The document discusses the key issues and challenges in e-business, highlighting its growth potential, customer service demands, and the socio-economic factors affecting consumer behavior. It outlines the technological issues related to security, accountability, scalability, and integration that businesses must address. Furthermore, it emphasizes the shift in traditional business models and the need for adaptation in the online environment.

1. e-business Key Issues and Challenges Frank Braski System Architect Lotus Domino & Internet Practice IBM Global Services

2. Overview What is e-business? Some Quick e-facts… Issues and Challenges Human Factors Socio-economic Issues Technology Issues Questions and Answers

3. What is e-business? The future of business. Higher margins = more value + lower costs per transaction Commerce. IDC/LINK predicts a 20x growth in on-line commerce by 2001 Customer Service. Give me self service for brain-dead tasks, and increase value added service Collaboration. People working together with groupware that lets the whole be greater than the sum of its parts.

4. Some Quick e-facts 70%+ of the world’s wealth exists in cyberspace IDC/LINK predicts a 20x growth in on-line commerce by 2001 $68 B exists in 1m e-schwab accounts alone High ROIs (basic web=22%, collaborative= 68%+ ) Lower costs of doing business $8 Airline Ticketing now < $1 Bank transactions from $1.07 to < 1¢ (B-A&H) $1.3B in 1996 estimated at $176B by 2001

5. Issues and Challenges: Human Factors Basic F.U.D. Misconceptions about credit, banking Technical Illiteracy The I/O Problem. Finding what you really want. The need for speed. Those that don’t “get” it... Stupid applications of technology

6. Issues and Challenges: Socio-economic New Economic Models Consumptivity - We value our worth by our level of consumption Consumerism - The consumer is king! New business models Self-service, JIT Everything, NOW! New Supply Chains: Dis- & Re-intermediation Entirely new businesses based on-line Traditional S&M being turned upside down

7. Issues and Challenges: Socio-economic Political & Legal Obsolete laws & government structures Ridiculous Encryption Laws Transnational economic powers Moral & Ethical Is it okay to base insurance premiums based on known spending habits? Should I use positional tracking to determine speeds for driving rates? Should all this information really be connected?

8. Technology Issues The technology available is impressive But there are still needs in: Security, Accountability Scalability, Efficiency Integration, Ease-of-Use

9. Technology Issues: #1 - Security Common Misconceptions about Security That it’s inherently there. “ My kid can do it.” “ They’ll steal all my money.” 95% of Americans won’t give out Credit Card information on-line - ECONOMIST Authentication. Not just who get’s in and who’s out, but are you really who you say you are? Realtime Intrusion Detection Systems

10. Technology Issues: #2 - Accountability Who’s responsible for security? You. Your partner. “ On the web, people really DO know you are a dog.” - Anonymizer The systems can track more than we want them to…

11. Technology Issues: #3 - Scalability Business will boom, and that will be great, right? Not if you can’t handle it. $176B by 2001, 136m “hits” a day 55m w/web access today to .5B by 2000 New computing systems Agoric Systems: Selling off efficiency Neural Nets: Learning to trade Intelligent Agents: Bartering on your behalf

12. Technology Issues: #4 - Integration How can we leverage our existing systems? How do we manage all of the myriad of Transactions? How do we get it all to work together? Smart People Open Systems Free Language

13. Thanks! Questions? Answers. Frank Braski [email_address] http://www.ibm.com/e-business +1.770.835.9667