102 e-business model - 20 cases - v6.8 - update 9 jan 2014

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102 e-business model - 20 cases - v6.8 - update 9 jan 2014

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102 e-business model - 20 cases - v6.8 - update 9 jan 2014

  1. 1. 30 E-Business Models Analysis By Dr. Nguyen Van Thoan
  2. 2. ECOM & MIS & EMARK Think big, Start small, Action Fast
  3. 3. 30 CASES Think big, Start small, Action Fast
  4. 4. 30 CASES Think big, Start small, Action Fast
  5. 5. CLC.K49.TMAE306.2 Ecommerce Stories • Day 4 – Chapter 2: Ebusiness Model • 8 key elements of Ebusiness model • 20 top stories about Ecommerce (success and failure) • How many ways to sell online? • Guide Case for Presentation (See Forum). • Chapter 2 - Quiz
  6. 6. E-Commerce – CTTT, CLC, FB 8 Key Elements of a Business Model 1. Value proposition 2. Revenue model 3. Market opportunity 4. Competitive environment 5. Competitive advantage 6. Market strategy 7. Organizational development 8. Management team E-Commerce - Dr. Nguyen Van Thoan 8
  7. 7. E-Business Model • What can you tell us about Facebook & what can we learn from this e-business model? 800/955 million active users 3rd size only after Google and Yahoo New kind of e-commerce  “Social e-com” Largest: search engine, content, ad Loser 58035 mio networks 500 shareholders 2006: Yahoo offer to buy 1 bio 2012: Value 104 bio 2011: Value 50 bio 2007: MS buy 1,6% stake (240 mio)  15 bio February 4, 2004 Rev: 3.71 billion (2011) May 14, 1984 Buy Disney ticket 12% of top Internet retailers Ads – what, locations, preference, behavior…
  8. 8. Lessons from this case May 14, 1984 1. Idea  Software 2. Programming as core competency 3. INVESTOR 4. Strategy Market 5. Competition 6. Community 7. New application 8. INFRASTRUCTURE http://www.youtube.com/ecomftu2012
  9. 9. Behind the scene? May 14, 1984 History http://www.youtube.com/watch?v=sffGo3GAMIQ Data Center http://www.youtube.com/watch?v=Y8Rgje94iI0 Data Center 2 http://www.youtube.com/watch?v=nh0xEhxx4zk http://www.youtube.com/ecomftu2012
  10. 10. E-Business Model • What can you tell us about Amazon.com & what can we learn from this e-business model? Software development center World largest 130 publishers 300.000 books  2 millions 2005: World’s 3largest Linux DB 25 HP servers Amazon technology CRM & ISM See Turban, 2012, EC, page 100 & 546 KEYS: size – innovation – personalization – service quality Founded: 1994 Rev: 48.07 billion (2011) Net income: 631 mio Employees: 69.100 Books Ebooks Digital Third Parties --- 2003 Change Biz model: OWN inventory and logistics Suggest box Fulfillment & waehouse center Gift ideas Web fulfillment contractor for Target 2 bio Ware house Leaders in WH mgmt Automation Packaging Inventory mgmt
  11. 11. Lessons from this case? 1. Biggest online store (FIRST) 2. Make the products find customers (SMART IDEA) 3. Lower prices (MARKETING) 4. Creative marketing techniques See Turban, 2012, EC, page 100 & 546 (Customer comments, reviews, product recommendations and cross selling, etc…) - SMART 5. New technologies to reduce labor costs 6. A shop that sells everything
  12. 12. Lessons from this case? 1. Supporting products 2. Personalized customer services 3. Outsourcing strategy (Supplier) 4. Customer services and branding 5. Customer loyalty 6. Inventory management (New strategies) See Turban, 2012, EC, page 100 & 546
  13. 13. Behind the Scene? Jeff Bezos talk http://www.youtube.com/watch?v=-hxX_Q5CnaA Jeff Full Speech http://www.youtube.com/watch?v=YlgkfOr_GLY Distribution Center http://www.youtube.com/watch?v=bfFsqbIn_3E Youtube channel http://www.youtube.com/user/amazon
  14. 14. Discussion – Star time! • What are the key factors for a successful website?
