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Supply Chain Management
Supply Chain Management
• Supply chain management (SCM) is the management of the flow of goods
and services.
• It includes...
Benefits of supply chain management
Friday, 04 March 2016 3
Realization of benefits
Friday, 04 March 2016 4
Members of the supply chain: (a) simplified view, (b)
including intermediaries
Friday, 04 March 2016 5
A typical supply chain for a B2B company
Friday, 04 March 2016 6
Push and pull approaches to supply chain management
Friday, 04 March 2016 7
Push and pull approaches to supply chain management
Friday, 04 March 2016 8
A typical IS infrastructure for supply chain management
Friday, 04 March 2016 9
Alternative strategies for modification of the e-business
supply chain
Friday, 04 March 2016 10
E-Procurement
Friday, 04 March 2016 11
The 5 Rights of E-Procurement
• at the right price
• delivered at the right time
• are of the right quality
• of the right...
Key procurement activities within an organization
Friday, 04 March 2016 13
Process flow analysis for traditional procurement
Friday, 04 March 2016 14
Process flow analysis for new procurement
Friday, 04 March 2016 15
Use of different information systems for different aspects
of the fulfilment cycle
Friday, 04 March 2016 16
The three main e-procurement model alternatives for
buyers
Friday, 04 March 2016 17
Integration between e-procurement systems and
catalogue data
Friday, 04 March 2016 18
E-Marketing
Friday, 04 March 2016 19
E-Marketing
• Marketing is the management process responsible for identifying,
anticipating and satisfying customer requir...
The operational and management processes of e-
marketing
Friday, 04 March 2016 21
The operational and management processes of e-
marketing
Friday, 04 March 2016 22
The e-marketing plan in the context of other plans
Friday, 04 March 2016 23
SOSTAC– a generic framework for e-marketing planning
Friday, 04 March 2016 24
Inputs to the e-marketing plan from situation analysis
Friday, 04 March 2016 25
Stages in target marketing strategy development
Friday, 04 March 2016 26
Channels requiring integration as part of integrated e-
marketing strategy
Friday, 04 March 2016 27
Channel integration required for e-marketing and mixed-
mode buying
Friday, 04 March 2016 28
The elements of the marketing mix
Friday, 04 March 2016 29
E- Customer Relationship
Management
Friday, 04 March 2016 30
E-CRM – A Definition
• E-CRM is:
• Applying…
Internet and other digital technology…
(web, e-mail, wireless, iTV, databases...
Marketing Applications of CRM
• A CRM system supports the following marketing applications:
– Sales force automation (SFA)...
The four classic marketing activities of customer
relationship management
Friday, 04 March 2016 33
Reach–Act–Convert–Engage model
Friday, 04 March 2016 34
A summary of how the Internet can impact on the buying
process for a new purchaser
Friday, 04 March 2016 35
Different information sources as important when
researching a product or service
Friday, 04 March 2016 36
Activity segmentation of a site requiring registration
Friday, 04 March 2016 37
Customer life cycle segmentation
Friday, 04 March 2016 38
An overview of the components of CRM technologies
Friday, 04 March 2016 39
E-Payment system
Friday, 04 March 2016 40
Tools used to establish secure Internet communications
channels
• Secure Sockets Layer (SSL)/Transport Layer Security (TLS...
Friday, 04 March 2016 42
Tools to protect networks, the servers, and clients
• Firewalls—software applications that act as filters between a compan...
Tools to protect networks, the servers, and clients
• Operating system controls—built-in username and password
requirement...
Types of Payment Systems
• Cash
• Checking Transfer
• Credit Card
• Stored Value
• Accumulating Balance
Friday, 04 March 2...
Cash
• Legal tender defined by a national authority to represent value
• Most common form of payment in terms of number of...
Checking Transfer
• Funds transferred directly via a signed draft or check from a
consumer’s checking account to a merchan...
Credit Card
• Represents an account that extends credit to consumers, permitting
consumers to purchase items while deferri...
Stored Value
• Accounts created by depositing funds into an account and from which
funds are paid out or withdrawn as need...
Accumulating Balance
• Accounts that accumulate expenditures and to which consumers make
period payments
– Examples: utili...
Current Online Payment Systems
• Credit cards are dominant form of online payment, accounting for
around 80% of online pay...
Digital Cash
• One of the first forms of alternative payment systems
• Not really “cash”: rather, are forms of value stora...
Online Stored Value Systems
• Permit consumers to make instant, online payments to merchants and
other individuals based o...
