102 e-business model - 20 cases - v6.8 - update 9 jan 2014

30 E-Business Models
Analysis
By Dr. Nguyen Van Thoan

ECOM & MIS & EMARK
Think big, Start small, Action Fast

30 CASES
Think big, Start small, Action Fast

CLC.K49.TMAE306.2
Ecommerce Stories
• Day 4 – Chapter 2: Ebusiness Model
• 8 key elements of Ebusiness model
• 20 top stories about Ecommerce (success and
failure)
• How many ways to sell online?
• Guide Case for Presentation (See Forum).
• Chapter 2 - Quiz

E-Commerce – CTTT, CLC, FB
8 Key Elements of a Business Model
1. Value proposition
2. Revenue model
3. Market opportunity
4. Competitive environment
5. Competitive advantage
6. Market strategy
7. Organizational development
8. Management team
E-Commerce - Dr. Nguyen Van Thoan
8

E-Business Model
• What can you tell us about Facebook & what can we
learn from this e-business model?
800/955 million
active users
3rd size only
after Google
and Yahoo
New kind of e-commerce

“Social e-com”
Largest: search
engine, content, ad
Loser
58035 mio
networks 500 shareholders 2006: Yahoo offer to
buy 1 bio
2012: Value 104 bio
2011: Value 50 bio
2007: MS buy 1,6%
stake (240 mio)  15
bio
February 4, 2004
Rev: 3.71 billion (2011)
May 14, 1984
Buy
Disney
ticket
12% of top
Internet retailers
Ads –
what,
locations,
preference,
behavior…

Lessons from this case
May 14, 1984 1. Idea  Software
2. Programming as core competency
3. INVESTOR
4. Strategy Market
5. Competition
6. Community
7. New application
8. INFRASTRUCTURE
http://www.youtube.com/ecomftu2012

Behind the scene?
May 14, 1984 History
http://www.youtube.com/watch?v=sffGo3GAMIQ
Data Center
http://www.youtube.com/watch?v=Y8Rgje94iI0
Data Center 2
http://www.youtube.com/watch?v=nh0xEhxx4zk
http://www.youtube.com/ecomftu2012

E-Business Model
• What can you tell us about Amazon.com & what can we
Software
development center
World largest
130 publishers
300.000 books
 2 millions
2005: World’s
3largest Linux DB
25 HP servers
Amazon
technology
CRM & ISM
See Turban, 2012, EC, page 100 & 546
KEYS: size – innovation –
personalization – service quality
Founded: 1994
Rev: 48.07 billion (2011)
Net income: 631 mio
Employees: 69.100
Books
Ebooks
Digital
Third
Parties
---
2003
Change Biz model: OWN
inventory and logistics
Suggest
box
Fulfillment &
waehouse center
Gift ideas
Web fulfillment
contractor for
Target
2 bio
Ware house
Leaders in
WH mgmt
Automation
Packaging
Inventory
mgmt

Lessons from this case?
1. Biggest online store (FIRST)
2. Make the products find customers
(SMART IDEA)
3. Lower prices (MARKETING)
4. Creative marketing techniques
(Customer comments, reviews, product
recommendations and cross selling,
etc…) - SMART
5. New technologies to reduce labor costs
6. A shop that sells everything

Lessons from this case?
1. Supporting products
2. Personalized customer services
3. Outsourcing strategy (Supplier)
4. Customer services and branding
5. Customer loyalty
6. Inventory management (New
strategies)

Behind the Scene?
Jeff Bezos talk
http://www.youtube.com/watch?v=-hxX_Q5CnaA
Jeff Full Speech
http://www.youtube.com/watch?v=YlgkfOr_GLY
Distribution Center
http://www.youtube.com/watch?v=bfFsqbIn_3E
Youtube channel
http://www.youtube.com/user/amazon

Discussion – Star time!
• What are the key factors
for a successful website?

