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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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Presentation Transcript
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
  • 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

Case 3: Federal Express
  • 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