1、IntroductionConcentration on strategic issues will preventthe elaboration of the first three topics in thischapter.E-business exerts great influences on thebusiness model and the strategic aspects of theorganization.We should incorporate e-businessinto our analysis in the exam if necessary,especiall
2、y when five-forces model and valuechain are applied.1 Principles of e-businessE-business is the transformation of key businessprocesses through the use of Internettechnologies.E-business VS E-commerceDistinctive features of e-businessMotives to adopt e-businessThe motives can be analyzed with regard
3、 toenvironment,capability and stakeholders expectations.Benefits of e-businesscost reductioncapabilitycommunicationcontrolcustomer servicecompetitive advantageBarriers to e-businessCountry,the ability to access to internet.economic issues,cash or credit buying.Culture,conservative or not.organizatio
4、nal type2 Organizations and their customersVarieties of e-commerce:B2B,B2C,C2B andC2C.Channel structure will be changed by internet.Disintermediation,such as Dell computers.Reintermediation,for example,Amazon is replacing thetraditional intermediaries.New types of intermediary,search engines like Go
5、ogleCountermediationBusiness models for e-commerceRappa identifies nine generic business model:Brokerage modelAdvertising modelInfomediary modelMerchant modelManufacturer modelAffiliate modelCommunity modelSubscription modelUtility model4 IT and strategyMegatrends resulted from e-commerceNew distrib
6、ution channelsShift of power to customersGrowing competitionAn acceleration of pace of businessTransformation of businessAdd value to a wider environmentKnowledge as a strategic assetOrganizations can visualize changes atthree interconnected levels.Level 1-the simple introduction of newtechnologyLev
7、el 2-reorganizationLevel 3-re-positioning of the organizationBuilding an e-commerce strategyE-commerce strategies should be justified interms of suitability,acceptability andfeasibility.Suitability:e-commerce strategy should beconsistent with the general strategy.Acceptability:distributors are parti
8、cularlyimportant here.Feasibility:financial and resource feasible.Strategy process model for e-businessKnowledge building and capabilityevaluationDevelop a comprehensive e-businessdesignE-business blueprintApplication development and deploymentStage modelsRichard Nolans model:Initiation stageContagi
9、on stageControl stageIntegration stageThe initial model was adjusted:Data administration stageMaturity stageRayport and Jaworski suggest a four-stagemodel of the evolution of Internet-basedB2B e-commerce:EmissionInteractionTransactionCollaboration5 Supply chain managementA traditional supply chain i
10、s based on pushmodel,which is very product-centric.Driven by e-commerces capabilities toempower clients,many companies are moving toa customer driven pull model.E-commerce creates a much more efficientsupply chain that benefits both customers andmanufacturers.In reality,a supply chain is a hybrid of
11、 bothmodels.For example,in Dell,the inventorylevels of individual components aredetermined by forecasting general demand,but final assembly is in response to aspecific customer request.Impact of IT on the value chainInbound logistics.MRP and JITOperations.CIM and ERPOutbound logistics.Track the prog
12、ress ofdeliveryMarketing and sales.EPOS.Service.Customer databaseProcurement.EDITechnology development.CADHuman resource.Skills database.Taking advantage of ITPorter and Millar advocate five steps seniorexecutives may follow to take advantage ofopportunities created by IT:Assess information intensit
13、yDetermine the role of IT in industry structureIdentify and rank the ways in which IT can createcompetitive advantageInvestigate how IT spawn new businessesDevelop a plan to exploit ITBanking,airlinesFashionOil refiningCementLowHighHighInformation intensityof the value chainLowPorter and Millars inf
14、ormation intensity matrixInformation content of the productIf the information content of the product ishigh,Internet can be employed to exhibit theproduct,thereby enhancing the productdelivery.For the segment where the informationintensity of value chain is high,IT mayimprove the efficiency,for exam
15、ple,thelinkages will become smooth.When both information content andinformation intensity are low,IT mayfacilitate the automation of business.6 Restructuring the supply chainVertical integrationVertical disintegration means that variousdiseconomies of scale and scope have broken aproduction process
16、into separate companies,each performing a limited subset of activitiesrequired to create a finished goods,For example,filmed entertainment was brokeninto small fragments after World War.Virtually integrated company is one where corebusiness function,as well as non-core businessfunctions take place i
17、n external organizations,such as NIKE.SuppliersManufacturingCustomersTwo kinds of integrationDelivery integrationInformation integrationE-business is increasing the pressure forsupply chain responsiveness in three ways:Increased competitionIncreased volume and speed of dataMore demanding customer re
18、quirements6 E-procurementThe benefits of e-procurementCost reductionsReduced inventory levelsWider choice of suppliersImproved manufacturing cyclesIntangible benefitsBenefits to suppliersRisks of e-procurementControl,unauthorized ordersOrganizational risk,failure of implementationData securityManage
19、ment loses spending controlSupply chain problemsSummarySeveral stage models are proposed to evaluatethe maturity of capability,then to guide the ISdevelopment with businesses.IS will shape the value chain and value network.The influence can be assessed based on theinformation intensity of value chain andinformation content of products.Supply chain management options can beportrayed as a continuum from vertical integrationand virtual integration.
