Assessment 2 (a) worth 30 of the course marks technology case

Assessment 2 (a): Worth 30% of the course marks - Technology
Case Study. Due date: Week 7 (Monday 18 April 11:59pm).
Students will work in groups (maximum 4 members) to develop
a ‘Technology Case Study’ for business organisations and
suppliers that have implemented or are implementing a
technology to assist in global e-Business. The guide aims to
assist organisations in progressing e-Business by providing
practical assistance, guidance and support.
In their groups, students are to develop a detailed case s tudy
covering the points mentioned below.
· A brief description of the background of the company selected
on their core product/service, customers, market outlook etc. as
well as an illustration of the company’s core product/service
supply chain network and the role that purchasing plays in their
general operations.
· Next highlight some of the challenges that the company is
facing or has faced in the last 5 years with respect to
procurement practices and discuss in detail the technologies
implemented or being implemented.
· Critically discuss their motivations for implementing this
technology and benefits achieved.
· What were some of the drawbacks, challenges and risks faced
with respect to implementing the select technology?
Students are to ensure that their case study critically examines
procurement and technology implementation practices in a
particular organization using/illustrating concepts covered in
class. Organisation selected can be local or overseas based.
Some examples of technology implementation include: RFID,
barcoding, EDI, ERP, CRP, advanced payment systems etc.
There are numerous industries such as grocery, airline,
healthcare, general manufacturing, banking etc. that have
implemented technologies to assist them in operational
efficiency and global competitiveness.
Note:

It is important that students form their groups in Week1 and
finalise the company and technology being implemented. At the
end of week 2, group leaders are to email the coordinator the
following: company selected, technology being examined,
methodology, timeline for case study and presentation
compilation, group members and activities allocated. Every
week from this point on, you are to email the coordinator an
update on what you have accomplished and difficulties faced.
Weekly emails to the coordinator should also be Cc’d to all the
group members. My role in all of this is to provide you with
feedback and critique to help you develop an excellent case
study.
E-PROCUREMENT
INTE 1208
Dr Alka Nand
Sem 1, 2016
Course Lecturer
Dr. Alka A Nand
Subject coordinator and lecturer
School of Business IT and Logistics
RMIT University
Building 80, Level 7, Room 47
445 Swanston Street

Telephone: 9925 1522
Email : [email protected]
Consult: Email for appointment
*
Course Structure Text book (also see image)Breakdown
(Individual & Group) Assignments and Presentation
Case study tipsBelbin exercise AttendanceLecturesGroup
formation last 10 minutes
Text BookChaffey, D. (2014). Digital Business and E-
Commerce Management (6th Ed.), Pearson Education,
England.ADVICE RE: TEXTBOOKOther editions also
acceptable
*
2. Breakdown of Assignments
*explained in detail in next 4 slidesAssessment TaskGroupHard
copy or ElectronicDueWeighting
Case Study
Group
Electronic
Week 7

30%
Group Presentation
(15 mins followed by 5 mins Q&A)
Group In-classWeek 11-1215%
In class short test
Take home exam
Individual
Electronic Week 5
Week 1315%
40%
Assessment - Individual
Assessment Details:
Assessment 1: Worth 15% of the course marks – In class
multiple choice and short answer test. Due date: Week 5 (Week
Beginning 4 April). Students will be given a ninety minute
multiple choice and short answer test assessing their knowledge
and understanding of the concepts discussed throughout the first
four weeks of the course.
Assessment 3: Worth 40% of the course marks - Take home
exam. Distributed 1pm 27/05/2016 - Due 11:59pm 10/06/2016.
This is a take home written paper, testing you on the e-
Procurement and Supply Chain Technologies issues discussed

each week in class and based on both readings given in class
and the list of references above.
*
Assessment - Group
practical assistance, guidance and support.
Assessment 2 (b): Worth 15% of the course marks - Technology
Case Study presentation. Due date: Week 11 & 12 (Week
beginning 16 and 23 May respectively). Students in their groups
will present their ‘Technology Case Study’ key findings.
*
Case study details
practical assistance, guidance and support. (Word count: 3000)
In their groups, students are to develop a detailed case study
covering the points mentioned below. A brief description of the
background of the company selected on their core

product/service, customers, market outlook etc. as well as an
illustration of the company’s core product/service supply chain
network and the role that purchasing plays in their general
operations. Next highlight some of the challenges that the
company is facing or has faced in the last 5 years with respect
to procurement practices and discuss in detail the technologies
implemented or being implemented. Critically discuss their
motivations for implementing this technology and benefits
achieved.What were some of the drawbacks, challenges and
risks faced with respect to implementing the select
technology?Students are to ensure that their case study
critically examines procurement and technology implementation
practices in a particular organization using/illustrating concepts
covered in class. Organisation selected can be local or overseas
based.Some examples of technology implementation include:
RFID, barcoding, EDI, ERP, CRP, advanced payment systems
etc. There are numerous industries such as grocery, airline,
healthcare, general manufacturing, freight, banking etc. that
have implemented technologies to assist them in operational
efficiency and global competitiveness.
Note:It is important that students form their groups in Week1
and finalise the company and technology being implemented. At
the end of week 2, group leaders are to email the coordinator
the following: company selected, technology being examined,
methodology, timeline for case study and presentation
compilation, group members and activities allocated. Every
week from this point on, you are to email the coordinator an
update on what you have accomplished and difficulties faced.
Weekly emails to the coordinator should also be Cc’d to all the
group members. My role in all of this is to provide you with
feedback and critique to help you develop an excellent case
study.
*

