Chapter 12 - E-business Flashcards
Define E-business
The transformation of key business processes through the use of internet technologies
How can E-business be evaluated?
SAF
- Suitability - support overall strategy?
- Acceptability - to stakeholders? How will distributors react?
- Feasibility - can be expensive and require specialist skills
What are Chaffey’s eight areas where organisations should review and select strategic options?
- Digital business channel priorities - how much will be sold in store vs online?
- Market and product development strategies - which products should be delivered online?
- Positioning and differentiation strategies - how will it position compared to competitors?
- Business, service and revenue models - e.g. showing reviews on website
- Marketplace restructuring - disintermediation (removing distributors)
- Supply chain management capabilities - integrate more closely with suppliers - e-procurement
- Internal knowledge management capabilities - can tech help disseminate knowledge?
- Organisational resourcing and capabilities - structure change
What are the four stages of how advanced a company is in adopting e-business?
- Web presence - interaction with product catalogues and customer service
- E-commerce - transactional e-commerce
- Inegrated E-commerce - integrated with other systems, personalised service
- Digital business - full integration between internal processes and value network
What is a good model to analyse the impact of technology?
Value chain analysis
What are the characteristics of E-marketing (the 6 I’s)?
- Interactivity - pull mechanism as customer engages
- Intelligence - collect marketing information
- Individualisation - communications tailored
- Integration - integrated into other marketing channels e.g. voucher for making purchase claimed online
- Industry structure - disintermediation
- Independence of location - sell into international market with no sales
Define brand
A name, symbol or design that enables customers to identify the products of a supplier
What are the characteristics of traditional branding?
- Uses newspaper, TV, radio
- Costs more
- Less targeted
- Inflexible
- Cannot tell if been successful
- Hard to amend
What are the characteristics of online branding?
- Cheaper
- Real time changes made
- Measure success
What are the options for online brands?
- Migrate traditional brand online - use if strong rep
- Extend traditional brand - a variant adapted to online audience
- Partner with existing digital
- Create new digital brand
Define E-procurement
The purchase of supplies and services through the internet
What are the options for implementing E-procurement?
- Public web - individual buyers find individual suppliers on web e.g. Amazon
- Exchange - suppliers and buyers trade through a third party open marketplace - no structural relationship e.g. car trade online
- Supplier centric - individual supplier gives access to buying organisation for pre-negotiated product range - contractual
- Buyer centric - individual companies have contracts with different suppliers - ordering system maintained by buying organisation e.g. software suppliers
- B2B marketplace - buyer and supplier deal with each other through marketplace. Both bound by agreements with marketplace e.g. Alibaba
How can customers be acquired through e-business technologies?
- Search engine optimisation - high on search results
- Newsletters to customers
- Viral marketing - create a buzz, word of mouth
- Banner advertising in magazines and websites
- Social media - sponsoring
How can customers be managed through e-business technologies?
- Promotions
- Extranets
- Online community
- Opt-in emails
- Data mining
Define innovation
Conversion of new knowledge into a new product and putting this into actual use
