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Transcript of Module 3 MIS
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KNOWLEDGE MANAGEMENT
The Knowledge Management Landscape
Important Dimensions of Knowledge
Organizational Learning and Knowledge Management
The Knowledge Management Value Chain
Types of Knowledge Management Systems
Enterprise-Wide Knowledge Management Systems
Structured Knowledge Systems
Semi structured Knowledge Systems
Knowledge Network Systems
Supporting Technologies: Portals, Collaboration Tools and Learning
Management Systems
Knowledge Work Systems
Knowledge Workers and Knowledge WorkRequirements of Knowledge Work Systems
Examples of Knowledge Work Systems
Intelligent Techniques
Capturing Knowledge: Expert Systems
Organizational Intelligence: Case-Based ReasoningFuzzy Logic Systems
Neural Networks
Genetic Algorithms
Hybrid AL Systems
Intelligent Agents
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The Knowledge Management Landscape
Sales of enterprise content management software for knowledge managementexpected to grow 15 percent annually through 2012
Information Economy 55% U.S. labor force: knowledge and information workers 60% U.S. GDP from knowledge and information sectors, like finance and
publishing.
Substantial part of a firms stock market value is related to intangible assets: knowledge,brands, reputations, and unique business processes
Knowledge-based projects can produce extraordinary ROI Enterprise Knowledge Management Software Revenues, 2005-2012
Important dimensions of knowledge
o Knowledge is a firm asset Intangible Creation of knowledge from data, information, requires organizational
resources
As it is shared, experiences network effectso Knowledge has different forms
May be explicit (documented) or tacit (residing in minds) Know-how, expertise, skill
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How to follow procedure Knowing why things happen (causality)
o Knowledge has a location Cognitive event Both social and individual Sticky (hard to move), situated (enmeshed in firms culture), contextual
(works only in certain situations)
o Knowledge is situational Conditional: Knowing when to apply procedure Contextual: Knowing circumstances to use certain tool
Organizational learning
o Process in which organizations learn Gain experience through collection of data, measurement, trial
and error, and feedback Adjust behavior to reflect experience
Create new business processes
Change patterns of management decision making
Knowledge management: Set of business processes developed in an organization
to create, store, transfer and apply knowledge
Knowledge management value chain: Each stage adds value to raw data and
information as they are transformed into usable knowledge
o Knowledge acquisitiono Knowledge storageo Knowledge disseminationo Knowledge application
Knowledge acquisition
o Documenting unstated and clear knowledgeo Storing documents, reports, presentationso Unstructured documents (e.g., e-mails)o Developing online expert networkso Creating knowledgeo Tracking data from TPS and external sources
Knowledge storage
o Databaseso Document management systems
Knowledge dissemination
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o Push e-mail reportso Search engineso Collaboration toolso An overflow of information?o Training programs, informal networks, and shared management experience help
managers focus attention on important information
Knowledge application
o To provide return on investment, organizational knowledge must becomesystematic part of management decision making and become situated in
decision-support systems
o New business practiceso New products and serviceso New markets
New organizational roles and responsibilities
o Chief knowledge officer executiveso Knowledge managerso Communities of practice (COPs)
Informal social networks of professionals and employees within andoutside firm who have similar work-related activities and interests
Activities include education, online newsletters, sharing experiences andtechniques
Facilitate discussion Reduce learning efforts of new employees
Enterprise-Wide Knowledge Management Systems
Three major types of knowledge management systems:
o Enterprise-wide knowledge management systems General-purpose firm-wide efforts to collect, store, distribute, and apply
digital content and knowledge
o Knowledge work systems (KWS) Specialized systems built for engineers, scientists, other knowledge
workers charged with discovering and creating new knowledgeo Intelligent techniques
Diverse group of techniques such as data mining used for various goals:discovering knowledge, distilling knowledge (setting new rules for
computer programs), discovering optimal solutions
Three major types of knowledge in enterprise
o Structured documents
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Reports, presentations Formal rules
o Semistructured documents E-mails, videos
o Unstructured, tacit knowledge80% of an organizations business content is semistructured or unstructured
Enterprise-wide content management systems
o Help capture, store, retrieve, distribute, preserve Documents, reports, best practices Semistructured knowledge (e-mails)
o Bring in external sources News, research
o Tools for communication and collaborationo An Enterprise Content Management System
An enterprise content management system has capabilities for classifying,
organizing, and managing structured and semi-structured knowledge and
making it available throughout the enterprise
Key problem Developing classification
