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Unit 31: E-businessOperations

Session 13

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Learning Outcomes

3-3 Explain how the issues of trust andsecurity apply to supply chainmanagement

3-4 Evaluate use of the internet to improve

efficiency of the supply chain and addvalue for the final customer

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Topics

Review of Last session

Group ReportLecture

Trust and Security Internet Benefit - Evaluation

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Review of Last Session

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Topics Discussed

Web Auction

Marketplaces, SCM, and

networks

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Test of Baseline Knowledge

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Test of Baseline

Knowledge What are Trust and security considerations

in relation to e-business? for scm

What are specific benefits of the internet to: final customer

major manufacturers

retail chains

integration of supply chains;

growth of e-business

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Explain how the issues of trustand security apply to supply

chain management

CRITERIA 3-3

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Trust and Security the value of orders,

delay between ordering and delivery (lead time) and deferredpayment

necessitating high levels of trust between buying and sellingorganisations, especially when the items are strategicallyimportant to the buyer (often these items are specially made andsingle sourced);

their business relationship depends upon secure systems to

process their transactions

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Internet Security computer security specifically related to

the Internet.

Its objective is to establish rules and measures touse against attacks over the Internet.

The Internet represents an insecure channel for

exchanging information

Different methods have been used to protect thetransfer of data, including data encryption.

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Types of Data (Security)

Low Level Data

Mid- Level Data High- Level Data

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Types of Security

Network layer security

IPsec Protocol

Electronic mail security

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Value of Orders/ Sales

Increase in margins,

Increased staff motivation.

Customer satisfaction. Privileged relationships with the

partners.

Value to the company, staff, clients, andpartners.

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Lead time and Deferred Payments

The amount of time between the placingof an order and the receipt of the goodsordered.

A debt which has been incurred (order orservice rendered) and will be paid back atsome point in the future.

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High Level of Trust

Essential for business transactions to takeplace both in the physical and internetworld.

Key factor in determining e-biz success.

Trust = Credibility

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Building Credibility and Trust

Branding -- Name Recognition andReputation

Customer Service

Website Design

Usability

Information Quality and Objectivity Third party verification

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E-business Relationship

refers to the integration, within thecompany, of tools based on informationand communication technologies to

improve their functioning in order tocreate value for the enterprise, its clients,and its partners.

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E-business Relationship

enterprise and its clients,

enterprise-employee relationships,

enterprise with its different partners andsuppliers.

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E-business Relationship diagram

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Secure Systems

collective processes and mechanisms bywhich sensitive and valuable informationand services are protected from

publication, tampering or collapse byunauthorized activities or untrustworthyindividuals and unplanned events

respectively.

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Secure Systems Objective

objective of computer security includesprotection of information and propertyfrom theft, corruption, or natural disaster,

while allowing the information andproperty to remain accessible andproductive to its intended users

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How to install Security

By Design

By Architecture

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Evaluate use of the internet to

improve efficiency of thesupply chain and add valuefor the final customer

Criteria 3-4

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Internet Benefits - Evaluation

using industry networks on the internet allows; benefits that can bepassed on to the final customer ie faster introduction of new products,

more responsive supply chains and lower costs;

the major manufacturers and retail chains compete not as individualorganisations, but as organisations together with their supply chains hence the importance of supply chain management;

the internet is making a major contribution to the integration of

supply chains; the continued growth of this aspect of b2b e-business will make it by

far the most significant application in excess of ten times the value ofb2c e-business

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Final Customer

Faster Delivery of Products

Availability of New Products

Information on products and the market as a

whole readily available Convenience

Enable product comparison

Value added service Easy for customers to request specific

information

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Supply chains

Responsive

Lower costs

Convenience Collaboration

Increase productivity

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Major manufacturers

Increase brand awareness and product line Provide extensive updated information of their product range Low operational cost Increase efficiency Maximum return on investment for any manufacturing business.

Can directly open a dedicated channel to service the end customers Reduces the dependency on retail or channel partners, leading to

costs benefits. Easier to target smaller consumer and niche markets Establishing new opportunities and relationships with potential

customers, business associates Can control who they target and can send out notifications as and

when they want Direct access to his customers and brand patrons, as there are no

middlemen and no mediums.

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Retail Chains

Consumers can order online

Retail chains can display their productsand prices online

Increase profit

Brand awareness

Infinite shelf space available

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B2B continuing Growth

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B2B continuing Growth

Five types of growth have to be managed as thecompany initiative matures:

a growth in the strategy and objectives of the initiatives;

a growth in the structure of the e-commerceimplementation within the organisation; a growth in the types of e-commerce technologies and

applications used; a growth in the focus of the implementation; and a growth in the level of management involved in the

implementation.

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END OF SESSION

See you next meeting