please note the following... this class is over full, no students will be added if you intend to...
TRANSCRIPT
Please note the following ...
• This class is over FULL, NO students will be ADDED
• If you intend to DROP this class, please let the instructor know immediately
Are You In The Right Place?
MIS-7570
E-Business
Prof. Bob Reck
? ?
Traditional Electronic Commerce Definition
Buying and selling of information, products and services via computer networks/electronic media through all phases of business transactions
DefinitionDefinition
Electronic Commerce
Electronic Commerce
Perspectives And Objectives
• Impact of electronic commerce on business design and strategy (and vice versa)
• Impact on industries and markets
• Technology underpinning for Electronic Commerce (languages, hardware, software, networks, Internet, EDI, standards and protocols)
• Impact on other information systems within a business (ERP, integration needs, value chain elements, knowledge management)
MIS-7570 - Overview of Topics
• Introduction and Key Frameworks and Models
• Business and Technology Perspectives
• Buy Side, Sell Side, SCM Viewpoints
• Components of an E-Comm Business
• Linking Business Strategy and E-Comm
• E-Comm as a Transformation Tool
• EC and Banking/Publishing
• m-Commerce and EC Appliances
• Issues and Red Herrings
http://faculty.babson.edu/reck/mis7570f00,e-campus (?) and K:/Courses/MIS7570
http://faculty.babson.edu/reck/mis7570f00,e-campus (?) and K:/Courses/MIS7570
MIS-7570 - Cases
• e-Steel.com*
• Dell.com*
• GE TPN
• Chemdex.com*
• Online Banking: Wells Fargo and Bank of America
• Napster.com*
• McDonnell Douglas
* Site study is the basis for the case.
Guests
• Eugene Wu, CEO and Joanne Mooradian, VP Marketing - ThinkMart
• Richard Kesner - Hurwitz Group
• Marc Cecere - Giga Information Group
• Richard Kane - Zefer Group
• Karen Temkin and Glenn Mangurian - Frontierworks
• Greg Ross - eStrategies
• Richard Voss - Babson College (?)
• Marcus Torchia - Lernout and Hauspie Systems
• Phillip Bakker - PriceWaterhouseCoopers
• … and ???
Primary And Optional Texts
• PriceWaterhouseCoopers, E-Business Technology Forecast, May 1999
• [T&S] G. Winfield Treese and Lawrence C. Stewart, Designing Systems for Internet Commerce, Addison-Wesley Co., 1998
• [K&R] Ravi Kalakota and Marcia Robinson, e-Business: Roadmap for Success, Addison-Wesley Co., 1999
• (Optional Reading) [D&M] Jack Davis and Susan Merritt, The Web Design Wow! Book, Peachpit Press, 1998
Related Courses
• MIS7520, Designing Organizations with Information Technology (DOIT)
• MIS7571, IT and the Value Chain
• MKT7570, Direct Marketing and E-Commerce
• MKT7540, Retailing in a Networked Environment
• OPS7520, Supply Chain Management
See the career track section on GlobeNet.
Grading
30%
30%
40%
Class ParticipationCase StudyTeam Bus. Plan
Class Participation - Major Elements
• Professional behavior
• Participation in class discussions
• Active listening
• “Tuned in” body language
• Demonstration that you did homework
• Insights into material
• Knowledge building from class to class
• Personal mastery
• Giving 110%
• No games or e-mail on the PCs at the back of the room!! ;-)
Case Study
• Individually prepared
• Unique company or industry
• Electronic commerce or electronic business
• Field work, research, analysis, Web, library, visits
• Resembles Harvard Case Studies
• May use/show Web sites, presentations, video, other media
• Encouraged to post on Web for open access to rest of class or others
• Detailed contents in syllabus
• Due November 13-14, 2000
Initial Company List
• Ariba.com• Boeing.com (maintenance)
• CheckFree (online billing)• CSX.com (freight)
• DrKoop.com (medical)• Ernie.ey.com (consulting)• Ernst & Young (Knowledge Mgt.)• Expedia.com (travel)• geocities.com (portal)• Hilton.com (hotels)
• Home Depot• Homestore.com• HSN.com (Home Shopping Net)
• Imark.com• ImproveNet.com (DIY)• Millipore• Miningco.com (web guides) • N2K.com (music)• Nolo.com (legal info)• Open Market.com (EC
software)• Owners.com (home sales)• Plasticsnet.com• Priceline.com (travel plus)• SpringStreet.com (apartments)• Tradeout.com
Instructor invites othersuggestions. Please get
approval before proceeding.
