Session One: Basic Principles

1
Session One Basic Principles
E-Management and Information Technology
UNDER CONSTRUCTION

• Hussein H. Owaied, Ph.D.
• Khalil A. Abuosba, M.Sc.

Pre-Assessment
2
Session One Basic Principles

• Part One Introduction to e-Management
• Part Two Business Models
• Part Three Introduction to I.T. and Systems
  Concepts
• Part Four Driving Forces for e-Management
• Part Five Barriers to e-Management

SWITCHBOARD
e-MANAGEMENT I. T.
Pre-Assessment
3
Learning Objectives

• After completing this session the reader should
  be able to
• Define the meaning and scope of e-business and
  e-commerce and their different elements.
• Summarize the main reasons for adoption of
  e-commerce and e-business and barriers that may
  restrict adoption.
• Use resources to define the extent of adoption of
  the Internet as a communications medium for
  consumers and businesses.
• Outline the business challenges of introducing
  e-business and e-commerce to an organization.

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Part One Introduction to e-Management

• Basic Principles

Part One Introduction to
e-Management Part Two Business
Models Part Three Introduction to
I.T. and Systems Concepts Part Four
Driving Forces for e-Management Part
Five Barriers to e-Management
E-Management and Information Technology
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Toward the Digital Firm The New Role of
Information Systems in Organizations LAU

• Information systems play a strategic role in the
  life of the firm because today's systems can
  directly affect how managers decide, how senior
  managers plan and even what products and services
  are produced. There is a growing interdependence
  between business strategy, rules and procedures
  and information systems software, hardware, data,
  and telecommunications.

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e-Management

• e-Management may be defined as the act, manner,
  or practice of
• managing, handling, supervising, or controlling
  business processes and
• activities electronically by using information
  technology infrastructures.
• E-Management effects three different entities
• e-Business
• e- Government
• e-Consumer

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Strategy and Applications The McKinsey 7S
Framework
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Mapping the McKinsey 7S Instrument to e-Management

• Structure
• How will be the e-business change be managed?
  Change Management.
• Systems
• Do new operating procedures or business processes
  need to be introduced?
• Can existing IS be used to implement change or
  will new systems be required?
• Style
• Is the current possibly conservative, style of
  the company consistent with the way the company
  wants to project its image.
• Will decisions be made fast enough?
• Will risks be taken to trial new business models
  and new technology?
• Staff
• Is the appropriate mix of staff available?
• Skills
• Are the correct skills available internally?
• What training is required?
• Do we need to outsource some of the services
• Strategy
• Defining priorities, restructuring, business
  models, marketplace restructuring, market and
  product/service development, Positioning and
  differentiation.
• Superordinate Goals
• This refers to the higher goals of the company
  that may be encapsulated in the mission statement

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Toward the Digital Firm LAU
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Digital Firms Business Processes

• Digital firms are ones where nearly all
  significant relationships with customers,
  suppliers, and employees are digitally enabled
  and mediated. Core business processes are
  accomplished thorough digital networks spanning
  the entire enterprise or linking the enterprise
  to other organizations. LAU
• Business processes are the unique ways in which
  organizations coordinate and organize work
  activities, information, and knowledge to produce
  a product or service. Filling an order is an
  example of a business process.

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e-Business

• e-Business is defined as the transformation of
  key business processes through integrating of
  information and internetworking technologies.
• Examples of business processes and applications
• Order Processing
• Stock Control
• Personnel Management
• Budgetary Control
• Modelling
• Strategic Planning

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The e-Business Environment CHA
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e-Commerce

• e-Commerce is defined as the sharing of business
  information, maintaining business
  relationships,and conducting business
  transactions by mans of telecommunications
  networks CHA.
• Examples
• Buying books online (transactional)
• Selecting a car online (informational)
• Interacting with brand online (relationship
  building / experiential, e.g. www.tango.com)
• Asking a customer service query, e.g.
  www.easyJet.com

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Perspective of E-commerce

• 1. A communications perspective the delivery of
  information, products/services or payment by
  electronic means.
• 2. A business process perspective the
  application of technology towards the automation
  of business transactions and workflows.
• 3. A service perspective enabling cost cutting
  at the same time as increasing the speed and
  quality of service delivery.
• 4. An online perspective the buying and selling
  of products and information online.

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The distinction between buy-side andsell-side
e-commerce CHA
Buy-side e-commerce refers to transactions to
procure resources needed by an organization from
its suppliers.
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The distinction between buy-side and sell-side
e-commerce CHA
Sell-side e-commerce refers to transactions
involved with selling products to an
organizations customers.
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Which is correct? CHA
(a) and (b) viewpoints are misleading, however
(c) is the most realistic.
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Issues for managers

• How do we explain the scope and implications of
  e-business and e-commerce to staff?
• What are the full-range of benefits of
  introducing e-business and what are the risks?
• How great will the impact of the Internet be on
  our business?
• What are the current and predicted adoption
  levels?
• How do we assess the validity of forecasts?

