1. E-logistics = Internet + logistics Ren Rojas www.linkedin.com/in/renerojas www.twitter/renerojasrenerojas@modelosdenegocio.com

2. Definitions - Internet Web of millions of electronic networkslinked by cables and wirelesstechnologies that carry data around theworld in fractions of seconds 3. WWW World Wide Web World Wide Web is the most importantarchitecture running over internetDocuments in HTML or XML at various URLs linkedvia HTTPHTTP: HyperText Transfer ProtocolURL: Uniform Resource LocatorHTML: Hypertext Markup LanguageXML: eXtensible Markup Language(Radio + TV + printed media ) * reach *richness 4. (Internet + www ) History 5. 3. Internet ArchitectureEmerging Application Service Providers (ASPs) BACKBONE Network Access Providers Internet Access/Service ProvidersEND USERSAdapted from (Kalahota & Whinston: 1996, 41)/2000) 6. How Internet worksComputers on the Internet worktogether to transfer informationback and forth around the world. Backbone RouterThe Internet A router regulatesbackbone is a set of traffic on the Internet high-speed dataPacketsand picks the mostlines connectingInformation over the Internet is efficient route for major networks allbroken down into smaller pieceseach packet. Aover the world.called packets.packet may pass through manyTCP/IP routers beforeTransmission Control Protocol/Internet reaching itsProtocol (TCP/IP) is a destination.language computers on the Internetuse to communicate with each other.TCP/IP divides information into packets andsends the packets independently across theDownload and UploadInternet. When information arrives at the You download informationintended destination, TCP/IP ensures that from other computers onall the packets arrived safely andthe Internet.reassembles the original information. You upload information toother computers on the Source: Paul Whitehead and Ruth Maran, Teach Yourself the Internet and the World Wide Web Visually,Internet.Last Updated: 01/17/01 IDG Books Worldwide, 1997 Source: Rayport & Jaworski (2001) Copyright 2000 by Marketspace LLC 7. Internet Access MethodsGameTelevisionSystems TelephoneCableModemModem Connecting To Telephone CableMobileThe ISDNInternetPDAs Palmtops Satellite MP3 Computer Future?Networks Where There Is A Chip.. 8. Internet Global Usage www.internetworldstats.com 9. WHO IS AFFECTED B&Mbusiness WALTMARTE-Business DELL AMAZON E-logistics 10. e-Business Infrastructure e-Business infrastructurethe general industry environmentunderlies each strategic decisionpresents opportunities & constraints2 categories of e-business infrastructureNetworkMediaDigitization driving convergence of each 11. Network & Media ConvergenceNetwork MediaInfrastructure Infrastructure Print Telephone/DSL(Newspapers and Magazines) CableTelevisionBroadcast Radio & TV RadioDigitalConvergence SatelliteMusic Wireless Motion PicturesSource: Rayport & Jaworski (2001) 12. Definitions - Network Infrastructure Basic underlying group of electronicdevices and connecting circuitrydesigned as a system to shareinformation Source: Rayport & Jaworski IncludesHard & softwareComms, pay TV, computers, mobiledevicesAll that enables the transport of digital info 13. Network Power Social Networks Business NetworksMelcalfe lawReed LawMoores Law (Gordon Moore,INTEL) Microprocessor Computer Power Will Double Every 18 months - Valid Since 1975 14. Business ApplicationsBill Gates Digital Nervous SystemCorporate digital equivalent of humannervous systemDigital processes that closely link everyaspect of a companys thoughts andactionsWell-integrated flow of info to right part oforganisation at right timeFinance, production, customer feedback accessible using digital tools to quicklyadapt and respond Source Gates, Bill. (1999), Business @ the Speed ofThought, Penguin Books, London 15. Source: Rayport & Jaworski (2001) Exhibit 9-12: Digital Nervous System Procurement Finance / Accounting / Control Supply-Chain Management / Human Resource Management Basic OperationBusinessDigitalStrategicReflexesNervous System ThinkingCustomer Interaction Consumer Relationship Management / Selling- Chain Management /Supply-ChainManagementLast Updated: 01/17/01 Source: Bill Gates, Business @ the Speed of Thought, Warner Books, 1999 Copyright 2000 by Marketspace LLC 