ASSIGNMENT REPORT ON

ELECTRONOC COMMERCE: STRATEGIES &

APPLICATIONS

(451) UNIT - III

THE BUSINESS SCHOOL

SUBMITTED TO: DR. RACHNA GUPTA SUBMITTED BY: ROBIN GANJOO (31-MBA-10)

What is E-Commerce?
Commonly known as Electronic Marketing.
It consists of buying and selling goods and services over an

electronic systems Such as the internet and other computer networks.

E-commerce is the purchasing, selling and exchanging goods and

services over computer networks (internet) through which transaction or terms of sale are performed electronically. Defining E-Commerce from Different Perspectives
Communications - From a communication perspective, e-commerce

is the delivery of goods, services, information, or payments over computer networks or by any other electronic means.
Commercial

(trading) - From a commercial perspective, e-

commerce provides the capability of buying and selling products, services and information on the Internet and via other online services.
Business Process - From a business process perspective, e-

commerce is doing business electronically by completing business processes over electronic networks.
Service - From a service perspective, e-commerce is a tool that

addresses the desire of governments, firms, consumers, and management to cut service costs while improving the quality of customer service and increasing the speed of service delivery.

What is Internet?
a worldwide system of computer networks

 a public, cooperative, and self-sustaining facility accessible to hundreds of millions of people worldwide use a set of protocols called Transmission Control Protocol/Internet Protocol (TCP/IP)

What is Intranet?
Networks connecting an affiliated set of clients Using standard Internet Protocols, especially TCP/IP and HTTP, and some FTP
IP-based network of nodes behind a set of firewalls

What is Extranet?
part of a company's intranet that is extended to users outside the company securely share part of a business's information or operations with suppliers, vendors, partners, customers, or other businesses

INTRANETS

and

MANUFACTURING

Integrated Logistics
WHAT IS MANUFACTURING?
Is the application of physical and chemical processes of a given

starting material to make parts or products?

Is the transformation of materials into items of greater value by

means of one or more processing or assembly operation?

Its ads value to the material by changing its shape or properties.

Manufacturing Industries
Primary that are those that cultivate and exploit natural resources

 Secondary

that take

the outputs of the primary industries and

convert them into consumer or capital goods

Tertiary

that constitute the service sector of economy.

Integrated Logistics System-wide management of entire logistics chain as a single entity, instead of separate management of individual logistical functions. Supplier Management Inventory Management Distribution Management Warehouse Management

Agile Manufacturing
Agile manufacturing is a term applied to an organization that has

created the processes, tools, and training to enable it to respond quickly to customer needs and market changes while still controlling costs and quality. Customer-Driven Manufacturing Rapid Internal Response to Demand Changes Efficiently Managing Supply Chain Complexity

Discrete manufacturing In discrete manufacturing, the manufacturing floor works off orders to build something. Examples include toys, medical equipment, computers and cars. The resulting products are easily identifiable.

 Discrete manufacturing is often characterized by individual or separate unit production. Units can be produced in low volume with very high complexity or high volumes of low complexity. Low volume/high complexity production results in the need for an extremely flexible manufacturing system that can improve quality and time-to-market speed while cutting costs. High volume/low complexity production puts high premiums on inventory controls, lead times and reducing or limiting materials costs and waste Process manufacturing In process manufacturing, the products are undifferentiated, for example oil, natural gas and salt. Process manufacturing is common in the food, beverage, chemical, pharmaceutical, consumer packaged goods, and biotechnology industries. In process manufacturing, we talk about ingredients, not parts; formulas, not bill of materials.

Logistics Management
Forecasting Purchasing Purchase contract management Purchase order management Receiving and warehouse management

Distribution management Distribution requirements planning Physical inventory management Warehouse management (labor, space, equipment)

Transport and fleet management Labor management

What is Lean Manufacturing?

Lean manufacturing or thinking is exactly what the name sounds like - it is about 'cut to the bone', fat-trimmed, streamlining operation and organizations.
Womack and Jones define lean manufacturing as a five-step process:

defining customer value, defining the value stream, making it flow, pulling from the customer back, and striving for excellence. Taiichi Ohno, founder of TPS, said it even more succinctly: All we are doing is looking at the time line from the moment the customer gives us an order to the point when we collect the cash. And we are reducing that time line by removing the non-valueadded wastes. Some have referred to lean manufacturing as the TOYOTA

PRODUCTION SYSTEM, or JIT (just-in-time) manufacturing, paying attention to things like flow productions, line operations, value streams, Kaizen.
Problems most companies face

are: the need for fast, flexible

processes that give customers what they want, when they want it, at the highest quality and affordable cost. Lean Manufacturing, also called Lean Production, is a set of tools and methodologies that aims for the continuous elimination of all waste in the production process. The main benefits of this are lower production costs, increased output and shorter production lead times.

 More specifically, some of the goals include: Defects and wastage Cycle Times Inventory levels Labor productivity Utilization of equipment and space Flexibility Output
It is a Manufacturing Philosophy which shortens the time line

between the customer order and the shipment by eliminating waste.

