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CHAPTER 4 INTERNET TECHNOLOGY AND THE DIGITAL FIRM. PowerPoint PPT Presentation

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CHAPTER 4 INTERNET TECHNOLOGY AND THE DIGITAL FIRM.

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Lecture notes in powerpoint presentation

CHAPTER 4

INTERNET TECHNOLOGY AND THE DIGITAL FIRM.


Lecture notes in powerpoint presentation

Reading notes for chapter 4 in the textbook.

Chapter 4 is on the digital firm, electronic commerce and business. We have to read entire chapter carefully and digest the material thoroughly. Internet is a widely used technology today and there is no doubt that Internet and digital organization will shape every aspect of our lives, personal as well as professional in the years ahead.

Section 4.1 elaborates on the benefits of Internet technology to the organizations of any kind. Read section 4.1 carefully and pay attention to Internet business models and concepts like information asymmetry, richness, reach, dynamic pricing and portals. Table 4.1 is a concise summary of Internet business models. Customer-centered retailing, business-to-business electronic commerce, and electronic payment systems also deserve a close and critical look. Marshall Industries is an interesting example of a virtual distribution network and gives us clues about future business models. Examine figure 4.7 carefully.


Lecture notes in powerpoint presentation

Reading notes for chapter 4 in the textbook.

Section 4.3 explores how intranets support electronic business and services like group collaboration, coordination and supply chain management that are vital for any organization. Group collaboration at Internet has new dynamics and implications in product design and delivery as well as organization’s functional areas and supply chain management. Finally management challenges and opportunities deserve careful scrutiny.


Lecture notes in powerpoint presentation

  • Internet technology

  • Standardised communication architecture.

  • Direct communication between related parties.

  • Reduced transaction costs

    • Airline ticket $8$1

    • Banking $1.08$0.13

  • Infrastructure for electronic business.

  • Unbundling the information from the product.


Lecture notes in powerpoint presentation

Business model:

An abstraction of what and how the enterprise delivers a product or service,showing how the enterprise creates wealth.


Lecture notes in powerpoint presentation

Changing Economics Of Information

Information Asymmetry:

Situation in which the relative bargaining power of two parties in a transaction is determined by one party possessing more information essential to the transaction than the other party.

Richness:

Measurement of the depth and detail of information that a business can supply to the customer as well as information the business collects about the customer.

Reach:

Measurement of how many people a business can connect with and how many products it can offer those people.


Internet business models

INTERNET BUSINESS MODELS


Lecture notes in powerpoint presentation

Reverse auction

Consumers submit a bid to multiple

sellers to buy goods or services at a

buyer specified price.

Priceline.com

Importquote.com

Aggregator

Groups of people who want to

purchase a particular product sign up

and then seek a volume discount from

vendors.

Mobshop.com


Lecture notes in powerpoint presentation

Internet Business Models

Dynamic pricing

Pricing of items based on real time interactions between buyers and sellers that determine what an item is worth at any particular moment.

Portal

Web site or other service that provides an initial point of entry to the web or to internal company data.

Banner ad

Graphic display on a web page used for advertising. The banner is linked to the advertiser’s web site so that a person clicking on it will be transported to the advertiser’s web site.

Syndicator

Business aggregating content or applications from multiple sources,packaging them for distribution,and reselling them to third-party web sites.

Pure-play

Business model based solely on the internet.

Clicks-and-mortar

Business model where the web site is an extension of a traditional bricks-and-mortar businesses.


Lecture notes in powerpoint presentation

Electronic Commerce

Business-to-Consumer(B2C)electronic commerce

Electronic retailing of products and services directly to individual consumers.

Business-to-business(B2B)electronic commerce

Electronic sales of goods and services among businesses.

Consumer-to-consumer(C2C)electronic commerce

Consumers selling goods and services electronically to other consumers.

Mobile commerce (m-commerce)

The use of wireless devices, such as cell phones or handheld digital information appliances, to conduct e-commerce transactions over the internet.


Lecture notes in powerpoint presentation

  • Customer-Centered Retailing

  • Direct sales over web

  • Interactive marketing and personalization.

