1. Introduction to e-Business

2. Part I -- How did we get here? Introduction to e-Business

3. What is e-business? Any business carried out in electronic form Connecting electronically to your business stakeholders

4. What is e-business? E-business is the strategic use of technology, particularly the Internet, to integrate and streamline the business processes, enterprise applications, and organizational structure of a business and create a high performance business model Term will probably become redundant within 10 years as all businesses will be “e-businesses”

6. Evolution of e-business

7. Evolution of e-business

8. “If you’re not an e-business by 2000, you won’t be in business by the year 2001” – Technology Sales Pitch, 1999

9. In many ways fear of being left behind sparked the “.com gold rush”

14. “If you’re an e-business in 2001, you’re lucky to be alive!” – Technology Sales Pitch, 2001

15. “… For a small fee, we’ll show you how to truly leverage the technology we hyped up and sold to you in 1998.” – Technology Sales Pitch, 2001

16. Why did the Internet market crash?

17. Main reasons for “.com” crash Not enough customers comfortable using the Internet… this meant companies had to spend a disproportionately high percentage of their budgets on marketing (e.g. 40-50% instead of usual 5% for traditional business) Information technology costs very high… many people incorrectly assumed setting up e-commerce sites would be cheap (e.g. virtual inventory, virtual office) This combination was a killer for many businesses (not enough customers and revenues and huge infrastructure costs)

18. How can you separate the hype from reality?!

19. People usually overestimate the short term of impact and underestimate the long term impact of technology E-Business has really just started…

20. Evolution of e-business

21. What’s different than “.com” times Customers now comfortable using the Internet… e.g. 70-80% Internet penetration rate in North America… companies can spend less on marketing Information technology costs have decreased… instead of using EDI, people are using VPN (virtual private networks). While revenues are still challenging to acquire, it’s a lot better than .com times & companies have fine-tuned their models Google has figured out how to earn revenues from advertising… Companies that had difficulty with profits such as PayPal have since been acquired by players like eBay with solid revenues Signs that the “times are a changing” can be seen with these examples from the music industry Madonna’s new contract shows importance of Web-based channels Radiohead challenges traditional distribution approaches

22. Send/Rcv. Proprietary Format Document EDI Document EDI Encode /Decode EDI Encode /Decode Proprietary Format Document EDI Document Send/Rcv. EDI Process Proprietary Format document Proprietary Format Document EDI document Document Buyer VAN Proprietary Format Document EDI document Vendor

25. Unique attributes of e-business Speed... e.g. crackberry addicts Convenience... e.g. FedEx offloading CSR costs... and consumers happy to accept Customization... e.g. build your own PC at Dell Redefinitionofproductvalue... e.g. Google docs...free Web-based software supported by ads Mediaflexibility... Madonna’s new deal

26. E-business benefits #1 driver is cost reduction Increasing sales Improving customer service Minimizing competitive pressures Expanding market reach Addressing user concerns

28. Integrated systems Info systems that are joined together in such a way that they can easily share data between them In past, integration was a key part of e-business development costs (connecting system A to B could cost 4x more than the actual systems cost) Increased trend towards open standards (e.g. XML-based data transfer such as via RSS... Real Simple Syndication)... Integration costs declining Still really difficult to connect large scale enterprise systems

30. “Cash register”

31. Smaller scale

32. Your individual projects focuses on e-commerce although there are small scale components of e-business (e.g. Integration with third party websites)

33. Encompassed much wider space than e-commerce

34. All electronic connections between business stakeholders

35. Websites

36. Intranets

37. Extranets

38. ERP Systems

39. Driven mainly by cost-savings

41. Back Office (behind the scenes)

42. Key Terms -- Introduction to e-Business Electronic data interchange (EDI) Intranet Extranet Integrated systems Systems integration Trading exchange E-business E-business models Front-end and back-end of e-business B2C B2B B2G