e-business 2007-2008 professor linda a macaulay [email protected]
TRANSCRIPT
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2Manchester Business School
Professor L.A. Macaulay
Overview
• Module Objectives• Introductions & Questions• PART 1: definitions, models &
infrastructure• PART 2: environmental factors• Group discussion• Preparation for next week
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3Manchester Business School
Professor L.A. Macaulay
Module objectives• To investigate state of the art in e-
Business from both a theoretical and practical standpoint
• To examine a range of e-Business models focussing on how they interact with each other in supporting the various business activities
• To examine e-Business solutions and how they affect Business to Business and Business to Consumer applications
• To examine the emerging patterns for e-Business
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4Manchester Business School
Professor L.A. Macaulay
Today’s objectives
• To get to know each other!• To introduce some key
background factors associated with e-business– Models– Infrastructure– Environment– SMEs– Business issues
• To explain module structure
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5Manchester Business School
Professor L.A. Macaulay
Introductions
– To each other– Name, where from, which
programme you are on, why you are interested in e-business
– Any questions so far?
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6Manchester Business School
Professor L.A. Macaulay
PART 1: definitions, models and infrastructure
The definition of Electronic Commerce from the European Union web site, 1997, (http://europa.eu.int):Electronic Commerce is a general concept covering any form of business transaction of information exchange executed using information communication technology,
A definition of e-business by IBM (www.ibm.com/e-business)E-business is the transformation of key business processes through the use of Internet technologies
E-commerce can be viewed as a subset of e-business
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7Manchester Business School
Professor L.A. Macaulay
E-business: Interdisciplinary with many options
• Interdisciplinary NatureMarketing Accounting & AuditingComputer Sciences ManagementConsumer behaviour & psychology MISFinance Business Law & EthicsEconomics Others
• Options for trading between business and consumer– B2C – retail to consumers– B2B – interorganisational– C2C – consumer interactions e.g. auctions– C2B – customer makes offers to business e.g. Priceline
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8Manchester Business School
Professor L.A. Macaulay
“Accept” the Promise
ElectronicServicescape
“Keep” the Promise
Order Fulfillment
“Make” the Promise
Advertising Marketing
Sales
A conceptual framework positioning e-commerce within a ‘promise model’
( Wanninger, Bled e-Commerce conference,1998)
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9Manchester Business School
Professor L.A. Macaulay
Definition of Target Market,
Product, Channels
Communication to the
Customer,Creative
Media Mix
Accept the Promise
Make the Promise
Returns &
Customer Service
Production, Inventory
Management
Receive Order,
Assemble, Pack,
DeliverProcurement,
SuppliersAccounting, Invoicing, Payables,
Receivables
Payment Processes
Keep the Promise
Information Systems, Analytical
Tools, Customer & Operations Databases
Electronic Servicescape
The ‘promise model’ extended
Customer
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10Manchester Business School
Professor L.A. Macaulay
)Innovation and Emerging Business Models, Paul Timmers (see paper enclosed)
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11Manchester Business School
Professor L.A. Macaulay
E-business models in detail
• E-shop – marketing of a company or shopPromotion, cost reduction, additional outlet
• E-procurement – electronic tendering and procurement of goods and services
• E-auction – can be C2C e.g. www.ebay.com or B2C e.g. www.qxl.comElectronic bidding, no need for prior movement of goods or
participants• E-mall – a collection of e-shops
Visits to “neighbouring shops”, aggregation of internet services(www.barclays-square.com)
• 3rd party marketplaceCommon marketing front-end and transactions to support
multiple businesses(e.g. http://www.cendant.com/ctg/cgi-bin/Corp/)
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12Manchester Business School
Professor L.A. Macaulay
Class question
• What new models have emerged in the past five years…
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13Manchester Business School
Professor L.A. Macaulay
New business models..last year’s students…
• E-learning• E-government• Search engines• Lots of business models integrated within one website e.g. Amazon, eBay• E-shop has changed: services now available for individuals and small
business within eBay• ASP provide wider range of services• E-shop now more customization, e-malls obsolete would use search
instead• E-auction more ‘user friendly’ more accessible• Groupware tools extend a range of business models• Virtual communities: now more functional and can combine with business
– Issues: security of personal data– Who are you talking to online?– Could reduce social interaction
• Product customization (e.g. design own shoes)• E-Entertainment• M-commerce• More online advertising for websites, growth of trust services, digital
certificates leading to popularity of e-banking• Change in technology e.g.data mining, profiling, need to make things
more difficult for hackers• Security now a major issue• Improved banking• Efficiency
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14Manchester Business School
Professor L.A. Macaulay
Further e-business models• Virtual communities can be B2C communities e.g.
