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INTERNET MARKETING : INTEGRATING ONLINE AND OFFLINE STRATEGIES

INTERNET MARKETING : INTEGRATING ONLINE AND OFFLINE STRATEGIES. Chapter 2 The Internet Value Chain. BUILDING A VALUE CHAIN @ HERMAN MILLER. SIMPLE, QUICK, AFFORDABLE eZconnect. HERMAN MILLER CASE STUDY http://www.hermanmiller.com/. FROM CHANNEL OF DISTRIBUTION TO VALUE CHAIN.

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INTERNET MARKETING : INTEGRATING ONLINE AND OFFLINE STRATEGIES

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  1. INTERNET MARKETING:INTEGRATING ONLINE AND OFFLINE STRATEGIES Chapter 2 The Internet Value Chain

  2. BUILDING A VALUE CHAIN @ HERMAN MILLER SIMPLE, QUICK, AFFORDABLE eZconnect

  3. HERMAN MILLER CASE STUDY http://www.hermanmiller.com/

  4. FROM CHANNEL OF DISTRIBUTIONTO VALUE CHAIN

  5. CORE MARKETING PROCESSES • Supply Chain Management • Product Development And Management • Customer Relationship Management

  6. VALUE-CREATING ACTIVITIES

  7. SUPPLY CHAIN MANAGEMENT PROCESSES • Selecting/Qualifying Desired Suppliers • Establishing/Managing Inbound Logistics • Designing/Managing Internal Logistics • Establishing/Managing Outbound Logistics • Designing Work Flow in Product-Solution Assembly • Running Batch Manufacturing • Acquiring/Installing/Maintaining Process Technology • Order Processing/Pricing/Billing/Rebates/Terms • Managing (Multiple) Channels • Managing Customer Services

  8. ZARA ON YOU TUBEhttp://www.youtube.com/watch?v=xi9cw3IXWS4

  9. ECOMMERCE, US LOW PRIORITY • New York City – 2? • San Francisco • Chicago in September

  10. FROM A TRADITIONAL CHANNEL TO A VALUE CHAIN

  11. HOW DOES DELL DO IT? • Manage Supply Chain as Single Organization • Close Customer Relationships • Customer Segments • Customer Experience and Relationships • Cost Control Creates Customer Value • Speed and Agility • Extensive Metrics in Real Time • Targeting Global Growth

  12. DELL HAS BECOME MORE OPEN

  13. CREATING A VIRTUAL VALUE CHAIN

  14. MULTICHANNEL SERVICE RETAILER

  15. BENEFITS OF INTEGRATED VALUE CHAIN • Customer Centric • Include Both Supply Chain & Channels of Distribution • Extended Enterprise/Permeable Boundaries • Provide Increased Customer Value • Improved Business Processes • New Technology Like RFID • Specialized Value Propositions for Customer Segments

  16. INTEGRATING BUSINESS PROCESSES • Electronic Data Interchange (EDI) • Enterprise Resource Planning (ERP) • Web Services

  17. EDI - Paperless Transaction Processing • Order Entry Generates Electronic PO • Order Electronically Transmitted to Seller • Order Moves into Seller’s Electronic System • Electronic Acknowledgment Sent • System Generates Instructions to Ship from Warehouse • Electronic Invoice Sent to Purchaser • Payment Made by Secure EFT

  18. EDI is ‘OLD TECHNOLOGY’ • Pre-dates Internet • Requires Proprietary Systems and Value-Added Networks • Expensive, Difficult To Use • Internet Has Made Somewhat Easier, Less Expensive To Use

  19. ERP - Integrating Internal Systems • Internal Business Process Integration Necessary To External Systems Like EDI • Automation and Integration Of All Internal Systems • Order Processing, Production Planning & Scheduling, Inventory Control, Distribution, Customer Relationship Management

  20. REASONS FOR ERP • Integrate Financial Data into Single Database • Customer Order Data Moves Electronically/ Seamlessly Through System • Standardize and Speed Up Manufacturing • Reduce Inventory Levels • Standardize and Make Accessible Human Resources Information

