E BUSINESS MANAGEMENT STRATEGIES:A BUSINESSTOBUSINESS CASE STUDY

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E- BUSINESS MANAGEMENT STRATEGIESA
BUSINESS-TO-BUSINESS CASE STUDY

• SpeecherJuhua Yu

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PREFACE

• Information technologies develop new
  business model competitive advantages
• Electronic business today plays a major role in
  the worlds economic,thanks to the rapid advance
  in information technology.Recent estimates from
  Forrester Research show that by 2003 the value of
  E-commerce in the United States and Europe will
  reach 3 trillion.

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PREFACE

• We are on the verge of a revolution that is as
  profound as the change in the economy that came
  with the industrial revolution.Soon electronic
  networks will allow people to transcend the
  barriers of time and distance and take advantage
  of global markets and business opportunities not
  even imaginable today,opening up a new world of
  economic possibility and progress.

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E-BISINESS OUTLINE

• There are basically six categories of E-business
• B2B,B2C,C2B,C2C,Nonbusiness,Intrabusiness
• Applications of E-business are classified into
  three categories
• Electronic marketsBuying and selling goods and
  services
• Interorganizational systemsFacilitating
  inter-and intra-organization flow of
  information,communication,and collaboration
• customer serviceProviding customer
  service,help,handling complaints,tracking orders

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E-BUSINESS OUTLINE

• Four infrastructures are necessary in
  implementing electronic commerce applications.
• Common business service(I.e.,security,authenticati
  on,electronic,payment,and electronic
  catalogue,etc.)
• Messaging and information distribution(I.e.,EDI,e-
  mail,and HTTP,etc.)
• Multimedia content and network publishing(I.e.,WWW
  ,HTML,XML,Java,CGI,etc.)
• Network information superhighway (I.e.,cable
  TV,Internet,telephone,wireless media,etc.)

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E-BUSINESS STRATEGIES

• Why to deploy E-business
• The two types of E-business strategies
• How to deploy E-business
• New value chain forming
• Major success factors for E-business include

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Why to deploy E-business

• Value chain
• Seeking to minimize the uncertainty arising from
  dependence on the environment for resources
• Competing to take advantage of the cost savings
  and market penetration that often result in
  better profits and market shares
• E-business is viewed as the most attractive
  solution in managing organizational resources
  interdependence through supply chain.

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The two types of E-business strategies

• Competitive strategiesUsed to attack a
  competitors position or to defend the business
  enterprise from competitors position in the
  market
• Cooperative strategiesInvolves strategic
  alliance through joint venture or value chain
  partnership to gain competitive advantages

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How to deploy E-business

• A business enterprise can gain competitive
  advantage by operational effectivenessdoing the
  same things the competitors do but doing them
  betterand by strategic positioning doing things
  differently from competitors in a way that
  delivers a unique type of value to customers.
• E-business should complement rather than
  cannibalize traditional ways of competing.
• E-business are not stand-alone technologiesthey
  must be integrated into the overall business
  value chain.

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New value chain forming

• Implementation of strategic alliance in
  E-business has established a new value chain that
  link core business with sales and the supply
  chain.To succeed, companies will need to
  constantly search and implement innovative
  strategies that capitalize on both the power of
  the Internet and the changes in both traditional
  and electronic markets.

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New value chain forming

• The supply chains within E-business companies
  also continue to change. Business need to be sure
  that customer and suppliers can gain access to
  their Web sites to gain important product
  information for decision making .This information
  will give customers and suppliers the ability to
  receive and ship products or services at the
  right price,time,place,and speed.

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Major success factors for E-business include

• Internet technology fully integrated into the
  companys overall strategy
• Basis of competition not shifted from traditional
  competitive advantages
• Support from top management
• Buyer behavior and customer personalization

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Major success factors for E-business include

• First-mover advantage and quick time to market
• Right digital infrastructure
• Good cost control
• Innovation allowed when risks are low

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Major success factors for E-business include

• Good E-business education and training to
  employees,management,and customers
• Distribution and supply chain model frequently
  reviewed to maximize companys gain
• Customers and partners expectations from the
  Web well-managed
• Good products and services offered by E-business

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Major success factors for E-business include

• Current systems expanded to cover entire supply
  chain
• New competitors and market shares tracked
• Web-centric marketing strategy
• Companys virtual market place established
• Companys strategic position in the market
  strengthened

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Traditional market
Implementation of strategic alliance in EB
Value chain
Search And Implement Innovative strategies
Electronic market
High speed data communication
New network technology
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INTEL AND ITS B2B E-BUSINESS STRATEGIES

• Background
• B2B project structure
• Intel created a self-service extranet called
  E-business program.Access to the site was
  restricted to Intels authorized business
  partners and customers
• Intels Initial E-business project structure

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INTEL AND ITS B2B E-BUSINESS STRATEGIES

• Intels mission and goals
• E-business strategies
• Broaden and deepen sales outreach
• Target middle tier for better efficiency
• Improve customer service by delivering
  personalized information
• E-business infrastructure
• Servers
• OS and Databases
• Application development

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INTEL AND ITS B2B E-BUSINESS STRATEGIES

• Deployment problems and challenges
• Results
• Intels Web orders replaced non-Web orders
• Intels network infrastructure improvements in
  2000

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Non-Web Orders
Web-orders
100
80
60
40
20
0
1997
1998
1999
2000
2001
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E-business project
IT Department
Business Analysts
Sales and Marketing
Project planning
Intels PL Group
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LESSONS LEARNED AND SUCCESS FACTORS

• Receiving support from management
• Tailoring to customers needs
• Complementing rather than cannibalizing
  traditional ways of competing
• Anticipating changes and focusing on continuous
  quality improvement

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LESSONS LEARNED AND SUCCESS FACTORS

• Delivering personalized Web content
• Focusing on quality of connections
• Providing worldwide support and customer training
• Designing good E-business architecture
• Deploying best security protections

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Conclusions

• Top management support
• Internet technology well integrated to companys
  overall strategy
• Continuous E-business quality improvement
• Delivering personalized Web contents
• Good security and strong privacy protection
• Good strategic position in the market