4.1 © 2003 by Prentice Hall 4 4 THE DIGITAL FIRM: ELECTRONIC COMMERCE AND ELECTRONIC BUSINESS...
-
Upload
rafael-rockwood -
Category
Documents
-
view
216 -
download
0
Transcript of 4.1 © 2003 by Prentice Hall 4 4 THE DIGITAL FIRM: ELECTRONIC COMMERCE AND ELECTRONIC BUSINESS...
4.1 © 2003 by Prentice Hall
44
THE DIGITAL FIRM: THE DIGITAL FIRM: ELECTRONIC ELECTRONIC
COMMERCE AND COMMERCE AND ELECTRONIC ELECTRONIC
BUSINESSBUSINESS
Chapter
4.2 © 2003 by Prentice Hall
• How has Internet technology changed How has Internet technology changed value propositions and business models?value propositions and business models?
• What is electronic commerce? How has What is electronic commerce? How has electronic commerce changed consumer electronic commerce changed consumer retailing and business-to-business retailing and business-to-business transactions?transactions?
• What are the principal payment systems What are the principal payment systems for electronic commerce?for electronic commerce?
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 4 Electronic Commerce & Electronic BusinessChapter 4 Electronic Commerce & Electronic Business
OBJECTIVES
4.3 © 2003 by Prentice Hall
• How can Internet technology support electronic How can Internet technology support electronic business and supply chain management?business and supply chain management?
• What are the major managerial and What are the major managerial and organizational challenges posed by electronic organizational challenges posed by electronic commerce and electronic business?commerce and electronic business?
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 4 Electronic Commerce & Electronic BusinessChapter 4 Electronic Commerce & Electronic Business
OBJECTIVES
4.4 © 2003 by Prentice Hall
• Emerging digital firmEmerging digital firm
• Electronic commerceElectronic commerce
• Electronic businessElectronic business
• Challenges and opportunitiesChallenges and opportunities
MANAGEMENT CHALLENGES
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 4 Electronic Commerce & Electronic BusinessChapter 4 Electronic Commerce & Electronic Business
4.5 © 2003 by Prentice Hall
1.1. Electronic commerce and electronic business Electronic commerce and electronic business require new mind setrequire new mind set
2.2. Finding a successful Internet business modelFinding a successful Internet business model
MANAGEMENT CHALLENGES
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 4 Electronic Commerce & Electronic BusinessChapter 4 Electronic Commerce & Electronic Business
4.6 © 2003 by Prentice Hall
Internet Technology and The Digital Firm
• Information technology infrastructure:Information technology infrastructure: Provides a universal and easy-to-use set of Provides a universal and easy-to-use set of technologies and technology standards that technologies and technology standards that can be adopted by all organizationscan be adopted by all organizations
• Direct communication between trading Direct communication between trading partners:partners: Disintermediation removes Disintermediation removes intermediate layers, streamlines processintermediate layers, streamlines process
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 4 Electronic Commerce & Electronic BusinessChapter 4 Electronic Commerce & Electronic Business
ELECTRONIC COMMERCE, ELECTRONIC BUSINESS, AND THE EMERGING DIGITAL FIRM
4.7 © 2003 by Prentice Hall
• Round-the-clock service:Round-the-clock service: Web sites available Web sites available to consumers 24 hours a dayto consumers 24 hours a day
• Extended distribution channels: Extended distribution channels: Outlets created for attracting customers who Outlets created for attracting customers who otherwise would not patronize otherwise would not patronize
• Reduced transaction costs:Reduced transaction costs: Costs of Costs of searching for buyers, sellers, etc. reducedsearching for buyers, sellers, etc. reduced
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 4 Electronic Commerce & Electronic BusinessChapter 4 Electronic Commerce & Electronic Business
