IT6506 · e-Business Technologies · Level III · Semester 6 · UCSC BIT
A digital platform connecting buyers and sellers of goods/services. Creates economic value for buyers, sellers, intermediaries, and society by facilitating exchange of InformationGoodsServicesPayments
Wide range across many industries.
Examples: Amazon, eBay, Daraz.lk
Specialist in one category.
Examples: Airbnb (lodging), Etsy (handmade), Zillow (real estate)
| Platform | Type | Unique Value |
|---|---|---|
| Amazon | Horizontal (Global) | Largest ecommerce; full ecosystem (AWS, streaming, AI) |
| Alibaba | B2B Direct (Global) | Connects global buyers directly with Chinese manufacturers |
| Airbnb | Vertical (Global) | Peer-to-peer lodging; disrupted entire hospitality industry |
| Fiverr | Vertical (Global) | Freelance micro-services marketplace; global digital talent |
| Daraz.lk | Horizontal (LK) | Sri Lanka's largest; backed by Alibaba Group |
| Ikman.lk | Classifieds (LK) | Free classified ads: vehicles, property, electronics, jobs |
| Kapruka | Gifts/Services (LK) | Gifting, flowers, food; strong overseas Sri Lankan user base |
| Healthguard.lk | Vertical (LK) | Healthcare/wellness products exclusively |
| Dimension | Traditional | New eBusiness |
|---|---|---|
| Production | Mass — identical goods at scale | Personalised (e.g., Dell build-to-order) |
| Distribution | Via middlemen (wholesaler → retailer) | Direct-to-customer, no intermediaries |
| Communication | Chained/closed, slow hierarchy | Networked/open, real-time multi-directional |
| Finance | Slow, limited hours, difficult cross-border | Faster, easier, 24/7, instant transfers |
| Markets | Local/geographic limits | Global, no boundaries |
| Assets | Tangible/physical (factories, stores) | Intangible/virtual (data, software, IP) |
| Force | Strongest When… | eBusiness Strategy |
|---|---|---|
| Rivalry | Slow market; homogenous products; easy switching | Value-Added Differentiation + CRM + Product Bundling |
| New Entrants | Low start-up costs; weak brand loyalty | CRM loyalty programs + Strategic Alliances + Cost Leadership |
| Supplier Power | Few suppliers; unique inputs; supplier can sell direct | Backward Integration + SCM + ePortal bulk ordering |
| Buyer Power | Buyers large; product undifferentiated; low switching cost | Forward Integration + CRM + Value-Added Differentiation |
| Substitutes | Easy switching; low loyalty; product not unique | Product Diversification + Market Diversification + Alliances |
Old vs Online Model: Old — Physical ops, IT as a function, geographical limits, high switching costs. New — Online ops, IT as strategy, global reach, low switching costs, collaborative competencies.
| Old Rule | Technology | New Rule |
|---|---|---|
| Info in one place at a time | Shared Databases | Info appears in multiple places simultaneously |
| Only experts do complex tasks | Expert Systems (AI) | A generalist can work like an expert |
| Centralise OR decentralise | Telecom Networks | Benefit from both simultaneously |
| Only managers decide | DSS | Decision-making is everyone's job |
| Field staff need offices | Mobile/Wireless/Internet | Connected from anywhere, anytime |
| Best contact = personal contact | Internet/WWW | Best contact = effective contact |
Management Information Systems — collects data to help managers plan, decide, and control operations
Transaction Processing Systems — processes high-volume routine transactions (sales, purchases, inventory)
Decision Support Systems — data models helping managers analyse complex scenarios
Executive Support Systems — KPI dashboards for senior executives' strategic decisions
Inventory Control Systems — manages stock levels, tracks movement, minimises holding costs
Knowledge Management — captures and shares organisational knowledge across employees
Process ↔ Process: output of one step feeds the next (order → deduct stock → reorder)
Technology ↔ Technology: systems share data via APIs in real time
People ↔ Technology: humans and systems work together using each other's strengths
Combines mass production efficiency with personalisation — producing tailored goods without sacrificing cost-effectiveness. Enabled by CAD, 3D printing, EDI, automation, and web configurators. Examples: Dell (custom PCs), Nike iD, BMW custom config.
| Aspect | Mass Customisation | Mass Personalisation |
|---|---|---|
| Definition | Customised product via tech + management adaptation | Personalised experience via co-creation + user behaviour analysis |
| Customer Impact | Limited — chooses from predefined options | Strong — customer co-creates with the organisation |
| Aim | Competitive advantage through tailored product | Tailored experience, smart service, customer-need orientation |
| Stage | Technology |
|---|---|
| Patterns | Body scanner, digitiser, CAD |
| Design | CAD + web-based product configurators |
| Production Planning | EDI + production planning software |
| Assembly | Electronically-controlled robotics + UPS |
| Distribution | EDI + supply chain management software |
Traditional Retail: Manufacturer → Wholesaler → Distributor → Retailer → Consumer (high cost, slow, no direct data) | DTC: Manufacturer → Website → Consumer (higher margin, richer data, faster feedback)
Business A + B + C share information through a Virtual Organisation hub to serve the same customer — creating value none could create alone, without co-locating staff.
Companies in crisis — forced to act. Reactive, urgent transformation. No choice. Example: Traditional retailer losing revenue to Amazon must digitise immediately.
Not yet in trouble, but sees disruption coming. Proactive, preventive change. Example: Bank launches mobile banking before fintech crisis hits.
Ambitious and already competitive. Uses reengineering to extend their lead. Example: Amazon expanding into AWS, Alexa, healthcare — always ahead.
| Force | Key Strategies |
|---|---|
| Rivalry (High) | Product Differentiation · CRM · Product Bundling · Niche Targeting · Horizontal Integration |
| New Entrants (High) | Strengthen entry barriers · CRM Loyalty · Strategic Alliances · Cost Leadership |
| Supplier Power (High) | Backward Integration · SCM · ePortal bulk ordering · Strategic Alliances |
| Buyer Power (High) | Forward Integration · CRM · Value-Added Differentiation · Product Bundling · Loyalty Programs |
| Substitutes (High) | Product Diversification · Market Diversification · Strategic Alliances · Pricing Strategies |
The Final Goal of eBusiness: "The ability to connect with, access information, conduct business or deliver services to anyone — from anywhere — anytime — using almost any device — securely — easily — cost effectively — and with a single click."