1. Agenda Introduction A frame work and scope of E-commerce
Emergent Categories of E-commerce
E-Business concepts
Value Chain concept
Stakeholders
Summary

2. “It is not the strongest of the species that survive, nor the most intelligent, but the one most responsive to change” Charles Darwin “If you’re not changing faster than your environment, you are falling behind” Jack Welsh, CEO of GE

3. What is E-Business?
The use of Internet technologies to work and empower business processes, electronic commerce, and enterprise collaboration within a company and with its customers, suppliers, and other business stakeholders.
An online exchange of value.

4. E-Business
eBusiness (electronic business) is, in its simplest form, the conduct of business on the Internet. It is a more generic term than eCommerce because it refers to not only buying and selling but also servicing customers and collaborating with business partners.
IBM, in 1997, first to use the term. Today, many corporations are rethinking their businesses in terms of the Internet and its capabilities.

5. E-Business
Companies are using the Web to buy parts and supplies from other companies, to collaborate on sales promotions, and to do joint research.
Exploiting the convenience, availability, and global reach of the Internet, many companies, both large and small have already discovered how to use the Internet successfully.

6. E-Commerce
eCommerce (electronic commerce) is the buying and selling of goods and services on the Internet, especially the World Wide Web. In practice, this term and a newer term, eBusiness, are often used interchangeably.
However, it took about four years for security protocols to become sufficiently developed and widely deployed (during the browser wars of this period). Subsequently, between 1998 and 2000, a substantial number of businesses in the United States and Western Europe developed rudimentary web sites.

7. Contemporary Definition
“Technology-mediated exchanges between parties (individual or organizations) as well as electronically based intra-or inter-organizational activities that facilitate such exchanges.”

8. E-business vs. E-commerce
E-commerce defines interaction between organizations and their customers, clients, or constituents. On the other hand, e-business is broader term that also encompasses an organization’s internal operations. Electronic commerce describes the buying and selling of products, services, and information via computer networks including the Internet, where e-Business describes the broadest definition of EC. It includes buying and selling of products and services, servicing customers, collaborating with business partners, and conducting other intra-business tasks.

9. E-business and e-commerce
Three alternative definitions of the relationship between e-business and e-commerce

10. E-Business concepts
E-business defined from the following perspectives:
Communications
delivery of goods, services, information, or payments over computer networks or any other electronic means
Commercial (trading)
provides capability of buying and selling products, services, and information on the Internet and via other online services

11. E-Business concepts (cont.)
service Business process
Doing business electronically by completing business processes over electronic networks, thereby substituting information for physical business processes
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 delivery

12. E-Business concepts (cont.)
Learning
an enabler of online training and education in schools, universities, and other organizations, including businesses
Collaborative
the framework for inter- and intra-organizational collaboration
Community
provides a gathering place for community members to learn, transact, and collaborate

13. Dimensions of e-business/e-commerce
Source: Choi et al. (1997), p. 18.
Regional Training Workshop for Enterprise Support Agencies to Promote E-business for SMEs in the Greater Mekong Subregion (GMS), June 2006, Bangkok

14. Dimensions of e-business / e-commerce
Pure vs. Partial
Based on the degree of digitization of: - Product - Process - Delivery agent Traditional commerce:
all dimensions are physical
Pure e-business: all dimensions are digital
Partial e-business: all other possibilities include a mix of digital and physical dimensions
Brick-and-Mortar organizations are old economy organizations (corporations) that perform most of their business off-line, selling physical products by means of physical agents.

