Define E-business
The transformation of key business processes through the use of internet technologies
How can E-business be evaluated?
SAF
- Suitability - support overall strategy?
- Acceptability - to stakeholders? How will distributors react?
- Feasibility - can be expensive and require specialist skills
What are Chaffey’s eight areas where organisations should review and select strategic options?
- Digital business channel priorities - how much will be sold in store vs online?
- Market and product development strategies - which products should be delivered online?
- Positioning and differentiation strategies - how will it position compared to competitors?
- Business, service and revenue models - e.g. showing reviews on website
- Marketplace restructuring - disintermediation (removing distributors)
- Supply chain management capabilities - integrate more closely with suppliers - e-procurement
- Internal knowledge management capabilities - can tech help disseminate knowledge?
- Organisational resourcing and capabilities - structure change
What are the four stages of how advanced a company is in adopting e-business?
- Web presence - interaction with product catalogues and customer service
- E-commerce - transactional e-commerce
- Inegrated E-commerce - integrated with other systems, personalised service
- Digital business - full integration between internal processes and value network
What is a good model to analyse the impact of technology?
Value chain analysis
What are the characteristics of E-marketing (the 6 I’s)?
- Interactivity - pull mechanism as customer engages
- Intelligence - collect marketing information
- Individualisation - communications tailored
- Integration - integrated into other marketing channels e.g. voucher for making purchase claimed online
- Industry structure - disintermediation
- Independence of location - sell into international market with no sales
Define brand
A name, symbol or design that enables customers to identify the products of a supplier
What are the characteristics of traditional branding?
- Uses newspaper, TV, radio
- Costs more
- Less targeted
- Inflexible
- Cannot tell if been successful
- Hard to amend
What are the characteristics of online branding?
- Cheaper
- Real time changes made
- Measure success
What are the options for online brands?
- Migrate traditional brand online - use if strong rep
- Extend traditional brand - a variant adapted to online audience
- Partner with existing digital
- Create new digital brand
Define E-procurement
The purchase of supplies and services through the internet
What are the options for implementing E-procurement?
- Public web - individual buyers find individual suppliers on web e.g. Amazon
- Exchange - suppliers and buyers trade through a third party open marketplace - no structural relationship e.g. car trade online
- Supplier centric - individual supplier gives access to buying organisation for pre-negotiated product range - contractual
- Buyer centric - individual companies have contracts with different suppliers - ordering system maintained by buying organisation e.g. software suppliers
- B2B marketplace - buyer and supplier deal with each other through marketplace. Both bound by agreements with marketplace e.g. Alibaba
How can customers be acquired through e-business technologies?
- Search engine optimisation - high on search results
- Newsletters to customers
- Viral marketing - create a buzz, word of mouth
- Banner advertising in magazines and websites
- Social media - sponsoring
How can customers be managed through e-business technologies?
- Promotions
- Extranets
- Online community
- Opt-in emails
- Data mining
Define innovation
Conversion of new knowledge into a new product and putting this into actual use
Why is being a first mover a source of competitive advantage?
- Economies of scale before competitors
- Customers locked in through costs of switching
- Learning curve cost advantages
- Easier access to scarce resources
- Reputation
How can being a late-mover be an advantage?
- Imitate technology - less expensive
- Learn from mistakes of others
Define a business model
A value proposition for customers and an arrangement of activities that produces this value
What are the three elements of business models?
- Value creation - customers needs being met
- Value configuration - how activities are combined - who performs them, how they link
- Value capture - how value apportioned between participants
Define disruptive innovation
Process by which a product relentlessly moves up market and displaces established competitors.
Define a blockchain
A public form of bookkeeping that uses a digital ledger to allow individuals to share a record of transaction
Define cryptocurrency
A digital currency, which uses internet technologies to facilitate transactions made online
Define social innovation
Activity designed to address the most deep-rooted problems of society e.g. poverty, environment
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Chapter 1 - Strategy, leadership and culture10
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Chapter 2 - Stakeholders and social responsibility26
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Chapter 3 - Impact of corporate governance on strategy27
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Chapter 4 - The external environment13
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Chapter 5 - Strategic capability14
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Chapter 6 - Competitive advantage and strategic choice32
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Chapter 7 - Assessing and managing risk22
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Chapter 8 - Internal control systems25
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Chapter 9 - Applying ethical principles18
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Chapter 10 - Financial analysis30
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Chapter 11 - Applications of IT20
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Chapter 12 - E-business23
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Chapter 13 - Enabling success and strategic change47
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Chapter 14 - Process redesign18
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Chapter 15 - Project management38
