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NEXT Session One: Basic Principles

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  • 1. Session One: Basic Principles Hussein H. Owaied, Ph.D. Khalil A. Abuosba, M.Sc. Pre-Assessment E-Management and Information Technology UNDER CONSTRUCTION Distance Learning Series
  • 2. Session One: Basic Principles Part One: Introduction to e-Management Part Two: Business Models Part Three: Introduction to I.T. and Systems Concepts Part Four: Driving Forces for e-Management Part Five: Barriers to e-Management SWITCHBOARD e-MANAGEMENT & I. T. Pre-Assessment Distance Learning Series
  • 3. Learning Objectives
    • After completing this session the reader should be able to:
        • Define the meaning and scope of e-business and e-commerce and their different elements.
        • Summarize the main reasons for adoption of e-commerce and e-business and barriers that may restrict adoption.
        • Use resources to define the extent of adoption of the Internet as a communications medium for consumers and businesses.
        • Outline the business challenges of introducing e-business and e-commerce to an organization.
    Basic Principles Switchboard
  • 4. Part One: Introduction to e-Management Basic Principles Basic Principles Switchboard Part One: Introduction to e-Management Part Two: Business Models Part Three: Introduction to I.T. and Systems Concepts Part Four: Driving Forces for e-Management Part Five: Barriers to e-Management E-Management and Information Technology Distance Learning Series
  • 5. Toward the Digital Firm: The New Role of Information Systems in Organizations [LAU]
    • Information systems play a strategic role in the life of the firm because today's systems can directly affect how managers decide, how senior managers plan and even what products and services are produced. There is a growing interdependence between business strategy, rules and procedures and information systems software, hardware, data, and telecommunications.
    Basic Principles Switchboard
  • 6. e-Management
    • e-Management may be defined as the act, manner, or practice of
    • managing, handling, supervising, or controlling business processes and
    • activities electronically by using information technology infrastructures.
    • E-Management effects three different entities:
      • e-Business
      • e- Government
      • e-Consumer
    Basic Principles Switchboard
  • 7. Strategy and Applications: The McKinsey 7S Framework Basic Principles Switchboard
  • 8. Mapping the McKinsey 7S Instrument to e-Management
    • Structure
      • How will be the e-business change be managed? [Change Management].
    • Systems
      • Do new operating procedures or business processes need to be introduced?
      • Can existing IS be used to implement change or will new systems be required?
    • Style
      • Is the current possibly conservative, style of the company consistent with the way the company wants to project its image.
      • Will decisions be made fast enough?
      • Will risks be taken to trial new business models and new technology?
    • Staff
      • Is the appropriate mix of staff available?
    • Skills
      • Are the correct skills available internally?
      • What training is required?
      • Do we need to outsource some of the services
    • Strategy
      • Defining priorities, restructuring, business models, marketplace restructuring, market and product/service development, Positioning and differentiation.
    • Superordinate Goals
      • This refers to the higher goals of the company that may be encapsulated in the mission statement
    Basic Principles Switchboard
  • 9. Toward the Digital Firm [LAU] Basic Principles Switchboard
  • 10. Digital Firms & Business Processes
    • Digital firms are ones where nearly all significant relationships with customers, suppliers, and employees are digitally enabled and mediated. Core business processes are accomplished thorough digital networks spanning the entire enterprise or linking the enterprise to other organizations. [LAU]
    • Business processes are the unique ways in which organizations coordinate and organize work activities, information, and knowledge to produce a product or service. Filling an order is an example of a business process.
    Basic Principles Switchboard
  • 11. e-Business
    • e-Business is defined as the transformation of key business processes through integrating of information and internetworking technologies.
    • Examples of business processes and applications:
      • Order Processing
      • Stock Control
      • Personnel Management
      • Budgetary Control
      • Modelling
      • Strategic Planning
    Basic Principles Switchboard
  • 12. The e-Business Environment [CHA] Basic Principles Switchboard
  • 13. e-Commerce
    • e-Commerce is defined as the sharing of business information, maintaining business relationships,and conducting business transactions by mans of telecommunications networks [CHA].
