Supply Chain Management Overview
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Supply Chain Management Overview

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Questions and Answers

What is a common method of payment in B2B cooperation?

  • Payment per individual transaction
  • Payment made for a set of transactions, often monthly (correct)
  • Payment exclusively through online platforms
  • Payment made with cash only

    • Which activity does strong B2B collaboration NOT typically involve?

  • Common forecasts between partners
  • Individual marketing campaigns for each partner (correct)
  • Monitoring of sales data at POS
  • Common strategic planning

    • How does the supplier benefit from a strong B2B relationship?

  • Reduction in precise sales data
  • Transfer of logistics risks to the merchant
  • Improved production management (correct)
  • Increased warehousing costs

    • What advantage does the merchant gain from transferring logistics risks to the supplier?

    <p>Reduction in out-of-stock situations</p> Signup and view all the answers

    In the context of supply chain management, what does SCM stand for?

    <p>Supply Chain Management</p> Signup and view all the answers

    What is one potential outcome of poor cooperation between the supplier and merchant?

    <p>Increased capital lockup due to warehousing</p> Signup and view all the answers

    Which statement describes an advantage for the merchant in a B2B relationship?

    <p>Earning income from renting out rack space</p> Signup and view all the answers

    What main component is Supply Chain Management primarily concerned with?

    <p>Coordinating procurement, manufacturing, and transportation</p> Signup and view all the answers

    What is the main purpose of a supply chain?

    <p>To connect various entities to facilitate the delivery of goods and services</p> Signup and view all the answers

    Which stage is NOT typically included in the supply chain process?

    <p>Marketing</p> Signup and view all the answers

    Which of the following best describes the characteristic function of a supply chain?

    <p>It coordinates several value chain stages effectively.</p> Signup and view all the answers

    What aspect is essential for a seamless presentation delivery?

    <p>Aim for seamless, professional timing and transitions</p> Signup and view all the answers

    Which technique should NOT be utilized for improving presentation skills?

    <p>Ignoring the audience's reactions</p> Signup and view all the answers

    What is a key step in the rehearsal process for a presentation?

    <p>Enlisting colleagues to provide feedback</p> Signup and view all the answers

    Which of the following is NOT a recommended tip for refining delivery style?

    <p>Avoiding all forms of audience engagement</p> Signup and view all the answers

    What is an important benefit of consistent rehearsal for presentations?

    <p>It strengthens familiarity with the presentation material</p> Signup and view all the answers

    What factor significantly increases the viability of automation in a marketplace?

    <p>High number of participants</p> Signup and view all the answers

    Which of the following is NOT considered a main function of a digital marketplace?

    <p>Market prediction analysis</p> Signup and view all the answers

    Which reason could lead to the failure of a digital marketplace?

    <p>High levels of technology limitations</p> Signup and view all the answers

    What is a characteristic of a marketplace that can deter participation from suppliers and customers?

    <p>Low economic attractiveness</p> Signup and view all the answers

    What is one of the challenges management might face regarding business processes in digital marketplaces?

    <p>Under-valuing process complexity</p> Signup and view all the answers

    Which of the following represents a supportive function often associated with marketplaces?

    <p>Transportation</p> Signup and view all the answers

    Why might highly complex products or services not require a marketplace?

    <p>Direct interactions between partners are sufficient</p> Signup and view all the answers

    What can be a direct consequence of underestimating IT infrastructure costs for marketplace founders?

    <p>Longer project timelines</p> Signup and view all the answers

    What defines a digital marketplace?

    <p>Software enabling cooperation between various suppliers and customers</p> Signup and view all the answers

    Which factor doesn't influence the differentiation of marketplaces?

    <p>Geographical location of buyers</p> Signup and view all the answers

    What is an example of a factor that affects market liquidity?

    <p>Number of transactions per time unit</p> Signup and view all the answers

    What type of products are generally not suitable for electronic trade?

    <p>Complex products</p> Signup and view all the answers

    Which aspect is NOT considered as a component of transaction costs?

    <p>Market liquidity</p> Signup and view all the answers

    Why might providers avoid using marketplaces when profit margins are high?

