E-business Operations

Case study 1
1.1. Describe the purchasing process used in Cooksons and Mondus. As the operation of the two companies are different, so the purchase process is also differs from each others. Firstly, Cooksons start selling their product to consumer over the internet to strengthen their business. Here the purchasing process is of some stages, which to be completed one after another. A consumer search information of their desired product in the Cooksons website; after having a number of alternative, consumers compare and evaluate the alternatives; and finally take purchase decision by giving credit card information, input of desired product data etc. the payment is received in any types of Electronic Fund Transfer. The purchase process for a B2B business like Mondus is a bit lengthy and more sensitive than that of Cooksons. The customers of Mondus, firstly recognize their need or problems, then they search the suppliers in the list of suppliers in the Mondus website, then they contact with the suppliers via Mondust and, compare and evaluate the quotations to give purchase order. Then the suppliers deliver the product and the customer (a business) receive invoice and approve payment after the quality check. In the B2B business, the transaction is of very high amount compare to B2C business. 1.2. Explain how the use of professional buyers as in mondus affects the buying process. Mondus allows its customer (different SMEs) to have more than one quote for decision making. If professional buyers are included in the buying process, then the process will be affected positively and in the favour of Mondus. A professioinal buyer influences the buying process by investing large amount of money and by engaging high proportion of business cost. For these two reasons, the delivery dates, terms and conditions, price and payment etc are determined and settled in effective negations. So professional buyers differentiate and standardize the traditional buying process as explained earlier. 1.3. Analyze the variables in purchasing based on Mondus facilitation of trade among SMEs. There a number of variables in purchasing. These variables include the products to be purchased, response time, variety and range of items, risk and potential risk etc. Mondus has been facilitating the trade among the SMEs by favorable terms and conditions for purchasing. They have some unique proposition to other B2B companies to influence the variables of purchasing. Such as they allows their customers to get multiple quotations, so the customers will have low lead time, large variety of quotation and items. Apart from that, the SMEs, customers of Mondus can get access to outer geography to search and negotiate with suppliers.

E-business Operations

Case study 2
2.1. Explain how EDI has reduced paperwork and delay Electronic data interchange and its associated technologies replace information flows by making it digital instead of paper based communication. Now in different business operation, such as invoicing, filing and all sorts of documentation can be done by using EDI technologies. Reduction of paper usage resulted quick response and action in business communication. Because, paper based communication need much time than a communication over internet or network as used in an EDI system. It is possible because EDI allows storing and manipulating data electronically. 2.2. Examine how EDI has developed and laid the foundations for B2B e-business EDI is meant as a structured system or set of technologies for exchanging data between organization by electronic means. In a B2B e-business, the operations of the business largely depends on use of private networks and Electronic Data Interchange (EDI). Such as the use of the Internet for searching product catalogues, ordering from suppliers, receiving invoices and making electronic payments. So these basic business activities are improved by using EDI. So the foundation of B2B e-business in terms of the basic activities, is accomplished by EDI. 2.3. There are wonderful new processes and technologies to work collaborately where traditional EDI has to work well in the past; evaluate the use of different electronic payment systems Electronic payment system is very important part of an EDI. There are a number of criteria to evaluate the use of different electronic systems. These may include privacy, authenticity, integrity, transaction cost, user range, financial risk, acceptability, convenience, mobility etc. in the recent days, payment service provider like PayPal, Worldpay; Electronic Bill Presentment and Payment (EBPP) doing well in terms of the earlier mentioned criteria. Apart from these, mobile payment, digital wallet, smart card etc are used for a long time with success in this field.

E-business Operations

Case study 3
3.1. Create a diagram illustrating the Supply Chain relationship between Elcoteq and Nokia, based on Pull and Push Strategy In the following figure, the concept of push and pull strategy is illustrated. Then the supply chain relationship between Elcoteq and Nokia, based on Pull and Push Strategy is discussed using another diagram.

