Forschungsprojekt ECOMODForschungsgruppe Unternehmensmodellierung

Referenzgeschäftsprozesse und Strategien im E-Commerce

Focus on Sales (Sal)


ID: Sal_1
Description
Throughout the value chain cooperation is an important approach for taking advantage of economies of scales and for better focusing on the core business. The Internet supports new economic ways of cooperation with value chain partners as well as suppliers of complementary products. For cooperating with value chain partners over the Internet two consecutive steps can be distinguished: the first step is fundamental and involves coordinating and optimizing processes across the companies' value chains. The second step involves automation of these processes, which requires the additional integration of relevant business information systems and the implementation of an integrated process management and control.
Derived strategies:
Virtual enterprise
Strategic Options:

ID: Sal_1.1
Description
Two cooperating companies can take advantage of mutually exchanging customer data allowing customer profiles to be completed and purchasing offers to be more targeted.
Necessary investments
It is required to agree on a specific standard or a mutual data model for storing customer information. Adequate interfaces have to be implemented allowing to electronically exchange customer data. Furthermore, usage and passing on of personal data has to be coordinated in terms of privacy.
Opportunities
More complete information about customers can be gathered and new cross-selling opportunities can be taken advantage of.
Risks
Data quality might deteriorate if customer data maintenance is distributed.
Critical success factors
Privacy :
Privacy of customer data has to be guaranteed although it is exchanged and in this way passed on to third parties. Customers of both companies have to agree to this way of dealing with their personal data (e.g. by agreeing the general terms and conditions)
Related strategic option:
Affected processes:

ID: Sal_1.2
Description
Sharing load with competitors can be advantageous, if sales volumes are of high variability and your resources are in certain time periods used to full capacity. Distributing orders to another company however, requires to coordinate central business processes and to hide passing on of orders from customers.
Necessary investments
For coordinating relevant processes it is necessary to initially analyse business processes of both companies. To further reduce costs of coordination the cooperation partners should agree on standardized formats for electronically exchanging data and they need to agree on mechanism for secure data transfer. Since passing on of orders to third parties should be hidden from customers, it is necessary to agree on certain quality standards and to integrate information systems of both parties in order to enable updated information on order status to be available to customers.
Opportunities
Keeping an established clientele through reliable order processing in spite of variable load.
Risks
There is the risk of processes of the cooperating partner being more or less out the sellers control (e.g. with respect to delivery times and quality); this can lead to an inconsistent appearance towards his customers. When cooperating with competitors, it is particularly important to preserve your current competitive advantages and differentiation characteristics. Sharing load with competitors can be an immensely complex enterprise, whose risks cannot be fully determined.
Critical success factors
Keeping differentiation characteristics :
For sustained competitive advantages it is of utmost importance, not to level former differentiation characteristics through cooperation with competitors.
Exchange standards :
In order to allow the integration and communication of application systems of different companies it is crucial to agree on appropriate standards.
Affected processes:

ID: Sal_1.3
Description
Mutual exchange of goods or services (cross linking) in an industry allows to further concentrate on the core business. At the same time costs are reduced through procuring goods or services from specialized providers.
Necessary investments
To enable close cooperation and reduced transaction costs it is necessary to coordinate relevant business processes and agree on standards for electronically exchanging business documents. Appropriate interfaces have to be implemented allowing the business application systems to exchange the relevant information.
Opportunities
Cross linking with other companies enables a company to better concentrate on its core business and to reduce costs through goods or service procurement from specialists.
Risks
There is the risk of processes of the cooperating partner being more or less out the sellers control (e.g. with respect to delivery times and quality); this can lead to an inconsistent appearance towards his customers.
Critical success factors
Exchange standards :
In order to allow the integration and communication of application systems of different companies it is crucial to agree on appropriate standards.
Similar strategic option:


ID: Sal_2
Description
Many industries have been affected by structural changes due to the Internet allowing companies cost-effective and immediate access to their end-consumers but also due to new options of cost-effective cooperation with other companies along the value chain. Here, we will look at strategic options concerning elimination of intermediaries, outsourcing and splitting of services in terms of rearranging entire value chains.
Strategic Options:

ID: Sal_2.1
Description
Outsourcing of certain (non-core) business functions allows to further concentrate on the core business. At the same time costs are reduced through procuring goods or services from specialized providers.
Necessary investments
To enable close cooperation and reduced transaction costs it is necessary to coordinate relevant business processes and agree on standards for electronically exchanging business documents. Appropriate interfaces have to be implemented allowing the business application systems to exchange the relevant information.
Opportunities
Outsourcing non-core functions enables a company to better concentrate on its core business and to reduce costs through goods or service procurement from specialists.
Risks
There is the risk of processes of the cooperating partner being more or less out the sellers control (e.g. with respect to delivery times and quality); this can lead to an inconsistent appearance towards his customers.
Critical success factors
Exchange standards :
In order to allow the integration and communication of application systems of different companies it is crucial to agree on appropriate standards.
Similar strategic option:

ID: Sal_2.2
Description
Structural change might lead to services, formerly provided by other intermediaries, now being provided by specialised companies. In this way services along the supply chain are split and rearranged forming new levels in the supply chain. A structural change in the car industry might lead to car repairs or test drives being offered by new, specialized companies.


ID: Sal_3
Description
When using the Internet sales costs can be reduced significantly through more efficient and automated processes. For every stage of customer interaction the Internet offers new potentials for rationalization. Here, process efficiency can be improved in particular through more standardization and coordination of business processes.
Derived strategies:
Simplification / Standardization
Strategic Options:
Reduce costs of initiation
Strategic Options:
Reduce costs of selection
Strategic Options:
Reduce costs of outbound logistics
Strategic Options:
Reduce costs of contracting
Strategic Options:
Reduce costs of payment
Strategic Options:

ID: Sal_3.1
Description
Processes can be simplified through principally not considering specific requirements of single customers, i.e. by highly standardizing products and services offered. Such standardization supports automated decision making.
Affected processes: