Complementing Porter's model:Co-opetitionvalue networkframeworkSupplierCompetitorsFirmComplementorsBuyerCOMP7880-I/E-6
Competitors Supplier Buyer Firm Complementors Complementing Porter’s model: Co-opetition value network framework COMP7880-I/E-6
How the Internet impacts all activities invalue chain (Support Activities)FirmInfrastructureWeb-based,distributedfinancialandERP systems:On-lineinvestorrelations(e.g.informationdissemination,broadcastconferencecalls)HumanresourcemanagementSelf-servicepersonnelandbenefitsadministrationWeb-basedtrainingInternet-basedsharinganddisseminationofcompanyinformatiorTechnologydevelopmentCollaborativeproductdesign acrosslocations andamongmultiplevalue-systemparticipants.Knowledgedirectoriesaccessiblefromall parts of theorganisation.Real-timeaccessbyR&Dtoonlinesalesand serviceinformationProcurement:Internet-enableddemandplanning.Otherlinkageofpurchase,inventory,andforecastingsystemswithsuppliers.Directand indirectprocurementviamarketplaces,auctionsandbuyer-sellermatchingWeb-distributed supply chainmanagementCOMP7880-I/E-7
Web-distributed supply chain management Firm Infrastructure • Web-based, distributed financial and ERP systems • On-line investor relations (e.g. information dissemination, broadcast conference calls) Human resource management • Self-service personnel and benefits administration • Web-based training • Internet-based sharing and dissemination of company information Technology development • Collaborative product design across locations and among multiple value-system participants • Knowledge directories accessible from all parts of the organisation • Real-time access by R&D to online sales and service information Procurement • Internet-enabled demand planning • Other linkage of purchase, inventory, and forecasting systems with suppliers • Direct and indirect procurement via marketplaces, auctions and buyer-seller matching How the Internet impacts all activities in value chain (Support Activities) COMP7880-I/E-7
How the Internet impacts all activities invaluechain(PrimaryActivities)OperationsOutbound logisticsMarketing and salesAfter-salesserviceInboundlogisticsIntegrated infor-.Real-timetransactionof.Online saleschannels·OnlinesupportoiReal-ime integratedmationexchangeordersincludingwebsitesandcustomerservicescheduling.shipping.scheduling and.Automatedcustomer-marketplacesrepresentatveswarehousedecision making in·Real-timeinsideand·Customerself-specificagreementsmanagement,demandin-house plantsoutsideaccesstoand contracttemsserviceviawebsitesmanagement&.Customerandchannelcustomerinformationand intelligentandcomponentsplanningandsuppliersaccesstoproductproductcataloguesservicerequestadvancedplanning&developmentanddynamicpricingprocessingscheduling across thedeliverystatusinventoryavailabilityReal-time fieldcompany and its.Collaborativeonlinesubmissionofserviceaccesstosuppliersintegration withquotes,andorderentrycustomeraccount·Disseminationthrough.Onlineproductcustomerforecastingreview,work-orderout thecompanyofsystemsconfiguratorsupdate,etc.real-timeinboundandCustomer-tailoredIntegrated channelin-progress inventorymanagementmarketing via customerdataproflingWeb-distributed supplychainmanagementCOMP7880-I/E-8
Inbound logistics • Real-time integrated scheduling, shipping, warehouse management, demand management & planning, and advanced planning & scheduling across the company and its suppliers • Dissemination through out the company of real-time inbound and in-progress inventory data Operations • Integrated information exchange, scheduling and decision making in in-house plants and components suppliers Outbound logistics • Real-time transaction of orders • Automated customerspecific agreements and contract terms • Customer and channel access to product development and delivery status • Collaborative integration with customer forecasting systems • Integrated channel management Marketing and sales • Online sales channels including web sites and marketplaces • Real-time inside and outside access to customer information, product catalogues, dynamic pricing, inventory availability, online submission of quotes, and order entry • Online product configurators • Customer-tailored marketing via customer profiling After-sales service • Online support of customer service representatives • Customer selfservice via websites and intelligent service request processing • Real-time field service, access to customer account review, work-order update, etc. Web-distributed supply chain management How the Internet impacts all activities in value chain (Primary Activities) COMP7880-I/E-8
2 generic approaches ofcompetitive advantageUnigueproductwithpricepremiumGoal of the companyBusiness strategyProvide.somethingPerformanceDifferentiationuniquethat isvaldableadvantageto buyersCompetitiveadvantageProvide a productCost leadershipwithlowestpricePriceadvantage(Cost/price leadership)Become the costleaderintheindustrySimilar productwithlowerpriceCOMP7880-SO-9
Goal of the companyBusiness strategy Provide something unique that is valuable to buyers Provide a product with lowest price Become the cost leader in the industry Differentiation Cost leadership (Cost/price leadership) Unique product with price premium Performance advantage Price advantage Similar product with lower price Competitive advantage 2 generic approaches of competitive advantage COMP7880-SO-9
E-business strategy changes based onSWOT AnalysisStengths-SWeaknesses-WThe organisation1.Existingbrand1.Brandperception2.Existing customerbase2.Intermediary use3.Technology/skills3.Existingdistribution4.Cross-channelsupportSO strategiesWO strategiesOpportunities-01.Cross-sellingLeverage strengths toCounterweaknessesthrough2.New marketsmaximiseopportunitiesexploitingopportunities3.New services=Attacking strategy=Build strengthsfor4.Alliances/co-brandingattacking strategyThreats-TST strategiesWT strategiesLeverage strengths toCounterweaknesses and1.Customer choice2.New entrantsminimise threatsthreats3.Newcompetitiveproducts=Defensive strategy=Build strengthsfor4.Channel conflictsdefensive strategyCOMP7880-SCA-10
E-business strategy changes based on SWOT Analysis COMP7880-SCA-10