Internet Technology and the Digital Firm
ELECTRONIC COMMERCE, ELECTRONIC BUSINESS, AND THE EMERGING DIGITAL FIRM
4.8 © 2003 by Prentice Hall
Business Model: Business Model: • Defines an enterprise Defines an enterprise
• Describes how the enterprise delivers a Describes how the enterprise delivers a product or serviceproduct or service
• Shows how the enterprise creates wealthShows how the enterprise creates wealth
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 4 Electronic Commerce & Electronic BusinessChapter 4 Electronic Commerce & Electronic Business
New Business Models and Value Propositions
ELECTRONIC COMMERCE, ELECTRONIC BUSINESS, AND THE EMERGING DIGITAL FIRM
4.9 © 2003 by Prentice Hall
• Information asymmetry: Information asymmetry: One party in a One party in a transaction has more information than the othertransaction has more information than the other
• Increases richness:Increases richness: Depth and detail of Depth and detail of informationinformation
• Increases reach:Increases reach: Number of people contacted Number of people contacted
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 4 Electronic Commerce & Electronic BusinessChapter 4 Electronic Commerce & Electronic Business
The Changing Economies of Information
ELECTRONIC COMMERCE, ELECTRONIC BUSINESS, AND THE EMERGING DIGITAL FIRM
4.10 © 2003 by Prentice Hall
Ric
hn
es
sR
ich
ne
ss New levels of richness and reach attainable
Reach
ENABLERS
Explosion of connectivity
Dissemination of
standards
Figure 4-1
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 4 Electronic Commerce & Electronic BusinessChapter 4 Electronic Commerce & Electronic Business
The Changing Economics of Information
ELECTRONIC COMMERCE, ELECTRONIC BUSINESS, AND THE EMERGING DIGITAL FIRM
4.11 © 2003 by Prentice Hall
Internet Business Models
• Virtual storefront:Virtual storefront: Sells goods, services Sells goods, services on-lineon-line
• Information broker:Information broker: Provide info on Provide info on products, pricing, etc.products, pricing, etc.
• Transaction broker:Transaction broker: Buyers view rates, Buyers view rates, terms from various sourcesterms from various sources
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 4 Electronic Commerce & Electronic BusinessChapter 4 Electronic Commerce & Electronic Business
ELECTRONIC COMMERCE, ELECTRONIC BUSINESS, AND THE EMERGING DIGITAL FIRM
4.12 © 2003 by Prentice Hall
• OnlineOnline Marketplace:Marketplace: Concentrates Concentrates information from several providersinformation from several providers
• Content provider:Content provider: Creates revenue Creates revenue through providing client for a fee, and through providing client for a fee, and advertisingadvertising
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 4 Electronic Commerce & Electronic BusinessChapter 4 Electronic Commerce & Electronic Business
Internet Business Models
ELECTRONIC COMMERCE, ELECTRONIC BUSINESS, AND THE EMERGING DIGITAL FIRM
4.13 © 2003 by Prentice Hall
• On-line service provider:On-line service provider: Provides Provides service, support for hardware, software service, support for hardware, software productsproducts
• Virtual community:Virtual community: Chat room, on-line Chat room, on-line meeting placemeeting place
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 4 Electronic Commerce & Electronic BusinessChapter 4 Electronic Commerce & Electronic Business
Internet Business Models
ELECTRONIC COMMERCE, ELECTRONIC BUSINESS, AND THE EMERGING DIGITAL FIRM
4.14 © 2003 by Prentice Hall
• Portal:Portal: Initial point of entry to Web, Initial point of entry to Web, specialized content, servicesspecialized content, services
• Syndicator:Syndicator: Aggregate information from Aggregate information from several sources sold to other companiesseveral sources sold to other companies
• Auction:Auction: Electronic clearinghouse Electronic clearinghouse products, prices, change in response to products, prices, change in response to demand demand
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 4 Electronic Commerce & Electronic BusinessChapter 4 Electronic Commerce & Electronic Business