Initial Topics List
Instructor invites othersuggestions. Please get
approval before proceeding.
• Advertising (Agency Side)• Auctions Online• Automobile Industry (SCM)• Automobile Industry (Sell Side)• Buy Side Software• Commercial Insurance• CRM Software• Cyberwar (international)• Distance Learning• E-Comm Costs (re Business Models)• Entertainment• ERP Integration with E-Comm• Banking (update class case)• Education and Certifications• Fashion Sales• Financial Services• Government Interventions (e.g., taxes,
etc.)• Government Online (Fed/State/Local)• Grocery Industry (SCM, comparisons)• ISPs/CSPs/ASPs• Knowledge Management
• Medical Advice and Support• Music Online (MP3, Napster, etc.)• News Services• Non-US E-Comm (e.g., pick your
own geography)• Online Pharmacies• Online Politics• Personal Insurance• Purchasing Services• Real Estate• Recruiting/Job Finding• SCM (Supply Chain Management)
and ERP• Search Engines• Sell Side Software• Streaming Media• Toys Online (comparisons)• Trading Hubs• Travel (comparisons)• Vacation Homes Online• Zines (comparisons)
Team Web-Based Project
• Teams of two to four students
• Propose, design and develop an electronic commerce business
• New EC initiative, reinvention of troubled initiative, EC initiative for a mature company
• Short business plan
• Demonstration business “site”
• Encouraged to post on Web for open access to rest of class
• Detailed contents in syllabus and in second class on business plans
• Presentation to class
• Due December 4-5, 2000
Traditional Electronic Commerce Definition And Implications
Buying and selling of information, products and services via computer networks/electronic media through all phases of business transactions • Buyers and sellers can directly connect• Full digital information exchange between trading partners• Time and place limits almost no factor• Interactive with attendant impact on customer behavior• Updated in real time• All or most trading steps and transactions included• Complete restructuring of the channel• New roles for IS and other organizational units• Major change!!
DefinitionDefinition
ImplicationsImplications
Twelve Changes That Put E-Comm On The CEO’s Agenda - E-Comm Will …
• Change the basis of competition
• Change how we work (reengineer) and level of coordination
• Change how we market and sell
• Change timing and pace of business
• Change relationships with suppliers, customers and others
• Change how we allocate resources
• Change image
• Change culture
• Change products and services
• Change how we get/retain staff
• Change how we provide service
• Change how we invoice and get paid “12”“12”
Who’s Making Money (Or Trying To)?
Mature Businesses
Start-Ups
IT Companies
Communications
Infrastructure Providers
Consulting
Venture Capital/ Investment
Government
Past Approaches To Electronic Commerce
• World Wide Web - shifts from other media
• “Run it up the flagpole and see if anyone salutes”
• Focus on catalogue and order capture - No change in sales model
• Complex accommodation to current channels - No change in business model
• Focus on the “usual suspects” - the same customer set
• Low budget
• Don’t give too much away
• Look with awe at “front-page” successes
Hit any key!
