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Electronic Business Replacement of physical processes with electronic
ones
Cost and price reductions Reduction or elimination of intermediaries
Shortening transaction times for ordering anddelivery
Wider presence and increased visibility
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Electronic Business Greater choices and more information for customers
Improved service
Collection and analysis of customer data and preferences Virtual companies with lower prices
Leveling the playing field for smaller companies
Gain global access to markets & customers
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It is the process of conducting business byautomation of business to business and business toconsumer transactions through reliable and secure
connection.
Electronic Commerce or e-commerce, the exchangeof goods and services by means of the Internet orother computer networks
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Banking, insurance, transport, &commercial organizationwith various transactions like placing an order, sendingorders, making payments, deposits and withdrawals,
reservation of tickets at railways, airlines, theaters etc ., takeplace on internet as part of e-commerce.
Software consisting of system software, newspapers,
books, music, songs etc. can be delivered on net by way ofdownloading into ones computer.
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Various technologies like Electronic Data Interchange(EDI)E-mail, Electronic Fund Transfer (EFT), electronic forms,Digital Cash(DC),Bulletin Board system(BBS), Electroniccatalogues , web casting or push technology, etc . Are used incombination while conducting E-commerce on internet.
More and more companies are creating their own websites with their Home pages & web pages; placing thedetails on net for millions of prospective customers beingable to view it.
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TYPES OF E-COMMERCE
1. Product Transaction(C2B)
2. Service Transaction(B2C)
3. Auctions(C2C)
4. B2B Transaction
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1) Product Transactions(C2B) Retail Web sites typically include electronic catalogsthat describe and display products for sale. Consumers
can search for individual items or randomly browseelectronic catalogs, some much larger than their mailorder print counterparts. An Internet book retailer, forexample, can offer millions of different book titles forsale on its Web site, far more titles than could fit into a
store or that could be included cost-effectively in aprint catalog.
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2) Service Transactions(B2C)
Other e-commerce businesses offer services. Financialservices represent a large segment of e-commerce. For a
small fee, online investment brokerages trade stocks onbehalf of their clients. Online stock brokerages typicallycharge customers lower fees than traditional stockbrokerages. Other sites provide consumers with a way toresearch and obtain mortgages and other loans online.
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3 ) Auctions(C2C)
Some e-commerce sites specialize in bringing buyersand sellers together, rather than selling products fromtheir own inventories. Online auctioneers provide sellers away to list and display items for sale and take bids frominterested buyers. In exchange for the auctioneersservices, sellers pay the auctioneer a small fixed fee and aportion of the proceeds from the sale. Other sites invert
this model. These sites enable bidders to name the pricethey are willing to pay for a particular product or serviceand then try to find a seller who is willing to meet that.
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4) B2B Transactions
Business-to-business commerce represents one of the fastestgrowing segments of e-commerce. Businesses order supplies
and coordinate complicated projects electronically. With e-commerce, however, software can automatically track theinventories of manufacturers and suppliers so that both haveadequate supplies on hand and no longer need to have excessinventories. Reducing inventories enables both manufacturersand suppliers to lower costs. The labor-intensive method ofprinting and then faxing or mailing purchase orders can also beavoided because software can create purchase orders and sendthem electronically.
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Customer Relationship
Management
Definition:-
Customer relationship Management is the process of carefully managing detailedInformation about individual customers and all customer Touch Points to maximize
Customer loyalty.
Touch-point: A customer touch point is any occasion on which a customer encounter the bran
And product From actual experience to personal or mass communications to casualObservations.
Example: For a hotel ,the touch point include the reservations, check-in and checkoutFrequent stay-programs, room- service, business services, exercise facilities, laundryService, restaurants, and bars.
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When Do We Use CRM?When we need to: Support staff with daily structured activities Provide marketing support for campaigns & loyalty Provide sales and services a consolidated view of the customer Provide all management with key information to review processes
and results Structure all customer facing activities Provide a platform for customer self service Provide a partial view of joint processes to partners Centralize key information in a safe and secure place so that the
company holds the IP rather than a staff member
Can be used to provide external view for shareholders and othersas well.
