Module 1. Introduction to eBusiness


 * Introduction.jpg

What is eBusiness?
Electronic business, commonly referred to as "eBusiness" or "e-business", may be defined as the application of information and communication technologies in support of all the activities of business. http://en.wikipedia.org/wiki/Electronic_business (added by mjw) “Exchange of economic value facilitated by electronic media” Carrying out business transactions in electronic form using computer and telecommunication networks.-Buying and selling over digital media

How ecommerce differs from Traditional Commerce
Core strategic decisions - commingled with technology decisions

Speed-based competition – first mover advantage? The store is always open

Screen-to-customer interface – mass customization Customer controls interaction

Online behaviour can be tracked/measured – new metrics

eBusiness Scope
E-business involves business processes spanning the entire value chain: electronic purchasing and supply chain management, processing orders electronically, handling customer service, and cooperating with business partners. Special technical standards for e-business facilitate the exchange of data between companies. http://en.wikipedia.org/wiki/Electronic_business (added by mjw)

Types of organizations
Brick-and-Mortar-conduct most of their business off-line, selling physical products by means of physical agents

Pure-play-conduct business activitiessolely online

Click-and-mortar (click-and brick)-conduct some ecommerceactivities, but do their primary businessin the physical

eBusiness & eCommerce
eBusiness encompasses eCommerce

-Includes activities that do not involve direct exchange of economic value

-such as front and back office applications

-customer service and support,

-employee services,

-investor relations and shareholder services, etc.


 * eBusiness strategy provides the framework for carrying out eCommerce.

Ecommerce Drivers
-Expand universe of potential buyers

-Increase sales

--Meet customer expectations-Increase brand/product recognition

-Ease of doing business

-Competitive pressure

-Cost effectiveness

-Provide more information to customers

-Improve customer service

-New sales channel

Electronic Data Interchange (EDI) :
standard way of electronically encodingand exchanging Line of

Businessdocuments(POs and invoices, etc. between organizations)

-Facilitated by private networks called VANs (Value Added Networks) or through the internet

-EDI is widely used by large corporations and government agencies to communicatewith their suppliers; e.g., Wal-Mart.

Two major standards:

•ANSI X 12

•UN/EDIFACT

Various EDI “dialects” created by various large buyers

Beyond EDI:
-EDI is mostly used by large corporations

-High entry cost

-High operating costs due to expensive transmission through VANs

-Not a universally accepted “standard”

-Most EDI vendors now offer internet-based EDI solutions : reduce costs, do not solve interoperability issues

Forces of Change:

 * Removal of Barriers
 * Growing Access to Internet
 * Security (Firewalls & Encryption, PKI)
 * Payment Systems
 * PIPEDA (Personal Information Protection and Electronic Documents Act)

Benefits

 * Cheaper
 * Faster
 * More convenient
 * Better selection
 * More customization/personalization
 * Richer package (e.g. additional Info. to customer – FedEx)
 * Wider reach
 * More controllable

Effect on Business
Integration of strategies and processes (business and ecommerce goal Congruence)

Customer-centric value chain

Pillars of ECommerce Most businesses will become eBusiness
 * information
 * relationships
 * transactions
 * security/control

Business Models (Describe a company’s business)
Value propositions:bundle of products and services, and the value as perceived by the customer.

Target customer segments:groups of people with common characteristics for which the company creates value.

Distribution channels:means of the company to get in touch with its customers refers to the company's marketing and distribution strategy.

Customer relationships:links a company establishes between itself and its different customer segments.

Value configurations:The configuration of activities and resources.

Core capabilities:capabilities and competencies necessary to execute the company's business model.

Partner network:cooperative agreements with other companies to offer and commercialize value.

Cost structure:monetary consequences of the means employed in the business model

Revenue model:way a company makes money through a variety of revenue flows.

Strategic Business Trends

 * Supply Chain Management (SCM)
 * ERP, ERP & SCM, CRM
 * Integration
 * Customization
 * New Sales Channels
 * Many small projects vs. risky megaprojects

Flexible Business Design
*There are 3 kinds of businesses behind a single company*
 * Outsourcing
 * Partnerships
 * Joint ventures
 * Mergers
 * Takeovers

The World is flat: Chapter1-while you where sleeping:
The discovery that the economic playing field had been leveled. Many countries in the East make it a requirement to speak several languages. Business thanks to the web can be done anywhere (outsourcing).

Web1.0-(1492-1800’s) changed the size of the world, exploration, imperialism, expanding countries

Web2.0-(1800’s-2000) medium to small companies made global changes to do businesses everywhere.

Web3.0-(2000-on) Individuals & small groups globalizing-no longer is it just about the Americans-the global playing field has been leveled.

The Triple Convergence:

1.) Year 2000- 10 Global Flatteners-All flatteners worked together

2.) Adaptation of Globalization

3.) India, China and Russia are now able to compete and collaborate in the Global economy.


 * 9/11, Enron and the Dotcom bust-provided a political perfect storm to distract us from Globalization*



Finance -Concerned with $ and the future plans

-preparing accounts, ex. invoices, management accounts, financial accounts for share holders and Inland Revenue

-Preparing wages and salaries

-Obtaining capital and resources, ex. $ for expansion or to pay for resources such as equipment and materials.

Operations:

-Concerned with the main business activities

-Obtains & converts resources of the business into goods/services