53-751-02 e-commerce definitions and relevance

53-751-0253-751-02E-COMMERCEE-COMMERCE

Definitions and relevanceDefinitions and relevance

Jacques RobertJacques Robert

http://www.hec.ca/sites/cours/53-751-00http://www.hec.ca/sites/cours/53-751-00

HEC MONTRÉAL – MBA53-751-02 E-Commerce

Jacques Robert & Jean Talbot, HEC Montréal

E-BUSINESS: AN IBM DEFINITIONE-BUSINESS: AN IBM DEFINITION

• An e-business is an organization that interacts with An e-business is an organization that interacts with customers, suppliers, partners and employees using customers, suppliers, partners and employees using Internet technologiesInternet technologies

• E-business is the use of Internet technologies to improve E-business is the use of Internet technologies to improve and transform key business processesand transform key business processes

IBM Framework for e-business: technology, Solution and Design Overview, IBM Redbooks, IBM Framework for e-business: technology, Solution and Design Overview, IBM Redbooks, April 2001, available at www.ibm.com/redbooksApril 2001, available at www.ibm.com/redbooks



What is e-business (CEBI)What is e-business (CEBI)

• E-Business has been defined as business processes (both intra-E-Business has been defined as business processes (both intra-and inter-firm) over computer mediated networks. These and inter-firm) over computer mediated networks. These processes should integrate tasks and extend beyond a stand processes should integrate tasks and extend beyond a stand alone or individual application. alone or individual application.

• E-business includes:E-business includes:· E-Commerce· E-Commerce· Customer Development and e-Marketing· Customer Development and e-Marketing· Customer Service and Support· Customer Service and Support· Finance and Accounting· Finance and Accounting· Human Resources· Human Resources· Procurement and MRO (maintenance & repair operations)· Procurement and MRO (maintenance & repair operations)· Sales Fore Automation· Sales Fore Automation· Supply Chain Management· Supply Chain Management· Enterprise Information Portals and · Enterprise Information Portals and · other business processes when conducted over computer· other business processes when conducted over computermediated networksmediated networks



E-COMMERCE DEFINITION (Industry E-COMMERCE DEFINITION (Industry Canada)Canada)

• Technically, electronic commerce is a commercial activity which Technically, electronic commerce is a commercial activity which is carried out on networks connecting of the electronic devices is carried out on networks connecting of the electronic devices (mainly computers). (mainly computers).

• Basically the electronic commerce is an inexpensive means to Basically the electronic commerce is an inexpensive means to connect computers to carry out on behalf of the companies tasks connect computers to carry out on behalf of the companies tasks which previously required much time and money. It is for which previously required much time and money. It is for example of the sale of products, the invoicing, the control of the example of the sale of products, the invoicing, the control of the inventories and the communication with the providers and the inventories and the communication with the providers and the customers.customers.

• "The e-economy - is the use of information and communications "The e-economy - is the use of information and communications technologies for economic transactions and product and process technologies for economic transactions and product and process innovations across all sectors of the economy - It is in this sense innovations across all sectors of the economy - It is in this sense that the e-economy hasemerged as the primary engine of that the e-economy hasemerged as the primary engine of productivity and growth"productivity and growth"



STATE OF E-COMMERCE TODAYSTATE OF E-COMMERCE TODAY

• Pessimistic viewPessimistic view– Fad that came and wentFad that came and went– ““Let’s move on to more important things”Let’s move on to more important things”

• Optimistic view Optimistic view “How E-Biz Rose, Fell, And Will Rise Anew,” Business Week, May 13, 2002“How E-Biz Rose, Fell, And Will Rise Anew,” Business Week, May 13, 2002

– Unavoidable new realityUnavoidable new reality– Despite the doom and gloom and the slow economy, it is Despite the doom and gloom and the slow economy, it is

still growing (more than 50% of the population has access to still growing (more than 50% of the population has access to Internet, on-line B2C sales rose 40% in 2002 to $48 billion, Internet, on-line B2C sales rose 40% in 2002 to $48 billion, B2B reached $825 billion in 2002 and is expected to attain B2B reached $825 billion in 2002 and is expected to attain $2.4 trillion by the end of 2004)$2.4 trillion by the end of 2004)

– Internet companies (Amazon, Yahoo, E-Bay) are starting to Internet companies (Amazon, Yahoo, E-Bay) are starting to show profitabilityshow profitability



Stakeholders

Customers, Resellers

Selling Chain Management

EMPLOYEES

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Partners, Suppliers, Distributors

Supply Chain Management Supply Chain Management

Business IntelligenceBusiness

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Kalakota & Robinson, E-Business 2.0



StatCan, Daily 040416



E-COMMERCE IS IMPORTANTE-COMMERCE IS IMPORTANT

• www.netimpact.comwww.netimpact.com

53-751-02 e-commerce definitions and relevance

Documents

ebusiness cebiebusiness

ibm definitionan ebusiness

hec montralebusiness

business week

ebiz rose

growth hec montral mba53

emarketing customer

d e r scustomers