Management and Innovation of E-Business

Flashcards for review

Business-to-business (B2B) e-business

Involves the sale of goods and services between businesses.

B2B e-commerce

Websites such as alibaba.com.

Upstream supply chain

Refers to transactions between an organisation and its suppliers and intermediaries, equivalent to buy-side e-commerce.

Downstream supply chain

Refers to transactions between an organization and its customers and intermediaries, equivalent to sell-side e-commerce.

Business process outsourcing (BPO)

A subset of outsourcing that involves the contracting of the operations and responsibilities of specific business functions (or processes) to a third-party service provider.

Supplier oriented market

The suppliers of the goods invest in ICT to create new business opportunities. Such marketplaces are associated with large powerful suppliers like Dell.

Buyer oriented market

Buyers invest in ICT to create a procurement platform which makes it easier for potential suppliers to provide what the firm needs.

Intermediary oriented market

A third party invests in ICT to create a neutral marketplace where buyers and sellers can trade.

Bullwhip effect

Arises when businesses, particularly retailers, overestimate customer demand for products that are highly dependent, for instance, on fashion or weather. Higher variability in orders from retailer to manufacturer than actual sales

Efficient supply chains

Also known as ‘lean’ supply chains, where both supply and demand uncertainty are low, and thus the member firms can focus on reducing costs and increasing efficiency.

Responsive supply chains

Where demand uncertainty is the main problem and hence the supply chain needs to be very flexible in responding to sudden changes in demand.

Agile supply chains

Where both supply and demand are uncertain and where the supply chain needs to be both responsive and risk-hedging.

Vertical integration

The extent to which supply chain activities are undertaken and controlled within the organisation

Virtual integration

The majority of supply chain activities are undertaken and controlled outside the organisation by third parties

Value Networks

Refers to the relationship between a company and its external partners for the execution of the company’s core activities and support processes.

Virtual organization

An organisation which uses information and communications technology to allow it to operate without clearly defined physical boundaries between different functions.

Electronic data interchange (EDI)

The electronic interchange of formatted data between computer applications, using agreed message standards; a system which preceded web-based electronic business.

Vendor-managed inventory (VMI)

This close collaboration, facilitated by SCM technology (usually EDI), involves the buyer (typically a retailer) handing over the responsibilities of managing its inventory (including when to order and how much to order) to the supplier.

E-procurement

The electronic integration and management of all procurement activities including purchase request, authorisation, ordering, delivery and payment between a purchaser and supplier

Push Model

Manufacturers developing products, which they then try to market.

Pull models

Focus instead on what customers need, incorporating their requirements into product development and distribution.

Third party logistics (3PL)

The outsourcing of part of all of the logistics activities by a company that used to perform such activities in-house.

Make-to-order(MTO)

Indicates the manufacturing of component and parts along with assembly.

Build-to-order(BTO)

Includes mostly assembly operation, where the component and parts outsourced.