288 33 Powerpoint Slides Chapter 19 Global e Business
-
Upload
sachin-mishra -
Category
Documents
-
view
183 -
download
18
Transcript of 288 33 Powerpoint Slides Chapter 19 Global e Business
Copyright @ Oxford University Press Copyright @ Oxford University Press International Business R. M. JoshiInternational Business R. M. Joshi
Chapter 18: Global E-businessChapter 18: Global E-business
International BusinessInternational Business
Rakesh Mohan Joshi Rakesh Mohan Joshi
Professor & Chairperson, IIFT New DelhiProfessor & Chairperson, IIFT New Delhi
1
Copyright @ Oxford University Press Copyright @ Oxford University Press International Business R. M. JoshiInternational Business R. M. Joshi
Chapter 18: Global E-businessChapter 18: Global E-business
GLOBAL E-BUSINESSGLOBAL E-BUSINESS
Chapter 19
Copyright @ Oxford University Press Copyright @ Oxford University Press International Business R. M. JoshiInternational Business R. M. Joshi
Chapter 18: Global E-Chapter 18: Global E-businessbusiness
Learning ObjectivesLearning Objectives
To elucidate the conceptual framework of To elucidate the conceptual framework of e-businesse-business
To examine e-business technology and To examine e-business technology and environment environment
To explain various e-business models and To explain various e-business models and strategic optionsstrategic options
To discuss global e-marketing and e-To discuss global e-marketing and e-servicesservices
To explicate electronic processing of To explicate electronic processing of international trade documentsinternational trade documents
To evaluate policy framework for global e-To evaluate policy framework for global e-business business
Copyright @ Oxford University Press Copyright @ Oxford University Press International Business R. M. JoshiInternational Business R. M. Joshi
Chapter 18: Global E-Chapter 18: Global E-businessbusiness
Growing Significance of E-businessGrowing Significance of E-business
The breakthroughs in ICT have The breakthroughs in ICT have
revolutionized relationships within and revolutionized relationships within and
between organisations and individuals. between organisations and individuals.
Companies are progressively integrating ICT Companies are progressively integrating ICT
in their traditional ways of doing businesses in their traditional ways of doing businesses
and moving towards E-business to achieve and moving towards E-business to achieve
and sustain competitiveness.and sustain competitiveness.
Copyright @ Oxford University Press Copyright @ Oxford University Press International Business R. M. JoshiInternational Business R. M. Joshi
Chapter 18: Global E-Chapter 18: Global E-businessbusiness
E-businessE-business
Integration of ICT with business processes. Integration of ICT with business processes.
Although the extent and scope of such Although the extent and scope of such
integration and applications varies widely, it integration and applications varies widely, it
contributes to enhanced efficiency in contributes to enhanced efficiency in
managing businesses.managing businesses.
Copyright @ Oxford University Press Copyright @ Oxford University Press International Business R. M. JoshiInternational Business R. M. Joshi
Chapter 18: Global E-Chapter 18: Global E-businessbusiness
Reasons for Companies Making Online Reasons for Companies Making Online PresencePresence
Expand global market reachExpand global market reach Creating world-wide virtual presence Creating world-wide virtual presence Improving business visibility Improving business visibility Increasing responsiveness to customers Increasing responsiveness to customers
and business partnersand business partners Reduction in business costsReduction in business costs Nurturing and strengthening relationships Nurturing and strengthening relationships
with customers and business partnerswith customers and business partners
Copyright @ Oxford University Press Copyright @ Oxford University Press International Business R. M. JoshiInternational Business R. M. Joshi
Chapter 18: Global E-Chapter 18: Global E-businessbusiness
Factors Contributing to the Growth of E-Factors Contributing to the Growth of E-businessbusiness
Advent of the Internet and world-wide webAdvent of the Internet and world-wide web Cost savings through integrating business Cost savings through integrating business
processes with network-based technology processes with network-based technology Growing use of the Internet as marketing Growing use of the Internet as marketing
channel channel Opportunities to enhance supply-chain Opportunities to enhance supply-chain
efficiency and cost-effectiveness efficiency and cost-effectiveness Improved customer service in the form of Improved customer service in the form of
round-the-clock online access to the round-the-clock online access to the companycompany
Copyright @ Oxford University Press Copyright @ Oxford University Press International Business R. M. JoshiInternational Business R. M. Joshi
Chapter 18: Global E-Chapter 18: Global E-businessbusiness
E-commerceE-commerce
Buying and selling of goods or services Buying and selling of goods or services
through a computer-mediated network. through a computer-mediated network.