15. Types of e-business
Business-to-business (B2B) Business that sells products or provides services to other businesses Business-to-consumer (B2C) Business that sells products or provides services to end-user consumers Consumer-to-consumer (C2C) Consumers sell directly to other consumers
Company-centric models:
Sell-side marketplace (one-to-many) Buy-side marketplace (many-to-one) Many-to-many marketplaces – the exchange Collaborative commerce: Web-based systems used between and among suppliers for:
Communication
Design
Planning
Information sharing
Information discovery
Virtual service industries in B2B Travel and tourism services Real estate Electronic payments Online stock trading Online financing Other online services

16. Types of e-business (cont.)
Business-to-government (B2G) Government buys or provides goods, services or information to/from businesses or individual citizens Business-to-employee (B2E) Information and services made available to employees online Mobile commerce (m-commerce) E-commerce transactions and activities conducted in a wireless environment Collaborative commerce (c-commerce) Individuals or groups communicate or collaborate online

17. Evolution of e-business
1997: Introduction of a brand new phrase – e-business
1999: The emphasis of e-business shifted from B2C to B2B
2001: The emphasis shifted from B2B to B2E, c-commerce, e-government, e-learning, and m-commerce
2004: Total online shopping and transactions in the United States between $3 to $7 trillion
E-business will undoubtedly continue to shift and change

18. Evolution of e-business (cont.)
The Future
By 2008:
Number of Internet users worldwide should reach 750 million
50 percent of Internet users will shop
E-business growth will come more from:
B2C, B2B, e-government, e-learning, B2E, c-commerce

19. Traditional Purchasing Process Flow

20. Reduces time, redundant effort, and inventory costs
Supply Chain
The supply chain is network of organizations and business processes for procuring materials, transforming raw materials into intermediate and finished products and distribution of products to customers.
close linkage and coordination of activities involved in buying, making, and moving a product
Integrates supplier, manufacturer, distributor, and customer logistics time
Reduces time, redundant effort, and inventory costs

21. Supply Chain

22. Customer / Supplier

23. Stakeholders
E-Business relationships are formed with the following types of stakeholders:
Internal stakeholders: Management and staff
Suppliers and manufactures
Customers
Intermediaries
Financial institutions
Web service providers
Associations
Web communities etc.

24. Major Players
Sabre: Electronic reservation system for airlines, hotels, car rental companies.
Sets prices for individual airline tickets to maximize total company revenue or profit.
Priceline: Online shopping service that allows customers to “Name Your Own Price” for a variety of products, like vacations and electronics. It breaks the rule: suppliers determine the price of products and publish them to customers. All prices are negotiable online and the end of price setting by sellers.

25. Value Chain concept
The value chain concept was developed Michael Porter
It views a firm a series, chain, or network of basic activities that add value to its products and services, and thus add a margin of value both to the firm and customers.
How and Where information technologies can be applied to basic business processes using the value chain framework.

26. VALUE CHAIN MODEL
Highlights primary & support activities that add value to products, services where information systems/technologies can best be applied to achieve a competitive advantage.
Organizations have competitive advantage when they provide more value to their customer or when they provide same value to customer at lower price.
Pg 58

27. VALUE CHAIN MODEL Primary activities
Directly related to production, distribution of the firm ‘s products and services that create value for the customer.
Support activities
Make the delivery of the primary activities possible and consist of organization infrastructure
Infrastructure, human resources, technology, procurement

28. Porter’s Generic Value Chain

29. ACTIVITIES OF THE VALUE CHAIN

30. Firm Value Chain

32. TYPES OF INFORMATION SYSTEMS

33. Business Level Strategy and the Value Chain Model
Value Web:
Customer-driven network of independent firms
Uses information technology to coordinate value chains for collectively producing a product or service

34. Concept of The Value Web
Figure 3-12

35. Major business pressures

36. E-Business does not affect an organization’s fundamental goals, rather it provides a new ways to achieve them:
E-business adoption strategy and direction.
Vision must be communicated to all stakeholders
The interaction among stakeholders
Smaller network, more flexible organizations, shifting priorities and roles
Information system and technology infrastructure Mechanism to improve, enrich, change, and deepen relationships with key stakeholders
Culture: Need to adapt the new way, will impact on rules, belief, norms, and behaviors
E-business framework

37. Summary A concept of networked economy Information is an asset
E-commerce a revolution in both business and society
Value chain differs across trade sectors and between organizations within a trade sector.