Dr Ailsa Kolsaker
Value and Strategy
Information search:
• Convenience – reduce search costs, both time and
energy
• Access – to information about products and companies
• Availability – 24/7
Evaluation of alternatives:
• Increased number of alternatives
• Enhanced transparency – facilitates comparison
Decision-making:
• Third party expertise
• Enhanced confidence
Government motivations (e-Gov)
In Chaffey, 2007:30
E-Business As a System
Goal: Seamless value delivery to end customer
• Integration emphasis [Systems Theory]
External environment
Control
Processes
Extensive Collaboration/Partnering:
• Design becomes part of the production process
which is inter-weaved through a series of internal
and external partnerships to procurement, stock
control, marketing, financial management, sales
and after-sales support, supplier and customer
relationship management
Away from Vertical Integration
OR
Customer facing IS:
Supplier facing IS:
Sales
Marketing
Inbound logistics
Distribution
Procurements
After-sales
SRM/PRM
CRM
Front-end infrastructure
Business tier
Database
Beynon-Davies, 2004
Sales & Procurement
after-sales
HRM
Planning
Purchase
order
Stock processing
Process
Sales control Data flow
Accounting Agent
order Payroll
processing
Core systems
Modelling
• Where do we want to
go?
Distinctive
Competences
Customer
Efficiency Quality Innovation responsive-
ness
•Low Cost
•Differentiation
•Niche
Disintermediating the Value Chain
Producer
Wholesaler
Retailer
Customer
Electronic
Airlines
Cybermediaries
Reservation
systems
Travel
Customers agents
Perceived
usefulness
Perceived
ease of use Davis, 1999
Based upon Azjen’s
TRA: 1985, 1988, 1991
Challenges
Consider:
What value does eBay offer?
(define ‘value’)
How is that value created?
Who are eBay’s competitors?
How does it contribute
to eBay’s competitive
advantage?
How sustainable is it?
Supplementary Reading