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  1. Please note the following ... • This class is over FULL, NO students will be ADDED • If you intend to DROP this class, please let the instructor know immediately

  2. Are You In The Right Place? MIS-7570 E-Business Prof. Bob Reck ?

  3. Traditional Electronic Commerce Definition Buying and selling of information, products and services via computer networks/electronic media through all phases of business transactions Definition

  4. Electronic Commerce

  5. Electronic Commerce

  6. Perspectives And Objectives • Impact of electronic commerce on business design and strategy (and vice versa) • Impact on industries and markets • Technology underpinning for Electronic Commerce (languages, hardware, software, networks, Internet, EDI, standards and protocols) • Impact on other information systems within a business (ERP, integration needs, value chain elements, knowledge management)

  7. MIS-7570 - Overview of Topics • Introduction and Key Frameworks and Models • Business and Technology Perspectives • Buy Side, Sell Side, SCM Viewpoints • Components of an E-Comm Business • Linking Business Strategy and E-Comm • E-Comm as a Transformation Tool • EC and Banking/Publishing • m-Commerce and EC Appliances • Issues and Red Herrings http://faculty.babson.edu/reck/mis7570f00, e-campus (?) and K:/Courses/MIS7570

  8. MIS-7570 - Cases • e-Steel.com* • Dell.com* • GE TPN • Chemdex.com* • Online Banking: Wells Fargo and Bank of America • Napster.com* • McDonnell Douglas * Site study is the basis for the case.

  9. Guests • Eugene Wu, CEO and Joanne Mooradian, VP Marketing - ThinkMart • Richard Kesner - Hurwitz Group • Marc Cecere - Giga Information Group • Richard Kane - Zefer Group • Karen Temkin and Glenn Mangurian - Frontierworks • Greg Ross - eStrategies • Richard Voss - Babson College (?) • Marcus Torchia - Lernout and Hauspie Systems • Phillip Bakker - PriceWaterhouseCoopers • … and ???

  10. Primary And Optional Texts • PriceWaterhouseCoopers, E-Business Technology Forecast, May 1999 • [T&S] G. Winfield Treese and Lawrence C. Stewart, Designing Systems for Internet Commerce, Addison-Wesley Co., 1998 • [K&R] Ravi Kalakota and Marcia Robinson, e-Business: Roadmap for Success, Addison-Wesley Co., 1999 • (Optional Reading) [D&M] Jack Davis and Susan Merritt, The Web Design Wow! Book, Peachpit Press, 1998

  11. Related Courses • MIS7520, Designing Organizations with Information Technology (DOIT) • MIS7571, IT and the Value Chain • MKT7570, Direct Marketing and E-Commerce • MKT7540, Retailing in a Networked Environment • OPS7520, Supply Chain Management See the career track section on GlobeNet.

  12. Grading

  13. Class Participation - Major Elements • Professional behavior • Participation in class discussions • Active listening • “Tuned in” body language • Demonstration that you did homework • Insights into material • Knowledge building from class to class • Personal mastery • Giving 110% • No games or e-mail on the PCs at the back of the room!! ;-)

  14. Case Study • Individually prepared • Unique company or industry • Electronic commerce or electronic business • Field work, research, analysis, Web, library, visits • Resembles Harvard Case Studies • May use/show Web sites, presentations, video, other media • Encouraged to post on Web for open access to rest of class or others • Detailed contents in syllabus • Due November 13-14, 2000

  15. Instructor invites othersuggestions. Please getapproval before proceeding. Initial Company List • Ariba.com • Boeing.com (maintenance) • CheckFree (online billing) • CSX.com (freight) • DrKoop.com (medical) • Ernie.ey.com (consulting) • Ernst & Young (Knowledge Mgt.) • Expedia.com (travel) • geocities.com (portal) • Hilton.com (hotels) • Home Depot • Homestore.com • HSN.com (Home Shopping Net) • Imark.com • ImproveNet.com (DIY) • Millipore • Miningco.com (web guides) • N2K.com (music) • Nolo.com (legal info) • Open Market.com (EC software) • Owners.com (home sales) • Plasticsnet.com • Priceline.com (travel plus) • SpringStreet.com (apartments) • Tradeout.com

  16. Instructor invites othersuggestions. Please getapproval before proceeding. Initial Topics List • Advertising (Agency Side) • Auctions Online • Automobile Industry (SCM) • Automobile Industry (Sell Side) • Buy Side Software • Commercial Insurance • CRM Software • Cyberwar (international) • Distance Learning • E-Comm Costs (re Business Models) • Entertainment • ERP Integration with E-Comm • Banking (update class case) • Education and Certifications • Fashion Sales • Financial Services • Government Interventions (e.g., taxes, etc.) • Government Online (Fed/State/Local) • Grocery Industry (SCM, comparisons) • ISPs/CSPs/ASPs • Knowledge Management • Medical Advice and Support • Music Online (MP3, Napster, etc.) • News Services • Non-US E-Comm (e.g., pick your own geography) • Online Pharmacies • Online Politics • Personal Insurance • Purchasing Services • Real Estate • Recruiting/Job Finding • SCM (Supply Chain Management) and ERP • Search Engines • Sell Side Software • Streaming Media • Toys Online (comparisons) • Trading Hubs • Travel (comparisons) • Vacation Homes Online • Zines (comparisons)

