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【正文】 n and transaction costs of a firm: – The cost of executing a sale– The costs associated with procuring production inputs– The costs associated with making and delivering a product or service – The cost associated with logisticsPricewaterhouseCoopers18The Cost of eBusiness SalesAccessibilityAn eBusiness web site is open 24 hours per day, 7 days per week. A business no longer has to build separate physical establishments to attract a larger customer base. A virtual storefront also allows an ebusiness to manage one store instead of multiple stores, thus eliminating duplicate inventory costs. PricewaterhouseCoopers19The Cost of eBusiness SalesOrder ReworkAnother aspect of eBusiness is that it enables more efficient order configuration. For example, both General Electric (GE) and Cisco Systems reported nearly onequarter of their preWebsite orders had to be reworked because of errorsa total of more than 1 million orders, in the case of GE. Since adopting a Webenabled customer interface, Cisco reports an error rate of only 2 percent. Produce or Service OutputCritical Customer RequirementDefects: Service unacceptable to customerB APricewaterhouseCoopers20The Cost of eBusiness SalesFundamental ShiftClearly, eBusiness represents a fundamental shift in how the sales process is executed by a pany. As a result, eBusiness pels existing businesses to reexamine how they interact with customers, even as new entrants exploit eBusinesses to reach customer bases previously thought unreachable. Low HighCost of Sale“OfftheRack”CustomisedValueAddedof SaleDirectSaleswFacetoface salesw$500/sales contactwDistributors/VARsw$2300/sales contactwTelephone sales and servicew$25 per sales contactwNo human contactw$1 per sales contactResellersTelechannelElectronicChannelsSource: Dr. Rowland Moriarty, Cubex Corp.PricewaterhouseCoopers21The Costs Associated With Procuring Production InputsWebbased procurement of maintenance, repair, and operations (MRO) supplies is expected to reach more than $100 billion worldwide by the year 2023. MRO prises those goods required to run a pany that are not raw materials used in the direct manufacture of a product or the provision of a service.SuppliersSuppliers Connected to MarketPlace via Web or ERPBuyersBuyers connected to marketplace via EProcurement AppB2B MarketPlaceProfitOtherCostsPurchases 100 1004550455 5%A 5% reduction in purchase cost can result i
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