    <p>They can reach more customers directly</p> Signup and view all the answers

    Which of the following is a consequence of the complexity of products in electronic trade?

    <p>Decrease in market liquidity</p> Signup and view all the answers

    What factor is crucial for determining the appropriateness of a marketplace?

    <p>The type of transactions involved</p> Signup and view all the answers

    What characterizes the transaction approach in B2C business?

    <p>Each transaction is treated independently.</p> Signup and view all the answers

    Which statement accurately reflects B2B business practices?

    <p>Payments are generally scheduled on a set basis.</p> Signup and view all the answers

    How do business partners typically determine the benefits of a B2C transaction?

    <p>By assessing mutual benefits for that transaction.</p> Signup and view all the answers

    What is one of the primary features of B2B cooperation?

    <p>Members coordinate to achieve common objectives.</p> Signup and view all the answers

    What distinguishes the payment structure in B2C compared to B2B?

    <p>B2C requires specific payment methods for each transaction.</p> Signup and view all the answers

    What is a common misconception about B2B price allocation?

    <p>Price allocation is mostly established at the beginning.</p> Signup and view all the answers

    In B2C business, what is essential for both parties before a transaction is executed?

    <p>Mutual agreement on whether they will benefit from the transaction.</p> Signup and view all the answers

    Which of the following statements is true regarding B2B contracts?

    <p>Contracts are the basis of the ongoing cooperation.</p> Signup and view all the answers

    The supply chain connects suppliers, manufacturing shops, distribution centres, and customers through processes like procurement and delivery.

    <p>True</p> Signup and view all the answers

    Supply chains only include manufacturing and shipping companies, excluding merchants and customers.

    <p>False</p> Signup and view all the answers

    Practicing delivery style involves focusing on aspects like pacing and tone.

    <p>True</p> Signup and view all the answers

    Feedback is an irrelevant aspect when preparing for a presentation.

    <p>False</p> Signup and view all the answers

    The goal of consistent rehearsal is to strengthen familiarity with the content.

    <p>True</p> Signup and view all the answers

    A seamless presentation delivery is not related to timing and transitions.

    <p>False</p> Signup and view all the answers

    Setting personal goals is a method to help improve presentation performance.

    <p>True</p> Signup and view all the answers

    Exploring new techniques is unnecessary for enhancing presentation skills.

    <p>False</p> Signup and view all the answers

    A high number of participants in a marketplace can make automation unnecessary.

    <p>False</p> Signup and view all the answers

    The complexity of technology is often overestimated by marketplace founders.

    <p>False</p> Signup and view all the answers

    Marketplaces can fail if the costs for IT infrastructure are overestimated.

    <p>False</p> Signup and view all the answers

    Transparent markets usually lead to greater competition among suppliers and customers.

    <p>True</p> Signup and view all the answers

    Highly complex products or services often require a marketplace for transactions.

    <p>False</p> Signup and view all the answers

    Supply chain management includes the movement of finished goods only after they are manufactured.

    <p>False</p> Signup and view all the answers

    Consistent rehearsal only involves practicing delivery without seeking feedback.

    <p>False</p> Signup and view all the answers

    The goal of supply chain management is to reduce trust and collaboration among supply chain partners.

    <p>False</p> Signup and view all the answers

    Refining delivery style focuses solely on pacing and has no relation to tone and emphasis.

    <p>False</p> Signup and view all the answers

    Financial accounting includes functions such as accounts receivables and cash management.

    <p>True</p> Signup and view all the answers

    Setting personal goals can assist in evaluating one's presentation performance.

    <p>True</p> Signup and view all the answers

    Human resources activities include payroll and recruiting but exclude training.

    <p>False</p> Signup and view all the answers

    Aim for seamless delivery means ensuring your presentation is spontaneous and unrehearsed.

    <p>False</p> Signup and view all the answers

    Manufacturing processes focus solely on the quality control of finished goods.

    <p>False</p> Signup and view all the answers

    Exploring new techniques can help to keep presentations engaging and relevant.

    <p>True</p> Signup and view all the answers

    Order processing involves activities like credit checking and pricing.

