Graduate School of Business

Graduate School of Business
Chapter 8 Innovative EC Systems: From E-Government and E-Learning to Consumer-to-Consumer Commerce Jason C.H. Chen, Ph.D. Professor of MIS Graduate School of Business Gonzaga University Spokane, WA USA

Learning Objectives Describe various e-government initiatives.
Describe e-learning, virtual universities, and e-training. Describe online publishing and e-books. Discuss wikis and blogging. Describe knowledge management and dissemination as an e-business. Describe C2C activities. Describe peer-to-peer networks and applications.

8.1 E-Government: An Overview
E-commerce model in which a government entity buys or provides goods, services, or information to businesses or individual citizens

E-Government: An Overview
Several major categories fit within this broad definition of e-government: government-to-citizens (G2C) E-government category that includes all the interactions between a government and its citizens Government-to-business (G2B) Government-to-government (G2G) Government-to-employees (G2E) Internal Efficiency and Effectiveness (IEE – Intrabusiness)

government-to-citizens (G2C) E-government category that includes all the interactions between a government and its citizens electronic voting Voting process that involves many steps ranging from registering, preparing, voting, and counting (voting and counting are all done electronically) Netizen A citizen surfing the Internet Electronic benefits transfer

government-to-business (G2B) E-government category that includes interactions between governments and businesses (government selling to businesses and providing them with services and businesses selling products and services to government)

Government-to-Business (G2B) Government e-procurement Group purchasing eFAST service conducts reverse auctions (sellers bid) for aggregated orders Forward e-auctions auction surplus or other goods Tax collection and management electronic filing of taxes is now available in over 100 countries

G P O Group Purchasing Organization Process B S u u p y p e l r i e r
? in eG [Stage1-b] [Stage1-a] Forecast Demand RFQ G P O B u y e r RFQ Bid Negotiate Contract Response Confirm (Price OK) S Place Orders u Process Orders p Shipping Orders p Receiving Orders . . . l Invoicing Payment RFQ i VPTM e [Stage3] [Stage2] r Shipping / Receiving Orders Returns / … … S eG: individual divisions/dpeartments Refund Process Shipping / Receiving Orders e Invoice l Payment l Returns e r [Stage4] Refund Process VPTM : Vender Performance Tracking & Management

government-to-government (G2G) E-government category that includes activities within government units and those between governments government-to-employees (G2E) E-government category that includes activities and services between government units and their employees

Government-to-Employees (G2E) Internal efficiency and effectiveness E-payroll E-records management E-training Enterprise case management Integrated acquisition Integrated human resources One-stop recruitment Facilitating Homeland Security

Stages of Moving to E-Business and to E-Government
Content Provider – an effective means of reaching millions of potential customers but without using the Web’s interactive and multimedia capabilities Transaction Forum – focused on B2C but seen as a supplement to “bricks and mortar” Integrator – integrate the entire chain of sales, order processing, etc. with legacy systems Integrator – SCM,DCM (demand), ERP Changes include: processes, skills, and structure 4. Catalyst for Industry Restructuring – the result of the transforming effects of the Internet on traditional forms of commerce Catalyst for Industry Restructuring – business over the Internet was transforming a number of industries. Some industries were reshaped by compressions and expansions in e-channels. Wilcocks, Sauer and Associates (2000)

Evolution of E-Business and to E-Government
With the growth of the Internet more businesses are using it to transact business between partners (B2B – see Figure 7.2). Now, the term e-business refers to business conducted over the Internet. Business on the Internet has evolved through a number of stages: : Stage I : Stage II : Stage III Catalyst for Industry Restructuring: Stage IV Content Provider Content Provider – an effective means of reaching millions of potential customers but without using the Web’s interactive and multimedia capabilities Transaction Forum – focused on B2C but seen as a supplement to “bricks and mortar” Integrator – integrate the entire chain of sales, order processing, etc. with legacy systems Integrator – SCM,DCM (demand), ERP 4. Catalyst for Industry Restructuring – the result of the transforming effects of the Internet on traditional forms of commerce Catalyst for Industry Restructuring – business over the Internet was transforming a number of industries. Some industries were reshaped by compressions and expansions in e-channels. Transaction Forum Integrator