o Knowledge objects must be tagged with categories for retrievalDigital asset management systems
o Specialized content management systems for classifying, storing,managing unstructured digital data
o Photographs, graphics, video, audioKnowledge network systems
Provide online directory of corporate experts in well-defined knowledge domains
Use communication technologies to make it easy for employees to find
appropriate expert in a company
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May systematize solutions developed by experts and store them in knowledgedatabase
Best-practices
Frequently asked questions (FAQ) repository
An Enterprise Knowledge Network System
Major knowledge management system vendors include powerful portal andcollaboration technologies
Portal technologies: Access to external information News, research Access to internal knowledge resources
Collaboration tools E-mail Discussion groups Blogs Wikis
A knowledge network
maintains a database of
firm experts, as well as
accepted solutions to
known problems, and
then facilitates the
communication between
employees looking for
knowledge and experts
who have that knowledge.
Solutions created in this
communication are then
added to a database of
solutions in the form of
FAQs, best practices, or
other documents.
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Social bookmarking Learning management systems
Provide tools for management, delivery, tracking, and assessment of varioustypes of employee learning and training
Support multiple modes of learning CD-ROM, Web-based classes, online forums, live instruction, etc.
Measures learning effectivenessKnowledge Work Systems
Knowledge work systems Systems for knowledge workers to help create new knowledge and ensure that
knowledge is properly integrated into business
Knowledge workers Researchers, designers, architects, scientists, and engineers who create
knowledge and information for the organization
Three key roles: Keeping organization current in knowledge Serving as internal consultants regarding their areas of expertise Acting as change agents, evaluating, initiating, and promoting change
projects
Requirements of knowledge work systems Substantial computing power for graphics, complex calculations Powerful graphics, and analytical tools Communications and document management capabilities Access to external databases User-friendly interfaces Optimized for tasks to be performed (design engineering, financial
analysis)
Examples of knowledge work systems
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CAD (computer-aided design): Automates creation and revision ofengineering or architectural designs, using computers and sophisticated
graphics software
Virtual reality systems: Software and special hardware to simulate real-life environments
E.g. 3-D medical modeling for surgeons VRML (Virtual Reality Modeling Language): Specifications for
interactive, 3D modeling over Internet
Investment workstations: Streamline investment process andconsolidate internal, external data for brokers, traders, portfolio
managers
Intelligent Techniques
Intelligent techniques: Used to capture individual and collective knowledge and toextend knowledge base
To capture tacit knowledge: Expert systems, case-based reasoning, fuzzy logic Knowledge discovery: Data mining Generating solutions to complex problems Automating tasks: Intelligent agents
Artificial intelligence (AI) technology: Computer-based systems that copy human behavior
Expert systems: Capture tacit knowledge in very specific and limited domain of human expertise Capture knowledge of skilled employees as set of rules in software system that
can be used by others in organization
Typically perform limited tasks that may take a few minutes or hours, e.g.: detecting malfunctioning machine Determining whether to grant credit for loan
How expert systems work Knowledge base: Set of hundreds or thousands of rules Inference engine: Strategy used to search knowledge base
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Forward chaining: Inference engine begins with information entered byuser and searches knowledge base to arrive at conclusion
Backward chaining: Begins with hypothesis and asks user questions untilhypothesis is confirmed or disproved
Successful expert systems Countrywide Funding Corporation in Pasadena, California, uses expert system to
improve decisions about granting loans
Con-Way Transportation built expert system to automate and optimize planningof overnight shipment routes for nationwide freight-trucking business
Most expert systems deal with problems of classification Have relatively few alternative outcomes
Possible outcomes are known in advance
Many expert systems require large, lengthy, and expensive development andmaintenance efforts
Hiring or training more experts may be less expensive Case-based reasoning (CBR)
Descriptions of past experiences of human specialists, represented as cases,stored in knowledge base
System searches for stored cases with problem characteristics similar to newone, finds closest fit, and applies solutions of old case to new case
Successful and unsuccessful applications are grouped with case Stores organizational intelligence: Knowledge base is continuously expanded and
refined by users
CBR found in Medical diagnostic systems Customer support
How Case-Based Reasoning Works
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Fuzzy Logic Systems:
o Fuzzy logic is a rule-based technology that can represent such imprecision bycreating rules that use approximate or subjective values.
