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On other downloads, also of highly specified solvents and chemicals, SmithKline Beecham is regularly beating its own historic pricing by between 7 and 25 per cent. FreeMarkets, the company that manages the SmithKline Beecham auctions, quotes examples of savings achieved by other clients in these virtual marketplaces: 42 per cent on orders for printed circuit boards, 41 per cent on labels, 24 per cent on commercial machinings and so on.
As well as production items, the process also works well for many services, such as car hire contracts. This pricing free-for-all sounds a little shocking at first.
After all, successful companies are supposed to download on quality, nurture critical supplier relationships and think strategically. And, of course, they still do. Guy Allen, director of downloading at SmithKline Beecham emphasizes that the auction itself is a new part of a still rigorous downloading process.
This includes issuing a particularly detailed request for proposals RFP to which hopeful suppliers respond as usual, but without quoting a price. Based on the RFPs, selected suppliers are invited to take part in the auction. Training in using the software is available. Once the bidding starts, the participants see every bid, but not the names of the bidders.
In the final stages of the auction, each last bid extends the bidding time by one more minute. One auction scheduled for 2 hours ran for 4 hours and 20 minutes and attracted more than bids.
A downloader need not necessarily accept the lowest bid, but may still prefer to use a tried and tested supplier at a slightly higher price. In contrast, Andrew Biggs, managing director of Bidbusiness. downloaders can post their tenders on his specialist sites and sellers can bid for the work using a pseudonym.
Mirroring the need for liquidity in successful financial markets, auctions need a competitive environment and public auction sites seek to attract more downloaders and sellers through features such as Category Watch from OpenSite, the company that supplies software for Bidbusiness.
This feature will notify registered users by e-mail when an item of interest to them is posted. Now companies that provide auction facilities are looking to factor other variables into their software as well, to let downloaders and sellers take account of differences in transport costs, lead times, duration of warranty periods and so on.
The strength of the auction is that it allows prices to fluctuate according to demand and factors in the value of opportunity. But, arguably, its weakness is the fixed nature of the event. The auction format demands the simultaneous attention of everyone interested in that particular contract or item.
Airlines try to match availability to demand and reward early bookers by creating fare classes where some seats on a particular flight cost more than others. Part 2: Strategy and applications Chapters 5—9 In Part 2 of the book approaches to developing e-business strategy and applications arereviewed for the organization as a whole Chapter 5 and with an emphasis on download-sidee-commerce Chapters 6 and 7 and sell-side e-commerce Chapters 7 and 8.
Chapter 5: E-business strategy. Approaches to developing e-business strategy. Differences from traditional strategic approaches.
Relation to IS strategy. Chapter 6: Supply chain management. A supply chain perspective on strategy with examples of how technology can be applied to increase supply chain and value chain efficiency.
Chapter 7: E-procurement. Evaluation of the benefits and practical issues of adopting e-procurement. Chapter 8: E-marketing. A sell-side e-commerce perspective to e-business, reviewing differences in marketing required through digital media.
Structured around developing an e-marketing plan. Chapter 9: Customer relationship management.
Reviews marketing techniques that apply e-commerce for acquiring and retaining customers. Chapter Change management. How to manage the organizational, human and technology changes required in the move to e-business.
Chapter Analysis and design. We discuss the main issues of analysis and design raised by e-commerce systems that need to be discussed by managers and solutions providers. Chapter Implementation and maintenance. How should e-commerce systems be managed and monitored once they are live?
E-Business and E-Commerce Management: Strategy, Implementation and Practice, 4th Edition
Who should use this book? Students This book has been created as the main student text for undergraduate and postgraduate students taking specialist courses or modules which cover e-business, e-commerce infor- mation systems or e-marketing. The book is relevant to students who are: undergraduates on business programmes which include modules on the use of the Internet and e-commerce.
This includes specialist degrees such as electronic business, electronic commerce, Internet marketing and marketing or general business degrees such as business studies, business administration and business management; undergraduate project students who select this topic for final-year projects or dissertations — this book is an excellent source of resources for these students; undergraduates completing work placement involved with different aspects of e-business such as managing an intranet or company web site; postgraduate students on specialist masters degrees in electronic commerce, electronic business or e-marketing and generic MBA, Certificate in Management, Diploma in Management Studies which involve modules or electives for electronic commerce and digital marketing.