  • M-Commerce and next generation marketing

  • Custom self-service


Lecture notes in powerpoint presentation

Manufacturer

Customer

Distributor

Retailer

Customer

Manufacturer

Retailer

Customer

Manufacturer


Lecture notes in powerpoint presentation

Disintermediation

The elimination of organizations or business process layers responsible

for certain intermediary steps in a value chain.

Reintermediation

The shifting of the intermediary role in a value chain to a new source.


Lecture notes in powerpoint presentation

Web Personalization

User

Web

site

Based on your portfolio and recent market trends, here are some

recommendations.

Welcome back, Steve P.Munson. Check out these recommended titles:

One Minute Manager leading change results-based leadership.

Sarah,

Here are the items you want to bid on: Iron scroll lamp sparkle beach

barbie beatles silk tie.


Lecture notes in powerpoint presentation

Business-to-Business electronic commerce.

Exchange

Type of on-line marketplace where multiple buyers can purchase from multiple sellers using a bid-ask system.

Buyers

Sellers

S1

B1

B2

S2

B3

Exchange

S3

B4

  • Catalogs

  • Sourcing

  • Automated purchasing

  • Processing and fulfillment

S4

B5

S5


Lecture notes in powerpoint presentation

BEFORE

Phone or

fax mill

Arrange

Carrier

Negotiate

price

Schedule

shipments

Fill out bills

of lading

S

h

I

p

m

e

n

t

Bill

Customer

FIBERMARKET EXCHANGE

Reconcile received

goods against

receiving report

AFTER

Recovered

paper

supplier

Fibermarket

exchange

Paper

mill


Marshall industries virtual distribution system

Marshall Industries Virtual Distribution System


Lecture notes in powerpoint presentation

Digital wallet

Software that stores credit card, electronic cash, owner identification,and

address information and provides these data automatically during

electronic commerce purchase transactions.

Micropayment

payment for a very small sum of money, often $1.00 or less.

Electronic cash (e-cash)

Currency represented in electronic form that can be exchanged with

another e-cash user or retailer over the internet.

Smart card

A credit card-size plastic card that stores digital information and that

can be used for electronic payments in place of cash.

Person-to-person payment system

Electronic payment system for people who want to send money to

vendors or individuals who are not set up to accept credit card payments.


Examples of electronic payment systems for e commerce

Examples of electronic payment systems for E-commerce


Lecture notes in powerpoint presentation

Electronic Commerce Information Flow

Business-to-consumer

Business-to-Business

  • Retailer

  • Information

  • Orders

  • Service and support

  • Manufacturers,suppliers,

  • and Distributors

  • Purchases

  • Bids

Buyer

  • Banks

  • Credit checks

  • payment authorization

  • Electronic payments transfer


Lecture notes in powerpoint presentation

  • ORGANIZATION BENEFITS OF INTRANETS

  • Connectivity: accessible from most computing platforms

  • Can be tied to internal corporate systems

  • Can create interactive applications with text,audio,and video

  • Scalable to larger or smaller computing platforms as requirements change

  • Easy to use,universal web interface

  • Low start-up costs

  • Richer,more responsive information environment

  • Reduced information distribution costs


Lecture notes in powerpoint presentation

  • Finance and Accounting

  • General ledger reporting

  • Project costing

  • Annual reports

  • Budgeting

  • Human Resources

  • Corporate policies

  • Employee Savings plans

  • Benefits enrollment

  • On-line training

  • job postings

Corporate

Intranet

  • Manufacturing and production

  • Quality measurements

  • Maintenance schedules

  • Design specifications

  • Machine output

  • Order tracking

  • Sales and Marketing

  • Competitor analysis

  • Price updates

  • promotional campaigns

  • Sales presentations

  • Sales contacts

Functional applications of Intranets


Lecture notes in powerpoint presentation

Intranets and Supply Chain Management

Suppliers

Customers

Planning &

forecasting

Order processing

Procurement

Intranet

Production

Accounting

Shipping

Inventory

Logistics services

Distributors


Lecture notes in powerpoint presentation

  • MANAGEMENT CHALLENGES AND

  • OPPORTUNITIES

  • Unproven Business models

  • Business Process change Requirements

  • Channel Conflicts

  • Legal Issues

  • Security and Privacy


  • Login