Digital Accumulating Balance Payment Systems
• Allows users to make micropayments and purchases on the Web,
accumulating a...
Digital Credit Card Payment Systems
• Extend the functionality of existing credit cards for use as online
shopping payment...
Digital Checking Payment Systems
• Extend the functionality of existing checking accounts for use as online
shopping payme...
Online Credit Card Transactions
Friday, 04 March 2016 57
The key participants in processing card payments online
include
• Acquiring bank
• Credit card association
• Customer
• Is...
The SET (Secure Electronic Transaction) Protocol
• Authenticates cardholder and merchant identity through use of digital
c...
How SET Transactions Work
Friday, 04 March 2016 60
Digicash: How First Generation Digital Cash Worked
Friday, 04 March 2016 61
Most Common Payment Systems, Based on Number Of
Transactions
Friday, 04 March 2016 62
Most Common Payment Systems, Based on Amount
Friday, 04 March 2016 63
Friday, 04 March 2016 64
Various Payment Methods Offered Online Merchants
Friday, 04 March 2016 65
Electronic Billing Presentment and Payment (EBPP)
• Online payment systems for monthly bills
• EBPP expected to grow rapid...
Major Players in the EBPP Marketspace
Friday, 04 March 2016 67
B2B Payment Systems
• More complex than B2C
• Major types:
– Systems that replace traditional banks (example: TradeCard, O...
Friday, 04 March 2016 69
Friday, 04 March 2016 70
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  1. 1. Supply Chain Management
  2. 2. Supply Chain Management • Supply chain management (SCM) is the management of the flow of goods and services. • It includes the movement and storage of raw materials, work-in-process inventory, and finished goods from point of origin to point of consumption. • Interconnected or interlinked networks, channels and node businesses are involved in the provision of products and services required by end customers in a supply chain. • Supply chain management has been defined as the "design, planning, execution, control, and monitoring of supply chain activities with the objective of creating net value, building a competitive infrastructure, leveraging worldwide logistics, synchronizing supply with demand and measuring performance globally." Friday, 04 March 2016 2
  3. 3. Benefits of supply chain management Friday, 04 March 2016 3
  4. 4. Realization of benefits Friday, 04 March 2016 4
  5. 5. Members of the supply chain: (a) simplified view, (b) including intermediaries Friday, 04 March 2016 5
  6. 6. A typical supply chain for a B2B company Friday, 04 March 2016 6
  7. 7. Push and pull approaches to supply chain management Friday, 04 March 2016 7
  8. 8. Push and pull approaches to supply chain management Friday, 04 March 2016 8
  9. 9. A typical IS infrastructure for supply chain management Friday, 04 March 2016 9
  10. 10. Alternative strategies for modification of the e-business supply chain Friday, 04 March 2016 10
  11. 11. E-Procurement Friday, 04 March 2016 11
  12. 12. The 5 Rights of E-Procurement • at the right price • delivered at the right time • are of the right quality • of the right quantity • from the right source. Friday, 04 March 2016 12
  13. 13. Key procurement activities within an organization Friday, 04 March 2016 13
  14. 14. Process flow analysis for traditional procurement Friday, 04 March 2016 14
  15. 15. Process flow analysis for new procurement Friday, 04 March 2016 15
  16. 16. Use of different information systems for different aspects of the fulfilment cycle Friday, 04 March 2016 16
  17. 17. The three main e-procurement model alternatives for buyers Friday, 04 March 2016 17
  18. 18. Integration between e-procurement systems and catalogue data Friday, 04 March 2016 18
  19. 19. E-Marketing Friday, 04 March 2016 19
  20. 20. E-Marketing • Marketing is the management process responsible for identifying, anticipating and satisfying customer requirements profitability • Which e-marketing tools can assist? • Web, e-mail, databases, wireless and digital television Friday, 04 March 2016 20
  21. 21. The operational and management processes of e- marketing Friday, 04 March 2016 21
  22. 22. The operational and management processes of e- marketing Friday, 04 March 2016 22
  23. 23. The e-marketing plan in the context of other plans Friday, 04 March 2016 23
  24. 24. SOSTAC– a generic framework for e-marketing planning Friday, 04 March 2016 24
  25. 25. Inputs to the e-marketing plan from situation analysis Friday, 04 March 2016 25
  26. 26. Stages in target marketing strategy development Friday, 04 March 2016 26
  27. 27. Channels requiring integration as part of integrated e- marketing strategy Friday, 04 March 2016 27
  28. 28. Channel integration required for e-marketing and mixed- mode buying Friday, 04 March 2016 28
  29. 29. The elements of the marketing mix Friday, 04 March 2016 29
  30. 30. E- Customer Relationship Management Friday, 04 March 2016 30
