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Francis Stevens George Krooman-2004
Module 1Introduction to E-Business
Tutor: FSG
Francis Stevens George Krooman-2004
Course Objectives
Gain a broad understanding of eBusinessUnderstanding the major themesUnderstanding the underlying technologiesUnderstand the applications of the tecnologies to particular strategic processes
Francis Stevens George Krooman-2004
Introduction to E-Business
Overview of E-Business and its various Aspects
Francis Stevens George Krooman-2004
What is e-BusinessE-business is not e-commerceE-Business is about interaction. It represents a more focused and comprehensive involvement of the organisation. The platform is attitude shift.
1994-97PresenceWebsite,Brochure ware
1997-2000TransactionOrder FlowGross revenue
2000-E-business
Francis Stevens George Krooman-2004
Aspects of E-Business
Will web enabled commerce improve our valuation?
What are the demands of our stakeholders?
Do they have technology interface with our system?
Who are our suppliers?
Are they computer literate? Can the internet improve their buying experience?
Who are our customers?
Can the internet provide additional leverage?Where do we gain strategic advantage?
Can the internet accelerate the effort?Where are we going, and how long before we get there?
Is e-business an element?What is our value proposition?
Technology Strategy ConsiderationBusiness Strategy
Francis Stevens George Krooman-2004
Introduction to E-Business
What is a Business Model and How it is used
Francis Stevens George Krooman-2004
Business Model
What is a Business Model?A system which defines how a firm will build and use its resources to offer its customers superior value profitably.
Change
Environment
Performance
Business Model-Components, linkagesand Dynamics
Francis Stevens George Krooman-2004
Business Model-Key Questions
Under what business model does my company operate? How do we develop a model to ensure success?Which business models are taking hold in my industry and why? Is my organisation capable of adapting to the required business model /business model changes?
Francis Stevens George Krooman-2004
What are the B-Web Models
AgoraAggregationValue ChainAllianceDistributive Networks
Francis Stevens George Krooman-2004
What B-Model
What new capabilities?Capabilities and capabilities gaps.
Capabilities
Sustainability- easier or more difficult?
How difficult for others to copy us? How do we keep making money?
Sustainability
What does the internet do?Organizational structure, systems, people and environment.
Implementation
How many new activities must be perform? Can we perform existing activities better?
What set of activities do we have to perform to deliver value?
Connected Activities
Are revenue sources different?Where do the mullah come from? What are the margins?
Revenue Source
Does the internet make pricing different?
How do we determine price?Pricing
What is the sope of customers that the internet enables us to reach? Does the net alter my product/service mix.
To which customers are we offering our value?
Scope
What unique features of the internet allows you to offer something distinctive? Can we solve a specific problem
Is the company offering something distinctive?
Customer value
Questions specific to Internet business models
Questions for all modelsComponent
Francis Stevens George Krooman-2004
Introduction to E-Business
What are the technologies behind e-Business
Francis Stevens George Krooman-2004
Overview of E-Business Applications
E-BusinessApplications
TelecommunicationsNetworks
The InternetIntranetsExtranetsOther Networks
Enterprise Communicationand Collaboration
Internal Business Systems
Electronic Commerce
-Electronic Mail-Voice Mail-Discussion Forum-Data conferencing-Videoconferencing-Electronic Meeting
-POS-Web retailing-Online Auctions-Interactive Marketing-SCM-Electronic Fund Transfer-Online Banking
-Transaction Processing-Intranent Ent. Info. Portal-CRM-Workflow Systems-Activity Monitoring-Process Control-Management Support Systems
Francis Stevens George Krooman-2004
Strategic Business Value of Internet based applications
Marketing & Product Research
Sales & Distribution
Support & customerfeedbackInternet
Capability
BenefitsTo company
OpportunitiesFor Advantage
Data for MarketResearch
Consumer responseTo new products
Environmentalscanning
Reach new customers
Low cost distribution
Multiple contactpoints at no incremental costs
Access to customerComments online
Immediate responseto customerproblems
Increase Market Share Lower cost margins Enhanced customer satisfaction
Adapted from Mary Cronin-Doing MoreBusiness on the Internet.
Francis Stevens George Krooman-2004
Introduction to E-Business
The Components of an e-business based Marketing System
Francis Stevens George Krooman-2004
Traditional Based Marketing System
Supply Chain
CustomerProductPrice Promotion Strategic
GoalStrategic
Plan
Place or Distribution
Product FlowManagement
Payment FlowInformation Flow Environment:
TechnologicalCompetitivePoliticalLegaalSocial
Francis Stevens George Krooman-2004
E-Business Based Marketing System
Supply Chain
Market of oneCustomer
CustomisedProductsLower Prices
CustomisedNon-linearPromotions
StrategicBehaviour
Shorter ChannelsDominated by Facilitators
EntrepreneurialManagement
Electronic PaymentsKnowledge ManagementAnd Data Warehousing
Environment:Constant tech. changeIncreased competitive pressure.
Extranet
Francis Stevens George Krooman-2004
Introduction to E-Business
Using e-business to develop Long Term Marketing Relationships
Francis Stevens George Krooman-2004
The Big Picture
Inventory ManagementSystem
Head Office:Marketing,ElectornicCommerce,Collaboration with customers,Prospects .
THE INTERNET
SuppliersExtranet for EC, accessInventory, replenish stock,Send documents, specs.
Customers-Order, shop, get service/support.
Remote office-Intranet links,virtual teams,Interactive communications,Collaboration, computing
Business Partners-Email,document transfer,Discussion, extranent
Francis Stevens George Krooman-2004
What matters in e-Business
Relationship CapitalIntegrationPartnershipFlexibilityROI
Francis Stevens George Krooman-2004
The Stakeholders
Strategic Partners:Partners who are planning for the future of your business.Operational Partners:Partners helping you run your business today.Governance:The individual applying the rules and regulations that are relevant to your business stakeholders.Customers:The end purchasers.Community:The people who are interested in your products and services, people who may or may not include your business customers.Shareholders:Employees:
Francis Stevens George Krooman-2004
Why you cannot wait
Lower costs today to develop and implement.Early investment for better pay back in the future.Leadership role rather than follower.Certain cost savings are immediate-so called ”hard costs”.Early starters create electronic structural barriers for followers.Companies implementing technology are more likely to meet customer needs than those who do not.Unprecedented market reach at home and abroad.Possible elimination of costly intermediaries.
Francis Stevens George Krooman-2004
A Must for Managers
Have a conceptual understanding of the technologiesApplication, IntegrationE-Business is a long term propositionE-Business is evolving
Can also be a Woman
Francis Stevens George Krooman-2004
Key Advice
Its not the technology but its applications that counts!Technology in itself will not create value.Focus on the big picture.Build a little, use it, build a little more.Your people MATTER
Francis Stevens George Krooman-2004
Conclusion
•What is the new opportunityBased on specificmarket and customertrends?•What are the macro economicdrivers of the business change?•Which digital technologieswill dominate your industry?
•What models arebetter suited totake advantage ofnew business opportunities?•What business processes need tochange?•How do we movefrom existing modelto an e-model reflecting our companyorganizational readiness?•What are the Managementchallenges?
Who are your targetcustomers?
What is your valueProposition?
How do you make Money?How to retain customers?
How to get talentedpeople?
E-Business PatternsThe Foundation,
The Rules, Challenges
E-Business Designs:Specific Strategyfor what you need
to do in the marketplace
E-Business Models:The Strategic Frameworkthat allows you to competein the game