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Where does c.r.m. fiT?
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What Is the si ess ase?
se t i pr ve b tt li eAcquire new customers (contestable)Increase revenue from existingcustomersDevelop new products and services (timeto market)
Increase brand awareness & perceptionsIncrease customer loyalty (minimisechurn)Increase customer satisfactionImprove productivity (sales force, fieldservice)
Displace costs (lower maintenance costs)Reduce capital requirementsDecrease time to marketReduce customer support handoffsReduce fulfillment errors (integratedsystem)
DirectRevenue ImpactIndirect
Revenue Impact
Reduce
CostsDirect CostReduction
Indirect CostReduction
IncreaseRevenues
IncreaseProfitability
ReduceCosts
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What is er ?
Enterprise resource planning software, orERP, doesn't live
up to its acronym. Forget about planningit doesn't dothatand forget about resource, a throwaway term. But
remember the enterprise part. This is ERP's true ambition.
It attempts to integrate all departments and functions across
a company onto a single computer system
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WHAT IS E.R.P.?
E.R.P functions typically attempt to cover all basic functions
of an organizations, regardless of the organizations businessor charter.
The term ERP originally implied systems designed to plan theutilization of the enterprise wide resources in themanufacturing environment, today it has much broader
scope.
Business, N.G.O., organizations, governments & other largeentities utilize ERP system.
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Major su liers of er :-SAP
OracleJ.D Edwards
PeopleSoft
Siebel Systems
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BENEFIT:OPERATIONAL EFFICIENCY
Lower cost Data entered only once, used by all
processes
and departments Better customer service
Current data accessible to all participants
E.g. customer service rep can see stock levels
in other divisions, progress on order, etc.
(seeDarwinreading)
Allows management of processes across
organizational boundaries
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BENEFIT:LOWER IT COSTa) ERP is very expensiveb) But expect long term savings from
1:Elimination of legacy systems
(A)Upgrades, maintenance and licensing costs
2:Future maintenance and upgrades cheaper
(B)Spread costs over a large base
3:Biggest saving in integration?
(C)Huge costs for ad-hoc integration of aging
applications
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BENEFIT:STANDARD PROCESSBenefit: Standard Process ERP is managerial means to force global standardization in processes.
1:Technological enforcement coded into software Local variation,2:workarounds eliminated .
Centralization of control over procedures1:May bring efficiency2:Will sacrifice flexibility.
Lilly1:example:
No customization for local traditions or cultures
Only for legal or regulatory reasons
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BENEFIT:MANGERIAL DATA1: Standardizing processes requires
standardization of:
A:Product codes
B:Accounting methodsC:Human Resources systems
2:This allows comparisons between divisions
Especially using
A:financial measures of effectiveness
B: EX. Economic ValueAdded(EVA)analysis.
C: On global basis
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Supply ChainSupply ChainManagementManagement
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Su ly Chain All activities associated with the flow and
transformation of goods and services from
raw materials to the end user, the customer
A sequence of business activities from
suppliers through customers that provide
the products, services, and information to
achieve customer satisfaction
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The Su ly ChainInformation
Cash
ProductsandServices
ProductsandServices
ProductsandServices
CustomersCustomers
Totalsatisfaction
with quality,price,delivery, andservice
DistributorsDistributors
Package anddelivery
Inventory
ProducersProducers
Finishedgoods, endproducts andservices
Inventory
SuppliersSuppliers
Inventory
Materials,parts, sub-assemblies,and services
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Su ly Chain Management
Synchronization of activities
required to achieve maximumcompetitive benefits
Coordination, cooperation, and
communication
Rapid flow of information
Vertical integration
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Information in the Su ly Chain Consolidation of purchasing
from all suppliers
Intercompany and intracompanyinformation access
Data interchange
Data acquisition at the point oforigin and point of sale
Instantaneous updating ofinventory levels
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Benefit & PROBLEMS of s.c.m.:BENEFIT:1:Fullfillment
2:Logistics
3:Production
4:Revenue & Profit
5:Costs
PROBLEMS:
1:Distribution Network Configuration2:Distribution Strategy
3:Information
4:Inventory Management