Business

Strategies and Applications in

IT
Text Book
 Course Content

 Overview of (Electronic Commerce) and (Electronic Business)

 E-Business Strategy (Framework of E-C)

 Framework
 Strategy Formulation
 Market Communications
 Website process Development

 E- Business Applications

 Mobile Computing
 E-Auctions
 CRM
 Chapter 1

INTRODUCTION
 E-commerce
“Doing Business on the Internet”
 E-commerce and E-business:
Definitions & Concepts
E-commerce
The process of (buying, selling or exchanging) products services or information
via networks including the internet

E-business
(E-commerce + Other business activities conducted electronically )

 The process of buying and selling or exchanging goods and

services +
 Service of customers,
 Collaboration with business partners and electronic
transactions within an organisation
 E-commerce and E-business:
Some activities

 E-commerce
 Advertising - Home pages
 Browsing/selection - Catalogs – shopping cards
 Payment/payment settlement
 Purchasing
 Order processing
 Inventory management
 Billing/Payment
 Shipping/receiving
 E-business
 Conducting meetings for geographically distributed parties
 Software development and delivery across multiple organizations
 Delivering on-line instruction and training
 Customer relationship management (CRM)
 Supply chain management (SCM)??
 Enterprise resource planning (ERP)
 Knowledge management
 Examples

 Why was amazon.com, a company started by two people in a

run down house in 1995, valued at $600 M in 1998 (beating
Barnes and Noble and Borders) ?

 Why can you buy airline tickets, reserve hotel rooms, rent? a
car on line in less time than the time to get? through to an
airline reservation agent

 Why can Cisco reinvent itself every two years while it may
take 6 years for auto companies to introduce a new car model?
 Examples: Amazon.com

• Assignments >>>
Servay or case study
Example: ebay.com
 1. Benefits for business

 World-wide reach

 Any hour of the day, any day of the year

 Find and retain new customers

 Reject intermediaries

 Turn customers into “free employees” who perform correct order data entry,
helped by intelligent software agents

 Reduce credit and collections expenses

 Benefits for business (Cont.)

 Marketing:
 Low cost and global marketing channel
 Update product catalogs in real-time
 Deliver personalized shopping experience

 Customer support:
 Order tracking

 Extensive self-service information

 Individual dialog via e-mail

 2. Critical success factors in E-Conomy

 Ability to respond to changes

 Ability to assess value to customers

 (example: amazon.com looked at value of time to buy versus time to
receive)? “Be different and original”

 Today’s strategic edge becomes tomorrow’s cost of doing

business

 Lower your operating costs - AUTOMATE

 A cheaper, faster better way of doing business is available

 3. Motivations for E-commerce

 To introduce new products and services ask advantage of brand name

 To enter the global market place

 To reply pressure from competitors

 To meet customers’ demand

 To increase sales

 To reduce transaction costs

 To reduce customer support costs

 4. Benefits for customer

 From the comfort of home or office

 Any hour of the day, any day of the year
 Access to worldwide choices
 Access to cost competition
 Access to extensive marketing information on products of interest
 Online test of digital products (e.g., music)
 Immediate download of digital products
 Personalized services (giving up some privacy in favor of personal services)
 No waiting lines
 No salesperson ?
 Use of intelligent agents to facilitate the preparation of the order

The balance of bargaining power is shifting from sellers to consumers.

 5. How e-Commerce works

• Companies publish their catalogs

online, and consumers order from the
catalogs, make payments, and track the
status of their orders online.

• In the typical scenario a customer uses a

Web browser to access a Web-based
virtual and store through the Internet
 5.1 Internet System to System

• Connect with Internet

• Add strength, redundancy, security
• Connect with other enterprise
• Translate documents
XML documents

Middleware Internet Middleware

Translator Translator

Enterprise A Enterprise B
 5.2 Electronic Commerce (narrow definition)

“Conducting business transactions through

‘market-facing systems’.”

C
U
Order-to-Cash S
Delivering services on-
line T
O
Selling products on-line M
Procurement E
EDI orders from customers
Purchasing goods and R
services electronically
S
SUPPLIERS
 5.3 Electronic Commerce (expanded definition)

electronic business
“Conducting business through ‘market-facing systems’.”
Pre-Sales
PARTNERS Providing product
Commercialization information to prospective C
Exchanging engineering customers U
drawings with partners
Order-to-Cash S
Delivering services on-
EMPLOYEES line T
Benefits Administration O
Reviewing and updating
benefits information Selling products on-line M
Procurement E
EDI orders from customers
Purchasing goods and R
services electronically Post-Sales S
SUPPLIERS Customer self-help
5.4 Electronic Data Interchange

Connect with private network

Translate documents
EDI standard documents

Middleware Private Middleware

Translator Network Translator

Enterprise A Enterprise B
 5.5 Integrated Voice Response (IVR) Applications

Public Phone Install specialized system

Telephone Network Connect to phone network
Corporate
Phone
Network

IVR System Data servers

Middleware Make core systems

Translator accessible by IVR system

Core Business Systems

 6. E-commerce and E-business: perspectives

 EC is defined through the following perspectives:

 Communications
 Delivery of goods, services, information, or payments over computer
networks

 Commercial (trading)
 Provides the capability of buying and selling products, services, and
information over the Internet and other on-line services

 Business process
 Doing business electronically by completing business processes over E-
network
E-commerce and E-business: perspectives (Cont.)

