EBusiness & eCommerce: Management der digitalen Wertschöpfungskette (German Edition)
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Tips to increase your productivity as your popularity grows. The Boston Consulting group conducted a study concerning business-to-business eCommerce in Germany and asked about companies. According to the study the branches retail, automotive and consumer goods dominate the eBusiness market in Germany. At present companies see only a small benefit in the online trade but estimate a larger significance for the future. But in general it is to notice that all companies recognize this new phenomenon as something important for their business.
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They see only the benefit for their company in online trading and marketing through a web presence. But it is important to realize that the Internet will offer the opportunity to link all business processes and the value to the Internet and electronic processes. EBusiness is an opportunity to connect all actors in the marketplace - suppliers, costumers, strategic partners, intermediates, contractors, employees and potential employees etc.
Europe and Japan's economies are clearly lacking behind the United States. Europe has not been able to create cutting edge technologies like companies from the US. It is also much harder to start up a business in Europe, because for example of the low development of venture capital markets. Labor and product markets are inflexible and employment is strictly protected in Europe. The Internet itself is a catalyst for change by making markets more transparent and trade restrictions virtually impossible. Shop-opening hours and the strict ruling on pricing and promotion do not hold any ground on the World Wide Web.
But there are two sectors where Europe and Japan lead the market. Many more Europeans and Japanese use mobile phones which might become the main gateway to the Internet. And even though the US has some of the best universities in the world, Europe for example provides a much better education for the whole population.
To sum it up the US is certainly the driving force behind eBusiness and the World Wide Web at present but Europe for having a more sustainable business culture and learning from mistakes might be faster to catch up and gain more from it in the long run as my citation quotes.
eBusiness & eCommerce | SpringerLink
With this perspective it becomes clear how important it is for organizations especially in Europe to have a clear business concept for eBusiness to be prepared for the rapidly changing markets. As I already outlined in my introduction the main focus of this paper lies on the role of value chains and business processes for eBusiness. The following part will give a short introduction on Michael E.
Porter's value chain model. I also outline some of the models for integrating the value chain into eBusiness. Built-in here is a short overview of solutions and strategies, as well as some examples from the business world, including cutting-edge technologies and concepts like Portals. As a conclusion this chapter contains some benefits and problems emerging from eBusiness. In Michael E. Porter wrote a book called the " Competitive Advantage". There he spoke about the importance of value chains for organizations. Porter defines the value chain as a collection of activities that are performed to design, produce, market, deliver and support its product.
It also reflects the company's history, strategy and the underlying economics. Primary activities are involved in the creation, sale and transfer of the product as well as after sales assistance. Support activities support the primary activities and each other as shown in picture 2. The generic value chain from Porter is a model used widely by organizations and companies.
The value chain may look different for each industry or even company. But in principle the value chain shows the activities within an organization and the performance of each activity. Hence they become measurable. All these activities can be divided into sub-activities and business processes. A business process is a collection of activities that takes one or more kinds of input and creates an output of value to the customer. Business process reengineering BPR per Hammer and Champy is the fundamental rethinking of business processes to achieve dramatic improvements in measures of performance such as quality, cost, speed, and services.
Manual Americas Poor and the Great Recession
The supply chain describes all activities that occur once the company receives an order. Defining business processes did not start with the "Internet Age". Porter's model goes back to This model and the need for defined business processes brought up other "business trends" like Business Process Reengineering for being a radical rethinking and improvement processes like Kaizen, Total Quality Management, Just-in-time and so on.
It was the overall goal to identify business processes within an organization, to describe them, and based on this it was possible to achieve optimized business processes to gain maximum profit. The need for this organizational and economical change is even more obvious today - globalization, the integration of companies, mergers, a higher need for standardization force enterprises as well non-commercial organizations to change and adapt to the so-called new economy.
With the Internet as the new medium for doing electronic business companies are challenged and the concept of value chains and business processes needs to be revised and improved even more. Sometimes it is even necessary to totally rethink concepts within the organization. The Internet is an inexpensive, fast, global and low regulated medium. Many companies use it already as a new sales channel, but this will not be enough. The challenge is to utilize the Internet to further optimize and integrate the already interwoven activities of the value chain.
