The transformation of key business procesess through the
use of internet technologies IBM
Electronic business, commonly referred to as "eBusiness" or "e-business", may be defined as the utilization of information and communication technologies (ICT) in support of all the activities of business. Commerce constitutes the exchange of products and services between businesses, groups and individuals and can be seen as one of the essential activities of any business. Electronic commerce focuses on the use of ICT to enable the external activities and relationships of the business with individuals, groups and other businesses [1]. E-business Definition Louis Gerstner, the former CEO of IBM, in his book, Who Says Elephants Can't Dance? attributes the term "e-Business" to IBM's marketing and Internet teams in 1996. E-business Definition In practice, e-business is more than just e- commerce. While e-business refers to more strategic focus with an emphasis on the functions that occur using electronic capabilities, e- commerce is a subset of an overall e-business strategy. E-commerce seeks to add revenue streams using the World Wide Web or the Internet to build and enhance relationships with clients and partners and to improve efficiency. E-business Definition 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. E-business software solutions allow the integration of intra and inter firm business processes. E-business can be conducted using the Web, the Internet, intranets, extranets, or some combination of these. E-business Definition http://www.wikinomics.com/blog/
The "Sectoral e-Business Watch" (SeBW) studies the impact of ICT and e-business on enterprises, industries and the economy in general. It highlights barriers for a wider or faster uptake of ICT and identifies public policy challenges arising from these developments. In this way, the SeBW supports the work of the European Commission's Enterprise and Industry Directorate General in the field of ICT (> policy context).
In 2009, the overarching themes of the studies are ICT & energy, ICT skills and ICT policy. In line with the prevailing e-Business Watch approach, two sectoral and three cross-sectoral studies are being carried out. 9 E Business Ref: E-Business Watch 9 E Business Ref: E-Business Watch Conference 9 E-Business Ref: National Business-to-Business Centre
9 E-Business e-Business is the term used to describe the information systems and applications that support and drive business processes, most often using web technologies.
e-Business allows companies to link their internal and external processes more efficiently and effectively, and work more closely with suppliers and partners to better satisfy the needs and expectations of their customers, leading to improvements in overall business performance.
While a website is one of the most common implementations, e-Business is much more than just a web presence and there are a vast array of internet technologies all designed to help businesses work smarter not harder. Think about collaboration tools, mobile and wireless technology, Customer Relationship Management and social media to name a few.
9.1 Introduction to E-Business 9 E-Business E-Business is bigger than e-marketing.
It involves using technology to facilitate improvements to businesses processes and increase the efficiency of internal and external information flows with customers, suppliers and distributors.
Rigid value chains are changed to flexible responsive value networks
9.2 E-Business Architecture 9 E-Business Constructing the e-business architecture means somehow bringing together the systems, processes and applications from all parts of the business, both inside and out.
9.3 An E-Business Value Framework 9 E-Business Buy-side e-business extranets used for buying raw materials and or services. E.g. procurement, inbound logistics and warehousing
In-side e-business intranets used for optimising internal processes and communications. E.g. manufacturing, management and operations
Sell side e-business extranets used for exclusive use to strategic intermediary partners. E.g. distributors and key account clients 9.4 Buy-side Application Levels 9 E-Business 1. No use of web for product sourcing or e- connection with suppliers Review and selection from competing suppliers using intermediary websites, B2B exchanges and supplier websites. Conventional ordering 9.4 Buy-side Application Levels 9 E-Business 3. Orders placed electronically through EDI, via echanges or supplier sites. No integration between buyer and sellers systems. Rekeying of orders necessary into procurement or accounting systems 9.4 Buy-side Application Levels 9 E-Business 4. Orders placed electronically with integration with companies procurement systems 9.4 Buy-side Application Levels 9 E-Business 5. Orders placed electronically with full integration with companys procurement, manufacturing requirements, planning and stock control systems 9.4 PRM = Partner Relationship Management 9 E-Business -Buyers and sellers work together in a spirit of collaboration and co-operation where opportunities and problems are identified and solved together e.g.