Case study tips
Three core elements of a good case study (C. Dhanaraj)
Source: http://www.youtube.com/watch?v=ttPeM2UYXL0
Reality Realism is what makes a case effective learning
vehicleEmpiricism lends credibility to concepts learner in
classrooms
Theory
-an underlying theory is essential for effective teaching
-One company’s actions is not necessarily a guide for practice
Originality
What is new here?a new concept?a new context?
Novelty enhances scholarship and links well to your research
*
E- Procurement – National E-health Transition Authority
*
Also posted on LMS under assignment details
Assessment 2 (b): Worth 15% of the course marks - Technology
Case Study presentation. Due date: Week 11 & 12 (Week
beginning 16 and 23 May respectively). Students in their groups
will present their ‘Technology Case Study’ key findings. Please
take note of the following points to assist you with preparing
your presentations:Presentations are 15 mins followed by a 5

min Q/A (total time per group is 20 mins)Each member must
participate Slides are to be brief and used as a cueFeel free to
be creativePeer marking will be practiced to ensure
fairnessExpectation: A brief on the company followed by brief
findings of the technology implemented, motivation, benefits,
drawbacks, risks etc
*
Points 3-7Assignments and Presentation – Refer to Assignment
Details plus course guideBelbin exercise Attendance –
compulsory for your maximum benefit
LecturesMonday17.3020.30 Room: 08 09
043Thursday17.3020.30 Room: 70 03 11
*
Presentation
Group based (max 4 members)
Case study development
Company selection for case study
Ongoing task and presentation in week 11 and 12
Required (snapshot of your case assignment)
critical analysis of organisation's e-procurement practices
Incorporation of theory, models and frameworks where
necessary
Aligned with specific chapters of the text
Course guide and assignment details to be noted
To be done in 15 minutes (synergy, cohesive, entertaining,
exciting, recall etc) plus 5 min Q and A

Belbin exercise
Each week (Friday evening starting week 2), team leaders are to
email the lecturer a one page minute document (Cc all other
team players) containing the following items:
Current status of the case study
Questions investigated so far
Approaches undertaken
Meetings held with group members
Expectations and roles and responsibilities of members
Difficulties encountered
Advice sought
My role in all of this!
Attendance Is compulsory Materials – LMSIn class discussions
Proposed structure:
Evening classes
Start 5.30pm
Break 7pm-7.20pm
Start 7.20-8.20pm
Wrap up- last 10 minutes
Lectures and various activities
See LMS materials and announcements
Capability Development
At the conclusion of this course, you will develop the following

capabilities:
Ability to apply the knowledge and skills obtained to study
further concepts in eProcurement, eMarkets, SCM and business;
Ability to communicate and interpret ideas related to the
principles of eProcurement in a business environment;Ability to
critically analyse business practices and processes,
incorporating the Internet into business practices;Ability to
expand analytical knowledge of the global business IT
environment; &Ability to recognise the changing needs of
customers and the resulting impact on resources.
INTE1208 - eProcurement and Supply Chain Technologies
*
Learning Outcomes
At the end of this course, you will:
Possess a general understanding of the development and nature
of B2B eBusiness;Understand the enabling infrastructure and its
applications in B2B exchanges;Understand eProcurement and
other strategic opportunities made possible by B2B eBusiness;
Grasp the role of intermediaries such as net market makers, in
eProcurement; Understand the eBusiness environment, change
management issues, human resource, technological and
organisational issues pertinent to B2B eBusiness;Possess an
understanding of the role of supply chain management and the
importance of forward and reverse logistics in eBusiness.
*
Unit Topics
*WeekWeek BeginningTopicWeek 0129/02/2016Introduction to

the course and assessment
Introduction to B2B e-Business
Chapter 1Week 0207/03/2016e-Business Infrastructure and B2B
e-Marketplaces
Chapter 2-3Week 0314/03/2016Introduction to Supply Chain
Management
Chapter 6Week 0421/03/2016
28/04/2016e-Procurement 1
Chapter 7 – E-procurement 23-30 March Mid-Semester
BreakWeek 0504/04/2016Recap session
Assessment One - Multiple-choice and Short Answer
TestWeek 0611/04/2016e-Procurement 2
Chapter 9 – Customer Relationship Management Week
0718/04/2016Bar-coding and RFID (Guest Speaker from GS1
Australia) Refer to Chap 6
Assessment Two (a) Due: Technology Case
StudyWeek 0825/04/2016An understanding of EDI and VMI
technologies
(Poster exercise using a series of journal
articles)Week 0902/05/2016Knowledge Management and Big
Data benefits
Chapter 10Week 1009/05/2016e-Environment and Future of
Procurement Week 1116/05/2016Assessment Two (b):
Technology PresentationWeek 1223/05/2016Assessment Two
(b): Technology PresentationAssessment Three distributed 1pm
27/05/2016 - due 11:59pm 10/06/2016