    • Examples:
      • Buying books online (transactional)
      • Selecting a car online (informational)
      • Interacting with brand online (relationship building / experiential, e.g. www.tango.com )
      • Asking a customer service query, e.g. www.easyJet.com
    Basic Principles Switchboard
  • 14. Perspective of E-commerce
    • 1. A communications perspective: the delivery of information, products/services or payment by electronic means.
    • 2. A business process perspective: the application of technology towards the automation of business transactions and workflows.
    • 3. A service perspective: enabling cost cutting at the same time as increasing the speed and quality of service delivery.
    • 4. An online perspective: the buying and selling of products and information online.
    Basic Principles Switchboard
  • 15. The distinction between buy-side and sell-side e-commerce [CHA] Basic Principles Switchboard Buy-side e-commerce refers to transactions to procure resources needed by an organization from its suppliers.
  • 16. The distinction between buy-side and sell-side e-commerce [CHA] Basic Principles Switchboard Sell-side e-commerce refers to transactions involved with selling products to an organization’s customers.
  • 17. Which is correct? [CHA] Basic Principles Switchboard (a) and (b) viewpoints are misleading, however (c) is the most realistic .
  • 18. Issues for managers
    • How do we explain the scope and implications of e-business and e-commerce to staff?
    • What are the full-range of benefits of introducing e-business and what are the risks?
    • How great will the impact of the Internet be on our business?
    • What are the current and predicted adoption levels?
    • How do we assess the validity of forecasts?
    Basic Principles Switchboard
  • 19. Business drivers to going online Basic Principles Switchboard Marketing approach Driver 6 5 Ditto 4 Competitive threats Data on those researching and buying online 3 Customer demand Give examples of SME 2 Increase reach to new markets Give real examples 1 Reduced costs
  • 20. Part Two: Business Models Basic Principles Basic Principles Switchboard Part One: Introduction to e-Management Part Two: Business Models Part Three: Introduction to I.T. and Systems Concepts Part Four: Driving Forces for e-Management Part Five: Barriers to e-Management E-Management and Information Technology Distance Learning Series
  • 21. e-Management and Business Models
    • e-Management effects several business models through interactions:
        • Business to Business (B2B)
        • Business to Consumer (B2C & C2B)
        • Government to Consumer (G2C & C2G)
        • Government to Business (G2B & B2G)
        • Government to Government (G2G)
        • Consumer to Consumer (C2C)
    Basic Principles Switchboard
  • 22. Differences in characteristics of B2C and B2B trading Basic Principles Switchboard
  • 23. Benefits of B2B and B2C Company
      • Cost reduction
      • New capability
      • Communication
      • Customer service
      • Control
      • Competitive advantage
    Basic Principles Switchboard
  • 24. Exercise
    • Visit the following sites/pages, map these sites to business models (B2B, B2C, C2B, G2C, C2G, G2B, B2G, G2G, or C2C)
    • http://www.icann.org/
    • http://www.internettrafficreport.com
    • http://www.amazon.com
    • http://www.nic.gov.jo/En/nitce.htm
    • http://www.hmrc.gov.uk/businesses/index.shtml
    • http://www.hmrc.gov.uk/individuals/
    • http://hub.ebay.com/buy
    • http://www.intel.com
    • http://www.intel.com/reseller/index.htm
    • http://www.att.com/directory/
    • https://web.gsec.ford.com/default.asp
    Basic Principles Switchboard
  • 25. Part Three: Introduction to I.T. and Systems Concepts Basic Principles Basic Principles Switchboard Part One: Introduction to e-Management Part Two: Business Models Part Three: Introduction to I.T. and Systems Concepts Part Four: Driving Forces for e-Management Part Five: Barriers to e-Management E-Management and Information Technology Distance Learning Series
  • 26. Information Technology
    • Information Technology (IT) is defined as the range of electronic technologies for collecting, processing, and distributing data, and consists primarily of computer and communication technologies [SIM]
    • Examples of I. T.
