Introduction to e-business - HEC Montréalneumann.hec.ca/sites/cours/30-775-01/IBM-lecon1.pdf ·...
Transcript of Introduction to e-business - HEC Montréalneumann.hec.ca/sites/cours/30-775-01/IBM-lecon1.pdf ·...
Topics
What is e-business?The e-business CycleIBM Application Framework for e-businessIntroduction to Friendly Foods Case Study
What is e-business?
An e-business is an organization that connects critical business systems directly to its customers, employees, partners, and suppliers via intranets and extranets and over the Web.
The Value of e-business
Companies embracing e-business are able to dramatically improve and integrate key business processes using Internet technologies.
How does an organization How does an organization become an e-business?become an e-business?
What is the value of being an e-business?
How can customers achieve e-business value for their own organizations?
Opportunities
Serve customers worldwideGrow revenue
Increase market share
Become moreefficient
Reduce costs
Enhance communitiesCustomersPartnersEmployeesSuppliers
Real-life Value of e-business
Source: The McKenna Group and IBM.
Increased orders Improved dealer satisfaction75% lower transaction costs$60M saved
Manufacturing CompanyQuadrupled revenue Saved $2.8M Improved satisfaction
Retailer
Doubled policies soldSaved $.6M annually
Saved $4 millionReduced average ticket price
Airline
Telecommunications Company
Increased customer satisfaction Saved $2.5 million
Insurance Company
High Impact Processes
Banking and Finance Customer support and developmentCustomer acquisitionPayment and billing
Retail Distribution Customer acquisitionProcurement and inventory management
Manufacturing ProcurementInventory management
Customer acquisitionCustomer support and development
Telecommunication Customer support and developmentInvoicing
Insurance Customer acquisitionCustomer/channel support & developmentClaims processing (P&C only)
Travel
1998 1999 2000 2001 2002 20030
100
200
300
400
500
600
700U
sers
(Milli
ons)
Rest Of WorldJapan/APWestern EuropeNorth America
Worldwide Internet Growth
166M
261M
623M
542M
449M
350M
Source: IDC
1999 2000 2001 2002 2003 20040
100
200$Billions
Source: Forrester
Business-to-Consumer e-commerce
$184B(U.S. only)
Business-to-Business e-commerce
1999 2000 2001 2002 2003 20040
2000
4000
6000
8000$Billions
$7.29T
Source: GartnerGroup
(Worldwide)
Explosion of business
activity and competition
Power Shift in the Marketplace
Shift of power to the customerMore informedWorldwide vendor choiceEasier to transact
Shift of advantage to the agileCompanies that are preparedCompanies that can act quickly
Source: Booz, Allen & Hamilton and the Economist, May 1999, Survey of 600 WW CEOs
% of CEOs
76%
67%
56%
56%
54%
44%
Helping CEOs Reach Their Strategic Goals
Improve Customer Satisfaction
Reduce Cost Structure
Globalize Operations
Foster Innovation
Accelerate Speed to Market
Grow Market Share
Emerging Commerce Models
There's an upsurge of new intermediaries that offer innovative trading methods at attractive cost
They are pressuring traditional channels with their:
Low cost of operation Global reachLimitless scope of products and services
e-marketplaces
Two-way simultaneous auctions in which both buyer and seller prices float
Frictionless market
Seller
Buyer
Seller
Seller
SellerSeller
Seller
Buyer
Buyer
Buyer
Buyer
BuyerIntermediaries
NetworkedNetworkedHomeHome
SmartCardSmartCard
NetworkedNetworkedVehicleVehicle
MobileMobilee-businesse-business
Pervasive Computing
The Opportunity
Ubiquity and acceptanceof the Internet
Dramatic growth of e-commerceInnovative new business models
Pervasive access
To thrive, companies must harnessthe new e-business environment
The landscape is changing --And it's changing very quickly
Topic 1 Summary
An e-business is an organization using Internet technologies to connect critical business systems to major constituents
The e-business opportunity is growing at an extremely high rate and represents an increasing portion of customer spending and revenue potential
Topics
What is e-business?The e-business Cycle
IBM Application Framework for e-businessIntroduction to Friendly Foods Case Study
The Realities of e-business
Customers do not control the Internet. The world is heterogeneous; there are clients and servers. Downtime will affect more than employee productivity There is more pressure on development cycles than ever before.
