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resh products moving through the system – Data Envelopment Analysis ? A linear programming can optimize multiple inputs and multiple outputs Exploiting the Virtual Value Chain Production Distribution Retailing Customer Physical Value Chain Apply the generic valueadding steps of the information world: Gather Organize Select Synthesize Distribute to each physical activity to create virtual value. Virtual Value Chain New New New New Processes Knowledge Products Relationships (Stage 1) (Stage 2) (Stage 3) (Stage 4) 230 eCommerce Implementation The Virtual Value Chain ? Marketplace vs Marketspace ? Creating New Markets Using Information (Gather, Organize, Select, Synthesize, and Distribute) Four Stage Evolution ? 1st Stage (New Processes): See physical operations more effectively with information (USAA “paperless operation”). ? 2nd Stage (New Knowledge): Substitute virtual activities for physical (USAA “automate underwriting”). ? 3rd Stage (New Products): Use information to deliver value to customers in new ways (USAA “event oriented service”). ? 4th Stage (New Relationships): Seek customer collaboration in cocreation of value (USAA “online financial planning service”). 231 ? Economics of Scalability – Scalability: ability to improve contribution margin (revenue – variable cost) as sales volume increase ? Conduct only information or data transfer service – Google, Facebook, online encyclopedia ? Allow customers to serve themselves – Online reservation, 線上選課系統(tǒng) ? Let customers serve customers – Online auctions Dimensions High Scalability Low Emerce continuum Selling information (eservice) Selling value added service Selling services with goods Selling goods (emerce) Information vs. goods content Information dominates Information with some service Goods with support services Goods dominate Degree of customer content Selfservice Call center backup Call center support Call center order processing Standardization vs. customization Mass distribution Some personalization Limited customization Fill individual orders Shipping and handling costs Digital asset Mailing Shipping Shipping, order fulfillment, and warehousing Aftersales service None Answer questions Remote mainte