Transformation (e-commerce to e- business)

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From E-Commerce to E-Business

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Table1.1 The Rules of e-Business
Rule1 Technology is no longer an afterthought in
forming business strategy, but the actual
cause and driver.
Rule2 The ability to streamline the structure,
influence, and control of the flow of
information is dramatically more powerful
and cost-effective than moving and
manufacturing physical products.
Rule3 Inability to overthrow the dominant,outdated
business design often leads to business
failure.

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Table1.1 The Rules of e-Business(Cont.)
Rule4 The goal of new business designs is to create
flexible outsourcing alliances between
companies that not only off-load costs, but
also make customers ecstatic.
Rule5 e-Commerce is enabling companies to listen to
their customers and become either”the
cheapest,” ”the most familiar,” or “the best.”
Rule6 Don’t use technology just to create the
product. Use technology to innovate,
entertain, and enhance the entire experience
surrounding the product, from selection and
ordering to receiving and service.

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Table1.1 The Rules of e-Business(Cont.)
Rule7 The business design of the future
increasingly uses reconfigurable e-business
community models to best meet customers’
needs.
Rule8 The tough task for management is to align
business strategies, processes, and
applications fast, right, and all at once.
Strong leadership is imperative.

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Linking Today’s Business with
Tomorrow’s Technology
Rule1 Technology is no longer an afterthought in
forming business strategy, but the actual
cause and driver.

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e-Business= Structural Transformation
Rule2 The ability to streamline the structure,
influence, and control of the flow of
information is dramatically more powerful
and cost-effective than moving and
manufacturing physical products.
Transformation Stakes Are Very High
Rule3 Inability to overthrow the dominant,outdated
business design often leads to business
failure.

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e-Business Requires Flexible Business Designs
Rule4 The goal of new business designs is to create
flexible outsourcing alliances between
companies that not only off-load costs, but
also make customers ecstatic.
Value Chain Disaggregation and Reaggregation
-Disaggregation allows firms to separate the means
(products) from the ends (customer needs).
-Reaggregation enables business to create a
configuration that streamlines the entire value
chain.

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e-Business Requires Flexible Business Designs
The Road Ahead: Steps to a New Beginning
1.Challenge traditional definitions of value.
2.Define value in terms of the whole customer experience.
3.Engineer the end-to-end value stream.
4.Integrate, integrate, and integrate some more. Create a
new technoenterprise foundation that is customer-centric.
5.Create a new generation of leaders who understand how to
create the digital future by design, not by accident.

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Challenge Traditional Definitions of
Value.
‧Speed
‧Convenience
‧Personalization
‧Price
‧Example: Domino’s Pissz, Dell, Amazon

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Challenge Traditional Definitions of Value.
E-Commerce is Changing the Notion of Value
．Value innovation across speed, convenience,
personalization, and price has accelerated due to Web and
e-Commerce
Rule5 e-Commerce is enabling companies to listen to
their customers and become either”the
cheapest,” ”the most familiar,” or “the best.”
– Wal-Mart’s”Every Day low Prices”: cheapest
– McDonald’s: the most familiar:
– Return Protection Plan of American Express: being the
best by reinventing service processes, and raising
relationships (refund within 90 days)

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Define Value in Terms of the Whole
Customer Experience
Rule6 Don’t use technology just to create the
product. Use technology to innovate,
entertain, and enhance the entire experience
surrounding the product, from selection and
ordering to receiving and service.
The Case of Microsoft: Creating New Holistic
Experiences
- Informediaries: Expedia (travelers), CarPoint (auto
info), Microsoft Investor (help investors research),
and HomeAdvisor (facilitates the home buying)

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E-Business communities: Engineering
the End-to-End Value Stream
Engineering the entire end-to-end value stream
Rule7 The business design of the future
increasingly uses reconfigurable e-business
community models to best meet customers’
needs.
E-Business Car Community: Creating the Dealership
Network of the Future (Auto-by-tel)

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Integrate, Integrate, Integrate:
Create the New Techno-Enterprise
Most firms don’t have integrated infrastructures.
And the inefficiencies, inaccuracies, and
inflexibilities of information technology systems
within corporations need no introduction.
Are You Ready for e-Business Integration?

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Integrate, Integrate, Integrate: Create
the New Techno-Enterprise(Cont.)
The New Priority: e-Business Execution Framework
‧Provide a structure for defining, communicating,
and monitoring new realities.
‧Redesign core business processes to align with
new organizational vision.
‧Enable IT infrastructure to support change,
innovation, and business goals.

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Needed: A New Generation of e-Business
Leaders
Although spending on technology has reached
record levels, these executives continue to put
their businesses at risk by not aligning processes
with technology.
Rule8 The tough task for management is to align
business strategies, processes, and
applications fast, right, and all at once.
Strong leadership is imperative.