Chapter 3: E-Business

Closing Case for Chapter 2: Mass Customization

• Today, mass customization is a new trend in the retail business.

• Today, mass customization is a new trend in the retail business.

• Mass customization hits that “sweet spot” between harnessing the cost efficiencies of mass production and offering so many options that customers feel the product has been designed just for them.

• Mass customization hits that “sweet spot” between harnessing the cost efficiencies of mass production and offering so many options that customers feel the product has been designed just for them.

Case Questions

1. What role do you think SCM and CRM play in a mass customization business strategy?

2. How could a ERP system help facilitate the mass customization effort?

3. How does SCM, CRM, or ERP systems that are used for mass customization help to give companies a competitive advantage?

Honda Element: Great example of Mass Customization

Chapter 3: Business & The Internet

• E-business: is the conducting of business on the Internet, not only buying and selling, but also serving customers and collaborating with business partners

• Goes beyond a simple website, it must be innovative, add value, and provide useful information

• E-business: is the conducting of business on the Internet, not only buying and selling, but also serving customers and collaborating with business partners

• Goes beyond a simple website, it must be innovative, add value, and provide useful information

The Innovators Dilemma

• Businesses that do what is right, focusing on meeting customer current needs, (focus on sustaining technologies) and still loose market share.

• This market share lose is the result of failing to adopt new disruptive technologies that will meet customers future needs

• Businesses that do what is right, focusing on meeting customer current needs, (focus on sustaining technologies) and still loose market share.

• This market share lose is the result of failing to adopt new disruptive technologies that will meet customers future needs

Disruptive Vs. Sustaining Technologies

Disruptive Technology:• is a new way of doing things

that initially does not meet the needs of existing customers Sustaining TechnologySustaining Technology

• Produces an improved product that customers are eager to buy

Example of Disruptive Technology

• Remember recording your favorite TV shows to your VCR?

• Maybe not, this was a cumbersome and technically difficult task for many….

• Remember recording your favorite TV shows to your VCR?

• Maybe not, this was a cumbersome and technically difficult task for many….

• Enter in DVR’s and TiVo!

• DVR’s made recording your favorite TV shows easy as “click of a button”

More Disruptive TechnologyYouTube.com Armed with affordable digital cameras,

easy access to the web , combined with web publishing tools

Open-Source Examples include;

•Linux OS •Mozilla Firefox•Open-office

New companies being born in the Web 2.0 era that is more creative, more stable than the previous era….

•New open source tech used to take on the cell phone industry….

Blogging Gives everyone a voice! Bloggers can even make money on their sites using common e-commerce strategies

Portable and Cheap Storage I-Pods, flash drives, cell phones and Handheld’s that allow users to download and carry with them, movies, videos, etc…

The Internet: Business DisruptionThe Internet: Business Disruption

• The internet has changed drastically how business is done.Online travel sites Revolutionized the travel industry.

Entertainment: Music and Movies Online downloads are destroying the traditional music business. Movie business next target of e-business!

MP3 and Napster….

Book Store Sales Amazon.com and other sites like it hold serious competitive advantages over traditional stores that could not even try to have all new books in stock!

Electronics Using the internet to link suppliers and customers

Web 2.0 Web 2.0 is a loose cloud of capabilities, technologies, business

models, and philosophies that sets e-commerce apart from traditional software processing. This chart compares the two.

The Internet• Originally, the Internet was

known as ARPANET and was only a emergency military communications system operated by the Dept. of Defenses Advanced Research Project Agency.

• ARPANET was only a series of linked government computers and a few universities.

• As more universities and scholars came on board administration of the NET transferred to the National Science Foundation

• Business then moved in and administration of the NET transferred again…

How does the Internet Work?

• The world wide web (www) is a global hypertext system that uses the Internet as its transport system

• Hypertext transport protocol (HTTP): is the Internet standard that supports the exchange of information on the WWW.

http://www.umaine.edu/business/accounting.htmhttp://www.umaine.edu/business/accounting.htm

Internet Addresses: Universal Resource Locator (URL)Internet Addresses: Universal Resource Locator (URL)

http://www.umaine.edu/business/accounting.htmhttp://www.umaine.edu/business/accounting.htm

Transport Protocol

Name of Host

Computer

Sub-Directory

Final destination

file

Web Pages• Web pages house a

variety of information that is accessed through a web browser

• Usually in HTML or XHTML format and may navigate to other web pages using hyperlinks

• Web pages house a variety of information that is accessed through a web browser

• Usually in HTML or XHTML format and may navigate to other web pages using hyperlinks

• Web pages are retrieved from Web Servers

• Web server may restrict access to web pages that are housed in a private network: Intranet

• Or pages may be published to the public domain via the World wide web.

• Web pages are retrieved from Web Servers

• Web server may restrict access to web pages that are housed in a private network: Intranet

• Or pages may be published to the public domain via the World wide web.

Why did the WWW Grow?Microcomputer revolution made it possible for an average person to own a computer

Advancements in networking hardware, software, & media made it possible business PCs to be inexpensively connected to larger networks

Browser software provided users with an easy to use graphical interface to find, download, & display web pages

Speed, convenience, and low-cost of email made it incredibly popular tool for business and personal communications

Basic web pages are easy to create and extremely flexible

Internet’s Impact on InformationEasy to Compile Searching for information is easier and faster using the

Internet

Increased Richness Refers to the depth & breadth transferred between customers & business

Increased Reach Refers to the number of people a business can communicate with on a global basis

Improved Content The internet provides increasingly dynamic relevant content

The Digital Divide

• Is when those with access to technology have great advantages over those without access to technology

• This scenario exists in our state!

• How can this occur in a state with plenty of available technology?