Activity 6 E-business (Business Model Nuts&Bolts)

Question 1:

Summarize how e-business has been used to transform Sandvik Steel

E-business has been used to link with customers, bringing considerable cost savings. This activities are mainly directed towards enhancing links with customers
Now, the IT is not only serving company, but it benefits customers.
The major challenge was changing attitudes, insights, and getting people to understand and accept that this is the part of their work.

They avoided channel conflict, and not bypassed traditional channels.

Sandvik Steel plans to offer to each customer a personalized web page, due to enhance its online service to customers.

Question 2:

What is the core element of Sandvik's e-business strategy?

The core element of Sandvik’s e-business strategy is Customer Relationship Management.

Question 3:

In the online context, how do you understand the process of customer relationship building?
I think that the best way to stay focused on customer needs is to ask customers about their satisfaction with the products/services they receive and to seek suggestions for improvement on a regular basis, or customizing customer contact (mentioned in text personalized web pages).

Question 4:

Describe briefly Web tools that helped Sandvik to build online customer relationship, what are the benefits for customers?

They made a extranet site, where users can obtain worldwide stock information, catalogues and training aids, or take part in online discussions.
They allows customers not only to buy tools over the net, but also to design them online – customer can save around 10% of total cost of manufactured component.
They plan to enable personalized web page for each customer, this will enable the company to offer new products, materials, advice on productivity improvements and offer web training.