  31. 31. E-CRM – A Definition • E-CRM is: • Applying… Internet and other digital technology… (web, e-mail, wireless, iTV, databases) • to… acquire and retain customers (through a multi-channel buying process and customer lifecycle) • by… improving customer knowledge, targeting, service delivery and satisfaction Friday, 04 March 2016 31
  32. 32. Marketing Applications of CRM • A CRM system supports the following marketing applications: – Sales force automation (SFA). Sales representatives are supported in their account management through tools to arrange and record customer visits – Customer service management. Representatives in contact centres respond to customer requests for information by using an intranet to access databases containing information on the customer, products and previous queries – Managing the sales process. This can be achieved through e-commerce sites, or in a B2B context by supporting sales representatives by recording the sales process (SFA) – Campaign management. Managing ad, direct mail, e-mail and other campaigns – Analysis. Through technologies such as data warehouses and approaches such as data mining, which are explained further later in the chapter, customers characteristics, their purchase behaviour and campaigns can be analyzed in order to optimize the marketing mix. Friday, 04 March 2016 32
  33. 33. The four classic marketing activities of customer relationship management Friday, 04 March 2016 33
  34. 34. Reach–Act–Convert–Engage model Friday, 04 March 2016 34
  35. 35. A summary of how the Internet can impact on the buying process for a new purchaser Friday, 04 March 2016 35
  36. 36. Different information sources as important when researching a product or service Friday, 04 March 2016 36
  37. 37. Activity segmentation of a site requiring registration Friday, 04 March 2016 37
  38. 38. Customer life cycle segmentation Friday, 04 March 2016 38
  39. 39. An overview of the components of CRM technologies Friday, 04 March 2016 39
  40. 40. E-Payment system Friday, 04 March 2016 40
  41. 41. Tools used to establish secure Internet communications channels • Secure Sockets Layer (SSL)/Transport Layer Security (TLS)—This is the most common form of securing channels. The SSL protocol provides data encryption, server authentication, client authentication, and message integrity for TCP/IP connections. • Virtual private networks (VPNs)—These allow remote users to securely access internal networks via the Internet, using PPTP, an encoding mechanism that allows one local network to connect to another using the Internet as the conduit. • WPA2—the most current wireless security standard uses the AES algorithm for encryption and CCMP, a more advanced authentication code protocol Friday, 04 March 2016 41
  42. 42. Friday, 04 March 2016 42
  43. 43. Tools to protect networks, the servers, and clients • Firewalls—software applications that act as filters between a company’s private network and the Internet itself, preventing unauthorized remote client computers from attaching to your internal network. • Proxies—software servers that act primarily to limit access of internal clients to external Internet servers and are frequently referred to as the gateway. • Intrusion detection and prevention systems (IDS/IDP)—an IDS examines network traffic, watching to see if it matches certain patterns or preconfigured rules indicative of an attack, while an IPS has all of the funcationality of an IDS with the additional ability to take steps to prevent and block suspicious activities. Friday, 04 March 2016 43
  44. 44. Tools to protect networks, the servers, and clients • Operating system controls—built-in username and password requirements that provide a level of authentication. Some operating systems also have an access control function that controls user access to various areas of a network. • Anti-virus software—a cheap and easy way to identify and eradicate the most common types of viruses as they enter a computer, as well as to destroy those already lurking on a hard drive. Friday, 04 March 2016 44
  45. 45. Types of Payment Systems • Cash • Checking Transfer • Credit Card • Stored Value • Accumulating Balance Friday, 04 March 2016 45
  46. 46. Cash • Legal tender defined by a national authority to represent value • Most common form of payment in terms of number of transactions • Instantly convertible into other forms of value without intermediation of any kind • Portable, requires no authentication, and provides instant purchasing power • “Free” (no transaction fee), anonymous, low cognitive demands • Limitations: easily stolen, limited to smaller transaction, does not provide any float Friday, 04 March 2016 46
  47. 47. Checking Transfer • Funds transferred directly via a signed draft or check from a consumer’s checking account to a merchant or other individual • Most common form of payment in terms of amount spent • Can be used for both small and large transactions • Some float • Not anonymous, require third-party intervention (banks) • Introduce security risks for merchants (forgeries, stopped payments), so authentication typically required Friday, 04 March 2016 47