  21. WHAT IS ‘WEB SERVICES?’ Communications Between Enterprises Using Standard Hardware and Software Definition http://webopedia.com/TERM/W/Web_services.html “Understanding WS” http://www.webopedia.com/DidYouKnow/Computer_Science/2005/web_services.asp Definition http://www.techweb.com/encyclopedia/defineterm.jhtml;jsessionid=IZII53N4VDDNMQSNDLPSKH0CJUNN2JVN?term=web+services

  22. WHY IS WEB SERVICES IMPORTANT? • Enterprises Can Communicate With One Another Over The Common Platform of the Internet • Independent of Systems Behind Enterprise Firewalls • Do Not Have to Replace Existing Systems • “The Applications Interface, Not The Users” (Webopedia)

  23. AN IMPORTANT APPLICATION OF WEB SERVICES • Applications Programming Interfaces (APIs) • Amazon, eBay and Many Others Use Free APIs That Allow Other Sites to Connect Easily • For Example, Google provides an API That Allows Sites to Use Google Maps on their Site and to Create Informational Overlays on the Maps

  24. USING WEB SERVICES 1 3 2

  25. WEB SERVICES 2.0

  26. BW ON CLOUD COMPUTING http://www.businessweek.com/technology/content/aug2008/tc2008082_445669.htm?link_position=link7

  27. WIDGET CASE STUDY • Royal Caribbean Cruise Lines Needed Better Communication WithTravel Agents • Identify Business Goals • Develop Widgit (Flash-Enabled Window for agent portal) • Promo Campaign (Print, Banner, Emails, Sales Training, Agent Contest) • Updates to Encourage Use Primary business goals:o Reducing emails and faxes to agentso Supporting both brandsFour categories of information delivered most often to travel agents:o Company newso Special offers and deals for agents’ clientso Travel itinerary updates (particularly important during hurricane season)o Weather alerts, which agents typically share with customers Marketing Sherpa Case Study #CS828:

  28. ONE YEAR LATER • About 7,000 Agents Downloaded Widget • 1,000 As Result of Promo Contest Along • More than 90% of agents who downloaded and opened the tool kept it for more than a day • 46% of agents who downloaded the widget have used it for an aggregate of 120 minutes -- a high number because much of the activity takes place after users click through to the CruisingPower website • Users who kept the widget for more than a week average 28 interactions per week • 54% of users are accessing the Royal Caribbean offers page • 36% of users are accessing the Celebrity Cruises offers page

  29. FIND WIDGETS OR MAKE YOUR OWN http://widgets.yahoo.com/

  30. THE RFID FUTURE Transponder In an Automobile Cow With RFID Chip

  31. eRETAIL ASSOCIATION SCHEMATIC

  32. MORE APPS AS CHIP PRICES DROP

  33. MANOR-SWITZERLAND’S LARGEST RETAILER http://www.rfidjournal.com/article/articleview/4347/1/1/

  34. DEVELOPMENT CENTER IN EUROPE http://www.future-store.org/fsi-internet/html/en/455/index.html

  35. WORKING SUCCESSFULLY IN TRIALS In 5,000 Walgreen Stores? http://www.goliathsolutions.com/

  36. BENEFITS OF BUSINESS PROCESS TRANSFORMATION • Velocity (speed) • Visibility (transparency) • Variability (choice) • Volume (scale)

  37. SUMMARY • Speed, Price, Quality (not necessarily in that order) Are Key Customer Requirements • Virtual Value Chains Provide Them By • Cutting Transaction Costs • Reducing Error Rates • Cutting Order Cycle Time • Set Objectives Based On Customer And Corporate Requirements • Use Appropriate Metrics To Evaluate • Integration Of Systems INSIDE The Enterprise And BETWEEN Enterprises Is Key • RFID Technology Will Speed/Give Access • Cloud Computing – Next Major Development?

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