o For Ex. fuzzy logic would represent various temperatures in a computerapplication to control room temperature automatically.
o For Ex. Mitsubishi heavy industries in Tokyo have been able to reduce the powerconsumption of its air conditioners by 20% by implementing control programs in
Fuzzy logic.
Neural networks
o Find patterns and relationships in massive amounts of data that are toocomplicated for human to analyze
o Learn patterns by searching for relationships, building models, and correctingover and over again models own mistakes
o Used in medicine, science, and business for problems in pattern classification,prediction, financial analysis, and control and optimization
o Neural network designers seek to put intelligence into the hardware in the formof generalized capabilities to learn.
Case-based reasoning represents
knowledge as a database of past
cases and their solutions. The
system uses a six-step process to
generate solutions to newproblems encountered by the
user.
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o How a Neural Network Works
Genetic algorithms Useful for finding optimal solution for specific problem by examining very large
number of possible solutions for that problem
Conceptually based on process of evolution Search among solution variables by changing and reorganizing
component parts using processes such as inheritance, mutation, and
selection
Used in optimization problems (minimization of costs, efficient scheduling,optimal jet engine design) in which hundreds or thousands of variables exist
Able to evaluate many solution alternatives quickly Hybrid AI systems
Genetic algorithms, fuzzy logic, neural networks, and expert systems integratedinto single application to take advantage of best features of each
E.g., Matsushita neurofuzzy washing machine that combines fuzzy logic withneural networks
Intelligent agents Work in background to carry out specific, repetitive, and predictable tasks for
user, process, or software application
A neural network uses rules it
learns from patterns in data
to construct a hidden layer of
logic. The hidden layer then
processes inputs, classifying
them based on the experience
of the model. In this example,
the neural network has been
trained to distinguish between
valid and fraudulent credit
card purchases.
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Enterprise Applications and Business Process Integration
ENTERPRISE SYSTEMS
WHAT ARE ENTERPRISE SYSTEMS
HOW ENTERPRISE SYSTEMS WORK
BUSIENSS VALUE OF ENTERPRISE SYSTEMS
SUPPLY CHAIN MANAGEMENT SYSTEMS
THE SUPPLY CHAIN
INFORMATION AND SUPPLY CHAIN MAANGEMENT
SUPPLY CHAIN MANAGEMENT APPLICATIONS
SUPPLY CHAIN MANAGEMENT AND THE INTERNET
BUSINESS VALUE OF SUPPLY CHAIN MANAGEMENT SYSTEMS
CUSTOMER RELATIONSHIP MANAGEMENT SYSTEMS
CUSTOMER RELATIONSHIP CUSTOMER RELATIONSHIP MANAGEMENT
APPLICATIONSOPERATIONAL AND ANALYTICAL CRM
BUSINESS VALUE OF CRMS
ENTERPRISE INTEGRATION TRENDS
EXTENDING ENTERPRISE SOFTWARE
SERVICE PLATFORMS AND BUSINESS PROCESS MANAGEMENT
MANAGEMENT OPPORTUNITIES, CHALLENGES AND SOLUTIONS
OPPORTUNITIES
MANAGEMENT CHALLENGES
SOLUTION GUIDELINES
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ENTERPRISE SYSTEMS
What Are Enterprise Systems?
o Enterprise System Architecture
How Enterprise Systems Work
o Enterprise Systems: Interdependent software modules with a common central database that
support basic internal business processes for finance and accounting,
human resources, manufacturing and production, and sales and
marketing
Here an example of a process map illustrating the procurement processfor a new piece of equipment used by SAP, the leading enterprise
software vendor.
