E - Business Architecture

Chapter 5

The best practices

To create a clear map of the companys strategy

for the next 2 years and to use it to manage all aspects of the company application development activities To generate a seamless application strategy, one that leaves no holes for customers to complaint To collect, interpret and assimilate good information about the technical and marketplace uncertainties.

Trends E business architecture

The velocity of business is increasing

Enterprise boundaries are disappearing

Expectations for technology solutions are rising

The objectives
New customers attraction

New competition
Fast moving competitors

E business challenges
Business and customer focused proactive Structured in line with business support

objectives Shift in emphasis to front office support Emphasis on business skills Customer, business knowledge
Strategic planning Customer service philosophy

E business to be a part of the business units E business to be the engine of the sales and

growth E business must be the enabler of operational efficiency

Issues in E business
Channel conflict- disintermediation will

compromise their role and in some instances their very existence Competition the WWW intensifies the nature of the competition makes it global in nature. The advent of shopping bots has intensified competition and forces businesses to compete on the basis of creating a sustainable competitive advantage Customer loyalty- the technology WWW has been the ease with which consumers can navigate the WWW in order to satisfy their needs and wants.

 Copyright and legal environment the copyright

environment of the WWW can best be described in one word open. Any information that has been published on the internet is susceptible to being replicated as the open environment WWW provides minimal protection. Security/ privacy these are the defining issues facing further proliferation of the WWW. Security of the financial transactions cannot be completely guaranteed and numerous options in encryption technologies are beginning to address this concern

Benefits to organization
Business survival with opening to the new market Find new customers Grow sales to new and existing customers and provide

information Improve customer service levels and satisfaction Improve order processing, supply and service cycle times due to integration. Lower customer service and operation costs with higher efficiencies Lower purchasing costs with integrated supply and service chains Grow sales through e business Add on service and products. Learn more about customers needs and buying habits

Benefits customers
Frequently provides less expensive products &

services by allowing consumers to conduct quick online searches and comparisons Gives consumers more choices in selecting products & vendors Enables customers to shop or make other transactions 24 hours a day, from almost any location Delivers relevant and detailed information in seconds Enables consumers to get customized products from PCs to cars at competitive prices Makes it possible for people to work and study at home Makes possible electronic auctions that benefit buyers and sellers

Benefits society
Enables individuals to work at home and do less

travelling, resulting in less road traffic and lower air pollution Allows some merchandise to be sold at lower prices, thereby increasing peoples standard of living Enables people in developing countries and rural areas to enjoy products and services that are otherwise are not available. This includes opportunities to learn professions and earn college degrees or to receive better medical care. Facilities delivery of public services, such as government entitlements, reducing the cost of distribution entitlements, reducing the cost of

Limitations technical
Lack of universally accepted standards

Insufficient telecommunications brand width

Still evolving software development tools Difficulties in integrating the internet and EC

applications and software with some existing (especially legacy ) applications and databases Need for special web servers in addition to the network servers Expensive and or inconvenient internet accessibility for many would be users

Limitations Non technical

Unresolved legal issue ( for quality, security and

reliability) Lack of national and international government regulations and industry standards Lack of mature methodologies for measuring benefits of and justifying EC Many sellers and buyers waiting for EC to stabilize before they take part Customer resistance to changing from a real to a virtual store. People do no yet sufficiently trust paperless faceless transactions Perception that EC expensive and unsecured An insufficient number ( critical mass) of sellers and or buyers to profitable EC operations

Function of E commerce
Communication Aimed at the delivery of

information or documents to facilitate business transactions Process management function covers the automation and improvement of business processes. E.g, networking two companies together so that they can share and transfer data rather than have a person to take data from one computer to another Service management function application technology to improve the quality of service. For Ex., FEDEX website permits customers to track shipments and schedule picks up 2 hours a day with a world wide network ( without having to talk

Function of E commerce (Contd..,)

Transaction capabilities provides the ability to

buy sell on the internet or some other online service e.g., Retail websites of Amazon.com and REI offer good examples of the transaction capabilities of Ecommerce

Evolution of business apps

Task oriented applications Stage 1 Simplifying processes as order entry Reintegration and transformation Stage 2 More functional oriented(software enabled) Cross functional applications

Stage 3

 J d Edwards

Siebel sales enterprise apps at Charles Schwab

- CRM SAP Baan People soft Vantive Clarify Orange soft

Trend of CRM
Sales
Customer relation managmn t

Service

Marketing

Trend of ERP
Forecastin g& planning

Purchase & material management

Warehousin g& inventory Finished product distribution Accounting /finance

Enterpris e resource planning

The trend of Supply Chain Management

Market demand
Supply Chain Managem ent

Resources capacity constraints

Real Time Scheduling

Selling chain management

Product customizati on

Pricing, contract mangmt Quote & proposal

Commitment management

Selling chain managem ent

Promotion mgmnt

E Procurement ( B TO E)
Office Office Office suppliers suppliers suppliers Procmnt Procmnt Procmnt

Service Service Service procurement procurement procurement

Business Business Business travel travel travel Procmnt Procmnt Procmnt Computer Computer related related procurement procurement MRO procurement

Procureme Procureme nt nt

Blue print
To assist managers in identifying near term and

long term integration opportunities, based on predefined strategies. Helps managers to grasp big pictures so they can set priorities