Chapter 2 Summary

New concepts for me:

Business Process:
a collection activities that produce a product or a service to the organization.

Business Process Reengineering (BPR):
Change of business process to become efficient and effectiveness.


Business Process management (BPM):
The technique or method that support the design, analyze, management and optimization of E-process.


Business Pressures:
The business environment is the combination of social, legal, economic, physical, and political factors that affect business activities.

There are three types of Business Pressures:   

 market pressures:
Change business from local to global/ sell and sold.
Include: The Global Economy and Strong Competition, The Changing Nature of the Workforce and
Powerful Customers.

technology pressures:
Change in technology from old to new.
Include: technological Innovation and Obsolescence and
Information Overload.

Societal pressures:
Include:
Social Responsibility, Government Regulation and Deregulation, Protection Against Attacks / Natural disaster and Ethical Issues.

Organization Responses:

Each organization want to be success by:
1- Strategic systems:

• achieve profit.
• better negotiate with suppliers.
• prevent business from competitors.

2- Customer Focus:
 Search for competitors and be different from them to attract customers.

3- Make to order and mass customization:
 Mass production: create identical product.

 Mass customization: make what customer want.
                                   make customer happy.

4- E-business and E-commerce:
 B to B
 B to C
 C to C

We have first E-business then E-commerce going to work.
So, E-business and E-commerce not the same.

Competitive Advantage :

How can I make my business better than others. There are many factors to do that: Cost, Quality and Speed.

Cost Strategy: Produce with low cost.
Differentiate Strategy: Search for what you can do different than others.
Innovation Strategy: Create or produce something special.
Customer-orientation Strategy: Do anything to make customer happy.

 

Porter’s Competitive Forces Model

• Buyer Power is very high if there is many suppliers.
• There is substitute of product and service if there is threats.
• There will be new entrants if there is threats.