Nokia
Elcoteq

Nokia

Figure 1: Concept of Pull and Push Strategy As shown in the above diagram, Elecoteq may use pull strategy by using promotional activities so Nokias customer will demand more which resulted Nokia (Retailer) to come to Elcoteq, (the

manufacturer or service provider ). In the push strategy, Nokia is persuaded by Elocoteq to stock their product for the potential customer, this happened when demand of the product is low.

3.2. What are the advantages of E-procurement? By establishing an e-procurement system, an organization can have several advantages. Such as Reducing costs of procurement by reducing errors and by increasing efficiency E-procurement allows to track all activities so it is possible see every single action of the business operation and it will be easier to control the business from a central point. Higher Productivity Improved Controls in the procurement process Usage of technology and having the opportunity to be update for the betterment of the business.

E-business Operations 3.3. Analyze the information flow in a typical logistical operation In a typical logistical operation, there are some common components and the information flowed in the different direction among the components. In the following figure, a typical logistical system is showing.

Figure 2: Overview of Logistics System (source: BTRE, 2001) Logistics information system and logistics infrastructure and resources are the core component of a typical logistics system. These two sections exchanged different types of information about consumer, services, distributions, production, inputs and outputs of the business. 3.4. List the benefits of electronic processes in integration of Supply Chain management. When different types of electronic processes integrated in a supply chain management, then there will be a bunch of benefits. This include the following Electronic process can improve productivity which lead to volume discounts, automation of transactions, reduction in overheads cost resulted from using effective electronic process, improve manufacturing cycles,

E-business Operations overall cost reduction can be possible, by lowering transaction costs, overhead costs just-in-time deliveries increased efficiencies, responsive supply chains can be implemented to reflect the supply situation

Case study 4
4.1. Explain the issue of trust and security that would exists between the open plan customers and Woolwich. the motive of introducing Open Plan current account is to facilitate customer by adding new ways to getting their money. Here the issue of trust and security is well maintained for the customers and Wolwich both. By enabling transaction over the internet, mobile phone, an open plan customer can get their money. They will have a single monthly statement instead of going to branch or having so many documentation processes. This will increase the trust of the customer. The security can be ensured by using cryptology and digital signature. Apart from the customer point of view, Wolwich can also ensure its financial security, as this new system will give them a comprehensive view of customer to monitor them. 4.2. Based on the above case study evaluate the use of internet as a means of communication between Wolwich and its open plan customers Internet becomes an very important means of communication in the financial services. In this case, Woolwich able to reduce its response time, improve service quality and win the customer trust by adding internet as a communication means. This company has some benefits also from the communication over internet. It allows having instant view on the open plan customer, which helps Wolwich to make decision and tracking its customer for security of financial services. 4.3. Assess the extent to which the quality of service delivered by Woolwich to its open plan customers would impact on the expected take-up rate of 1 billion by the end of the year In terms of trust and security, the extent of quality service is very acceptable, but it should be improved to take up rate of 1 billion by the end of the year. The security issues may come first as it is financial service. if the security measure is cared well, then trust and quality come altogether. Besides, skills of employees affect quality of service and may have great impact on the take up rate.

E-business Operations 4.4. Carry out a review of and list the development of the internet technologies on the B2B industry networks and B2C markets. To serve the customers and ensure growth of business, internet technologies are playing an important role in B2B industry networks and B2C markets. In the following section a review and list of the development of internet technologies are discussed Developing online communities in the internet Massive use of extranet and intranet for business and customer virtual interaction Use of cloud computing Utilizing social networking site for more collaboration and network Introduction of digital supply chain

References BTRE (2001) Logistics in Australia: A Preliminary Analysis. Bureau of Transport and Regional Economics, Canberra, <http://www.btre.gov.au/docs/wp49_contents.htm>. Marketing made simple (2011) push and pull strategy. Retrieved from http://www.marketingmade-simple.com/articles/push-pull-strategy.htm#ixzz1itrVoOFQ purchasing procurement centre (2011) advantages of e-procurement. Retrieved from http://www.purchasing-procurement-center.com/e-procurement-advantages.html