Internet Business Models
ELECTRONIC COMMERCE, ELECTRONIC BUSINESS, AND THE EMERGING DIGITAL FIRM
4.15 © 2003 by Prentice Hall
• Dynamic pricing: Dynamic pricing: real-time interactions real-time interactions
betweenbetween buyers and sellersbuyers and sellers determine determine worth of itemsworth of items
• Banner ad:Banner ad: Graphic display used for Graphic display used for advertising, linked to the advertiser’s Web advertising, linked to the advertiser’s Web sitesite
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 4 Electronic Commerce & Electronic BusinessChapter 4 Electronic Commerce & Electronic Business
Internet Business Models
ELECTRONIC COMMERCE, ELECTRONIC BUSINESS, AND THE EMERGING DIGITAL FIRM
4.16 © 2003 by Prentice Hall
Categories of Electronic Commerce
• Business-to-customer (B2C):Business-to-customer (B2C): Retailing Retailing of products and services directly to of products and services directly to individual customersindividual customers
• Business-to-business (B2B): Business-to-business (B2B): Sales of Sales of goods and services among businessesgoods and services among businesses
• Consumer-to-consumer (C2C):Consumer-to-consumer (C2C): Individuals use Web for private sales or Individuals use Web for private sales or exchangeexchange
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 4 Electronic Commerce & Electronic BusinessChapter 4 Electronic Commerce & Electronic Business
ELECTRONIC COMMERCE
4.17 © 2003 by Prentice Hall
Business-To-Consumer
• Customer-centered retailing:Customer-centered retailing: Closer, Closer, yet more cost-effective relationship with yet more cost-effective relationship with customerscustomers
• Web sites:Web sites: Provide information on Provide information on products, services, prices, ordersproducts, services, prices, orders
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 4 Electronic Commerce & Electronic BusinessChapter 4 Electronic Commerce & Electronic Business
ELECTRONIC COMMERCE
4.18 © 2003 by Prentice Hall
Business-To-Consumer
• Disintermediation:Disintermediation: The removal of The removal of organizations or business process layers organizations or business process layers responsible for certain intermediary steps responsible for certain intermediary steps in a value chainin a value chain
• Reintermediation:Reintermediation: The shifting of the The shifting of the intermediary role in a value chain to a new intermediary role in a value chain to a new sourcesource
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 4 Electronic Commerce & Electronic BusinessChapter 4 Electronic Commerce & Electronic Business
ELECTRONIC COMMERCE
4.19 © 2003 by Prentice Hall
Benefits of Disintermediation to the Consumer
Figure 4-2
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 4 Electronic Commerce & Electronic BusinessChapter 4 Electronic Commerce & Electronic Business
Manufacturer
Manufacturer
Manufacturer
Distributor Retailer
Retailer
Customer
Customer
Customer
Cost/
Sweater
$48.50
$40.34
$20.45
ELECTRONIC COMMERCE
4.20 © 2003 by Prentice Hall
Interactive Marketing and Personalization
Web personalization:Web personalization:
• Benefits of using individual sales peopleBenefits of using individual sales people
• Dramatically lower costsDramatically lower costs
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 4 Electronic Commerce & Electronic BusinessChapter 4 Electronic Commerce & Electronic Business
ELECTRONIC COMMERCE
4.21 © 2003 by Prentice Hall
Web Site Personalization
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 4 Electronic Commerce & Electronic BusinessChapter 4 Electronic Commerce & Electronic Business
ELECTRONIC COMMERCE
4.22 © 2003 by Prentice Hall
M-Commerce and Next Generation Marketing
Mobile commerce (m-commerce):Mobile commerce (m-commerce):• Wireless devices used to conduct both Wireless devices used to conduct both
business-to-consumer and business-to-business-to-consumer and business-to-business e-commerce transactions over business e-commerce transactions over the Internetthe Internet