Challenges
ServeServe Customers Customers WorldwideWorldwide
Open for business around the clock
all year longExpectation
of immediate response
Technology moving at
Web-year pace
Rules ofcompetition
changing
Dramatic effect onbusiness processes
Security and privacyare real concerns
Electronicvs.
personal touch
The Road to e-business
Complexity of Processes and Business ModelComplexity of Processes and Business Model
Maximum gainCultural and IT change"Bet your business"
Transformthe business
B2B and B2C transactions
Provide access to customer data
Publish info on the Web
TH E PU N Y
P A YOFF
F ROMOFFICE C
OM P
UTE RS
E D
ITORIA
L
H
Sp
e cia
l R ep or t
M AN
A GE M ENT 'SNE WES T
S T EP
Co v
er Sto ry
THE COM PUT E R
SLUM
P
S pe cia
l R eport
M A NA G EM ENT D ISCO VE R STHE H UM AN SI DE OF A UT OMA TI ON
Low impactNot difficult
Some valueSome effortNon-disruptiveMinor risk
Real functional benefitConsiderable effort, disruption, and risk
Infra
stru
ctur
e In
vest
men
tIn
frast
ruct
ure
Inve
stm
ent
New Thinking Is Required
Run
Leverage Transform
Build
On a Strategy Level:Organizational practices
must change
Solution Frameworks for e-business
On a Technology Level:Applications and
infrastructure must develop
Application Framework for e-business
The e-business Cycle - A Proven Approach
Buildnew
applications
Transformcore business
processes
Leverageknowledge andinformation
Runa scalable, available, safe environment
Transform Key Business ProcessesTransform
Customer loyaltyEmployee awareness, self help, and communicationSupply chain managementElectronic commerceBusiness Intelligence
Key Areas
CustomersCustomersMass merchandisingrelationship based on latest transaction
PersonalizationLong-term loyal relationship
EmployeesEmployees Functionally competentBroader awareness and expertise in efficientlyserving customers
SuppliersSuppliers VendorsPartners in serving the customer
ChannelsChannels Bricks and mortar Optimum mix of electronic and physical
Inventories Inventories and and SuppliesSupplies
Based on historical and market forecasts
Reflects current customer and market activity
Business Business StatusStatus
Executive view rolled up from functional activities
View based on up-to-the-minute integrated operational activity
GoalsToday
Transform
Becoming an e-business
Source: McKenna Group and IBM, 1998.
Industry
ProcurementInventory managementManufacturingManufacturing
Retail DistributionRetail Distribution
Process
InsuranceInsurance
TelecommunicationsTelecommunications
TravelTravel
Customer acquisitionProcurement and inventory management
Customer acquisitionCustomer/channel support and developmentClaims processing (P&C only)
Customer support and developmentInvoicing
Customer support and developmentCustomer acquisitionPayment and billing
Banking and Banking and FinanceFinance
Customer acquisitionCustomer support and development
High-Impact ProcessesTransform
Success Requires
Executive vision and commitment to adapting to e-business and building the business model to support itPriorities for business processesCompany-wide teamworkAccess to proven expertise
Planning consultingCustomer relationship servicesSupply chain management servicesE-commerce servicesBusiness management/ERP servicesReturn on Web investment
Transform
New applications that span and extend existing applications and dataReduce the time it takes to build and deploy applicationsDesign applications based on standards that span multiple platforms and vendorsBuild applications that are easier to expand and that evolve with market needs
Build Applications on Proven Assets
Build
Key Areas
Broad access via the WebOptimized to the individualFrom everywhere with anythingTo new and existing applications and information
A New Generation:Network-Centered Applications
Scalable, available, reliable applications Security and privacy built into applicationsFlexibility to evolve with market needs
Build
The Application Model You Choose Matters
NT LinuxAIX SolarisOS/2 NetWareHP-UXOS/400OS/390
BUILD RUN MANAGE
Build
Integrated applicationsExisting applications expanded with e-business functions Software that spans platforms and vendorsBuilt-in security and privacyStandards-based components that evolve with market needs
Success Requires
Build
Be open for business 24 hours a day, 7 days a week, 365 days a yearRespond rapidly to any and all requests Manage the extended enterprise effectivelyProvide a secure environment for electronic transactions and data transfersProtect customer privacyCreate a more cost-effective infrastructure that grows as business grows
Run An Enabling Infrastructure
Run
Key Areas
Available and Responsive
What's needed?What's needed? What's it worth?What's it worth?
