EBusiness Analysis Framework

1
E-Business Analysis Framework

• How to analyze the E-Business Components

2
Viewing a Firm as a System
Supplier
Purchased Parts
The Firm
Orders to Suppliers
Finished Goods
Production
Product Design
Sales
Delivery
Service
Actual and Forecasted Orders
Service Requests
Finished Goods
Orders
Customer
Product Information
Preferences
Alter, p.9
3
Business Analysis FrameworkWork System
Customers
Products and Services
Business Processes
Participants
Information
Technology
Context
Infrastructure
Alter p8, 17
4
Assumptions about Products and Services,
Customers, and Businesses
Pre-E
With E

• Rate of change is rapid
• Organizations stability dependant on efficiency
• Long range strategic planning is key
• Build or buy software
• Customers buy from suppliers product list
• Prices only somewhat negotiable

• Rate of change is accelerating
• Faster organizational change due to technological
  advancements, dynamic work roles
• Plan also for contingency
• Build or buy tech. Infrastructure
• Negotiation over product requirements for
  customization
• Prices are extremely dynamic

5
Assumptions about Business Processes
Pre-E
With-E

• Compensate for the unavailability of important
  info
• Delays in planning execution, control
• Systems record info about processes, but not
  directly doing work
• IS are separate from value added steps

• Based on the availability of important info
• Cyclical planning, execution and control
• Business and System integration performs and
  controls
• Value added steps collect info automatically and
  utilize it for planning and control

6
Assumptions about Participants
Pre-E
With-E

• Technology is an integral expectation
• Dynamic work environment
• Both independent and team functions
• Situation exacerbated by rapidly changing
  environments

• Technology unfamiliar are frightening
• Job and career stability
• Independent functions
• Managers have little patience for mathematical
  rationales and technical methods

7
Assumptions about Information Used in Work Systems
With-E
Pre-E

• Data Capture expensive and sporadic
• Lengthy collect, compile, and summarize data
• Communication bandwidth limited and expensive

• Cheaper, automated data capture and detail
  segmentation
• Data gathered real time
• More available and reasonably priced
  communication bandwidth

8
Assumptions about Technology used in Work Systems
Pre-E
With-E

• Awkward interfaces
• Data storage and retrieval constrains analysis
• Little use of image and audio info
• Limited methods to summarize/display info/data
• Limited connectivity internally/externally

• Intuitive interfaces
• Greater storage and retrieval capabilities
  facilitating analysis and decision-making
• Digitized images and audio used in qualitative
  analysis
• Powerful data analytical tools
• Unlimited connectivity

9
Dell Manufacturing a Computer to Order

• Customers
• Computer Buyers
• Products Services
• Customized personal computers, built to order and
  delivered
• Business Process
• Receive order and payment information from buyer
  (either through the Web or through sales
  representative).
• Place the computer on the manufacturing schedule
• Perform manufacturing steps including assembling
  the computer, installing software, and testing
  whether the computer operates correctly.
• Pack the computer for shipment.
• Ship the computer directly to the consumer.

Alter, p 3-5
10
Technical Solutions Maze

• Customers
• CRM software Clarify
• Content Management Vignette and Interwoven might
  be overkill for most pure marketing needs.
  Catalog content management packages from i2
• Products Services
• PLM software
• Business Process
• Transaction and Accounting Software software
  PeopleSoft, SAP, Oracle
• Manufacturing Logistics and Distribution
  software SAP, PeopleSoft
• Channel synchronization tools E.piphany, Siebel,
  MarketFirst
• Tracking software Amazon.coms animated
  demo,FedEx, UPS
• Supply Chain Management Software Oracle,
  PeopleSoft

11
4 Phases in Building a Work System
Initiation
Business Process Requirements
Development
Implementation
System development and modification
Work system changes implemented and
institutionalized
Operation Maintenance
12
Reasons for Project Failure

• Technology not used appropriately
• Too little support from employees
• Requirements for website not obvious or feasible
• IT staff not versed in Web site design
• Modification of existing system complex
• Security flaws or inadequate controls
• Website not updated to keep up with competitors
  or business changes Alter, p. 20

13
Challenges ofE-Commerce Evolution

• Establishing and Integrating Systems
• Setting Prices
• Attracting Customers
• Providing an Effective Self-Service Environment
• Providing Excellent Customer Service
• Achieving Profitability and Sustaining
  Differentiation
• Security Atler p251-259

14
Conclusion Keys to E-business Success

• People - People need to be properly trained and
  willing to embrace both processes and technology.
• Processes - If you automate an inefficient,
  incorrect or bad business process all you have
  is a faster automated bad business process.
• Technology - Technology needs to facilitate the
  entire process and be intuitive to the people
  using it.