What are the key factors to a successful website?
• Loading time
• Easy to read
• One click to reach important thing
• Good interface
• Good background music
• Fast and secure payment
• Good SEO
• Cookies and checking customer behaviors
• Good design and structure of the website
• Social network
• Updated and precise information
• Good security
• Target market and segmentation

Dell Computer – Michael Dell
Dell World 2012 - Michael Dell’s Speech
http://www.youtube.com/watch?v=5OqQq14d-dE
Youtube Channel
https://www.youtube.com/dell

Wikipedia
History 1
http://www.youtube.com/watch?v=gXD1TRGafQ0
History 2
http://www.youtube.com/watch?v=oVFPW0r4jWk
Writer
http://www.youtube.com/watch?v=3Knv6D6Thi0

See Laudon, 2012, EC, page 759
E-Business Model
What can you tell us about Volkswagen
what can we learn from this e-business model?
90%
Global
Purchases
60 online
applications
RFQ, contract,
catalogue, order,
payments…
3rd largest car manufacturer
producing: 7.29 million cars
Rev: 175 billion USD (2010)
Brand: Volkswagen, Audi,
Bentley, Bugatii,
Lamborghini… Porche
(2011)
390.000 employee
WEBSITE
36,000 suppliers
110,000 users
Online catalogue: 2.5
million itesm
From 590 global
suppliers
14.200 internal
users
2010:
3.000 online
contracts – value:
16.6 billion USD
61 plants – components,
automotive parts… 60% rev – 100
billion/year
VWGroupSupply.com
Private procurement portal
B2B network
Vs.
Covisint
Ford, General Motors,
Daimler Chrysler
ECAP (e-capacity
management)
Material requirements
400 suppliers
4.000 critical parts
Volkswagen means "people's car"
pronounced [ˈvɔlksˌ v aːɡən]
2000: 1.500
2012: 200
B2B marketplace
http://www.youtube.com/user/Volkswagen

Brick & Click See Turban, 2012, EC, page 143
http://www.youtube.com/user/Walmart
E-Business Model
What can you tell us about Walmart
what can we learn from this e-business model?
2002
Online order, help
desk
1 million products
online
Selling songs online
2006: rebuild
website – 4 clicks
2007: Site to Store
Rank 2nd to Amazon
Link to Facecbook
Largest retailer in the world
Rev: 405 billion (2010)
2.1 million employees (1.4 U.S.)
8.700 stores (15 countries)
Low prices
Online: 1996 – difficult
2002: improvement
WEBSITE
About Walmart.com
Target: 25.000 USD income
Online: 60.000 USD
Partner with AOL
Internet connection
Walmart
Technology
Sam Walton
(1918 – 1992)
Started in 1962
7 Bill Gates
Michael Dell
Jack Welch
IT as White
House

Brick & Click See Turban, 2012, EC, page 143
http://www.youtube.com/user/Walmart
E-Business Model
1. selling shoes online
4. ShoeSite to
Zappos
"zapatos,"
"shoes"
Zappos has ten core values billion
5. Critical success factors:
- Large selection
- Fast delivery
- Positive culture
- Customer service
8.
BRAND
* successful with
shoes
* leverage into
other products.
2. footwear in the US is a 40
billion dollar market
5% = mail order
3. Investment
500.000 USD
6. Amazon?
leverage its supplier
relationships, while
maintaining a
separate brand.
9. Order fulfillment
- large warehouse of products
- fast delivery
7. “WOW”
* customer experience
* huge selection
* excellent service
November 2009
Amazon buy for a
reported $1.2
Sub of Amazon.com
Retail
1999
Nevada, United
States
Nick Swinmurn,
founder
Products Shoes,
handbags, eyewear,
accessories, apparel
Revenue US$1 billion
(2009)
Website zappos.com

Alibaba.com
Subscription fee: 250  3.000 USD/year
1-22
E-commerce: Marketplace, B2B portal
1st, leader, China firms ? What else?
Finding Buyer & Sellers
Adversiting products & services – 2 million
businesses
US ? superpages
EU ? europages
Japan ? Vietnam ?
Market strategy: one to one service?
Competitive: local, free, trade promote org?
Millions of China, US, EU, other firms
Management TEAM?
Jack Ma & 17 in 1999
79 million registered users
240 countries
March 31, 2012.
‘Open, Sesame,’

Alibaba.com
(advanced)
Website design? Server, software, security?
Valur for Seller?
Services for Paid MEMBERS?
Copyright © 2012 Pearson Education, Inc.
Publishing as Prentice Hall
Value for Buyers?
Communication?
CRM: Customer Relationship Management?
https://www.youtube.com/user/teamalibaba?feature=results_main

Boeing.com
Where are we?