It includes all forms of business transactions It includes all forms of business transactions
in which the transacting parties interact in which the transacting parties interact
electronically over digital networks rather electronically over digital networks rather
than by physical exchanges or physical than by physical exchanges or physical
contact. contact.
Copyright @ Oxford University Press Copyright @ Oxford University Press International Business R. M. JoshiInternational Business R. M. Joshi
Chapter 18: Global E-Chapter 18: Global E-businessbusiness
E-businessE-business
Integration of ICT with business processes so Integration of ICT with business processes so
as to enhance an organization’s competitive as to enhance an organization’s competitive
strength. E-business encompasses a broad strength. E-business encompasses a broad
frame of business activities rather than frame of business activities rather than
merely buying and selling merely buying and selling
Copyright @ Oxford University Press Copyright @ Oxford University Press International Business R. M. JoshiInternational Business R. M. Joshi
Chapter 18: Global E-Chapter 18: Global E-businessbusiness
Primary ProcessesPrimary Processes usually enhanced by usually enhanced by E-businessE-business
Production processes: Production processes: Include procurement, Include procurement, ordering and replenishment of stocks; processing ordering and replenishment of stocks; processing of payments; electronic links with suppliers; and of payments; electronic links with suppliers; and production-control processes, among othersproduction-control processes, among others
Customer-focussed processes: Customer-focussed processes: Include Include promotional and marketing efforts, selling over promotional and marketing efforts, selling over the Internet, processing of customers’ purchase the Internet, processing of customers’ purchase orders and payments, and customer support, orders and payments, and customer support, among othersamong others
Internal management processes:Internal management processes: Include Include employee services, training, internal information-employee services, training, internal information-sharing, video-conferencing, and recruiting. sharing, video-conferencing, and recruiting.
Copyright @ Oxford University Press Copyright @ Oxford University Press International Business R. M. JoshiInternational Business R. M. Joshi
Chapter 18: Global E-Chapter 18: Global E-businessbusiness
M-businessM-business
The conduct of business activities through use of The conduct of business activities through use of
wireless technology, such as mobile phones, wireless technology, such as mobile phones,
personal digital assistant (PDA), and telematics. personal digital assistant (PDA), and telematics.
M-business facilitates interaction among business M-business facilitates interaction among business
stakeholders with the worldwide web, irrespective stakeholders with the worldwide web, irrespective
of location-specific context. It also enables business of location-specific context. It also enables business
communication through mobile devices and text communication through mobile devices and text
applications such as SMS, using e-mail, and through applications such as SMS, using e-mail, and through
the web. the web.
Copyright @ Oxford University Press Copyright @ Oxford University Press International Business R. M. JoshiInternational Business R. M. Joshi
Chapter 18: Global E-Chapter 18: Global E-businessbusiness
E-enabled Business Process E-enabled Business Process Transformations and ChallengesTransformations and Challenges
Physical marketplace to virtual market spacePhysical marketplace to virtual market space
Physical products to digital products Physical products to digital products
Mass production of standardized products to Mass production of standardized products to
mass customizationmass customization
Fixed pricing to dynamic pricingFixed pricing to dynamic pricing
Mass marketing techniques to customized Mass marketing techniques to customized
marketingmarketing
Hierarchal organizations to network organizationsHierarchal organizations to network organizations
Copyright @ Oxford University Press Copyright @ Oxford University Press International Business R. M. JoshiInternational Business R. M. Joshi
Chapter 18: Global E-Chapter 18: Global E-businessbusiness
Electronic Data Interchange (EDI)Electronic Data Interchange (EDI)
The exchange of information through The exchange of information through computers between organizations in a computers between organizations in a standard, computer-processable, and standard, computer-processable, and universally accepted format using universally accepted format using proprietary networks. proprietary networks.
Major components required to send and Major components required to send and receive EDI messages include:receive EDI messages include: EDI standardsEDI standardsEDI softwareEDI software Third party networks for communication Third party networks for communication
Copyright @ Oxford University Press Copyright @ Oxford University Press International Business R. M. JoshiInternational Business R. M. Joshi
Chapter 18: Global E-Chapter 18: Global E-businessbusiness
InternetInternet
A ‘network of networks’ or ‘interconnected A ‘network of networks’ or ‘interconnected
computer networks’ comprising of millions of computer networks’ comprising of millions of
small domestic, business, academic, and small domestic, business, academic, and
government networks linked by copper-government networks linked by copper-
wires, optical fibre cables, or wireless wires, optical fibre cables, or wireless
connections. connections.