    <p>True</p> Signup and view all the answers

    Management accounting primarily focuses on external financial reporting.

    <p>False</p> Signup and view all the answers

    Practicing in front of an audience can detract from a presenter's delivery style.

    <p>False</p> Signup and view all the answers

    Feedback from colleagues plays no role in improving presentation skills.

    <p>False</p> Signup and view all the answers

    Project management includes activities like resource planning and performance units.

    <p>True</p> Signup and view all the answers

    The supply chain management process does not include the movement and storage of inventory.

    <p>False</p> Signup and view all the answers

    Iterating and adapting is a process that should be done only once after a presentation is complete.

    <p>False</p> Signup and view all the answers

    Professional delivery requires attention to timing and transitions.

    <p>True</p> Signup and view all the answers

    Customer relationship management is unrelated to sales and marketing processes.

    <p>False</p> Signup and view all the answers

    Emphasis is less important than pacing when refining delivery style.

    <p>False</p> Signup and view all the answers

    A digital marketplace allows only suppliers to act autonomously.

    <p>False</p> Signup and view all the answers

    Transaction costs can compose up to 50% of the total costs of a transaction.

    <p>True</p> Signup and view all the answers

    Complex products are often well-suited for electronic trade.

    <p>False</p> Signup and view all the answers

    If profit margins are low, marketplaces usually have high transparency.

    <p>True</p> Signup and view all the answers

    Market liquidity refers to the number of transactions per year.

    <p>False</p> Signup and view all the answers

    Specificity of a product with high application potential leads to high market liquidity.

    <p>True</p> Signup and view all the answers

    External transaction costs are incurred by the marketplace owner only.

    <p>False</p> Signup and view all the answers

    Profitable providers often bypass marketplaces when they have high profit margins.

    <p>True</p> Signup and view all the answers

    Tradable quantities need to be high to ensure low transaction costs.

    <p>False</p> Signup and view all the answers

    The meaning and duration of a transaction can differ based on industry and product.

    <p>True</p> Signup and view all the answers

    How do cost structures typically differ between the traditional economy and the digital economy?

    <p>The digital economy has high allocation costs and low transaction costs.</p> Signup and view all the answers

    What factor significantly influences the ability of suppliers to operate in global markets?

    <p>Technical standardization of communication protocols.</p> Signup and view all the answers

    What role do intermediaries play in B2B vertical E-commerce?

    <p>They enhance product differentiation through online ratings.</p> Signup and view all the answers

    What challenges arise from the increased information density in digital markets?

    <p>Information floods that complicate search efforts.</p> Signup and view all the answers

    What impact does digital market transparency have on price competition?

    <p>It facilitates a perfect competition balance.</p> Signup and view all the answers

    What is the main focus of ethics as described in the content?

    <p>To analyze and recommend actions regarding right and wrong conduct</p> Signup and view all the answers

    How does morality differ from ethics according to the provided information?

    <p>Morality differentiates between good and bad actions, while ethics focuses on right conduct.</p> Signup and view all the answers

    Which of the following best captures a potential impact of E-Commerce on society?

    <p>Complete automation resulting in fewer human jobs</p> Signup and view all the answers

    What is a primary consideration for privacy protection in E-Commerce?

    <p>Understanding human rights and state constitutions</p> Signup and view all the answers

    According to the material, how is the rapid advancement of ICT impacting businesses?

    <p>It allows companies to operate without any employees.</p> Signup and view all the answers

    What ethical dilemma is presented regarding the use of ICT in business?

    <p>Balancing technology capabilities with ethical conduct.</p> Signup and view all the answers

    What does moral philosophy aim to address?

    <p>Questions of moral diversity and right conduct</p> Signup and view all the answers

    Which of the following statements about privacy in E-Commerce is true?

    <p>Data mining practices raise significant privacy concerns.</p> Signup and view all the answers

    How does E-Commerce impact international trade?

    <p>It enhances opportunities for increased specialization.</p> Signup and view all the answers

    What effect does E-Commerce have on monetary policy?

