电子商务课件英文

ElectronicManagementSchoolofTJNU

1Chapter1IntroductiontoElectronicCommerceEC2ContentsofChapter1ECElectronicCommerce:TheSecondWave1BusinessModels,RevenueModels,andBusinessProcesses2EconomicForcesandElectronicCommerce3IdentifyingElectronicCommerceopportunities4InternationalNatureofElectronicCommerce53LearningObjectives:Inthischapter,youwilllearnabout:(1)Whatelectroniccommerceisandhowitisexperiencingasecondwaveofgrowthwithanewfocusonprofitability

(2)Whycompaniesnowconcentrateonrevenuemodelsandtheanalysisofbusinessprocessesinsteadofbusinessmodelswhentheyundertakeelectroniccommerceinitiatives(3)Howeconomicforceshavecreatedabusinessenvironmentthatisfosteringthesecondwaveofelectroniccommerce

(4)HowbusinessesusevaluechainsandSWOTanalysistoidentifyelectroniccommerceopportunities

(5)TheinternationalnatureofelectroniccommerceandthechallengesthatariseinengaginginelectroniccommerceonaglobalscaleEC41.1ElectronicCommerce:TheSecondWaveEC5Fromhumblebeginningsinthemid-1990s,electroniccommercegrewrapidlyuntil2000,whenamajordownturnoccurred.Manypeoplehaveseennewsstoriesaboutthe“dot-comboom”followedbythe“dot-comburst”orthe“dot-bomb.”Inthe2000to2003period,manyindustryobserverswerewritingobituaries(讣告)forelectroniccommerce.Justastheunreasonableexpectationsforimmediatesuccessfueledthehighexpectationsduringtheboomyears,overlygloomynewsreportscoloredperceptionsduringthistime.Beginningin2003,withthegeneraleconomystillinthedoldrums,electroniccommercebegantoshowsignsofnewlife.Companiesthathadsurvivedthedownturnwerenotonlyseeinggrowthinsalesagain,butmanyofthemwereshowingprofits.Althoughtherapidexpansionandhighlevelsofinvestmentoftheboomyearsarenotlikelytoberepeated,thesecondwaveofelectroniccommerceiswellunderway.6ContentsElectroniccommerceandElectronicbusiness12ECCategoriesofElectronicCommerce3TheDevelopmentandGrowthofE-Commerce45Thedot-comboom,bust,andrebirthTheSecondWaveofElectronicCommerce7ElectronicCommerce:

TheSecondWave(cont.)1ElectroniccommerceandElectronicbusinessECElectronicbusiness(e-business)-broadersenseTermusedinterchangeablywithe-commerceThetransformationofkeybusinessprocessesthroughtheuseofInternettechnologies（IBM’sdefinition）Electroniccommerce(e-commerce)-narrowersenseshoppingonthepartoftheInternetcalledtheWorldWideWeb(theWeb).alsoincludesmanyotheractivities,suchasbusinessestradingwithotherbusinessesandinternalprocessesthatcompaniesusetosupporttheirbuying,selling,hiring,planning,andotheractivities.BusinessactivitiesconductedusingelectronicdatatransmissionovertheInternetandtheWorldWideWeb.82CategoriesofElectronicCommerceBusiness-to-business(B2B):请看中国新能源网2)Businessprocesses:见ElementofElectronicCommerce3)Business-to-consumer(B2C):请看当当网(B2C)Fivegenerale-commercecategories4)Business-to-government(B2G):请看握奇信安网(B2G)ElectronicCommerce:

TheSecondWave(cont.)EC5)Consumer-to-consumer(C2C):请看淘宝网(C2C)mostcommonlyused9GlossaryActivityataskperformedbyaworkerinthecourseofdoinghisorherjobTransactionAnexchangeofvaluesuchasapurchase,asale,ortheconversionofrawmaterialsintoafinishedproductAtransactionalwayshasoneormoreactivitiesassociatedwithit,butanactivitymightnotberelatedtoatransaction.BusinessprocessesThegroupoflogical,related,andsequentialactivitiesandtransactionsinwhichbusinessesengageEg.Thebusinessprocessofshippinggoodstocustomers:inspectingthegoods,packingthegoods,negotiatingwithafreightcompanytodeliverthegoods,creatingandprintingtheshippingdocuments,loadingthegoodsontothetruck,sendingachecktothefreightcompany.TelecommutingorteleworkEmployeeslogintocompanycomputersthroughtheInternetinsteadoftravelingtotheoffice.10CategoriesofElectronicCommerceThethreecategoriesthataremostcommonlyusedare:ConsumershoppingontheWeb,oftencalledbusiness-to-consumer(orB2C)TransactionsconductedbetweenbusinessesontheWeb,oftencalledbusiness-to-business(orB2B,sometimescallede-procurement)Transactionsandbusinessprocessesinwhichcompanies,governments,andotherorganizationsuseInternettechnologiestosupportsellingandpurchasingactivities11EXAMPLEConsideracompanythatmanufacturesstereospeakers.ThecompanymightsellitsfinishedproducttoconsumersontheWeb(B2C).ItmightalsopurchasethematerialsitusestomakethespeakersfromothercompaniesontheWeb(B2B).Thecompanymustalsoundertakemanyotheractivitiestoconvertthepurchasedmaterialsintospeakers.Theseactivitiesmightinclude:hiringandmanagingthepeoplewhomakethespeakers,rentingorbuyingthefacilitiesinwhichthespeakersaremadeandstored,shippingthespeakers,maintainingaccountingrecords,purchasinginsurance,developingadvertisingcampaigns,designingnewversionsofthespeakers.AnincreasingnumberofthesetransactionsandbusinessprocessescanbedoneontheWeb.Manufacturingprocesses(suchasthefabricationofthespeakers)canbecontrolledusingInternettechnologieswithinthebusiness.121314ClassificationofECbyTransactionsorInteractions（fromTurban）business-to-consumer(B2C):onlinetransactionsaremadebetweenbusinessesandindividualconsumersbusiness-to-business(B2B):businessesmakeonlinetransactionswithotherbusinessese-tailing:onlineretailing,usuallyB2Cconsumer-to-business(C2B):e-commercemodelinwhichindividualsusetheInternettosellproductsorservicestoorganizationsorindividualsseeksellerstobidonproductsorservicestheyneedconsumer-to-consumer(C2C):e-commercemodelinwhichconsumersselldirectlytootherconsumers15ClassificationofECbyTransactionsorInteractions(cont.)mobilecommerce(m-commerce):e-commercetransactionsandactivitiesconductedinawirelessenvironmentintrabusinessEC:e-commercecategorythatincludesallinternalorganizationalactivitiesthatinvolvetheexchangeofgoods,services,orinformationamongvariousunitsandindividualsinanorganizationbusiness-to-employees(B2E):e-commercemodelinwhichanorganizationdeliversservices,information,orproductstoitsindividualemployees16ClassificationofECbyTransactionsorInteractionscollaborativecommerce(c-commerce):e-commercemodelinwhichindividualsorgroupscommunicateorcollaborateonlinee-learning:theonlinedeliveryofinformationforpurposesoftrainingoreducatione-government:e-commercemodelinwhichagovernmententitybuysorprovidesgoods,services,orinformationtobusinessesorindividualcitizens*17ElectronicCommerce:TheSecondWave(cont.)EC3TheDevelopmentandGrowthofElectronicCommerce(1)Electronicfundstransfers(EFTs)(电子资金转账账)AlthoughtheWebhasmadeonlineshoppingpossibleformanybusinessesandindividuals,inabroadersense,electroniccommercehasexistedformanyyears.Formorethan30years,bankshavebeenusingelectronicfundstransfers.AlsocalledwiretransfersElectronictransmissionsofaccountexchangeinformationoverprivatecommunicationsnetworks18(2)Electronicdatainterchange(EDI)(电子数据交换换)Businessesalsohavebeenengaginginatypeofelectroniccommerce,knownaselectronicdatainterchange,formanyyears.Transmittingcomputer-readabledatainastandardformattoanotherbusinessBycreatingasetofstandardformatsfortransmittingthatinformationelectronically,businesseswereabletoreduceerrors,avoidprintingandmailingcosts,andeliminatetheneedtoreenterthedata.ThestandardformatsusedinEDIcontainthesameinformationthatbusinesshavealwaysincludedintheirstandardpaperinvoices,purchaseorders,andshippingdocuments.