e-Business Environment Economic Environment

1
e-BusinessEnvironmentEconomic Environment
Economic Environment
Environment
Social Environment
Political Environment
2
Amplification and Attenuation
Organisation
Environment
3
EconomicEnvironment
Power Buyers/Sellers
Basis of Competition
State of Regulation
State of Technological Deployment
Competitive Structure
Industry Growth
Collaboration
Relationships
e-Hierarchies
Information
Hierarchies
Competition
Transactions
Markets
Competitors
Forms
Elements
e-Markets
Suppliers
Actors
Dis-Intermediation
Customers
Regulators
Intermediation
Partners
Re-Intermediation
4
Production and Distribution
Economic Environment
Organisation
Production
Distribution
5
Markets and Hierarchies
Production Costs
High
Low
Hierarchy
Market
Coordination Costs
High
Low
6
Markets
7
Hierarchies
8
Elements of Markets and Hierarchies
Economic Actors
Exchange Relationships
Information
Transactions
9
Economic Actors
Regulator
Supplier
Organisation
Customer
Competitor
10
Economic Relationships
Regulator
State Of Regulation
Organisation
Relative Power Of Buyers/Sellers
Relative Power Of Buyers/Sellers
Supplier
Customer
Competitive Structure
Basis Of Competition
State Of Technological Deployment
Competitor
11
Competitive Position
State Of Regulation
Relative Power Of Buyers/Sellers
Relative Power Of Buyers/Sellers
Organisation
Basis Of Competition
State Of Technological Deployment
Competitive Structure
12
Electronic Markets
Supplier
Organisation
Customer
13
Intermediation, Dis-Intermediation,
Re-Intermediation
Traditional Intermediation
Disintermediation
Reintermediation
Producer
Producer
Producer
Goods
Data
Goods
Data
Wholesaler
Goods
Data
Electronic Intermediaries
Goods
Data
Distributor
Goods
Data
Retailer
Goods
Data
Goods
Data
Retailer
Retailer
Retailer
14
Inter-Organisational Information Systems
Information Economy
Partner
Inter-Organisational Information System
Supplier
Customer
Organisation
Strategic Information Systems
15
Globalisation
16
Summary Economic Environment

•  The primary environment of a commercial
  organisation is the economy.
•  Economies are systems for coordinating the
  production and distribution of goods/products and
  services.
•  Economic activity is organised in terms of
  markets or hierarchies.
•  Markets are systems of competition. They are
  mediums of exchange between buyers and sellers.
• Hierarchies are systems of cooperation.
  Exchange is conducted on the basis of established
  trading arrangements.
•  Both markets and hierarchies can be seen to be
  composed of actors, relationships, information
  and transactions.
•  There are four main types of economic actor in
  a market competitors, suppliers, customers, and
  regulators.
•  The shape of some economic environment can be
  seen to be determined by five major forces
  competitive structure of the industry, relative
  power of buyers and sellers, basis of
  competition, state of regulation in the economic
  environment, state of technological deployment in
  the environment, whether the industry is growing,
  shrinking or stable.
•  An organisation takes up a particular position
  in an economic system defined by its activities
  and relationships with its competitors,
  suppliers, customers and regulators.
• An e-Market is a market in which economic
  exchanges are conducted using information
  technology and computer networks.
•  Electronic hierarchies tend towards
  inter-organisational Information systems. This is
  an information system developed and maintained by
  a consortium of companies for the mutual benefit
  of member companies.