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Questions and Answers
What is the primary focus of the corporate or enterprise level in a firm?
What is the primary focus of the corporate or enterprise level in a firm?
Which of the following strategies focuses on making products unique to stand out in the market?
Which of the following strategies focuses on making products unique to stand out in the market?
Which issue is NOT considered important when analyzing the supply chain or industry value chain level?
Which issue is NOT considered important when analyzing the supply chain or industry value chain level?
What does the cost strategy primarily focus on in a competitive context?
What does the cost strategy primarily focus on in a competitive context?
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How does commonality in e-business platforms benefit firms?
How does commonality in e-business platforms benefit firms?
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Which competitive strategy is characterized by competing in global markets rather than local ones?
Which competitive strategy is characterized by competing in global markets rather than local ones?
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What organizational challenge is presented by having different applications for the same functionality within a firm?
What organizational challenge is presented by having different applications for the same functionality within a firm?
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In the changing competitive agenda, what is emphasized as a top priority for businesses?
In the changing competitive agenda, what is emphasized as a top priority for businesses?
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What does Porter's five forces model primarily assess?
What does Porter's five forces model primarily assess?
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Which of the following is a key focus of the resource-based view (RBV)?
Which of the following is a key focus of the resource-based view (RBV)?
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What primary question does transaction cost economics (TCE) address?
What primary question does transaction cost economics (TCE) address?
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In e-Business strategy implementation, which factor is not part of program management?
In e-Business strategy implementation, which factor is not part of program management?
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What is a major difference between Total Quality Management (TQM) and Business Process Reengineering (BPR)?
What is a major difference between Total Quality Management (TQM) and Business Process Reengineering (BPR)?
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Which of the following strategies would best address technology interoperability issues in e-Business?
Which of the following strategies would best address technology interoperability issues in e-Business?
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What is a critical consideration for management when deciding whether to outsource an activity?
What is a critical consideration for management when deciding whether to outsource an activity?
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What is a primary goal of strategic positioning in an organization?
What is a primary goal of strategic positioning in an organization?
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What is the primary purpose of Customer Relationship Management (CRM) systems?
What is the primary purpose of Customer Relationship Management (CRM) systems?
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Which of the following best defines Supply Chain Management (SCM)?
Which of the following best defines Supply Chain Management (SCM)?
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What challenge do e-Business applications face on the sell side?
What challenge do e-Business applications face on the sell side?
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What role does Knowledge Management play in e-Business?
What role does Knowledge Management play in e-Business?
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How does the Internet facilitate e-Business compared to traditional networks?
How does the Internet facilitate e-Business compared to traditional networks?
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Which of the following processes is part of internal or back-office processes?
Which of the following processes is part of internal or back-office processes?
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What is a key characteristic of e-Business?
What is a key characteristic of e-Business?
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What is the role of Enterprise Resource Planning (ERP) systems?
What is the role of Enterprise Resource Planning (ERP) systems?
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What is the definition of e-Market?
What is the definition of e-Market?
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Which aspect of e-Business allows for dealing with customer interactions directly?
Which aspect of e-Business allows for dealing with customer interactions directly?
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What is a significant benefit of integrating external company processes?
What is a significant benefit of integrating external company processes?
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Which challenge might organizations face regarding technology interoperability in e-Business?
Which challenge might organizations face regarding technology interoperability in e-Business?
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What is the primary focus of the buy side in e-Business applications?
What is the primary focus of the buy side in e-Business applications?
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What is a characteristic of collaborative planning in e-Business?
What is a characteristic of collaborative planning in e-Business?
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Study Notes
Chapter 1: The World of E-Business
- E-commerce is the buying and selling of information, products, and services using computer networks, usually the World Wide Web.
- E-business is the conduct of transactions using electronic communications networks, including the internet and/or possibly private networks.
- E-business is more comprehensive than e-commerce, encompassing not just buying and selling but also business processes and interactions with partners, distributors, and suppliers.
- E-commerce types include business-to-consumer (B2C), business-to-business (B2B or e-business), business-to-administration (B2A) and consumer-to-administration (C2A).
- B2B transactions usually account for a significantly larger percentage of overall e-commerce activity than B2C transactions.
- Online business is enabled by the internet, facilitated by large-scale connectivity and global inter-network connections, reaching a vast number of trading partners.
- The world wide web (WWW) is a major component of internet-based e-business, with rapidly increasing company advertising, information searching, buying and selling of various goods (intellectual property, physical goods, and professional services) playing crucial roles.