  15. 15. What are the key factors to a successful website? • Loading time • Easy to read • One click to reach important thing • Good interface • Good background music • Fast and secure payment • Good SEO • Cookies and checking customer behaviors • Good design and structure of the website • Social network • Updated and precise information • Good security • Target market and segmentation
  16. 16. Dell Computer – Michael Dell Dell World 2012 - Michael Dell’s Speech http://www.youtube.com/watch?v=5OqQq14d-dE Youtube Channel https://www.youtube.com/dell
  17. 17. Wikipedia History 1 http://www.youtube.com/watch?v=gXD1TRGafQ0 History 2 http://www.youtube.com/watch?v=oVFPW0r4jWk Writer http://www.youtube.com/watch?v=3Knv6D6Thi0
  18. 18. See Laudon, 2012, EC, page 759 E-Business Model What can you tell us about Volkswagen what can we learn from this e-business model? 90% Global Purchases 60 online applications RFQ, contract, catalogue, order, payments… 3rd largest car manufacturer producing: 7.29 million cars Rev: 175 billion USD (2010) Brand: Volkswagen, Audi, Bentley, Bugatii, Lamborghini… Porche (2011) 390.000 employee WEBSITE 36,000 suppliers 110,000 users Online catalogue: 2.5 million itesm From 590 global suppliers 14.200 internal users 2010: 3.000 online contracts – value: 16.6 billion USD 61 plants – components, automotive parts… 60% rev – 100 billion/year VWGroupSupply.com Private procurement portal B2B network Vs. Covisint Ford, General Motors, Daimler Chrysler ECAP (e-capacity management) Material requirements 400 suppliers 4.000 critical parts Volkswagen means "people's car" pronounced [ˈvɔlksˌ v aːɡən] 2000: 1.500 2012: 200 B2B marketplace http://www.youtube.com/user/Volkswagen
  19. 19. Brick & Click See Turban, 2012, EC, page 143 http://www.youtube.com/user/Walmart E-Business Model What can you tell us about Walmart what can we learn from this e-business model? 2002 Online order, help desk 1 million products online Selling songs online 2006: rebuild website – 4 clicks 2007: Site to Store Rank 2nd to Amazon Link to Facecbook Largest retailer in the world Rev: 405 billion (2010) 2.1 million employees (1.4 U.S.) 8.700 stores (15 countries) Low prices Online: 1996 – difficult 2002: improvement WEBSITE About Walmart.com Target: 25.000 USD income Online: 60.000 USD Partner with AOL Internet connection Walmart Technology Sam Walton (1918 – 1992) Started in 1962 7 Bill Gates Michael Dell Jack Welch IT as White House
  20. 20. Brick & Click See Turban, 2012, EC, page 143 http://www.youtube.com/user/Walmart E-Business Model 1. selling shoes online 4. ShoeSite to Zappos "zapatos," "shoes" Zappos has ten core values billion 5. Critical success factors: - Large selection - Fast delivery - Positive culture - Customer service 8. BRAND * successful with shoes * leverage into other products. 2. footwear in the US is a 40 billion dollar market 5% = mail order 3. Investment 500.000 USD 6. Amazon? leverage its supplier relationships, while maintaining a separate brand. 9. Order fulfillment - large warehouse of products - fast delivery 7. “WOW” * customer experience * huge selection * excellent service November 2009 Amazon buy for a reported $1.2 Sub of Amazon.com Retail 1999 Nevada, United States Nick Swinmurn, founder Products Shoes, handbags, eyewear, accessories, apparel Revenue US$1 billion (2009) Website zappos.com
  21. 21. Alibaba.com
  22. 22. Alibaba.com Subscription fee: 250  3.000 USD/year 1-22 E-commerce: Marketplace, B2B portal 1st, leader, China firms ? What else? Finding Buyer & Sellers Adversiting products & services – 2 million businesses US ? superpages EU ? europages Japan ? Vietnam ? Market strategy: one to one service? Competitive: local, free, trade promote org? Millions of China, US, EU, other firms Management TEAM? Jack Ma & 17 in 1999 79 million registered users 240 countries March 31, 2012. ‘Open, Sesame,’
  23. 23. Alibaba.com (advanced) Website design? Server, software, security? Valur for Seller? Services for Paid MEMBERS? Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Value for Buyers? Communication? CRM: Customer Relationship Management? https://www.youtube.com/user/teamalibaba?feature=results_main
  24. 24. Boeing.com Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Where are we?
