E Business2

E-Business: 

E-Business

What is E-Commerce?: 

What is E-Commerce? The ability to organize business relationships based on Internet technologies.

There are three major components to e-commerce:: 

There are three major components to e-commerce: (1) New Business Strategy and Operations Information as the basis of products and production The ability to define and deliver products customized to each customer The ability to create and deliver customized products in real-time Integration of technology and business strategy Shift from long-range planning to real time execution Premium on managing risk and uncertainty

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(2) Mindset Internet time - the ability to develop and deliver new products in shortening time cycles Reorganization into networks and virtual firms Continuous innovation Rapid, cumulating, exponential change Anticipate and take advantage of technological change (95% is ahead of us) XML Bots Java Virtual Reality teleimmersion borgs

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(3) New capabilities Customer Relationship Management (CRM) Deliver complete solutions Customize products, services and solutions for each customer Maintain comprehensive information on each customer, available in real time Integrate sales, marketing, delivery, and customer relations as a team effort CRM system must capture information about customer preferences, needs, characteristics, and orders Integrates all points of contact with customer (an interaction center integrating e-mail, web site, telephone) through the same data base All business units use the same software and information to interact with the customer

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Customer Support Real-time communication over the Internet (Voice over IP - VoIP) Shared Browsing E-Tailing Online store - browsing and ordering Secure payment Delivery Billing Returns Warranties

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Syndication and Affiliate Networks Attracting customers to your website (You must do more than build it!) Syndication involves making sites better (more sticky) by integrating the content of several providers. This allows small specialized sites to deliver much richer content and give customers reasons to stay and come back. Syndication is the aggregation of content. For the individual web site, syndication is the outsourcing of content. An affiliate network is a group of partner sites designed to drive customers to each other's sites through cross-linking and cross advertising, thereby aggregating customers. They may share in such cross generated revenue.

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E-Money How can the Internet be used to avoid the costly process of statements and billing of customers? Electronic Bill Presentment and Payment Statements and payment done online Integrate with warranty, returns and other problems Personalization Remember, the web is global and so is your market. Personalization engine E-Analytics tools - deliver customized web site on the fly Collect information about each site visitor, the pages accessed and items purchased. Uses the data to construct personalized information and products. Information is also constructed about the behavior of customers generally. Personalization can then be rules-based.

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Knowledge Management Knowing what you know and being able to act on that knowledge in a timely manner. The ability of all parts of the organization having access to knowledge and being able to act on it. Leveraging knowledge resources embedded throughout the organization. Data mining from internal and external sources Collaboration Among employees With customers Groupware for creating a virtual organization (intranet and extranet)

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E-Procurement and Supply Chain Management B2B marketplaces Push procurement to the point of use in the organization Increase speed of supply purchase and lower cost through competitive purchasing Aggregates sources of supply Enterprise Application Integration Enterprise Resources Planning (ERP) Importance of standards XML, Java Networks, networks, networks

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Developing a set of conceptual handles for E-Business is essential. With this we can discuss, analyze and debate the merits of different options. We will consider several different ways of carving up the territory and then each of you will need to try to develop one (or more) of our own.

Examine the graphics on E-business from Business 2.0 (remember, this is one way of defining E-Business):graphicWhat is an E-Business enabler? What does it do? Give an example.(graphic): 

Examine the graphics on E-business from Business 2.0 (remember, this is one way of defining E-Business): graphic What is an E-Business enabler? What does it do? Give an example. (graphic)

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Grainger is a good case study. Information about Grainger is here. Information about its stock is here. What is the nature of the business problem faced by Grainger? What does it want the Web to do? What are some of the technical problems involved with content delivery for a firm such as Grainger. What do these terms mean? database search engine back-end application

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(graphic) The ability to configure an order based on a wide range of customer preferences - customization - is one of the greatest advantages of the Web. Further, customers don't always know what is and is not possible. So, along with customization, the Web offers the ability to coach and guide customers to what is best for them: compatibility with existing systems, budget and time constraints, matching features and needs. And, this is all 24/7/365 anywhere on the planet.

