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Topic One – What is E-Business
Introduction
E-Business is an entire business philosophy:
a)
redefines existing business practices
b)
creates new opportunities for businesses
At the core of e-business is VALUE CREATION. Creating value through the
supply chain, through the organization and through the DCM and onto the
customer.
What is E-Business
-
a new business infrastructure which aims to improve efficiency in all
aspects of the business, aiming to add value to all supply chain partners,
stakeholders, and creating value for customers by employing technology,
systems, processes, software, and new customer interfaces.
E-Business Process and System
E-Business has three basic stages:
1.
STRATEGY DEVELOPMENT
a)
e-Business model development
b)
e-Business strategy creation
c)
Knowledge Management
2.
IMPLEMENTATION STAGE
a)
Design and Architecture
b)
E-Implementation
3.
EVALUATION STAGE
a)
Performance assessment
STAGE ONE – STRATEGY DEVELOPMENT
-
this process is iterative in nature
-
the continuos planning with feedback model is the best choice
1.
Knowledge Building and Capability Evaluation
2.
E-business design
3.
E-Business blueprint
4.
Application Development and Deployment
·
very important to collate the collective knowledge of the organization and
then formulating a strategy, this allows for a meaningful strategy!
STAGE TWO – IMPLEMENTATION
E-business architecture contains three primary components:
1.
SCM = Supply Chain Management
2.
EIA = Enterprise Infrastructure Applications
3.
DCM = Demand Chain Management
- E-Implementation Issues also need to be considered which relate directly to
the strategy phase
STAGE THREE – PERFORMANCE ASSESSMENT
1.
Identify what needs to be measured
2.
Link to strategy and business model
3.
Measurement systems
4.
Feedback mechanisms
5.
Follow up and corrective action
E-Business SUMMARY
-
E-business aims to deal with challenges in a more efficient and effective
way in both reducing costs and increasing value creation.
Pursuit to success is characterized by;
1.
The creation and maintenance of customer loyalty
2.
The utilization of information in a more effective manner
3.
The building of networks with like-minded businesses
4.
The reduction of costs – both costs of goods and overheads
The VALUE concept
-
not only to end customer but to ALL customers and partners and
stakeholders
-
value add pertains to:
-
End customers
-
Intermediate customers
-
Employees
-
Suppliers
-
Shareholders
-
Business Itself
E-Business helps leverage and create this addition value!
RISK ISSUES
-
cost structures are changing
-
additional tax burden
-
cost of compliance
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