IntroductionWith the person next to you:What is their
name?What was their latest purchase?How was this purchase
made?
*
*
Topic 1
Introduction to eCommerce and eBusiness
*
This LectureA GENERAL OVERVIEWWhy am I studying
eCommerce/eBusiness?What is eCommerce?The Development

of eCommerceFundamentalsSome DefinitionsElectronic
Commerce TermsThe Dimensions of eCommerceSupply Chain
ManagementBusiness ModelsElectronic MarketsElectronic
ExchangesInter-organisational Information SystemsElectronic
Data Interchange (EDI)The Internet and the World Wide
WebTrends and Expectations
*
Objectives
At the completion of this topic you should be able to:
Define electronic commerce and electronic business
Differentiate eCommerce and eBusiness
Describe the various categories of eBusiness.
Describe and discuss the content and framework of eBusiness.
Describe the major types of eBusiness transactions.
Describe the digital revolution as a driver of eBusiness.
Describe the business environment as a driver of eBusiness.
Describe the benefits of eBusiness to organizations, consumers,
and society.
Describe the limitations of eBusiness.
Describe the contribution of eBusiness to organizations
responding to environmental pressures.
*
Managerial Issues
Is it real?
Why is B2B e-commerce so attractive?

There are so many eBusiness failures—how can one avoid
them?
How do we transform our organization into a digital one?
How should we evaluate the magnitude of business pressures
and technological advancement?
What should be my company’s strategy toward eBusiness?
What are the top challenges of eBusiness?
*
Why am I studying eCommerce/eBusiness?Real business
issues:Increasing competitionCustomer loyaltyReducing product
lifecycleIncreased demand volatilityThe current inventory-
centric approach is not working……A demand-driven strategy is
required:Ability to respond to constantly changing customer
expectations; adapt production/distribution continuously to
demand; connect entire supply chain in real time.A major
challenge companies face over the next five years
*
Why am I studying eCommerce/eBusiness?Success requires
work process transformation as well as technology
transformation.Information flows need to be open, free,
standards-based and in context.Overall costs must continue to
decrease (technological advancements and development
http://www.mooreslaw.org/ , increasing competition,
infrastructure development, ease of doing businesses etc.).

*
Interesting Australian Grocery Industry numbersRevenue
$88.1bnMature industry Market ShareWoolworths Ltd 40.2%
(Woolworths, Safeway, Thomas Dux) (Est 1924, 872
stores)Wesfarmers Limited 33.5% (Coles, Bi-Lo) (Est 1914, 762
stores)Metcash Limited 9.0% (IGA, Supa IGA) (1400
stores)ALDI Stores Supermarkets Pty Ltd 8.1% (Est 2001, >300
stores)Costco 1.2% (Est 2009, 7 stores)Recent consumer trends
– Switch to Private labels, organic products popular and lower
in price, bulk buys (Costco), new shopping experience, variety
and offer, online purchases (more investment in technology by
supermarkets)Future – disposable income, family size, time
conscious shoppers(Ibis, 2015)
Cannot afford to have breakdowns in their supply chain -
communication or deliveries
*
eBusiness opportunitiesReachOver 1 billion users
globallyConnect to millions of productsRichnessDetailed
product information on 20 billion + pages indexed by Google.
Blogs, videos, feeds…Personalized messages for
usersAffiliationPartnerships are key in the networked economy
*
*

*
*
What is eCommerce?
Does eCommerce = Internet/Web?
eCommerce is more than just the Internet
eCommerce, put simply, is doing business using electronic
means of communication
The primary focus of this course is the use of eCommerce in
business–to-business (B2B) relationships — a major use of
eCommerce that often goes unseen.
*
*
*
Electronic Commerce:
Definitions and Concepts
Electronic Commerce (EC)
The process of buying, selling, or exchanging products,
services, or information via computer networks
Examples:Buying books online (transactional)Selecting a car

online (informational)Interacting with brand online
(relationship building/experiential) Asking a customer service
query
*
Electronic Business:
Definitions and Concepts
Electronic Business (eBusiness)
A broader definition of electronic commerce that includes not
just the buying and selling of goods and services, but also
servicing customers, collaborating with business partners, and
conducting electronic transactions within an organization
Examples:Purchasing from suppliers (e-procurement)A company
intranetSupplying partners with information through an extranet
*
Three definitions of the relationship between e-commerce and e-
business
*
*
*

*
E-business is…
An organisation using electronic media to ONLY sell direct to
its customers
An organisation using electronic media to ONLY purchase from
its suppliers
The use of electronic communications for all business processes
None of the above
*
E-commerce is…
Any electronically mediated transaction between an
organisation and its stakeholders
An organisation using electronic media to ONLY purchase from
its suppliers
An organisation using electronic media to ONLY sell direct to
its customers
None of the above
INTE1208 - eProcurement and Supply Chain Technolo gies
*
A Framework for eBusiness Applications
Business
Consumer
Government
Business
Government

phone, e-mail, fax, e-forms, EDI
phone, e-mail, fax,
e-forms, smart cards
phone, e-mail,
fax, e-forms
phone, e-mail,
fax, e-forms
smart cards
phone, e-mail, EDI, e-forms, fax, smart cards, barcodes
purchasing/tendering
Consumer
*
*
*
Definitions and ConceptseBusiness organizations Class
Examples
brick-and-mortar organizations
Old-economy organizations (corporations) that perform most of
their business off-line, selling physical products by means of
physical agents
virtual (pure-play) organizations
Organizations that conduct their business activities solely
online
click-and-mortar (click-and-brick) organizations
Organizations that conduct some e-commerce activities, but do
their primary business in the physical world

