Cnllne Shopplng WebslLes

nLroducLlon
Cnllne Shopplng webslLes are consldered Lo be Llme and efforL savlng
selllng channels
1hey enable people Lo buy dlfferenL producLs wlLh Lhe mlnlmum requlred
Llme and efforL
Cnllne Shopplng webslLes are common and well known world wlde
however Lhey remaln Lo be ln Lhelr growlng phase lnslde LgypL
roflLablllLy from onllne shopplng webslLes depends on many correlaLed
and dynamlc facLors
1he number of cusLomers ls Lhe maln lnfluenLlal facLor on Lhe proflLablllLy
of onllne shopplng webslLes
1herefore lL ls very lmporLanL Lo malnLaln Lhe expecLed number of
cusLomers Lo malnLaln Lhe deslred and mosL convenlenL level of
proflLablllLy
,ld 1erm
Var|ab|e 1ype Var|ab|e 1ype Var|ab|e 1ype
all cenLer
performance
Lndogenous ,arkeLlng Lxcluded Speed of dellvery Lndogenous
all cenLer upgrade Lndogenous number of
usLomers
Lndogenous SLock budgeL allocaLlon Lndogenous
all enLer 8udgeL Lndogenous Cnllne ompeLlLor Lxcluded SLock upgrade Lndogenous
Speed of
connecLlon
Lxcluded roducL avallablllLy Lndogenous SysLem capaclLy Excluded
onsumer 8ehavlor Lxcluded roducL varleLy Lxcluded SysLem performance Lndogenous
onsumer
Pardware
Lxcluded roflL Lndogenous SysLem upgrade Lndogenous
usLomer
SaLlsfacLlon
Lndogenous Sales volume Lndogenous SysLem upgrade budgeL
allocaLlon
Lndogenous
uownload speed Lxcluded Shlpplng cosL Lxogenous user lnLerface Lxcluded
lraud SecurlLy
concerns
Lxcluded
number oI
customers
sales volume
system upgrade
stock upgrade
product availability
system
perIormance
customer
satisIaction
call center
perIormance
proIit

-
-
-
system upgrade
budget allocation

stock budget
allocation

R1
B3
R2
B4
B5
Call center
upgrade
call center budget

-
shipping cost
speed oI delivary
-
B1
B2
B6
R3
,ldLerm u
number oI
customers
sales volume
system upgrade
system
perIormance
customer
satisIaction
proIit

-
system upgrade
budget allocation

R1
B4
B1
SysLem performancecusLomer saLlsfacLlon
number oI
customers
sales volume
stock upgrade
product availability
customer
satisIaction
proIit

-
stock budget
allocation

B3
R2
-
B2
roducL avallablllLy cusLomer saLlsfacLlon
number oI
customers
sales volume
customer
satisIaction
call center
perIormance
proIit

-
B5
Call center
upgrade
call center budget

-
B6
R3
all cenLer performance cusLomer saLlsfacLlon
llnal
roblem ueflnlLlon
- We LargeL Lo lncrease Lhe number of cusLomers as much as
posslble Powever Lhls lncrease ls llmlLed by our sysLem
capaclLy
- 1haL ls Lhe sysLem performance decreases wlLh Lhe lncrease
ln number of cusLomers
- We would be able Lo overcome Lhe llmlLs Lo growLh" by
Laklng correcLlve acLlons ln speclflc Llmes (uslng oLher
varlables) Lo balance beLween Lhe lncrease ln number of
cusLomers and Lhe deslred sysLem performance
VariabIe Type VariabIe Type
Shipping cost Exogenous Marketing Endogenous (New)
Speed of delivery Endogenous Competitive Power Endogenous (New)
Customer Satisfaction Endogenous Demand Endogenous (New)
Number of Customers Endogenous Cost Endogenous (New)
System performance Endogenous Profit Endogenous
System upgrade Endogenous Sales Volume Endogenous
SLudled varlables
ausal oop ulagram
number oI
customers
sales volume
system upgrade
system
perIormance
customer
satisIaction
proIit

-
B1
shipping cost
speed oI delivary

B2
marketing
competition power
-

-
demand

cost

R3
R5
B6
- B4
B7
number oI
customers
system upgrade
system
perIormance
customer
satisIaction

-
B1
B2
-
System performance-customer satisfaction
Demand / System Performance
number oI
customers
sales volume
system upgrade
system
perIormance
proIit

-
marketing

demand

cost

R3
-
B4
B7
Competition / system performance
number oI
customers
sales volume
system upgrade
system
perIormance
proIit

-
marketing
competition power
-

-
cost

R5
B6
-
B7
Demand
/system
performance
Marketing /
system
performance
Competition
/ system
performance
Customer satisfaction /
system performance
Life Cycle
SLock llow dlagram SLock llow dlagram
number oI
customers
sales volume
system upgrade
system
perIormance
customer
satisIaction
proIit

-
B1
B2
cost

-
-
PM Fri, Jun 17, 11 Page 1
1. .75 6.5 .5 1.
Months
1
1
1

15

1 profi t cos t number of customer

1
1
1
1

nalysls
- Cur sysLem archeLype ls lmlLs Lo CrowLh"
- We sLarL ln a balanclng way ln Lhe lnlLlal sLages Lhen our
growLh ls hlndered by Lhe llmlLs Lo growLh" whlch sLarL Lo
appear
- 1hus our growLh raLe flaLLens sLops Lhen reverses
- denLlfylng whaL llmlLs" our growLh and Laklng lL lnLo
conslderaLlon by anLlclpaLlng fuLure problems has helped us
ln deallng wlLh Lhe scenarlos (Lo Lake place) ln an effecLlve
way
key olnLs
- denLlfy Lhe growLh englnes
- ueLermlne Lhe doubllng Llme of Lhose processes
- denLlfy poLenLlal llmlLs and balanclng loops
- ueLermlne change requlred Lo deal effecLlvely wlLh Lhe llmlLs
ldenLlfled
- ssess Lhe Llme needed Lo change s Lhere a dlscrepancy beLween
Lhe doubllng Llme and Lhe changes requlred Lo supporL growLh?
- 8alance Lhe growLh denLlfy sLraLegles for achlevlng sysLem
balance
- 8eevaluaLe Lhe growLh sLraLegy onLlnuously challenge
assumpLlons
roposed cLlons
Scenarlos
Scenarlo1
- 1he number of cusLomers lncreases Lo Lhe level whlch
decreases Lhe sysLem performance Lhus resulLlng ln
decreaslng Lhe level of cusLomer saLlsfacLlon hence
decreaslng Lhe number of cusLomers
ollcy1
- 1he delay perlod beLween Lhe decrease ln sysLem
performance and Lhe sLarL of sysLem upgrade wlll be
mlnlmlzed Lo enable us Lo conLrol Lhe decrease ln number of
cusLomers whlch resulLs from Lhe decrease ln Lhe level of
cusLomer saLlsfacLlon
Scenarlo2
< 1he number of cusLomers decreases causlng Lhe sales volume
Lo decrease whlch decreases Lhe proflL Lhus decreaslng Lhe
markeLlng acLlvlLy whlch leads Lo Lhe lncrease of Lhe
compeLlLlon power leadlng Lo a decrease ln Lhe number of
cusLomers
ollcy2
< 1he delay perlod beLween Lhe decrease ln Lhe markeLlng
acLlvlLy and Lhe lncrease ln Lhe compeLlLlon power wlll be
maxlmlzed Lo enable us Lo conLrol Lhe decrease ln number of
cusLomers whlch resulLs from Lhe decrease ln Lhe level of
cusLomer saLlsfacLlon
;uesLlons
1hank ?ou