The next parts will show some of the approaches to integrate the value chain and connect it to the eBusiness concept. These are just a few examples to give a basic impression about eBusiness and value chains. The first model from Bliemel sees information as the key essential for the new virtual value chain and eCommerce.
The other two models point out interfaces and links between electronic businesses, the value chain and internal and external factors. It is obvious that they only scratch on the surface but show the implications eBusiness can have on the value chain. The model below is based on the value chain model from Michael E.
Porter shown above. All single steps of the value chain are analyzed within a company to manage internal and external processes more efficiently. Information plays the key element to reach new market opportunities. Through the digitalization of information it is, according to Bliemel, nowadays possible to process information in many different ways. Managing information is a factor, which will become more and more important for companies and organizations. Internal processes like collecting, systemizing, selecting, intensifying and distributing information can now be supported through information technology.
Bliemel describes this as the virtual value chain process. One result of this process through the accessibility of more high quality information could be an improvement of real products in the marketplace. The model also shows the transformation of the physical value chain to a virtual value chain. With this description it is now possible to manage information more efficiently for each business process Logistics, Sales etc. The transformation generates three potential market opportunities for companies: 1 improvement of real product offers, 2 generation of original marketable performances in the market space e.
Internet , 3 creation of additional customer values in the market space. As outlined before globalization, the need for cost and time reduction and the understanding that customer relationship management has a mayor influence on profitability, force organizations to rethink their value chains to be prepared for the new "Internet-age".
The following models are two examples for integrating the value chain as well as stakeholders in the eBusiness concept.
eBusiness & eCommerce: Management der digitalen Wertschöpfungskette
There are many factors, which have an influence on business and organizations. Little presents the implications of these influences on the value chain and continuing on eBusiness.
They see business-to- business initiatives as the interaction of all business networks of a company with its suppliers, distributors, partners, logistic services and customers. These business-to-business initiatives show the company's strategies and do have an effect on all electronic co-operations and the whole value chain. There are many interfaces from eBusiness to the value chain in known fields like marketing through web sites , recruiting online applications for a job , communications email , sale online trading , etc.
One of the first forms of electronic business as said before was EDI, but eBusiness offers opportunities for more fields like distribution planning, marketing planning, sales and services through various kinds of applications as shown in the diagram 5 below. Stephan Salb works for Compaq where the company's strategy is to create a supply chain oriented electronic commerce solution, which integrates internal and external processes along the value chain.
Common business processes link to eBusiness or are a part of it. The main goal is it to create a network where value is created for both parts - the company and the customers, partners, banks etc. Information technology is the tool that makes these connections along the value chain possible. The emphasis at Compaq lies on EDI Electronic Data Interchange , which connects all suppliers in one network and allows the exchange of business data.
The advantages of such a concept are obvious: an intensive customer relationship management, fast and actual data exchange, effective business processes and a strong network of all business subjects e. Hence Compaq is able to stay on the competitive edge. Picture 5: Information technology integrates partner and processes along the value chain Stephan Salb p. It is necessary for an organization to find a proper strategy to integrate the business processes into the eBusiness concept and hence to optimize them and reach optimum profit.
It is crucial in a first step to harmonize all business activities and processes for an optimized output. This also means finding a standardized solution for the business process model or value chain. These activities need to be connected or included in the eBusiness concept. As mentioned before this step could mean an adaptation to the new conditions or a total change of the process itself.
Speaking from my own experience it is essential to define exact business requirements in this first stage and not focus only on technology. In the next phase could follow the integration of value chains of different companies within the eBusiness concept by using the Internet see model from Stephan Salb. This means the integration of technologies, systems and processes within an organization but also the integration of partners, suppliers, etc. This would link different value chains together to create value on both sides. Many companies do not have the knowledge and resources to do such difficult and complex processes on their own.
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