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E-Commerce: The Central Challenge

E-Commerce: The Central Challenge. By: Jenny Ntuk January 19, 2006 INBS640. Delivery as the Major Challenge. E-Commerce delivery of goods and services is a challenge because it requires a different Mind-set Top management Definition of performance Measurement of performance.

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E-Commerce: The Central Challenge

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  1. E-Commerce: The Central Challenge By: Jenny Ntuk January 19, 2006 INBS640

  2. Delivery as the Major Challenge • E-Commerce delivery of goods and services is a challenge because it requires a different • Mind-set • Top management • Definition of performance • Measurement of performance

  3. Critical Core Competence • Delivery under e-commerce has become an area in which a business can distinguish itself • The competitive factors are • Speed of delivery • Quality • Responsiveness • Delivery has to be totally • Decentralized • Local • Detailed • Accurate

  4. E-Commerce Eliminates Distance • A business that can organize delivery can operate in any market, anywhere without any physical presence. • E-commerce enable businesses to offer a wider selection of products, sell in any market & offer various makers product or brands • E-businesses can sell whatever they can deliver. • E-customers have access to a whole range of products no matter who makes them. • E-commerce delivery of electronic information such as software requires just a click of button

  5. E-Commerce Separates • Selling and Purchasing • Selling is completed when order is received and paid for • Purchasing is completed only when purchase is delivered and satisfies purchaser’s want • Making and Selling • Production become Procurement

  6. How E-start-ups can stay afloat • By having a business plan • A positive cash flow within 18 months which gives the business • Ability to gain mind share • Market share • which ultimately lead to profitability • Rely on business gains instead of stock market gains • Dependability on stock market gains may leave the business in vulnerable to slightest downturn

  7. Impact of Internet • Is greater on non-profit than for-profit business • Skills in businesses changes very fast • Higher Education now demands • Highly focused (specialized) knowledge • A shift in the center of gravity of higher education from the education of the young to continuing education of adults

  8. Effect of continuing education on corporate structure • Corporation are structure around fewer layers of management • This cut down on miscommunication resulting from too many information relay • Those who relay information have to be very smart • Knowledge becomes obsolete incredibly fast • This makes continuing professional education of adult number one growth industry. • Most using the online program

  9. Organization “change leaders” have the mind-set for innovation • Innovation has to have a systematic approach • Timing is important • Sometimes strategies are more important than the innovation • Innovation is unpredictable e.g. Zipper case and novocaine • Rarely gets a second chance

  10. Secret of Growth and Profitability • Systematic abandonment or modification of products and processes, especially services • Eliminates waste • Results in new products

  11. Managing Successfully in time of dramatic change • Balance short term and long term • Financial strategy - keep eye on financial short term • Human resources strategy - Strong emphasis on development of people long term

  12. How toTurn transition to advantage • By examining every change • Looking out every window • Examining for opportunity or threat • Checking whether it is genuine change or a fad

  13. The future of business on the Internet • Businesses will be selling online and use a physical location to deliver e.g. Japanese 7 eleven stores • The design of a product, its manufacture, marketing, and servicing will be run as separate business but owned by the same financial control e.g. ford motors

  14. References: Kotter, John P. (1996). Leading Change, Harvard Business School Press, Boston, Massachusetts

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