*
Definitions and ConceptsWhere eBusiness is conducted
electronic market (e-marketplace)
An online marketplace where buyers and sellers meet to
exchange goods, services, money, or information
interorganizational information systems (IOSs)
Communications system that allows routine transaction
processing and information flow between two or more
organizations
intraorganizational information systems
Communication systems that enable e-commerce activities to go
on within individual organizations
*
B2B and B2C characteristicsCharacteristicB2CB2BProportion
of adopters with accessLow to mediumHigh to very
highComplexity of buying decisionsRelatively simple –
individual and influencersMore complex – buying process
involves users, specifiers, buyers, etc.ChannelRelatively simple
– direct or from retailerMore complex, direct or via wholesale r,
agent or distributorPurchasing characteristicsLow value, high
volume or high value, low volume. May be high
involvementSimilar volume/value. May be high Involvement.
Repeat orders (rebuys) more commonProduct
characteristicOften standardized itemsStandardized items or
bespoke for Sale

*
Buy-side vs Sell-side eBusinessBuy-side eBusiness refers to
transactions to procure resources needed by an organization
from its suppliers. Sell-side eBusiness refers to transactions
involved with selling products to an organization’s customers.
An eBusiness transaction between organizations can be
considered from two perspectives: sell-side from the perspective
of the selling organization and buy-side from the perspective of
the buying organization.
*
Figure 1.2 The distinction between buy-side and sell-side e-
commerce
*

*
*
*
Fundamentals: Supply Chain ManagementThe coordination of
all supply activities of an organization from its suppliers and
partners to its customers.
*
Fundamentals – Electronic Data Interchange (EDI)Electronic
Data Interchange (EDI) is the application-to-application
exchange of business documents via computers is a standard
electronic messaging format, where companies engaged in EDI
(trading partners) transmit ‘electronic versions’ of purchase
orders, invoices and payments rather than use of (snail) mail or
fax.
*
Fundamentals – Electronic Data Interchange (EDI)
Computer
Application
(eg MRP II)
Company A (Customer)

Company B (Supplier)
Network
(eg VAN or Internet)
EDI
Software
Computer
Application
(eg order
processing)
EDI
Software
File Format 1
Standardised
Format
File Format 2
*
The most common used online service in most countries is…
Legally streaming movies
Reading books
Booking tickets online
E-mail
*
An example of a communications benefit from creating an e-
commerce website:

Lower paper costs needed for marketing and fewer staff needed
in contact centre
More rapid response to customer enquiries
Tracking of number of customers using different parts of site
None of the above
*
The impact of Internet on businessAndy Grove, Chairman of
Intel, one of the early adopters of e-commerce, has made a
meteorological analogy with the Internet. He says:Is the Internet
a typhoon force, a ten times force, or is it a bit of wind? Or is it
a force that fundamentally alters our business?
*
Business Environment Drives eBusinessReductions in Cycle
Time and Time-to-Market
Shortening the time it takes for a business to complete a
productive activity from its beginning to endEmpowerment of
Employees
EC allows the decentralization of decision making and authority
via empowerment and distributed systems, but simultaneously
supports a centralized controlSupply Chain Improvements
EC can help reduce supply chain delays, reduce inventories, and
eliminate other inefficiencies

*
Business Environment Drives eBusinessMass Customization:
Make-to-Order in Large Quantities
Production of large quantities of customized itemsIntrabusiness:
From Sales Force Automation to Inventory Control / Knowledge
Management (KM)
The process of creating or capturing knowledge, storing and
protecting it, updating and maintaining it, and using it
*
The Internet’s impact on youHow many of you have purchased
something on the Internet in the last 6 months?How many times
have you used the Internet as an information source, before
buying offline?
*
Popularity of online purchases
Source: The Internet Monitor, BMRB, November
(www.bmrb.co.uk)
INTE1208 - eProcurement and Supply Chain Technolo gies
*
Benefits of eBusinessGlobal ReachCost ReductionSupply Chain
ImprovementsExtended HoursCustomizationNew Business

ModelsVendors’ SpecializationRapid Time-to-MarketLower
Communication CostsEfficient ProcurementImproved Customer
RelationsUp-to-Date Company MaterialNo City Business
Permits and FeesOther Benefits
Benefits to Organizations
*
Benefits of eBusinessUbiquityMore Products and
ServicesCustomized Products and ServicesCheaper Products and
ServicesInstant DeliveryInformation AvailabilityParticipation in
AuctionsElectronic CommunitiesNo Sales Tax
Benefits to Consumers
*
Benefits of eBusinessBenefits to SocietyTelecommutingHigher
Standard of LivingHomeland SecurityHope for the
PoorAvailability of Public Services
*
Drivers for eBusiness
Figure 1.6 Attitudes to benefits of online technologies

*
Barriers to development of online technologies
*
*
*
*
Which is the greatest value of global e-commerce transactions?
Business-to-consumer
Business-to-business
Consumer-to-business
Consumer-to-consumer
None of the above
*
Trends and Expectations
Trends fuelling eBusiness:Combination of computers and
networkingIncreased digitising of text, graphics, audio,
videoAdvances in data compression, securityPopularity of the
WebDeregulation of telecommunications
industriesGlobalisation of marketplaces, competitive
forcesVirtualisation of businesses, communitiesBreaking down
physical boundaries