    <p>It is expected to lower prices overall.</p> Signup and view all the answers

    What potential issue might governments face due to E-Commerce?

    <p>Reduced ability to tax interstate transactions.</p> Signup and view all the answers

    Which of the following describes a potential benefit of E-Commerce in terms of competition?

    <p>Higher importance of network externalities for incumbents.</p> Signup and view all the answers

    How does E-Commerce affect fixed and variable costs in industries?

    <p>It converts fixed costs into variable costs.</p> Signup and view all the answers

    What is a consequence of E-Commerce for market entry in industries that reduce fixed costs?

    <p>Minimum efficient scale decreases and threat of entry rises.</p> Signup and view all the answers

    Which scenario illustrates the impact of E-Commerce on economies of scope?

    <p>Firms offering a bundle of complementary goods.</p> Signup and view all the answers

    What is a reason why policymakers are exploring options to tax transactions in E-Commerce?

    <p>To address potential revenue losses from interstate sales.</p> Signup and view all the answers

    What do network externalities in the context of E-Commerce signify?

    <p>The value of a product increases as more people use it.</p> Signup and view all the answers

    What principle emphasizes the need for experience over formal qualifications in the context of computer use?

    <p>Practical experience should always be preferred</p> Signup and view all the answers

    What is a potential consequence of poor software and data quality?

    <p>Reduced economic growth</p> Signup and view all the answers

    Which of the following is NOT a challenge related to accountability in IT systems?

    <p>Setting user access limits</p> Signup and view all the answers

    How does ICT facilitate economic growth?

    <p>By increasing productivity through capital formation</p> Signup and view all the answers

    What aspect of hacking does Steven Levy advocate for in his principles?

    <p>Hacking should be evaluated based on activities, not personal characteristics</p> Signup and view all the answers

    What is a critical question regarding the legal status of transactions?

    <p>What distinguishes legal trade from illegal trade?</p> Signup and view all the answers

    Which of the following statements reflects the general governance of global digital markets?

    <p>Certain aspects must be governed by laws and regulations</p> Signup and view all the answers

    What is a significant impact of digitalization on business practices?

    <p>Increased concentration of market power</p> Signup and view all the answers

    Which principle emphasizes the importance of mistrusting authority in technology?

    <p>Mistrust authority – stimulate decentralization</p> Signup and view all the answers

    What should be prioritized in the context of learning about computers according to Levy's rules?

    <p>Unlimited access to all systems and information</p> Signup and view all the answers

    How does E-Commerce impact entry barriers in various industries?

    <p>It decreases the importance of physical location and reduces entry barriers.</p> Signup and view all the answers

    What is a likely effect of E-Commerce on supplier power?

    <p>Suppliers may lose bargaining power due to lower switching costs.</p> Signup and view all the answers

    What role does vertical integration play in the context of E-Commerce?

    <p>It increases supplier power through tighter controls.</p> Signup and view all the answers

    What defines the brokerage effect in E-Commerce?

    <p>Reduction in transaction costs between suppliers and customers.</p> Signup and view all the answers

    Which of the following statements about customer power in E-Commerce is accurate?

    <p>E-Commerce reduces information and search costs, increasing customer power.</p> Signup and view all the answers

    What is one consequence of early entry into E-Commerce?

    <p>Incumbents may gain significant initial advantages, but they are not always lasting.</p> Signup and view all the answers

    How does E-Commerce affect transaction costs?

    <p>E-Commerce typically reduces transaction costs across industries.</p> Signup and view all the answers

    In what way does E-Commerce impact the role of intermediaries?

    <p>E-Commerce threatens the existence of traditional intermediaries.</p> Signup and view all the answers

    What influence does a decrease in sunk costs have on market entrants?

    <p>It encourages more firms to enter the market.</p> Signup and view all the answers

    What trend is associated with the reduced importance of physical locations in E-Commerce?

    <p>Enhanced competition due to easier market entry.</p> Signup and view all the answers

    Ethics can be defined as the differentiation between actions that are considered 'good' and those that are considered 'bad'.

    <p>True</p> Signup and view all the answers

    The doubling of computer power every 18 months is a concept known as Moore's Law.

