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  • 1. EC 589 -E-Commerce Management Introduction From E-Commerce to E-Business DePaul University – CTI John Fisher
  • 2. Agenda
    • Course Overview
    • The New Economy
    • From E-Commerce to E-Marketplace
    • Profile of customers
    • E-Business Transformation
    • An Example
      • Implications for the Association Segment
    • Next Class
  • 3. Course Overview
    • EC 589 – E-Commerce Management
      • Capstone course for ECT Majors
      • Development of e-business strategies
      • Approaches and models for business transformation using the Web
      • The fall of the dot-coms
      • Implementation issues in a brick & mortar world again
  • 4. Course Overview
    • Distance Learning Section
      • Same assignments
      • Same requirements
      • COL section will participate in two classes
    • Course Format
      • Group discussion rather than formal lecture
      • Case studies and recent topics in the news
      • Guest speakers
  • 5. Textbooks
    • Main Text:
      • E-Business 2.0: Roadmap for Success .  By Ravi Kalakota and Marcia Robinson, Addison-Wesley, 2000.  ISBN 0-201-60480-9
    • Supplemental Text (choose one):
      • Now or Never: How Companies Must Change Today to Win The Battle for Internet Consumers .  By Mary Modahl, 2000. ISBN 0-06-662012-0
      • Enterprise E-Commerce by Peter Fingar, Harsha Kumar, Tarun Sharma (January 2000) Meghan-Kiffer Press; ISBN: 0929652118
      • Futurize Your Enterprise: Business Strategy in the Age of the E-customer by David Siegel (September 16, 1999) John Wiley & Sons; ISBN: 0471357634
      • Dynamic E-Business Implementation Management : How to Effectively Manage E-Business Implementation (E-Business Solutions) by Bennet P. Lientz, Kathryn P. Rea (July 2000) Academic Pr; ISBN: 0124499805
  • 6. Additional Material & Resources
    • Other reading:
      • Located in Course Documents section of COL Web
      • HBR, McKinsey Quarterly, Gartner Group
      • Current news articles – “In the News”
    • Other resources
      • Class web page, BusinessWeek.com, etc
        • See Link page on Class Web
      • Your company or one you know
  • 7. Assignments
    • #1 Industry Impact Analysis – 20% (Individual)
      • 5 Page paper & class presentation (Sept 19 th )
    • #2 Case Analysis 1 – 20% (July 9 th ) (Group)
      • 5 Page paper & 1 page summary for class discussion
    • #3 Case Analysis 2 - 20% (Oct 3 rd ) (Individual)
      • 5 Page paper & 1 page summary for class discussion
    • #4 E-Business Analysis – 25% (Nov 21 st ) (Group)
      • 8 Page paper & class presentation
    • Class Participation – 15%
      • Discussion groups on web page and class discussion
  • 8. Introductions
    • John Fisher
        • M.S. DePaul University 1989
        • CIO and EVP - Smith, Bucklin and Associates (www.sba.com)
        • Previously CNA Insurance and Continental Bank
      • Phone (312) 464-6100 x3313
      • E-mail: jfisher@cti.depaul.edu or John_Fisher@sba.com
      • Office Hours: 5:00 - 5:45 Wednesday room 1108
      • Class Web Page: http://facweb.cs.depaul.edu/jfisher/EC589/
      • COL Web Page: http://dlweb.cti.depaul.edu/auth/login.asp
    • 2 Minute Introduction:
        • Name, Company, Title/Responsibilities
        • Web page, e-mail address
        • Something else about yourself
        • What you expect to get out of this class?
  • 9. Setting the Stage
  • 10. Evolvement of E-Commerce
    • Brochureware
    • Consumer E-Commerce (B2C)
      • Transaction, Personalization, Service
    • E-business (B2B)
      • Internet, Intranet, and Extranet
    • E-Marketplace (B2B)
      • Vertical and Horizontal
  • 11. Rise of the Internet Usage
    • 100 million people are online in US today, up from 36 million in 1996
    • Internet service market will grow from $1.3 billion (1997) to $57 billion by 2003.
