Tài liệu E-business 2.0: Roadmap for Success! pdf

Chapter One
Chapter One
Moving from
E-commerce to
E-business
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E-Business
E-Business
Why Study E-business?
Why Study E-business?
Promise:
Streamlined Business


Network Infrastructure


Adaptive Supply Chains

Process Automation
Lack of
Framework
Reality:
Blizzard of Buzzwords
Customers.com
CRM
ERP
Digital Economy
SCM

Portals
Exchanges
The scale and scope of modern IT investments requires
that managers have a clear understanding of e-business
fundamentals!
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E-Business
E-Business
Consequences of not Studying E-business?
Consequences of not Studying E-business?
Poorly
Designed
Business
Processes
Persistent Channel
Conflicts & Cross-
Department
Tensions
Locally Optimized
Business Processes
Order
Order
Fulfillment
Fulfillment

ERP
ERP
CRM
CRM


Procurement
Procurement
Incompatible Projects
Resistance
to Changes
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E-Business
E-Business
Need for a Robust Framework
Need for a Robust Framework
E-business Course
Goals
Rationalize buzzwords
Recognize
commonalties across
business environments
Framework for
designing more
effective new systems
Provide a Managerial
Perspective
A set of basic principles

Understand how to map
business needs to e-
business solutions
Synthesis
Information Technology (IT) changes, but
management principles persist!
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E-Business
E-Business
Enable

Business Strategies
and Processes
E-business Applications
IT Infrastructure
Drive
Drive
Enable
What is the basic
framework that ties
business strategies to
applications?
What are the key ideas
of e-business strategies
and how do they
translate into e-business
design to align IT with

business needs?
Framework for Book
Framework for Book
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E-Business
E-Business
Table of Contents
Table of Contents
Ten Rules of E-business
Ten Rules of E-business
E-Business Success Stories
E-Business Success Stories
What does this mean for
What does this mean for
managers – Looking Deep
managers – Looking Deep
E-commerce vs. E-business?
E-commerce vs. E-business?
Key Take-Aways
Key Take-Aways
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E-Business
E-Business
E-commerce
E-commerce
Refers to selling of products and services over

the Web
Transactions fall into three categories:
–
Business-to-business (B2B)
–
Business-to-consumer (B2C)
–
Consumer-to-consumer (C2C)
The goal of e-commerce is to reduce
transaction costs
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E-Business
E-Business
E-commerce Maturity
Functionality
Brochure ware
Web Storefront
E-commerce
Transactions
0
1 2 3
4
Communities of Interest
Mega-Portals
Complex
Limited
E-commerce Progression
E-commerce Progression

E-commerce has evolved rapidly since 1995
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E-Business
E-Business
E-business
E-business
The back-office applications, systems or
processes that create goods and/or provide
services.
E-business includes:
–
Customer Relationship Management
–
Enterprise Resource Planning
–
Supply Chain Management
–
Human Resource Management Systems
–
And more . . .
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E-Business
E-Business
E-commerce vs. E-business
E-commerce vs. E-business
value added

“INPUTS”
•
People
•
Raw Material
•
Serves Customers
•
Product Sold
“OUTPUTS”
•
Processes
•
Facilities
•
Equipment
•
Finance
•
People
TRANSFORMATION
E-business
E-commerce
E-business: The transformation of key business
processes through the use of Internet technologies!
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E-Business
E-Business

Inputs
E-commerce
Products
Services
Labor & Capital
Customer
Feedback
for control
E-business
E-business
Network of activities
Flow Units
(Raw material,
people,
information,
etc.)
Resources
Process
Analysis & Management
E-business: All About Managing Business
E-business: All About Managing Business
Processes
Processes
A business process is a network of activities that
takes one or more inputs and creates an output
of value to customer
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E-Business

E-Business
E-business: Linking Today’s Business with
E-business: Linking Today’s Business with
Tomorrow’s Technology
Tomorrow’s Technology
E-business -- includes all apps and processes
enabling a company to service a transaction
E-business Evolution
–
Phase 1: Presence, information-only
–
Phase 2: Transactions
–
Phase 3: Profitability
E-business in third phase today:
–
Psychology of first two phases: technology would
trump experience; future would belong to upstarts
as eToys
–
Psychology of this phase: experience, distribution,
margins are worth something
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E-Business
E-Business
Table of Contents
Table of Contents
Ten Rules of E-business

Ten Rules of E-business
E-business Success Stories
E-business Success Stories
What does this mean for
What does this mean for
managers – Looking Deep
managers – Looking Deep
E-commerce vs. E-business?
E-commerce vs. E-business?
Key Take-Aways
Key Take-Aways
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E-Business
E-Business
E-business is Changing All Industries
E-business is Changing All Industries
Communications
Communications
Utilities
Utilities


Hospitality
Hospitality
Automotive
Automotive
Financial
Financial

Insurance
Insurance
Petrochemical/
Petrochemical/
Process
Process
Transportation
Transportation
Manufacturing
Manufacturing
Health Care
Health Care
Entertainment/
Entertainment/
Hi-Tech
Hi-Tech
Consumer/
Consumer/
Services
Services
Retail
Retail
What differentiates the e-business efforts of leading
companies from the pack?
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E-Business
E-Business
Visionary Firms and E-business

