This document provides an overview of e-business management and strategy. It defines e-business and e-commerce, and discusses how businesses have transformed from the old economy to the new digital economy. Key aspects of e-business include types of e-business models, the growth of e-commerce, and how technology has impacted business functions and decisions. Developing an e-business strategy involves formulation, implementation, and evaluation.

1. E-business MANAGEMENT AND STRATEGY

12. An Internet Framework (Hanson, 2000) The Web is fundamentally about individuals using a network to access digital products Marketing Technology Economics Internet Marketing Digital Networked Individuals

13. Key differences between the old and new economy Insecure, opportunistic Stable Nature of employment Collaborative Confrontational Workplace relations Lifelong learning Trade orientated Educational needs Multiple and flexible Specialised Skills Dynamic, segmented Stable Tastes Consumer factors Collaborative Independent Relationships Innovation, speed, quality Low cost/high production Competitive advantage Digital and electronic Machines Technology driver Innovation and knowledge Capital and labour Growth driver Flexible, customised Mass Production Network or virtual Hierarchy Organisation Business Factor Human capital Physical capital Value driver Service Manufacturing Structure International and global National Competition Dynamic and complex Stable Market Economy factors New economy Old economy Isues

14. “ How Business Practices are Changing” Table 2-1: Old Economy vs. New Economy (Kotler, 2004) Organize by customer segments Focus on customer lifetime value Look also at marketing scorecard Focus on stakeholders Everyone does the marketing Build brands through behavior Focus on customer retention and growth Measure customer satisfaction and retention rate Underpromise, overdeliver Organize by product units Focus on profitable transactions Look primarily at financial scorecard Focus on shareholders Marketing does the marketing Build brands through advertising Focus on customer acquisition No customer satisfaction measurement Overpromise, underdeliver New Economy Old Economy

15. Procter & Gamble’s Reflect.com site allows customers to design their own beauty products

17. The growth of e-business empowerment Increased efficiency Access to internet community Lower costs One-to-one customer service Improved costomer knowledge Network externalities Network externalities Customisation Automated processes Personalisation Improved logistics Lower prices Marketing economies Convenience Potential economies of scale Access to market information Access to wider market Ease of use Ease of use Ease of access Ease of access Consumers Firm

18. Use of the Internet % % 17 Read blogs 51 Download music 21 Distance learning 56 Instant messaging 21 Genealogy 61 News 26 Chat 66 Local information 33 Listen to radio 74 Buy online 33 Download videos 77 Plan travel 40 School material 78 Look up facts 42 Look for jobs 83 Surfing/browsing 45 Bank online 87 Product information 48 Play games 92 Check e-mail

21. Business Decisions

23. Interaction among Owners, Employees, Customers, Suppliers, and Creditors Exhibit 1.1

25. business online

34. How Business Decisions Affect a Firm’s Earnings Exhibit 1.4

38. Which is more important for developing an e-presence: the agility of a pure click company, or the well defined and readily identifiable resources of a traditional brick and mortar company? Discussion Question

44. Expected Monthly Expenses of CHC Exhibit 1.6

45. Expected Performance of CHC in the First Year Exhibit 1.7