    <p>True</p> Signup and view all the answers

    Morality is solely based on religious beliefs and has no secular components.

    <p>False</p> Signup and view all the answers

    Privacy protection is considered a low priority in the field of E-Commerce.

    <p>False</p> Signup and view all the answers

    E-Commerce only has positive impacts on society and economics.

    <p>False</p> Signup and view all the answers

    The vision of a firm without any employees is a realizable concept due to developments in ICT.

    <p>True</p> Signup and view all the answers

    The balance between ethics, technology, and economics is deemed irrelevant in contemporary discussions.

    <p>False</p> Signup and view all the answers

    Humans are expected to act in a manner that they wish to be universal laws, according to Immanuel Kant's philosophy.

    <p>True</p> Signup and view all the answers

    E-Commerce increases the gains from international trade by improving specialization.

    <p>True</p> Signup and view all the answers

    A lack of infrastructure has no impact on the potential gains from trade for developing nations.

    <p>False</p> Signup and view all the answers

    E-Commerce is expected to increase transaction costs and result in higher prices in the long run.

    <p>False</p> Signup and view all the answers

    The threat of entry into a market increases when fixed costs are reduced due to E-Commerce.

    <p>True</p> Signup and view all the answers

    Network externalities in E-Commerce can increase the threat from new entrants.

    <p>False</p> Signup and view all the answers

    E-Commerce allows for ICT outsourcing by converting fixed costs into variable costs.

    <p>True</p> Signup and view all the answers

    Governments are unconcerned about potential sales tax revenue losses from E-Commerce transactions.

    <p>False</p> Signup and view all the answers

    E-Commerce generally decreases economies of scale in industries where variable costs remain unchanged.

    <p>False</p> Signup and view all the answers

    The importance of sunk costs increases as entry barriers fall in E-Commerce.

    <p>False</p> Signup and view all the answers

    E-Commerce enables suppliers to have greater power over the industry due to increased transparency.

    <p>False</p> Signup and view all the answers

    E-Commerce can lead to disintermediation in sectors such as travel agencies and brokerages.

    <p>True</p> Signup and view all the answers

    Higher switching costs for customers generally reduce supplier power.

    <p>False</p> Signup and view all the answers

    Early entry into E-Commerce ensures lasting advantages for incumbents.

    <p>False</p> Signup and view all the answers

    E-Commerce and outsourcing make physical nearness to skilled labor increasingly important.

    <p>False</p> Signup and view all the answers

    Product differentiation through branding may become more significant with E-Commerce.

    <p>False</p> Signup and view all the answers

    The power of customers increases due to reduced information and search costs in E-Commerce.

    <p>False</p> Signup and view all the answers

    All information should be free according to the six basic rules defined by Steven Levy.

    <p>True</p> Signup and view all the answers

    Mistrusting authority is discouraged in the basic rules defined by Steven Levy.

    <p>False</p> Signup and view all the answers

    Hackers should be judged based on criteria like age and social position according to Steven Levy's principles.

    <p>False</p> Signup and view all the answers

    Digitalization has decreased productivity and led to economic shrinkage.

    <p>False</p> Signup and view all the answers

    The responsibility for damages caused by a machine controlled by software falls entirely on the software provider.

    <p>False</p> Signup and view all the answers

    The impact of ICT has not changed the way businesses operate significantly.

    <p>False</p> Signup and view all the answers

    ICT investments have resulted in increased economic growth in many developed countries.

    <p>True</p> Signup and view all the answers

    Decentralization is a principle that encourages trusting authority in the context of ICT.

    <p>False</p> Signup and view all the answers

    In a digital economy, allocation costs are typically low while transaction costs are high.

    <p>False</p> Signup and view all the answers

    Technical standardization enables global cooperation among various partners.

    <p>True</p> Signup and view all the answers

    Digital markets hinder transparency due to limited information availability.

    <p>False</p> Signup and view all the answers

    Intellectual properties can be easily manipulated in the digital sphere despite being protected by patents.

