success strategies for electronic commerce

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Success Strategies for Electronic Commerce e-Business 홍홍홍 홍홍

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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 - PowerPoint PPT Presentation

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Page 1: Success Strategies for Electronic Commerce

Success Strategies for Electronic Commerce

e-Business

홍일유 교수

Page 2: Success Strategies for Electronic Commerce

No. 2e-Biz Strategies

Strategic Opportunities of e-Business 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

Page 3: Success Strategies for Electronic Commerce

No. 3e-Biz Strategies

Case 1: Amazon.com 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

Page 4: Success Strategies for Electronic Commerce

No. 4e-Biz Strategies

Case 2: Dell Computer 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.

Page 5: Success Strategies for Electronic Commerce

No. 5e-Biz Strategies

Dell 의 경쟁력 비결 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

Page 6: Success Strategies for Electronic Commerce

No. 6e-Biz Strategies

Case 3: Federal Express 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

Page 7: Success Strategies for Electronic Commerce

No. 7e-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

Page 8: Success Strategies for Electronic Commerce

No. 8e-Biz Strategies

Case 5: Hewlett Packard 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

Page 9: Success Strategies for Electronic Commerce

No. 9e-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