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Hardianto Iridiastadi
Reference
Chapter 9
Sumner, M. (2005). Enterprise Resource
Planning. Pearson Prentice Hall: New Jersey.
Objectives
After completing this chapter, you will be able
to:
E-Business
Electronic business encompasses three stages: ecommerce, e-business, and e-partnering. The early stages
of a companys e-business activity are almost always
focused on reaching the customer, the later stages o
streamlining value-chain activities to deliver more value to
the customer.
E-commerce either leverages an Internet-based sales
channel to enhance marketing and sell products or
services, or leverages the Internet to make purchasing
more efficient. E-commerce allows these purchases and
sales transactions to occur with minimal disruption to
organizational culture and business processes.
ERP/E-BUSINESS MATRIX
Figure 1-5 illustrates a new e-business model developed by
PricewaterhouseCoopers.1
In order to make rational decisions about how to deploy
resources in implementing either e-business, ERP, or both,
a company must know both its starting position in the ebusiness panorama and its desired end state, relative to the
various possibilities. To facilitate this, we have designed an
e-business/ERP matrix (Figure 1-6). This matrix has on its
horizontal the five possible places on an e-business
landscape, and on its vertical five possible places on and
ERP landscape.
E-BUSINESS OPTIONS
The five options on the e-business matrix
are:
1. No E-Business capabilities
2. Channel Enhancement
3. Value-Chain Integration
4. Industry Transformation
5. Convergence
No E-Business Capabilities
Although there are fewer every day, some companies still
have not attempted e-business. But given the rate of growth
in the e-business environment, remaining in the no ebusiness stage is not a valid alternative.
Channel Enhancement
Most companies enter e-business with point solutions such
as selling over the Web, providing customer self-service, and
conducting Web-based indirect procurement. Within this
space, companies use Web technology as an enabler. They
modify existing business processes and in some cases
create new processes targeted at improving business
performance. In so doing, they are engaging in e-commerce
the marketing, selling, or buying of products and services
over the Internet.
Value-Chain Integration
As companies master channel enhancement, most
explore opportunities to use e-business to integrate
customers and suppliers operations with their processes
and systems.
In this space, companies strive to use the Internet to
implement e-customer relationship management (eCRM)
and e-supply chain management (eSCM) capabilities. These
allow companies to link their operations seamlessly with
those of customers and suppliers.
On the customer side, companies are creating
personalized Web sites and portals to simplify transacting
business over the Internet and to capture customer
information.
On the supply side, companies are sharing design,
planning, and forecasting information with suppliers to
increase the velocity of bi-directional information flow.
Industry Transformation
Industry leaders push the envelope of e-business
capabilities to transform their strategies, organizations,
processes, and systems to achieve competitive
advantage.
Since the industrial revolution, businesses have used the
same basic model to compete in the marketplace. But ebusiness is creating ways for companies to maximize
shareholder value by completely transforming their
industries.
Convergence
Industry convergence is the coming together of
companies from different industries to provide goods and
services to consumers. Convergence is not solely a
function of e-business or Internet technology; it is equally
a function of business, evolving customer demand, and
new competitive tactics. The Internet enables these
companies to easily partner in developing products and
services geared toward providing customers a one-stop
shop.
ERP OPTIONS
We have defined the five possible ERP spaces for a
company as:
1.Greenfield,
2.nonintegrated systems,
3.limited-single-function ERP,
4.integrated business unit ERP, or
5.integrated enterprise ERP.
Greenfield
A Greenfield company is a new company with no
history of information systems.
Nonintegrated Systems
A company with nonintegrated information systems has no
rapid and meaningful data exchange between its internal
systems that record business events. It may have a
different type of engine for each business unit or corporate
function.
ERP by Function
A company with ERP by function has successfully installed
one or a few major ERP modules (most often the finance,
human resources, and/or manufacturing modules) across all
of its business units.
eProcurement
eProcurement
RFBs on web
Bidding more competitive
Free-market bidding levels playing field
Increased choices
Reduced transaction costs
B2B Hubs
B2B hubs
Spot sourcing of operating inputs
Systematic sourcing of inputs
Bring suppliers of similar or
complementary products together at
one web site
One-stop shopping
eSupply Chain
Facilitates real-time updates across chain
From consumers to suppliers
Greater ability to fill orders
Better understanding of customer needs
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