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. http://en.wikipedia.org/wiki/Electronic_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
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. http://en.wikipedia.org/wiki/Electronic_business (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,
-investor relations and shareholder services, etc.
- eBusiness strategy provides the framework for carrying out eCommerce.
-Expand universe of potential buyers
--Meet customer expectations-Increase brand/product recognition
-Ease of doing business
-Provide more information to customers
-Improve customer service
-New sales channel
“Front-office” Customer-facing Activities
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
-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)
- 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
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)
- ERP, ERP & SCM, CRM
- New Sales Channels
- Many small projects vs. risky megaprojects
Flexible Business DesignEdit
- Joint ventures
*There are 3 kinds of businesses behind a single company*
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
Battlefor talent; low
barriers to entry; many
small players thrive
Battlefor scale; rapid
consolidation; a few big
Highly service oriented;
coddling the creative
Cost focused; stress
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