    <p>True</p> Signup and view all the answers

    Excessive information due to media breaches improves the efficiency of knowledge management.

    <p>False</p> Signup and view all the answers

    In traditional economics, total costs include high transaction costs and low infrastructure costs.

    <p>False</p> Signup and view all the answers

    The economy of attention emphasizes the need for intelligent search agents to manage information overload.

    <p>True</p> Signup and view all the answers

    In digital markets, perfect competition is unlikely due to asymmetric information between suppliers and customers.

    <p>False</p> Signup and view all the answers

    Study Notes

    Supply Chain Management

    • Supply chain encompasses suppliers, manufacturers, distributors, shipping, merchants, and end customers.
    • It involves procurement, warehouse management, distribution, and delivery processes.
    • Effective supply chains coordinate multiple value chain stages.

    B2C vs B2B

    • B2C focuses on single transactions, with each interaction treated as independent.
    • B2B emphasizes ongoing cooperation with established contracts and shared objectives.

    Strong B2B Relationship

    • Supplier and merchant collaborate like a unified organization.
    • This involves joint strategic planning, sales data sharing, and coordinated forecasting.
    • Benefits for Suppliers: Precise sales data, improved production management, and enhanced marketing/advertising.
    • Benefits for Merchants: Reduced warehousing and personnel costs, transferred logistics risks, and minimized stock-outs.

    Supply Chain Management (SCM)

    • SCM involves tightly integrating and coordinating all aspects of product procurement, manufacturing, and transportation.

    Marketplaces

    • Digital marketplaces provide comprehensive E-Commerce functionality under marketplace ownership.
    • They enable collaboration between diverse suppliers and customers.
    • Marketplaces differ based on:
      • Product/Service Type: Tradable quantities, specificity, product complexity, price components, and consumer consequences.
      • Transaction Type: Market liquidity, transaction stage, transaction meaning, and transaction duration.
      • Main Functions: Data management, pricing, buying, selling, stock exchange, transportation, invoicing, and payment.

    Marketplace Failure Reasons

    • Complex technology exceeding founder expectations
    • Underestimated IT infrastructure costs
    • Project delays and escalating capital requirements
    • Undervalued business process complexities
    • Missing standards hindering a sound foundation
    • Higher than anticipated personnel efforts
    • Lack of economic attractiveness for suppliers and customers
    • Ineffective fees
    • Direct internet-based collaboration eliminating the need for intermediaries
    • Highly complex products or services making specific businesses unsuitable for marketplaces

    Supply Chain Management

    • Supply chain connects suppliers, manufacturers, distribution centers, shipping companies, merchants, and customers.
    • Supply chains coordinate multiple stages of the value chain.
    • Supply chain management involves managing the flow of goods and services from point of origin to point of consumption.
    • Supply chain management is a cross-functional approach.
    • SCM focuses on improving trust and collaboration among supply chain partners.

    Marketplace

    • Marketplaces are software platforms with comprehensive E-Commerce functionality.
    • Marketplace owners control the software and processes.
    • Marketplaces facilitate cooperation between suppliers and customers.
    • They can be differentiated by their type of product or service, transaction type, and functions.

    Marketplace Types

    • Product or Service
      • Tradable Quantities: Transaction costs are low for large tradable quantities.
      • Specificity: Products with low application potential have low market liquidity.
      • Complexity: Complex products are not suitable for electronic trade.
      • Price Components: Material, service, production, transport, and profit margin contribute to pricing.
      • Consumer Consequences: Transactions involve contract business or spot business.
      • Value Creation: A-Products are goods needed for production, while C-Products are MRO (Maintenance/Repair/Operations).
    • Transaction Type
      • Market Liquidity: Number of transactions per time unit.
      • Stage of Transaction: Defined by the process model.
      • Meaning of Transaction: Determined by the industry and product.
      • Duration of Transaction: With or without adjustments.

    Marketplace Functions

    • Data Management: Master data, transaction data, and catalogue.
    • Pricing: Market, calling for bids, tender offers, auctions, negotiations, and power shopping.
    • Buying: E-Sourcing, E-Procurement, and workflow.
    • Sales: Ordering and order management.
    • Other: Stock exchange; transport; invoicing; payment; additional functions offered centrally for market actors; interfaces with providers, customers, forwarding and shipping agencies, and other service providers.