  25. 25. Boeing.com 1. World largest 2. Revenue from B2B NOT concern 3. Concern: customer service !!! Founded: Seattle, Washington, US (1916) Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Founder(s): William E. Boeing Revenue: US$ 68.735 billion Operating income: US$ 5.891 billion Profit: US$ 4.018 billion (2011) Employees: 174,225 (June 28, 2012) PARTS Single point Maintenance SERVICE Intermediary: supplier – airlines ONE-STOP SHOPPING Mechanic  BOEING  Producer EDI  Internet: normal PC, connection http://www.boeing.com/commercial/747fa mily/pf/pf_facts.html
  26. 26. Boeing.com Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 1996: PART online 50% of customers ½ million inquiries first year Founded: Seattle, Washington, US (1916) Founder(s): William E. Boeing Revenue: US$ 68.735 billion Operating income: US$ 5.891 billion Profit: US$ 4.018 billion (2011) Employees: 174,225 (June 28, 2012) PARTS Single point Maintenance SERVICE Intermediary: supplier – airlines ONE-STOP SHOPPING Mechanic  BOEING  Producer EDI  Internet: normal PC, connection http://www.boeing.com/commercial/747fa mily/pf/pf_facts.html
  27. 27. Boeing.com Practice Assignment: Create an account on YOUTUBE – advertising channel Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
  28. 28. E-Banking Solutions? • What can you tell us about Facebook & what can we learn from this e-business model? 800/955 million active users Industry Banking Software Founded: Geneva, Switzerland Products TEMENOS T24 Insight: TEMENOS COREBANKING (TCB) Revenue: $914 million Employees: 4,500 CORE BANKING COMPARISON Core banking http://www.inntron.com/core_banking.html Temenos hiện đang là đối tác chiến lược của các ngân hàng ở Việt Nam như: Techcombank, Military Bank, Sacombank, Sea Bank, VP Bank, Global Bank… VIDEOS http://www.temenos.com/products/t24/#
  29. 29. E-Banking Solutions?
  30. 30. Joomla - VirtueMart Channel http://www.youtube.com/watch?v=gXD1TRGafQ0
  31. 31. UPS • DIAD - Delivery Information Acquisition Device
  32. 32. Google • Google – Data Center
  33. 33. Salefoce • Online Services (Cloud)
  34. 34. FedEx • IT lized Operation
  35. 35. ESPN • Online news and digital content
  36. 36. REI • CRM – Understand customers
  37. 37. Suzuki - Oracle • Enterprise Database
  38. 38. MS – Dynamic CRM • Enterprise Database
  39. 39. Sino Steel – ERP • Enterprise Database
  40. 40. Groupon • Enterprise Database
  41. 41. Etsy • Marketplace
  42. 42. Ford – Auto Exchange • B2B marketplace
  43. 43. IBM - Watson • Intellectual Machine?
