It Supports Organizational Performance in Turbulent Business Environments

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or palmtop computer.

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D. Minimol Job - AOU Chapter 1 14

Example

Old

New

Buying and selling textbook

Visit the bookstore

Visit web site for publishers and retailers

Registering for classes

Walk around campus to Departments, Registrar’s office, etc.

Access campus web site

Photography

Buy film, use camera, take picture, take it for processing

Use digital camera

Paying for Gasoline

Fill up your car, go inside, pay cash or credit card

Use speed pass token; wave over the sensor and go

Paying for Transportation

Pay cash, metal tokens

Metro cards electronic cards

Paying for goods

Visit store, select item, pay, go

Use self-service kiosks

Supplying commercial photos

Use newspapers, paper, catalog, or online

Use hub-like supply chain with digitized picture

D. Minimol Job - AOU Chapter 1 15

 More examples are given in page # 7,8 and 9 to show the difference between old and new economy.

D. Minimol Job - AOU Chapter 1 16

 E-Business: The use of electronic technologies to transact business

 Use of web based systems to support buying, selling, collaboration and customer service are examples of e- commerce.

 EC is becoming a very significant global economic element in the twenty first century.

 The infrastructure for digital organizations and EC is networked computing.

D. Minimol Job - AOU Chapter 1 17

Jacobi medical center in New york tracks the whereabouts of patients in the hospital.

◦ Each patient has an RFID (Radio frequency identification) in a plastic band strapped to his/her wrist.

◦ Each time a patient passes an RFID reader, his/her location is transmitted in real time to the responsible staff.

◦ The RFID is linked to the hospital’s computer network, connecting the patient’s records to labs, billing and the pharmacy.

D. Minimol Job - AOU Chapter 1 18

A business model is a method of doing business by which a company can generate revenue to sustain itself. The model spells out how the company adds value to create a product or service. (Value Chain)

◦ Nokia makes and sells cell phones

◦ A TV station provides free broadcasting. Its survival depends on

a complex model involving advertisers and content providers

◦ Internet portals, such as Yahoo, also use a complex business model.

D. Minimol Job - AOU Chapter 1 19

 Name-Your-Own Price

 Reverse Auctions

 Affiliate Marketing

 E-Marketplaces and Exchanges

 Electronic aggregation (buying groups)

D. Minimol Job - AOU

Chapter 1 20

Tendering via reverse auctions

 If you are a big buyer, private or public, you are probably using a tendering (bidding) system to make your major purchases. In what is called a request for quote (RFQ), the buyer indicates a desire to receive bids on a particular item, and would-be sellers bid on the job. The lowest bid wins, if price is only the consideration, hence the name reverse auction. Now tendering can be done online, saving time and money.

D. Minimol Job - AOU Chapter 1 21

Affiliate marketing

 is an arrangement in which marketing partners place a banner ad for a company, such as amazon.com, on their website. Every time a customer clicks on the banner, moves to the advertiser’s web site, and makes a purchase there , the advertiser pays a 3-15 % commission to the host site. In this way, businesses can turn other businesses into their virtual commissioned sales force.

D. Minimol Job - AOU Chapter 1 22

Group purchasing

 It is customary to pay less per unit when buying more units. Discounts are usually available for such quantity purchases. Using e- commerce and the concept of group purchasing , in which purchase orders of many buyers are aggregated can, a small business or even or an individual can participate and get a discount. EC brings in the concept of electronic aggregation for group purchasing, in which a third party finds the individuals or SMEs that want to buy the same product, aggregates their small orders, and then negotiates for the best deal. The more that join the group, the larger the aggregated quantity, and the lower the price paid.

D. Minimol Job - AOU Chapter 1 23

E-marketplaces and Exchanges

 Electronic market places have existed in isolated applications for decades. An example is the stock exchanges, some of which have been fully computerized since the 1980s. But in 1999, thousands of electronic market places of different varieties have come up. E-market places introduce operating efficiencies to trading, and if well organized and managed, they can provide benefits to both buyers and sellers.

D. Minimol Job - AOU Chapter 1 24

 Information technology refers to the technical (as opposed