*
*
*
Summary
Definition of eBusiness and description of its various
categories.
The content and framework of eBusiness.
The major types of eBusiness transactions.
The role of the digital revolution.
The role of the business environment as an eBusiness driver.
The major eBusiness business models.
Benefits of eBusiness to organizations, consumers, and society.
Limitations of eBusiness.
Contribution to organizations responding to environmental
changes.
*
Prepare in class LAST 10 MINS
•Introductions, exchange of emails and phone details etc.
•Groups to be finalised (Rule: Max 4 members from various
backgrounds to ensure balance)
•Company case to be selected
•Each member to be allocated a task
•A one page minute to be submitted at the end of week 2 to the

coordinator on the following: Group name and ID, Cases
selected (brief description), Motivation, Method for data
collection, Timeline for results and write-up, activity allocation
E-PROCUREMENT & SUPPLY CHAIN TECHNOLOGIES
INTE 1208
Dr Alka Nand
Sem 1, 2016
INTE1208 – Session 2
B2B Infrastructure and
B2B eMarketplaces
Issues for ManagersWhat are the practical risks to the
organization of failure to adequately manage e-commerce
infrastructure?How should staff access to the Internet be
managed?
*

What is infrastructure?
According to Chaffey (2007, p. 82):
The architecture of hardware, software, content and data used to
deliver eBusiness services to employees, customers and
partners.
*
Benefits, Problems and ChallengesIn groups, identify problems
with running an organisation with a bad technological
infrastructure.Identify benefits of good technological
infrastructure for organisations.Make a list of the potential
problems for customers of an online retailer
CLASS ACTIVITY
Typical problems involved with infrastructure we
experienceWeb site communications too slow.Web site not
available.Bugs on site through pages being unavailable or
information typed in forms not being executed.Ordered products
not delivered on time.E-mails not replied to.Customers’ privacy
or trust is broken through security problems such as credit cards
being stolen or addresses sold to other companies. Site is not
viewable on mobile

*
Benefits of eCommerce infrastructure
Include:
Faster time to market for new products;
Effective communications with partners, suppliers, customers;
Higher revenue growth;
Efficient business processes;
Single point of contact;
Integrated information from separate business units; &
Shared services, applications.
*
*
Challenges of eCommerce infrastructureInclude:
Infrastructure capabilities as a fusion of technology and human
assets;
Standard – does one size fit all?;
Stable services;
Dynamic functionality;
Frequent changes of eBusiness applications; &
In-sourcing or outsourcing infrastructure?
*

Infrastructure for B2B eCommerce
Electronic marketplaces need flexible trading relationships
Inter-organisational systems (IOS) require tight system
integration
B2B sector requires a dynamic enabling infrastructure with
specific approaches to different types of strategic initiatives
E-business infrastructure refers to
E-business client/server environment
E-business applications
E-business networking
E-business content hosting
All of the above
*
20
Changing role of IT infrastructureBefore:
Technology driven
Developed in reactive manner, extending and replacing
components as needed,
Fragmented
IT professionals in charge of management and decision making
No public IT infrastructureNow:

Viewed as services enhancing and supporting business
performance
BUNDLE OF BENEFITS
Need proactive approach to development
Linked to business strategy
Business managers in charge of decision making
Must consider taking advantage of the emerging industry and
public infrastructure.
*
A five-layer model of e-business infrastructure
eBusiness infrastructure
Further Infrastructure ComponentsArchitectures
indicate how the various applications, information stores and
linkages are mapped into the physical model.Policies
should address such matters as sourcing, standards, audit and
security, contingency plans, service levels.Management
processes and services
include planning and management of facilities, vendor
management, provision of technical support to users.Human
Infrastructure
includes knowledge, skills, and experience
*

Internet of ThingsThe Internet of Things is bringing about that
world at a furious pace - very soon over 26 billion devices of all
shapes and sizes will be connected to the Internet.New
Technology Also Means Greater End-to-End Visibility and
Predictive Power
Reroute inventory at will
Consolidate and create efficient shipments
Accommodate painless and profitable returns
Support servicing parts on-demand
Manufacture quick runs of short-lifecycle products
Configure and change orders even in the middle of production
Aggregate data across regions to predict future demand
accurately
*
OmnichannelThe property of being present
everywhere“Connected customers can shop for and purchase the
same items across many different channels, in a retail store, on
their home or laptop computers and perhaps most importantly
on their connected mobile devices which allow them to shop
online for virtually anything, virtually everywhere…”The poster
child for omnichannel has been buy online, pickup in-store.
*
Enterprise Resource Planning SystemsSystems that integrate all
the information flows through a company, given the richness of
such systems in terms of functionality and potential benefits to
the adopting organisations.Essentially:

Software tools
Manages business systems (supply chain, receiving, inventory,
customer orders, shipping, accounting, HR, etc)
Allows automation and integration of business processes,
enterprise-wide
Enables data, information and knowledge sharing
Introduces ‘best practices’
http://www.iqms.com/erp-success/
*Interesting cases of companies using the software
OLD VS NEW
Before and After ERP
Various ERPs and their market share
http://www.forbes.com/sites/louiscolumbus/2014/05/12/gartners
-erp-market-share-update-shows-the-future-of-cloud-erp-is-
now/#74e6f0cc74a1
RMIT University©March 2011
International & Development Portfolio
*
Reasons for adopting an ERP