8.2 Implementing E-Government
Transformation process Stage 1: Information publishing/dissemination Stage 2: “Official” two-way transactions with one department at a time Stage 3: Multipurpose portals Stage 4: Portal personalization Stage 5: Clustering of common services Stage 6: Full integration and enterprise transformation From earlier (immature) stage to recent (mature) status. Stage 1: Information publishing/dissemination Stage 2: “Official” two-way transactions with one department at a time (with other transaction such as money) Stage 3: Multipurpose portals: allow customers to use a single point of entry to send and receive information and to process monetary transactions across multiple departments Stage 4: Portal personalization: permits interfaces to be manipulated by the users so that governments get a more accurate read on customer preferences for electronic vs. nonelectronic service options. Stage 5: Clustering of common (shared) services and a business restructuring will take place. With services as a unified package thru the portal, customers’ perception of departments as distinct entities will begin to blur. Stage 6: Full integration and enterprise transformation

Eminence of Web-based Applications
Exhibit 8.4 The Stage of E-Government Eminence of Web-based Applications STAGE 6 Full Enterprise Transformation STAGE 5 Portals Clustering of Common Service High STAGE 4 Portals Personalization STAGE 3 Multipurpose Portals STAGE 2 “Official” Two-Way Transactions STAGE 1 Information Publishing Low Low High Degree of Enterprise transformation Source: Wong, W.Y. At the Dawn of E-Government. New York: Deloitte Research, Deloitte & Touche, 2000.

Implementing E-Government (cont.)
Implementation issues Transformation speed G2B implementation Easier than implementation of Security and privacy issues Wireless applications B2E applications, especially for field employees Business aspects Citizen Adoption of E-Government Non–Internet E-Government slow G2C Transformation speed -- slow; (1) the degree of resistance to change by government employees, (2) rate at which citizens adopt the new applications, (3) the available budge, and (4) the legal environment G2B implementation -- Easier than implementation of G2C Security and privacy issues Wireless applications -- B2E applications, especially for field employees

E-government information INTENTION TO ENGAGE E-GOVERNMENT
Exhibit (EXTRA) E-Government Adoption Institutional Structures Culture (uncertainty Avoidance) Culture (power distance acceptance) Perceived Ease of Use Disposition to Trust Intention to Receive E-government information Perceived Usefulness Intention to Request E-government Service Characteristics- based Trust Trust in E-government INTENTION TO ENGAGE E-GOVERNMENT Perceived Behavioral Control Source: Warkentin, M., et al. “Encouraging Citizen Adoption of E-Government by Building Trust.” Electronic Market 12, no. 3 (2002) Courtesy of Taylor & Francis Ltd., tandf.eo.uk.journals. Experience (familiarity) Initial versus Repeat User Perceived Risk Direct effect Degree of Intrusiveness Moderating effect

8.3 E-Learning e-learning
The online delivery of information for purposes of education, training, or knowledge management

E-Learning

Learning as a process The Learning Process What will be the result?
What should I learn? The Learning Process Focus Environment Technique How can I learn? Why should I learn? Source: A Learning process model to achieve continuous improvement and innovation, B. Buckler, The Learning Organization

E-Learning Benefits of E-Learning Time reduction
Large volume and diversity Cost reduction Higher content retention Flexibility Updated and consistent material Fear-free environment

E-Learning (cont.) Drawbacks and challenges of e-learning
Need for instructor retraining Equipment needs and support services Assessment Maintenance and updating Protection of intellectual property Computer literacy Student retention Lack of face-to-face interaction and campus life

E-Learning Why E-Learning Fails
Believing that e-learning is always a cheaper learning or training alternative Overestimating what e-learning can accomplish Overlooking the shortcomings of self-study Failing to look beyond the course paradigms Viewing content as a commodity Ignoring technology tools for e-learning or fixating too much on technology as a solution Assuming that learned knowledge will be applied

E-Learning distance learning
Formal education that takes place off campus, usually, but not always, through online resources virtual university An online university from which students take classes from home or other off-site locations, usually via the Internet