    • Online retailing (b2c) will grow from $ 20 billion (1999) to $188 billion in 2004.
    • Online trade (b2b) will grow to $2.7 trillion by 2004, 53% from eMarketplace.
  • 12. The New Economy
  • 13. Driving Principles of the New Economy
    • Intangible matters more. Information, convenience, and time are more important than physical products.
    • Space has vanished. Global and instant connection.
    • Time is collapsing. Instant interactivity breeds accelerated change.
    • People are the prime driving force. Brain power and innovativeness determines success.
  • 14. Driving Principles of the New Economy
    • Growth is accelerated by network.
    • Values rise exponentially with market share.
    • Efficiency is achieved through infomediaries.
    • Markets are driven by consumers and buyers.
    • Personalization defines 1:1 interaction.
    • Ubiquity of information and services is expected.
  • 15. From eCommerce to eMarketplace
  • 16. From E-Commerce to E-Marketplace
    • Internet Commerce (B2C)
    • Intranets
    • Extranets
    • E-business integration
    • E-Marketplace
  • 17. The Internet Value Proposition
    • Transform customer relationship
      • Customer centered, self service, 1:1; choices; delivery to customer location; customer needs
    • Displace traditional source of values
      • Physical vs. digital value
      • Economies of scale vs economy of scope
      • Mass produced vs mass customized
      • Information vs. knowledge value
      • Distribution as constraints vs. enabler
      • Local vs. global
  • 18. B2C Business Models
    • Merchant Model
      • virtual merchants
      • Catalogue merchants
      • Click & Brick
    • Advertising Model
      • Horizontal portal
      • Vertical portal
      • Personalized portal
    • Intermediary (Brokerage)
      • Buy/sell fulfillment
      • Buyer/demand aggregator
      • Virtual mall
      • Hypermediary (financial settlement)
      • Auction broker
      • Reverse auction
  • 19. Four Strategies
    • Channel Master
      • Integrate the commerce value chain with existing operations; build deeper relationship with customers
    • Customer Magnet
      • Community and knowledge sharing
    • Value Chain Pirate
    • Digital Distributor
  • 20. The Commerce Value Chain Attract Act React Interact Get and keep customer interest Turn interest into orders Manage orders Service customers Advertising Marketing channels media Catalog Sales static dynamic Order capture-- Shopping Cart Payment Fulfillment goods Customer service Order tracking
  • 21. Traditional Value Chain Logistics Operation R&D Marketing & Sales Customer Service Mass Market Customers Suppliers
  • 22. B2B Business Models
    • Firm Based
      • Cisco
      • FedEx
      • UPS
    • Enterprise Systems (ERP) :
      • mySAP.com
        • Marketplace
        • Workplace
        • E-community marketplaces
    • Virtual SCM
      • Sun Data uses FedEx
    • Marketplaces (Intermediary)
      • Vertical Hubs
        • E-steel
        • Chemedx
      • Functional Hubs
        • MRO.com
        • BidCom
      • Marketmakers
      • GEIS
      • Viewlocity -- High volocity supply chain
  • 23. Value Chain Decomposed Logistics Operation R&D Marketing & Sales Customer Service Logistics Logistics Operation Operation R&D R&D Marketing & Sales Marketing & Sales Customer Service Customer Service eMarket eMarket
  • 24. B2B E-Marketplaces
    • Catalog Model
      • Aggregating suppliers and buyers between participants in the hub (Chemdex, MRO.com)
    • Auction Models
      • Spatial matching of buyers and sellers (for one of a kind, non standard, perishable (Auction.com)
    • Exchange Models
      • Temporal matching of supply and demand, real-time bid-ask matching (e-Steel)
  • 25. E-Marketplaces: Networking Value Chain Logistics Specialists Operation Marketing & Sales Customer Service eMarket Place Component Suppliers
  • 26. Next Class
    • E-Business Strategy
    • Readings in text and Supplemental material
    • Come prepared to discuss the topics