Activities direct and online marketing and promotion

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activities Direct and online marketing and promotion activities Ware- housing and shipping of customer orders Technical support and customer service activities C. Value Chain System of Software Developers Using Online Sales and Internet Delivery - Lowest Cost Software development activities Online marketing and promotion activities Systems to accept credit card payment and allow immediate download Technical support and customer service activities
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Companies need a strategic framework that can bridge  the gap between simply connecting to the Internet  and harnessing its power for competitive advantage.  The most valuable internet applications allow  companies to transcend communication barriers and  establish connections that will enhance productivity,  stimulate innovative development and improve  customer relations.
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Strategic Positioning Matrix: Strategic Positioning Matrix: To optimize the strategic impact of internet tech. Global Market Penetration (e.g. e-com websites) Product and service transformation (e.g. internet-based products/services) Cost and efficiency improvements (e.g. use of email) Performance improvement in Business effectiveness (e.g. Use of intranets and extranets) High Low High Internal drivers E-biz processes/collaboration/cost containment External drivers Customer connectivity/ competition/ technology
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Examples of Strategic Business Applications of IT Examples of Strategic Business Applications of IT Building a customer-focused e-business “The driving force behind world economic growth has  changed from manufacturing volume to improving  customer value. As a result, the key success factor for  many firms is maximizing customer value” Example: McAffe Associates Build a needed product, offer it free on the internet on trial basis, provide high quality support, then collect license fees Make investments (from cost savings) to maximize customer satisfaction (thanks to a shrunk value chain) Heavy reliance on the Web as the vehicle for distributing product enhancements, customer participation in MR and PD, providing top quality service and technical support
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Examples of Strategic Business Applications of IT Examples of Strategic Business Applications of IT Reengineering business processes A fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in cost, quality, speed and service (often enabled by Organizational redesign and using cross-functional ERP systems) Think of an Order Management Process consisting of several business processes (Proposal, Commitment, Configuration, Credit checking, Delivery, Billing, Collections) and crosses the boundaries of traditional business functions (Manufacturing, sales, finance, logistics)
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Examples of Strategic Business Applications of IT Examples of Strategic Business Applications of IT Reengineering business processes Example: Ford motor company Not simply put up websites, but reinvent the way they do business – changing how they design, manufacture, distribute, collaborate inside and outside, deal with suppliers Ford’s global intranet – thousands of designers collaborate on design projects; extranet – to
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