Enables data to be used by multiple functions and business processes forprecise organizational coordination and control.
If the enterprise software does not support the way their businessprocesses, companies can rewrite some of the software to support the
way their business processes work.
Major enterprise software vendors include SAP, Oracle, PeopleSoft andBaan.
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o Process Map for Procuring New Equipment
Business Value of Enterprise Systemso A more uniform organization :
Companies can use enterprise systems to support organizationalstructures that were not previously possible or to create a more
disciplined organizational culture.
They might use enterprise systems to integrate the corporation acrossgeographic boundaries to create a more uniform culture. Ex. Nestle
o More efficient operations and customer-driven business processes By integrating separate business processes in sales, production, finance
and logistics, the entire organization more efficiently respond tocustomer requests for products or information, forecast new products,
and build informed about producing only what customers have ordered.
Ex. Emami has reduced time to prepare final report by 30 to 35 days afterinstalling SAP.
o Firm wide information for improved decision making :
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o In addition to monitoring operational activities such as tracking the status oforders and inventory levels, enterprise systems also improve organization-wide
reporting and decision making.
o SAPs enterprise software includes analytics for profitability management,product and service cost management, overhead cost management, risk
management, balanced scorecard, value-based management investment
planning, and other tools for giving managers a comprehensive view of firm
performance.
SUPPLY CHAIN MANAGEMENT SYSTEMS
The Supply Chain
o Supply chain management refers to the close linkage & coordination of activitiesinvolved in buying, making & moving a product.
o Network of organizations and business processes for procuring raw materials,transforming into products, and distributing them to customers
o Materials, information, and payments flow through the supply chain in bothdirections.
Supply chain management:
o Coordination of business processes to speed information, product, and fundflows up and down a supply chain to reduce time, redundant effort, and
inventory costs
o It links suppliers, manufacturing plants, distribution centers, retail outlets &customers to supply goods and services from source through consumption.
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Scheduling system for minimizing inventory by having components arriveexactly at the moment they are needed and finished goods shipped as
soon as they leave the assembly line
o Bullwhip effect: Distortion of information about the demand for a product as it passes
from one entity to the next across the supply chain
The bullwhip can be tamed by reducing uncertainties about demand andsupply when all members of the supply chain have accurate and up-to-
date information.
o Supply Chain Management Applications The central objective of supply chain management systems is information
visibility open and rapid communication and information sharing
between members of the supply chain.
Supply chain management systems: Automate flow of informationbetween company and supply chain partners
Supply chain planning systems: Generate demand forecasts for a product(demand planning) and help develop sourcing and manufacturing plansfor that product
o Supply chain execution systems: Manage the flow of products through distribution centers and
warehouses to ensure that products are delivered to the right locations in
the most efficient manner
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One of the most important and complex supply chain planningfunctions is demand planning, which determines how much product a
business needs to make to satisfy all of its customers demands.
o Supply Chain Performance MeasurementMetrics for measuring supply chain performance:
Fill rate (the ability to fill orders by the due date) Average time from order to delivery The number of days of supply in inventory Forecast accuracy The cycle time for sourcing and making a product
o Supply Chain Management and the Internet
o Push-based model: Production master schedules based on forecasts of demand for products,
and products are pushed to customers
o Pull-based model: Supply chain driven by actual customer orders or purchases The difference between push and pull-based models is summarized by
the slogan Make what we sell, not sell what we make.