E-Learning Online Corporate Training The drivers of e-training
Technological change Competition and cost pressures Globalization Continual learning Network connectivity

E-Learning edutainment
The combination of education and entertainment, often through games E-Learning Tools IBM Workplace Collaborative Learning 2.6 ComputerPREP Macromedia eCollege Artificial Life

Creating Collaborative Learning Communities
Business Strategy & Objectives Group & Individual Competencies Learning Group Processes Supporting Technology

Risk and Return in the “Old World of Business”
Using Information Technology for Optimization-Based Efficiencies High Reengineering Rationalization Risk Automation Low Low High Return

“Old World” of Business E-World of Business
From “Old World” to E-World of Business: Knowledge Management for “Paradigm Shifts” “Old World” of Business E-World of Business REENGINEERING IT-Intensive Radical Redesign KNOWLEDGE MANAGEMENT for “Paradigm Shifts” Radical Rethinking of the Business and Organization for a “World of Re-everything” RATIONALIZATION Streamlining Bottlenecks AUTOMATION Replacing humans with machines

8.4 Online Publishing and E-Books
The electronic delivery of newspapers, magazines, books, news, music, videos, and other digitizable information over the Internet e-zines Electronic magazine or newsletter delivered over the Internet via

E-Books E-book: A book in digital form that can be read on a computer screen or on a special device E-books can be delivered and read via: Web download Web access Dedicated reader General-purpose reader Web server Advantages of e-books -- Portability; Lower production and distribution costs -- Lower updating and reproduction costs -- Ability to reach many readers -- Ease of combining several books (customization) -- Lower advertising costs Limitations of e-books -- E-books require hardware and software that may be too expensive for some readers -- Some people have difficulty reading large amounts of material on a screen -- Batteries may run down; There are multiple, competing standards -- Only a few books are available as e-books

Online Publishing and E-Books
Types of E-Books Traditional book format Online bookshelf The download The Rubics-cube hyperlink book The interactive, build-your-own (BYO) decision book The online reference book model

Print-on-Demand A publisher creates a digital master, typically in Adobe Systems’ Acrobat format, and sends it to a specialized print-on-demand company. The files are stored on the printing company’s network When an order is placed, a print-on-demand machine prints out the text of the document or book and then covers, binds, and trims it. The entire process can take about a minute for a 300-page book The book is packaged and shipped to the publisher or the consumer

Advantages and Limitations of E-Books E-Book Issues Digital Libraries

E-Books (cont.) E-book issues
How to protect the publisher’s/author’s copyright How to distribute and sell e-books How much to charge and collect payment for an e-book How to best support navigation in an e-book Which standards to use How to increase reading speed How to deal with resistance to change How to design an e-book How publishers can justify e-books in terms of profit and market share How to secure content

podcast A media file that is distributed over the Internet using syndication feeds for playback on mobile devices and personal computers. As with the term radio, it can mean both the content and the method of syndication podcaster The host or author of a podcast

BREAK-1 Application Case 8.1: Contract Management in Australia (p.369)

8.5 Blogs and Wikis Weblogging/blogging: Technology for personal publishing on the Internet Blog: Very popular after terrorist attacks of 9/11 Blogs comfort people in times of stress Blogs is becoming easier and easier A personal Web site that is open to the public to read and to interact with; dedicated to specific topics or issues

Blogs and Wikis Seven principles for building effective blogs:
Focus intently on a narrow niche, ideally one whose audience has a predilection for high-margin products Set up blogs so that each post gets its own permanent URL Think of a blog as a database, not a newspaper-like collection of dispatches Blog frequently and regularly, at least half a dozen posts every weekday Use striking images that liven up the pages and attract readers Enable comments and interact with readers Make friends with other bloggers, online and off

Blogs and Wikis wikilog (wikiblog or wiki)
A blog that allows everyone to participate as a peer; anyone may add, delete, or change content. Commercial uses of blogs Potential risks of blogs Establish comprehensive, written rules and policies Educate employees about blog-related risks, rules, and regulations Enforce blog policy with disciplinary action and technology Bloggers and politics