      • Touch-screen Display
      • Click-type keyboard
      • SoftTouch-type keyboard
      • Network Interface Card
      • Software (software are a component of any computer system)
      • Mechanical Mouse
      • Optical Mouse
      • Printer
      • Kiosk
    Basic Principles Switchboard
  • 27. Information Technology Infrastructure
    • An IT infrastructure is a set of IT components designed and implemented to satisfy the information needs of a specific community of users. It comprises the elements that make up the physical system supporting data collection, processing, and presentation [SIM]
    • Examples of I. T. infrastructure
      • Computer Systems
      • Information Systems
      • Distributed Information Systems
    Basic Principles Switchboard
  • 28. Computer System Basic Principles Switchboard
  • 29. Information System Basic Principles Switchboard
  • 30. Distributed Information System
    • A Distributed Information System is defined as a collection of autonomous computers connected by a computer network to enable resource sharing and co-operation between applications to achieve a given task.
    Basic Principles Switchboard
  • 31. Part Four: Driving Forces for e-Management Basic Principles Basic Principles Switchboard Part One: Introduction to e-Management Part Two: Business Models Part Three: Introduction to I.T. and Systems Concepts Part Four: Driving Forces for e-Management Part Five: Barriers to e-Management E-Management and Information Technology Distance Learning Series
  • 32. Drivers for e-commerce Source : DTI (2002) [CHA] Basic Principles Switchboard
  • 33. Goals of e-Management
    • High Productivity of knowledge and service workers
    • Product and Service Quality
    • Competitive Response
    • Globalization
    • Security
    Source : DTI (2002) Basic Principles Switchboard
  • 34. Drivers for e-Business and E-Commerce
    • Cost/efficiency drivers
      • Increasing speed with which supplies can be obtained
      • Increasing speed with which goods can be dispatched
      • Reduced sales and purchasing cost
      • Reduced operating Cost
    • Competitiveness Drivers
      • Customer demand
      • Improving the range and quality of services offered
      • Avoid losing market share to business already using e-commerce
    Basic Principles Switchboard
  • 35. Tangible benefits from e-Business and e-Commerce
    • Increased sales from new sales leads giving rise to increased revenue from new customers/markets, existing customers (repeat selling), and existing customers (cross selling).
    • Marketing cost reductions from: reduced time in customer service, online sales, and reduced printing and distribution costs of marketing communications.
    • Supply Chain cost reductions from reduced level of inventory, increased competition from suppliers, and shorter cycle time in ordering.
    • Administrative cost reductions from more efficient routine business processes such as recruitment, invoice payment and holiday authorization.
    Basic Principles Switchboard
  • 36. Intangible benefits from e-Business and e-Commerce
    • Corporate image communication
    • Enhance brand
    • More rapid, more responsive marketing communications including PR
    • Faster product development lifecycle enabling faster response to market needs
    • Improved customer services
    • Learning for the future
    • Meeting customer expectations to have a web site
    • Identify new partners, and support existing partners better
    • Better management of marketing information and customer information
    • Feedback from customers on products
    Basic Principles Switchboard
  • 37. Driving Forces for e-Management
    • Assessment of Porter’s Five Forces Model
      • Service Requester (in e-Commerce  buyer)
      • Service Provider (in e-Commerce  supplier)
      • New entrants
      • Substitutes
      • Rivalry
    Basic Principles Switchboard
  • 38. I. T. opportunities and e-Management
    • Social and Environmental Responsibility
    • Extensibility
    • Integration
    Basic Principles Switchboard
  • 39. Tools for e-Management
    • Business Process Re-engineering (BPR)
    • Outsourcing
    • Alliances
    Basic Principles Switchboard
  • 40. BPR Basic Principles Switchboard
  • 41. Outsourcing Basic Principles Switchboard
  • 42. Alliances Basic Principles Switchboard
  • 43. Part Five: Barriers to e-Management Basic Principles Basic Principles Switchboard Part One: Introduction to e-Management Part Two: Business Models Part Three: Introduction to I.T. and Systems Concepts Part Four: Driving Forces for e-Management Part Five: Barriers to e-Management E-Management and Information Technology Distance Learning Series
  • 44. Barriers & Pitfalls to e-Management Basic Principles Switchboard Marketing approach Barrier Illustrate potential benefits 5. No need Consider education and/or outsourcing 4. Lack of skills Illustrate low cost options 3. Costs Reassurance 2. Confidentiality Reassurance
    • Fraud
  • 45. Barriers to e-commerce Source : DTI (2002) Basic Principles Switchboard

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