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Business Value of Supply Chain Management Systems: Companies that excel in supply
chain management have been found to produce higher rates of growth in their market
value than the average for their industries.
o Improved customer service and responsivenesso Cost reductiono Cash utilization
Customer Relationship Management Systems
Customer Relationship Management
o Business and technology discipline for managing customer relationships tooptimize revenue, profitability, customer satisfaction, and customer retention
o CRM also focuses on ways of retaining profitable customers and maximizinglifetime revenue from them.
CRM systems:
o CRM systems were designed to address these problems by providing informationand by providing information and tools to deliver superior customer experience
and to maximize customer lifetime value from the firm.
o Capture and integrate customer data from all over the organizationo Consolidate and analyze the datao Distribute results to various systems and customer touch points across the
enterprise
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Customer Relationship Management (CRM) Softwareo Can range from niche tools to large-scale enterprise applications that capture
countless interactions with customers, analyze them with sophisticated
reporting tools
o Can link to other major enterprise applications, such as supply chainmanagement
o Can include modules for PRM and employee relationship management (ERM)o Customer Relationship Management Systems typically provide software and
online tools for sales, customer service and marketing.
o Typically include capabilities for Sales force Automation (SFA):
Sales force automation modules in CRM systems help sales staff
increase their productivity by focusing sales efforts on the most
profitable customers, those who are good candidates for sales
and services.
Customer service:Customer service modules in CRM systems provide information
and tools to make call centers, help desks and customer support
staff more efficient.
Marketing:CRM systems support direct-marketing campaigns by providing
capabilities for capturing prospect and customer data.
Cross-selling is the marketing of matching products to customers.
Up-selling is the marketing of higher-value products or services to
new and existing customers.
Bundling is one kind of cross-selling in which a combination of
products is sold as a bundle at a price lower than the total cost of
the individual products.
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o CRM Software Capabilities
o Customer Loyalty Management Process Map
o Operational and Analytical CRM Operational CRM:
Customer-facing applications, such as sales force automation, call
center and customer service support, and marketing automation
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Examples: Campaign management, e-marketing, account andcontact management, lead management, telemarketing,
teleselling, e-selling, field sales
Analytical CRM:Applications that analyze customer data generated by operational
CRM applications to provide information for improving business
performance
Analytical CRM applications are based on data warehouses that
consolidate the data from operational CRM systems and customer
touch points for use with online analytical processing, data
mining, and other data techniques.
Examples: Develop customer segmentation strategies and
customer profiles; analyze customer or product profitability;
identify trends in sales length cycle; analyze leads generated and
conversion rates
Analytical CRM Data Warehouse
o Business Value of Customer Relationship Management Systems Increased customer satisfaction More effective marketing and reduced direct marketing costs Lower costs for customer acquisition and retention Increased revenue from identifying most profitable customers and
segments for marketing, cross-selling, up-selling
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Reduce churn rate: Number of customers who stop using or purchasingproducts or services from a company
ENTERPRISE INTEGRATION TRENDS
Service Platforms and Business Process Management
o Service Platform: Integration of multiple applications from multiple businessfunctions, business units, or business partners to deliver a seamless experience
for the customer, employee, manager, or business partner
Business Process Management:
o A methodology for dealing with the organizations need to change its businessprocesses continually to remain competitive
o It includes tools for creating models of improved processes that can betranslated into software systems.
o SAPs version of cross-application services is called xApps. It enables businessesto build and automate new cross-functional, end-to-end processes at the top of
existing applications, regardless of the technology platform they use.
MANAGEMENT OPPORTUNITIES, CHALLENGES AND SOLUTIONS
Management Opportunities:
o Improvement of process coordination and management decision makingo Reductions in inventory costs, order-to-delivery time, and more efficient
customer response and higher product and customer profitability
Management Challenges:
o High total cost of ownershipo Organizational change requirementso Realizing strategic value
Solution Guidelines:
o Look at business objectives firsto Attention to data and data managemento Senior management commitment and employee supporto Education and training
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E-commerce & Business Models
E.D.I: It is the electrical exchange of business documents in standard computer process anduniversally accepted format.
