1. Lesson 4 E-COMPETENCE

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3. SESSION OBJECTIVES COMPETENCE AND PERFORMANCE STRATEGIC COMPETENCE ORGANISATIONAL COMPETENCE INFORMATION SYSTEMS

4. GERALD CORE COMPETENCIES: – IMBUED IN EXPOSSIBLE DIFFICULT TO DUPLICATE – WHAT COMPANY DOES BETTER THAN COMPETITION – EMBEDDED INTO COMPANY OPERATIONS – LIMITED TO KEY SUPPLY CHAIN ROLE – SOURCE OF UNIQUE CUSTOMER VALUE – FLEXIBLE – BASIS FOR DEFINING MARKET OPPORTUNITIES

5. WAL-MART COMPETENCE FOCUS FROM START ON INVENTORY MANAGEMENT JUST IN TIME ORIENTATION CROSS DOCKING FROM GOODS INWARDS TO GOODS OUTWARDS ACHIEVES 3% COST ADVANTAGE OVER COMPETITION EVOLVED EDI SYSTEM USING SATELLITE PARTNERSHIP WITH PROCTER & GAMBLE

6. FIGURE 4:1 A QUALITATIVE MODEL OF COMPETENCIES TO SUPPORT AND DELIVER AN E-COMMERCE MARKETING STRATEGY

7. STRATEGIC COMPETENCE DEFINES HOW MARKET EXPLOITED BY INTERNAL CAPABILITIES GOSH 4 OPPORTUNITIES: – DIRECT LINK WITH CUSTOMERS (E.G. STAPLES ON-LINE) – USE TECHNOLOGY TO BYPASS OTHERS (AMAZON.COM) – DEVELOP AND DELIVER NEW PRODUCTS OR SERVICES (CHARLES SCHWAB) – BECOME DOMINANT PLAYER IN SPECIFIC CHANNEL (DELL COMPUTERS)

8. NEED LEADER WITH STRATEGIC VISION: – BILL GATES (MICROSOFT) – LEWIS PLATT (HEWLETT PACKARD) – ANDY GROVE (INTEL) – JERRY WANG (YAHOO) – LOUIS GERSTNER (IBM) NEED TO FINANCE: – HARDWARE / SOFTWARE SYSTEMS – UP-DATE WEB-SITE FREQUENTLY – INTEGRATION WITH INTERNAL INFORMATION SYSTEMS – PROMOTION TO BUILD AWARENESS / VISITS

9. INNOVATION TO CONTINUALLY UP-DATE AND STAY AHEAD OF COMPETITION IBM 25% OF TOTAL R&D BUDGET WORKFORCE TO SUPPORT TECHNICAL RELIABILITY AND QUALITY OF SERVICE MAY NEED NEW ENVIRONMENT TO CREATE SATISFACTION FOR “TECHIES”

10. QUALITY ISSUES ARE SAME AS TERRESTRIAL FIRMS ORDER FULFILMENT, RESOLVING QUESTIONS, SHIPMENT ACCURACY, HANDLING RETURNS ON-LINE CUSTOMERS INEXPERIENCE INCREASING ERRORS WEB-SITES INVOLVING LIVE RESPONSE OFTEN BY SUB-CONTRACTING TO OTHER PROVIDER

11. PRODUCTIVITY IN RELATION TO CUSTOMER INTERFACE AND LOGISTICS DELL COMPUTING EXEMPLAR ORDER SYSTEM MULTITUDE OF ON-LINE TOOLS FOR ANSWERING QUESTIONS AND PERSONALISED CONFIGURATION OF COMPUTER INFORMATION SYSTEM INTEGRATED INTO EXISTING SYSTEMS NOT OVERNIGHT ACHIEVEMENT, OFTEN BUILT ON YEARS OF I.T. INVESTMENT

12. MARSHALL INDUSTRIES DISTRIBUTOR OF COMPONENTS NEW VISION OF “FREE, PERFECT, NOW” FLATTENING AND RESTRUCTURING I.T. DEVELOPMENT BASED ON COMMERCIALLY AVAILABLE HARDWARE / SOFTWARE INTRANET DOCUMENTATION SYSTEM

13. ON-LINE ORDER SYSTEM USING EDI MOVED ONTO INTERNET 24 HOUR ON-LINE ACCESS TO MARSHALL ENGINEERS TRAINING SYSTEMS AND BROADCAST STATION

14. MARKETING STYLE TRANSACTIONAL VERSUS RELATIONSHIP ORIENTATION ISSUE OF LONG TERM LOYALTY IN PLACE OF EMPHASIS ON TRANSACTIONS OTHER ISSUE OF CUSTOMER REQUIRING STANDARD GOODS VERSUS INNOVATIVE GOODS

15. FIGURE 4:2 AN ALTERNATIVE CUSTOMER E-COMMERCE MARKET NEED MATRIX High Low TransactionalRelationship Entrepreneurial- transactional e- commerce need Entrepreneurial- relationship e- commerce need Conservative- transactional e- commerce need Conservative- relationship e- commerce need Customer Innovation Need Purchase Orientation Need of Customers

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