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What are some of the gains and benefits from having a sophisticated configurator for customers and for a sales force? What does this statement mean? "integrating an out-of-the-box configurator with its back-end transaction platforms, and legacy systems, as well as those of its suppliers." Go to Dell's website and work through the configurator in the ordering of a computer (if you place the order, it's your nickel). What kinds of information and capabilities need to be available to make this work? Cabletron Calico (when you look here, find out what "dynamic pricing" means) Flextronics

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(graphic) What is it about the container cargo business that lends itself to E-business? Terms: Java-fueled server GoCargo.com Moai.com

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Supply Traffic Control (graphic) Sun Microsystems i2 Technologies What does supply chain management software need to do to make it effective? What is really being managed in supply chain management? What are the benefits from an Internet-based SCM system? Terms: "fabless" manufacturer outsourcing demand fulfillment system forecasting

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(graphic) What opportunity does the Internet offer for new information about customers? And for marketing? How do you react to being watched as you shop? Terms: datamining conjoint analysis realtime behavior maps E.Piphany.com  

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Why are partners so important in E-business? Could speed and innovation be important gains from partnerships? What do the companies described in these articles have in common? What does it mean to describe them as e-business enablers? Now let's turn to e-tail, the version of E-business typically thought of when discussing Internet commerce. E-Tail The state of e-tail The Amazon Question Online Commerce Creates Strange Competition After reading these articles, what comments can you make about the state of e-tail? Many of the dotcoms were in the e-tail space (Pets.com). What were the obstacles to developing a successful business in almost any e-tail area?

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How has the high tech revolution affected the development of e-business? Driven by rapid technological change - Moore's law Swarms of innovative startup firms Network production Modular products - outsourcing Venture capital Knowledge intensive Knowledge sharing - open source, Internet protocols, Silicon Valley

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Business model What is it? value proposition (one main benefit)/value cluster (multiple benefits) resources technology human resources products/services processes marketing brand name affiliations and partnerships where is the core competence? financials - costs and revenues

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Types - B2C focus e-business enabler (B2C focus) ISP Web hosting Web design encryption/security payment systems dynamic content provider - storefront/products Web caching application integration information collection software systems application service provider (ASP) portal B2C aggregator affiliation community of consumers B2C specialized Integrated Bricks and clicks C2C enabler Content provider - new media iFilm

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What are some of the processes for a sucessful system? Attract customers Provide content dynamically tailored to each customer's specific needs Effective interaction system Provide options beyond those defined by customer Transaction - authenticate, authorize, maintain data integrity, insure non-repudiation Financing and related services During and after sale services Produce and deliver product/service - fulfillment Collect information about customer Integrate customer information throughout the business system

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Case studies: Grainger: Information about Grainger is here. Information about its stock is here. The company web site is here. Vignette: Look here for general information on this company. Look here for details about Vignette's stock. Company web site is here. Inktomi: General information is here. Stock details are here. Company website is here. Federal Express: General information is here. Stock information is here. Company website is here.

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E. B. Baatz, "Will Your Business Model Float? What new understanding does this article give you about the following business models? advertising subscription retail software How do you evaluate the emerging models?

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Making Changes in Midair, from Business 2.0 Discuss the following: From B-to-C to vertical markets: Superbid.com.br From local retail to Timbuk2 Retailer to services to e-marketmaker

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Clicks or Bricks? Clicks and Bricks? Ranjay Gulanti and Jason Garino, "Getting the Right Mix of Bricks and Clicks" (pdf) Bricks or Clicks What is the big fear that drives established firms to create an entirely separate Internet operation? Is this fear justified? Should the experience of Barnes and Noble.com cause us to rethink that strategy? Questions to ask in deciding on clicks and bricks? Does an existing operation provide an infrastructure and a mindset that will lend support to an Internet operation? Dell: direct sales over the phone Office Depot: catalogue sales operation and existing complex information system

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Does an Internet operation provide synergies that add value for customers and/or suppliers? Facilitate shopping, purchase/ordering, delivery Cost savings in value chain Customization possibilities Can the bricks provide points to leverage the clicks? And can clicks provide ways to leverage the bricks? Compare and contrast the Internet experiences of Office Depot, KB Toys, and Rite Aid. How do these firms differ in Internet strategy? What are the gains and losses from different approaches?

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Types of E-business: B2C and new media LaRoy Brantley, L.J. Gage, Orsen Karnburisudthi, Sherry Zhu, "Selling Content on the Internet: Is There a Market?" (pdf) Table (pdf) The economics of digital media Ranjay Gulanti and Jason Garino, "Getting the Right Mix of Bricks and Clicks" (pdf) Syndication: The emerging model for business in the Internet era Swapping E-Commerce Partners Copyright and Internet Music KaZaA A Hard Sell for Online CD Merchants Goodbye to the video store The Pitch: Dreamland Goes Digital Now Playing: Reality Without the Downside

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What the Internet cannot do Media conglomerates Group Exercise I: Use your web searching skills to locate information about the following firms: EBay A Note of caution on ebay Yahoo AOL Time Warner Vivendi Electronic Arts Google Sabre Locate information from Yahoo finance, Proquest, and Lexis-Nexis. AOL Music Write a group paper on each of these firms.