Presentation is loading. Please wait.

Presentation is loading. Please wait.

Dean’s Seminar: The Future of e-Business in the New Millennium Ned C. Hill, Dean Marriott School of Management Brigham Young University Management Society.

Similar presentations


Presentation on theme: "Dean’s Seminar: The Future of e-Business in the New Millennium Ned C. Hill, Dean Marriott School of Management Brigham Young University Management Society."— Presentation transcript:

1 Dean’s Seminar: The Future of e-Business in the New Millennium Ned C. Hill, Dean Marriott School of Management Brigham Young University Management Society Houston April 2001

2

3

4 BYU Update u Increased enrollment (27,000 to 29,000) u Summer visiting student program u Growth in physical facilities u Growth in online courses (over 200) u Continuing education (50,000 students) u Influence throughout the world  China  Inventions  Languages

5 Marriott School Update à Faculty—125 (20 new this year!) à Students (MBA) –International 17% –Women21% –Bilingual70-80% –GMAT average 670 à Placement à Web site marriottschool.byu.edu

6 Recognition v MBA Finance #9 in world (Financial Times) v Accounting (MS/BS) #3 in U.S. v Steve Albrecht—top award from AICPA v Undergraduate Bus Mgmt ranked #31 v MBA in second 25 in Business Week & USNWR v #1 for value v MISM program #20 by ComputerWorld v Entrepreneurship program #18 by Success v “#1 Stone Cold Sober School in U.S.” Princeton Review

7 Curriculum v Strong functional area, e.g., Finance, Accounting, Marketing v Infuse throughout curriculum: t e-Business t Globalization t Entrepreneurship v Solid foundation of ethical behavior, work ethic, Gospel principles

8 International Outreach l China—designing MPA, MBA and certificate programs in Sichuan/Ningxia; microenterprise l Mexico—employment, certification l Argentina—designing EMBA program l Peru—helping congress l Honduras—HELP project l Australia—joint executive education, conferences l ISSP students—125 so far

9 Annual Management Conference w June 28-30, 2001 w Leadership and e-Business w 600-700 attended last several years w To register: marriottschool.byu.edu

10

11 The Future of e-Business in the New Millennium Outline ­ What’s wrong with the old paradigm? ­ What is e-Business? ­ How large is the market? ­ How e-Business change business processes? ­ What does e-Business mean for you?

12 e-Business: Road to Fabulous Wealth! Just add an “e” to a business process or a “.com” to a company. Without obeying well-accepted economic principles, you will magically create wealth beyond your fondest dreams. X

13 e-Business Changes... ­ Information flows ­ Internal and external processes ­ Relationships ­ Power BUT, it does not change need for… ­ Quality products ­ Excellent service ­ Cost effective delivery ­ Valued relationships

14 What’s Wrong with the Old Paradigm?

15 The Paper-based Commercial Transaction Seller Buyer Mail Carrier Banking System Request for Quote Quote Purchase Order Invoice Bill of Lading Check and Remittance Advice Check

16 Keying in the Paper World Keying Postal System Seller’s Computer System Buyer’s Computer System

17 What’s Wrong with this Picture? t Labor intensive t Slow t Error prone t Uncertain t Excessive inventory (and cash) t Bottom Line: IT’S EXPENSIVE

18 What Can We Do? ­ Option 1: Make paper work harder ­ Option 2: Get rid of the paper altogether

19 Definitions of e-Business To most people: “The selling of products and services using the Internet.” More powerful definition : The use of computer and communication technology to facilitate the information exchange between two parties in a transaction.

20 Map of e-Commerce All Electronic All Paper/ Manual EDI, FEDI, FTP Traditional Paper/Manual Transactions FAX MICR, OCR, ICR, Bar Coding Cell Phones Internet, E-mail, E-trade

21 Payment and Remittance Advice An e-Commerce Transaction Seller Buyer Carrier Banking System Request for Quote Quote Purchase Order Invoice Bill of Lading Goods

22 Manual Processes in an e-Commerce World Keying Computer Network (VAN, Internet) Seller’s Computer System Buyer’s Computer System Translation P.O. Invoice RA F.A.

