IT - Internet &E-business TransformationIn Golestan Provinceفنآورى اطلاعات – اينترنت و تجارت الكترونيكدر استان گلستان

1. IT - Internet &
E-business Transformation
In Golestan Province
Babak Sorkhpour

2. 2
Our World Has Become More Complex
Mainframe
+
Terminals
Old World Order New World (Dis)Order
RISC
Directory
Service
Terminals
Workstations
GUI
File Service
Protocols
Client/Server
Object Messaging
LANs
Internet
Print Service
Multimedia
Mail Service
Distr. DBMS
Applications
Security
Lines
+
Modems
PCs
Mainframe
Portability
Distr. OLTP
E-Commerce
Euro
Telecommunications
E-Business

3. 3
E-Business Trends

4. 4
… the analysts are predicting an enormous growth in business to business transactions
over the Internet
Value of
transactions
in $B
Business to Consumer (B2C)
(Sales of travel services and retail goods)
Business to Business (B2B)
(Inter-company trade of hard goods
over the Internet)
1998 1999 2000 2001 2002 2003 2004
200
400
600
800
1000
1200
1400
… these predictions have recently been backed up by major e-Business initiatives
announced by Ford and GM

5. 5
Major Trends
70s 80s 90s 00s70s 80s 90s 00s
Cost Reduction
Quality
Reengineering
Speed
Internet

6. 6
e-Business Evolution
70s 80s 90s 00s
Cost center
Strategic
Enabler
Productivity
Tool
B
u
s
i
n
e
s
s
I
m
p
a
c
t

7. 7
Major Trends
• Digital Economy
• Globalization
• New Workforce -- Reverse mentoring
• Virtual Enterprise (community)
• Internet As a Platform for Design, Manufacturing, Supply-
chain Integration
-

8. 8
Major Trends
• By 2005, 100 million Europeans will spend 173 billion euros shopping online
2005100173 .
• The advent of a mobile, wireless, data-communications infrastructure marks a new
phase of the Internet – Supernet
• A B2B e-marketplace is an enterprise that brings buyers and sellers within an industry,
geographic region or affinity group together for the purpose of commerce.
.
• Technologies must be flexible to allow “anytime, anywhere” work.
.
• Continuous learning must be institutionalized to fuel constant renewal, discovery and
innovation.
.
• Work processes must be easily adjusted, extended and retrenched across
organizational
• The businesses will change more in the next decade than it has in the last five decade
.

9. 9
Leadership Model
Focused on strategy Focused on execution
Constrained by money Constrained by time
Cautious Paranoid
Has a preference for comfort Insists on truth
Market driven Customer driven
Focused on retention Focused on recruitment
Traditional Leadership E-Business Leadership

10. 10
E-Business Perspective

11. 11
What Does e-Business Mean
Information
Technology
Knowledge
Workers
Business
Processes
e-Business
Custom
ers
Suppliers
Partners

12. 12
Global Internet Business Model
Employees
Partner
s
Suppliers
Customers
Information
Enterprise
• Higher customer
satisfaction
• Competitive
agility
• Accelerated
time to market
• Managed costs
• Higher employee
efficiency
Ubiquitous ConnectivityUbiquitous Connectivity
where the Businesswhere the Business
Runs on the NetworkRuns on the Network

13. 13
What Is e-Business?
e-Business is … Online and traditional business activities that use Internet
technologies to support communications, collaboration, service and trade
on line
e-Business is about using technology to integrate, streamline and
increase communication from customers to suppliers
1. Buy Side1. Buy Side 2. Inside2. Inside 3. Sell side3. Sell side
TodayTomorrow

14. 14
STAGE 1: Passive infoSTAGE 1: Passive info
(e.g.,on-line brochure)
STAGE 2: Interactive infoSTAGE 2: Interactive info
(e.g., interactive ads, recruiting, locators)
STAGE 3: e-CommerceSTAGE 3: e-Commerce
(e.g., purchase goods, on-line registry,
customer self-service)
STAGE 4: e-BusinessSTAGE 4: e-Business
(e.g., automated distribution,
customized service,
incentives)
Broadly, there are four stages in
e-Business sophistication
Those who have gone all the way to redefine and integrate processes
with a cogent e-Business strategy are very satisfied with the results
23% of Fortune 500
29% of Fortune 500
40% of Fortune 500
6% of Fortune 500
2% of Fortune 500
No Site

15. 15
Mass Production Era
Productivity/
Quality Era
Virtual CustomerEra
Local markets
1.
Availability
1.
Economies of Scale
1.
Exporting
1.
Cost per unit
1.
Conformance
Reliability
1.
Durability
Global presence
Value-added solutions
Superiordelivery in
“zero time”
1.
Production quantity of “one”
Customized services
TQL
ISO14000
TQM
QS9000
ISO9000 QAF
As business evolves, the critical factors of the new
era will be dictated by e-Business
Customers are increasingly deciding what, when, where and how they will
purchase goods and services, and demanding them in zero time.