Cost of outage
Lost business
Brand reputation
Personnel costs
Customer satisfaction
Loyalty
vs.
Redundancy
Scalability
Clustering
Workload Management
Availability
Run
A scalable, available, secure environmentOpen for business non-stopCapacity on demandAccessible from anywhereSingle-action management across the extended enterpriseAppropriate level of security
Success Requires
Run
A responsive cultureOrganizational knowledge shared across the companyInformation turned into action and market advantage
Improved brand imageCustomer needs anticipatedLoyal customers
Continuous ImprovementLeverageKey Areas
"An organization's ability to learn and translate that"An organization's ability to learn and translate that learning into action rapidly is the ultimate learning into action rapidly is the ultimate competitive business advantage." competitive business advantage."
Success Requires
An organization that learns from experience:Effectively captures and analyzes business informationMakes information available to the people who need itShares experience across the organization
Leverage
The Road to Successful e-business
e-business Success
Web presence
Web transactions
Webinformation
access
An integrated,enabled
e-business
Build
TransformLeverage
Run
Executive visionThe right approachExpert help
PeopleToolsSolutions
Topic 2 Summary
The e-business opportunity is growing at an extremely high rate and represents an increasing portion of customer spending and revenue potentialThe e-business opportunities with the highest ROI differ from one industry to another, but all face common challenges in:
Customer relationship managementSupply chain managementElectronic commerce
The e-business cycle defines IBM's approach to creating a successful e-business
Topics
What is e-business?The e-business CycleIBM Application Framework for e-business
Introduction to Friendly Foods Case Study
Topic 3 Objectives
Describe the Application Framework for e-businessState why the Application Framework for e-business is important Describe the main features of the Application Framework for e-businessList some of the products that support the framework
Web Publishing
e-business
Awareness Presence Pilot Adoption
Use the Internet Internally
Establish a Web site
Allow Access to Core Systems(read only)
Allow Transactionson Core Systems
Improve Core Business Process(es)
Redefine Core Process(es)
Stage of Adoption
Focus
Security Chasm
Business Value
Chasm
Next Generation e-business
Source : The McKenna Group Interviews and Analysis
Integrate Core and Redefined Processes with Partners and Customers
e-business Adoption Process
Process Investment
Cross- Process Integration
Value Network Creation
Supp
liers
Supp
liers
Custom
ersC
ustomers
EnterpriseEnterpriseResourceResourcePlanningPlanning
SupplySupplyChainChain
ManagementManagement
InfrastructureInfrastructure
e-comm
ercee-com
merce
CustomerCustomerRelationshipRelationshipManagementManagement
e-co
mm
erce
e-co
mm
erce
Business IntegrationBusiness Integration
Transforming Core Processes
CollaborationCollaborationBusiness IntelligenceBusiness Intelligence
Knowledge ManagementKnowledge Management
--
Web Presence e-business Transactions
Integrated e-business
"Next Generation"
Web-Based Collaboration
Pervasive Computing
Content Management
Business Intelligence
SecureNetwork
Systems Management
Web-based Transactions
Workflow/Business Integration
E-marketplace
Unified Portals
Web-Based MessagingWeb
Serving
Evolution of e-business Application Capabilities
--
Building e-business Applications
An architecture that enables continued e-business transformation through the use of:
An open, standards-based e-business platformPatterns for e-businessA comprehensive product set
Application Frameworkfor e-business
Build Run Manage
Windows NT/2000 Linux AIX NetWare Solaris HP-UX OS/2 OS/400 OS/390
© Copyright IBM Corp. 2001 27
Draft Document for Review April 10, 2001 5:40 pm 6248chIBMAF.fm
Chapter 2. IBM Application Framework for e-business
An e-business is an organization that interacts with its customers, suppliers, business partners, and employees using web technologies, reaching new markets, building lasting customer relationships.