23 Changes Due to e-Business è Lower personnel costs è Reduced error rates è Faster cycle time è Improved customer service è Reduced inventory è Fewer stock-outs è Reduced paper handling costs è Faster payments è Better control over information è Potentially creates entirely new markets

24 Online Households From Net Profit by Peter S. Cohan Million

25 Web Ad Revenues From Net Profit by Peter S. Cohan $ Million

26 Business Through the Web Est. from the U.S. Department of Commerce $ Billion

27 Size of e-Business Market Billions of dollars, projected for 2003

28 Cost Curves u Labor costs u Paper costs u Building costs vs. u Computer costs u Telecommunication costs

29 Time Required to Download the 32 Volume New Encyclopedia Britannica ¬ 1200 bps modem……………………..… 28 days ¬ 9600 bps modem………………….…… 3.5 days ¬ 28.8 Kb modem……………………….. 28 hours ¬ Basic Rate ISDN…………..……….… 6.3 hours ¬ T-1 line…………..…….……….….. 31 minutes ¬ T-3 line…………..……………….… 1 minute ¬ Optical Fiber (OC-3)…….…….…. 17 seconds ¬ Optical Fiber (OC-12)…….……... 4.7 seconds ¬ Optical Fiber (new technology).....005 second

30 e-Business Impacts Everything e-Business Finance Accounting Marketing Strategy Operations Systems Supply Chain HR

31 Example 1: Bergen Brunswig Paper System Pharmacist Bergen Brunswig Order Manual Processing Delivery Payment

32 Example 1: Bergen Brunswig e-Business System Pharmacist Bergen Brunswig Order Automated Processing Delivery Payment Capture bar code on shelf label PC consolidates entire order Order transmitted over Internet Warehouse is automated Delivery is within 5 hours

33 Example 1: Bergen Brunswig What Changed? t Sales function à Role of salesperson à Information channel t Order fulfillment processes à Manual to automated t HR focus à Compensation issues à Hiring & training t Customer relationships à Responsibility for order initiation/errors à Service level

34 Example 2: Daimler-Chrysler Vendor Relationships under e-Business Chrysler Supplier Purchase Order Delivery e-Payment e-Material Release e-Delivery Order e-Advanced Ship Not.

35 Example 2: Daimler-Chrysler ] Inventory management t Just-in-time possible ] Invoiceless pay (“Evaluated Receipt Settlement”) ] Quality control moved back to supplier ] Close cooperation necessary ] Tolerance for errors is much lower ] Result? Inventory Reduced by $1,000,000,000

36 Four Stages of Web Involvement t Stage 1: “Brochure” –One-way information broadcast –Lowest cost, easiest to maintain –A holder for your place in e-commerce t Stage 2: “Basic Transactions” –Offer basic transactions: orders, payment –Requires significant maintenance, real-time processing –May compete with existing business avenues

37 Four Stages of Web Involvement t Stage 3: “Complete Business Partnership” –Multiple transactions with customers –Integrated functionality –Builds customer loyalty, long-term relationships –Involves major funding commitments t Stage 4: e-Market Participation

38 Four Stages of Web Involvement Stage 1 Stage 2 Stage 3 Cisco: Product Info.Design OrdersStatus Customer serviceDelivery Payment LandsEnd: Catalog Orders WSJ: News Stage 4 NASDAQ: Multiple buyers Multiple sellers

39 e-Marketplaces Automated Matching Rules Buyer Seller Record keeping, reporting, etc. Banking Regulatory Agencies Regulatory Agencies Internet-based Marketplace

40 Should My Company Go on the Web? ü Do we have $100,000 to $200,000 to invest in launching a Web site? (And are we willing to invest in maintaining it?) ü Are our competitors involved in the Web? ü Do our customers demand Web services? ü Do we have customer service opportunities that could be improved via the Web? ü Is a significant portion of our customer base under the age of 30? ü Do we want to be in business 2-5 years in the future?

