Introduction to-ebusiness


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  • Introduction to-ebusiness

    1. 1. Introduction to e-Business<br />
    2. 2. Part I -- How did we get here?<br />Introduction to e-Business<br />
    3. 3. What is e-business?<br />Any business carried out in electronic form<br />Connecting electronically to your business stakeholders<br />
    4. 4. What is e-business?<br />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<br />Term will probably become redundant within 10 years as all businesses will be “e-businesses”<br />
    5. 5.
    6. 6. Evolution of e-business<br />
    7. 7. Evolution of e-business<br />
    8. 8. “If you’re not an <br />e-business by 2000, you won’t be in business by the year 2001” <br /> – Technology Sales Pitch, 1999<br />
    9. 9. In many ways fear of being left behind sparked the “.com gold rush”<br />
    10. 10.
    11. 11.
    12. 12.
    13. 13.
    14. 14. “If you’re an e-business <br />in 2001, you’re lucky to be alive!”<br /> – Technology Sales Pitch, 2001<br />
    15. 15. “… For a small fee, we’ll show you how to truly leverage the technology we hyped up and sold to you in 1998.”<br /> – Technology Sales Pitch, 2001<br />
    16. 16. Why did the Internet market crash?<br />
    17. 17. Main reasons for “.com” crash<br />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)<br />Information technology costs very high… many people incorrectly assumed setting up e-commerce sites would be cheap (e.g. virtual inventory, virtual office) <br />This combination was a killer for many businesses (not enough customers and revenues and huge infrastructure costs)<br />
    18. 18. How can you separate the hype from reality?!<br />
    19. 19. People usually overestimate the short term of impact and underestimate the long term impact of technology<br />E-Business has really just started…<br />
    20. 20. Evolution of e-business<br />
    21. 21. What’s different than “.com” times<br />Customers now comfortable using the Internet… e.g. 70-80% Internet penetration rate in North America… companies can spend less on marketing<br />Information technology costs have decreased… instead of using EDI, people are using VPN (virtual private networks). <br />While revenues are still challenging to acquire, it’s a lot better than .com times & companies have fine-tuned their models<br />Google has figured out how to earn revenues from advertising… <br />Companies that had difficulty with profits such as PayPal have since been acquired by players like eBay with solid revenues<br />Signs that the “times are a changing” can be seen with these examples from the music industry<br />Madonna’s new contract shows importance of Web-based channels<br />Radiohead challenges traditional distribution approaches <br />
    22. 22. Send/Rcv.<br />Proprietary Format Document<br />EDI Document<br />EDI Encode /Decode<br />EDI Encode /Decode<br />Proprietary Format Document<br />EDI Document<br />Send/Rcv.<br />EDI Process<br />Proprietary<br />Format <br />document<br />Proprietary Format Document<br />EDI<br />document<br />Document<br />Buyer<br />VAN<br />Proprietary Format Document<br />EDI<br />document<br />Vendor<br />
    23. 23.
    24. 24.
    25. 25. Unique attributes of e-business<br />Speed... e.g. crackberry addicts<br />Convenience... e.g. FedEx offloading CSR costs... and consumers happy to accept<br />Customization... e.g. build your own PC at Dell <br />Redefinitionofproductvalue... e.g. Google Web-based software supported by ads <br />Mediaflexibility... Madonna’s new deal<br />
    26. 26. E-business benefits<br />#1 driver is cost reduction<br />Increasing sales<br />Improving customer service<br />Minimizing competitive pressures<br />Expanding market reach<br />Addressing user concerns<br />
    27. 27.
    28. 28. Integrated systems<br />Info systems that are joined together in such a way that they can easily share data between them<br />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)<br />Increased trend towards open standards (e.g. XML-based data transfer such as via RSS... Real Simple Syndication)... Integration costs declining<br />Still really difficult to connect large scale enterprise systems<br />
    29. 29. E-commerce vs. E-business<br /><ul><li>Transaction
    30. 30. “Cash register”
    31. 31. Smaller scale
    32. 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. 33. Encompassed much wider space than e-commerce
    34. 34. All electronic connections between business stakeholders
    35. 35. Websites
    36. 36. Intranets
    37. 37. Extranets
    38. 38. ERP Systems
    39. 39. Driven mainly by cost-savings
    40. 40. Your team project focuses on e-business</li></li></ul><li>Front Office (interfacing with customers)<br />
    41. 41. Back Office (behind the scenes)<br />
    42. 42. Key Terms -- Introduction to e-Business <br />Electronic data interchange (EDI)<br />Intranet<br />Extranet<br />Integrated systems<br />Systems integration<br />Trading exchange<br />E-business<br />E-business models<br />Front-end and back-end of e-business<br />B2C<br />B2B<br />B2G<br />