Вы находитесь на странице: 1из 18

electronic commerce strategy technologies and applications

e c o m m e r c e

Chapter 1: Electric commerce

electronic commerce strategy technologies and applications

e c o m m e r c e

To live is the rarest thing in the world. Most people exist, that is all.
Oscar Wilde

Internet Applications and E-Commerce


Lecture No.2 The Value Chain

Chapter No.2

The Value Chain

The production of goods and services is the result of the efforts of many organisations a complex web of contracts and co-operation known as the supply chain or the value system. The structure of value system varies greatly between business sectors . Each stage in the supply chain adds some value.
5

The Supply Chains / Value System


Manufacturing Inputs: Components (e.g. wheels, seats, etc.) Sub-assemblies (e.g. engine, gearbox, etc.)

Manufacturer
Wholesale sub assembly supply component supply Retail

Sales and Distribution: Wholesale (e.g. import agent) Retail (e.g. local main dealer)
6

Logistics Chains
Transport Storage Paperwork (Orders, Invoices, etc)

Each supply chain transaction adds cost without adding intrinsic value. e-Commerce can be applied to the supply chain to reduce costs or improve service.
7

Porters Value Chain Model


support activities

Firm Infrastructure

Human Resource Management Technology Development Procurement Inbound Operations Outbound Marketing Logistics Logistics & Sales
primary activities Margin

Service

Primary Activities: Inbound Logistics Operations (Production) Outbound Logistics Marketing and Sales Service

Three basic primary activities

Addition of further two activities


8

Primary Activities
Inbound Logistics: Managing goods that are brought into
company, storing them, and making them available to operations.

Operations (Production): The production process / a series of sub-activities representing operations process. Outbound Logistics: Taking companys products, storing them (if perishable) & distributing them to customers. Marketing and Sales: Finding potential customers requirements & letting them know what products / services can be offered to them. Service: Any requirement for installation, advice before delivery & after sales services once the transaction has been completed.
9

Porters Value Chain Model


support activities

Firm Infrastructure

Human Resource Management Technology Development Procurement Inbound Operations Outbound Marketing Logistics Logistics & Sales
primary activities Margin

Service

Support Activities: Procurement Technology Development Human Resources Management Firm Infrastructure
10

Support Activities
Procurement: Finding suppliers of materials, negotiating them for acceptable price, quality and reliable delivery.
Technology Development: Updating organizations production process, training of staff and managing innovations to remain competitive in the market. HRM: The recruitment, training and personnel management of HR capital who work for organization. Firm Infrastructure: The Overall Management of the company e.g. planning, development and accountancy etc.

11

Linked value chains


Outbound Logistics Inbound Operations Outbound Logistics Logistics Inbound Logistics

Inbound Logistics
Outbound Logistics

from Suppliers
from Customers

12

Porters value system (Inter-organisational value chain)


Supplier Value Chains Firm Value Chains Channel * Value Chains Buyers Value Chains

Overall organisational competitive advantage: efficiency of the company quality of its products plus efficiency and quality of suppliers efficiency of wholesalers (Channel) efficiency of retailers * Channels refers to the intermediaries.
13

Automotive assembly value system


Internal Supplies

Component

Suppliers

Vehicle Assembler

Dealer Network

Consumer

Inbound Logistics: Large number of suppliers Vast number of components Process: Just-in-time (JIT) manufacture Outbound Logistics: Limited number of Main Dealers
14

Food supermarkets value system


Regional Whse

Food Processors

Supermarket

Consumer

Inbound Logistics: Large number of suppliers Vast number of products Process: Retail Outbound Logistics: Vast number of Consumers
15

e-commerce in the value chain


Electronic Value Chain: Reduced time frame Changed cost structures Re-engineered Value Chain: Just-in-time manufacture / Quick response supply: All the techniques adopted to reduce materials handling, investment in stock and warehousing facilities. Efficient document processing: It removes need for paper documents and facilitate the machine based / electronically exchange of information or data.
Competitive advantage

16

17

electronic commerce strategy technologies and applications

e c o Thanks to Allah m m e r c e
18