  44. 44. Alfresco • Open source Document Management
  45. 45. Loreal - KM • MS Sharepoint
  46. 46. Fresh Direct • Online Grocery
  47. 47. IBM – BPM • Business Process Management
  48. 48. MS – Dynamic CRM • Enterprise Database
  49. 49. MS – Dynamic CRM • Enterprise Database
  50. 50. MS – Dynamic CRM • Enterprise Database
  51. 51. MS – Dynamic CRM • Enterprise Database
  52. 52. MS – Dynamic CRM • Enterprise Database
  53. 53. Building an E-commerce Site: A Systematic Approach VViiddeeoo lliinnkkss  Amazon.com – Warehouse robots  http://www.youtube.com/watch?v=Abvdd9UdBus  Amazon.com – UK order fulfillment  http://www.youtube.com/watch?v=gk5-blcvF9E  Amazon.com – Jeff Bazoz interview  http://www.youtube.com/watch?v=pVp6WqS7L0M  Amazon.com – Order Fulfillment by A – FBA  http://www.youtube.com/watch?v=jVVa83MnvdY Copyright © 2012 Pearson Education, Inc. Slide 4-53
  54. 54. Building an E-commerce Site: A Systematic Approach VViiddeeoo lliinnkkss  Tommy Hilfiger  http://www.youtube.com/watch?v=POb10N4GSV0 Catalogue:  Photo  3D  Virtual model  Video – youtube (embed) Copyright © 2012 Pearson Education, Inc. Slide 4-54
  55. 55. Building an E-commerce Site: A Systematic Approach VViiddeeoo lliinnkkss  Future supermarket  http://www.youtube.com/watch?v=VykB2pVW_wg  Future Retails in details  http://www.youtube.com/watch?v=EX5d-aOdk7A  Online shopping concepts  http://www.youtube.com/watch?v=GAyvTVQdXqc  Future model for Retail  http://www.youtube.com/watch?v=f0gQP8ktmSA Copyright © 2012 Pearson Education, Inc. Slide 4-55
  56. 56. Building an E-commerce Site: A Systematic Approach Copyright © 2012 Pearson Education, Inc. Slide 4-56
  57. 57. Building an E-commerce Site: A Systematic Approach Copyright © 2012 Pearson Education, Inc. Slide 4-57
  58. 58. Building an E-commerce Site: A Systematic Approach http://www.youtube.com/user/tommyhilfiger Copyright © 2012 Pearson Education, Inc. Slide 4-58
  59. 59. Case: Tommy Hilfiger World best premium life style brands Target: 18-35 Online store since 2000 - catalogue Online sale: 2004 2006: more than online sale – more interactive Founded in 1985 by Tommy Hilfiger Casual clothing 1.000 stores 2010 bought by, owner of Calvin Klein, for 3 bio USD Tommy.com Founded in 1985 by Tommy Hilfiger Net income: 1.6 bio (2009) Outsouce? VP: Ecommerce LOOK and FInEcreEasLe: 30% s2a0le1s0-2011: Facebook – 1,7 mio LIKEs Copyright © 2012 Pearson Education, Inc. Slide 4-59
  60. 60. Case: Tommy Hilfiger - website In business: 5 years – has brands A website everyone can be proud of! Cool stuff on that! No new IT for Ecommerce Look & Feel ATG as solution provider – specialized in ecommerce State of the Art No infrastructure, no software, no IT staff 360 degree views Compate Suggestions Read comments Specific cut and rise Mobile version Smart phone purchase Facebook: 1.7 mio likes iPhone apps Virtual Fitting ROOM Copyright © 2012 Pearson Education, Inc. Slide 4-60
  61. 61. 30 IT Applications By Dr. Nguyen Van Thoan
  62. 62. Why E-Commerce is NOT Easy Business Management Manufacturing Service System A&D Project Management Ecom, Emark, MIS - Management Hardware Computer Super-computer Data center Software Networking Programming Server App development Web devpt Security Cisco – CCNA - CCNP
  63. 63. IT Applications Costs vs. Benefits
  64. 64. IT Applications 20 E-Marketing techniques/skills
  65. 65. 20 excel skills
  66. 66. 10 Applicable Rules in IT By Dr. Nguyen Van Thoan