Copyright @ Oxford University Press Copyright @ Oxford University Press International Business R. M. JoshiInternational Business R. M. Joshi
Chapter 18: Global E-Chapter 18: Global E-businessbusiness
ExtranetExtranet
An internet-based network between a An internet-based network between a
business enterprises and its suppliers, business enterprises and its suppliers,
distributors, and business partners which is distributors, and business partners which is
not open to general public. not open to general public.
Copyright @ Oxford University Press Copyright @ Oxford University Press International Business R. M. JoshiInternational Business R. M. Joshi
Chapter 18: Global E-Chapter 18: Global E-businessbusiness
IntranetIntranet
An internal private network used to link An internal private network used to link
various divisions of a business around the various divisions of a business around the
world into a unified communication network world into a unified communication network
using the same types of software, hardware, using the same types of software, hardware,
and connections as the Internet. and connections as the Internet.
Copyright @ Oxford University Press Copyright @ Oxford University Press International Business R. M. JoshiInternational Business R. M. Joshi
Chapter 18: Global E-Chapter 18: Global E-businessbusiness
E-readinessE-readiness
A measure of the quality of a country’s ICT A measure of the quality of a country’s ICT
infrastructure and the ability of its infrastructure and the ability of its
consumers, businesses, and government to consumers, businesses, and government to
use it to their benefit.use it to their benefit.
It provides a broad framework to assess the It provides a broad framework to assess the
world’s largest economies on their abilities world’s largest economies on their abilities
to absorb the technology and use it for to absorb the technology and use it for
economic and social benefits.economic and social benefits.
Copyright @ Oxford University Press Copyright @ Oxford University Press International Business R. M. JoshiInternational Business R. M. Joshi
Chapter 18: Global E-Chapter 18: Global E-businessbusiness
E-business ApplicationsE-business Applications
E-auctionsE-auctions
E-bankingE-banking
E-directoriesE-directories
E-manufacturingE-manufacturing
E-business ResearchE-business Research
E-governanceE-governance
Copyright @ Oxford University Press Copyright @ Oxford University Press International Business R. M. JoshiInternational Business R. M. Joshi
Chapter 18: Global E-Chapter 18: Global E-businessbusiness
E-Business ModelsE-Business Models
Business to Business (B-to-B)Business to Business (B-to-B) Involves intra-firm Involves intra-firm
transactions using an electronic network. transactions using an electronic network.
Business to Consumers (B-to-C)Business to Consumers (B-to-C) Used for Used for
purchasing products and information, mainly purchasing products and information, mainly
personal finances and investments, with the use of personal finances and investments, with the use of
online banking and investment tools. online banking and investment tools.
Copyright @ Oxford University Press Copyright @ Oxford University Press International Business R. M. JoshiInternational Business R. M. Joshi
Chapter 18: Global E-Chapter 18: Global E-businessbusiness
Consumers to Business (C-to-B) Consumers to Business (C-to-B) It allows It allows
individuals, especially professionals, such as individuals, especially professionals, such as
lawyers and accountants, to offer their services lawyers and accountants, to offer their services
to businesses.to businesses.
Consumers to Consumers (C-to-C) Consumers to Consumers (C-to-C) It involves It involves
horizontal interaction between consumers, who horizontal interaction between consumers, who
generally share their experiences with the generally share their experiences with the
product by way of chat rooms. product by way of chat rooms.
Copyright @ Oxford University Press Copyright @ Oxford University Press International Business R. M. JoshiInternational Business R. M. Joshi
Chapter 18: Global E-Chapter 18: Global E-businessbusiness
Business to Government (B2G)/ Government to Business to Government (B2G)/ Government to
Business (G2B)Business (G2B) Application of e-business between Application of e-business between
government agencies with businesses often used for government agencies with businesses often used for
public procurement, regulatory procedures and public procurement, regulatory procedures and
approvals, and other government-related operations approvals, and other government-related operations
using ICT tools. using ICT tools.
Copyright @ Oxford University Press Copyright @ Oxford University Press International Business R. M. JoshiInternational Business R. M. Joshi
Chapter 18: Global E-Chapter 18: Global E-businessbusiness
Citizens to Government Citizens to Government
(C2G)/Government to Citizens (G2C)(C2G)/Government to Citizens (G2C)
Generally used to disseminate to its citizens a Generally used to disseminate to its citizens a
variety of government information, such as general variety of government information, such as general
rules and regulations, directly concerned with the rules and regulations, directly concerned with the
citizens and other information of public departments. citizens and other information of public departments.
Copyright @ Oxford University Press Copyright @ Oxford University Press International Business R. M. JoshiInternational Business R. M. Joshi
Chapter 18: Global E-Chapter 18: Global E-businessbusiness
Alternative e-Business Strategies Alternative e-Business Strategies Brick and MortarBrick and Mortar
Tangible physical assets. such as a Tangible physical assets. such as a manufacturing unit or building, or a manufacturing unit or building, or a storage facility. storage facility.
