1 This focus is driven by the adoption
of the web as a new channel for
product distribution, marketing, and
interaction with customers.
2 The web as the enabler for
2.1 The enterprise information system supports
suppy-chain processes and process coordination
within and between enterprises.
2.1.1 The infrastructure includes: 1. A global information
network for supporting various electronic services such as
brokerage and contrating payment and banking
transaction processing. 2.. Electronic access to external
data. 3. Electronic connections to customers that support
such activities as filling orders and customers service.
2.1.2 !. Pre-software and system level, where software
objects and components have been used as the
building blocks to make the functional components
portable and inter-operable.
2.1.3 2. Pre-process and application level, where business
processes and applications, such as order fulfillment,
customer services, etc. have been managed as
separate modiles, sometimes run at remote sites
by applications service providers (ASPs)
2.1.4 3. The enterprise level, where business
units can be quickly assembled to form
virtual enterprises to explore a window
of market opportunities.
3 Organization, designs, information
sharing, and coordination
3.1 Organizations are moving toward flatter and
more adaptive strictures, cometimes referred to
as the market oriented networked organizations
3.1.1 Succesfully implementing e-business technology reduces
transaction costs, and, therefore, the boundaries between
markets and internal organizations are shrinking
(Williamson,, 1986) in favor of more market orientation.
3.1.2 A supply-chain network is a type of
MNO when the business units are
assembled through market forces.
3.1.3 This improves e-business management by 1. Reducing
production costs through lower procurement and
distribution costs. 2. Better utilization of resources through
enterprise specialization. 3. Greater integration of
3.1.4 Bullwhip effect, in which a slight variation in demand
at the consumer end gets increasingly amplified and
results in wild swings at the supplier end.
4 Multi-channel management
4.1 WEB ENHANCES TRADITIONAL CHANNELS. This is a commonly used crossmarketing
model, Major TV networks, for instance, often use the Web to provide more detailed
coverage than their traditional channels, thus enhancing their brand and their traditional
4.2 TRADITIONAL CHANNELS PROMOTE THE WEB CHANNEL. All e-commerce companies use
traditional media to promote their brands. Some traditional retailers put kiosks in their
stores to provide Web access to assist any need for additional product search, or allow
customers to return goods purchased online to local stores.
4.3 WEB CHANNEL USED TO EXPLORE NEW MARKETS. Because of the specific demographics of web
users, some companies use the web to reach out to segments of the market they don't normally
reach. Furthermore, the web enables an e-business to reach out to consumers around the world.
4.4 ADD NEW PRODUCT LINES ONLY FOR THE WEB. For the same reason, some companies use the web
to sell new products. This is especially effective when the business traditionally depends on powerful
dealers/distributors and, therefore, selling the same products direct is not an immediate option. Also,
major consumer goods companies have found the web an effective channel to test market new
4.5 INTEGRATE THE WEB AND TRADITIONAL CHANNELS. This is the "click mortar" and model, which is
aiming at combining the best of traditional and web channels. Pure dot-corn companies need more
traditional distribution channels to provide more efficient logistics and better customer services..
Traditional channels need to add the web channel to gain new capabilities for searching, navigation,
and interactive, hyperlinked information retrievals.
4.6 CANNIBALIZE FRADITHMAL CHANNELS. Sometimes the new Web channel Lakes over the major share of the
business. When this is inevitable in a given industry, a company might as well cannibalize the resources and focus
its effort on the web channel, rather than been eaten up by competitors' aggressive web channels. This happens in
the industry where the web will inevitably become the main channel.
4.7 BUILDING ALLIANCES BETWEEN TRADITIONAL AND INTERNET COMPANIES. The alliances recently built between
car-markers and pure e-commerce companies, i.e, belong to this model, which stems from the desire to build synergy
between the web and traditional channels.