  67. 67. 10 Applicable Rules in IT Pareto noticed that 80% of Italy's land was owned by 20% of the population richest 20% of the world's population controlling 82.7% of the world's income Even if we take the ten wealthiest individuals in the world, we see that the top three (Carlos Slim Helú, Warren Buffett, and Bill Gates) own as much as the next seven put together •80% of your profits come from 20% of your customers •80% of your complaints come from 20% of your customers •80% of your profits come from 20% of the time you spend •80% of your sales come from 20% of your products •80% of your sales are made by 20% of your sales staff 80% of your sales come from 20% of your clients 20/80 rule (1848 – 1923) (1904 – 2008) http://en.wikipedia.org/wiki/Pareto_principle For example, Microsoft noted that by fixing the top 20% of the most reported bugs, 80% of the errors and crashes would be eliminated
  68. 68. 10 Applicable Rules in IT 80% of your sales come from 20% of your clients 20/80 rule (1848 – 1923) (1904 – 2008) http://en.wikipedia.org/wiki/Pareto_principle For example, Microsoft noted that by fixing the top 20% of the most reported bugs, 80% of the errors and crashes would be eliminated The "90–9–1" version of this rule states that 1% of people create content, 9% edit or modify that content, and 90% view the content without contributing. that 20% of a group will produce 80% of the activity
  69. 69. E-Commerce – CTTT, CLC, FB 8 Key Elements of a Business Model 1. Value proposition 2. Revenue model 3. Market opportunity 4. Competitive environment 5. Competitive advantage 6. Market strategy 7. Organizational development 8. Management team E-Commerce - Dr. Nguyen Van Thoan 8
  70. 70. E-Commerce – CTTT, CLC, FB 8 Keys to Success 1. Passion (do it for love, not for money) 2. Work 3. Good 4. Focus 5. Push 6. Creative/idea – Think 7. Serve/share/Sacrifice 8. Persistence 8 E-Commerce - Dr. Nguyen Van Thoan
  71. 71. E-Commerce – CTTT, CLC, FB 8 Keys to Success 1. Quan hệ (duệ) 2. Tài nghệ 3. T… tệ 4. H…. đệ 5. Công nghệ 6. …. 7. gEne 8. hEalth ieMBA.b03 (gu/sai/rai/tai) 8 E-Commerce - Dr. Nguyen Van Thoan
  72. 72. E-Commerce – CTTT, CLC, FB 4 types of RICH 4 E-Commerce - Dr. Nguyen Van Thoan
  73. 73. E-Commerce – CTTT, CLC, FB Day 1 – Introduction of Ecommerce • 10 notes for the Course 1. Combination of Offline class & Online course 2. Ecommerce (IT application in Commerce, Business & Management) 3. Minimum requirements: IT, Ecom, Emark, MIS basic understanding & using computer 4. Class participation: Read, Listen, Speak, T/W 5. English improvement & Knowledge/Skills E-Commerce - Dr. Nguyen Van Thoan
  74. 74. E-Commerce – CTTT, CLC, FB Day 1 – Introduction of Ecommerce • 10 notes for the Course 6. Web: http://elearning.ftu.vn 7. Textbook: Ecommerce (Laudon, Turban – 2012) 8. Group work: website (4-5) 9. Individual: case presentation (2) – Telling stories! 10.Assessment: 10/30/60 - Quiz: 10% - Group/Website: 20% - Midterm: 10% - Individual: 20% - FINAL: 40% E-Commerce - Dr. Nguyen Van Thoan
  75. 75. E-Commerce – CTTT, CLC, FB Q1. What is electronic commerce? What is electronic commerce Differentiate E-Commerce & E-Business Find 2 examples to illustrate Ecom & Ebiz E-Commerce - Dr. Nguyen Van Thoan
  76. 76. E-Commerce – CTTT, CLC, FB Q2. What are the two key benefits of EC? When top managers/directors consider implementation of IT application (or Ecommerce, Ebusiness application), what are the TWO most important things they need to know? E-Commerce - Dr. Nguyen Van Thoan
  77. 77. E-Commerce – CTTT, CLC, FB TMA.306E.1 - Clips Ecommerce Future of retail E-Commerce - Dr. Nguyen Van Thoan