Pure ClickPure Click
The entire marketing transactions are The entire marketing transactions are carried out online with little physical carried out online with little physical presence. Also known as ‘dotcoms’ or presence. Also known as ‘dotcoms’ or ‘pure-plays’. ‘pure-plays’.
Brick and ClickBrick and Click
Marketing activities and transactions are Marketing activities and transactions are conducted, both online and offline. conducted, both online and offline.
Copyright @ Oxford University Press Copyright @ Oxford University Press International Business R. M. JoshiInternational Business R. M. Joshi
Chapter 18: Global E-Chapter 18: Global E-businessbusiness
Global E-marketingGlobal E-marketing
Conduct of marketing transactions, such as Conduct of marketing transactions, such as
buying, selling, distributing or delivering buying, selling, distributing or delivering
goods or services using electronic methods goods or services using electronic methods
across the world. across the world.
Copyright @ Oxford University Press Copyright @ Oxford University Press International Business R. M. JoshiInternational Business R. M. Joshi
Chapter 18: Global E-Chapter 18: Global E-businessbusiness
Impact of ICT on Consumer Purchase Impact of ICT on Consumer Purchase Decision ProcessDecision Process
Problem recognition: Problem recognition: User specific User specific
customised communication strategy rather customised communication strategy rather
than mass communication.than mass communication.
Information search: Information search: International scan by International scan by
customers over internet. customers over internet.
Evaluation of Alternatives: Evaluation of Alternatives: Greatly Greatly
influenced by virtual communities over influenced by virtual communities over
internet. internet.
Copyright @ Oxford University Press Copyright @ Oxford University Press International Business R. M. JoshiInternational Business R. M. Joshi
Chapter 18: Global E-Chapter 18: Global E-businessbusiness
Purchase decision: Purchase decision: Induced by Induced by
interesting websites, competitive prices and interesting websites, competitive prices and
superior purchasing experience.superior purchasing experience.
Post-purchase behaviour: Post-purchase behaviour: Emphasis on Emphasis on
ICT to promptly response to customer ICT to promptly response to customer
queries. queries.
Copyright @ Oxford University Press Copyright @ Oxford University Press International Business R. M. JoshiInternational Business R. M. Joshi
Chapter 18: Global E-Chapter 18: Global E-businessbusiness
Emergence of Reverse MarketingEmergence of Reverse Marketing
Reverse PromotionReverse Promotion
Reverse advertisingReverse advertising
Reverse pricingReverse pricing
Reverse product designReverse product design
Reverse segmentation Reverse segmentation
Copyright @ Oxford University Press Copyright @ Oxford University Press International Business R. M. JoshiInternational Business R. M. Joshi
Chapter 18: Global E-Chapter 18: Global E-businessbusiness
Global E-servicesGlobal E-services
The ICT has revolutionised the ways services The ICT has revolutionised the ways services
are offered breaking the geographical are offered breaking the geographical
boundaries. With digitization, the Internet, boundaries. With digitization, the Internet,
and high-speed data networks, all kinds of and high-speed data networks, all kinds of
knowledge- related work can now be done knowledge- related work can now be done
almost anywhere in the world. almost anywhere in the world.
Copyright @ Oxford University Press Copyright @ Oxford University Press International Business R. M. JoshiInternational Business R. M. Joshi
Chapter 18: Global E-Chapter 18: Global E-businessbusiness
Various IT-enabled Services (ITeS)Various IT-enabled Services (ITeS)
Finance and accounting (F&A) services Finance and accounting (F&A) services
Customer interaction services Customer interaction services
Human resource administration services Human resource administration services
Other-vertical specific and niche services Other-vertical specific and niche services
Copyright @ Oxford University Press Copyright @ Oxford University Press International Business R. M. JoshiInternational Business R. M. Joshi
Chapter 18: Global E-Chapter 18: Global E-businessbusiness
Electronic Processing of Electronic Processing of International Trade DocumentsInternational Trade Documents
The introduction of electronic processing of The introduction of electronic processing of
export documentation not only reduces the export documentation not only reduces the
transaction time and cost but also reduce transaction time and cost but also reduce
discretionary approach by the officials discretionary approach by the officials
concerned. Effective electronic and concerned. Effective electronic and
automated trade documentation systems automated trade documentation systems
enhance transaction speed and make enhance transaction speed and make
regulatory system more transparent and regulatory system more transparent and
predictable. predictable.