8.6 Knowledge Management and E-Commerce
knowledge management (KM) The process of capturing or creating knowledge, storing it, updating it constantly, interpreting it, and using it whenever necessary Organizational knowledge base The repository for an enterprise’s accumulated knowledge

Focus on e-Business Applications
Knowledge Management/Business Intelligence E-Commerce E-Customer Relationship Procurement Network Trading Network E-Channel Management Businesses & Consumers (CRM) Businesses (SRM) M:1 M:N 1:N E-Portal Management E-Business, E-Services SCM/ERP/Legacy Appls

Knowledge Management and E-Business Strategy
Information Technology Knowledge Management E-Business Strategy Creativity and Innovation

Transitions to the World of E-Business
Strategy Technology Management Knowledge Assets Organizations Prediction Convergence Compliance Utilization Tangibles Structure “Anticipation of Surprise” Divergence Self-Control Creation and Renewal Intangibles Edge of Chaos Industrial Business E-Business

Figure: The four modes of knowledge conversion
Tacit Knowledge Explicit Knowledge Socialization (Sympathized Knowledge) Internalization (Operational Knowledge) Externalization (Conceptual Knowledge) Combination (Systematic Knowledge) Transferring tacit knowledge through shared experiences, apprenticeships, mentoring relationships, on–the-job training, “Talking at the water cooler” Articulating and thereby capturing tacit knowledge through use of metaphors, analogies, and models Converting explicit knowledge into tacit knowledge; learning by doing; studying previously captured explicit knowledge (manuals, documentation) to gain technical know-how Combining existing explicit knowledge through exchange and synthesis into new explicit knowledge FROM TO Source: Ikujiro Nonaka and Hirotaka Takeuchi, The Knowledge-Creating Company, 1995

Figure: Organizational Knowledge Creation and its Support
Formal and informal representations (models, notes, web pages, etc. ) Externalization explicit Combination Internalization tacit Socialization Model resolution, Presentation networking Principal of Escalation Model-based Workflow Support, Navigation Support Error observation Source: Klamma, R., Jarke M., (1998), “Supporting Organizational Learning Processes through Failure Management.”=

Knowledge Management and E-Commerce
Core knowledge management activities for companies doing EC should include the following electronically supported activities: Knowledge creation Knowledge capture and codification Knowledge classification Knowledge distribution Knowledge utilization Knowledge evolution

knowledge portal A single-point-of-access software system intended to provide timely access to information and to support communities of knowledge workers information intelligence Information, data, knowledge, and semantic infrastructure that enable organizations to create more business applications

KM has four tasks: Creating knowledge repositories where knowledge can be stored and retrieved easily Enhancing a knowledge environment in order to conduct more effective knowledge creation, transfer, and use Managing knowledge as an asset so as to increase the effective use of knowledge assets over time Improving knowledge access to facilitate its transfer between individuals

Online Advice and Consulting Medical advice Management consulting Legal advice Gurus and answers to queries Financial advice Other advisory services

Employees’ Knowledge Networks and Expert Advice within Organizations expert location systems Interactive computerized systems that help employees find and connect with colleagues who have expertise required for specific problems—whether they are across the country or across the room—in order to solve specific, critical business problems in seconds

desktop search Search tools that search the contents of a user’s or organization’s computer files rather than searching the Internet. The emphasis is on finding all the information that is available on the user’s PC, including Web browser histories, archives, and word-processor documents, as well as in all internal files and databases

(capture, retain, categorize, retrieve, and display information)
KM and Portals KM (public) Users Portal KM (capture, retain, categorize, retrieve, and display information) KM (private)

