Transcript E-business Components - West Virginia University

E-business Components
Professor Virginia Kleist
Spring 2003
E-business Components
(Source of all slides
from textbook by Amor, additional material from Turban, et al, 2002)
CMS
 CRM
 KMS
 Order Fulfillment
 Supply Chain Management
 Logistics
 Electronic Commerce Payments
 Interactive Communication Experiences
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What are “components?”
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(Turban, et all, 2002)
There is a tremendous variability in EC applications
EC applications change over time
Building complex web applications from components is a viable
strategy
One EC solution may have many components from several different
vendors
EC applications may involve several business partners
The web sites and applications can be developed in house, outsourced,
or use a combination of the two
Small storefronts can be written in HTML plus JavaScript and XML
Larger applications require extensive integration with existing
information systems such as corporate databases, intranets, ERP
(Enterprise Resource Planning) systems, and other applications
programs
Lensdoc. com
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(from Turban, et al, 2002)
Online supplier of contact lenses, glasses, personal care
products
relies on credit cards for sales
has had fraudulent charges from customers in Eastern
Europe
also returns on contact lenses
Some say 20 to 40 percent of business online may be fraud
attempts
Lensdoc has implemented special handling procedures
manually process credit cards, ask for a fax with
cardholders’ address and shipping info
No other system seems suitable to this firm
ToysRUs.com
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(Turban, et al, 2002)
1999, customers had high dissatisfaction with shipping,
customer service, deliveries
etailers did not do fulfillment well
Fall, ‘99, fierce competition in online toy business
ToysRUs.com had 1.75 million unique customers a day
Orders far exceeded projections
In December, 1999, ToysRUs.com notified that only orders
made prior to Dec. 14 would be shipped in time for the
holidays
At the same time, Amazon had similar problems, had to
ship in several batches, thus increasing charges
Warner Lambert Integrated
Supply Chain
(Turban, et al, 2002)
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Listerine begins in Australia with eucalyptus trees
shipped to WL in New Jersey
Major problem to determine how much to produce
Listerine purchased by thousands of retail stores, including
Wal-Mart
Warner Lambert uses sophisticated demand forcasting,
manugistics.com, integrated with manufacturing,
distribution, and sales data.
Sales and marketing personnel from WL meet each month
with finance, procurement and other departments to
schedule the production of Listerine in the amounts needed
Share data with Wal Mart over private networks, increased
percent of fully stocked stores, added $ 8 million
Akamai
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(Turban, et al, 2002, pp. 336-337)
Akamai means intelligent, clever and cool
applications in ecommerce use tons of bandwidth
streaming media may reach $12 billion by 2008
how will networks handle all of this bandwidth chewing
material?
Akamai uses complicated mathematical algorithms to
speed web pages from the closest Akamai web server to a
customer location, distributing and caching content across
thousands of servers
Charges big web sites $5500 per month, reduces delivery
time for large web sites by 20 to 30 percent
Using FreeFlow technology, users mark web sites to be
Akamaized
Whirlpool.com
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(Turban, et al, 2002, p. 521-2)
Leader in world in manufacture and marketing of home appliances
considers its suppliers and distributors and wholesalers to be partners
in industry leadership
order processing was inefficient at middle tier trade levels
these are sellers who generate 10 percent of company revenue, but
aren’t large enough to have dedicated, system to system connections
Whirlpool made a B2B portal for connectivity to selling partners
needed to integrate this with SAP R/3 inventory system and Tivoli
system management tools
Used IBM Websphere Application Server, IBM HTTP server, IBM
VisualAge for Java, IBM Commerce Integrator and IBM MQSeries to
make a easy web self service ordering system, cut orders to under $5,
or savings of 80 percent
Called Whirlpool Web World
Content Management Systems
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Content substance of ebusiness
Content as sum total of visitor experience
Most people do not understand what content is or where it
comes from
Most companies keep price data in pricing system, product
data in production system
Large manufacturer may have hundreds of products to
keep prices, marketing material, manuats, configurations,
etc., all in a form to convert to an Internet ready format
Without CMS, becomes a nightmare
What is Content?
Pages
 Programming Logic
 Transactional Data
 Downloads
 Support
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Content Management Options
et al, 2002, p. 335)
Do it yourself
 Let the suppliers do it
 Buy the content from an aggregator
 Subscribe to a vertical exchange
 Outsource to a full service exchange
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(Turban,
Role of XML in CMS
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Content management solutions are turning to XML
also using XSL
With XML content can be given a structure through clearly
defined sets of tags
viewing content is handled through XSL
XSL lets you set up your content for different front ends,
so you can set up content in templates that are structured
Can create content in XML, and then use the XSL to
display the same XML content in a web browser, a cell
phone and a television set
Most XML solutions have built in XML support
CMS Products
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Rhythmyx Content Manager by Percussion Software (supports XML)
Tridion DialogServer (supports XML)
Broadvision (design content structure in XML, and content is stored in
XML, while letting you publish in various formats on web page
Dynabase
eGrail
Infopark NPS
Interwoven Teamsite
Ncompass
RedDot
Roxen Platform
SiteStation
CRM
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Allows the combination of mass consumption with
personalized shopping
business strategy that can be tailored to needs of business’
customers, strategy of trying to build loyal customers
These systems are expensive
CRM objectives are to maximize the effectiveness and
productivity of channels, deliver stellar service, increase
selling time with each customer, enable better sharing
between sales, service and marketing, decrease time in
sales cycle, and achieve higher call to sales ratios
CRM Products
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ACT!