Copyright @ Oxford University Press Copyright @ Oxford University Press International Business R. M. JoshiInternational Business R. M. Joshi
Chapter 18: Global E-Chapter 18: Global E-businessbusiness
Electronic Trade Documentation SystemElectronic Trade Documentation System
The manual ways of trade documentation The manual ways of trade documentation
and its processing are being transformed and its processing are being transformed
into paperless means by way of introduction into paperless means by way of introduction
of the Electronic Data Interchange (EDI) of the Electronic Data Interchange (EDI)
trade system. Besides, trade procedures are trade system. Besides, trade procedures are
also being streamlined and automated so also being streamlined and automated so
that a single form could be used for all trade that a single form could be used for all trade
documentation requirements. documentation requirements.
Copyright @ Oxford University Press Copyright @ Oxford University Press International Business R. M. JoshiInternational Business R. M. Joshi
Chapter 18: Global E-Chapter 18: Global E-businessbusiness
Singapore’s Electronic Trade Documentation Singapore’s Electronic Trade Documentation SystemSystem
TradeNet:TradeNet: It is an EDI system that allows It is an EDI system that allows computer-to-computer exchange of inter-computer-to-computer exchange of inter-company business documents in an company business documents in an established format between connected established format between connected members of the Singapore trading members of the Singapore trading community. It links multiple parties involved community. It links multiple parties involved in international trade transactions, including in international trade transactions, including various government institutions, to a single various government institutions, to a single point of transaction for most trade point of transaction for most trade documentation tasks. documentation tasks.
Copyright @ Oxford University Press Copyright @ Oxford University Press International Business R. M. JoshiInternational Business R. M. Joshi
Chapter 18: Global E-Chapter 18: Global E-businessbusiness
TradeXchange:TradeXchange: It is the world’s first It is the world’s first
nation-wide electronic trade documentation nation-wide electronic trade documentation
system that offers a single point of data system that offers a single point of data
entry to achieve a number of completed entry to achieve a number of completed
transactions with the government. It’s a transactions with the government. It’s a
multi-agency initiative that processes 100 multi-agency initiative that processes 100
per cent of all trade declarations and per cent of all trade declarations and
integrates the requirements of all integrates the requirements of all
controlling units in Singapore.controlling units in Singapore.
Copyright @ Oxford University Press Copyright @ Oxford University Press International Business R. M. JoshiInternational Business R. M. Joshi
Chapter 18: Global E-Chapter 18: Global E-businessbusiness
Electronic Trade Documentation System in Electronic Trade Documentation System in IndiaIndia
India’s Ministry of Commerce launched a India’s Ministry of Commerce launched a coordinated EC/EDI implementation project coordinated EC/EDI implementation project involving a number of government agencies.involving a number of government agencies.
For electronic filing and processing of For electronic filing and processing of documents, the Indian Customs and Central documents, the Indian Customs and Central Excise Electronic Commerce/Electronic data Excise Electronic Commerce/Electronic data interchange (EC/EDI) gateway has been interchange (EC/EDI) gateway has been created, popularly known as ICEGATE. created, popularly known as ICEGATE.
Copyright @ Oxford University Press Copyright @ Oxford University Press International Business R. M. JoshiInternational Business R. M. Joshi
Chapter 18: Global E-Chapter 18: Global E-businessbusiness
System Components of EDISystem Components of EDI
Indian Customs EDI System (ICES)Indian Customs EDI System (ICES)
Message Exchange Servers (MES)Message Exchange Servers (MES)
ICEGATE (Indian Customs and Central ICEGATE (Indian Customs and Central
Excise Gateway) & ICENET (Indian Excise Gateway) & ICENET (Indian
Customs and Central Excise Network)Customs and Central Excise Network)
Copyright @ Oxford University Press Copyright @ Oxford University Press International Business R. M. JoshiInternational Business R. M. Joshi
Chapter 18: Global E-Chapter 18: Global E-businessbusiness
Policy Framework for Global E-Policy Framework for Global E-businessbusiness
From a policy perspective, electronic From a policy perspective, electronic delivery of goods is the most challenging delivery of goods is the most challenging aspect as such trade is rising rapidly aspect as such trade is rising rapidly without any global regulatory framework without any global regulatory framework and hardly any national or international and hardly any national or international legislation.legislation.The Second Ministerial Declaration of the The Second Ministerial Declaration of the WTO at Geneva adopted a declaration on WTO at Geneva adopted a declaration on global electronic commerce on May 20, global electronic commerce on May 20, 1998, aimed to establish a comprehensive 1998, aimed to establish a comprehensive work program to examine all trade-work program to examine all trade-related issues arising from E-commerce. related issues arising from E-commerce.