MGT 235

1
MGT 235

• Planning, Process, and Structure in Electronic
  Business

2
What is Electronic Business?

• Use of electronic communications facilities
  (i.e., networks) to perform any part of a
  business (internal or external) transaction.
• Executes the capture, conveyance, and storage of
  the information component of these transactions.
• Objective is to add value to business process,
  service, or product.

3
Forces Driving Electronic Business

• Economic - pressure to be competitive
• reduce costs
• expand customer base
• Customer relationship management
• if you dont do it well someone else will!
• Technology - advances provide ability to convert
• business process and customer information to
  digital form and
• transmit widely (because of the WWW), quickly,
  and securely.

4
Profit is the Motive

• Profit Revenues Costs
• To increase Profits either
• Increase Revenues or
• Decrease Costs
• As managers we look at all of the
  transaction-based activities that go into
  generating revenues or costs and say,
• Where can we use electronic information systems
  to create more revenues or remove some of those
  costs?

5
Sellers Perspective Advantages

• Increased sales opportunities
• Decreased transaction costs
• 24 / 7
• Narrow markets that are widely dispersed
• Global market access
• Increased speed of information exchange
• Bring multiple buyers / sellers into one space

6
Sellers Perspective Disadvantages

• Rapidly changing technology
• Lack of telecom capacity
• Integrating e-business systems with old
• System security / reliability
• Global market issues (language, politics)
• What laws apply?
• Technically trained labor?

7
Buyers Perspective Advantages

• Lots of product / service providers
• Personalized buying
• 24 / 7
• Comparison shopping
• Speed of delivery

8
Buyers Perspective Disadvantages

• Transaction security / privacy
• Trust in sellers
• Cant try the product on easily
• Resistance to new technologies like electronic
  money

9
Models of Electronic Business

• Inter-organizational (B2B)
• EDI, supply-chain interaction, inventory,
  distribution, payment management, etc.
• Intra-organizational (B2E or BinB)
• e-portals, Lotus Notes, workgroup communications,
  e-publishing, etc.
• Business-to-consumer (B2C)
• direct marketing, e-malls, service
  communications, etc.

10
Models of Electronic Business

• Consumer-to-consumer, peer-to-peer (C2C, P2P)
• auctions, electronic flea markets, etc.
• E-marketplaces
• exchanges
• Non-business
• on-line communities (Geocities), news groups

11
Taxonomy of Applied Business Models

• Brokerage (http//globalsources.com/)
• Advertising (http//www.altavista.com/)
• Infomediary (http//www.job-search-engine.com/)
• Merchant (http//www.etoys.com/)
• Manufacturer (http//www.hp.com/)
• Affiliate (http//s1.amazon.com/)
• Community (http//geocities.yahoo.com/)
• Subscription (http//prodigy.com/)
• Utility (http//prodigy.com/)

12
E-Business Initiatives

• E-Commerce selling more goods via the Web
• E-care for customers providing all kinds of
  customer support on-line
• E-care for business partners dedicated services
  providing faster, better information for these
  important groups
• E-care for employees improving their
  effectiveness by making the right information and
  services available to them

13
E-Business Initiatives

• E-procurement working closely with customers and
  suppliers to improve the tendering process and to
  better administer the huge number of transactions
  involved
• E-marketing communications using the Internet to
  better communicate marketing stance

14
Framework For E-Business Infrastructure - Layers

• Application infrastructure
• supply chain, procurement, online marketing, home
  shopping
• Common business services infrastructure
• security, authentication, payment, directories
• Messaging / information distribution
  infrastructure
• EDI, e-mail, HTTP
• Multimedia content / publishing infrastructure
• HTML, Java, WWW
• Telecommunications / network infrastructure
• POTS, cable, Internet, wireless
• Technical standards
• document / content formats, security,
  communications protocols,
• Public policy
• privacy, legal issues

Adapted from www.dotcomadvisor.com 2000
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Electronic BusinessPlanning Framework

• Management
• strategy, planning, resources, monitoring
• Infrastructure
• business services, information transfer, content,
  networks, interfaces
• Environmental constituents
• people, policies, technical standards,
  stakeholder organizations
• Business applications
• catalogs, banking, procurement, CRM

16
Questions for E-Business Managers

• What is our long-term and short-term business
  strategy?
• Which e-Business model to use?
• What products or services should be offered or
  developed?
• What technologies and infrastructure should we
  invest in?
• What organizational structures will best
  facilitate accomplishing our goals?