1. Success Strategies for Electronic Commerce e-Business 홍일유 교수

2. No. 1 e-Biz Strategies  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

3. No. 2 e-Biz Strategies  Case 1: Amazon.com ● 1995 년 Jeff Bezos 에 의해 창업된 후, 현재 세계최대 온라인 서점으로 성장 - It sells more than $3 million a day of books/music ● In 1999, Amazon.com 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

4. No. 3 e-Biz Strategies  Case 2: Dell Computer ● 1980 년대초 UT Austin 대학생인 Michael Dell 이 기숙사에서 창업 - “direct sale” model 로 기반을 닦은 후, Internet e-Commerce 로 성공 - 특히, B-to-B EC 의 대표적 성공기업으로 부상 - 인터넷을 통한 컴퓨터 판매가 하루 $12 million 에 달함 (1999 년 기준 ) - 매월 매출성장률 20% (#5 PC maker 에서 #2 PC maker 로 부상 ) ● 인터넷 EC 가 Dell 사에 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.

5. No. 4 e-Biz Strategies  Dell 의 경쟁력 비결 ● A Winner in Speed - 고객이 월요일 오전 9 시에 발주하면, 화요일 오후 9 시에 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

6. No. 5 e-Biz Strategies  Case 3: Federal Express ● 회사 배경 - 세계 택배시장에서 43% 점유 [1998 년 기준 ] - 1980 년대부터 정보통신 기술의 혁신적 활용을 통해 강한 고객기반 구축 [ 운송 / 물류 최적화 ] - 1998 년 지주회사인 FDX 그룹의 설립 및 JIT 운송관리 시스템업체의 인수를 통해, 전자상거래 / 공급사슬관리 산업에의 진입을 본격화함 - 주 경쟁사인 UPS 와 DHL 도 IT 업체와의 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

7. No. 6 e-Biz Strategies  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

8. No. 7 e-Biz Strategies  Case 5: Hewlett Packard ● 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 Empower Key Relationships e-Services program launched recently

9. No. 8 e-Biz 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