BUSINESS INTELLIGENCE
Business intelligence – information that people use to support their decision-making efforts Principle BI enablers include: Technology People Culture Technology Even the smallest company with BI software can do sophisticated analyses today that were unavailable to the largest organizations a generation ago. The largest companies today can create enterprisewide BI systems that compute and monitor metrics on virtually every variable important for managing the company. How is this possible? The answer is technology—the most significant enabler of business intelligence. People Understanding the role of people in BI allows organizations to systematically create insight and turn these insights into actions. Organizations can improve their decision making by having the right people making the decisions. This usually means a manager who is in the field and close to the customer rather than an analyst rich in data but poor in experience. In recent years “business intelligence for the masses” has been an important trend, and many organizations have made great strides in providing sophisticated yet simple analytical tools and information to a much larger user population than previously possible. Culture A key responsibility of executives is to shape and manage corporate culture. The extent to which the BI attitude flourishes in an organization depends in large part on the organization’s culture. Perhaps the most important step an organization can take to encourage BI is to measure the performance of the organization against a set of key indicators. The actions of publishing what the organization thinks are the most important indicators, measuring these indicators, and analyzing the results to guide improvement display a strong commitment to BI throughout the organization.

Working , Not just Harder
Smarter Overlapping Human/Organizational (Culture, Process)/ Technological factors in BI/KM: PEOPLE ORGANIZATIONAL PROCESSES Overlapping Human/Organizational/ Technological factors in KM: People (workforce) Organizational Processes Technology (IT infrastructure) IS – IT, Organization and Management TECHNOLOGY Knowledge N

Essential Value Propositions for a Successful Company
Business Competency Set corporate goals and get executive sponsorship for the initiative Model Core Execution First, you have to have a business model, then, the company needs to set corporate goals and get executive sponsorship for the initiative." "Start with your business objectives of the product or service the company is selling, figure out where it is in the lifecycle, and determine which phase of CRM to focus on, for example, the company should determine whether it wants to focus on acquiring customers, retaining customers or up-selling and cross selling to customers." Examples: Dell vs. Gateway and Toyota vs. GM/FORD

Relationship between the Organizational Knowledge and Core Competency
Can be transferred and reused efficiently and effectively across functional areas (sharing and collaboration) Core competency A specific business context Best Practices Top down Initiates an assessment of the firm’s core K which is fundamental to the business. Outcome: core K asset is identified The firm develops a strategy and establishes technical infrastructures, organizational mechanisms, and business rpocesses necessary for managing the core K as an asset the firm makes decisions on how to embed KM in everyday business process Bottom-UP follow Knowledge creations and reuse (K “harvesting” process) K hunting: refers to the process of collecting K, harvesting the process of filtering, and hardening the process of structuring tacit, useful K into explicit, reusable K. K hardening begins with applying harvested organizational K to specific business context – that produces best practices Once the best practice is developed in the critical business areas, the K that generalizes beyond the original context is identified and retained as a CORE COMPETENCY IT People Culture Organizational knowledge

8.7 Customer-to-Customer E-Commerce
customer-to-customer (C2C) E-commerce model in which consumers sell directly to other consumers C2C Auctions general sites (eBay.com, auctionanything.com) specialized sites (buyit.com, bid2bid.com) Classified Ads Personal Services C2C Exchanges Selling Virtual Properties Support Services for C2C C2C

8.8 Networks and Applications
Peer-to-peer Peer-to-Peer Networks and Applications (P2P): A network architecture in which workstations (or PCs) share data and processing with each other directly rather than through a central server P2P networking connects people directly to other people Provides an easy system for sharing, publishing, and interacting that does not require knowledge of system administration Person2Person People2People Point2Point P2P

Peer-to-Peer Networks and Applications

Peer-to-Peer Networks and Applications (cont.)
Characteristics of P2P systems provide for real-time access to other users (e.g., instant messaging) maximize the use of physical attributes such as processor cycles, storage space, bandwidth, and location on the network employ user interfaces that load outside of a Web browser address the need to reach content resources located on the Internet periphery support “cross-networking” protocols promote popular interest by doing something new or exciting

Models of P2P applications Collaboration Content distribution Business process automation Distributed search

Intrabusiness P2P applications companies are using P2P to facilitate internal collaboration B2B P2P applications enable companies to store documents in-house instead of on an unknown, and possibly unsecured, server B2C P2P applications Marketing Advertising B2C payments

BREAK-2 Application Case 8.6: Online Knowledge Sharing at Xerox (p.394)

Managerial Issues Can we blog for business?
Are there e-learning and e-training opportunities? Can we capitalize on C2C? How well are we managing our knowledge? What are the e-government opportunities?

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