(cont.)ElectronicCommerce:TheSecondWave(cont.)19Electronicdatainterchange(EDI)TradingpartnersBusinessesthatengageinEDIwitheachotherOneseriousproblemthatpotentialadoptersofEDIfacedwasthehighcostofimplementation.TouseEDI:buyingexpensivecomputerhardwareandsoftware;establishingdirectnetworkconnectionstoalltradingpartnersorsubscribingtoaVAN.Value-addednetwork(VAN)Independentfirmthatoffersconnectionandtransaction-forwardingservicestobuyersandsellersengagedinEDI20ElectronicCommerce:TheSecondWave(cont.)EC4Thedot-comboom,bust,andrebirthBetween1997and2000,morethan12,000internet-relatedbusinesseswerestartedwithmorethan$100billionofinvestors’money(Dot-ComBoom).Morethan5000ofthesecompanieswentoutofbusinessorwereacquiredinthedownturnthatbeganin2000(Dot-ComBust).Between2000and2003:morethan$200billionwasinvestedinpurchasingelectroniccommercebusinessesthatwereintroubleandstartingnewonlineventures.Thissecondwaveoffinancialinvestmenthasnotbeenreportedextensivelyineitherthegeneralorbusinessmedia,butitisfuelingarebirthofgrowthinonlinebusinessactivity(Dot-ComRebirth).21ElectronicCommerce:TheSecondWave(cont.)EC5TheSecondWaveofElectronicCommerceEconomistsChrisFreemanandFranciscoLouçãdescribefourwavesthatoccurredintheIndustrialRevolutionintheirbookAsTimeGoesBy.ManyresearcherspredictthatelectroniccommerceandtheinformationrevolutionbroughtaboutbytheInternetwillgothroughsimilarwaves.Thoseresearchersagreethatthesecondwaveofelectroniccommercehasbegun22TheSecondWaveofElectronicCommerce（continued)Secondwave:GlobalenterprisesinmanycountriesareparticipatinginelectroniccommerceManyECwebsitesavailableinmultiplelanguagesEstablishedcompaniesfundelectroniccommerceinitiativeswiththeirowncapitalRapidlyincreasinguseofbroadbandtechnologiesforinternetconnectionsB2BECincreasinglyareintegratedwithradio-frequencyidentification(RFID)andbiometricdevicestomanageinformationandproductflowseffectivelyUseofmultiplesophisticatedadvertisingapproachesandbetterintegrationofECwithexistingbusinessprocessesandstrategiesNewapproachestothesaleanddistributionofdigitalproductsCustomizede-mailstrategiesarenowintegraltocustomercontactRealizethatfirst-moveradvantageleadstosuccessonlyforsomecompaniesincertainspecificmarketsandindustriesthefirstwave:ExtensiveuseoftheEnglishlanguageManynewcompaniesstartedwithoutsideinvestormoneyManyECparticipantsusedslowinternetconnectionsB2BECreliedonapatchworkofdisparatecommunicationandinventorymanagementtechnologiesUnstructureduseofe-mailOver-relianceonsimpleformsofonlineadvertisingasarevenuesourceWidespreadpiracyduetoineffectivedistributionofdigitalproductsRelyonfirst-moveradvantagetoensuresuccessinalltypesofmarketsandindustries23NotallofthefutureofECisbasedinit’’ssecondwave.Someofthefirstwavecompaniesweresuccessful,suchasA,eBay,andYahoo.ThesecondwaveofECwillprovidenewopportunitiesforthesebusiness.P13TheSecondWaveofElectronicCommerce(continued)*241.2BusinessModels(交易模式式),RevenueModels(盈利模式式),BusinessProcesses(交易流程程)EC25BusinessmodelAsetofprocessesthatcombinetoyieldaprofitAgoodbusinessmodelwasexpectedtoleadtorapidsalesgrowthandmarketdominance.Theideathatthekeytosuccesswassimplytocopythebusinessmodelofasuccessfuldot-combusinessledthewaytomanybusinessfailures,someofthemquitedramatic.HarvardBusinessSchoolprofessorMichaelPorter,arguedthatbusinessmodelsnotonlydidnotmatter,theyprobablydidnotexist.copyingoradaptingsomeoneelse’’sbusinessmodelisneitheraneasynorwiseroadmaptosuccess