  48. 48. Credit Card • Represents an account that extends credit to consumers, permitting consumers to purchase items while deferring payment, and allows consumers to make payments to multiple vendors at one time • Credit card associations: Nonprofit associations (Visa, MasterCard) that set standards for issuing banks • Issuing banks: Issue cards and process transactions • Processing centers (clearinghouses): Handle verification of accounts and balances Friday, 04 March 2016 48
  49. 49. Stored Value • Accounts created by depositing funds into an account and from which funds are paid out or withdrawn as needed – Examples: Debit cards, gift certificates, prepaid cards, smart cards – Debit cards: Immediately debit a checking or other demand-deposit account – Peer-to-peer payment systems such as PayPal a variation Friday, 04 March 2016 49
  50. 50. Accumulating Balance • Accounts that accumulate expenditures and to which consumers make period payments – Examples: utility, phone, American Express accounts Friday, 04 March 2016 50
  51. 51. Current Online Payment Systems • Credit cards are dominant form of online payment, accounting for around 80% of online payments in 2005 • New forms of electronic payment include: – Digital cash – Online stored value systems – Digital accumulating balance payment systems – Digital credit accounts – Digital checking Friday, 04 March 2016 51
  52. 52. Digital Cash • One of the first forms of alternative payment systems • Not really “cash”: rather, are forms of value storage and value exchange that have limited convertibility into other forms of value, and require intermediaries to convert • Many of early examples have disappeared; concepts survive as part of P2P payment systems Friday, 04 March 2016 52
  53. 53. Online Stored Value Systems • Permit consumers to make instant, online payments to merchants and other individuals based on value stored in an online account • Rely on value stored in a consumer’s bank, checking, or credit card account Friday, 04 March 2016 53
  54. 54. Digital Accumulating Balance Payment Systems • Allows users to make micropayments and purchases on the Web, accumulating a debit balance for which they are billed at the end of the month • Examples: Qpass, Valista, Clickshare, Click & Buy, Peppercoin Friday, 04 March 2016 54
  55. 55. Digital Credit Card Payment Systems • Extend the functionality of existing credit cards for use as online shopping payment tools • Focus specifically on making use of credit cards safer and more convenient for online merchants and consumers • Example: eCharge Friday, 04 March 2016 55
  56. 56. Digital Checking Payment Systems • Extend the functionality of existing checking accounts for use as online shopping payment tools • Examples: PayByCheck, Western Union MoneyZap Friday, 04 March 2016 56
  57. 57. Online Credit Card Transactions Friday, 04 March 2016 57
  58. 58. The key participants in processing card payments online include • Acquiring bank • Credit card association • Customer • Issuing bank • Merchant • Payment processing service • Processor Friday, 04 March 2016 58
  59. 59. The SET (Secure Electronic Transaction) Protocol • Authenticates cardholder and merchant identity through use of digital certificates • An open standard developed by MasterCard and Visa • Transaction process similar to standard online credit card transaction, with more identity verification • Thus far, has not caught on much, due to costs involved in integrating SET into existing systems, and lack of interest among consumers Friday, 04 March 2016 59
  60. 60. How SET Transactions Work Friday, 04 March 2016 60
  61. 61. Digicash: How First Generation Digital Cash Worked Friday, 04 March 2016 61
  62. 62. Most Common Payment Systems, Based on Number Of Transactions Friday, 04 March 2016 62
  63. 63. Most Common Payment Systems, Based on Amount Friday, 04 March 2016 63
  64. 64. Friday, 04 March 2016 64
  65. 65. Various Payment Methods Offered Online Merchants Friday, 04 March 2016 65
  66. 66. Electronic Billing Presentment and Payment (EBPP) • Online payment systems for monthly bills • EBPP expected to grow rapidly, to an estimated 40% of all households by 2007 • Main business models in EBPP market include: – Biller-direct – Consolidator • Above are supported by EBPP infrastructure providers Friday, 04 March 2016 66
  67. 67. Major Players in the EBPP Marketspace Friday, 04 March 2016 67
  68. 68. B2B Payment Systems • More complex than B2C • Major types: – Systems that replace traditional banks (example: TradeCard, Orbian) – Financial institutions hoping to extend to the B2B marketplace – Credit card companies Friday, 04 March 2016 68
  69. 69. Friday, 04 March 2016 69
  70. 70. Friday, 04 March 2016 70

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