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Business drivers to going online
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Part Two Business Models

• Basic Principles

Part One Introduction to
e-Management Part Two Business
Models Part Three Introduction to I.T.
and Systems Concepts Part Four
Driving Forces for e-Management Part
Five Barriers to e-Management
E-Management and Information Technology
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e-Management and Business Models

• e-Management effects several business models
  through interactions
• Business to Business (B2B)
• Business to Consumer (B2C C2B)
• Government to Consumer (G2C C2G)
• Government to Business (G2B B2G)
• Government to Government (G2G)
• Consumer to Consumer (C2C)

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Differences in characteristics of B2C and B2B
trading
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Benefits of B2B and B2C Company

• Cost reduction
• New capability
• Communication
• Customer service
• Control
• Competitive advantage

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Exercise

• Visit the following sites/pages, map these sites
  to business models (B2B, B2C, C2B, G2C, C2G, G2B,
  B2G, G2G, or C2C)
• http//www.icann.org/
• http//www.internettrafficreport.com
• http//www.amazon.com
• http//www.nic.gov.jo/En/nitce.htm
• http//www.hmrc.gov.uk/businesses/index.shtml
• http//www.hmrc.gov.uk/individuals/
• http//hub.ebay.com/buy
• http//www.intel.com
• http//www.intel.com/reseller/index.htm
• http//www.att.com/directory/
• https//web.gsec.ford.com/default.asp

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Part Three Introduction to I.T. and Systems
Concepts

• Basic Principles

Part One Introduction to e-Management
Part Two Business Models Part Three
Introduction to I.T. and Systems Concepts
Part Four Driving Forces for e-Management
Part Five Barriers to e-Management
E-Management and Information Technology
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Information Technology

• Information Technology (IT) is defined as the
  range of electronic technologies for collecting,
  processing, and distributing data, and consists
  primarily of computer and communication
  technologies SIM
• Examples of I. T.
• Touch-screen Display
• Click-type keyboard
• SoftTouch-type keyboard
• Network Interface Card
• Software (software are a component of any
  computer system)
• Mechanical Mouse
• Optical Mouse
• Printer
• Kiosk

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Information Technology Infrastructure

• An IT infrastructure is a set of IT components
  designed and implemented to satisfy the
  information needs of a specific community of
  users. It comprises the elements that make up the
  physical system supporting data collection,
  processing, and presentation SIM
• Examples of I. T. infrastructure
• Computer Systems
• Information Systems
• Distributed Information Systems

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Computer System
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Information System
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Distributed Information System

• A Distributed Information System is defined as a
  collection of autonomous computers connected by a
  computer network to enable resource sharing and
  co-operation between applications to achieve a
  given task.

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Part Four Driving Forces for e-Management

• Basic Principles

Part One Introduction to
e-Management Part Two Business
Models Part Three Introduction to
I.T. and Systems Concepts Part Four
Driving Forces for e-Management Part
Five Barriers to e-Management
E-Management and Information Technology
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Drivers for e-commerce
Source DTI (2002) CHA
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Goals of e-Management

• High Productivity of knowledge and service
  workers
• Product and Service Quality
• Competitive Response
• Globalization
• Security

Source DTI (2002)
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Drivers for e-Business and E-Commerce

• Cost/efficiency drivers
• Increasing speed with which supplies can be
  obtained
• Increasing speed with which goods can be
  dispatched
• Reduced sales and purchasing cost
• Reduced operating Cost
• Competitiveness Drivers
• Customer demand
• Improving the range and quality of services
  offered
• Avoid losing market share to business already
  using e-commerce

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Tangible benefits from e-Business and e-Commerce

• Increased sales from new sales leads giving rise
  to increased revenue from new customers/markets,
  existing customers (repeat selling), and existing
  customers (cross selling).
• Marketing cost reductions from reduced time in
  customer service, online sales, and reduced
  printing and distribution costs of marketing
  communications.
• Supply Chain cost reductions from reduced level
  of inventory, increased competition from
  suppliers, and shorter cycle time in ordering.
• Administrative cost reductions from more
  efficient routine business processes such as
  recruitment, invoice payment and holiday
  authorization.

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Intangible benefits from e-Business and e-Commerce

• Corporate image communication
• Enhance brand
• More rapid, more responsive marketing
  communications including PR
• Faster product development lifecycle enabling
  faster response to market needs
• Improved customer services
• Learning for the future
• Meeting customer expectations to have a web site
• Identify new partners, and support existing
  partners better
• Better management of marketing information and
  customer information
• Feedback from customers on products

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Driving Forces for e-Management

• Assessment of Porters Five Forces Model
• Service Requester (in e-Commerce ? buyer)
• Service Provider (in e-Commerce ? supplier)
• New entrants
• Substitutes
• Rivalry

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I. T. opportunities and e-Management

• Social and Environmental Responsibility
• Extensibility
• Integration

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Tools for e-Management

• Business Process Re-engineering (BPR)
• Outsourcing
• Alliances

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BPR
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Outsourcing
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Alliances
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Part Five Barriers to e-Management

• Basic Principles

Part One Introduction to
e-Management Part Two Business
Models Part Three Introduction to I.T.
and Systems Concepts Part Four
Driving Forces for e-Management Part
Five Barriers to e-Management
E-Management and Information Technology
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Barriers Pitfalls to e-Management
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Barriers to e-commerce
Source DTI (2002)
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