• Extend personalization by delivering new Extend personalization by delivering new value-added services directly to value-added services directly to customers at any time and placecustomers at any time and place
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 4 Electronic Commerce & Electronic BusinessChapter 4 Electronic Commerce & Electronic Business
ELECTRONIC COMMERCE
4.23 © 2003 by Prentice Hall
Customer Personalization
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 4 Electronic Commerce & Electronic BusinessChapter 4 Electronic Commerce & Electronic Business
Figure 4-4
ELECTRONIC COMMERCE
4.24 © 2003 by Prentice Hall
Business-To-Business Electronic Commerce
Automation of purchase, sale transactions Automation of purchase, sale transactions
from business to business from business to business
• Private industrial networks:Private industrial networks: Coordination Coordination between companies for efficient supply chain between companies for efficient supply chain management and collaborative activitiesmanagement and collaborative activities
• Electronic hubs:Electronic hubs: On-line marketplaces, On-line marketplaces, point-to-point connections, integrated point-to-point connections, integrated informationinformation
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 4 Electronic Commerce & Electronic BusinessChapter 4 Electronic Commerce & Electronic Business
ELECTRONIC COMMERCE
4.25 © 2003 by Prentice Hall
A Private Industrial Network
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 4 Electronic Commerce & Electronic BusinessChapter 4 Electronic Commerce & Electronic Business
Figure 4-5
ELECTRONIC COMMERCE
4.26 © 2003 by Prentice Hall
A Net Marketplace
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 4 Electronic Commerce & Electronic BusinessChapter 4 Electronic Commerce & Electronic Business
Figure 4-6
ELECTRONIC COMMERCE
4.27 © 2003 by Prentice Hall
Exchanges: Third-party net marketplaceExchanges: Third-party net marketplace
• Primarily transaction orientedPrimarily transaction oriented
• Connects buyers and suppliers for spot Connects buyers and suppliers for spot purchasingpurchasing
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 4 Electronic Commerce & Electronic BusinessChapter 4 Electronic Commerce & Electronic Business
ELECTRONIC COMMERCE
4.28 © 2003 by Prentice Hall
Electronic Commerce Payment Systems
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 4 Electronic Commerce & Electronic BusinessChapter 4 Electronic Commerce & Electronic Business
SYSTEM DESCRIPTION
CREDIT CARDS SECURE SITE PRESERVES INFORMATION
ELECTRONIC CASH DIGITAL CURRENCY USED FOR MICROPAYMENTS
PERSON-TO-PERSON SEND MONEY TO SITES UNABLE TO USE CREDIT CARDS
DIGITAL WALLET SOFTWARE STORES CREDIT CARD INFORMATION
ELECTRONIC CHECK CHECK WITH ENCRIPTED DIGITAL SIGNATURE
SMART CARD MICROCHIP STORES ELECTRONIC CASH
ELECTRONIC BILL PAYMENT ELECTRONIC FUNDS TRANSFER
ELECTRONIC COMMERCE
4.29 © 2003 by Prentice Hall
Electronic Commerce Information Flows
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 4 Electronic Commerce & Electronic BusinessChapter 4 Electronic Commerce & Electronic Business
Figure 4-7
ELECTRONIC COMMERCE
4.30 © 2003 by Prentice Hall
• BenefitsBenefits
• Functional applicationsFunctional applications
• Supply chain managementSupply chain management
How Intranets Support Electronic Business
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 4 Electronic Commerce & Electronic BusinessChapter 4 Electronic Commerce & Electronic Business
ELECTRONIC BUSINESS AND THE DIGITAL FIRM
4.31 © 2003 by Prentice Hall
• Connectivity: accessible from most computing Connectivity: accessible from most computing platformsplatforms
• Can be tied to internal corporate systems and Can be tied to internal corporate systems and core transaction databasescore transaction databases
• Can create interactive applicationsCan create interactive applications
• Scalable to larger or smaller computing Scalable to larger or smaller computing platformsplatforms
Benefits of Intranets