www.xoom.com or B2B e.g. www.vertical.net• Collaboration platforms – enable collaboration between
business or individuals e.g. www.egroups.com• Value chain integrators – offer a range of services
across the value-chain• Value-chain service providers – specialise in providing
functions for a specific part of a value chain e.g. logistics company www.ups.com
• Information Brokerage – providing information e.g. to assist in buying decisions or for business operations
• Trust services – authenticate the quality of service provided by companies trading on the web e.g. www.which.net/webtraderor www. Truste.org
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15Manchester Business School
Professor L.A. Macaulay
Internet infrastructurecomponents
Physical and network infrastructure components of the Internet (Chaffey)
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16Manchester Business School
Professor L.A. Macaulay
Information exchange between a web browser and web server
Information exchange between a web browser and web server (Chaffey)
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17Manchester Business School
Professor L.A. Macaulay
E-business infrastructure
A five-layer model of e-business infrastructure (Chaffey)
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18Manchester Business School
Professor L.A. Macaulay
Activity
• What other factors/issues affect e-business beyond technology and management?
• Talk in pairs and identify two or three factors/issues
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19Manchester Business School
Professor L.A. Macaulay
PART2: Environmental Factors
• Environmental factors affecting e-business– Social
• Access to and use of e-business• Ethical issues
– Legal– Economic/Political– Technological
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20Manchester Business School
Professor L.A. Macaulay
Social: Ethical issues and data protection
• Ethical Trading• UK Data Protection Act
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21Manchester Business School
Professor L.A. Macaulay
FairAdequate
TransferAccuracy
Rights Specific
RetentionSecurity
FARSTARS
FARSTARS
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22Manchester Business School
Professor L.A. Macaulay
The 8 Principles are informed by the Act….• Fair and honest account of why you want
the data• Adequate collection: obtain enough and no
more• Rights to know what is held about them • Specific purpose for which it was collected• Transfer of personal data is regulated• Accuracy must be maintained at all times• Retention must be justified on the basis of
need• Security of systems for processing and
secure procedures for using
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23Manchester Business School
Professor L.A. Macaulay
Social: Information flows for data protection
Information flows that need to be understood for compliance with
data protection legislation (Chaffey)
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24Manchester Business School
Professor L.A. Macaulay
Legal: Sparrow’s eight areas of concern for e-business
1. Marketing your e-commerce business 2. Forming an electronic contract 3. Making and accepting payment 4. Authenticating contracts concluded over the
Internet5. E-mail risks 6. Protecting intellectual property 7. Advertising on the Internet 8. Data protection
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25Manchester Business School
Professor L.A. Macaulay
Economic / Political
• Ensuring companies competitive– Funding for education and technology:– Promoting new technology e.g. goals for
broadband provision within countries
• Achieving government efficiencies– E-government – all UK services online– Singapore ‘Intelligent Island’
• Taxation regimes– Legislation for offshore trading
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26Manchester Business School
Professor L.A. Macaulay
E-economy framework
A framework describing the e-economy (Chaffey)
Source: Booz Allen Hamilton (2002). Copyright © Crown copyright 2002, Crown copyright material is reproduced with the permission of the Controller of HMSO.
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27Manchester Business School
Professor L.A. Macaulay
Leaders and laggards in e-commerce
Leaders and laggards in e-commerce (Chaffey) (economic/political)
Source: © 2003 Reproduced by permission of the Economist Intelligence Unit. E-readiness Rankings 2003
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28Manchester Business School
Professor L.A. Macaulay
Technological issues
• Rate of change– Which new technologies should we
adopt?• Monitoring for new techniques• Evaluation – are we early adopter?• Re-skilling and training
• Are our systems secure?
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29Manchester Business School
Professor L.A. Macaulay
Group Discussion
Discuss your experiences as a user and as a developer of e-business systems
What are the key problems facing e-business?
• Plan– 5 mins introductions– 30-40 mins discussion– 15 mins feedback
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30Manchester Business School
Professor L.A. Macaulay
Key problems 1
• Security• User friendly interface• Limited bank services• Lack of international credit cards• Cash oriented society• Product oriented not services• English language oriented website• International laws for tansactions• Laws governing activity e.g.
gambling• Lack of face to face contact/trust
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31Manchester Business School
Professor L.A. Macaulay
Key issues 2
• Non e-literate users• Research online but buying locally• Cost barrier to accessing the internet• Price oriented competition• Delivery is slow• Accessibility for blind or other
disadvantaged• Difficult for small business without a
brand name
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32Manchester Business School
Professor L.A. Macaulay
Key issues 3
• Delivery and after sales services• Data protection• Fake websites and security• Usability• Need a business platform that can
run on every platform• Compatibility• Just in time supply chain• How to move your existing business
to and e-business
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33Manchester Business School
Professor L.A. Macaulay
Summary
• Reading for next week• Timmers paper on e-Business
Models• Did we meet our objectives?