Agenda Introduction A frame work and scope of E-
commerce Emergent Categories of E-commerce E-Business concepts Value Chain concept Stakeholders Summary
“It is not the strongest of the species that survive, nor the most intelligent, but the one most responsive to change”
Charles Darwin“If you’re not changing faster than your environment, you are falling behind”
Jack Welsh, CEO of GE
What is E-Business?
The use of Internet technologies to work and empower business processes, electronic commerce, and enterprise collaboration within a company and with its customers, suppliers, and other business stakeholders.
An online exchange of value.
E-Business
eBusiness (electronic business) is, in its simplest form, the conduct of business on the Internet. It is a more generic term than eCommerce because it refers to not only buying and selling but also servicing customers and collaborating with business partners.
IBM, in 1997, first to use the term. Today, many corporations are rethinking their businesses in terms of the Internet and its capabilities.
E-Business
Companies are using the Web to buy parts and supplies from other companies, to collaborate on sales promotions, and to do joint research.
Exploiting the convenience, availability, and global reach of the Internet, many companies, both large and small have already discovered how to use the Internet successfully.
eCommerce (electronic commerce) is the buying and selling of goods and services on the Internet, especially the World Wide Web. In practice, this term and a newer term, eBusiness, are often used interchangeably.
However, it took about four years for security protocols to become sufficiently developed and widely deployed (during the browser wars of this period). Subsequently, between 1998 and 2000, a substantial number of businesses in the United States and Western Europe developed rudimentary web sites.
E-Commerce
Contemporary Definition
“Technology-mediated exchanges between parties (individual or organizations) as well as electronically based intra-or inter-organizational activities that facilitate such exchanges.”
E-commerce defines interaction between organizations and their customers, clients, or constituents. On the other hand, e-business is broader term that also encompasses an organization’s internal operations.
Electronic commerce describes the buying and selling of products, services, and information via computer networks including the Internet, where e-Business describes the broadest definition of EC. It includes buying and selling of products and services, servicing customers, collaborating with business partners, and conducting other intra-business tasks.
E-business vs. E-commerce
Three alternative definitions of the relationship
between e-business and e-commerce
E-business and e-commerce
E-Business concepts
E-business defined from the following perspectives:
Communications delivery of goods, services, information, or
payments over computer networks or any other electronic means
Commercial (trading) provides capability of buying and selling
products, services, and information on the Internet and via other online services
E-Business concepts (cont.)
service Business process Doing business electronically by
completing business processes over electronic networks, thereby substituting information for physical business processes
Service Tool that addresses the desire of
governments, firms, consumers, and management to cut service costs while improving the quality of customer service and increasing the speed of delivery
E-Business concepts (cont.)
Learning an enabler of online training and education
in schools, universities, and other organizations, including businesses
Collaborative the framework for inter- and intra-
organizational collaboration Community
provides a gathering place for community members to learn, transact, and collaborate
Source: Choi et al. (1997), p. 18.
Dimensions of e-business/e-commerce
Regional Training Workshop for Enterprise Support Agencies to Promote E-business for SMEs in the Greater Mekong Subregion (GMS), 26-28 June 2006, Bangkok
Dimensions of e-business / e-commerce
Pure vs. Partial Based on the degree of digitization of:
- Product- Process- Delivery agent
Traditional commerce: all dimensions are physical
Pure e-business: all dimensions are digital Partial e-business: all other possibilities
include a mix of digital and physical dimensions
Business-to-business (B2B) Business that sells products or provides services to other businesses
Business-to-consumer (B2C) Business that sells products or provides services to end-user consumers
Consumer-to-consumer (C2C) Consumers sell directly to other consumers
Types of e-business
Business-to-government (B2G) Government buys or provides goods, services or information to/from businesses or individual citizensBusiness-to-employee (B2E) Information and services made available to employees online Mobile commerce (m-commerce) E-commerce transactions and activities conducted in a wireless environmentCollaborative commerce (c-commerce) Individuals or groups communicate or collaborate online
Types of e-business (cont.)
Evolution of e-business
1997: Introduction of a brand new phrase – e-business
1999: The emphasis of e-business shifted from B2C to B2B
2001: The emphasis shifted from B2B to B2E, c-commerce, e-government, e-learning, and m-commerce
2004: Total online shopping and transactions in the United States between $3 to $7 trillion
E-business will undoubtedly continue to shift and change
Evolution of e-business (cont.)
The FutureBy 2008: Number of Internet users worldwide should
reach 750 million 50 percent of Internet users will shop E-business growth will come more from:
B2C, B2B, e-government, e-learning, B2E, c-commerce
Traditional Purchasing Process Flow
Supply Chain
The supply chain is network of organizations and business processes for procuring materials, transforming raw materials into intermediate and finished products and distribution of products to customers.
close linkage and coordination of activities involved in buying, making, and moving a product
Integrates supplier, manufacturer, distributor, and customer logistics time
Reduces time, redundant effort, and inventory costs
Supply Chain
Customer / Supplier
Stakeholders
E-Business relationships are formed with the following types of stakeholders:
Internal stakeholders: Management and staff Suppliers and manufactures Customers Intermediaries Financial institutions Web service providers Associations Web communities etc.
Major Players
Value Chain concept The value chain concept was developed
Michael Porter It views a firm a series, chain, or network
of basic activities that add value to its products and services, and thus add a margin of value both to the firm and customers.
How and Where information technologies can be applied to basic business processes using the value chain framework.
VALUE CHAIN MODEL
Highlights primary & support activities that add value to products, services where information systems/technologies can best be applied to achieve a competitive advantage.
Organizations have competitive advantage when they provide more value to their customer or when they provide same value to customer at lower price.
VALUE CHAIN MODEL
Primary activities Directly related to production, distribution of the
firm ‘s products and services that create value for the customer.
Support activities Make the delivery of the primary activities
possible and consist of organization infrastructure
Infrastructure, human resources, technology, procurement
Porter’s Generic Value Chain
ACTIVITIES OF THE VALUE CHAIN
Firm Value Chain
TYPES OF INFORMATION SYSTEMS
Value Web: Customer-driven network of
independent firms Uses information technology to
coordinate value chains for collectively producing a product or service
Business Level Strategy and the Value Chain Model
Concept of The Value Web
Figure 3-12
Major business pressures
E-business framework
E-Business does not affect an organization’s fundamental goals, rather it provides a new ways to achieve them:
E-business adoption strategy and direction. Vision must be communicated to all stakeholders The interaction among stakeholders Smaller network, more flexible organizations,
shifting priorities and roles Information system and technology infrastructure
Mechanism to improve, enrich, change, and deepen relationships with key stakeholders
Culture: Need to adapt the new way, will impact on rules, belief, norms, and behaviors
Summary
A concept of networked economy Information is an asset E-commerce a revolution in both
business and society Value chain differs across trade
sectors and between organizations within a trade sector.