pressures to adopt digital technology Flashcards
ecommerce is
buying and selling of g/s and or the transmission of funds/data using electrici networks the internet
funds can include ?
electronic payment systems with credit/debit/contactless
what can datat include
sm to comm with suppliers they need deliveries etc
we can split advantages of ecoomerce in terms of
revenue and cosst
what are the revenue advantages of ecommerce
increased size of target market
lower selling prices increases demands for PED goods
collect data about custoemrs for better targeted marketing
what are the revenue advantages of ecommerce 4
increased size of target market
lower selling prices increases demands for PED goods
collect data about custoemrs for better targeted marketing
24/7 shopfront
what are the cost advantags of eccomerce 4
lower bte
economies of scale and reducing avg costs
more efficinet ad spend
access more suppliers
evaluation - which business is it more suitable for
products easily transferable/downladable e.g books,music,films,software
lower value goods and services that are simple to work/use
services that dont need reciever to physically be in the same room e.g financial serice such as banking , car insurance
evaluation - which business is it lesss suitable for 4
expesive consumer goods consumeres want to inspect beforehand
heavy non transportable products e.g petrol
services that need to eb provided in person e.g haircuts
industrial products and processes that reuire large amounts of capital investment
explain advantage of increae size of tm
you have new geo mkts
book shop w//o ecomm size of mkt limtd to town
once got web your product cam become national or global
increases size of tm leding ot more sales and mroe revnue
explain advantage of can lower selling price
if you’re able to lower selling price you increase demand for elastic goods
explain collect dta about customes for better targetted mkting
we cna collectdata to target marketing better
e.g if bs fot web they can collect data ptclrly if customers got to use persona details to sign up
can uy datta off google and fb and use this to puh ads out to all 21-29 yr olds living in x
explain 24/7 shopfront benefit
traditional brick and mortar businesses cant do as open 9-5
but customers have access to bs all th eitme and customers abroad can acess products you hae for sale
you are not limited
therefore there is a greater potential of sellign g/s
explain cot advanathe of lower bte
in the past if bs use brick and mortar = monthly payments
as well as fixtures and fittings to ensure shop is operatinal
but can now trade from home and use web - lowers start up costs (thereofre BTE falling )making it easier for busienss to enter the mkt
possibly means less staff needed to man the shop too - so lower abour costs
explain access to suppliers
not reliant on suppliers in the area and therefore as a reuslt achieve better prices
go to more omp suppler if use internet to search them up
lower cop - you know the drill - pass onto prices= more demand , higher profit margins more dividends to shareholders/r&D
savings to be made on asset base
e.g amaxon can sell products cheaper than waterstones as high stret book shop need to rent and pay staff - more efificent ot have huge warehouse
fewer staff than using shops
save money passed on
expain advantage of EOS TO REDUCE AVG COSTS
If we can sell more stuff through increasd size of TM we can increase output therefore benefit from EOS as well as xp curve
can pass onto consumers
explain lower waste due to increased flexibilty
may be easier to adopt JIT as customers can go on web
order products and design to their own specificatio
this can generate an email sent ot supplier for materials
this is a pull system of prod - consumers designign product so lower waste as a result
we match supply to demand
ecommerce is a huge area of
growth
give example of low value goods/simple to understand eval point
people understand and dont need advice from specialist meeber of staff you’d need if buying a car
explain services that rewuire rciever to be physically in same room such as insurance
we cna copmare
compare diff quotes through prie comp websites
give example of an expenisve consumer goods people wanna insprct beforehand
perfume
jewellrey
give an example foa heavy non transportable product
e.g petrol
just becuase ecomm isnt as suitable doesnt mean org wont have a
website
give example of a less suitbale business still using website
hairdressers can use it to arrange appoitnmtets online
can do it but wont have a full ecomm strategy
what are hte 5 costs of ecoommerce
need for considerabe investment e.g web design , intergration with exisitnig networks
cyber security threats
lower bte means higher leveles of competiton
distance form consuemrs cna be problematic
difficult for ocnusmers to try on goods leading to mroe returns
explain need for consderable investment con
e.g web design , integrate with exosting computer sustems , train staff to deal with web and issues
