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E-Business Management: A Primer

This focus is driven by the adoption of the web as a new channel for product distribution, marketing, and interaction with customers.
The web as the enabler for enterprise integration
1. The enterprise information system supports suppy-chain processes and process coordination within and between enterprises.
  1. The infrastructure includes: 1. A global information network for supporting various electronic services such as brokerage and contrating payment and banking transaction processing. 2.. Electronic access to external data. 3. Electronic connections to customers that support such activities as filling orders and customers service.
  2. !. Pre-software and system level, where software objects and components have been used as the building blocks to make the functional components portable and inter-operable.
  3. 2. Pre-process and application level, where business processes and applications, such as order fulfillment, customer services, etc. have been managed as separate modiles, sometimes run at remote sites by applications service providers (ASPs)
  4. 3. The enterprise level, where business units can be quickly assembled to form virtual enterprises to explore a window of market opportunities.
Organization, designs, information sharing, and coordination
1. Organizations are moving toward flatter and more adaptive strictures, cometimes referred to as the market oriented networked organizations (MNOs)
  1. Succesfully implementing e-business technology reduces transaction costs, and, therefore, the boundaries between markets and internal organizations are shrinking (Williamson,, 1986) in favor of more market orientation.
  2. A supply-chain network is a type of MNO when the business units are assembled through market forces.
  3. This improves e-business management by 1. Reducing production costs through lower procurement and distribution costs. 2. Better utilization of resources through enterprise specialization. 3. Greater integration of supply-chain activities.
  4. Bullwhip effect, in which a slight variation in demand at the consumer end gets increasingly amplified and results in wild swings at the supplier end.
Multi-channel management
1. WEB ENHANCES TRADITIONAL CHANNELS. This is a commonly used crossmarketing model, Major TV networks, for instance, often use the Web to provide more detailed coverage than their traditional channels, thus enhancing their brand and their traditional channels
2. TRADITIONAL CHANNELS PROMOTE THE WEB CHANNEL. All e-commerce companies use traditional media to promote their brands. Some traditional retailers put kiosks in their stores to provide Web access to assist any need for additional product search, or allow customers to return goods purchased online to local stores.
3. WEB CHANNEL USED TO EXPLORE NEW MARKETS. Because of the specific demographics of web users, some companies use the web to reach out to segments of the market they don't normally reach. Furthermore, the web enables an e-business to reach out to consumers around the world.
4. ADD NEW PRODUCT LINES ONLY FOR THE WEB. For the same reason, some companies use the web to sell new products. This is especially effective when the business traditionally depends on powerful dealers/distributors and, therefore, selling the same products direct is not an immediate option. Also, major consumer goods companies have found the web an effective channel to test market new product lines.
5. INTEGRATE THE WEB AND TRADITIONAL CHANNELS. This is the "click mortar" and model, which is aiming at combining the best of traditional and web channels. Pure dot-corn companies need more traditional distribution channels to provide more efficient logistics and better customer services.. Traditional channels need to add the web channel to gain new capabilities for searching, navigation, and interactive, hyperlinked information retrievals.
6. CANNIBALIZE FRADITHMAL CHANNELS. Sometimes the new Web channel Lakes over the major share of the business. When this is inevitable in a given industry, a company might as well cannibalize the resources and focus its effort on the web channel, rather than been eaten up by competitors' aggressive web channels. This happens in the industry where the web will inevitably become the main channel.
7. BUILDING ALLIANCES BETWEEN TRADITIONAL AND INTERNET COMPANIES. The alliances recently built between car-markers and pure e-commerce companies, i.e, belong to this model, which stems from the desire to build synergy between the web and traditional channels.

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E-Business Management: A Primer

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