  17. Team Web-Based Project • Teams of two to four students • Propose, design and develop an electronic commerce business • New EC initiative, reinvention of troubled initiative, EC initiative for a mature company • Short business plan • Demonstration business “site” • Encouraged to post on Web for open access to rest of class • Detailed contents in syllabus and in second class on business plans • Presentation to class • Due December 4-5, 2000

  18. Traditional Electronic Commerce Definition And Implications Buying and selling of information, products and services via computer networks/electronic media through all phases of business transactions • Buyers and sellers can directly connect • Full digital information exchange between trading partners • Time and place limits almost no factor • Interactive with attendant impact on customer behavior • Updated in real time • All or most trading steps and transactions included • Complete restructuring of the channel • New roles for IS and other organizational units • Major change!! Definition Implications

  19. Twelve Changes That Put E-Comm On The CEO’s Agenda - E-Comm Will … • Change the basis of competition • Change how we work (reengineer) and level of coordination • Change how we market and sell • Change timing and pace of business • Change relationships with suppliers, customers and others • Change how we allocate resources • Change image • Change culture • Change products and services • Change how we get/retain staff • Change how we provide service • Change how we invoice and get paid “12”

  20. Who’s Making Money (Or Trying To)? Infrastructure Providers Mature Businesses Start-Ups Consulting Venture Capital/ Investment IT Companies Communications Government

  21. Past Approaches To Electronic Commerce • World Wide Web - shifts from other media • “Run it up the flagpole and see if anyone salutes” • Focus on catalogue and order capture - No change in sales model • Complex accommodation to current channels - No change in business model • Focus on the “usual suspects” - the same customer set • Low budget • Don’t give too much away • Look with awe at “front-page” successes Hit any key!

  22. Electronic Commerce “Code” • Netrepreneur • Cybermediary/Infomediary • E-lancers • Electronic affinity group • Sites and servers • Channels • Mall • Supply Chain Management • Search agent or engine • Authentication • Interactive • Digital signatures • Nanobucks • Electronic wallets • Portal Partner • Channel Partner • Web • ISPs • URLs • HTTP/HTML/XML • Java • Cookies • Real Audio/Video • Zines • Links • Hits • Frames • Bots • Webcam • Spam • Bandwidth • Internet2 • Auctions • B2B • B2C • B2G • m-Comm • KM • Personalization • ASPs/ESPs/CSPs • ERP and EAI • Sell Side/CRM • Buy Side • FTP • SSL and SET • Public keys and private keys

  23. Key Frameworks For Course • IT-Value • 7-S • SWOT • Business “Diamond” • Porter Industry Forces • Value Chain • CRLC

  24. Business Value Business Value Technology Efficiency Effectiveness Transformation Competitive Advantage

  25. Business Value Comes From Business Change No !!! Business Value Technology Drives Yields Business Change Creates Directs Strategy

  26. Business Diamond Management Processes Organization, Skills and Jobs Culture, Beliefs and Norms Business Processes Information and Information Systems

  27. Structure Systems Strategy Shared Values Style Skills Staff “7-S” Model Reference: Athos and Pascale, “The Art of Japanese Management”

  28. SWOT Analysis Framework Strengths Weaknesses ? Opportunities Threats

  29. Business Strategy - Porter’s Five Forces Potential Entrants Threat of new entrants Bargaining power of suppliers Industry Competitors Suppliers Buyers Rivalry Among Existing Organizations Bargaining power of buyers Substitutes Threat of substitute products or services

  30. Customer Manufacturer Firm Infrastructure M Human Resource Management a r g Technology Development i n Procurement Product Develop- ment Logistics Marketing and Sales Service Operations Primary Activities Business Strategy - Value Chain Analysis Company Support Activities

  31. Customer Satisfaction = Product Quality + "Moments of Truth" Choose/ Specify Replace/ Upgrade Order Maintain/ Repair Status Inquiry "Fix It" After Sale Servicing "Get It" Product/Service Delivery Hotline Deliver Install Real Time Support 'Use It" Usage Enrichment Pay Joint Initiatives Train Account For Inventory Customer Resource Life Cycle

  32. The Internet : A Different Look • Unique Business Propositions • Customers come to you • New channel • Target advertising markets • Businesses without inventory • Sharing of viewpoints • Ability to be small but act big • “Personalized” products Illusion of global markets Illusion of a business Illusion of community Illusion of size Illusion of skills Illusion of customization The illusion is the reality!!

  33. Business Models - Simplified List • Vertical hubs - Chemdex • Functional hub - freelance.com • E-shop - pcwarehouse.com, amazon.com* • E-mall - fashionmall.com • Advertising base - yahoo.com • Subscription base - wsj.com • Direct marketing - julie.com • Freeware - realplayer.com • Free content - napster, mp3.com • Auctions - e-bay.com • Third-party marketplace • Virtual communities - pchelp.com • Information brokerages and search services - excite.com • Top-Level “Transplanted” Models • Seller controlled - IBM.com • Buyer controlled - GE TPN • Neutral • Internet-Native Models (cost structure enabled) • Portals and CSPs • Auctions (dynamic swaps, real time) • Infomediaries

  34. CLASS 2 Tentative Slides