A2-Intro to Ebus

8/6/2019 A2-Intro to Ebus

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David Chong

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David Chong

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SUNWAY UNIVERSITYE-Business Strategy

Lecture

Introduction to e-business

Lecturer: David Chong

Adapted from Chaffey D, 2007E-Business and E-Commerce

Management.


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Learning outcomes

1. Define the meaning and scope of e-business and e-commerce and their different elements

2. Discuss how the Internet has changed the nature ofbusiness.

3. Summarize the main reasons for adoption of e-commerce and e-business and barriers that mayrestrict adoption

4. Use resources to define the extent of adoption of

the Internet as a communications medium forconsumers and businesses

5. Outline the business challenges of introducing e-business and e-commerce to an organization.


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Management issues

1. How do we explain the scope and

implications of e-business and e-commerce

to staff?

2. What is the full range of benefits ofintroducing e-business and what are the

risks?

3. How great will the impact of the Internet beon our business? What are the current and

predicted adoption levels?


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E-business opportunities

1. Reach:

Over 1 billion users globally

Connect to millions of products

2. Richness Detailed product information on 20 billion +

pages indexed by Google. Blogs, videos,feeds

Personalised messages for users3. Affiliation

Partnerships are key in the networked economy


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The impact of the Internet on business

Andy Grove, Chairman of Intel, one of the

early adopters of e-commerce, has made

a meteorological analogy with the Internet.He says:

The Internet a typhoon force, a ten times

force, or is it a bit of wind? Or is it a force

that fundamentally alters our business?(Grove, 1996)


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How big is the Internet: 500 million users

worldwide - 2005 expected 1 billion.

How much will consumers spend online:1.8 billion - 2005: 16 billion.

How much will businesses spent online:

1.3 trillion - 2005: 4.3-8 trillion.

E-Business Growth and Projections


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Dubit C2C site for a youth audience (www.dubit.co.uk)


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Business Is ChangingBusiness Is Changing

1.1. Global activityGlobal activity

2.2. Environmental concernsEnvironmental concerns

3.3. New technologyNew technology4.4. Increased knowledge and skillIncreased knowledge and skill

requirements of employeesrequirements of employees


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Impact of the InternetImpact of the Internet

EE--commercecommercea companys use of thea companys use of the

Internet to support or complete businessInternet to support or complete business

transactionstransactions

Increased competitionIncreased competition

Increased the speed of businessIncreased the speed of business


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Definitions EDefinitions E--business & Ebusiness & E--commercecommerce

EE--businessbusiness is a system that uses ais a system that uses a

number of informationnumber of information--technologytechnology

based business practices to enhancebased business practices to enhance

relationships between a business andrelationships between a business andits customers/stakeholders.its customers/stakeholders.

EE--commercecommerce is the process of allowingis the process of allowing

Web based technologies to facilitateWeb based technologies to facilitatecommerce or trade.commerce or trade.


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Figure 1.4 Three definitions of the relationship between e-commerce and e-business


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Whats eCommerce?

Strategic deployment of computer-

mediated business tools and

information technologies to satisfybusiness objectives (or might it be to

help re-shape them?).

*Hoffman & Novak, 1996


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e-commerce

E-commerce

First coined by IBM it can now be

considered to include all digitally enabled

commercial transactions between and

among organisations and individuals.

(Laudon & Traver, 2001, p. 6)


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EE--commerce basicscommerce basics

List the different combinations of buyersList the different combinations of buyers

and sellers engaged in eand sellers engaged in e--commerce.commerce. Explain why many onlineExplain why many online--only eonly e--

commerce companies failed and whycommerce companies failed and why

traditional businesses have added etraditional businesses have added e--

commerce.commerce.


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EE--Commerce CategoriesCommerce Categories

EE--commercecommercethe process of using thethe process of using the

Internet to allow buyers and sellers to engageInternet to allow buyers and sellers to engage

in tradein trade

BusinessBusiness--toto--consumer econsumer e--commercecommerce ConsumerConsumer--toto--consumer econsumer e--commercecommerce

BusinessBusiness--toto--business ebusiness e--commercecommerce


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EE--commercecommerce

BusinessBusiness--toto--business ebusiness e--commerce is verycommerce is verycommon, while businesscommon, while business--toto--consumer econsumer e--

commerce is still a small percentage of overallcommerce is still a small percentage of overall

retail sales. Nevertheless, eretail sales. Nevertheless, e--commerce is ancommerce is an

important part of a multiimportant part of a multi--channel retail approach.channel retail approach.