Key Principles of Lean Manufacturing: Key principles behind Lean Manufacturing can be summarized as follows:

 Recognition of waste Standard processes Continuous flow Pull-production Quality at the Source Continuous improvement LEAN System - Benefits 15% growth in 1 year 12% Productivity increment in 1 year 20% Space saving in 1 year 90% On Time Delivery in Full 28% Throughputs Lead time reductions Improved Supplier performance Improved Customer Quality Progressive Waste Elimination Flexible structures assigned to business goals Roles & Responsibilities assigned to business goals Process driven culture Visual demonstration of achievements Increased employee ability and morale Visual abnormal situations

 Focused application of resources for best return Believable prediction of results Description of the Five Primary Elements Following is a basic definition of each of the Five Primary Elements:
Manufacturing Flow: The aspect that addresses physical changes

and design standards that are deployed as part of the cell.

Organization: The aspect focusing on identification of peoples

roles/functions, training in new ways of working, and communication.

Process Control: The aspect directed at monitoring, controlling,

stabilizing, and pursuing ways to improve the process.

Metrics: The aspect addressing visible, results-based performance

measures; targeted improvement; and team rewards/recognition.

Logistics: The aspect that provides definition for operating rules and

mechanisms for planning and controlling the flow of material.

Agile Manufacturing
Manufacturing industry is on the verge of a major paradigm shift. This shift will take us away from mass production, way beyond lean manufacturing, into a world of Agile Manufacturing. Agile manufacturing is a method for manufacturing which combine our organization, people and technology into an integrated and coordinated whole. Why do we need to be agile? Global Competition is intensifying. Mass markets are fragmenting into niche markets.

 Cooperation among companies is becoming necessary, including companies who are in direct competition with each other. Customers are expecting: Low volume products High quality products Custom products Very short product life-cycles, development time, and production lead times are required. Customers want to treated and individuals Keys to agility and flexibility
To determine customer needs quickly and continuously reposition the

company against its competitors. To design things quickly based on those individual needs.
To put them into full scale, quality, production quickly.

To respond to changing volumes and mix quickly. To respond to a crisis quickly. Agile Manufacturing enterprises will be capable of rapidly responding to changes in customer demand. They will be able to take advantage of the windows of opportunities that appear in the market place. With Agile Manufacturing the firm will be able to develop new ways of interacting with our customers and suppliers. The customers will not only be able to gain access to the products and services, but will also be able to easily access and exploit the competencies, so enabling them to use these competencies to achieve the things that they are seeking.

Intranets & Finance

Challenges In most instances the accumulation of information and the required interaction between people extends far beyond the finance and accounting staff. Collaboration with other internal functional areas of the business as well as externally with vendors, customers, and auditors pose challenges related to having the right information available at the right time. Much of the information is paper based with volumes of supporting information stored in filing cabinets. Diverse systems and tools are commonly used such as budgeting software; excel spreadsheets, and transactional systems. Collecting data and extracting information for analysis and timely decision making can be difficult and time consuming. An Intranet solution can streamline, secure, organize, and consolidate information to assist the finance and accounting department in presenting and communicating this important information.

The Intranet Solution An Intranet provides a secure, central point for collecting and publishing financial information. It also provides a vehicle for online transaction processing, ensuring rapid updating of information and availability of accurate and timely information. As a result, an Intranet enables managers across the company to track financial performance and maintain effective control. Intranets also permit external business partners, shareholders and analysts to have limited access to financial data to build tighter relationships with these constituencies and provide them with timely, accurate information.

Finance and Accounting Uses

Financial Reports - Publish financial data on a secure, controlled internally accessible web site. Policies and Procedures - A central location for corporate policies and procedures related to finance and accounting.

Budgeting - Publish historical and planning budgeting data, including projected and actual spending. Asset Management - Place complete inventory of current assets online for review and update, allowing managers to assess the current distribution of assets. Expense Reports - Allow employees to submit expense reports via email or electronic forms on secure web sites. Unit Reporting and Forecasting - Allow operating units or channel partners to report financial information and forecasts online in a secure manner. Accounts Payable/Receivable Support - Allow customers and vendors to access payment history and status information. Payroll - Allow employees and managers to submit payroll information online, including withholding changes, automatic deposits and time sheets.

Benefits from Intranet Deployment

Makes valuable information available throughout the enterprise while providing security for sensitive or confidential information. Eliminates the cost of printing and distributing information. Updates and distribution are faster because the information is centralized. Accelerate and improve process for development of new budgets. Managers can make informed decisions on asset redeployment, addition and retirement. Reduces paperwork and costs associated with reimbursing expenses. Validates input to reduce errors. Makes available up-to-date financial information for better-informed decision making. Leads to faster collection of receivables. Leads to a higher level of customer satisfaction. Assists in promoting closer relationships with vendors. Provides a higher level of efficiency in submitting information. Easier and faster for employees and managers to make changes when status changes.

 Up-to-date payroll information is available for payroll processing, minimizing errors due to out-of-date information.