16. Business ApplicationsIntranetsComputer Networks privately developed andoperated within an organisationNow set up with Internet ArchitectureIncluding World Wide Web ServiceGateways to the Internet (Firewalls)ExtranetsCollaborative network linking businesses with theirsuppliers, customers or other businesses thatshare common goalsUsing Internet ArchitectureOften evolving out of an IntranetGateways to the Internet (Firewalls) 17. Business Applications - CRMOptimising long term profitability of customerrelationships by better understanding acustomers behaviour, patterns and life timevalue to a companyCoordinated actions at all access points todriveX-sellUp sellRetention 18. Exhibit 9-13: Customer Relationship ManagementCustomerCustomer Relationship Relationship Management Management Direct Channels Direct ChannelsIndirect Channels Indirect Channels Web Web Telecenter Telecenter Direct SalesDirect SalesRetailerRetailer Reseller Reseller DistributionDistribution CustomersCustomersand Prospectsand Prospects Source: Know Thy Customer, The New York Times, February 14, 2000Last Updated: 01/17/01 Source: Rayport & Jaworski (2001) Copyright 2000 by Marketspace LLC 19. Business Applications - Selling Chain ManagementLarge scale field-sales solutions toautomate order acquisition functionsincluding configurations, pricing andserviceAims are toMake things easy for customerAdd value to customerImprove sales effectivenessFacilitate team selling 20. Supporting Slide 9-G: Enterprise Resource PlanningForecasting andForecasting and PlanningPlanningPurchasing Material Purchasing MaterialManagementManagement Warehousing and Warehousing andInventory Inventory Enterprise Resource Planning Enterprise Resource PlanningManagement Management Finished Product Finished ProductDistributionDistribution Accounting/FinanceAccounting/Finance Source: Adopted from e-Business: Roadmap for Success, Dr. Ravi Kalakota and Marcia Robinson Last Updated: 01/17/01Source: Rayport & Jaworski (2001)Copyright 2000 by Marketspace LLC 21. Supporting Slide 9-H: Supply-Chain Management Market Demand Market Demand Resource and Resource andSupply-Chain Management Supply-Chain ManagementCapacity ConstraintsCapacity Constraints Real-Time Real-TimeSchedulingScheduling Source: Adopted from e-Business: Roadmap for Success, Dr. Ravi Kalakota and Marcia RobinsonLast Updated: 01/17/01Source: Rayport & Jaworski (2001) Copyright 2000 by Marketspace LLC 22. Exhibit 9-11: Overview of Basic Internet E-Business ArchitectureSeller Buyer Storefront System Back-Office System Web Catalog Web Commerce Server Source: Adapted from E-Business Technology Forecast (1999), published by PricewaterhouseCoopers Technology Centre, Menlo Park, CAInternetOrder ProcessingOrder Processing Fulfillment System Fulfillment SystemBankPayment Payment Accounting System Accounting System Gateway Gateway Enterprise Firewall Enterprise FirewallLast Updated: 01/17/01Source: Rayport & Jaworski (2001) Copyright 2000 by Marketspace LLC 23. Comparison of Market Opportunity AnalysisOld Economy New EconomyCompetition Within industries Within & AcrossindustriesCompetitorSlowerRapiddevelopment speedCompetition between Companies Alliances ofcompaniesConsumerEstablished Being definedbehaviour patternsValue ConfiguredBeing rapidlychain/systemreconfigured 24. Distribution and logistics have been evolving rapidlyTrends include:GlobalizationIncreased competitionFalling distribution and logistics costsIncreased outsourcingConsolidation among businesses involved indistribution and logistics activities (transportand storage) Full service logistics solutionsIncreasing integration of distribution andlogistics into value chains 25. Implications:Shorter order cyclesDemands for smaller, more frequent, more reliabledeliveriesMore varied delivery patterns related to product shelf-life, product customization, production and retailingstrategies and the reliability of short-term forecastingCloser relationship between customer and logisticservices suppliers, often with fewer suppliersOutsourcing of logistics to third party logisticsmanagers, allowing firms to share distributionfacilitiesGreather use of recycling and managed disposal,which has resulted in additional back-haul cargoes(i.e. reverse logistics)