Boeing.com
1. World largest
2. Revenue from B2B NOT concern
3. Concern: customer service !!!
Founded: Seattle, Washington, US (1916)
Founder(s): William E. Boeing
Revenue: US$ 68.735 billion
Operating income: US$ 5.891 billion
Profit: US$ 4.018 billion (2011)
Employees: 174,225 (June 28, 2012)
PARTS
Single point
Maintenance SERVICE
Intermediary: supplier – airlines
ONE-STOP SHOPPING
Mechanic  BOEING  Producer
EDI  Internet: normal PC, connection
http://www.boeing.com/commercial/747fa
mily/pf/pf_facts.html

Boeing.com
1996: PART online
50% of customers
½ million inquiries first year
Founded: Seattle, Washington, US (1916)
Founder(s): William E. Boeing
Revenue: US$ 68.735 billion
Operating income: US$ 5.891 billion
Profit: US$ 4.018 billion (2011)
Employees: 174,225 (June 28, 2012)
PARTS
Single point
Maintenance SERVICE
Intermediary: supplier – airlines
ONE-STOP SHOPPING
Mechanic  BOEING  Producer
EDI  Internet: normal PC, connection
http://www.boeing.com/commercial/747fa
mily/pf/pf_facts.html

Boeing.com
Practice Assignment: Create an account on YOUTUBE – advertising channel

E-Banking Solutions?
• What can you tell us about Facebook & what can we
800/955 million
active users
Industry Banking Software
Founded: Geneva, Switzerland
Products TEMENOS T24
Insight: TEMENOS COREBANKING (TCB)
Revenue: $914 million
Employees: 4,500
CORE BANKING COMPARISON Core banking
http://www.inntron.com/core_banking.html
Temenos hiện đang là đối tác chiến lược
của các ngân hàng ở Việt Nam như:
Techcombank, Military Bank, Sacombank,
Sea Bank, VP Bank, Global Bank…
VIDEOS
http://www.temenos.com/products/t24/#

Joomla - VirtueMart
Channel
http://www.youtube.com/watch?v=gXD1TRGafQ0

UPS
• DIAD - Delivery Information Acquisition Device

Google
• Google – Data Center

Salefoce
• Online Services (Cloud)

ESPN
• Online news and digital content

REI
• CRM – Understand customers

Suzuki - Oracle
• Enterprise Database

MS – Dynamic CRM

Sino Steel – ERP

Groupon

Ford – Auto Exchange
• B2B marketplace

IBM - Watson
• Intellectual Machine?

Alfresco
• Open source Document Management

Loreal - KM
• MS Sharepoint

Fresh Direct
• Online Grocery

IBM – BPM
• Business Process Management

Building an E-commerce Site:
A Systematic Approach
VViiddeeoo lliinnkkss
 Amazon.com – Warehouse robots
 http://www.youtube.com/watch?v=Abvdd9UdBus
 Amazon.com – UK order fulfillment
 http://www.youtube.com/watch?v=gk5-blcvF9E
 Amazon.com – Jeff Bazoz interview
 http://www.youtube.com/watch?v=pVp6WqS7L0M
 Amazon.com – Order Fulfillment by A – FBA
 http://www.youtube.com/watch?v=jVVa83MnvdY
Copyright © 2012 Pearson Education, Inc. Slide 4-53

 Tommy Hilfiger
 http://www.youtube.com/watch?v=POb10N4GSV0
Catalogue:
 Photo
 3D
 Virtual model
 Video – youtube (embed)

