4. Prepared and Presented by Prashant P Jani
1 -
4
What’s my return on investment
on e-commerce?
Are you crazy? This is the
Columbus of the New World.
What was his ROI?
- Andrew Grove, Intel Chairman
5. Some Numbers 1/2
The online retail industry is
expected to touch INR 7000 crore by
2015 (from current INR 2000 crore)
The annual growth of online
transactions is 50% every year
Over 65% of Mumbai population
and 45% of Delhi Population shop
online
Prepared and Presented by Prashant P Jani
1 -
5
6. Some Numbers 2/2
By June 2010, More than 99 million
businesses worldwide had dotcom
Internet sites registered
The Single’s Day (November 11, 2011)
created a history for China’s online
businesses with 10 million orders
Thailand online shopping trends show
a rise of nearly 60%
Many Fortune 500 companies now
have Facebook pages
Prepared and Presented by Prashant P Jani 1 - 6
7. Value Chain - Primary
In-bound
Operations
Outbound
Marketing/Service
Prepared and Presented by Prashant P Jani
1 -
7
8. Value Chain – Secondary
Prepared and Presented by Prashant P Jani
1 -
8
HR
Purchase
Finance
Legal
10. Web and Competitiveness
The Internet has affected the five
forces by
◦ Lowering entry barriers for new firms
◦ Creating substitutes for traditional
businesses (Stock trading and music)
◦ Creating new markets that change the
way buyers and supplies interact
Amazon.com has no physical stores and
hence a smaller infrastructure which is
easier to manage
Prepared and Presented by Prashant P Jani
1 -
10
11. Business Today
Manufacturing
and production
Accounting and
finance
Engineering
and
research
Supply chain management:
procurement, distribution, and
logistics
Customer relationship
management: Marketing,
Sales, Customer Service
1 -
11Prepared and Presented by Prashant P Jani
12. The Challenges of Change
Within organizations
Organizational structure
Interorganizational relations
The economy
Education
National development
Prepared and Presented by Prashant P Jani
1 -
12
13. Metrics for Business Impact
Market share
Number of markets in which a
firm participates
Number of new markets
Sales growth
Size of the average sale
Sales per employee
Prepared and Presented by Prashant P Jani
1 -
13
14. Lean and Agile Manufacturing,
Mass Customization
The Dell Model
◦ Phone and Internet orders
◦ Little or no in-process inventory
◦ No finished goods inventory
◦ Purchasing agreements with
companies, universities, and
government agencies
Customized Web ordering pages
Prepared and Presented by Prashant P Jani
1 -
14
16. Dell’s Inventory Turnover
Data
Year Inventory Turnover Week's Inventory
1992 4.79 10.856
1993 5.16 10.078
1994 9.4 5.532
1995 9.8 5.306
1996 24.2 2.149
1997 41.7 1.247
1998 52.40 0.992
1999 52.40 0.992
2000 51.4 1.012
2001 63.50 .819
Prepared and Presented by Prashant P Jani
1 -
16
17. The Impact
Will increase the size of the
‘manageable’ span of control for
managers by decreasing the costs
and difficulties of information
handling (and thus reducing the
costs of coordination)
Prepared and Presented by Prashant P Jani
1 -
17
18. The Impact
The more efficient automated systems will
eliminate the need for many decision makers
But it will also generate the need for managers
who will be more nearly of the system designer
than the system operator
In this new role, the manager’s capabilities will be
greatly extended both by quality of information
available to him and by the versatility of the new
tools for decision making.
He will be more concerned with studying how he
can best structure his company to its environment
and thus improve its competitive posture
competitive posture
Prepared and Presented by Prashant P Jani
1 -
18
