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E-business Definition

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Presentation on theme: "E-business Definition"— Presentation transcript:

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
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 Ref: National Business-to-Business Centre
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 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 warehousing In-side e-business – intranets used for optimising internal processes and communications. E.g. manufacturing, management and operations Sell 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 suppliers Review 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 collaborate more 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 vision Get senior management support and resource Select a project team and analyse requirements Revisit value network and core competencies Design e-business architecture Develop, pilot, train, and roll-out Benchmark, measure and monitor 9 E-Business Page

26 Creating the E-Business
Measure & Monitor Management/Culture Creating the E-Business What will the business do? What benefits will it bring? Suppliers and procurement needs (Buy-side) Internal staff and management needs Other stakeholders (inside) Client and customer needs (Sell side) Application development Time management Quality and testing Future options – spin out Constant improvements Customer delight The Vision Develop, Pilot, Train, Roll-out Research Business Drivers Financial Management E-Business Technology Mgmt E-Business Architecture Project Team Business processes Roles and responsibilities through the complete value chain Seamless information flow internally and externally Front-end and back-end How built? Scalable? Robust? Secure? Value Network Project leader Cross-functional teams Inside and outside the organisation Linking processes and information flows Discovery workshop Real time access Talent Mgmt Project Mgmt Focus on core Competencies, Options for downsizing or outsourcng 9.7 Creating the E-Business Page 420

27 Creating the Value Network
E-Research E-commerce & E-CRM 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 Other Stakeholders Trade Channels/ Resellers Business Process Integration Value Network Partner Relationship Mgmt Suppliers Staff & Mgmt Financial systems Sales and Purchase ledger Order processing Sourcing Supplier performance measurement IT/IS Systems Talent management, personnel profiles, project blogs and wikis, time planning, forums, groups, events. E-Procurement Intranet Systems Systems development and testing, service and support 9.7 Creating the E-Business Page 420

28 9.8 E-Business Security Credit card fraud Distributed denial of service Website grafitti Viruses User-generated-content exposure Intellectual property theft Sensitive data theft Solutions include: firewalls, filters, encryption, moderation, vigilance. 9 E-Business Page

29 9.9 E-Business Success Criteria
Support of parent company or investment Building on existing brand equity where possible Existing management team and structure Value network in place Create new value network Business Process Re-engineering Realistic pace of development Determine an existing or new niche 9 E-Business Page

30 9.10 E-Business Failure Criteria
Bad idea Bad production or delivery Management inexperience or inflexibility Failure to create niche Isolated from value network Not focused on customer needs Poor marketing Investor panic Late or poor technology 9 E-Business Page

31 Chapter 9. Summary Business processes and information flows Systems architecture Procurement, internal and sales dimensions Supply chain management Knowledge management and intranets PRM and CRM E-business development process Security threats Success criteria Reasons for failure 9 E-Business Page

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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