Applix
Clarify
Epicor
GoldMine
Onyx
Avaya
Remedy
Sales Logix
Siebel
Vantive
KMS
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KMS is area that we have not done well
Knowledge is information in a context
KMS allows users to control relatonships and the structure
of information within the system. KMS need to be closer
to the user’s thought processes than typical business aps
roots in AI and expert systems
advanced technology that separates valuable information
from that which is not valuable
Tacit knowledge vs. explicit
Some KMS allow for the dissemination of tacit knowledge
Features of KMS
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Info management. Finding, mapping, gathering and filtering info
Knowledge creation. Developing new knowledge
Sharing Knowledge. converting personal knowledge into shared
knowledge resources
Learning. Understanding and learning by acquiring or extracting
knowledge value
Adding value. Adding value to information to create knowledge
Action. Enabling action through knowledge, such as performance and
managment
Processing. Information processing of shared knowledge resources
Delivery. Transferring explicity knowledge to coworkers
Creation. Building a technical infrastructure
Difficulties with KMS
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creating one is difficult
challenges that IT rarely has power in organization to
overcome
missing loyalty of knowledge workers
people do not share knowledge voluntarily, knowledge
means power, giving up knowledge means giving up
power
people who share info can be laid off more easily
people are compensated based on production, so why give
up info that contributes to compensation edge
no obvious rewards
Overcoming Issues with KMS
Change reward structure for those who
contribute
 no KMS that can be bought completely as a
product
 Too complex, not a technology based issue
 cannot centralize knowledge
 who, what, why should be answered before
how- techno may not solve this for you
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Selecting a KMS
define corporate goals first
 understand processes behind the technology
 internet is not the first KM product
 KM is not about technology first
 technology does have some answers here,
however
 have a strategy and vision
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Vendors of KM Products
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Broadvision
Cogito
grapeVine
Hummingbird Fulcrum KnowledgeServer
Intraspective
KnowledgeX
Sovereign Hill
Wincite
KM vs. the Learning
Organization
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KM is an attempt to retain tacit knowledge within
a firm using technology as an assist to protect
corporate intellectual assets
the Learning Organization concept refers to the
firm as an organic, functioning live organism that
can acquire new knowledge, absorb it, act on it
and make changes as a result of it, not at the
human level, but as a firm
the firm as more than the people in it
Order Fulfillment
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Order fulfillment has been tough in ec since beginning
EC is based on pull, in that it begins with an order, frequently a
customized one, that has to be pulled through a system
Steps involve: 1. make sure customer will pay, 2. Checking for
availability, 3. arranging shipments, 4. Insurance, 5. Production, 6.
plant services scheduling, 7. purchasing and warehousing, 8, contacts
with customers, 8. returns.
Also related to order fulfillment are issues like demand forecasting,
accounting, reverse logistics
ex. Pets.com online logistics had fish shipping down to five days from
a pet store delay of 15 days and much more expense
SCM
(Turban, et al., 2003
Supply chain is “integration of business
processes from the end user through the
original suppliers, that provides products,
services, and information that adds value for
customers
 Includes purchasing, materials handling,
production planning and control, logistics
and warehousing, inventory control and
distribution
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SCM Benefits
holistic approach to entire supply chain
 improves efficiency of production
 reduce uncertainty and risks in supply chain
 global supply chains
 problems arise from uncertainty in chain
 electronic payment can speed up delivery of
product
 can get very short order fulfillments these
days
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SCM Technology
automated warehouses
 integration across “chimneys” of order
taking and product inventory, of pricing
with low inventory levels, with tracking
systems
 MRP is a subset of SCM
 upstream, internal, and downstream
activities
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Logistics
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Logistics refers to all activities involved in the management of product
movement, delivering the right product at the right place at the right
time
Interactive Communications
Technologies
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Talk to your customers, mail, email, phone, as well as partners
moderate online meetings
internet telephony (uses Resource Reservation Protocol, RSVP)
Internet gateways: telephony, fax
videoteleconferencing
Internet chat: relay, IRC, Java Chat
Virtual worlds
Internet newsgroups
digital communities
peer to peer technologies
specialized training courses