Reasons for adopting an ERP
Checklist before going ERP: EXTRA INFODo your
organisation’s business leaders support the system
implementation?Who are the line-of-business professionals that
can be responsible for measuring the business benefits relevant
to their department’s ERP module?Who will be the ERP project
manager?What are the specific business problems you need to
solve with ERP?What are the goals and metrics that you will
use to measure the business benefits of your organisation’s new
ERP solution?What features and functions do you need from a
new ERP solution that will help increase users’ productivity and
provide access to the business data users most need?Which
modules will you begin rolling out your ERP package?Is the
prospective ERP solution built with service-oriented
architecture (SOA) capabilities?Which users across your
organisation will need to be trained on the new system?Will the
ERP package be able to adapt to changes in your business as
your company grows?
Costs and Benefits
Major investment
Between $50,000 and 100,000,000+
Variety of business justifications
Replace legacy systems
Enable organisational standardisation
Reduce cycle times
Lower operating costs
Enables strategic management decisions (real time)

Do we go to the cloud?‘The use of distributed storage and
processing on servers connected by the Internet, typically
provided as software or data storage as a subscription service
provided by other companies’ (Chaffey, 2009, p. 171).Cloud
computing is a model for enabling convenient, on-demand
network access to a shared pool of configurable computing
resources (e.g., networks, servers, storage, applications, and
services) that can be rapidly provisioned and released with
minimal management effort or service provider interaction
(National Institute of Standards and Technology).Extension of
SaaS, Paas, IaaS, ASP,
SOA.http://www.computerworld.com.au/article/394080/rmit_go
es_google_says_no_microsoft_cloud/
Rmit’s move to not use cloud but opt for google
*
Extras:
SaaS, PaaS, IaaS, Huh?SaaS applications are designed for end-
users, delivered over the web PaaS is the set of tools and
services designed to make coding and deploying those
applications quick and efficient IaaS is the hardware and
software that powers it all – servers, storage, networks,
operating systems
*
Examples of the CloudWebmail readers; e-commerce account
and purchasing management facilities such as Amazon.com,
Google Apps; CRM through Salesforce/Oracle; SCM through

SAP, Oracle; E-mail and web-security management through
MessageLabs.
*
Issues with the cloud
Is it secure? Is it backed up? Is it always available?
Data availability for business continuity
Malware issues
Rogue clouds
*
Choosing an infrastructureFocus on infrastructure investme nts
that
promise clear cost savings
Enable strategic flexibility
Facilitate business agility on appropriate level
Allow fast response to change in the global
marketplaceInfrastructure capabilities should be right for the
firm’s strategy.Market leaders make different choices depending
on their business context.
Infrastructure for B2B eCommerce
With the technologies and infrastructure correctly selected and
implemented within an organisation, the following are possible:
Intranets
Extranets
Barcode scanning

EDI
eMail systems
Web-based e-Forms
Data warehousing
Telephone-based information systems
*
*
Six Steps in developing eCommerce architectureconsider
business issues that countin-house or outsource?consider an
approved service providerdetailed EC architecture studysecurity
and ethicschoosing a vendor and software
*
*
Final view of broad SCM TrendsAgility, responsiveness,
compliance and risk management are the driving factors of
differentiation for both manufacturers and retailers
alike.Customers are leveraging software platforms and service
firms to drive process-oriented and organizational changes
focused on achieving corporate goals.
Holistic

Solution
Landscape
Cloud and Mobility
Big Data and Analytics
Collaboration and Social Networking
Compliance and Sustainability
*
A company ________ can be used to provide specialised content
such as sales histories to key account customers.
Intranet
Extranet
Opranet
Internet
None of the above
*
10

A company ________ can be used to provide shared content for
staff only:
Extranet
Opranet
Intranet
Internet
None of the above
*
10
A company ________ site can be used to provide access to all
interested users:
Intranet
Internet
Extranet

Opranet
None of the above
*
10
B2B eMarketplaces
A book retailer has transactions that are predominantly:
Consumer to business
Business to business
Business to consumer
Consumer to consumer
None of the above
*

15
A chemical manufacturer has transactions that are
predominantly:
Business to consumer
Consumer to consumer
Business to business
Consumer to business
None of the above
*
15
Issues for managers
Can we justify the cost of B2B applications?

What are the implications of changes in marketplace structures
for how we trade with customers and other partners?
Which business models and revenue models should we consider
to exploit the Internet?
What are the benefits and risks of joining an exchange?
Can we trust new trading partners?
*
Learning ResourcesTimmers, P. (1999) Business models for
electronic commerce, Electronic Commerce: Strategies and
Models for Business-to-Business Trading, John Wiley & Sons,
Chichester, pp. 31–45.
*
Business model - Definition

Timmers (1999) defines a ‘business model’ as:
An architecture for product, service and information flows,
including a description of the various business actors and their
roles; and a description of the potential benefits for the various
business actors; and a description of the sources of revenue.
*
What is a Business Model?
A method of doing business – how a company generates revenue
to sustain itself
A description of how a business work: its interaction with the
value chain, the business processes, cost structure and revenue
streams
Concentrates on the activities that generate value for the
company, the customers, and the suppliers.
Focuses on the resources required for manufacturing the product
(goods &/or services)
*

A Business Model should:
Articulate value proposition
Identify market segment
Define value chain structure
Estimate cost structure & profit potential
Identify the position of the firm within the value network
Formulate strategies
*
Innovative business models
Class Discussion Industries – Apparel, Travel , Retail,
Manufacturing, Education etc Southwest airlinesUberZara
Airbnb
*

Figure 2.10 Business Model Canvas example
Source: Smart Insights. With permission.
Why should organizations use Electronic Markets?
For Buyers (Customers):Lower prices Lower costs Access to
more suppliers Enhanced product comparison , more informed
decision-making
For Sellers (Suppliers):Lower costs Access to new markets,
more customers Greater market shareGreater profitability
Access to market information
*

