Module1

Module 1
Introduction to E-Business

Tutor: FSG

Francis Stevens George Krooman-2004

Course Objectives
Gain a broad understanding of eBusiness
Understanding the major themes
Understanding the underlying technologies
Understand the applications of the
tecnologies to particular strategic
processes


Overview of E-Business and
its various Aspects


What is e-Business
E-business is not e-commerce
E-Business is about interaction. It 2000-
represents a more focused and E-business
comprehensive involvement of
the organisation. The platform is
attitude shift.

1997-2000
Transaction
Order Flow
Gross revenue

1994-97
Presence
Website,
Brochure ware

Aspects of E-Business

Business Strategy Technology Strategy Consideration

What is our value proposition? Is e-business an element?

Where are we going, and how long before we get Can the internet accelerate the effort?
there?

Where do we gain strategic advantage? Can the internet provide additional leverage?

Who are our customers? Are they computer literate? Can the internet
improve their buying experience?

Who are our suppliers? Do they have technology interface with our
system?

What are the demands of our stakeholders? Will web enabled commerce improve our
valuation?


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.

Business Model-
Components, linkages
and Dynamics

Change
Performance
Environment

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

Agora
Aggregation
Value Chain
Alliance
Distributive Networks


What B-Model
Component Questions for all models Questions specific to
Internet business models

Customer value Is the company offering What unique features of the
something distinctive? internet allows you to offer
something distinctive? Can we
solve a specific problem
Scope To which customers are we What is the sope of customers
offering our value? that the internet enables us to
reach? Does the net alter my
product/service mix.
Pricing How do we determine price? Does the internet make pricing
different?

Revenue Source Where do the mullah come Are revenue sources different?
from? What are the margins?

Connected Activities What set of activities do we How many new activities must
have to perform to deliver be perform? Can we perform
value? existing activities better?
Implementation Organizational structure, What does the internet do?
systems, people and
environment.
Capabilities Capabilities and capabilities What new capabilities?
gaps.

Sustainability
Francis Stevens George How difficult for others to copy
Krooman-2004 Sustainability- easier or more
us? How do we keep making difficult?
money?

What are the technologies behind
e-Business


Overview of E-Business Applications

E-Business
Applications
The Internet
Intranets
Extranets
Telecommunications
Other Networks
Networks

Enterprise Communication Electronic Commerce Internal Business
and Collaboration Systems

-Electronic Mail -POS -Transaction Processing
-Voice Mail -Web retailing -Intranent Ent. Info. Portal
-Discussion Forum -Online Auctions -CRM
-Data conferencing -Interactive Marketing -Workflow Systems
-Videoconferencing -SCM -Activity Monitoring
-Electronic Meeting -Electronic Fund Transfer -Process Control
-Online Banking -Management Support Systems


Strategic Business Value of Internet based
applications

Marketing & Product Sales & Support & customer
Internet
Research Distribution feedback
Capability

Data for Market Reach new Access to customer
Research customers Comments online

Benefits Consumer response Low cost distri Immediate response
To new products bution to customer
To company problems
Environmental Multiple contact
scanning points at no incre
mental costs

Opportunities
Lower cost margins Enhanced customer
For Increase Market Share
satisfaction
Advantage
.
Adapted from Mary Cronin-Doing MoreBusiness on the Internet


The Components of an e-business
based Marketing System


Traditional Based Marketing System

Place or Distribution

Supply Chain
Product Flow
Management

Product Strategic Strategic
Promotion Customer
Price Plan Goal

Payment Flow
Information Flow Environment:
Technological
Competitive
PoliticalLegaal
Social


E-Business Based Marketing System

Shorter Channels
Dominated by Facilitators
Supply Chain

Extranet Entrepreneurial
Management

Customised
Customised
Products Market of one
Non-linear Strategic
Lower Customer Behaviour
Promotions
Prices
Environment:
Electronic Payments Constant tech. change
Knowledge Management Increased competitive
pressure.
And Data Warehousing


Using e-business to develop Long
Term Marketing Relationships


The Big Picture

Inventory
Management
System

Suppliers
Extranet for EC, access
Inventory, replenish stock,
Head Office: Send documents, specs.
Marketing,Electornic THE INTERNET
Commerce,
Collaboration with
customers,Prospects .

Remote office-
Business Partners- Customers- Intranet links,virtual teams,
Order, shop, get service Interactive communications,
Email,document transfer, Collaboration, computing
/support.
Discussion, extranent

What matters in e-Business

Relationship Capital
Integration
Partnership
Flexibility
ROI


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 Can also be a Woman
of the technologies
Application, Integration
E-Business is a long term
proposition
E-Business is evolving


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

E-Business Models:
E-Business Patterns The Strategic E-Business Designs:
The Foundation, Framework Specific Strategy
The Rules, Challenges that allows you to for what you need
compete to do in the marketplace
in the game

•What models are
better suited to
take advantage of
new business
•What is the new opportunity Who are your target
opportunities?
Based on specific customers?
•What business
market and customer What is your value
processes need to
trends? Proposition?
change?
•What are the macro economic How do you make Money?
•How do we move
drivers of the business change? How to retain customers?
from existing model
•Which digital technologies How to get talented
to an e-model
will dominate your industry? people?
reflecting our company
organizational readiness?
•What are the Management
Francis Stevens George challenges?
Krooman-2004

Module1

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