1. E-Business: Intra-Business E-Commerce
Chapter 6
E-Business: Intra-Business
E-Commerce

2. Internal Communication
Historically, paper
Updating a paper procedures manual
Outdated material
Numerous misunderstandings
Some legal actions
B2Employee E-commerce
Maintain online – Web site
E-business more general than B2E
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3. Figure 6.1 Miami University’s online publications and policies.
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4. B2C vs. Intra-business E-commerce
Consumer oriented B2C
Revolutionary
Aggressive and risky
First movers
Intra-business and B2B
Evolutionary
Methodical
In business context
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Figure 6.3 The value chain.
The key to intra-business e-commerce is improving value chain efficiency.
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6. Figure 6.4 The value chain for a personal computer manufacturer.
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7. Figure 6.5 Each value chain process consists of sub-processes.
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8. Efficiency and Effectiveness
Objective: reduce operating costs
Efficiency gains
Within individual processes
Across the value chain
Efficiency-based competitive advantage
Hidden from public view
Relatively easy to sustain
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9. Figure 6.6 The organizational pyramid.
Before computers, companies organized along functional lines.
Functional groups exchanged paperwork.
Early computer applications supported a single function.
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10. Figure 6.7 A manual payroll system.
Payroll was done manually until at least the late 1950s.
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11. Figure 6.8 Automating selected processes made payroll more efficient.
Automate expensive processes first
Compile payroll
Prepare (print) paychecks
Automate remaining manual processes next
Record timesheets
Objective—process optimization.
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12. Figure 6.9 Islands of automation.
Other functional groups
Sales
Accounting
Purchasing
Inventory
Production
Independent fiefdoms
Office political base
Sub-optimization
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13. Figure 6.10 The competitive advantage model.
Competition forced
Information sharing
Integration across value chain
Including legacy applications
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Incompatibilities
Hardware, software, and data
Data redundancy was a major problem
Same data value on multiple files
Independently maintained
Values differed
Data formats differed
Solution – central database
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15. New Approaches to System Development
Information system planning
Elevated to strategic level
Information technology infrastructure
Basic blueprint for technology integration
Enterprise data model (EDM)
Business process reengineering
Process improvements in context
Problem – legacy applications
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16. Partitioning Order Entry
Client
Display online order form
Display order acknowledgement
Error-check form data
Server
Record order
Read quantity on hand
Access A/R
Validate stock
Check credit
Either – Calculate taxes and total
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17. Figure 6.17 A two-tier client/server application.
Maintenance problem
Multiple copies of software on multiple clients
Development problem
Multiple client platforms
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18. Figure 6.18 A three-tier client/server application.
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19. Figure 6.19 Enterprise application integration.
Objective: coordinate all applications, databases, and info technologies.
Enterprise resource planning (ERP)
Means of implementing the EAI principle
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Virtual Value Chain
Digital picture of value chain
Coordinate and monitor processes
Organizational (not local) efficiency
Applications
Fuel business process reengineering
Mirror or replace physical processes
Data mining
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Web Services
Application server software
A server for middleware
Scalable platform
Application service provider (ASP)
Intermediary that supplies applications
Including mission-critical applications
Management service provider (MSP)
Intermediary that manages IT services
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Corporate Intranets
Private corporate network
Uses standard Internet protocols
TCP/IP
HTML and HTTP
Browser and Web server
Internet and intranet differences
Intranet is smaller in scope
Intranet limited to organization’s employees
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Figure 6.22 Encasing a legacy message in a TCP/IP wrapper allows a legacy application to communicate with the intranet.
Company intranet
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24. Figure 6.23 Some examples of groupware.
Scheduling and calendars
Whiteboarding
Chat rooms and bulletin boards
Video conferencing
Electronic meetings
Document management
Workflow management
Collaborative writing
Group decision support systems
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25. Figure 6.24 Typical enterprise portal services.
Structured data management
Unstructured data management
Content management
Information filtering
Search capabilities
Collaboration
User administration
Expense account management
Ordering supplies
Security
Personalization
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26. Geographically Dispersed Value Chains
Value chain more complex
Options
Secure private network
Value added network
Public network (e.g., Internet)
Virtual private network
Security
Firewalls
User identification
Authentication
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