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 4 Electronic Commerce & Electronic BusinessChapter 4 Electronic Commerce & Electronic Business
ELECTRONIC BUSINESS AND THE DIGITAL FIRM
4.32 © 2003 by Prentice Hall
• Easy-to-use, universal Web interfaceEasy-to-use, universal Web interface
• Low start-up costsLow start-up costs
• Richer, more responsive information Richer, more responsive information environmentenvironment
• Reduced information distribution costsReduced information distribution costs
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 4 Electronic Commerce & Electronic BusinessChapter 4 Electronic Commerce & Electronic Business
Benefits of Intranets
ELECTRONIC BUSINESS AND THE DIGITAL FIRM
4.33 © 2003 by Prentice Hall
• Finance and accountingFinance and accounting
• Human resourcesHuman resources
• Sales and marketingSales and marketing
• Manufacturing and productionManufacturing and production
Functional Applications of Intranet
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 4 Electronic Commerce & Electronic BusinessChapter 4 Electronic Commerce & Electronic Business
ELECTRONIC BUSINESS AND THE DIGITAL FIRM
4.34 © 2003 by Prentice Hall
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 4 Electronic Commerce & Electronic BusinessChapter 4 Electronic Commerce & Electronic Business
Figure 4-8
Functional Applications of Intranets
ELECTRONIC BUSINESS AND THE DIGITAL FIRM
4.35 © 2003 by Prentice Hall
Finance and Accounting
• General ledger reportingGeneral ledger reporting
• Project costingProject costing
• Annual reportsAnnual reports
• BudgetingBudgeting
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 4 Electronic Commerce & Electronic BusinessChapter 4 Electronic Commerce & Electronic Business
ELECTRONIC BUSINESS AND THE DIGITAL FIRM
4.36 © 2003 by Prentice Hall
Human Resources
CompanyCompany• On-line publishing of corporate policyOn-line publishing of corporate policy• Job postings and internal job transfersJob postings and internal job transfers• Company telephone directories, and trainingCompany telephone directories, and training
Employees Employees • HealthcareHealthcare• Employee savingsEmployee savings• Competency testsCompetency tests
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 4 Electronic Commerce & Electronic BusinessChapter 4 Electronic Commerce & Electronic Business
ELECTRONIC BUSINESS AND THE DIGITAL FIRM
4.37 © 2003 by Prentice Hall
Sales and Marketing
• Competitor analysisCompetitor analysis
• Price updatesPrice updates
• Promotional campaignsPromotional campaigns
• Sales presentationsSales presentations
• Sales contractsSales contracts
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 4 Electronic Commerce & Electronic BusinessChapter 4 Electronic Commerce & Electronic Business
ELECTRONIC BUSINESS AND THE DIGITAL FIRM
4.38 © 2003 by Prentice Hall
Manufacturing and Production
• Quality measurementsQuality measurements
• Maintenance schedulesMaintenance schedules
• Design specificationsDesign specifications
• Machine outputsMachine outputs
• Order trackingOrder tracking
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 4 Electronic Commerce & Electronic BusinessChapter 4 Electronic Commerce & Electronic Business
ELECTRONIC BUSINESS AND THE DIGITAL FIRM
4.39 © 2003 by Prentice Hall
The Future Internet-Driven Supply Chain
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 4 Electronic Commerce & Electronic BusinessChapter 4 Electronic Commerce & Electronic Business
Figure 4-9
ELECTRONIC BUSINESS AND THE DIGITAL FIRM
4.40 © 2003 by Prentice Hall
• Unproven business modelsUnproven business models
• Business process change requirementsBusiness process change requirements
• Channel conflictsChannel conflicts
• Legal issuesLegal issues
• Security and privacySecurity and privacy
MANGEMENT CHALLENGES & OPPORTUNITIES
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 4 Electronic Commerce & Electronic BusinessChapter 4 Electronic Commerce & Electronic Business
4.41 © 2003 by Prentice Hall
44
ELECTRONIC ELECTRONIC COMMERCE & COMMERCE & ELECTRONIC ELECTRONIC
BUSINESSBUSINESS
Chapter