  78. 78. E-Commerce – CTTT, CLC, FB TMA.306E.1 - Discussion Trial fee paid test online Find an example of Ecom/Ebiz around you SMS Banking E stock Email marketimg Website design service Alibaba.com E-conference Ecommerce Online shop selling books E-Commerce - Dr. Nguyen Van Thoan Elearning ATM Internet banking Vinatour.co m.vn Real estate online advertising Megastar E-ticket (Airlines) Advertise on fb Muachung appstore Toeft.com E-document on violet.com Game online (Zing) Hotel booking Ebay online auction Google store Mobile marketing on mobile application tiki.vn IKea Newspaper subscription Selling & buying copy right Buying clothes online Unlock iPhone online Vov.vn Banner advertising Online booking Buying domain emedical
  79. 79. E-Commerce – CTTT, CLC, FB TMA.306E.1 - Discussion Benefits of Ecommerce? Faster Competitive price Better information Ecommerce E-Commerce - Dr. Nguyen Van Thoan Gain more customers Recorded Find products easily Lower Costs Reduce travel time Easy customers’ feedback Overcome geographical limitations 24/7 stores more freedom Increase profit/sales No need physical offices More Flexible Global access Less HR Less inventory
  80. 80. E-Commerce – CTTT, CLC, FB Day 1 – MIS (Ecom, Emark) – K51CTTT • 10 notes for the Course 1. Combination of Offline class & Online course 2. MIS (IT application in Commerce/Business & Management) 3. Minimum requirements: IT, Ecom, Emark, MIS basic understanding & using computer 4. Class participation: Read, Listen, Speak, T/W 5. English improvement & Knowledge/Skills E-Commerce - Dr. Nguyen Van Thoan
  81. 81. E-Commerce – CTTT, CLC, FB Day 1 – MIS (Ecom, Emark) – K51CTTT • 10 notes for the Course 6. Web: http://elearning.ftu.vn 7. Textbook: Information Systesm Today 4th Edition, Valacich, 2010 (paper copy) Management Information Systems 12th Edition, Laudon, 2012 (ebook) 6. Group work: website (4-5) 7. Individual: case presentation (2) – Telling stories! 8. Assessment: 10/30/60 - Quiz: 10% - Group/Website: 20% - Midterm: 10% - Individual: 20% - FINAL: 40%` E-Commerce - Dr. Nguyen Van Thoan
  82. 82. E-Commerce – CTTT, CLC, FB Day 1 – MIS (Ecom, Emark) – K51CTTT • 10 Practice 1. Word, Excel, Power Point 2. Computer hardware, software 3. Online applications 4. Ecommerce skillls: website, selling online 5. Emarketing skills: youtube, email 6. Group/Website: 20% 7. Midterm: 10% 8. Individual: 20% 9. FINAL: 40% E-Commerce - Dr. Nguyen Van Thoan
  83. 83. E-Commerce – CTTT, CLC, FB Q1. Who is CIO? Who is CIO? What are the roles/responsibilities of CIO? Find one CIO of a company/organization/country. E-Commerce - Dr. Nguyen Van Thoan FSB - Q2 - Who is CIO and The Roles of CIO in an organization? Find a typical CIO in an organization, company, industry or even country. Tell smt about his or her roles and resposibilities in IT application.
  84. 84. E-Commerce – CTTT, CLC, FB Q1. Who is CIO? What are the roles/responsibilities of CIO? E-Commerce - Dr. Nguyen Van Thoan CEO COO CFO CBDO-CMO CTO CSO CAO CCO CPO CHRO CVO CDO CIO CSO CNO CLO
  85. 85. E-Commerce – CTTT, CLC, FB Q2. What are the two key benefits of IT application in organization (biz, mag, E-Commerce - Dr. Nguyen Van Thoan prod) When top managers/directors consider implementation of IT application (or Ecommerce, Ebusiness application), what are the TWO most important things they need to know?
  86. 86. E-Commerce – CTTT, CLC, FB Q2. What are the two key benefits of IT application in organization (biz, mag, prod) portable Cheaper Expand capacity E-Commerce - Dr. Nguyen Van Thoan Better systematic secure automated Updated entertained Labour-saving Accurate More efficient Maintain quality infomation Globalizat ion More competitive multitask organised Time-saving Good analysis Faster updated 24/7 Work performance Support decision-making process More convinent Future investmemt Cost reduction Increse revenue
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