Visionary Firms and E-business
Visionary companies understand current business
designs are inadequate for doing business in the e-
commerce era
–
Can buy a $999 built-to-order PC from Dell online but not a
customized $3000 color copier from Xerox
–
Cisco can overhaul its product line every 2 years, but Kodak
cannot seem to deliver rapid innovations to meet changing
customer requirements
Visionary companies have integrated operations to
support changing customer requirements
–
E-customers’ needs, tastes, and expectations transforming
shape of the enterprise
Necessary: fusion of business designs, processes,
apps, and systems on an unprecedented scale
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E-Business
E-Business
Visionary Firms and E-business
Visionary Firms and E-business
Management at leading companies often ask:
–
How will ecommerce change our customer
priorities?
–

How can we construct a business design to meet
these new customer priorities?
–
What kind of new apps infrastructure do we need
to orchestrate the new business design?
–
What short-term and long-term investments in
people, partners, and tech must we make to
survive, let alone thrive, in the new economy?
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E-Business
E-Business
E-business Capabilities
E-business Capabilities
Process-based
–
Capacities that transforms material or information
and provide advantages on dimensions of cost and
quality.
–
E.g., United Parcel Service (UPS)
Systems-based
–
Capacities that are broad-based involving the entire
supply chain and provide advantages of short lead
times and customization.
–
E.g., Dell Computer

Organization-based
–
Capacities that are difficult to replicate and provide
abilities to master new technologies.
–
E.g., Cisco Systems
Let’s look at a few visionary companies….
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E-Business
E-Business
Founded in 1907 to become world’s largest express and
package delivery firm
–
13.2 million packages per day, 3 billion/year
–
344,000 employees; $29.8 billion revenue
–
11th largest airline; Largest cellular user in the world
Initially a laggard in use of IT. In 1980s and throughout
the 90s, spent billions of dollars putting in place
–
Tracking and tracing technology
–
Frontline handheld technology
–
E-commerce capabilities
–
Huge customer databases

Benefits
–
2 Million tracking requests per day over the web
–
Connect 1.7 million sellers with 7 million buyers every day
Annual IT investment
of over $1 billion
United Parcel Service
United Parcel Service
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E-Business
E-Business
Dell - Build to Order E-channel
Dell - Build to Order E-channel
Challenges
–
Scale to large volumes - $50 million a day
–
Service consumers & businesses
Solution
–
Premier Pages: Provide full-service (leasing, financing, order
status)
–
Increases effectiveness of their sales force
Benefits
–
Sales today: 60% Businesses, 40% Consumers

–
Improved Customer Service (7x24 account status, real-time
order status)
–
More efficient, lower-cost sales cycle
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E-Business
E-Business
Cisco Systems
Cisco Systems
Most successful “New Economy” firm with
“Old Economy” discipline and operational excellence
Cisco has propagated IT throughout the organization, in
every major function
Significant investments in back office ERP ($30M) and
Internet/Intranet ($100M)
Almost $400M annual savings from use of technology
E-business use is a major competitive long-term strategy
for Cisco
Made it very difficult for slow-moving, traditional
companies (Lucent, Nortel) to catch up
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E-Business
E-Business
What Do Leading Firms Have in Common,
What Do Leading Firms Have in Common,

Business-Wise?
Business-Wise?
Unusually successful within their industries
Profitable and growing
Clear strategic intent – Wal-Mart (Low Price Guarantee)
Long-term technology blueprint -- “Built to last”
Complex, multi-functional business model
Good places to work – employees turnover low
Continually innovative
Fit among strategy, business model, systems
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E-Business
E-Business
Table of Contents
Table of Contents
Ten Rules of E-business
Ten Rules of E-business
E-business Success Stories
E-business Success Stories
What does this mean for you –
What does this mean for you –
Looking Deep
Looking Deep
E-commerce vs. E-business?
E-commerce vs. E-business?
Key Take-Aways
Key Take-Aways
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com
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E-Business
E-Business
Ten Rules of E-business
Ten Rules of E-business
Rule 1 Technology is no longer an afterthought in forming business
strategy, but the actual cause and driver
Rule 2 The ability to streamline the structure, influence, and control of
the flow of information is dramatically more powerful and cost-
effective than moving and manufacturing physical products
Rule 3 Inability to overthrow the dominant, outdated business design
often leads to business failure
Rule 4 E-commerce is enabling companies to listen to their
customers and become either “the cheapest,” “the most
familiar,” or “the best”
Rule 5 Don’t use technology just to create the product; use it to
innovate, entertain, and enhance the entire experience
surrounding the product, from selection and ordering to
receiving and service
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E-Business
E-Business
Ten Rules of E-business
Ten Rules of E-business
Rule 6 The business design of the future increasingly uses
reconfigurable e-business community models to best meet
customers’ needs

Rule 7 The goal of new business designs is for companies to create
flexible outsourcing alliances that not only off-load costs but
also make customers ecstatic
Rule 8 For urgent e-business projects its easy to minimize
application infrastructure needs and to focus on the glitzy
front end apps. The oversight can be costly in more ways
than one
Rule 9 The ability to plan an e-business infrastructure course swiftly
and to implement it ruthlessly are key to success; ruthless
execution is norm
Rule 10 The tough task for management is to align business
strategies, processes, and applications fast, right, and all at
once; Strong leadership is imperative
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E-Business
E-Business
Ten Rules of E-business: Rule 1
Ten Rules of E-business: Rule 1
Technology is no longer an afterthought in
forming business strategy, but the actual cause
and driver
–
Conventional, risk-averse businesses cannot ignore
e-business
–
E-commerce poses most significant challenge since
advent of computing
–

Most execs unaware of impact of these changes
–
Need to see business differently; maintaining status
quo not a viable option