What does the book offer to lecturers teaching these courses? The book is intended to be a comprehensive guide to all aspects of deploying e-business and e-commerce within an organization. The book builds on existing theories and concepts and questions the validity of these models in the light of the differences between the Internet and other media.
The book references the emerging body of literature specific to e-business, e-commerce and e-marketing. As such, it can be used across several modules.
Lecturers will find the book has a good range of case studies, activities and exercises to support their teach- ing. These activities assist in using the book for student-centred learning as part of directed study. Web links given in the text and at the end of each chapter highlight key information sources for particular topics.
Practitioners There is also much of relevance in this book for the industry professional, including: Senior managers and directors seeking to apply the right e-business and e-commerce approaches to benefit their organization. Information systems managers who are developing and implementing e-business and e-commerce strategies. Preface xvii Marketing managers responsible for defining an e-marketing strategy and implementing and maintaining the company web site.
Supply chain, logistics and procurement managers wanting to see examples of best practice in using e-commerce for supply chain management. Technical project managers or webmasters who may understand the technical details of building a site, but have a limited knowledge of business or marketing fundamentals. Student learning features A range of features have been incorporated into this book to help the reader get the most out of it.
They have been designed to assist understanding, reinforce learning and help readers find information easily. The features are described in the order you will encounter them.
Learning outcomes: a list describing what readers can learn through reading the chapter and completing the activities. Management issues: a summary of main issues or decisions faced by managers related to the chapter topic area. Web support: additional material on the Companion Web Site. Links to other chapters: a summary of related topics in other chapters.
Introductions: succinct summaries of the relevance of the topic to marketing students and practitioners together with content and structure. In each chapter Activities: short activities in the main text that develop concepts and understanding, often by relating to student experience or through reference to web sites. Model answers are provided to activities at the end of the chapter where applicable. Case studies: real-world examples of issues facing companies that implement e-business.
Questions at the end of the case study highlight the main learning points from that case study see p. Real-world e-business experiences: interviews with e-commerce managers at a range of UK, European and US-based organizations concerning the strategies they have adopted and their approaches to strategy implementation.
Box features: these explore a concept in more detail or give an example of a principle discussed in the text. Questions for debate: suggestions for discussion of significant issues for managers involved with the transformation required for e-business.
Definitions: when significant terms are first introduced the main text contains succinct definitions in the margin for easy reference. Web links: where appropriate, web addresses are given for further information, particularly those to update information. Chapter summaries: intended as revision aids and to summarize the main learning points from the chapter. At the end of each chapter Self-assessment exercises: short questions which will test understanding of terms and concepts described in the chapter.
Discussion questions: require longer essay-style answers discussing themes from the chapter, and can be used for essays or as debate questions in seminars. Examination questions: typical short-answer questions found in exams and can also be used for revision.
References: these are references to books, articles or papers referred to within the chapter. To find out more about the complete range of ourpublishing, please visit us on the World Wide Web at:www. All rights reserved. No part of this publication may be reproduced, stored in a retrievalsystem, or transmitted in any form or by any means, electronic, mechanical,photocopying, recording or otherwise, without either the prior written permission of thepublisher or a licence permitting restricted copying in the United Kingdom issued by theCopyright Licensing Agency Ltd, Saffron House, 6—10 Kirby Street, London EC1N 8TS.
All trademarks used herein are the property of their respective owners. The use of anytrademark in this text does not vest in the author or publisher any trademark ownership rightsin such trademarks, nor does the use of such trademarks imply any affiliation with orendorsement of this book by such owners.
Includes bibliographical references and index.
ISBN pbk. Electronic commerce. Business enterprises--Computer networks. Title:Ebusiness and ecommerce management. C The valley presented a harsh environment with a barrier of mountains to the west making the way forward unclear.
Some of the settlers lost their lives as they sought to find a route west before eventually reaching California and what was to become one of the most prosperous places on Earth.
The route to e-business success is also not straightforward and similarly fraught with difficulties of selecting the correct strategic direction and surviving in an increasingly harsh competitive environment. Not all who follow the route survive. However, the competitive drivers to follow this route, such as demand from customers and adoption by competitors, make this journey essential.
The rewards are evident from those adopters who identified the opportu- nity early and steered their companies in the right direction. But the journey to e-business can never be completed, because of the relentless evolution in technology and new commercial approaches which exploit it.
