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  1. 1. Module 1 Introduction to E-Business Tutor: FSGFrancis Stevens George Krooman-2004
  2. 2. 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 processesFrancis Stevens George Krooman-2004
  3. 3. Introduction to E-Business Overview of E-Business and its various AspectsFrancis Stevens George Krooman-2004
  4. 4. 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 wareFrancis Stevens George Krooman-2004
  5. 5. 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?Francis Stevens George Krooman-2004
  6. 6. Introduction to E-Business What is a Business Model and How it is usedFrancis Stevens George Krooman-2004
  7. 7. 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 EnvironmentFrancis Stevens George Krooman-2004
  8. 8. 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?Francis Stevens George Krooman-2004
  9. 9. What are the B-Web Models Agora Aggregation Value Chain Alliance Distributive NetworksFrancis Stevens George Krooman-2004
  10. 10. What B-ModelComponent Questions for all models Questions specific to Internet business modelsCustomer value Is the company offering What unique features of the something distinctive? internet allows you to offer something distinctive? Can we solve a specific problemScope 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.SustainabilityFrancis Stevens George How difficult for others to copy Krooman-2004 Sustainability- easier or more us? How do we keep making difficult? money?
  11. 11. Introduction to E-Business What are the technologies behind e-BusinessFrancis Stevens George Krooman-2004
  12. 12. 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 SystemsFrancis Stevens George Krooman-2004
  13. 13. Strategic Business Value of Internet based applications Marketing & Product Sales & Support & customerInternet Research Distribution feedbackCapability Data for Market Reach new Access to customer Research customers Comments onlineBenefits Consumer response Low cost distri Immediate response To new products bution to customerTo company problems Environmental Multiple contact scanning points at no incre mental costsOpportunities Lower cost margins Enhanced customerFor Increase Market Share satisfactionAdvantage . Adapted from Mary Cronin-Doing MoreBusiness on the Internet Francis Stevens George Krooman-2004
  14. 14. Introduction to E-Business The Components of an e-business based Marketing SystemFrancis Stevens George Krooman-2004
  15. 15. 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 SocialFrancis Stevens George Krooman-2004
  16. 16. 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 WarehousingFrancis Stevens George Krooman-2004
  17. 17. Introduction to E-Business Using e-business to develop Long Term Marketing RelationshipsFrancis Stevens George Krooman-2004
  18. 18. 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 Francis Stevens George Krooman-2004
  19. 19. What matters in e-Business Relationship Capital Integration Partnership Flexibility ROIFrancis Stevens George Krooman-2004
  20. 20. 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:Francis Stevens George Krooman-2004
  21. 21. 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.Francis Stevens George Krooman-2004
  22. 22. 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 evolvingFrancis Stevens George Krooman-2004
  23. 23. 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 MATTERFrancis Stevens George Krooman-2004
  24. 24. 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 businessmarket and customer What is your value processes need totrends? Proposition? change?•What are the macro economic How do you make Money? •How do we movedrivers of the business change? How to retain customers? from existing model•Which digital technologies How to get talented to an e-modelwill dominate your industry? people? reflecting our company organizational readiness? •What are the Management Francis Stevens George challenges? Krooman-2004