PurePure--play eplay e--commerce companies use thecommerce companies use the

Internet to meet market needs, and traditionalInternet to meet market needs, and traditional

brickbrick--andand--mortar retailers use the Internet as amortar retailers use the Internet as atool to reach and maintain relationships withtool to reach and maintain relationships with

their customers.their customers.


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BusinessBusiness--toto--Consumer EConsumer E--CommerceCommerce

BrickBrick--andand--mortar storesmortar storestraditional retailtraditional retailbusinesses operating out of buildings wherebusinesses operating out of buildings wherecustomers come and shopcustomers come and shop

Multichannel strategyMultichannel strategybusinesses thatbusinesses that

traditionally used stores or catalogs for sales thattraditionally used stores or catalogs for sales thathave added ehave added e--commercecommerce

BrickBrick--andand--click businessesclick businessesbusinesses thatbusinesses thatoffer both traditional and Internet salesoffer both traditional and Internet sales

BusinessBusiness--toto--Business EBusiness E--CommerceCommerce

Many of the same features as BMany of the same features as B--toto--C sitesC sites

Reverse auctionsReverse auctionsbusinesses bid against eachbusinesses bid against eachother for customer ordersother for customer orders


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Roles and Relationships

The business

Customers

Supply chain

Information

Technology

Communication


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OnlineOnline--Only to BrickOnly to Brick--andand--ClickClick

Most early onlineMost early online--only businesses did notonly businesses did not

survive due to high startsurvive due to high start--up costs and fewup costs and few

customers.customers.

Traditional businesses saw a growingTraditional businesses saw a growingmarket acceptance of emarket acceptance of e--commerce andcommerce and

added Internetadded Internet--based marketing functionsbased marketing functions

to serve their markets.to serve their markets. Smaller businesses often use eSmaller businesses often use e--commercecommerce

service providers.service providers.


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ConsumerConsumer--toto--ConsumerConsumer

EE--CommerceCommerce

Online auctionsOnline auctions Online exchangesOnline exchanges


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Figure 1.1 The distinction between buy-side and sell-side e-commerce


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Figure 1.2 Summary and examples of transaction alternatives between businesses,

consumers and governmental organizations


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Figure 1.5 UK rate of adoption of different digital mediaSource: MORI Technology Tracker, January 2006. See www.mori.com/technology/techtracker.shtml for latest details


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Cost/efficiency and competitiveness drivers

Cost/efficiency drivers

Increasing speed with which supplies can be obtained

Increasing speed with which goods can be dispatched

Reduced sales and purchasing costs Reduced operating costs.

Competitiveness drivers

Customer demand

Improving the range and quality of services offered Avoid losing market share to businesses already using

e-commerce.


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Tangible and intangible benefits

Tangible benefits Intangible benefits

Increased sales from new sales leads

giving rise to increased revenue from:

new customers, new markets

existing customers (repeat-selling)

existing customers (cross-selling).

Marketing cost reductions from: reduced time in customer service

online sales

reduced printing and distribution costs of

marketing communications.

Supply-chain cost reductions from:

reduced levels of inventory

increased competition from suppliers shorter cycle time in ordering.

Administrative cost reductions from more

efficient routine business processes such

as recruitment, invoice payment and

holiday authorization.

Corporate image communication Enhancement of brand

More rapid, more responsive

marketing communications

including PR

Faster product development lifecycleenabling faster response to market

needs

Improved customer service

Learning for the future

Meeting customer expectations to

have a web site

Identifying new partners, supporting

existing partners better

Better management of marketing

information and customer information

Feedback from customers on

products


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Attitudes to business benefits of online technologiesS

ource: DTI (2002)


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Adoption of Internet and e-business services across EuropeSource: Eurostat, Community Survey on ICT usage in enterprises, eEurope (2005) Information Society Benchmarking Report, European Communities 2005,

http://europa.eu.int/information_society


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Barriers to development of online technologiesSource: DTI (2002)


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Intro to B2B Company

Employs 600 people worldwide

Turnover 100m

Products composites and speciality polymers

See www.globalcomposites.com

Distribution 90 companies worldwide via jointventures and agents

Competitors:

Derakan (www.dow.com/derakane)

Scott Bader (www.scottbader.com)

Owens Corning (www.owenscorning.com)


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North West Supplies Ltd site (www.northwestsupplies.co.uk)S

ource: Opportunity W ales


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Intro to B2C Company

Established 1984, 80 staff

Products Kitchenware

Distribution

Through retailers and transactional web sites

Competitors

Cooking.com (www.cooking.com)

Lakeland (www.lakelandlimited.com) Tupperware (www.tupperware.com).


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End of Session

Next Session

E-Bus Strategy

A2-Intro to Ebus

Documents

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