ECOMPETENCE

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CHAPTER 4

• E-COMPETENCE

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SESSION OBJECTIVES

• COMPETENCE AND PERFORMANCE
• STRATEGIC COMPETENCE
• ORGANISATIONAL COMPETENCE
• INFORMATION SYSTEMS

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• GERALD CORE COMPETENCIES
• IMBUED IN EXPOSSIBLE DIFFICULT TO DUPLICATE
• WHAT COMPANY DOES BETTER THAN COMPETITION
• EMBEDDED INTO COMPANY OPERATIONS
• LIMITED TO KEY SUPPLY CHAIN ROLE
• SOURCE OF UNIQUE CUSTOMER VALUE
• FLEXIBLE
• BASIS FOR DEFINING MARKET OPPORTUNITIES

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WAL-MART COMPETENCE

• FOCUS FROM START ON INVENTORY MANAGEMENT
• JUST IN TIME ORIENTATION
• CROSS DOCKING FROM GOODS INWARDS TO GOODS
  OUTWARDS
• ACHIEVES 3 COST ADVANTAGE OVER COMPETITION
• EVOLVED EDI SYSTEM USING SATELLITE
• PARTNERSHIP WITH PROCTER GAMBLE

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CLEAR E-MARKET OPPORTUNITY
STRATEGIC E-MARKET COMPETENCIES
APPROPRIATE E-MARKET POSITIONING
FORMAL PLAN TO EXPLOIT E-MARKET OPPORTUNITY
FINANCIAL RESOURCE COMPETENCIES
FINANCIAL RESOURCES TO SUPPORT E-MARKET OPERATION
QUALITY TO MEET EXPECTATIONS OF E-MARKET CUSTOMERS
WORKFORCE WITH APPROPRIATE E-MARKET SKILLS
INNOVATIVE E-MARKET PRODUCTS AND SERVICES
E-MARKET OPERATIONAL COMPETENCIES
FIGURE 41 A QUALITATIVE MODEL OF COMPETENCIES
TO SUPPORT AND DELIVER
AN E-COMMERCE MARKETING
STRATEGY
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• STRATEGIC COMPETENCE DEFINES HOW MARKET EXPLOITED
  BY INTERNAL CAPABILITIES
• GOSH 4 OPPORTUNITIES
• DIRECT LINK WITH CUSTOMERS (E.G. STAPLES ON-LINE)
• USE TECHNOLOGY TO BYPASS OTHERS (AMAZON.COM)
• DEVELOP AND DELIVER NEW PRODUCTS OR SERVICES
  (CHARLES SCHWAB)
• BECOME DOMINANT PLAYER IN SPECIFIC CHANNEL (DELL
  COMPUTERS)

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• NEED LEADER WITH STRATEGIC VISION
• BILL GATES (MICROSOFT)
• LEWIS PLATT (HEWLETT PACKARD)
• ANDY GROVE (INTEL)
• JERRY WANG (YAHOO)
• LOUIS GERSTNER (IBM)
• NEED TO FINANCE
• HARDWARE / SOFTWARE SYSTEMS
• UP-DATE WEB-SITE FREQUENTLY
• INTEGRATION WITH INTERNAL INFORMATION SYSTEMS
• PROMOTION TO BUILD AWARENESS / VISITS

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• INNOVATION TO CONTINUALLY UP-DATE AND STAY AHEAD
  OF COMPETITION
• IBM 25 OF TOTAL RD BUDGET
• WORKFORCE TO SUPPORT TECHNICAL RELIABILITY AND
  QUALITY OF SERVICE
• MAY NEED NEW ENVIRONMENT TO CREATE SATISFACTION
  FOR TECHIES

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• QUALITY ISSUES ARE SAME AS TERRESTRIAL FIRMS
• ORDER FULFILMENT, RESOLVING QUESTIONS, SHIPMENT
  ACCURACY, HANDLING RETURNS
• ON-LINE CUSTOMERS INEXPERIENCE INCREASING ERRORS
• WEB-SITES INVOLVING LIVE RESPONSE OFTEN BY
  SUB-CONTRACTING TO OTHER PROVIDER

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• PRODUCTIVITY IN RELATION TO CUSTOMER INTERFACE
  AND LOGISTICS
• DELL COMPUTING EXEMPLAR ORDER SYSTEM MULTITUDE OF
  ON-LINE TOOLS FOR ANSWERING QUESTIONS AND
  PERSONALISED CONFIGURATION OF COMPUTER
• INFORMATION SYSTEM INTEGRATED INTO EXISTING
  SYSTEMS
• NOT OVERNIGHT ACHIEVEMENT, OFTEN BUILT ON YEARS
  OF I.T. INVESTMENT

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• MARSHALL INDUSTRIES DISTRIBUTOR OF COMPONENTS
• NEW VISION OF FREE, PERFECT, NOW
• FLATTENING AND RESTRUCTURING
• I.T. DEVELOPMENT BASED ON COMMERCIALLY AVAILABLE
  HARDWARE / SOFTWARE
• INTRANET DOCUMENTATION SYSTEM

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• ON-LINE ORDER SYSTEM USING EDI
• MOVED ONTO INTERNET
• 24 HOUR ON-LINE ACCESS TO MARSHALL ENGINEERS
• TRAINING SYSTEMS AND BROADCAST STATION

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MARKETING STYLE

• TRANSACTIONAL VERSUS RELATIONSHIP ORIENTATION
• ISSUE OF LONG TERM LOYALTY IN PLACE OF EMPHASIS
  ON TRANSACTIONS
• OTHER ISSUE OF CUSTOMER REQUIRING STANDARD GOODS
  VERSUS INNOVATIVE GOODS

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Transactional
Relationship
Entrepreneurial-transactional e-commerce need
Entrepreneurial-relationship e-commerce need
High Low
Customer Innovation Need
Conservative-transactional e-commerce need
Conservative-relationship e-commerce need
Purchase Orientation Need of Customers
FIGURE 42 AN ALTERNATIVE CUSTOMER E-COMMERCE
MARKET NEED MATRIX