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E-business Definition

E-business Definition. The transformation of key business procesess through the use of internet technologies IBM

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E-business Definition

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  1. E-business Definition • The transformation of key business procesess through the use of internet technologies IBM • Electronic business, commonly referred to as "eBusiness" or "e-business", may be defined as the utilization of information and communication technologies (ICT) in support of all the activities of business. Commerce constitutes the exchange of products and services between businesses, groups and individuals and can be seen as one of the essential activities of any business. Electronic commerce focuses on the use of ICT to enable the external activities and relationships of the business with individuals, groups and other businesses [1].

  2. E-business Definition • Louis Gerstner, the former CEO of IBM, in his book, Who Says Elephants Can't Dance? attributes the term "e-Business" to IBM's marketing and Internet teams in 1996.

  3. E-business Definition • In practice, e-business is more than just e-commerce. While e-business refers to more strategic focus with an emphasis on the functions that occur using electronic capabilities, e-commerce is a subset of an overall e-business strategy. E-commerce seeks to add revenue streams using the World Wide Web or the Internet to build and enhance relationships with clients and partners and to improve efficiency.

  4. E-business Definition E-business involves business processes spanning the entire value chain: electronic purchasing and supply chain management, processing orders electronically, handling customer service, and cooperating with business partners. Special technical standards for e-business facilitate the exchange of data between companies. E-business software solutions allow the integration of intra and inter firm business processes. E-business can be conducted using the Web, the Internet, intranets, extranets, or some combination of these.

  5. E-business Definition http://www.wikinomics.com/blog/ 9 E-Business

  6. Ref: E-Business Watch http://www.ebusiness-watch.org • The "Sectoral e-Business Watch" (SeBW) studies the impact of ICT and e-business on enterprises, industries and the economy in general. It highlights barriers for a wider or faster uptake of ICT and identifies public policy challenges arising from these developments. In this way, the SeBW supports the work of the European Commission's Enterprise and Industry Directorate General in the field of ICT (> policy context). • In 2009, the overarching themes of the studies are ICT & energy, ICT skills and ICT policy. In line with the prevailing e-Business Watch approach, two sectoral and three cross-sectoral studies are being carried out. 9 E Business

  7. Ref: E-Business Watch 9 E Business

  8. Ref: E-Business Watch Conference 9 E-Business

  9. Ref: National Business-to-Business Centre http://www.nb2bc.co.uk/what_is_ebusiness/ 9 E-Business 9 E-Business

  10. Ref: National Business-to-Business Centre e-Business is the term used to describe the information systems and applications that support and drive business processes, most often using web technologies.e-Business allows companies to link their internal and external processes more efficiently and effectively, and work more closely with suppliers and partners to better satisfy the needs and expectations of their customers, leading to improvements in overall business performance.While a website is one of the most common implementations, e-Business is much more than just a web presence and there are a vast array of internet technologies all designed to help businesses work smarter not harder. Think about collaboration tools, mobile and wireless technology, Customer Relationship Management and social media to name a few. 9 E-Business

  11. www.Entrepreneur.com http://www.entrepreneur.com/ebusiness/index.html 9 E-Business

  12. www.eBusinessclubs.co.uk http://www.ebusinessclubs.co.uk/ 9 E-Business

  13. 9.1 Introduction to E-Business • E-Business is bigger than e-marketing.It involves using technology to facilitate improvements to businesses processes and increase the efficiency of internal and external information flows with customers, suppliers and distributors.Rigid value chains are changed to flexible responsive value networks 9 E-Business

  14. 9.2 E-Business Architecture • Constructing the e-business architecture means somehow bringing together the systems, processes and applications from all parts of the business, both inside and out. 9 E-Business

  15. 9.3 An E-Business Value Framework • Buy-side e-business – extranets used for buying raw materials and or services. E.g. procurement, inbound logistics and warehousingIn-side e-business – intranets used for optimising internal processes and communications. E.g. manufacturing, management and operationsSell side e-business – extranets used for exclusive use to strategic intermediary partners. E.g. distributors and key account clients 9 E-Business

  16. 9.4 Buy-side Application Levels • No use of web for product sourcing or e-connection with suppliersReview and selection from competing suppliers using intermediary websites, B2B exchanges and supplier websites. Conventional ordering 9 E-Business

  17. 9.4 Buy-side Application Levels 3. Orders placed electronically through EDI, via echanges or supplier sites. No integration between buyer and sellers systems. Rekeying of orders necessary into procurement or accounting systems 9 E-Business

  18. 9.4 Buy-side Application Levels 4. Orders placed electronically with integration with companies procurement systems 9 E-Business

  19. 9.4 Buy-side Application Levels 5. Orders placed electronically with full integration with company’s procurement, manufacturing requirements, planning and stock control systems 9 E-Business

