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e-Business Strategy
Program
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E-business
strategy
Functional
strategies
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IS
strategy
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Strategic positioning
A company must start with the right goals;
A companys strategy must enable it to deliver a value
proposition, or set of benefits, different from those that its
competitors offer;
Company strategy needs to be reflected in a distinctive
value chain;
Robust company strategies involve trade-offs;
Company strategy defines how all the elements of what a
company does fit together;
Company strategy involves continuity of direction.
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Forms of Strategy
Intented
strategy
Unrealised
strategy
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Realised
strategy
Emergent
strategy
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Strategic alignment
Alignment between business and IT is not only
feasible to design and build a technically
sophisticated (inter-organizational) infrastructure
for e-Business, but also to formulate business
strategies that complement and support this
infrastructure.
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IT supporting e-business
strategic objectives
Enterprise
strategy
Business
functions
Application
architecture
e-Business
infrastructure
Sourcing /
staffing
Financing
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The Consequences of
e-Business
When analyzing the business effects of E-business
consider the next approaches:
The theory of competitive strategy;
The resource based view;
The theory of transaction costs;
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The bargaining
power of customers
The bargaining
power of suppliers
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Implementation of e-Business
Strategies
Top down and bottom up
Program Management
Organization
Policies
Plans
Communication
Alignment
Change Agentry
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Chapter 3
Business Models
Program
Introduction
Pressures forcing business changes
Business models-definitions
Business models-classification
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Introduction
The vertical bureaucratic structure in a firm is built on the
assumption that concentrating similar activities within
functions, and thus separating activities which are not
similar,would result in economies of scale.
The internet and related technologies reduce coordination
costs and transaction costs.
Traditional business models focused on creating value at
the line-of-business level while the new business models
focus on the customers and creating value at the
relationship level across products and channels.
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Business Models
Classification
Traditional organisational structure
VS
New organisational structure
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Traditional Organisational
Structure
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5 Business Models
Classifications
Internet-enabled
Value-web
E-business enabled
Market participant
Cyber-intermediary
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E-procurement
E-auction
Collaboration platform
E-mall
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Markets
Hierarchies
Networks
Information Technology
New-old business models
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Value-chain
Value-chain
integration
integration
model
model
Collaborative
Collaborative
product
productdevelopment
development
model
model
Degree of
integration
Process
Process
outsourcing
outsourcing
model
model
Virtual
Virtual
Organization
Organization
model
model
Tele-working
Tele-working
model
model
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Internet
Distributors
Distributors
Horizontal
Horizontal
Focussed
Focussed
distributors
distributors
Retailers
Retailers
Exchanges
Exchanges
Portals
Portals
Infomediaries
Infomediaries
Marketplaces
Marketplaces
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Vertical
Vertical
Affinity
Affinity
Aggregators
Aggregators
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Role of a Portal
Partner
Content
E-Business Portals
Employee
Content
Content
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Customer
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Definition of a Portal
Portals are web sites targeted at specific audiences
and communities, providing:
content aggregation/delivery of information relevant to
the audience
collaboration and community services
services/applications access for target audiences
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Cybermediaries Business
Model
Cybermediaries: New Network-Based
Intermediaries
Eleven business models are proposed based on
this assumption
Each business model is characterized by its
functions
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Cybermediaries Business
Model
Directories: Directory service intermediaries help consumers find
producers by categorizing Web sites and providing structured menus to
faciliate navigation.
Search Services: In contrast to the directories, search sites (e.g. Lycos
and Infoseek) provide users with the capabilities for conducting
keyword searches of extensive databases of Web sites/pages.
Malls: The term virtual mall or internet mall is often used to refer to
any site that has more than two commercial sites linked to it.
Virtual Resellers: The malls described above provide cyberinfrastructure, but they do not own inventory or sell products directly.
Web Site Evaluators: Consumers may be directed to a producer's site
via a new type of site that offers some form of evaluation, which may
help to reduce some of the risk to consumers.
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Chapter 4
E-Business Relationships
Program
Modeling business activities
Business Processes
e-Business relationships
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Firm Infrastructure
Human Resource Management
Support
activities
Technology Development
Procurement
Primary
activities
Profit
margin
Inbound
Outbound Marketing
Operations
Service
Logistics
Logistics and sales
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Operational Activities
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Management
Marketing
Sales
Finance
Service
Value chain :
Individual Checking and savings
Value chain :
Business Checking and Savings
Value chain :
New savings Product Development
Value chain :
Business Loans
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Manufacturing
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Assembly
Wholesale
Retail
Consumer
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Supply Chain
Demand
Basic raw
material
Manufacturing
Assembly
Wholesale
Retail
Consumer
Supply
Four types of info flows:
Transaction: orders, bills
Customer demand
Supplier information
Knowledge flows
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Business Processes
Business Process
Management
The focus on the final customer as opposed to the focus on
vertical functional activities has lead in the 90s to an
increased interest for processes and their management.
A (business) process view implies an horizontal view on a
business organization and looks at processes as sets of
interdependent activities designed and structured to
produce a specific output for a customer or a market.
A process is an ordering of activities with a beginning and
an end; It has inputs (in terms of resources, materials and
information) and a specified output. Processes can be
measured, and different performance measures apply, like
cost, quality, time and customer satisfaction.
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Research &
Marketing
Manufacturing
Development
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Typical Processes in a
Manufacturing Firm [Davenport]
Product development
Customer acquisition
Manufacturing
Order management
After-sales service
Human resource management
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Value Chain
Business process
Subprocess
Activity
Simple Activity
Step
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Compound Activity
Step
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Characteristics of Business
Processes
Environment
Customer and initiated by a customer order
Processing
Communication
Inventories or queues
Decision points
Delivery of a product
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Environment
Business Process
WF
Customer order
Mngtm
Workflow
: Decision point
: Inventory or Queue
: Processing step
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: Coordination of decision
points
: Transfer of activity
: transfer of
workflow decision
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Environments Stable
Complex
Simple
Dynamic
Professional
Bureaucracy
Adhocracy
Machine
Bureaucracy
Simple Structure
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Pieter Ribbers
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TRANSACTIONAL
GEOGRAPHICAL
AUTOMATIONAL
ANALYTICAL
INFORMATIONAL
SEQUENTIAL
KNOWLEDGE
MANAGEMENT
TRACKING
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Degree of Collaboration
Low
Degree of Mediation
High
High
A
B
B
C
A
C
A
C
Low
C
A
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: participating functions
: Collaborative activities
:input/output relationship
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E-Business Relationships
Types of e-Business
Relationships
Strategic
planning
Strategic
planning
Tactical
planning
Tactical
planning
Operational
planning
Operational
planning
Enterprise-A
Enterprise-B
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Types of temporal
interbusiness relationships
Spotmarket
Longer term
Partnership
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