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Introduction

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Introduction

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  1. King Fahd University of Petroleum & MineralsCollege of Computer Science & EngineeringDepartment of Computer EngineeringShort Course onE-Business: Strategies, Processes and TechnologiesIftikhar NadeemSenior Consultant, E-Business SolutionsCenter for Economics & Management SystemsResearch Institute, KFUPM

  2. Introduction • Major Industry Trends • E-Business Drivers and Responses • What is eBusiness? • E-Business Networks • E-Government • E-Marketplaces • E-Business issues and Success Factors • E-Readiness • E-Business: the Case of Saudi Arabia

  3. Market Value of an Organization Tangible Assets • Buildings • Equipment • Furniture • Cash Intangible Assets • Skills & competencies • Motivation of employees • Databases • Information technologies • Efficient & responsive processes • Customer loyalty & relationships Value of tangible assets 1982: 62% 1992: 38% 2000: 10-15% Source: Brookings Institute

  4. Major Industry trends • Consumer trends • Service/process trends • Organizational trends • Enterprise technology trends

  5. Consumer Trends • Speed of service • Self-service • Integrated solutions, not piecemeal products

  6. Service/Process Trends • Convergence of sales & service: customization and integration • Ease of use: make service consistent and reliable • Flexible fulfillment and convenient service delivery: streamline your supply chain

  7. Organizational Trends • Contract manufacturing: becoming brand intensive, not capital intensive • Retain the core, outsource the rest: Business process outsourcing • Increasing process transparency and visibility • Continuous innovation and employee retention

  8. Enterprise Technology Trends • Enterprise applications: Connect the corporation • Infrastructure convergence: Increasing melding of voice, data and video • Multichannel integration: computer telephony integration and voice recognition • Wireless applications enter the mainstream • Leveraging legacy investment: The rise of middleware for systems integration

  9. Business Drivers of the New Economy • Global financial interdependence • Deregulation • Unrestricted capital flows • Digitization • Global communication and transportation • New geopolitical realities

  10. Key Business Challenges • Agility and Speed • Focus on core competencies and processes • Customer centrality • Mass customization • Flexible IT architecture • Interoperability of infrastructure and applications portfolios

  11. New Business Models and Structures • Aggregators • Portals • Info-mediaries • E-tailers • Hybrids • Virtually integrated • Mega-mergers

  12. E-Business is About Business Business Driving IT E-Business IT Driving Business

  13. Major Benefits of eBusiness • Global reach • Reduced cost • Convenience • Higher productivity and efficiency

  14. E-Business E-Business is about enabling organizations to cohesively bring together their processes and Internet technologies for cost effectiveness, efficiency and better relationships between partners.

  15. E-Business E-Business is the electronic connection of business operations to customers, suppliers, employees and other partners. It includes, but not limited to, product marketing, order entry, inventory tracking, order fulfillment and after-sales support.

  16. E-Commerce E-Commerce has a narrower definition and only involves buying and selling goods and services over the Internet. It is normally limited to catalogs, order entry, authorization and delivery confirmation.

  17. Intranet and Extranet The E-Business Network Network Hardware Network Software E-Business Network Enabling Technology Networking Vendors E-Commerce Applications

  18. eBusiness: Technologies and Skills • Web technologies • Database technologies • Integration technologies • Networking technologies • Security technologies • CIW Tracks: • Designer • Developer • Administrator

  19. What is Important in an E-Business Network? • Functionality • Reliability • Security • Speed • Scalability • Access Control

  20. Why Does an E-Business Network Matter to a User? • To share knowledge and reap productivity gains by finding information faster • To communicate faster with clients and suppliers • To provide options for teleworking • To implement web services • To enable teams to work collaboratively irrespective of geography • To better automate business procedures

  21. Why Does an E-Business Network Matter to an Enterprise? • To create fundamental changes in business processes • To enable fast responses and agile maneuvering • To negotiate more effectively with suppliers • To create competitive advantage • To provide instant access to global markets • To lower costs • To enable the convergence of voice, data and video • To use the e-business as a key to business operations

  22. CEOs are Focusing on These E-Business Issues • Building customer loyalty • Achieving market leadership • Streamlining business processes • Creating new products/services • Ascertaining compliance • Reaching new markets

  23. E-Business Best Practices • Personalize relations • Maintain visitor privacy • Make your site easy to use • Manage visitor perceptions • Maintain site consistency • Manage business knowledge • Response quickly

  24. E-Business Hype Cycle Visibility Peak of expectation Dot Com True E-business WWW Enlightenment Disillusionment Tech Trigger 1990-96 97 98 99 2000 01 02 03 04 05 06 07 08 09 2010 Source: Gartner Group

  25. Worldwide IT Spending Growth(New Scenario) % Source: IDC, October 18, 2001

  26. Global E-Readiness It describes the extent to which a country’s business environment is conducive to Internet-based commercial opportunities • EIU E-Readiness Assessment Model 2001 • Connectivity (30%) • Business Environment (20%) • E-Commerce Adoption (20%) • Legal Environment (15%) • Supporting E-Services (10%) • Social and Cultural Environment (5%)

  27. Grouping of Countries by E-readiness Ranking E-business leaders E-business contenders E-business followers E-business laggards US (8.73) Australia UK Canada Norway Sweden Singapore Finland Denmark Netherlands Switzerland Germany Hong Kong (7.45) Ireland (7.28) France Austria Taiwan Japan Belgium New Zealand South Korea Italy Israel Spain Portugal (6.21) Bulgaria (3.38) China Ecuador Iran Romania Ukraine Algeria Indonesia Nigeria Kazakhstan Vietnam Azerbaijan Pakistan (2.66) Greece Czech Republic Hungary Chile Poland Argentina Slovakia Malaysia Mexico South Africa Brazil Turkey Colombia Philippines Egypt (3.88) Peru Russia Sri Lanka Saudi Arabia (3.80) India Thailand Venezuela .Source: The Economist Intelligent Unit, 2001

  28. Internet Subscribers in the ArabRegion Source: Ajeeb.Com

  29. eBusiness: The case of Saudi Arabia Weaknesses Strengths • Lack of local IT professionals • High Internet access cost • High implementation cost • Lack of legal environment • Arabization of content • Telcom operator monopoly • Largest Arab economy • Free market mindset • Large trading community • Good teledensity • Hi growth in PC penetration • Modern infrastructure Low Opportunities Threats • Regional initiatives • WTO (if not prepared) • Cultural backlashes • Internet (if not...) • Regional economic integration • Reduction in overhead costs • Expanding markets • Trade barriers coming down

  30. Conclusions • E-Business is about business. • IT deployment decisions are business/investment decisions. • IT investments make well-managed companies better, and poorly-managed companies worse.

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