 Future supermarket
 http://www.youtube.com/watch?v=VykB2pVW_wg
 Future Retails in details
 http://www.youtube.com/watch?v=EX5d-aOdk7A
 Online shopping concepts
 http://www.youtube.com/watch?v=GAyvTVQdXqc
 Future model for Retail
 http://www.youtube.com/watch?v=f0gQP8ktmSA

http://www.youtube.com/user/tommyhilfiger

Case: Tommy Hilfiger
World best
premium life
style brands
Target: 18-35
Online store since
2000 - catalogue
Online sale: 2004
2006: more than
online sale – more
interactive
Founded in 1985 by
Tommy Hilfiger
Casual clothing
1.000 stores
2010 bought by,
owner of Calvin
Klein, for 3 bio
USD
Tommy.com
Founded in 1985 by
Tommy Hilfiger
Net income: 1.6 bio
(2009)
Outsouce?
VP: Ecommerce
LOOK and
FInEcreEasLe: 30%
s2a0le1s0-2011: Facebook – 1,7 mio
LIKEs

Case: Tommy Hilfiger - website
In business: 5
years – has
brands
A website everyone
can be proud of!
Cool stuff on that!
No new IT for
Ecommerce Look & Feel
ATG as solution
provider –
specialized in
ecommerce
State of the Art
No infrastructure,
no software, no IT
staff
360 degree views
Compate
Suggestions
Read comments
Specific cut and
rise
Mobile version
Smart phone
purchase
Facebook: 1.7 mio likes
iPhone apps
Virtual Fitting ROOM

30 IT Applications

Why E-Commerce is NOT Easy
Business Management Manufacturing Service
System A&D Project Management Ecom, Emark, MIS - Management
Hardware
Computer
Super-computer
Data center
Software
Networking
Programming
Server App development
Web devpt
Security
Cisco – CCNA - CCNP

IT Applications
Costs vs. Benefits

IT Applications
20
E-Marketing
techniques/skills

10 Applicable Rules in IT

Pareto noticed that 80% of Italy's land was
owned by 20% of the population
richest 20% of the world's population
controlling 82.7% of the world's income
Even if we take the ten wealthiest individuals
in the world, we see that the top three (Carlos
Slim Helú, Warren Buffett, and Bill Gates) own
as much as the next seven put together
•80% of your profits come from
20% of your customers
•80% of your complaints come
from 20% of your customers
•80% of your profits come from
20% of the time you spend
•80% of your sales come from
20% of your products
•80% of your sales are made by
20% of your sales staff
80% of your sales come from 20% of your clients
20/80
rule
(1848 – 1923) (1904 – 2008)
http://en.wikipedia.org/wiki/Pareto_principle
For example, Microsoft
noted that by fixing the
top 20% of the most
reported bugs, 80% of the
errors and crashes would
be eliminated

80% of your sales come from 20% of your clients
20/80
rule
(1848 – 1923) (1904 – 2008)
http://en.wikipedia.org/wiki/Pareto_principle
For example, Microsoft
noted that by fixing the
top 20% of the most
reported bugs, 80% of the
errors and crashes would
be eliminated
The "90–9–1" version of this rule states
that 1% of people create content, 9% edit or modify
that content, and 90% view the content without
contributing.
that 20% of a group will produce 80% of the
activity

8 Keys to Success
1. Passion (do it for love, not for money)
2. Work
3. Good
4. Focus
5. Push
6. Creative/idea – Think
7. Serve/share/Sacrifice
8. Persistence 8

8 Keys to Success
1. Quan hệ (duệ)
2. Tài nghệ
3. T… tệ
4. H…. đệ
5. Công nghệ
6. ….
7. gEne
8. hEalth ieMBA.b03 (gu/sai/rai/tai) 8

4 types of RICH 4

Day 1 – Introduction of Ecommerce
• 10 notes for the Course
1. Combination of Offline class & Online course
2. Ecommerce (IT application in Commerce, Business &
Management)
3. Minimum requirements: IT, Ecom, Emark, MIS basic
understanding & using computer
4. Class participation: Read, Listen, Speak, T/W
5. English improvement & Knowledge/Skills

Day 1 – Introduction of Ecommerce
6. Web: http://elearning.ftu.vn
7. Textbook: Ecommerce (Laudon, Turban – 2012)
8. Group work: website (4-5)
9. Individual: case presentation (2) – Telling stories!
10.Assessment: 10/30/60
- Quiz: 10%
- Group/Website: 20%
- Midterm: 10%
- Individual: 20%
- FINAL: 40%

Q1. What is electronic commerce?
What is electronic commerce
Differentiate E-Commerce & E-Business
Find 2 examples to illustrate Ecom & Ebiz

Q2. What are the two key benefits of EC?
When top managers/directors consider
implementation of IT application (or
Ecommerce, Ebusiness application), what are
the TWO most important things they need to
know?