  20. 9.4 PRM = Partner Relationship Management • Buyers and sellers work together in a spirit of collaboration and co-operation where opportunities and problems are identified and solved together e.g.- Independence to interdependence Sharing data to improve operational efficiency A network of trusted partners or extended enterprise 9 E-Business

  21. Weapons of Mass Collaboration “Tools such as blogs, wikis, chat rooms, peer-to-peer networks and personal broadcasting are putting unprecedented power in the hands of individual workers to communicate and collaboratemore productively.” Page 247 9 E-Business

  22. 9.4 Buy-side applications Summary • Perfect information about customers, distribution partners and supplier partners can tighten the supply chain and create competitive advantage 9 E-Business

  23. 9.5 In-side applications Summary • In-side applications use intranets to share knowledge amongst employees while avoiding problems of information overload 9 E-Business

  24. 9.6 Sell-side applications Summary • Sell-side applications include e-commerce, e-CRM, affiliate programmes and collaborative prosumers (user-generated-content)Focus on customer service and reliance on database management to maintain and enhance customer relationships 9 E-Business

  25. 9.7 Creating the E-Business • Establishing the visionGet senior management support and resourceSelect a project team and analyse requirementsRevisit value network and core competencies Design e-business architectureDevelop, pilot, train, and roll-outBenchmark, measure and monitor 9 E-Business Page 420 - 421

  26. Management/Culture Measure & Monitor E-Business Technology Mgmt Financial Management Project Mgmt Talent Mgmt Creating the E-Business What will the business do?What benefits will it bring? Suppliers and procurement needs(Buy-side)Internal staff and management needsOther stakeholders(inside)Client and customer needs(Sell side) Application developmentTime managementQuality and testingFuture options – spin outConstant improvementsCustomer delight TheVision Develop,Pilot, Train,Roll-out Research BusinessDrivers E-BusinessArchitecture ProjectTeam ValueNetwork Business processesRoles and responsibilities through the complete value chainSeamless information flowinternally and externallyFront-end and back-endHow built? Scalable?Robust? Secure? Project leaderCross-functional teamsInside and outside the organisationLinking processes and information flowsDiscovery workshopReal time access Focus on coreCompetencies,Options for downsizingor outsourcng 9.7 Creating the E-Business Page 420

  27. E-commerce & E-CRM E-Research ValueNetwork Partner Relationship Mgmt Business Process Integration Intranet Systems E-Procurement Creating the Value Network Products, services,markets, segments,local, national,global etc Sales and marketing resources, campaigns, pricing, branding, advertising, promotion, distribution,customer feedback, social media. Local Community,Corporate Social Responsibility,Investors,Analysts,Environmental policy Clients/ Customers OtherStakeholders TradeChannels/Resellers Suppliers Staff& Mgmt IT/ISSystems Financial systemsSales and Purchase ledgerOrder processingSourcingSupplier performance measurement Talent management, personnel profiles,project blogs and wikis,time planning,forums, groups, events. Systems developmentand testing,service and support 9.7 Creating the E-Business Page 420

  28. 9.8 E-Business Security • Credit card fraudDistributed denial of serviceWebsite grafittiVirusesUser-generated-content exposureIntellectual property theftSensitive data theft Solutions include: firewalls, filters, encryption, moderation, vigilance. 9 E-Business Page 420 - 421

  29. 9.9 E-Business Success Criteria • Support of parent company or investmentBuilding on existing brand equity where possibleExisting management team and structureValue network in placeCreate new value networkBusiness Process Re-engineeringRealistic pace of developmentDetermine an existing or new niche 9 E-Business Page 420 - 421

  30. 9.10 E-Business Failure Criteria • Bad ideaBad production or deliveryManagement inexperience or inflexibilityFailure to create nicheIsolated from value networkNot focused on customer needsPoor marketingInvestor panicLate or poor technology 9 E-Business Page 420 - 421

  31. Chapter 9. Summary • Business processes and information flowsSystems architectureProcurement, internal and sales dimensionsSupply chain managementKnowledge management and intranetsPRM and CRME-business development processSecurity threatsSuccess criteriaReasons for failure 9 E-Business Page 420 - 421

  32. E-Business Workshop - Teams • Ideas: • Publishing • Art & craft products • Training services • Business software • Computer games • Live music/theatre • Sports • Niche consumer products coffee, sweets, • Consumer electronics

  33. E-Business Workshop - Teams • Consider the following: • What markets, products, services gaps can you think of? • What’s the business process? • How can it be innovated enhanced using technology, people or new processes? • What’s the supplier procurement/purchasing stage? • What’s the internal staff and knowledge management systems needs? • How could the products be sold and marketed and better purchased by customers/clients? • How could CRM, PRM, Ecommerce be used? • How can the new e-business be branded, marketed positioned?

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