Role of EDI:
o EDI Enables business to reduce cost of Faxing and phones Manual Documents handling Time
o EDI Reduce settlement costs of Shipping the goods Sending the payment Notification of payment received Labor intensive
E-Commerce
E-Commerce means the use of the internet and web for business transactions more
formally.
E-Commerce means enabling commercial transaction digitally between and among different
organizations and consumers.
Earliest example: Electronically funds transfer from one financial institute to other via
special network.
Current example: EDI (Electronic Data Interchange) was introduce to facilitate inter
business transaction.
Electronic Commerce: Definitions and Concepts
The Internet has emerged as a major, perhaps eventually the major, worldwidedistribution channel for goods, services, managerial and professional jobs
This is profoundly changing economics, markets and industry structure, products andservices and their flow, consumer segmentation, consumer values, consumer behavior,
jobs, and labor markets
The impact may be even greater on societies and politics, and on the way we see theworld and ourselves in it
E-commerce defined from the following perspectives: Communications: delivery of goods, services, information, or payments over
computer networks or any other electronic means
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Commercial (trading): provides capability of buying and selling products,services, and information on the Internet and via other online services
Features of E-Commerce:1.) Universal (Ubiquity):
It is available just about every where It is possible to shopping from your desktop It reduce transaction costs
i.e. cost to participate in physical market.2.) Global Reach:
It permits commercial transaction to cross national boundaries.03) Universal Standard:
To sale product to global audience, Universal technical standard isunusual feature of E-Commerce.
04.) Richness:
Compare to traditional markets they have great richness. They able toprovide personal, face to face service.
On internet oral and visualization of product makes more richness.05.) Interactivity:
They allow for merchant and consumer communication. It allowed consumer interactivity through online form, chat room etc.
06.) Information Density:
E-Commerce markets, prices and costs become more transparent. Online consumer will become real consumer. It segments the markets into groups who willing to pay different prices.
07.) Personalization / Customization:
E-Merchants can target their marketing message to individuals.
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Different Types of E-Commerce Model:
Business model a set of planned activities designed to result in a profit in a marketplace
Business plan
a document that describes a firms business model E-commerce business model
a business model that aims to use and leverage the unique qualities of theInternet and the World Wide Web.
Business to Business (B2B)
B2B can be defined as... Businesses make online transactions with other businesses. B2B e-commerce has become the real success story of the internet. Business uses the internet to communicate designs, contracts, agreements, to buy or
sell from suppliers or to share knowledge etc.
B2B can be take place through:
Benefits of B2B E-Commerce
Lower procurement Administrative costs,
Access to global suppliers Lower inventory investment due to price transparency/reduced response time Quality enhanced due to earlier involvement between buyers and sellers,
especially during product design and development
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Business to Consumer (B2C)
B2C Commerce: Interactions relating to the purchase and sale of goods and servicesbetween a business and consumerretail transactions.
Retail transaction is done on the Internet, rather than a XYZ store location. online transactions are made between businesses and individual consumers With the B2C model, businesses sell goods or services to the end consumer. Potential Advantages of B2C E-Commerce
May eliminate need for maintaining physical shop front Reduced transaction costs; increased transaction speed Ease of crossing geographical boundaries Web sites available 24/7 Ease of updating existing and distributing new information Providing additional value for customers Internet: universal, easy-to-use set of technologies and standards Empowers smaller companies Convenience but success is far from guaranteed! Disintermediation: elimination of intermediate organizations between the
producer and the consumer
Disintermediation: removal of intermediary steps in a value chain, e.g., sellingdirectly to consumers
lower purchase transaction costs potential price advantages
Some more B2C business modelso Portal
Offers an integrated package of content services and content search,news, e-mail, chat, music downloads calendars etc.