TMA.306E.1 - Clips
Ecommerce
Future of retail

TMA.306E.1 - Discussion
Trial fee
paid test
online
Find an example of Ecom/Ebiz around you
SMS Banking
E stock
Email marketimg
Website design
service
Alibaba.com E-conference
Ecommerce
Online shop
selling books
Elearning
ATM
Internet
banking
Vinatour.co
m.vn
Real estate
online
advertising
Megastar
E-ticket
(Airlines)
Advertise on
fb
Muachung
appstore
Toeft.com
E-document on
violet.com
Game online
(Zing)
Hotel booking
Ebay online auction
Google
store
Mobile marketing on
mobile application
tiki.vn
IKea
Newspaper subscription
Selling &
buying
copy right
Buying
clothes
online
Unlock
iPhone
online
Vov.vn
Banner
advertising
Online booking
Buying domain
emedical

TMA.306E.1 - Discussion
Benefits of Ecommerce?
Faster Competitive
price
Better
information
Ecommerce
Gain more customers
Recorded Find products
easily
Lower Costs
Reduce
travel time
Easy customers’
feedback
Overcome
geographical
limitations
24/7 stores
more freedom
Increase profit/sales
No need physical offices
More Flexible
Global access
Less HR
Less
inventory

Day 1 – MIS (Ecom, Emark) – K51CTTT
1. Combination of Offline class & Online course
2. MIS (IT application in Commerce/Business &
Management)
3. Minimum requirements: IT, Ecom, Emark, MIS basic
understanding & using computer
4. Class participation: Read, Listen, Speak, T/W
5. English improvement & Knowledge/Skills

6. Web: http://elearning.ftu.vn
7. Textbook:
Information Systesm Today 4th Edition, Valacich, 2010
(paper copy)
Management Information Systems 12th Edition, Laudon,
2012 (ebook)
6. Group work: website (4-5)
7. Individual: case presentation (2) – Telling stories!
8. Assessment: 10/30/60
- Quiz: 10%
- Group/Website: 20%
- Midterm: 10%
- Individual: 20%
- FINAL: 40%`

• 10 Practice
1. Word, Excel, Power Point
2. Computer hardware, software
3. Online applications
4. Ecommerce skillls: website, selling online
5. Emarketing skills: youtube, email
6. Group/Website: 20%
7. Midterm: 10%
8. Individual: 20%
9. FINAL: 40%

Q1. Who is CIO?
Who is CIO?
What are the roles/responsibilities of CIO?
Find one CIO of a
company/organization/country.
FSB - Q2 - Who is CIO and The Roles of CIO in
an organization?
Find a typical CIO in an organization, company,
industry or even country. Tell smt about his or
her roles and resposibilities in IT application.

Q1. Who is CIO?
What are the roles/responsibilities of CIO?
CEO
COO CFO
CBDO-CMO
CTO CSO
CAO CCO
CPO
CHRO
CVO
CDO
CIO
CSO CNO CLO

Q2. What are the two key benefits of IT
application in organization (biz, mag,
prod)
When top managers/directors consider
implementation of IT application (or
Ecommerce, Ebusiness application), what are
the TWO most important things they need to
know?

Q2. What are the two key benefits of IT application in
organization (biz, mag, prod)
portable Cheaper
Expand
capacity
Better
systematic
secure
automated
Updated
entertained
Labour-saving
Accurate
More
efficient
Maintain quality infomation
Globalizat
ion
More
competitive
multitask
organised
Time-saving
Good
analysis
Faster updated
24/7
Work
performance
Support
decision-making
process
More
convinent
Future
investmemt
Cost reduction
Increse revenue

102 e-business model - 20 cases - v6.8 - update 9 jan 2014

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102 e-business model - 20 cases - v6.8 - update 9 jan 2014