COMP7880: E-Business Strategies Internal organization of e-business activities Dickson Kw chiu PhD, smieee sAcm life MhCs Jelassi Enders: Chapter 9
1 Dickson K.W. Chiu PhD, SMIEEE, SMACM, Life MHKCS Jelassi & Enders: Chapter 9 COMP7880: E-Business Strategies Internal organization of e-business activities
Our roadmap 12 Mobile e-commerce strateg F-h usiness strategy Strategic Strategy formulation Strate analysis implementation External analys options organisation Opportunities/ threats Strengths/ Sustaining Exploring Interaction with weaknesses competitive new market Implementation advantage suppliers spaces Internal analysIs Creating and Interaction with capturing value users/customers COMP7880-I0-2
Strategy options External analysis Internal analysis Sustaining competitive advantage Internal organisation Implementation Exploring new market spaces Interaction with suppliers Interaction with users/customers Creating and capturing value Strategic analysis Strategy implementation 3 4 5 6 7 8 9 10 11 13 E-business strategy 12 Mobile e-commerce strategy Opportunities/ threats Strengths/ weaknesses Our Roadmap Strategy formulation COMP7880-IO-2
PC industry(1990s)became increasingly fragmented IBM- Micro processors Integrated Operati ication Integ tware cIrcu ems value nemory chain (1985) Compaq Retail Microsoft Windows Unbundled Intel Office Megastore value Apple Netscape Online chain Motorolar UNIX Adobe Post orde 1999) OS Mac c Direct LInux rce: Adapted from D. Heuskel (1999)
IBMIntegrated value chain (1985) Micro processors, integrated circuits, memory chips PCs Operating systems Application software Marketing, sales and distribution Retail Megastores Online Post order Unbundled value chain (1999) Intel Motorola AMD Cyrix Compaq Dell Apple IBM Windows UNIX Mac OSOS/2 Microsoft Office Netscape Adobe Linux Direct sales Source: Adapted from D. Heuskel (1999), p. 53. PC industry (1990s) became increasingly fragmented
Variety of options for making a product or service Market entail the purchase from an external provider on transactions an individual one-by-one contractual basis ong-term entail the purchase from an external provider on a contracts contractual basis spanning over an extended period of time entail the close co-operation of two separate Alliances firms that join up in the production of a certain product or service. Parent entail the setting up of a distinct firm that subsidiary operates separately from yet under the auspices of, the parent company internal entails a process that is managed completely production internally, without any outsourcing to external providers
Variety of options for making a product or service. Market transactions Long-term contracts Alliances entail the purchase from an external provider on a contractual basis, spanning over an extended period of time. entail the close co-operation of two separate firms that join up in the production of a certain product or service. entail the purchase from an external provider on an individual one-by-one contractual basis. Parent/ subsidiary Internal production entail the setting up of a distinct firm that operates separately from, yet under the auspices of, the parent company. entails a process that is managed completely internally, without any outsourcing to external providers
Reasons favoring make or buy decisions uring Reasons, fa make decisions ouring decisions Strong linkage between High economies of scale activities High capital requirements Confidentiality of information Specialized know-how High transaction costs Higher efficiency of the open markets Think, how does lr impacts?
Reasons favoring ‘make’ or ‘buy’ decisions Reasons favouring ‘make’ decisions Strong linkage between activities Confidentiality of information High transaction costs High economies of scale High capital requirements Specialized know-how Higher efficiency of the open markets Reasons favouring ‘buy’ decisions Think: how does IT impacts?