gotta work out logistics cause if customers arent coming to you an collecting youve got to get it to them
e.g bring in distribution network such as click and collect
very csotly , but most mkt to compete effectivley have to do this
explain cbyer security threats
e.g talk talk
personal data of customers stoken - company attakced by hackers
may mean customers doubt wehther personal info is safe
can lead to reputational damage
lead to loss of money
time consumign + significant impact
explain lwoer bte = hgiher levels of comp
easier for new business to enter mkt
meas bs may ahve to icnrease quality of thero product
this increases costs as means more innvoation and R&D which is costly
or a bs may have to look for cocst savings e.g reducing staff/bulk buying - can result in lower revenue coming in and lower profit margins
st costly in terms of incresing quality but good in LT as bs can remian differntiated /keep comp
explain eval of distance from consumers
this can be roblematic
if got cosuemrs coming face to face with b you can ask em Q about roucts and see whether they happy or not
you dont get the richness of infor therfore DM can be worse as are not ass informed - this cna be coutnered with market research haowever this is another cots
explain difficult for conusmers to try ong goods leadin to reurn
this can increase waste especially if goods are customised
problem in retial as sizes differnt e.g nike and adiidsa
leads to lots of return - many of these sites offer free return so cost for bs and may fee presuure to do free returns
explain difficult for conusmers to try ong goods leadin to reurn
this can increase waste especially if goods are customised
problem in retial as sizes differnt e.g nike and adiidsa
leads to lots of return - many of these sites offer free return so cost for bs and may fee presuure to do free returns
big data
what is big data
when vast quantities of info are generated, stored anda analysed by a business
what are the 3vs relating to big data
volume velocity variety
explain the idea of the 3vs associated with big data
we’re collecting huge amounts of data quiclky and lots of diff types too
org starting to turn big data into
competitive adv and rev /selling it
give examples of data we may be collecting in big data 5 examples
customer data (loyalty cards)]
sales info (revenues generated)
operational data (faulty products produced)
marekting info ( effectiveness of adv)
HR data (perfomance history of employees)
explain cosuemr data
e.g loyalty catds show us what somene buys over pot
THIS IS STORED ON DATTA BASE WITH Ks of other conusmers data
showing what theyve bought - this can be analysed and use to offer deals to custoemrs which can incresae brand loylath?
explainsales info
this can tell us revnues generated and what products are generated most rev
useful for bs liek supermarket that sells 100s of products - decrease stock of those not sold mroe and reduce storage costs
explain operational data
can record falty products produced - therfore can analyse reds and
see they may need to introduce quality traingn to solve this issue and reduce waste - esp if thats their obj
explain mkting ino
for exmaple we can see effectiveness of adv
how succesful , how many clicks do we get on our web - compare
and therfore if need to change web we adv or content in ad
this increases ads effectivness , means more ocnsuemrs made aware of produts andbenefits and mroe sales and rev
explain HR data
could record data about performance hisotry of an employee
e.g labou productiviyt , what fault products and therfore what training needs ot be done
or what rewards cna we gve to increase productivity
but a piece of ssat is just a
numerical pirce of info
data on its own doesnt mean
much
data on its own dont mean much so to make sens of our big data what do we do
data mining
what is data minig
process of using software to analyse vast quantities of data to look for patterns and generate organisational learning
using dtaa mingin mean we cna start to
draw conclusions that may be useful for our bs
data ming/data can be used for
analysis prior peformance i.e daily sales rev to predict furture performance
idenitfy casue and effect - can help make a distinciton beteen correlation and casusation - if i put one thing on sale and affects another , i know not to do this in the future to max sales
the more date we;ve got
the more likely we are to wokr our if something is a correlation or causation
we can also use datt mining to undertake
plannin
expain dtata minig to undertake plannign
e.g descision trees CPA
require infor to be put in , data mini ghelp us put info into models which is useful as helps us make better desciions in the future
give example sof useful q datat minig can solve
how many applications recieved after adv is in x newpaper and how many people did we accept
what affect does cold weather have on stoc
how many click throughs did our pop up ad generate hwen is was blue comared to green
how can data mining help teh - applicatino recied on x newspper and how many did we selct