Smart e-businesses have an agile approach which enables them to review and select the appropriate technologies at the right time.
Flagship e-businesses with headquarters in California such as site and Google. This book is intended to equip current and future managers with some of the knowledge and practical skills to help them navigate their organization towards e-business. It is your guide to how all types of companies can prosper through e-business.
A primary aim of this book is to identify and review the key management decisions required by organizations moving to e-business and consider the process by which these decisions can be taken.
Key questions are the following: What approach to e-business strat- egy do we follow? How much do we need to invest in e-business? Which processes should be our e-business priorities?
Should we adopt new business and revenue models? What are the main changes that need to be made to the organization to facilitate e-business? Given the broad scope of e-business, this book takes an integrative approach drawing on new and existing approaches and models from many disciplines including information sys- tems, strategy, marketing, supply and value chain management, operations and human resources management. What is e-business management? Electronic As we will see in Chapter 1, electronic business e-business is aimed at enhancing the com-commerce petitiveness of an organization by deploying innovative information and communications e-commerce technology throughout an organization and beyond, through links to partners and customers.
It does not simply involve using technology to automate existing processes, but should alsoAll electronically mediated achieve process transformation by applying technology to help change these processes. To beinformation exchanges successful in managing e-business, a breadth of knowledge is needed of different businessbetween an organization processes and activities from across the value chain such as marketing and sales, through newand its external stake- product development, manufacturing and inbound and outbound logistics.
The e-business era also involves management of a network of interrelatedorganization from its value chains or value networks. What is e-commerce management? Bothcommerce these terms are applied in a variety of ways; to some they mean the same, to others they are e-commerce quite different. As explained in Chapter 1, what is most important is that they are appliedAll electronically mediated consistently within organizations so that employees and external stakeholders are clearinformation exchanges about how the organization can exploit electronic communications.
These e-commerce transactions are either download-side e-commerce or sell-side e-commerce and the management issues involved withValue chain each aspect are considered separately in Part 2 of the book.
These plans need to focus on management of the many risks to success, some of which you may have experi-Value networks enced when using e-commerce sites, from technical problems such as transactions that fail,The links between an sites that are difficult to use or are too slow, through to problems with customer service ororganization and its fulfilment, which also indicate failure of management.
How is this book structured? Electronic business The overall structure of the book shown in Figure P. Within this overall structure, differences in how electronic com-both within an organiz- munications are used to support different business processes are considered separately.
Thisation and with external is achieved by distinguishing between how electronic communications are used, from download-stakeholders supporting side e-commerce aspects of supply chain management in Chapters 6 and 7, to the marketingthe range of business perspective of sell-side e-commerce in Chapters 8 and 9.
download-side Part 1: Introduction Chapters 1—4 e-commerceE-commerce transactionsbetween an organizationand its suppliers andother partners. Sell-side Part 1 introduces e-business and e-commerce. It seeks to clarify basic terms and concepts bye-commerce looking at different interpretations of terms and applications through case studies.
E-commerce transactions Chapter 1: Introduction to e-business and e-commerce. Definition of the meaning and scopebetween an organization of e-business and e-commerce. Introduction to business use of the Internet — what are theand its customers. Introduction to new business models and marketplace structures enabled by electronic communications.
Chapter 3: E-business infrastructure. Background on the hardware, software and telecommunications that need to be managed to achieve e-business. Chapter 4: E-environment. Describes the macro-environment of an organization that presents opportunities and constraints on strategy and implementation. Part 2: Strategy and applications Chapters 5—9 In Part 2 of the book approaches to developing e-business strategy and applications arereviewed for the organization as a whole Chapter 5 and with an emphasis on download-sidee-commerce Chapters 6 and 7 and sell-side e-commerce Chapters 7 and 8.
Chapter 5: E-business strategy. Approaches to developing e-business strategy. Differences from traditional strategic approaches.Managing staff access to the Internet involves taking decisions about the number of staff with access and how much time can be permitted and the nature of monitoring used for e-mails and web pages 57 Slide 3.
The valley presented a harsh environment with a barrier of mountains to the west making the way forward unclear. E-business strategy: b Strategy and tactics Activity 5. Technical project managers or webmasters who may understand the technical details of building a site, but have a limited knowledge of business or marketing fundamentals. As such, it can be used across several modules. Chapter 5.
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