huber ch07and8 - Information Systems: Creating Business...

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Information Systems: Creating Business Value by Mark Huber, Craig Piercy, and Patrick McKeown Chapter 7: E-Commerce for Consumers and Organizations
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E-Commerce Differences Innovative uses of the Internet have produced global competition with sellers being able to reach any potential buyer in the world. This is true for both the large retailers and for those selling in niche market. Technology has increased information density —the quality and quantity of information about products and services . Customers can obtain product guides, reviews, and prices from a myriad of Web sites creating business challenges.
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Mass Customization and Personalization One response to information density is to create business value based on a customization-oriented approach to e-commerce. Two approaches to customization are: mass customization and personalization. Mass customization is the ability to create custom products or services on-demand, eg, Dell customers can customize their PC. Personalization is a marketing message that a business personalizes for each potential customer’s interests based on searching, browsing, or buying habits, eg, Amazon.com.
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E-commerce and Competition E-commerce is having a dramatic effect on competition between organizations in a number of ways including: Reducing barriers to entry No one firm or person “owns” the entire market Enhanced collaboration/alliances Market niches multiply Changed marketplace drivers (forces that make things happen in the market, e.g., consumer preferences, number of suppliers a business can choose from)
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E-commerce Strategy An e-commerce strategy is a general formula for how a business is going to use computer networks and information systems to compete in a global marketplace. To build an e-commerce strategy requires two views of an organization’s strategy: what is wants to do (conceptual) and how it will do it (technology strategy). One strategy being used by many companies is customer relationship management which enables them to create one-to-one marketing experiences for their customers. Other e-commerce strategies include virtual showrooms, increased channel choices, wider component choice, and use of mobile technology. Mobile commerce is the use of laptops, mobile telephones, and personal digital assistants to connect to the Internet and Web to conduct many of the activities associated with e-commerce.
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E-commerce Business Models A business model defines how a company will meet the needs of its customers while making a profit. An e-commerce business model is a business model appropriate for conducting business via electronic networks. The next three slides list and give examples of e-
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This note was uploaded on 04/23/2008 for the course DSS 1011 taught by Professor Mendoza during the Spring '08 term at Saint Joseph's University.

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huber ch07and8 - Information Systems: Creating Business...

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