module1

Francis Stevens George Krooman-2004

Module 1Introduction to E-Business

Tutor: FSG


Course Objectives

Gain a broad understanding of eBusinessUnderstanding the major themesUnderstanding the underlying technologiesUnderstand the applications of the tecnologies to particular strategic processes


Introduction to E-Business

Overview of E-Business and its various Aspects


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


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



What is a Business Model and How it is used


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


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?


What are the B-Web Models

AgoraAggregationValue ChainAllianceDistributive Networks


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



What are the technologies behind e-Business


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


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.



The Components of an e-business based Marketing System


Traditional Based Marketing System

Supply Chain

CustomerProductPrice Promotion Strategic

GoalStrategic

Plan

Place or Distribution

Product FlowManagement

Payment FlowInformation Flow Environment:

TechnologicalCompetitivePoliticalLegaalSocial


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



Using e-business to develop Long Term Marketing Relationships


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


What matters in e-Business

Relationship CapitalIntegrationPartnershipFlexibilityROI


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:


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.


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


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


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