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This session focuses on the technological drivers of change that have shaped the modern economy, highlighting the evolution of internet-based commerce. It covers the historical context of the internet's development, key technological components, and their impact on market structure and competition. Participants will explore value creation and capture in the supply chain, the role of key technologies such as ERP and CRM systems, and the challenges and benefits of logistics and fulfillment in today's interconnected world.
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ELC 498 Course Overview DAY 2 Technological Drivers of Change
Agenda • Questions?? • Blackboard • 1st Perspective • Technological drivers of change
4 Perspectives • Technological Drivers Of Change • Creating Value: Economics Of Internet-based Commerce • Capturing Value: Market Structure And Competition • Creating And Capturing Value In The Supply Chain
Key Technology Components Pre-Internet
Key Technology Components With Internet Information Flows
Key Technology Components Post-Internet
Internet and World Wide Web • The Internet • WWW • JAVA • Search Engines Portal and growth
The Internet • ARPA -> ARPANET • Packet Switching • More networks appear • NSFnet • JANnet • BITnet • TCP/IP (1974) • “One protocol to glue them all”
WWW • HTTP & HTML • Tim Berners-Lee • MOSIAC • Marc Andreesen
JAVA • Interactivity • Client Side applets • Server side servelets • Portability • Runs in JVM
Search Engines, Portals & Growth • Needle in the haystack problems • Directories (Yahoo!) to Search Engines (Google) • 1.2 Billion users • 100 Million web sites • 120:1
The Internet and WWW -> Platform for eCommerce • Reach • Flexibility and ease of Use • Personalization • Interactivity • Asynchronous communication • Encyclopedic nature • Richness
Advances in Computers and Enterprise Systems • Moore’s Law – • Power to the desktop (then to the appliance?) http://www.intel.com/technology/mooreslaw/index.htm
Enterprise Resource Planning Systems • Client server replacement for the mainframe and legacy systems • Complexity folds in to “one size fits all” solution • Based on Intranet (extranets) • Digital nerve center for the entire enterprise • SAP & Peoplesoft
Customer relationship management • Began with the database • Rolodex on steroids • Sales force automation • Customer service and support • Usually tied to ERP system
Logistics and fulfillment • Capture the items and quantity desired (shopping cart) • Apply promotional pricing advise consumer • Notify if out of stock, date of likely shipping • Check with suppliers (drop ship?) • Obtain shipping and billing info • Determine special requirements • Delivery options? • Delivery timing? • Partial deliveries OK?
Logistics and fulfillment • back-orders? • Computer Shipping and handling costs • Total Cost? • Determine credit worthiness • Get Credit card info • Advise consumer if credit rejected • Complete transaction provide customer with order number • Clear transaction with credit card processor • Update inventory or ERP • Deliver order.
Logistics and Fulfillment • Shipping • Outsource? • UPS, FEDEX, DHL, USPS • In house • Distribution centers • Vehicle fleet • “Last Mile” Problem • Small number of parcels miles apart to individuals who may not be home
Summary • Internet-> WWW • Computer systems • ERP • CRM • Procurement and fulfillment logistics • Who there and what are they doing there? • All this happened in the last 20 years