Co-creators vs e-retailers: an analysis of power in the digital value chain

Servitization 2014: The third Conference on Business Servitization. Bilbao from November 13 to 14th, 2014.Supply chains as descriptors of business models provide processes of value creation and value delivery, which are often performed by a number of different companies. This article develops a framework of unbalanced power in capturing value between those who create value and those who deliver it, giving a better academic comprehension of how empowerment distorts B2B relations throughout the value chain. The context of analysis is the book industry, in which authors and publishers are considered as co-creators of value and E-retailers deliver value. We propose that servitization and digitalization of the industry has brought the industry towards a demand chain approach empowering E-retailers. We empirically validate this proposition through a unique survey containing information of 8,000 consumers residing in UK and US. The estimation of demand functions using the payment card method determines that while in new releases market price equals profit-maximization point for publishers, in book categories in which there are not well defined property right like classic novels, E-retailers impose discounts of 30%-40% in respect to the publisher’s profit maximization price. Results have implications for practitioners and policy makers

Customer Enquiry Management in a Global Competitive Context: A Comparative Multi-Case Study Analysis

Business-to-Business (B2B) relationships, such as between a manufacturer and a customer, are increasingly important during the Customer Enquiry Management (CEM) process, particularly so for non-Make-To-Stock (non-MTS) companies operating in industrial markets. Few empirical studies have explored the CEM practices adopted by firms in practice. A study of the Italian capital goods sector by Zorzini et al. (2007) is a recent exception. Moreover, most studies have approached CEM from a cross-department integrated perspective but in the digital economy, and with globalization, outsourcing and extended supply chains, CEM needs to be approached from a broader supply chain-oriented perspective, incorporating B2B exchanges. This paper builds on the study by Zorzini et al. (2007) by conducting multi-case study research with seven UK-based companies in the capital goods sector, including three sales and support companies with offshore manufacturing. By adopting a cross-national research perspective, it assesses whether the proposed theory applies to other capital goods firms outside Italy. By also adopting a supply chain perspective of CEM it investigates current industry practice in B2B markets and explores whether cross-functional coordination and formalization issues can be extended into a global context. Evidence from the UK generally supports prior theory, confirming links between high levels of coordination, formalization of the CEM process and improved performance. Some refinements are proposed, for example, in order to make the theory suitable for a global context. The characteristics of a supply chain are important factors that affect CEM. This research has managerial implications for improving the CEM process in non-Make-To-Stock (non-MTS) capital goods companies from both an intra and an inter-organisational (B2B) perspective. Coordination with partners along the supply chain is needed at the enquiry stage and constraints linked to global customers should be considered when structuring the

Using ERP as a basis for Enterprise application integration

Architecting and implementing e-Business supply chain solutions across and within the modern day enterprise, is now becoming a necessity in order to maintain competitive and be adaptable to market needs. As such, the integration of information and processes is a vital step, using technologies such as using Enterprise Resource Planning (ERP), Supply Chain Management (SCM) and enterprise portal platforms. The effective sharing of resource planning and other enterprise related data across and within the enterprise is typically seen as a facet of a business to business (B2B) platform. However, such infrastructures typically involve a tight integration across intra and inter-organisational systems. This paper examines an Enterprise Application Integration (EAI) initiative taken by a global manufacturer of industrial automation products, which attempted to utilise ERP as an integration tool across its internal B2B infrastructure, to achieve such an aim. This paper discusses those integration considerations and complexities, experienced by the case company upon embarking on an EAI integration programme through the adoption of a core ERP as a catalyst for organizational change. In doing so the authors present an analysis of the inherent risks and limitations of this approach in terms of previously published literature in the field, relating to technology-driven organizational change and EAI impact and adoption frameworks

Agent Technology in Supply Chains and Networks: An exploration of high potential future applications

This paper reports on an ongoing research project that\ud is aimed at evaluating how software agents can improve\ud performance of supply chains and networks. To conduct\ud this evaluation, first a framework is developed to classify\ud potential applications of software agents to supply\ud networks. The framework was used in workshop sessions\ud with logistics and information systems experts from\ud industry, software/consultancy and academia to identify\ud promising areas for agents. Based on the framework and\ud the outcome of the workshop sessions, this paper presents\ud promising application areas for the near future and\ud beyond