Electronic Commerce “Code”
•Netrepreneur•Cybermediary/Infomediary•E-lancers•Electronic affinity group•Sites and servers•Channels•Mall•Supply Chain Management•Search agent or engine•Authentication•Interactive•Digital signatures•Nanobucks•Electronic wallets•Portal Partner•Channel Partner
•Web•ISPs•URLs•HTTP/HTML/XML•Java•Cookies•Real Audio/Video•Zines•Links•Hits•Frames•Bots•Webcam•Spam•Bandwidth•Internet2
• Auctions• B2B• B2C• B2G• m-Comm• KM• Personalization• ASPs/ESPs/CSPs• ERP and EAI• Sell Side/CRM• Buy Side• FTP• SSL and SET• Public keys and
private keys
Key Frameworks For Course
• IT-Value
• 7-S
• SWOT
• Business “Diamond”
• Porter Industry Forces
• Value Chain
• CRLC
Business Value
BusinessValue
BusinessValue
Technology
EfficiencyEffectivenessTransformationCompetitive
Advantage
Business Value Comes From Business Change
No !!!
Strategy
BusinessChange
BusinessChange
BusinessValue
BusinessValue
Technology
Creates
Drives
Directs
Yields
Business Diamond
ManagementProcesses
ManagementProcesses
Culture,Beliefs
andNorms
Culture,Beliefs
andNorms
Informationand
InformationSystems
Informationand
InformationSystems
Organization,Skills and
Jobs
Organization,Skills and
JobsBusiness
Processes
BusinessProcesses
“7-S” Model
Reference: Athos and Pascale, “The Art of Japanese Management”
StructureStructure
StrategyStrategy SystemsSystems
SkillsSkills StyleStyle
SharedValues
SharedValues
StaffStaff
SWOT Analysis Framework
??Strengths Weaknesses
Opportunities Threats
Business Strategy - Porter’s Five Forces
PotentialEntrants
PotentialEntrants
SuppliersSuppliers BuyersBuyers
SubstitutesSubstitutes
Threat of new entrants
Bargainingpower ofsuppliers
Threat of substituteproducts or services
Bargaining power of buyers
Industry Competitors
Rivalry Among ExistingOrganizations
Business Strategy - Value Chain Analysis
Company
SupportActivities
Firm Infrastructure
Human Resource Management
Technology Development
Procurement
ProductDevelop-
ment
OperationsLogistics Marketing
and Sales
Service
Primary Activities
Ma
rg
in
Manufacturer Customer
Customer Satisfaction = Product Quality + "Moments of Truth"
Choose/Specify
Pay
Deliver
StatusInquiry
Order
Replace/Upgrade
Maintain/Repair
Hotline
Real TimeSupport
Joint Initiatives
AccountFor
Inventory
Train
"Get It"Product/Service
Delivery
"Fix It"After SaleServicing
'Use It"Usage Enrichment
CustomerResource Life Cycle
Install
The Internet : A Different Look
• Unique Business Propositions
• Customers come to you
• New channel
• Target advertising markets
• Businesses without inventory
• Sharing of viewpoints
• Ability to be small but act big
• “Personalized” products
Illusion of global markets
Illusion of a business
Illusion of community
Illusion of size
Illusion of skills
Illusion of customization
The illusion is the reality!!The illusion is the reality!!
Business Models - Simplified List
• Top-Level “Transplanted” Models
– Seller controlled - IBM.com
– Buyer controlled - GE TPN
– Neutral
• Internet-Native Models (cost structure enabled)
– Portals and CSPs
– Auctions (dynamic swaps, real time)
– Infomediaries
• Vertical hubs - Chemdex
• Functional hub - freelance.com
• E-shop - pcwarehouse.com, amazon.com*
• E-mall - fashionmall.com
• Advertising base - yahoo.com
• Subscription base - wsj.com
• Direct marketing - julie.com
• Freeware - realplayer.com
• Free content - napster, mp3.com
• Auctions - e-bay.com
• Third-party marketplace
• Virtual communities - pchelp.com
• Information brokerages and search services - excite.com
CLASS 2
Tentative
Slides