The IBM Application Framework for e-business is a proven approach for building and integrating successful e-business applications. It includes products from IBM and other leading software vendors that are:
• Industry standards-based for maximum flexibility in a multivendor environment. The examples of such standards are: Linux, CORBA, Java, HTML and XML. It includes the client, application server, data, and infrastructure standards that make it possible for a client to access data and services anywhere in the network.
• Implemented on servers for rapid deployment and update.
• Scalable as offerings and volumes grow.
Figure 1 shows e-business applications implemented on servers tying customers to different e-business activities.
Figure 1. Server based e-business applications
The framework environment allows for:
• Building on existing IT investment to make use of the current information system deployed in the enterprise as well as to promote fast growth
• Reusing elements for quick action to capture opportunities and respond to challenges
• Designing management capabilities into the application for maximum performance and availability
Latest e-business information is available on the Web site:
http://www.ibm.com/ebusiness
In this chapter we introduce an overall view of the e-business Application Framework. Technology details of each component and their application to different domains will follow in the next chapters.
Branches Customer SupportCenters
CollaborationBusiness Intelligence
Business Partners
eCommerce
BusinessSystems
PC S erver
32 0
Web StandardsConnectors
WebApplication Server
Web Browser
Operational Dataand Applications
Chapter 2. IBM Application Framework for e-business 35
Draft Document for Review April 10, 2001 5:40 pm 6248chIBMAF.fm
Details on the architectural components of the Framework are available on the Architecture Overview white paper:
http://www-4.ibm.com/software/ebusiness/arch_overview.html
Following are the high level architecture elements of the Application Framework:
• System model, presents an overview of the system elements and interconnection between them.
• Application programming model, highlights the software tools and products used to build, run and manage e-business applications.
2.3.1 System modelIBM’s Application Framework for e-business provides a model for designing e-business solutions. The Framework is based on an n-tier distributed environment where any number of tiers of application logic and business services are separated into components that communicate with each other across a network. In its most basic form, the Framework can be depicted as a “logical” three-tier computing model, meaning that there is a logical, but not necessarily physical, separation of processes. This model is designed to support clients with high-function Web application and servers for small and large enterprises.
The characteristics imposed by the framework system model help designers to meet the requirements of e-business applications. Figure 7 shows a high level system model for running an e-business application.
Figure 7. The Application Framework system model
ServerServer320
MiddleTierFirst Tier ThirdTier
Webserver,Applicationserver,Transactionserver,
Servlets, JSP,BusinessLogic
Beans, DataAccessBeans, Connectors
TCP/IP
HTTP(S)
EnterpriseInformation
Systems
Thinclient,Browser
Netscape/IE,PDA,
Mobilephones,HTMLpages,
WebTV
Student Notebook
Figure 2-6. Attributes of e-business Applications (in212225)
Notes:
• Standards-based - Not proprietary
• Server-centric - most processing occurs on the server
• Leverage core systems - access/integrate with existing applications
• Scalable - handle large volumes of users
• Quick to deploy, easy to use - very short development cycles, little or no usertraining required
• Manageable - programs and data can be monitored and maintained
2-10 Application Framework DRAFT June 13, 2000 8:53 a.m. Copyright IBM Corp. 1997, 1999
Course materials may not be reproduced in whole or in partwithout the prior written permission of IBM.
Portable and Portable and InterchangeableInterchangeablePresentation/AccessPresentation/Access
Portable and Portable and InterchangeableInterchangeable
Data/DocumentsData/Documents
Portable and Portable and InterchangeableInterchangeableBusiness LogicBusiness Logic
WebWebXMLXML
JavaJavaLinuxLinux
Open andOpen andPortablePortable
Operating System ServicesOperating System Services
Open e-business Platform
Web Application Server ORB, Java VM,
RDB and Transaction
JavaServlets, JSP, EJBClient
HTML, XML,WML, VXML
Infrastructure TCP/IP, HTTP, SSL, X.509v3, LDAP, PKI, SNMP, WfM, WBEM...