Examples: Yahoo.com, MSN.como E-tailer
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Online version of traditional retailer Types include:
Virtual merchants (online retail store only)(Amazon.com)
Clicks and bricks (online distribution channel for a company
that also has physical stores) (Wal-Mart.com)
Catalog merchants (online version of direct mail catalog)
(LandsEnd.com, LLBean.com)
Manufacturer-direct (manufacturer selling directly over the
Web) (Dell.com, Compaq.com)
o Content Provider Information and entertainment providers like newspapers, sports
sites and other online sources that offer customers up-to-date news
and special interest how-to guidance and tips and/or information
sales.
Examples: Sportsline.com, CNN.com, ESPN.como Transaction Broker
Processors of online sales transactions, such as stock brokers andtravel agents that increase customers productivity by helping them
get things done faster and more cheaply.
Examples: E-Trade.com, Monster.com, Hotels.como Market Creator
Uses Internet technology to create markets that bring buyers andsellers together
Examples: Priceline.com, eBay.com, Amazon.como Service Provider
Companies that make money by selling users a service, rather than aproduct
Examples: Mybconsulting.com, Lawinfo.com, MyCEO.como Community Provider
Sites that create a digital online environment where people withsimilar interests can transact, communicate, and receive interest-
related information.
Examples: Epinions.com, Oxygen.com About.comConsumer to Consumer (C2C)
The C2C business model consists primarily of consumer auctions.
Individuals bid on or sell items.
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C2Co eBay
www.ebay.como First Auction
www.firstauction.como @AskMe.com
www.askme.com Provide a way for consumers to sell to each other, with the help of a online
marketmaker
Best example: eBay.com Often done through Web auction sites such as eBay Growth of C2C is responsible for reducing the use of the classified pages of
newspapers to advertise and sell personal items
M-Commerce
Any electronic transaction or information interaction conducted using a mobiledevice and mobile networks (wireless or switched public network) that leads to transfer
of real or perceived value in exchange for information, services or goods.
Mobile commerce (m-commerce) relies on the use of wireless devices, such as personaldigital assistants, cell phones, and smart phones, to place orders and conduct business
New updationso Takes traditional e-commerce business models and influence emerging new
wireless technologies
o Key technologies are telephone-based 3G; Wi-Fi; and Bluetooth.o However, technology platform continues to advance so much
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Peer-to-Peer (P2P)
Links users, enabling them to share files and common resources without a commonserver
Example: Kazaa; Groovenetworks Example of Intra Organizational model
IFFCOs intra organization network, through which it constantly be in
contact with other units of IFFCO.
o IFFCO Kandlao IFFCO Kalolo IFFCO Aonlao IFFCO Phulpuro IFFCO Paradeepo Other Reliance, TATA Etc.
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E-Business Definition
E-Business Architecture
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B2C Revenue Models
Describes how the firm will earn revenue, generate profits, and produce a superiorreturn on invested capital
Major types: Advertising revenue model Subscription revenue model Transaction fee revenue model Sales revenue model Affiliate revenue model
Advertising Revenue Model
Web site that offers content, services and/or products also provides a forum foradvertisements and receives fees from advertisers
Example: Yahoo.comSubscription Revenue Model
Web site that offers users content or services charges a subscription fee for access tosome or all of its offerings
Examples: Consumerreports.org, Sportsline.com, Ganeshaspeaks.com, Yahoo Platinum
Transaction Fee Revenue Model
Company that receives a fee for enabling or executing a transaction Examples:
eBay.com, E-Trade.comSales Revenue Model
Company derives revenue by selling goods, information, or services to customers Examples: Amazon.com, LLBean.com, Gap.com
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Affiliate Revenue Model
Sites that guide business to an affiliate (Associate)receive a referral fee or percentageof the revenue from any resulting sales
Example: MyPoints.comE-Commerce business model: To make successive E- commerce business model, we haveto take care of effective elements of that business model. They are
Value proposition Revenue Model Competitive Advantage Market strategy Organization development Management team