SlideShare a Scribd company logo
IMPACT ON E-COMMERCE
ON THE VALUE CHAIN
The traditional view of the value chain is no longer
rich enough to encompasses the true
relationship between the fir, customer and
supplier. The traditional view depicts the
information system data as flowing sequentially
through the process with input/output to the
supplier at the back end stage and to the
customer at the front end stage. In reality, firms
engaging in e-commerce may share information
with their customers and suppliers at many
stages of the value chain.
The firms information system is the ‘glue’ that links all
phases of its processes together. This customer oriented
value chain enables the customer to access the firms
information system at virtually every phase in order to
assess the progress of the order. The customers can
also check the status of orders placed with the suppliers
that have been completed and are in the shipping
process. The customer’s use the suppliers information
system to help provide better customer service after the
sale is complete .
VALUE CHAINS IN THE ECOMMERCE activities of a business so that each activity
A way of organizing the
adds value or productivity to the total operation of the business. In ecommerce a number of business processes and activities go
unnoticed by the consumer and are often taken for granted . Within
an online merchants business value added activities work together
to make the business to consumer interface operational in this
section we systematically analyze a company's value chain and how
it make commerce on the internet a reality.
In 1985 Michael porter wrote a book called competitive advantages in
which he introduced the concept of the value chain .business
receive raw materials as input add value to them through various
processes and sell the finished product as output to customer.
The value chain shows relationship between
among two activities
• Primary activities
• Support activities
Primary activities
A business unit needs support activities to make sure the primary
activities.
 Inbound logistics
 Operations
 Outbound logistics
 marketing & sales
 service
• Inbound logistics: these are procurement activities vendor
selection, comparative shopping , negotiating supply contract, and
just in time arrival of goods.

• Operations :this is the actual conversion of raw materials
received into finished product.it includes fabrication , assembly,
testing & packaging the product.

• Outbound logistics : this activity represents the actual
distributing &shipping of the final product.it involves warehousing ,
materials handling , shipping, & timely delivery to the ultimate
retailer or customer.

• Marketing & sales : this activity deals with the ultimate
customer .it includes advertising , product promotion , sales
management , identifying the products customer base &distribution
channels.

• Service: this activities focuses on after sale to the customer .it
includes testing ,maintenance ,repair, warranty work, & replacement
parts.
Support activities
Support activities are those activities that has been used to
support the primary activities. For the success implement of the
primary activities supporting activities are essential.
•
•
•
•

Corporate infrastructure
Human resource
Technology development
Procurement
• Corporate infrastructure: this activity is the backbone of the business
unit . It includes general management , accounting ,finance ,planning ,&legal
services.

• Human resources : this is the unique activity of matching the right
people to the job.it involves recruitment ,retention, career path development
, compensation, training &development &benefits administration.
• Technology development : this activity adds value in the way it improve
the product & the business process in the primary acivities.the output of this
activity contributes to the product quality , integrity, & reliability, which make
life easier for the sales force & for customer relations.

• Procurement: this activity focuses on the purchasing function &how well
it ensure the availability of quality raw material for production.
THANKS TO ALL

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Impact on e commerce on the value chain

  • 1. IMPACT ON E-COMMERCE ON THE VALUE CHAIN
  • 2. The traditional view of the value chain is no longer rich enough to encompasses the true relationship between the fir, customer and supplier. The traditional view depicts the information system data as flowing sequentially through the process with input/output to the supplier at the back end stage and to the customer at the front end stage. In reality, firms engaging in e-commerce may share information with their customers and suppliers at many stages of the value chain.
  • 3. The firms information system is the ‘glue’ that links all phases of its processes together. This customer oriented value chain enables the customer to access the firms information system at virtually every phase in order to assess the progress of the order. The customers can also check the status of orders placed with the suppliers that have been completed and are in the shipping process. The customer’s use the suppliers information system to help provide better customer service after the sale is complete .
  • 4. VALUE CHAINS IN THE ECOMMERCE activities of a business so that each activity A way of organizing the adds value or productivity to the total operation of the business. In ecommerce a number of business processes and activities go unnoticed by the consumer and are often taken for granted . Within an online merchants business value added activities work together to make the business to consumer interface operational in this section we systematically analyze a company's value chain and how it make commerce on the internet a reality. In 1985 Michael porter wrote a book called competitive advantages in which he introduced the concept of the value chain .business receive raw materials as input add value to them through various processes and sell the finished product as output to customer.
  • 5. The value chain shows relationship between among two activities • Primary activities • Support activities
  • 6. Primary activities A business unit needs support activities to make sure the primary activities.  Inbound logistics  Operations  Outbound logistics  marketing & sales  service
  • 7. • Inbound logistics: these are procurement activities vendor selection, comparative shopping , negotiating supply contract, and just in time arrival of goods. • Operations :this is the actual conversion of raw materials received into finished product.it includes fabrication , assembly, testing & packaging the product. • Outbound logistics : this activity represents the actual distributing &shipping of the final product.it involves warehousing , materials handling , shipping, & timely delivery to the ultimate retailer or customer. • Marketing & sales : this activity deals with the ultimate customer .it includes advertising , product promotion , sales management , identifying the products customer base &distribution channels. • Service: this activities focuses on after sale to the customer .it includes testing ,maintenance ,repair, warranty work, & replacement parts.
  • 8. Support activities Support activities are those activities that has been used to support the primary activities. For the success implement of the primary activities supporting activities are essential. • • • • Corporate infrastructure Human resource Technology development Procurement
  • 9. • Corporate infrastructure: this activity is the backbone of the business unit . It includes general management , accounting ,finance ,planning ,&legal services. • Human resources : this is the unique activity of matching the right people to the job.it involves recruitment ,retention, career path development , compensation, training &development &benefits administration. • Technology development : this activity adds value in the way it improve the product & the business process in the primary acivities.the output of this activity contributes to the product quality , integrity, & reliability, which make life easier for the sales force & for customer relations. • Procurement: this activity focuses on the purchasing function &how well it ensure the availability of quality raw material for production.