eEducation
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The document discusses the concepts of eBusiness and how it has evolved from static websites for marketing to more complex implementations that integrate business processes. It defines eBusiness as the strategic use of digital technologies to accelerate organizational goals through continuous optimization of value propositions. It also discusses different models for business-to-business and business-to-consumer ecommerce interactions and how value chains are shifting to value networks in the digital economy.
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eEducation
- 1. eBusiness Discussion Document “ Introduction/Education”
- 2. Hierarchy of Web Interactions Start ‘Simple’ and evolve to support strategy Complexity of Implementation Business Value Provided Marketing presence Static pages; searchable site One-way communication Extend to more customers Simple Secured access for external partners Exchange information with customers Multimedia; Database applications Interactive Link business process within supply chain Integration with internal systems Administrative automation Financial transactions Collaborative environments Integrative
- 3. eBusinesses Concepts What Is eBusiness?
- 5. eBusinesses Concepts CRM & Marketing 1/1
- 7. eBusinesses Concepts CRM & Marketing 1/1 Customer Needs Customers Acquire New Customer Relationship Retain and Enhance Customer Relationship Mass Mar keting 1 / 1
- 8. eBusinesses Concepts Web Pages?
- 12. eBusinesses Concepts Hubs, Portals?
- 17. eBusiness Concepts Vertical versus Horizontal eServices Source: Kellogg ebusiness
- 18. eBusinesses Concepts B2C Versus B2B?
- 19. eBusiness Concepts B2C Versus B2B B2C Connecting consumers to information, products, and services they want. Amazon, eTrade, NetFlowers, Mp3 B2B Improving the efficiency of buyer-seller transactions in business markets Cisco, TNTLogistics, e-steel, Dell, e-stamp
- 23. Survival In The Net Economy Requires . . . Vision Agility Speed Innovation Customer-Focus
- 24. Value Chains Move to Value Networks Value Chain Your Company e Alliance Customer Customer Customer Customer Customer Supplier Supplier Supplier Supplier Supplier Suppliers Customers Networked Value Web e Market Suppliers Customers Your Company
- 28. Redefining the Value Chain Producers and Verticals in the Agriculture Industry
- 33. Common Themes 4 Speed is essential!!! “ Internet Time” It’s not about technology, It’s about business!!!!
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- Pure speed. Interactions and transactions can occur instantly. New products and services can appear, gain market share, and cannibalize their predecessors in a matter of days. Business processes and decision-making must accelerate to “Web time” simply to remain competitive; eBusiness customer don’t tolerate delay. Total access. The Internet obliterates the limits of geography, time, and market reach. Every business and millions of individual consumers are on line. An electronic business can operate 24x7 around the world. Low cost. The economics of electronic transactions are vastly different. There’s less “friction” in connecting buyer with seller and much less overhead in completing transactions. In banking, for example, transaction costs have been reduced for $.70 - $.85 /transaction to $.03 - $.05. Customer control . The customer controls the interaction with suppliers and can readily comparison shop. For many retail sales, the point of transaction shifts from the seller’s store to the buyer’s laptop. Sophisticated buyers demand – and receive – highly personalized and customized products and services. No barriers . Entry barriers have “virtually” disappeared. Small, agile, innovative competitors can design themselves as eBusinesses and grow very fast. Mere size carries less weight. Companies with bricks and mortar and established brands enjoy advantages, but nimbleness isn’t always among them. Interdependence. In electronic markets, all the players in a value chain are interconnected, and the information flow and business processes spanning them must be seamless. A company’s performance relies on that of its many close business partners. Proliferation of business models. There’s no limit in sight to the number of ways to play in electronic markets. We see disintermediation as the inefficiencies of middlemen are squeezed out, and reintermediation as companies launch value-adding brokering services.
- What have well established firms done? A few successes and contrasting examples which we will discuss; but in general a lot of analysis, with little action stemming from it as the market changes fast, and the resistance to change grips the existing leadership. Few firms are self starting, most of them needed an event to take action. There is a lot of complacency, and much denial and explanation of why the bulk of the eBusiness world doesn’t really apply to them: “ this is a complex industry, you need scale to enter” pharmaceutical distribution - oops drugstore.com “ we are the dominant player with close customer relationships, steel isn’t like consumer products” - steel - oops eSteel “ we are business to business (or professional) , not retail/consumer” oops, Pfizer Zoloft eCommunity, Reuters, Any medicalInfo.com, most manufacturers... The new players are more than ever looking to solve customer's problems as selflessly as ever before. This type of approach leads to rapid market learnings that help them discover new opportunities and business models. Most firms that have taken action find unexpected benefits that are usually well beyond their initial expectations.