Complex Definitions
- E-commerce is viewed differently from different perspectives.
- From a business process perspective, it is the use of IT and communications for supporting and automating business transactions and workflows.
- From a service perspective, it is a tool to reduce service costs and improve service quality and speed of delivery.
- From an online perspective, e-commerce facilitates buying, selling, information, goods, and services through the Internet and other online services.
Types of e-Commerce
- Business-to-consumer (B2C) e-commerce transactions occur between organizations and individual consumers.
- Business-to-business (B2B) e-commerce (also known as e-Business) transactions occur between businesses and accounts for a larger segment of overall e-commerce than B2C.
- Business-to-administration (B2A) e-commerce involves organizations and government agencies.
- Consumer-to-administration (C2A) e-commerce involves individuals and government agencies.
Characteristics of E-Business
- E-business integrates external company processes with internal processes.
- This includes collaborative product development, planning, forecasting, replenishment and order management, and operations and logistics.
Ingredients of an e-Business Solution
- Key components in an e-business solution include customers, knowledge management, web selling, order fulfillment, purchasing, ordering, finance/accounting, production, delivery, distributors, suppliers, and various partners.
Customer Relationship Management (CRM) Systems
- CRM systems are front-office systems that help the enterprise deal directly with customers.
- CRM systems integrate and automate customer service processes within a company.
- CRM systems contribute to personal information gathering and processing and self-service throughout a company to create value for the customer.
Enterprise Resource Planning (ERP) systems
- ERP systems are management information systems that integrate and automate many business practices associated with operations and production in a company.
- Includes production (materials requirements planning/manufacturing resource planning and execution), buying a product (procurement processes), sales of products and services (customer order management), costing, paying bills, and collecting (financial/management accounting), and reporting.
Supply Chain Management (SCM)
- Supply chain involves a network of facilities and distribution options that manages the functions of procurement of materials, transformation of materials into products, and distribution of the products to customers.
- Supply chains have three major components: supply, manufacturing and distribution.
Knowledge Management (KM)
- Knowledge management involves collecting and applying knowledge regarding markets, products, processes, technologies, and organizations to business operations.
- This enables business processes to generate profits through planning and controlling actions.
e-Market
- e-Market is an electronic gathering place for multiple buyers and sellers, providing a unified view of goods and services, enabling transactions via automated means.
e-Business Roles and Their Challenges
- Buy-side organizations use e-business facilities for purchasing.
- Typically, this involves spot purchasing or enterprise-wide procurement.
- Sell-side organizations sell products using the e-business transaction mechanisms.
- These businesses manage multiple selling channels and differentiate and customize products and services based on customer needs.
e-Business Requirements
- E-business requirements include identifying and measuring quantifiable business objectives, ensuring organizational flexibility, re-thinking entire company supply chains, reforming companies into process-centric models, defining business processes, understanding security and payment methods, aligning with flexible IT architecture, establishing standards for business processes and enterprise integration technology.
Advantages of Electronic Business
- Improved operational efficiency and productivity
- Reduced operating costs and costs of goods and services
- Improved competitive position
- Penetration into new markets through new channels
- Improved communications, information and knowledge sharing
- Harmonisation and standardization of processes
- Improved internal information access and relationships with suppliers and customer service.
Inhibitors of Electronic Business
- Management/strategy issues: Lack of a defined e-Business strategy, Organizational changes, Management attitudes and inflexibility.
- Cost/financing: implementation costs, return on investment calculation.
- Insufficient security and trust issues
- Legal issues
- Technology concerns: limited interoperability, dependance on proprietary solutions
Chapter 2: e-Business Strategy
- What is an e-business strategy? Plans and objectives that enable electronically mediated communications for corporate strategy.
- Strategic positioning: Establishing goals to deliver value, having a unique value proposition than competitors offer.
- Three levels of e-business strategy: Supply Chain/Industry level, Line of Business/SBU level, Corporate/Enterprise level.
- The changing competitive agenda: Shift from supplier-driven to consumer-driven economy, Mass production to customisation, Producer focus to consumer focus.
- The strategic planning process: Defining situational analysis, target goals, and required path.
- Strategic alignment (IT): Alignment between business and IT that enables infrastructure development and complementary business strategies.
- Consequences: theoretical frameworks such as Porter's five forces model competition, resource-based view (RBV), and transaction cost economics (TCE).
- Implementation: Top-down and bottom-up program, organization, policies, plans, communication, alignment, and change agents.
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