    Marketplace Failure Factors

    • Technology is more complex than expected.
    • IT infrastructure costs are underestimated.
    • Projects take longer than expected and increase capital needs.
    • Complexity of business processes is undervalued.
    • Missing standards lead to a lack of sound background.
    • Personnel efforts are higher than expected.
    • Marketplaces are economically unattractive for suppliers and customers.
    • Fees are not cost-effective.
    • Partners may choose direct collaboration via the internet, bypassing the marketplace.
    • The business does not require a marketplace due to highly complex products or services.

    Ethics and Morality

    • Ethics is concerned with defining and defending concepts of right and wrong conduct.
    • Morality differentiates actions based on what is considered "good" or "bad".
    • Both ethics and morality are essential for a well-functioning society.

    Impact of ICT on Ethics and Morality

    • Rapid advancements in ICT raise ethical concerns, especially regarding employment and the increasing reliance on technology.
    • Questions arise regarding how technology affects our actions, and the balance between ethics, technology, and economics.

    Information Rights and Duties in E-Commerce

    • Privacy protection is crucial in E-Commerce, based on human rights and constitutional principles.
    • E-Marketing raises privacy concerns due to data mining and usage by platforms such as Facebook.
    • Steven Levy's six basic rules for information rights emphasize unlimited access to information and promote decentralization.

    Proprietary Rights and Duties in E-Commerce

    • Determining the boundaries between theft and copying is crucial in E-Commerce.
    • Defining legal and illegal trade transactions is essential to uphold intellectual property rights.

    Accountability and Control in E-Commerce

    • Responsibility for damages caused by software-controlled machines needs clarification.
    • Determining liability for data breaches and safeguarding organizations against ICT system failures is essential.
    • Establishing accountability for the distribution of misleading or damaging information online is crucial.

    Overall Impacts of E-Commerce

    • ICT transforms the world through its impact on various aspects of society and the economy.
    • E-Commerce influences economies by increasing productivity and driving innovation.
    • Investments in ICT have significantly contributed to economic growth in developed nations.

    Macroeconomic Impacts of E-Commerce

    • E-Commerce enhances international trade by increasing specialization opportunities.
    • E-Commerce influences monetary policy through increased competition and reduced costs, resulting in lower prices.
    • E-Commerce poses challenges to governments regarding sales tax revenue as interstate and international transactions rise.

    Microeconomic Impacts of E-Commerce

    • E-Commerce can impact the threat of entry in various industries.
    • Entry barriers may be decreased or increased depending on how E-Commerce affects economies of scale and scope.
    • E-Commerce influences the power of suppliers and customers in different ways.

    Cost Structures in Traditional and Digital Economies

    • The traditional economy is characterized by low allocation costs and high transaction costs.
    • The digital economy is defined by high allocation costs and low transaction costs.

    Economy of Attention

    • The concept of "economy of attention" highlights the increasing competition for consumers' attention in the digital age.

    External Impacts of E-Commerce

    • E-Commerce contributes to globalization through technical standardization, leading to global markets and job relocation.
    • E-Commerce increases information density, leading to an information flood and increasing importance of information management.
    • E-Commerce impacts intellectual property rights by promoting both faster distribution and easier copying and manipulation.

    Pricing in Digital Markets

    • Digital markets increase transparency regarding prices and offerings.
    • Symmetric information access between suppliers and customers leads to lower arbitrage profits.
    • However, the "supermarket effect" can occur, decreasing transparency due to excessive offerings.

    Social and Ethical Considerations

    • While E-Commerce offers numerous benefits, it is essential to address social and ethical consequences.
    • Issues like digital inequality, privacy concerns, and the impact on traditional industries require careful consideration.

    Ethics and Morality

    • Ethics is a branch of philosophy that explores concepts of right and wrong conduct.
    • Morality is the differentiation between actions, decisions, and intentions deemed "good" or "bad."