whats effcetive HR recruitment and spendign
how cna dat ainign help how maby click throughs did our adv get when blue comp to green
so look at what consumers respond to better to to increase sales and increase mkt share and compete
what is more effective
explain data mingi with what effect does cold weather have on stock
if change weather forecast fashion rettailer may have to rder more coats based on previous experience
tell me what the bottom line of data mingi is
helps us find answer
enabling us to make better desciison in the future
how do amazon use data minig to create a comp adv
recommending stuff to customers
e.g recommending ‘read more on teachign to mr evans bs’
selling me a dumbell workbook
enterprise resource plannign
what is enterprose resurce pannign
use of software to integrate key business processes in order ot imporve corfination and icnrease efficiencies
waht does ERP allow
a business to collect store and analyse data from across the functional areas of a business
in short ERP allows a bs to put key process into
1 thing to help the org perform
give example of processes ERP integrates
distribution
finance
manufacturing
purchasing
customer web portal
sales
why is ERP beneficial
it makes it clear to business what happenign
e.g if someone does non standard order for RM
but through computer , order sent to supplier
generate electric invove which gone thouhg to finance
everyone paid , ebrryone happy e can maintain our relaitonship with supplier – important as suppliers cna give us advice on whats things sell besy
if i have ERP in a bs what productino process can i implement
JIT
explain why ERP means a usiness can implemet JIT
Customer can order on web, genateers order for RM from suppler
this arrives
allowinf product to be designed
customer pay irg
spplier gen invoive
this is all coord in one program rather than one program for each dpt whihc can elad to miscommunicatino
what are the benefits of ERP in finance
ensures all invoices and payments are made on time to staff and suppliers
allows us to keep goo relation and trade terms
as it clea what staff work what hours and its clear whihc staff have done #
so get paid - same for suppliers
means hygenic factos in place as suggested by herzberg - prevents disatdfaction and demotivation
in terms of marketing waht is the befit of ERP
can allow customers to personalise theoru prodycts through A web
order can be generated online
and fed through to op
this creates oportunities for mass customisation e,g ADIDAS
in tems of operations what is a benefit of ERP
MAY BE USED TO ORDER SUPLIERS AS NEEDED (MEANINF AMTHCINF SUPPLLY TO DEAMND AND KEEP REPUTATIONABILITY)
monitor quality of work - if poor business can impolement quality assurrance to prevent disatisfacion and ppor brand imae /put in trainig
in terms of HR what is a benefit of ERP
If an employees work is not tip top we can track staff skill profiles and training they may need
in short what is the benefit of ERP
we’re integrating all the functional areas and it should make ORG run smoother , effiicnetly
+
help managment make good descisons based n data thats been collected
digital tech
waht is digital technology
data generated and stored in binary form and the hardware used to store and transmit such data
digital tech includes :
finanical transactions
mobile tech
online comm (emails)
computer networks
cloud computing
huge amounts of data re generated
everydya
give an exmaple of the huge amounts of data generated everydya
products people are buying
waht peopl search on google
data can be done waht by the business
collected nd analysed
digital rech is a massive
area of growthq
speed of which digital tech is improving is
increasing
give me 5 internal pressures to adopt digital tech
dh pressure to adopt digital tech to increases dividends
improve effectiveness of our marketing - if we use digital tech& data to target specific customers
workforce pressure - esp after 2020- people wanna WFH and using digital tech canhelp that
imporve org efficiency and productivity - allows people to work smarter not harder
imptove internal comm - benefits from digital tech e.g email, zoomign
give me 2 externla presures to adopt digital tech
comp is adopting it therefore to stay comp you need to do it also
customer pressure to communciate with them in new ways e.g through SM
explain pressure to adopt digital tech : imprive performance
its essential ina comp marekt
digital tech can lead to lower costs and quickler more efficient desciosn making
enabling an org to stay a step ahead of comp
explain pressure to adopt digital tech : keeping up with consumer and market trends
use of digital tech leads to a more flexxible bs that ca quixkly repsond to changes in conusmer astes , fshion and mkt trends
avaialbilty f ne tech prtclry the internet have changed the way firms do business
gloablly
consumers can do shopping with the click of a
mouse
tablet
phone
use of the internet has pt pressure on tradiiotnal business to
adopt digitla tech and take bs to consumer rather than vice versa