E-COMMERCE: A NEW BUSINESS MODEL FOR THE FOOD SUPPLY/DEMAND CHAIN

The use of electronic commerce for quality control and cost cutting efficiencies by the food and agricultural industries in the United States is the focus of this paper. The food industry engages in e-commerce through 1.) Internet shopping for consumers called business-to-consumer (B2C) e-commerce 2.) Business-to-business (B2B) Internet market discovery exchanges used by food suppliers at any point in the supply chain, and 3.) Business-to-business (B2B) relationships that reduce costs and increase efficiencies in the procurement, storage and delivery of food to retail stores or distribution centers. This third use of e-commerce is the most highly developed and widely adopted. It allows retailers to share information about consumers' purchases and preferences with food manufacturers and farmers and for tracking food products' characteristics, source, and movement from production to consumer. This circle of information allows high quality and consistent products to be consumed at lower prices. This paper is about the development of e-commerce in the food industry, the economic concepts and goals that it meets, and the changes it brings to the industry. E-commerce both fosters and demands vertical coordination. It favors consolidation of firms. It changes the business culture from one of adversarial relationships to one of cooperation and trust. It changes the historical supply chain into a supply/demand loop while it lowers the cost of food. Policy issues arise around monopoly power, privacy, a diminution of variety, and the demise of small, undercapitalized firms.Industrial Organization, Marketing,

Enhancing Brand Equity Through Sustainability: Waste Recycling

Unlike many existing research studies that explain reverse marketing from a purchasing perspective, this study recognizes it as an honest effort made by managers aiming to promote sustainability by purposefully managing waste and discusses the spillover effect of their initiatives on brand equity. It argues that efficient recycling of products through reverse marketing by a brand demonstrates its sincere intent to adopt sustainable business practices and enhances its equity in the marketplace. A business-to-business viewpoint has been used to combine knowledge about waste recycling and management through reverse marketing based on the unpretentious operations and management practices. The propositions reflect on the criticality of engaging business customer firms in a procedural mechanism of recycling for increase in brand equity as the success of reverse marketing. A comprehensive adoption of an initiative like waste management through reverse marketing by a brand highlights how sustainability initiatives can create value for the customers of the brand and ultimately drive brand equity

Analysing B2B electronic procurement benefits – Information systems perspective

This paper presents electronic procurement benefits identified in four case companies. The benefits achieved in the case companies were classified according to taxonomies from the Information Systems discipline. Existing taxonomies were combined into a new taxonomy which allows evaluation of the complex e-procurement impact. Traditional financial-based methods failed to capture the nature of e-procurement benefits. In the new taxonomy, eprocurement benefits are classified using scorecard dimensions (strategic, tactical and operational), which allows the identification of areas of e-procurement impact, in addition the benefits characteristic is captured (tangible, intangible, financial and non-financial)

Competing in the Digital Economy?: The Dynamics and Impacts of B2B E-commerce on the South African Manufacturing Sector

ICTs, B2B e-commerce, manufacturing sector, South Africa

Does structure influence performance in downstream supply chain?

In 1989, John Sterman has explained in the famous beer game the bullwhip effect in downstream supply chain and how structure influences behavior of supply chain members. In this article, we try to find answers to the following questions: Does structure influence performance in downstream supply chain? Can be identified a network configuration that performs better than other configurations? In finding answers to the research questions, we considered the axiom ‘what it is not measured, it cannot be managed’. In the study, we took SCOR metrics at first level as performance metrics and best practices to express each SCOR dimension. 30 top executives from World Class Manufacturers were surveyed to rate the importance of the metrics and best practices in measuring performance in downstream supply chain. The second step was to develop a multiple attribute utility model (MAUT) to select from the seven configurations identified the one that has the highest performance.downstream supply chain network; multiple attribute utility model; SCOR; performance metrics; best practices.