    Ethical Aspects of ICT

    • The rapid development of information and communication technology (ICT) raises numerous ethical questions.
    • Ethical considerations include:
      • The potential for misuse of ICT for harmful purposes.
      • Balancing the benefits of technology with potential risks.
      • Ethical implications of automation and its impact on employment.

    Information Rights & Information Duties

    • Privacy protection is a critical aspect of E-Commerce.
    • Data mining and data usage raise privacy concerns particularly in E-Marketing.
    • Steven Levy proposed six basic rules for the ethical use of computers:
      • Unlimited access to information and computer systems.
      • Prioritization of practical experience over theoretical knowledge.
      • Freedom of information.
      • Skepticism towards authority and encouragement of decentralization.
      • Judging hackers based on their actions, not credentials or background.
      • Use of computers for artistic creation and personal betterment.

    Proprietary Rights and Duties

    • Questions arise regarding the ethical implications of selling goods without ownership or authorization.
    • Distinguishing between legal and illegal trade and determining the boundaries between theft and copying are significant challenges.

    Accountability and Checks

    • Questions arise regarding responsibility for damages caused by software-controlled machines.
    • Liability for stolen personal data is a crucial concern.
    • Organizations face the challenge of protecting themselves from ICT system breakdowns.
    • Accountability for the distribution of inaccurate or reputation-damaging information online needs to be addressed.

    Overall Impacts of E-Commerce

    • E-Commerce significantly influences the global economy.
    • ICT changes the world by impacting productivity, labor markets, and information access.
    • E-Commerce increases economic growth through increased productivity and innovation.

    Macroeconomic Impact

    • E-Commerce facilitates international trade and increases specialization, potentially benefiting both developed and developing nations.
    • E-Commerce can impact monetary policy by increasing competition, reducing transaction costs, and lowering prices.
    • Governments face challenges regarding the taxation of E-Commerce transactions.

    Microeconomic Impact

    • E-Commerce can both increase and decrease economies of scale and scope, impacting the threat of entry for new businesses.
    • E-Commerce can strengthen or weaken the power of suppliers and customers depending on the industry and specific implementation.
    • E-Commerce alters the importance of physical location, customer service, and the nature of business relationships.

    Cost Structures

    • Traditional economies typically have low allocation costs and high transaction costs, while digital economies often have high allocation costs and low transaction costs.

    Economy of Attention

    • The "economy of attention" acknowledges the growing competition for user attention in digital environments.
    • Effective strategies to capture and retain user attention in a crowded online world become essential.

    Externalities of E-Commerce

    • E-Commerce creates both positive and negative externalities:
      • Standardization of technologies like TCP/IP enables global collaboration and markets.
      • Increased information density leads to a "flood" of information, creating challenges for information management.
      • Digital copies of intellectual property can be easily replicated and altered, raising copyright concerns.

    Globalization

    • E-Commerce accelerates globalization through:
      • Global platform creation facilitated by standardized technology.
      • Expansion of global markets and increased opportunities for cross-border trade.
      • Potential for job relocation to lower-cost regions.

    Information Density

    • E-Commerce increases the volume and accessibility of information, leading to both benefits and challenges:
      • Enhanced data exchange through electronic means.
      • Potential for information overload, requiring effective information management strategies.

    Intellectual Properties

    • E-Commerce has a mixed impact on intellectual property:
      • Increased distribution and access to intellectual property.
      • Increased risk of unauthorized copying and manipulation of digital content.

    Pricing

    • E-Commerce promotes price transparency:
      • Suppliers and customers have access to similar information about prices and products.
      • Arbitrarily high prices may be reduced due to increased competition.
    • The "supermarket effect" can arise when an overabundance of options leads to information overload and decreased transparency.

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    Related Documents

    Chapter 4 B2B Business Processes PDF
    Impact of E-Commerce Chapter 5 PDF

    Description

    This quiz explores the intricate world of Supply Chain Management, covering critical components such as procurement, B2C vs B2B dynamics, and the importance of strong B2B relationships. Understand how effective coordination of various stakeholders can enhance efficiency and improve outcomes in supply chain processes.

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