put together

•80% of your profits come from 20% of your customers •80% of your complaints come from 20% of your customers •80% of your profits come from 20% of the time you spend •80% of your sales come from 20% of your products •80% of your sales are made by 20% of your sales staff

For example, Microsoft noted that by fixing the top 20% of the most reported bugs, 80% of the errors and crashes would be eliminated


http://en.wikipedia.org/wiki/Pareto_principle

20/80 rule

(1904 – 2008)(1848 – 1923)

80% of your sales come from 20% of your clients

For example, Microsoft noted that by fixing the top 20% of the most reported bugs, 80% of the errors and crashes would be eliminated

The "90–9–1" version of this rule states that 1% of people create content, 9% edit or modify that content, and 90% view the content without contributing.

that 20% of a group will produce 80% of the activity



8 Key Elements of a Business Model1. Value proposition2. Revenue model3. Market opportunity4. Competitive environment5. Competitive advantage6. Market strategy7. Organizational development8. Management team

8



8 Keys to Success1. Passion (do it for love, not for money)2. Work3. Good4. Focus5. Push6. Creative/idea – Think7. Serve/share/Sacrifice 8. Persistence

8



8 Keys to Success

1. Quan hệ (duệ)2. Tài nghệ3. T… tệ4. H…. đệ 5. Công nghệ6. ….7. gEne8. hEalth ieMBA.b03 (gu/sai/rai/tai)

8



4 types of RICH

4



Day 1 – Introduction of Ecommerce• 10 notes for the Course1. Combination of Offline class & Online course2. Ecommerce (IT application in Commerce, Business &

Management)3. Minimum requirements: IT, Ecom, Emark, MIS basic

understanding & using computer4. Class participation: Read, Listen, Speak, T/W5. English improvement & Knowledge/Skills



Day 1 – Introduction of Ecommerce• 10 notes for the Course6. Web: http://elearning.ftu.vn7. Textbook: Ecommerce (Laudon, Turban – 2012)8. Group work: website (4-5)9. Individual: case presentation (2) – Telling stories!10.Assessment: 10/30/60- Quiz: 10% - Group/Website: 20%- Midterm: 10%- Individual: 20%- FINAL: 40%



Q1. What is electronic commerce?

What is electronic commerceDifferentiate E-Commerce & E-BusinessFind 2 examples to illustrate Ecom & Ebiz



Q2. What are the two key benefits of EC?

When top managers/directors consider implementation of IT application (or Ecommerce, Ebusiness application), what are the TWO most important things they need to know?



TMA.306E.1 - Clips EcommerceFuture of retail



TMA.306E.1 - Discussion Find an example of Ecom/Ebiz around you

Ecommerce

Online shop selling books

SMS Banking

Elearning

ATMInternet bankingVinatour.com.vnReal estate online advertising

Megastar

E-ticket (Airlines)

Advertise on fbMuachungappstore

Toeft.com

E-document on violet.com

Game online (Zing)

Hotel booking

Ebay online auction

E stock

E-conferenceAlibaba.com

Google store

Mobile marketing on mobile application

Email marketimgWebsite design service

tiki.vn

IKea

Newspaper subscription

Trial fee paid test online

Selling & buying copy right online

Buying clothes online

Unlock iPhone online

Vov.vn

Banner advertising

Online booking

Buying domainemedical



TMA.306E.1 - Discussion Benefits of Ecommerce?

Ecommerce

Faster Competitive price

Gain more customers

Recorded Find products easily

Lower Costs

Reduce travel time

Overcome geographical limitations

Better information

24/7 stores

more freedom

Increase profit/sales

No need physical officesMore Flexible

Global access

Less HR

Less inventory

Easy customers’ feedback



Day 1 – MIS (Ecom, Emark) – K51CTTT• 10 notes for the Course1. Combination of Offline class & Online course2. MIS (IT application in Commerce/Business &

Management)3. Minimum requirements: IT, Ecom, Emark, MIS basic

understanding & using computer4. Class participation: Read, Listen, Speak, T/W5. English improvement & Knowledge/Skills



Day 1 – MIS (Ecom, Emark) – K51CTTT• 10 notes for the Course6. Web: http://elearning.ftu.vn7. Textbook: Information Systesm Today 4th Edition, Valacich, 2010

(paper copy)Management Information Systems 12th Edition, Laudon,

2012 (ebook)6. Group work: website (4-5)7. Individual: case presentation (2) – Telling stories!8. Assessment: 10/30/60- Quiz: 10% - Group/Website: 20%- Midterm: 10%- Individual: 20%- FINAL: 40%`



Day 1 – MIS (Ecom, Emark) – K51CTTT• 10 Practice1. Word, Excel, Power Point2. Computer hardware, software3. Online applications4. Ecommerce skillls: website, selling online5. Emarketing skills: youtube, email6. Group/Website: 20%7. Midterm: 10%8. Individual: 20%9. FINAL: 40%



Q1. Who is CIO?

Who is CIO?What are the roles/responsibilities of CIO?Find one CIO of a company/organization/country.

FSB - Q2 - Who is CIO and The Roles of CIO in an organization?

Find a typical CIO in an organization, company, industry or even country. Tell smt about his or her roles and resposibilities in IT application.



Q1. Who is CIO?

What are the roles/responsibilities of CIO?

CEO

CFOCOO

CCOCAOCTO

CBDO-CMO

CSO

CPO

CHRO

CVO

CDO

CIO

CSO CNO CLO



Q2. What are the two key benefits of IT application in organization (biz, mag,

prod)

When top managers/directors consider implementation of IT application (or Ecommerce, Ebusiness application), what are the TWO most important things they need to know?



Q2. What are the two key benefits of IT application in organization (biz, mag, prod)

systematic

Better

secure

automated

Labour-saving

Maintain quality infomation

More efficient

Updated

Expand capacity

Globalization

More competitive

entertained

multitask

organised

Time-saving

Good analysis

Accurate

Faster updated

24/7

portable Cheaper

Work performance

Support decision-making

process

More convinent

Future investmemt

Cost reduction

Increse revenue

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Date post:	14-Dec-2014
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