 Service
 Tool that addresses the desire of governments, firms, consumers, and
management to cut service costs while improving the quality of customer service
and increasing the speed of the delivery

 Learning
 Enabler or on-line training and education in schools, universities etc..

 Collaborative
 Framework for inter- and intra-organizational collaboration.

 Community
 Provides a gathering place for community members to learn, transact, and
collaboration
 8. e-Business Approach
• Web-enable processes
e-Make • Intranet/ Collaboration Tools
• Internal Wizards
E-Metrics

e-Sell e-Buy
e-Business
Approach
• Transactions • Source Bid (e-Auctions)
• Value Added Services (or • Supplier Extranet (Direct)
External Wizards) • e-Procurement (Indirect)

Equity • E-Business Suppliers

• Strategic Plays
 9. E-commerce and E-business:
Pure EC & Partial EC

 EC takes several forms depending on the degree of digitization (the

transformation from physical to digital)
 the product (service) sold,
 the process,
 the delivery agent

 Examples:
 Purchasing a computer form HP’s Web site or a book from Amazon.com
is ….
 Purchasing a software product from Buy.com is ………
 10. The Dimensions of Electronic Commerce

 Virtual or digital
products are all those
that can be electronically
sold or delivered, goods
that are already in digital
format or may be
digitalized
 12. Where EC is showed

 Electronic market (e-marketplace)

 An online marketplace where buyers and sellers meet to exchange goods,
services, money, or information

 Inside organizational information systems (IOSs)

 Communications system that allows routine transaction processing and
information flow between two or more organizations

 Inside organizational information systems

 Communication systems that enable e-commerce activities to go on
within individual organizations
13. A Framework for Electronic Commerce
 14. E-Business: Classification

 Business to Business (B2B)

 E-commerce model in which all of the participants are business or other
organization

 Business to Consumers (B2C)

 E-commerce model in which in which businesses sell to individuals

 Consumer to Consumers (C2C)

 E-commerce model in which consumer sell directly to other consumers

 Business-to-business-to-consumer (B2B2C)
E-commerce model in which a business provides some product or service to a
client business that maintains its own customers
 E-Business: Classification (Cont.)

 Consumer to Business (C2B)

 E-commerce model in which individuals use the Internet to sell products or services to
organizations or individuals seek sellers to bid on products or services they need

 Peer-to-peer
 Technology that enables networked peer computers to share data and processing with
each other directly; can be used in C2C, B2B, and B2C e-commerce

 E-Government (B2G, C2G etc.)

 B2B2C, B2E (employee), etc.

 M-commerce
 E-commerce transactions and activities conducted in a wireless environment

 Location-based commerce (l-commerce)

 M-commerce transactions targeted to individuals in specific locations, at specific times
 E-Business: Classification (Cont.)

 Business-to-employees (B2E)
 E-commerce model in which an organization delivers services,
information, or products to its individual employees

 Collaborative commerce (c-commerce)

 E-commerce model in which individuals or groups communicate or
collaborate online

 e-learning
 The online delivery of information for purposes of training or education

 Intra business EC
 E-commerce category that includes all internal organizational activities
that involve the exchange of goods, services, or information among
various units and individuals in an organization.
 E-Business: Classification (Cont.)

 exchange (electronic)
 A public electronic market with many buyers and sellers

 exchange-to-exchange (E2E)
 E-commerce model in which electronic exchanges formally
connect to one another for the purpose of exchanging
information

 e-government
 E-commerce model in which a government entity buys or
provides goods, services, or information to businesses or
individual citizens
 15. E-business models

 Business model:

“A method of doing business by which a

company can
generate revenue to sustain itself”
 15.1 E-business models types

 E-Shops – web marketing or a shop (B2C)

 E-Procurement – E-tendering & procurement of goods and services

 E-Shopping Centres/E-Malls– a collection of E-shops

 E-Auctions – E-implementation of bidding mechanisms

 Virtual Communities – members with common interests

 Collaboration Platforms – tools & information about environment for members to

collaborate

 Third-Party Marketplaces – leaving web marketing to third party

 Value-Chain Service Providers – support part of value chain (e-logistics, e-payments)

 Information brokers
 16. Benefits of EC:
Benefits to Organizations

 Global Reach  Lower Communication

 Cost Reduction Costs
 Supply Chain  Efficient Procurement
Improvements  Improved Customer
 Extended Hours Relations
 Customization  Up-to-Date Company
Material
 New Business Models
 No City Business Permits
 Vendors’ Specialization
and Fees
 Rapid Time-to-Market
 Other Benefits
 16. Benefits of EC:
Benefits to Consumers

 More Products and Services  Instant Delivery

 Customized Products and  Information Availability
Services  Participation in Auctions
 Cheaper Products and  Electronic Communities
Services  No Sales Tax
 16. Benefits of EC:
Benefits to Society

 Telecommuting
 Higher Standard of Living
 Homeland Security
 Availability of Public Services
17. Limitations of EC