Why do we need Business Models?Changing business
environment
Advanced Technological Capabilities,
Global Connectivity and Reduced Transaction Costs
Issues:
Redefinition of Core Competency and Products
Change in Revenue Models
Change in Relationships: Coopetition Buying (collaboration
between business competitors),
Change in Functional Processes
New Models of Outsourcing
New Models of Customer Interaction
*
*
E-Marketplaces

Electronic marketplaces (e-marketplaces or marketspaces),
changed several of the processes used in trading and supply
chains
Greater information richness
Lower information search costs for buyers
Diminished information asymmetry between sellers and buyers
Greater temporal separation between time of purchase and time
of possession
Greater temporal proximity between time of purchase and time
of possession
Ability of buyers and sellers to be in different locations
*
E-MarketplacesMarket space components
Customers
Sellers
Products and services
Infrastructure
Front end
Back end

Intermediaries
Infomediaries (collects and analyses customer data on behalf of
the company)
e.g., Nostradata
*
Collaborative Commerce
7-*
Collaborative Commerce
grid computing
A form of distributed computing that involves coordinating and
sharing computing, application, data, storage, or network
resources across dynamic and geographically dispersed
organizations
service-oriented architecture (SOA)
An architectural concept that defines the use of services to
support a variety of business needs. In SOA, existing IT assets

(called services) are reused and reconnected rather than the
more time consuming and costly reinvention of new systems
7-*
Collaborative CommerceRepresentative Examples of E-
Collaboration
Vendor-managed inventory (VMI)
The practice of retailers’ making suppliers responsible for
determining when to order and how much to order
Information sharing between retailers and suppliers
Retailer–supplier collaboration
Lower transportation and inventory costs and reduced stockouts
Reduction of design cycle time
Reduction of product development time
7-*
Collaborative CommerceBarriers to C-Commerce
Most organizations have achieved only moderate levels of
collaboration because of:
A lack of internal integration, standards, and networks
Security and privacy concerns, and distrust over who has access

to and control of information stored in a partner’s database
Internal resistance to information sharing and to new
approaches
E.g., Bosch Australia
A lack of internal skills to conduct c-commerce
7-*
Flavours of B2B business model
The B2B business models that we will evaluate:
E-Shop (more B2C)
E-Mall (more B2C)
E-Procurement
E-Auctions
Virtual Communities
Independent E-Markets
Value-Chain Service Providers
Value-Chain Integrators
Collaboration Platforms
Information Brokerage, Trust and other Services
*

E-Shops aka online shopping
Activities supported:
Product promotion
Online catalogue
Order taking
Payment
Online channel for a brick and mortar
Example
Travelocity (www.travelocity.com)
Alibaba
Amazon
Ebay
*
E-Malls

A collection of E-Shops (aggregator)
Product promotion
Online catalogue
Order taking
Payment
Delivery & Logistics
Can become vertical or horizontal markets
Example
www.shopnz.co.nz
*
E-ProcurementElectronic tendering and procurement of
industrial goods and servicesEmphasizes standardized
procurement channel and integrated business processesExamples
Coles
Woolworths
RMIT
*

E-procurement CompaniesCreate and sell access to digital
electronic marketsB2B service provider is one type – offer
purchasing firms sophisticated set of sourcing and supply chain
management toolsApplication service providers a subset of B2B
service providersExamples:
Ariba
CommerceOne
E-AuctionsForward Auctions (for sellers) and Reverse Auctions
(for buyers)Activities supported:
Electronic bidding
Dynamic price determinationExamples
Freemarkets.com
Global eXchange Services (gxs.com)
*

Virtual Communities / PortalsConcentrate on adding value
through relationship, memberships and affiliationsOnline
communities with mutual interests discuss using social media
Collaborative purchasing
Collaborative product design
Integrated supply chain activities
Examples
Fencepost/Fonterra
Revenue model
Membership fees
Advertisements
*
Independent E-MarketsSupport specific industriesFormed by
infrastructure providers, banking institutions…etc.Activities
supported:

“match-making”
Online catalogue
Transaction processing
Collaborative product design and support
Example:
http://www.chemdex.org/
Revenue Model
Transaction fees
Membership fees
*
Value Chain Service Providers
Support part of the value chain
Derive competitive advantage from specializing in specific
tasks, such as electronic payments or logistics
Examples
www.ups.com

Fedex
In this instance, Shipping support packages
Revenue Model
Transaction fees
Outsourced services
Consultancy fees
*
Value Chain IntegratorsIntegrate multiple steps of the value
chain
Add value by providing smooth flow of information between
organizations
Some independent e-markets are providing Value Chain
Integrator services
Revenue Model
Outsourced services
Transaction fees
Consultancy fees
*

Collaboration PlatformsProvide specialized collaboration tools
for organizationsIncreasing knowledge sharing among
companies and employees (KM)Example
www.e2open.com
Revenue Model
Membership fees
Transaction fees
Usage fees
Sales of collaborative software
*
Information BrokerageProvides a whole range of new
information services such as information search, customer
profiling, business opportunities brokerage, investment advice
etc.