16. 16
Multiple E-business Model and Example
Covisint Amazon
E-BayPriceLine

17. 17
How the Internet is transforming businesses
Suppliers Enterprise
Customers/
Distributors Consumers
Supply
Side
Demand
Side
B2B B2C
Internet
Extranet
Intranet
Impact on MarketImpact on Market
Market boundaries are
dramatically expanded or
eliminated altogether
Transaction costs
are reduced, often by
orders of magnitude
Transparency of
market information is
greatly enhanced
Pricing mechanisms
become more efficient
Market liquidity is
improved
1. Buy Side1. Buy Side 2. Inside2. Inside 3. Sell side3. Sell side
E-Business spans the complete value chain

18. 18
…‘Through year-end 2001, more than 70 percent of multinational enterprises will
have failed to plan a coherent approach to electronic business, leading to a
significant loss of competitiveness.’ (Gartner)
…‘Investigate, validate and plan for e-Business
E-Business Planning: The Five Points
E-Vision:
Ensure the CEO communicates
the strategic e-business vision
E-Management:
Create new structures
to co-ordinate e-
business activities
E-Plans:
Write individual
business plans for
each e-business market application
E-Review:
Constantly review all
e-business investments
E-Competition:
Account for cyber-
competition
in the business-
planning process
Source: Gartner Group

19. 19
B-to-B dominates on-line trade
39 64 101 143 185
717
1,167
2,696
1,823
406
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
2000 2001 2002 2003 2004
Business-to-Consumer
Business-to-Business
US eCommerce
($ billions)

20. 20
B2B dominates Europe as well
9 22 55
123
232
164
357
1,318
728
74
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
2000 2001 2002 2003 2004
Business-to-Consumer
Business-to-Business
European eCommerce
(€ billions)

21. IT Architecture

22. 22
Customers SuppliersPartners Employees
O
P
E
R
A
T
I
O
N
S
S
E
C
U
R
I
T
Y
Security
Internet Infostructure
Enterprise Applications
Business Information
Computing Environment
“e” Enabled IT Architecture
Intelligent Network
Critical Elements of the Enterprise IT Architecture

23. 23
The Old Rules are Changing
n Network is now mission critical
n 80/20 traffic rule no longer applies
n “Power User” base is changing
n Location no longer a factor
n Video conferencing has become
widely accepted
n Voice services are a commodity
n Low cost/high bandwidth data
services
Changing Use of the Network
n Merging of voice, video, and data
n Network access to customer
information is becoming a
requirement
n Mobile/wireless computing
n Distributed client/server applications
n Multimedia
n Desktop video
n Integration of voice-mail, fax, and e-
mail (Universal Mailbox)
n Internet/intranet
You can’t play the new game with the old rules
Industry Trends/DriversIndustry Trends/Drivers

24. 24
“e” Enabled IT Architecture (Business Information)
DATA MODEL
DOC
962
KNOWLEDGE MODEL
SOU
RCE
A
SOURCE
B
SOURCE
C
SOURCE
N
INFORMATION MODEL
INFO USE A
INFO USE B
INFO USE N
PIS
EIS
EUIS
INTERFACE
MODELS
Enterprise Portal Views
• PIS - Personal Information System
- User Customizable View
• EIS - Executive Information System
- A community view based on location,
functional area, executive level, or
membership in a workgroup or other
common interest
• EUIS - End User Information System
- Provides a general integrated interface
to ‘drill-down’ to specific information
‘Sources’ and ‘Uses’
• Knowledge ‘Use’ View - A
comprehensive view of a topic area from
across multiple information sources that
helps form the context(s) for which it
can be used - “Information-Based
Decision Making”
• Information ‘Source’ View - Sets of
information or data items defined by
concepts or facts, often by the source
attributes
• Data View - A discreet item or object, an
entry in a database field, an image or a
document
Operational data is brought
together to form
• Strategic data (e.g.,
customer strategies,
commodity strategies)
• Overall performance data
(e.g., ppm, ontime delivery,
program status)
• Best practice/benchmark
data (e.g., engineering data,
legal training, employee
classification)
• Company-wide reporting
data (e.g., financial, tax
return, market share)
from which information and
knowledge evolve
Data: The Foundation for Information-Based Decision Making

25. 25
Architecture and Change
Architectures and Changes

26. 26
Typical IT Solutions

27. 27
Years
2000
1,275
2,493
4,040
1997 1998 1999
6,000
1000
2000
3000
4000
5000
6000
Example of Outsourcing in India --
Satyam Computer services
• Low attrition rate = 11.2%*
• High moral
• Extreme pride
• Continuous training
–Mandatory - 80 hours of
training per year
• Core values
• Embrace diversity
• Chairman awarded “E&Y’s
Entrepreneur of the Year
for Services,” 1999 *As of April 1, 2000

28. 28
Conclusions

29. 29
The pace of change in e-Business requires an
organization that moves quickly
Be First
Days and hours count (not years
and months)
Be Right
Select the right partners and value
fulfillment model
Be Adaptable
Learn fast, move fast
Extremely fast paced
Early movers are rewarded
handsomely
Mistakes are penalized
quickly
Transparent and often
easily imitated
Extremely fast paced
Early movers are rewarded
handsomely
Mistakes are penalized
quickly
Transparent and often
easily imitated

30. 30
Critical Success Factors
• Senior management/officials buy-in and commitment
• Reliable, available, and, flexible network infrastructure
• Robust Computing (hardware and software) environment
• Process re-engineering expertise
• Technical and technology superiority
• FAST response to changing environment
• Establish yourself as a viable international player:
– Skill and knowledge of advanced technology
– Cost
– Project management
– Speed
– Language

31. 31
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