: Impacts of E-Markets on Business Processes & Organisations Improving B2C Direct Marketing (Bloch, et al.) –Product promotion –New sales channel –Direct savings –Reduced cycle time (e.g., in international trade, upto 90%) One example is TradeNet in Singapore which reduced the administrative time of port-related transactions from days to minutes –Improved customer service –Ease in branding –Customisation –Direct advertising –Improved ordering systems –Changes in market operations Through the use of technology, EC improves direct marketing and also creates new potential markets.

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: Impacts of E-Markets on Business Processes & Organisations Transforming Organisations –Access to information: EC transforms organisations because it allows them to move more quickly with greater access to information. –The changing nature of work It provides employees with greater flexibility. Firms are reducing the number of employees down to a core of essential staff and outsourcing whatever work they can to countries where wages are significantly lower.

: Impacts of E-Markets on Business Processes & Organisations Redefining Organisations –New and improved product offerings –Changes in business models –Improvements and changes in overall manufacturing processes. Example: Build-to-order (pull system): –Based on the specific specifications of a customer, a product (or service) is created that meets their exact needs. –Once the order is paid for, the vendor starts to fulfill it »Real-time demand-driven manufacturing »Virtual manufacturing (multiple, dispersed manufacturing plants as they though as they were all at the same location) »Assembly lines. –Improving the supply chain

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2-7 Exhibit 2.11 Real-Time Demand-Driven Manufacturing

2-8 Redefining Organisations (cont’d) –Impacts on Finance and Accounting E-markets require special finance and accounting systems. Most notable of these are electronic payment systems –Better and more efficient processes in Human Resources EC is changing how people are recruited, evaluated, promoted, and developed EC also is changing the way training and education are offered to employees Companies are cutting training costs by 50% or more, and virtual courses and programs are mushrooming 2.10: Impacts of E-Markets on Business Processes & Organisations

2-9 Managerial Issues 1. What M-Commerce opportunities are available? 2. How do we compete in the digital economy? 3. What about intermediaries? 4. What organisational changes will be needed? 5. Why is it difficult in sustaining competitive advantage? 6. What are the ethical issues involved when you are collecting and storing business and personal information for competitive advantage? 7. How can EC enhance increasing returns in a business?