Example:
https://www.schwab.com/
Revenue Model
subscription fees
usage fees
advertising
*
Trust Service ProviderTrust services provided by certification
authorities, electronic notaries, & other trusted third parties
Examples
www.verisign.com
Benefit to Trust Service Providers
revenue from subscription fees, one-off service fees, software
sales, consultancy fees
Benefit to businesses
Used of already available infrastructure, eg. Internet
Seamless transactions
Security and trust
*

Remaining timeFinalise groups Newcomers to join groups
Topics and software solutions to be finalised Plans to be made
on execution of the tasks aheadTips – focus on SCM and e –
procurement chapters and additional readings
*
E-PROCUREMENT & SUPPLY CHAIN TECHNOLOGIES
INTE 1208
Dr Alka Nand
Sem 1, 2016

INTE1208 – Session 3
Introduction to Supply Chain Management
*
Objectives
At the completion of this topic you should be able to:
Discuss a number of the concepts underpinning order
fulfillment, logistics and Supply Chain Management (SCM);
Describe the types of applications and technologies which
enable SCM approaches such as Just-In-Time (JIT) inventory
management;
Outline the benefits and problems which can occur through
SCM;
Discuss the challenges which SCM presents, such as changes in
trading partner relationship/collaboration and the importance of
looking at both internal and external business processes in the
context of SCM; and
Discuss the role of technology in addressing some of these
problems and challenges.

Issues for ManagersWhich technologies should we deploy for
supply chain management and how should they be
prioritized?Which elements of the supply chain should be
managed within and beyond the organization and how can
technology be used to facilitate this?
Learning ResourcesHandfield, R. B. and Nichols, E. L. Jr.
(1999). “Introduction to supply chain management,”
Introduction to supply chain management, Prentice Hall, Upper
Saddle River, NJ, pp. 1-12 – available as an electronic reading
through myRMIT Studies.Chaffey, D. (2015). Chapter 6 -
Supply Chain Management.
*
Supply Chain & Supply Chain ManagementThe Supply Chain
consists of the flow of materials, information, and services from
raw material suppliers through factories and warehouses to the
end customers.

Supply Chain Management (SCM) involves integration of the
business processes from the end users through to the original
suppliers, that provide products, services and information that
add value for customers
*
The Immediate Supply Chain for an Individual Firm
CR (2004) Prentice Hall, Inc.
1-2

Warehousing
Warehousing
Transportation
Transportation
Vendors/plants/ports
Transportation
Factory
Transportation
Customers
*
Turban, E., King, D., Viehland, D. and Lee, J. (2006).
Electronic Commerce: A Managerial Perspective 2006, 4the
Edition © 2006. Electronically reproduced by permission of
Pearson Education, Inc., Upper Saddle River, New Jersey.

A Supply Chain for Beer
Figure 11.1
*
A more realistic supply chain – Components of the Honda
Accord Console
E-Supply Chains
Managing Supply Chains
Managing supply chains can be difficult due to the need to
coordinate:
Several business partners
Several internal corporate departments
Numerous business processes

Possibly many customers
Information technology provides two types of software
solutions:
SCM
ERP and its predecessors MRP and MRP II
*
*
Benefits of supply chain management
Source: PMP (2008)
Two aspects of SCM
Upstream supply chain Transactions between an organization
and its suppliers and intermediaries, equivalent to buy-side e-
commerce.
Downstream supply chain Transactions between an organization
and its customers and intermediaries, equivalent to sell -side e-
commerce.
*

Key Concepts – Order Fulfilment
Order fulfillment: Delivering the right order on time to the
customer
Involves Front and Back Office Operations
Front office operations:
Order taking
Advertisement
Customer Relations Management (CRM)
Back office operations
Accounting
Packaging
Finance
Logistics
Inventory
*
Push vs Pull Supply ChainPush:
Traditional retailing begins with production based on demand
forecasting
Goods are mass produced and placed in inventory

Products then move through inventories maintained by
wholesalers/distribution centers before being PUSHED to
customers by being placed on retail store shelves
*
Push and pull approaches to
supply chain management
*
Figure 6.3 Push and pull approaches to supply chain
management
Push vs Pull Supply Chain
Pull:
eCommerce enabled SCM allows operations to begin with an
order being placed (PULLED) by a customer
Information concerning the order is passed back to the retail
distribution centre for replacement from inventory
and as needed back to the manufacturer to initiate manufacture
of replacement items
*

Push and pull approaches to
supply chain management
*
Figure 6.3 Push and pull approaches to supply chain
management
The downstream supply chain is:
Involved with procurement of material from suppliers
The distribution of products or delivery of services to customers
Exclusively inside an organisation
None of the above
*
0
of
5
20

The upstream supply chain is:
The distribution of products or delivery of services to customers
Exclusively inside an organisation
Involved with procurement of material from suppliers
None of the above
*
0
of
5
20
Logistics:
Managing the flow of goods, information and money along the
supply chain
The concept originates in a branch of military science dealing
with procurement, maintenance, and transportation
It involves the management of the details of an operation

It includes all activities involved in management of product
movement
Right product
Right place
Right time
*
Key Concepts – Logistics
Logistics Management
Objective is to obtain efficient operations through the
integration of all material acquisition, movement, and storage
activities
Is a frequent candidate for outsourcing
Specialist expertise
State of art technologies in built
Logistics companies invest in advanced tracking technologies
Ability to adhere to precise delivery windows and delivery
schedules
Allows competitive advantage to be gained through reduced
costs and improved customer service
*

Good Logistics?
Good Logistics?
Good Logistics?
Good Logistics?
Good Logistics?

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