- Independence to interdependence Sharing data to improve operational efficiency A network of trusted partners or extended enterprise Weapons of Mass Collaboration Tools such as blogs, wikis, chat rooms, peer-to-peer networks and personal broadcasting are putting unprecedented power in the hands of individual workers to communicate and collaborate more productively.
Page 247 9 E-Business 9.4 Buy-side applications Summary 9 E-Business Perfect information about customers, distribution partners and supplier partners can tighten the supply chain and create competitive advantage 9.5 In-side applications Summary 9 E-Business In-side applications use intranets to share knowledge amongst employees while avoiding problems of information overload 9.6 Sell-side applications Summary 9 E-Business Sell-side applications include e-commerce, e- CRM, affiliate programmes and collaborative prosumers (user-generated-content)
Focus on customer service and reliance on database management to maintain and enhance customer relationships 9.7 Creating the E-Business 9 E-Business Page 420 - 421 1. Establishing the vision Get senior management support and resource Select a project team and analyse requirements Revisit value network and core competencies Design e-business architecture Develop, pilot, train, and roll-out Benchmark, measure and monitor The Vision Research Business Drivers Project Team Value Network E-Business Architecture Develop, Pilot, Train, Roll-out Financial Management Technology Mgmt E-Business Business processes Roles and responsibilities through the complete value chain Seamless information flow internally and externally Front-end and back-end How built? Scalable? Robust? Secure? Application development Time management Quality and testing Future options spin out Constant improvements Customer delight
What will the business do? What benefits will it bring? Suppliers and procurement needs (Buy-side) Internal staff and management needs Other stakeholders (inside) Client and customer needs (Sell side) Project leader Cross-functional teams Inside and outside the organisation Linking processes and information flows Discovery workshop Real time access
Focus on core Competencies, Options for downsizing or outsourcng Creating the E-Business 9.7 Creating the E-Business Page 420 Clients/ Customers Trade Channels/ Resellers Staff & Mgmt IT/IS Systems Suppliers Other Stakeholders Business Process Integration Partner Relationship Mgmt Value Network Financial systems Sales and Purchase ledger Order processing Sourcing Supplier performance measurement
Local Community, Corporate Social Responsibility, Investors, Analysts, Environmental policy Products, services, markets, segments, local, national, global etc Sales and marketing resources, campaigns, pricing, branding, advertising, promotion, distribution, customer feedback, social media. Talent management, personnel profiles, project blogs and wikis, time planning, forums, groups, events.
Systems development and testing, service and support Creating the Value Network 9.7 Creating the E-Business Page 420 9.8 E-Business Security 9 E-Business Page 420 - 421 1. Credit card fraud Distributed denial of service Website grafitti Viruses User-generated-content exposure Intellectual property theft Sensitive data theft
Solutions include: firewalls, filters, encryption, moderation, vigilance. 9.9 E-Business Success Criteria 9 E-Business Page 420 - 421 1. Support of parent company or investment Building on existing brand equity where possible Existing management team and structure Value network in place Create new value network Business Process Re-engineering Realistic pace of development Determine an existing or new niche
9.10 E-Business Failure Criteria 9 E-Business Page 420 - 421 1. Bad idea Bad production or delivery Management inexperience or inflexibility Failure to create niche Isolated from value network Not focused on customer needs Poor marketing Investor panic Late or poor technology
Chapter 9. Summary 9 E-Business Page 420 - 421 1. Business processes and information flows Systems architecture Procurement, internal and sales dimensions Supply chain management Knowledge management and intranets PRM and CRM E-business development process Security threats Success criteria Reasons for failure
E-Business Workshop - Teams Ideas: Publishing Art & craft products Training services Business software Computer games Live music/theatre Sports Niche consumer products coffee, sweets, Consumer electronics E-Business Workshop - Teams Consider the following: What markets, products, services gaps can you think of? Whats the business process? How can it be innovated enhanced using technology, people or new processes? Whats the supplier procurement/purchasing stage? Whats the internal staff and knowledge management systems needs? How could the products be sold and marketed and better purchased by customers/clients? How could CRM, PRM, Ecommerce be used? How can the new e-business be branded, marketed positioned?
The MSP’s Guide to the Ultimate Client Experience: Optimizing service efficiency, account management productivity, and client engagement with a modern digital-first approach.