What is eBusiness?Edit

Electronic business, commonly referred to as "eBusiness" or "e-business", may be defined as the application of information and communication technologies in support of all the activities of business. (added by mjw) “Exchange of economic value facilitated by electronic media” Carrying out business transactions in electronic form using computer and telecommunication networks.-Buying and selling over digital media

How ecommerce differs from Traditional CommerceEdit

Core strategic decisions - commingled with technology decisions

Speed-based competition – first mover advantage? The store is always open

Screen-to-customer interface – mass customization Customer controls interaction

Online behaviour can be tracked/measured – new metrics

eBusiness ScopeEdit

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. (added by mjw)

Types of organizationsEdit

Brick-and-Mortar-conduct most of their business off-line, selling physical products by means of physical agents

Pure-play-conduct business activitiessolely online

Click-and-mortar (click-and brick)-conduct some ecommerceactivities, but do their primary businessin the physical

eBusiness & eCommerceEdit

eBusiness encompasses eCommerce

-Includes activities that do not involve direct exchange of economic value

-such as front and back office applications

-customer service and support,

-employee services,

-investor relations and shareholder services, etc.

  • eBusiness strategy provides the framework for carrying out eCommerce.

Ecommerce DriversEdit

-Expand universe of potential buyers

-Increase sales

--Meet customer expectations-Increase brand/product recognition

-Ease of doing business

-Competitive pressure

-Cost effectiveness

-Provide more information to customers

-Improve customer service

-New sales channel

“Front-office” Customer-facing Activities

“Back-office” Activities

  • Attracting…and keeping
  • User authentication
  • Catalog display
  • Availability
  • Pricecomparison
  • Order taking
  • Credit check
  • Sourcing (finding pricing, ordering,



  • Outbound


  • Billing
  • Collection
  • Post-delivery service

Electronic Data Interchange (EDI) :Edit

standard way of electronically encodingand exchanging Line of

Businessdocuments(POs and invoices, etc. between organizations)

-Facilitated by private networks called VANs (Value Added Networks) or through the internet

-EDI is widely used by large corporations and government agencies to communicatewith their suppliers; e.g., Wal-Mart.

Two major standards:

•ANSI X 12


Various EDI “dialects” created by various large buyers

Beyond EDI:Edit

-EDI is mostly used by large corporations

-High entry cost

-High operating costs due to expensive transmission through VANs

-Not a universally accepted “standard”

-Most EDI vendors now offer internet-based EDI solutions : reduce costs, do not solve interoperability issues

Forces of Change:Edit

  • Removal of Barriers
  • Growing Access to Internet
  • Security (Firewalls & Encryption, PKI)
  • Payment Systems
  • PIPEDA (Personal Information Protection and Electronic Documents Act)


  • Cheaper
  • Faster
  • More convenient
  • Better selection
  • More customization/personalization
  • Richer package (e.g. additional Info. to customer – FedEx)
  • Wider reach
  • More controllable

Effect on BusinessEdit

Integration of strategies and processes (business and ecommerce goal Congruence)

Customer-centric value chain

Pillars of ECommerce

  • information
  • relationships
  • transactions
  • security/control

Most businesses will become eBusiness

Business Models (Describe a company’s business)Edit

Value propositions:bundle of products and services, and the value as perceived by the customer.

Target customer segments:groups of people with common characteristics for which the company creates value.

Distribution channels:means of the company to get in touch with its customers refers to the company's marketing and distribution strategy.

Customer relationships:links a company establishes between itself and its different customer segments.

Value configurations:The configuration of activities and resources.

Core capabilities:capabilities and competencies necessary to execute the company's business model.

Partner network:cooperative agreements with other companies to offer and commercialize value.

Cost structure:monetary consequences of the means employed in the business model

Revenue model:way a company makes money through a variety of revenue flows.

Strategic Business TrendsEdit

  • Supply Chain Management (SCM)
  • Integration
  • Customization
  • New Sales Channels
  • Many small projects vs. risky megaprojects

Flexible Business DesignEdit

  • Outsourcing
  • Partnerships
  • Joint ventures
  • Mergers
  • Takeovers

*There are 3 kinds of businesses behind a single company*

Customer relationship

Product innovation



High cost of customer

acquisition makes it

imperative to gain large

wallet share; economies

of scope are the key

Early market entry allows

for a premium price and

large market share; speed

is the key

High fixed costs make large

volumes essential to achieve

low unit costs; economies of

scale are the key


Battlefor scope; rapid

consolidation; a few big

players dominate

Battlefor talent; low

barriers to entry; many

small players thrive

Battlefor scale; rapid

consolidation; a few big

players dominate


Highly service oriented;



Employee centered;

coddling the creative


Cost focused; stress

standardization, predictability,

and efficiency

The World is flat: Chapter1-while you where sleeping:Edit

The discovery that the economic playing field had been leveled. Many countries in the East make it a requirement to speak several languages. Business thanks to the web can be done anywhere (outsourcing).

Web1.0-(1492-1800’s) changed the size of the world, exploration, imperialism, expanding countries

Web2.0-(1800’s-2000) medium to small companies made global changes to do businesses everywhere.

Web3.0-(2000-on) Individuals & small groups globalizing-no longer is it just about the Americans-the global playing field has been leveled.

The Triple Convergence:

1.) Year 2000- 10 Global Flatteners-All flatteners worked together

2.) Adaptation of Globalization

3.) India, China and Russia are now able to compete and collaborate in the Global economy.

  • 9/11, Enron and the Dotcom bust-provided a political perfect storm to distract us from Globalization*


Finance-Concerned with $ and the future plans

-preparing accounts, ex. invoices, management accounts, financial accounts for share holders and Inland Revenue

-Preparing wages and salaries

-Obtaining capital and resources, ex. $ for expansion or to pay for resources such as equipment and materials.


-Concerned with the main business activities

-Obtains & converts resources of the business into goods/services