41 Suggestions on Entering e-Business < Keep your focus on creating value for your customer--don’t get lost in the technology < Use e-Business to improve processes and information flow--don’t pave over old cow paths < Develop customer loyalty by providing multiple services that add value < Partner when necessary to widen your ability to provide services

42 Want to Find an Internet Business Opportunity? Hint: Study Possible Timelines t Consumer shopping t Applying to college t Buying a house t Booking a flight t Checking out a book from a library Also ask: Will this add value? And will people pay for it?

43 Be Careful of e-Business Negatives e-Business… t Demands technologically sophisticated staff— make sure you have them (or can obtain other services) t Demands constant attention to keep up web sites t May alienate some customers t May alienate some employees—e.g., ubiquitous contact with the office t Will lead to problems if you overlay technology onto a poorly designed information system t May create security issues t May create audit control problems

44 Rollins Center for e-Business £ Faculty development £ Curriculum enrichment £ Research £ Public awareness £ Partnerships with e-Businesses

45 General Course Map for e-Business Foundation Technologies: Networking, Data Bases, Programming Overview of e-Business Overview of e-Business Application to Functional Areas: Finance, Marketing, Operations, HR, Government, etc. Application to Functional Areas: Finance, Marketing, Operations, HR, Government, etc. Strategy and e-Business Strategy and e-Business Enter

46 Using e-Business within the University t Applications -- Internet t Course Registration -- Internet t Purchase of Supplies -- Internet t Phone Bills -- EDI t Grade Transcripts -- EDI t Travel Arrangements -- Internet t Alumni Relations X Publications -- Internet X Communications -- e-Mail t Internal Communications -- MS Outlook t Correspondence Courses -- Internet/CD Rom

47 Examples of Computer-Assisted Courses AccountingReplaces lectures Rat LabDecreases costs Chemistry LabAllows experiments LanguagesAdaptive learning MusicVisualizing Bach AccountingRepetitive drills Course Key Feature

48 References on e-Business F Evans and Wurster, Blown to Bits: How the New Economics of Information Transforms Strategy, Harvard Business School Press, 2000 F Tapscott, et al, Digital Capital: Harnessing the Power of Business Webs, McGraw Hill, 2000 F Shapiro and Varian, Information Rules: A Strategy Guide to the Network Economy, Harvard Business School Press, 1999 F Kalakota and Robinson, e-Business: Roadmap for Success, Addison Wesley, 1999 F Naisbitt, High Tech, High Touch, Broadway Books, 1999 F Friedman, The Lexus and the Olive Tree, Anchor Books, 2000 F Nicholas Negroponte, Being Digital, Knopf, 1995-- one of the most insightful commentaries on the Information Age

49 Conclusions w Technology is changing the business (and the educational) paradigm w But e-Business is not a cure-all—just another tool (and a very powerful one) w Most changes are beneficial—some are detrimental w Learn all you can about e-Business w You will be doing e-Business sooner or later-- might as well get started now!

50

51 e-Business Changes Curriculum u Some create separate programs –Easier to transition--don’t have to change other classes –Lots of new material to cover –But “e-business” is going away!?! u Better to integrate e-business into existing courses –More faculty have to upgrade –But better for students in the long run

52 Graduate Program at BYU Networking Databasee-Business Application Management Development Networking Databasee-Business Application Management Development Introduction to e-Business Introduction to e-Business Strategy and e-Business Strategy and e-Business Enter Functional areas can experiment here Special Topics Special Topics Brand Mgmt and e-Business Brand Mgmt and e-Business Internet Marketing Internet Marketing Treasury Mgmt. & e-Business Treasury Mgmt. & e-Business Lecture Series Lecture Series Existing New Existing New Existing


Download ppt "Dean’s Seminar: The Future of e-Business in the New Millennium Ned C. Hill, Dean Marriott School of Management Brigham Young University Management Society."

Similar presentations


Ads by Google