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Success Strategies for Electronic Commerce. e-Business 홍일유 교수. Strategic Opportunities of e-Business. Cost efficiency & speed costs of value chain operations backoffice integration with suppliers: supply chain management frontoffice integration with customers: order entry & processing

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Success strategies for electronic commerce

Success Strategies for Electronic Commerce


홍일유 교수

  • Cost efficiency & speed

    • costs of value chain operations

    • backoffice integration with suppliers: supply chain management

    • frontoffice integration with customers: order entry & processing

  • Improved customer service

    • value creation: individualized marketing

    • convenience: 24-hour access to the company website

  • Shortened time-to-market

    • on-line R&D collaboration: Intranet

    • faster product design

e-Biz Strategies

Case 1 amazon com
Case 1:

  • 1995년 Jeff Bezos에 의해 창업된 후, 현재 세계최대 온라인 서점으로 성장

    • It sells more than $3 million a day of books/music

  • In 1999, suffered from a quarterly loss of $323 million on net sales of $676 million

    • The business is not expected to be profitable until 2001

  • Strengths & limitations

    • Strengths: efficiency (e.g., on-line operations) and customer-oriented service (e.g., content, value, etc)

    • Limitations: traditional value, weak revenue stream

e-Biz Strategies

Case 2 dell computer
Case 2: Dell Computer

  • 1980년대초 UT Austin 대학생인 Michael Dell이 기숙사에서 창업

    • “direct sale” model로 기반을 닦은 후, Internet e-Commerce로 성공

    • 특히, B-to-B EC의 대표적 성공기업으로 부상

    • 인터넷을 통한 컴퓨터 판매가 하루 $12 million에 달함 (1999년 기준)

    • 매월 매출성장률 20% (#5 PC maker에서 #2 PC maker로 부상)

  • 인터넷 EC가 Dell사에 제공한 가치:

    • one-to-one customer interactions [enabled strong customer relationships]

    • easier and faster access by customers to the needed information [e.g., researching, configuring, ordering, order-status checking, etc.]

    • improved speed-to-market

    • cost efficiency, resulting from the improved speed and flow of info.

  • Dell’s IT Strategy

    • Internet technology is integrated in the corporate IT strategy.

    • IT is linked with both suppliers and customers.

e-Biz Strategies

Dell의 경쟁력 비결

  • A Winner in Speed

    • 고객이 월요일 오전 9시에 발주하면, 화요일 오후 9시에 배달트럭에 loading

    • speed 개선으로, 재고를 줄이고 경쟁사에 비해 10~15% 가격 낮게 책정 가능

  • Secrets

    • Custom-ordered PCs don’t sit on the shelf in inventory

    • Parts are bought when they are needed, reducing costs

    • Suppliers must be 15 minutes from the Dell factory

    • Suppliers manage & restock their own inventories

    • Total systems are assembled by the shipper

    • Components like monitors never enter a Dell factory

    • Shape demand by recommending configurations

    • Selling on the web cut the # people from 700 to 30

    • Creating custom home pages for biggest corporate clients

e-Biz Strategies

  • 회사 배경

    • 세계 택배시장에서 43% 점유 [1998년 기준]

    • 1980년대부터 정보통신 기술의 혁신적 활용을 통해 강한 고객기반 구축 [운송/물류 최적화]

    • 1998년 지주회사인 FDX 그룹의 설립 및 JIT 운송관리 시스템업체의 인수를 통해, 전자상거래/공급사슬관리 산업에의 진입을 본격화함

    • 주 경쟁사인 UPS와 DHL도 IT업체와의 활발한 전략적 제휴를 통해 계속 추격중

  • IT Strategy

    • Virtual warehousing, electronic commerce, & supply chain management

    • lower inventory and middleman-related costs, supply chain efficiency, ease of order placement, delivery, procurement, and management of suppliers and customers, and focus on core competencies

  • Key focus of e-commerce strategy

    • Allow customers worldwide to place/track an order via the web

e-Biz Strategies

Case 4 cisco
Case 4: Cisco

  • Cisco Connection Online

    • thousands of documents, features, and services

    • launched in July 1996, now doing $5M / day

  • Cisco Marketplace

    • virtual shopping center to make online purchases of h/w & s/w

  • Cisco Commerce Agents

    • speed the process of doing business with Cisco through configuration, pricing, and status agents

  • Technical Assistance

    • get online answers to technical questions

    • easy to find and download software updates

  • New Marketing Strategies

    • direct e-mail campaign to key constituents

    • in-house incentive program for sales reps

  • Recruiting Online

    • Hot Jobs markets hard to fill positions

    • innovative ‘Friends’ ad & matching with new friends

e-Biz Strategies

Case 5 hewlett packard
Case 5: Hewlett Packard

Empower Key


  • HP Parners Online

    • Targets 10,000 distributors & resellers

    • Manage cooperative marketing programs

    • Order HP parts directly online

    • 24-hour, 365-day access to knowledge base

  • Electronic Sales Partner

    • Targets a 5000-person sales force

    • Over 18,000 current documents

    • 50 content-rolls per day

    • 60% of material < 6 months old

    • Useful hit every 5 seconds

    • Saves $125 million / year

  • Electronic Support Center

    • 15,000 pages of information

    • 50,000 customers every day

    • 1 million pages viewed daily

    • 2 million printer drivers monthly (for downloading)

    • Manage calls, patches, updates

    • HP knowledge base

e-Services program

launched recently

e-Biz Strategies

Sample e strategies
Sample E-Strategies

  • Make it easy for customers to do business with you

  • Focus on the end customer for your products and services

  • Redesign your customer-facing business processes from the end customer’s point of view

  • Wire your company for profit: design a comprehensive, evolving electronic business architecture

  • Foster customer loyalty -- the key to profitability in electronic commerce

e-Biz Strategies