.Instead,companiesshouldexaminetheelementsoftheirbusiness;thatis,theyshouldidentifybusinessprocessesthattheycanstreamline,enhance,orreplacewithprocessesdrivenbyInternettechnologies.26RevenuemodelRevenuemodelAspecificcollectionofbusinessprocessesusedto:IdentifycustomersMarkettothosecustomersGeneratesalestothosecustomersTherevenuemodelideaishelpfulforclassifyingrevenuegeneratingactivitiesforcommunicationandanalysispurposes.271.2.1RoleofMerchandisingMerchandising（零售推销销）Combinationofstoredesign,layout,andproductdisplayknowledgeInaddition,manysalespeoplehavedevelopedskillsthatallowthemtoidentifycustomerneedsandfindproductsorservicesthatmeetthoseneeds.Theskillsofmerchandisingandpersonalsellingcanbedifficulttopracticeremotely.However,companiesmustbeabletotransfertheirmerchandisingskillstotheWebfortheirWebsitestobesuccessful.SomeproductsareeasiertosellontheInternetthanothersbecausethemerchandisingskillsrelatedtothoseproductsareeasiertotransfertotheWeb.28291.2.2Product/ProcessSuitabilitytoElectronicCommerceCommodityitem（日用品、、商品）HardtodistinguishfromthesameproductsorservicesprovidedbyothersellersIt‘sfeatureshavebecomestandardizedandwellknownGasoline,officesupplies,soap,computers,andairlinetransportationareallexamplesofcommodityproductsorservices,asarethebooksandCDssoldbyA.wellsuitedtoelectroniccommerce30Product/ProcessSuitabilitytoElectronicCommerce(continued)ShippingprofileCollectionofattributesthataffecthoweasilyaproductcanbepackagedanddeliveredHighvalue-to-weightratioCanhelpbymakingoverallshippingcostasmallfractionofthesellingpriceAnairlineticketisanexcellentexampleofanitemthathasahighvalue-to-weightratio.Expensivejewelryhasahighvalue-to-weightratio,butmanypeoplearereluctanttobuyitwithoutexaminingitinpersonunlessthejewelryissoldunderawell-knownbrandnameandwithagenerousreturnpolicy.Aproductthathasastrongbrandidentity—suchasaKodakcamera—iseasiertosellontheWebthananunbrandeditem,becausethebrand’sreputationreducesthebuyer’sconcernsaboutqualitywhenbuyingthatitemsightunseen.Otheritemsthatarewellsuitedtoelectroniccommercearethosethatappealtosmall(销量不大),butgeographicallydispersedgroupsofcustomers.Collectiblecomicbooksareanexampleofthistypeofproduct.31Whenpersonalsellingskillsareafactor,asincommercialrealestatesales,orwhentheconditionoftheproductsisdifficulttodeterminewithoutmakingapersonalinspection,asinpurchasesofhigh-fashionclothing,antiques,orperishablefoodproducts,traditionalcommerceoracombinationoftraditionalcommerce(fortheinspection)andelectroniccommercecanbeabetterwaytoselltheitemsorservices.Acombinationofelectronicandtraditionalcommercestrategiesworksbestwhenthebusinessprocessincludesbothcommodityandpersonalinspectionelements.ManypeoplearefindinginformationontheWebaboutnewandusedautomobiles.Autobytelhashadmuchsuccesshandlingnewcartransactions.PeoplearewillingtotakedeliveryofaparticularmakeandmodelofanewvehicleeveniftheydidnottestdrivethespecificcartheyarepurchasingthroughAutobytel.Fewerpeoplearewillingtobuyausedcarwithoutdrivingthatspecificcarandpersonallyinspectingit.Inthecaseofusedcars,electroniccommerceprovidesagoodwayforbuyerstoobtaininformationaboutavailablemodels,features,reliability,prices,anddealerships;butthevariability（可变变性））intheconditionofusedcarsmakesthetraditionalcommercecomponentofpersonalinspectionakeypartofthetransactionnegotiation.32Alltheadvantagesofelectroniccommerceforbusinessescanbesummarizedinonestatement:ElectroniccommercecanincreasesalesanddecreasecostsIfadvertisingisdonewellontheWeb,itcangetafirm’’spromotionalmessageouttopotentialcustomersineverycountryAfirmcanuseelectroniccommercetoreachsmallgroupsofcustomersthataregeographicallyscattered.TheWebisparticularlyusefulincreatingvirtualcommunitiesthatbecomeidealtargetmarketsforspecifictypesofproductsorservices.virtualcommunityisagatheringofpeoplewhoshareacommoninterest,butinsteadofthisgatheringoccurringinthephysicalworld,ittakesplaceontheInternet.Usinge-commercesalessupportandorder-takingprocesses,abusinesscan:ReducecostsofhandlingsalesinquiriesProvidepricequotesdetermineproductavailability33AdvantagesofE-Commerce（continued)Advantages:Electroniccommerceprovidesbuyerswithawiderrangeofchoicesthantraditionalcommerce.Electroniccommerceprovidesbuyerswithaneasywaytocustomizethelevelofdetailintheinformationtheyobtainaboutaprospectivepurchase.BuyerscanhaveinstantaccesstodetailedinformationontheWeb.Somedigitalproducts,suchassoftware,musicandvideofiles,orimages,canevenbedeliveredthroughtheInternet,whichreducesthetimebuyersmustwaittobeginenjoyingtheirpurchases.Theabilitytodeliverdigitalproductsonlineisnotjustacost-reductionopportunity.Itcanincreasesales,too.Electronicpaymentsoftaxrefunds,publicretirement,andwelfare

supportcostlesstoissueandarrivesecurelyandquicklywhentransmittedovertheInternet.Electronicpaymentscanbeeasiertoauditandmonitorthanpaymentsmadebycheck,providingprotectionagainstfraudandtheftlosses.Electroniccommercecanalsomakeproductsandservicesavailableinremoteareas.341.2.4DisadvantagesofECSomebusinessprocessesmayneverlendthemselvestoelectroniccommerce.PerishablefoodsHigh-cost,uniqueitemssuchascustom-designedjewelry(impossibletoinspectadequatelyfromaremotelocation)35Disadvantages:Return-on-investment

isdifficulttocalculate.Costs,whichareafunction（函数）oftechnology,canchangedramaticallyevenduringshort-livedelectroniccommerceimplementationprojectsbecausetheunderlyingtechnologiesarechangingsorapidly.Manyfirmshavehadtroublerecruitingandretainingemployees

withthetechnological,design,andbusinessprocessskillsneededtocreateaneffectiveelectroniccommercepresence.Difficultyofintegratingexistingdatabasesandtransaction-processingsoftwaredesignedfortraditionalcommerceintothesoftwarethatenableselectroniccommerce.Althoughanumberofcompaniesoffersoftwaredesignandconsultingservicesthatpromisetotieexistingsystemsintonewonlinebusinesssystems,theseservicescanbeexpensive.Manybusinessesfaceculturalandlegalobstaclestoconductingelectroniccommerce.1.2.4DisadvantagesofEC36QuickQuizThegroupoflogical,related,andsequentialactivitiesandtransactionsinwhichbusinessesengageareoftencollectivelyreferredtoas().()occurswhenonebusinesstransmitscomputer-readabledatainastandardformattoanotherbusiness.BusinessesthatengageinEDIwitheachotherarecalled().Thecombinationofstoredesign,layout,andproductdisplayknowledgeiscalled().371.3EconomicForcesandElectronicCommerce38Contents:TheroleofElectronicCommerceNetworkEconomicStructuresTransactionCostsNetworkEffects39EconomicForcesEconomicsisthestudyofhowpeopleallocatescarceresources.2waysofresourcesallocating:Oneimportantwaythatpeopleallocateresourcesisthroughcommercetheothermajorwayisthroughgovernmentactions,suchastaxesorsubsidiesManyeconomistsareinterestedinhowpeopleorganizetheircommerceactivities.OnewaypeopledothisistoparticipateinmarketsTwoconditionsofamarket:PotentialsellersofagoodcomeintocontactwithpotentialbuyersAmediumofexchangeisavailable(currencyorbarter).40Mosteconomistsagreethatmarketsarestrongandeffectivemechanismsforallocatingscarceresources.Thus,onewouldexpectmostbusinesstransactionstooccurwithinmarkets.However,muchbusinessactivitytodayoccurswithinlargehierarchicalbusinessorganizations,whicheconomistsgenerallyrefertoasfirms,orcompanies.Theselargefirmsoftenconductmanydifferentbusinessactivitiesentirelywithintheorganizationalstructureofthefirmandparticipateinmarketsonlyforpurchasingrawmaterialsandsellingfinishedproducts.EconomicForces41Ifmarketsareindeedhighlyeffectivemechanismsforallocatingscarceresources,theselargecorporationsshouldparticipateinmarketsateverystageoftheirproductionandvalue-generationprocesses.Nobellaureate（戴桂冠的人人）RonaldCoasewroteanessayin1937inwhichhequestionedwhyindividualswhoengagedincommerceoftencreatedfirmstoorganizetheiractivities.Hewasparticularlyinterestedinthehierarchicalstructureofthesebusinessorganizations.Coaseconcludedthattransactioncostswerethemainmotivationformovingeconomicactivityfrommarketstohierarchicallystructuredfirms.EconomicForces421.3.1TransactionCostsTransactioncostsarethetotalcoststhatabuyerandsellerincurastheygatherinformationandnegotiateapurchase-saletransaction.Significantcomponentsoftransactioncosts:CostofinformationsearchandacquisitionbrokeragefeesandsalescommissionsInvestmentofthesellerinequipmentorinthehiringofskilledemployeestosupplyproductsorservicestothebuyer43Howtransactioncostsoccurinmarkets?44MarketsandHierarchiesThepracticeofanexistingfirmreplacingoneormoreofitssuppliermarketswithitsownhierarchicalstructureforcreatingthesuppliedproductiscalledverticalintegration(垂直统一管理理).45MarketsandHierarchiesOliverWilliamson:Industrieswithcomplexmanufacturingandassemblyoperationstendedtoincludemanyfirmsthatusedhierarchicalstructuresandthatweresubstantiallyverticallyintegrated.Manyofthemanufacturingandadministrativeinnovationsthatoccurredinbusinessesduringthe20thcenturyincreasedtheefficiencyandeffectivenessofhierarchicalmonitoringactivities.Assemblylinesandothermassproductiontechnologiesallowedworktobebrokendownintosmall,easilysupervisedprocedures.Theadventofcomputersbroughttremendousincreasesintheabilityofupper-levelmanagerstomonitorandcontrolthedetailedactivitiesoftheirsubordinates.46MarketsandHierarchiesDuringtheyearsfromtheIndustrialRevolutionthroughthepresent,thesizeandlevelofverticalintegrationoffirmshaveincreased.Insomeverylargeorganizations,however,monitoringsystemshavenotkeptpacewiththeorganization’sincreaseinsize.Thishascreatedproblemsbecausetheeconomicviability（生存能力））ofafirmdependsonitsabilitytotrackoperationalactivitieseffectivelyatthelowestlevelsofthefirm.Thesefirmshaveinstituteddecentralizationprogramsthatallowbusinessunitstofunctionasseparateorganizations,negotiatingtransactionswithotherbusinessunitsasiftheywereoperatinginamarketratherthanaspartofthesamefirm.47MarketsandHierarchiesAstrategicbusinessunit,orsimplybusinessunit,isoneparticularcombinationofproduct,distributionchannel,andcustomertype.Exceptionstothegeneraltrendtowardhierarchiesdoexist.Manycommodities,suchaswheat,sugar,andcrudeoil,arestilltradedinmarkets.Thecommoditynatureoftheproductstradedinthesemarketssignificantlyreducestransactioncosts.Therearealargenumberofpotentialbuyersforanagriculturalcommoditysuchaswheat,andthefarmerdoesnotmakeanyspecialinvestmentincustomizingormodifyingtheproductforaparticularcustomer.Thus,neitherbuyersnorsellersincommoditymarketsexperiencesignificanttransactioncosts.481.3.2UsingElectronicCommercetoReduceTransactionCostsBusinessesandindividualscanuseelectroniccommercetoreducetransactioncostsby:ImprovingtheflowofinformationIncreasingcoordinationofactionsReducingthecostofsearchingforpotentialbuyersandsellersincreasingthenumberofpotentialmarketparticipants49UsingElectronicCommercetoReduceTransactionCostsConsideranemploymenttransaction.Theemployee’stransactioncostsincludeacommitmenttoforegootheremploymentandcareerdevelopmentopportunities.Individualsmakeahighinvestmentinlearningandadaptingtothecultureoftheiremployers.Ifacceptingthejobinvolvesamove,theemployeecanincurveryhighcosts,includingactualcostsofthemoveandrelatedcosts,suchasthelossofaspouse’’sjob.Muchoftheemployee’’sinvestmentisspecifictoaparticularjobandlocation;theemployeecannottransfertheinvestmenttoanewjob.Ifasufficientnumberofemployeesthroughouttheworldcantelecommute,thenmanyofthesetransactioncostscouldbereducedoreliminated.Insteadofuprootingaspouseandfamilytomove,aworkercouldacceptanewjobbysimplyloggingontoadifferentcompanyserver!501.3.3NetworkEconomicStructuresNetworkeconomicstructuresNeitheramarketnorahierarchyCompaniescoordinatetheirstrategies,resources,andskillsetsbyforminglong-term,stablerelationshipswithothercompaniesandindividualsbasedonsharedpurposesStrategicalliances(strategicpartnerships)Relationshipscreatedwithinthenetworkeconomicstructure51NetworkEconomicStructures(continued)VirtualcompaniesStrategicalliancesthatoccurbetweenoramongcompaniesoperatingontheInternetStrategicpartnersEntitiesthatcometogetherasateamforaspecificprojectoractivity52NetworkEconomicStructures(continued)Networkorganizationsareparticularlywellsuitedtotechnologyindustriesthatareinformationintensive.Electroniccommercecanmakesuchnetworks,whichrelyextensivelyoninformationsharing,mucheasiertoconstructandmaintain.531.3.4NetworkEffectsLawofdiminishingreturnsMostactivitiesyieldlessvalueastheamountofconsumptionincreasesExample：hamburgerconsumerNetworkeffectAsmorepeopleororganizationsparticipateinanetwork,thevalueofthenetworktoeachparticipantincreasesExample：faxmachineusersUsingElectronicCommercetoCreateNetworkEffectsInternete-mailaccountsarefarmorevaluablethansingle-organizatione-mailaccountsbecauseofthenetworkeffect.*541.4IdentifyingElectronicCommerceopportunitiesEC55IdentifyingElectronicCommerceopportunitiesInternettechnologiescanbeusedtoimprovesomanybusinessprocessesthatitcanbedifficultformanagerstodecidewhereandhowtousethem.Onewaytofocusonspecificbusinessprocessesascandidatesforelectroniccommerceistobreakthebusinessdownintoaseriesofvalue-addingactivitiesthatcombinetogenerateprofitsandmeetothergoalsofthefirm.FirmMultiplebusinessunitsownedbyacommonsetofshareholdersIndustryMultiplefirmsthatsellsimilarproductstosimilarcustomers56Inhis1985book,CompetitiveAdvantage,MichaelPorterintroducedtheideaofvaluechains.ValuechainAwayoforganizingtheactivitiesthateachstrategicbusinessunitundertakesPrimaryactivitiesinclude:Designing,producing,promoting,marketing,delivering,andsupportingtheproductsorservicesitsellsSupportingactivitiesinclude:Humanresourcemanagementandfinancing5758Valuesystem——PorterLargerstreamofactivitiesintowhichaparticularbusinessunit’svaluechainisembeddedAlsoreferredtoasindustryvaluechain——subsequentresearchersandbusinessconsultantsP295960IndustryValueChainsAstheyexaminetheirindustryvaluechains,manymanagersarefindingthattheycanuseelectroniccommerceandInternettechnologiestoreducecosts,improveproductquality,reachnewcustomersorsuppliers,andcreatenewwaysofsellingexistingproducts.Byexaminingelementsofthevaluechainoutsidetheindividualbusinessunit,managerscanidentifyman