P3 Business Analysis

2 Section E: Information Technology E1. Principles of E-business E2. E-business application – upstream supply chain management E3. E-business application – downstream supply chain management E4. E-business application: customer relationship management Designed to give you the knowledge and application of:

3  Discuss the meaning and scope of e-business.  Advise on the reasons for the adoption of e-business.  Discuss and evaluate the main business and marketplace models for delivering e-business.  Advise on how the organisation can utilise information technology to help it deliver a selected strategy. E1: Principles of E-business Learning Outcomes

4 Adopting E-business E-commerce: organisation’s dealings with external parties through electronic means. Business 1 Government Consumer 1 Consumer 2 Not-for-profit Business 2 B2B B2G B2C NFP2C C2C G2G or government to government is when governments interact with each other Convergence technology: created by combining 2 or more technologies

5 Scope of e-business Supply chain management Enterprise resource management Customer relationship management E-business covers: Why adopt e-business models?  Higher customer reach  Open new markets  Reduction of cost  Improved efficiency with automated systems  Improved marketing and promotion opportunities  Brand enhancement  Strengthen competitive position  Convenience in conducting business  Reduces vulnerability of paper-based records

6 Market place channel structures  Process of removing intermediaries in supply chain  Reduces costs of selling through channels Disintermediation Seller Customer Intermediary Channel structures: modes through which a firm sells goods/services to its customers. Types of channel structures Disintermediation Reintermediation Countermediation

7  Process of creation of a new intermediary to compete with existing intermediaries  Could also happen through possible partnerships with independent intermediaries Countermediation Customer Seller Intermediary New intermediary Seller Customer Intermediary  Process of reintroduction of an intermediary in cases where disintermediation has occurred  Removes higher cost of shipping and post-sales activities Reintermediation Market place channel structures

8 E-business strategy  More than creating a website; involves changing business models to suit the internet  E-business applications affect more than one department  Decision must be taken at the top management level E-business strategy Iterative development efforts Focus is on adapting and responding to changes in external environment Customer oriented strategy Single development efforts Focus is to forecast the future and then develop long-term plans Production oriented strategy Traditional strategy

9  Based on entity’s current performance, SWOT analysis, channels, competition, etc  Define objectives, how to meet them and allocate resources  Long-term plan for development of the entity  Flexible, suitable, acceptable and feasible What makes a good e-business strategy Good e-business strategy

10 Recap  Discuss the meaning and scope of e-business.  Advise on the reasons for the adoption of e-business.  Discuss and evaluate the main business and marketplace models for delivering e-business.  Advise on how the organisation can utilise information technology to help it deliver a selected strategy.