IntegrationXML, CORBA/IIOP,
Messaging
Standards for :InfrastructurePresentationApplication LogicData Logic
LINUX
Standards - Leading the Industry
The Infrastructure for e-business
Infrastructure that meet business requirementsBuilding a flexible server environment
Application Frameworkfor e-business
Build Run Manage
Windows NT/2000 Linux AIX NetWare Solaris HP-UX OS/2 OS/400 OS/390
ApplianceServers
Web ApplicationServers
Data TransactionServers
ApplicationApplicationServerServer
Enterprise
Basic Transport
ClientClient
ClientClient
1990
NetworkClientNetwork
Client
ApplicationApplicationServerServer
Service Provider
Evolving Today
Intelligent Network
NetworkClient
NetworkClient
Security Directory
Network Mgmt.
Mobility
Policy Mgmt.Caching Transcoding
MulticastClass of Service
NetworkClient
ApplicationApplicationServerServer
Enterprise
Evolving Infrastructure
Student Notebook
Figure 2-8. Client/Server Extended Model (in212235)
Notes:
One model is the typical Client/Server model which:
Requires all clients be the same platformRequires the client and server be deployed at the same time
This means that many applications are hardware, software, server dependent.
2-12 Application Framework DRAFT June 13, 2000 8:53 a.m. Copyright IBM Corp. 1997, 1999
Course materials may not be reproduced in whole or in partwithout the prior written permission of IBM.
Student Notebook
Figure 2-9. e-business Application Model (in212240)
Notes:
Another model is an e-business application model which:
• Integrates with existing hardware and software implementations• Supports the universal client
This means you can build the application without regard to the hardware and softwareon the client.
Unit 2. Introduction to the Application Framework 2-13 Copyright IBM Corp. 1997, 1999
Course materials may not be reproduced in whole or in partwithout the prior written permission of IBM.
e-business Evolution
Infr
astr
uctu
re In
vest
men
t
Optimal Investment
Awareness Presence Pilot Adoption Process Investment
Cross- Process Integration
Stage of e-business Adoption
Value Network Creation
Over - InvestmentWaste of Capital
Under - InvestmentLoss of Customers
e-business Infrastructure Investment
e-business Evolution
Infr
astr
uct
ure
In
vest
men
t
Technology A
Technology B
Technology C
Optimal Investment
Stage of e-business Adoption
Technology Shift
Stretching a technology beyond its design point is sub-optimal."One size" does not fit all.
e-business Infrastructure Investment
Awareness Presence Pilot Adoption Process Investment
Cross- Process Integration
Value Network Creation
A
B
C
The IBM Advantage
11 Flexible and scalable design acrossinfrastructures and platforms
Adopt e-business Application ModelRely on multiplatform standards
22 Products and technologies that make it work Speed growth and extend assetsBuild on a proven foundation witha sound futureHarness the power of integratedenterprise-class middleware and tools
33TM
Knowledge and expertise to acceleratee-business transformation
Start fast and smart with IBM services
Application Frameworkfor e-business
Build Run Manage
Windows NT/2000 Linux AIX NetWare Solaris HP-UX OS/2 OS/400 OS/390
OS/400OS/2 AIX HP-UX Solaris OS/390NT
DevelopmentTools and
Components
Application Server
Software
Secure Networkand Management
Software
IBM Application Framework for e-business
Field-tested methodology simplifies development and deploymentRich product portfolio supports simple to sophisticated applicationsBased on cross-platform standards including JavaFocus is on building solutions, not on details of products/components
IntroductionBackup.PRZ 5
IBM VisualAge
Helps professional programmers extend existing applications and add new functionVisual programming environmentSupports major languages, platforms and team development
Lotus DominoDesigner
IBM WebSphereStudio
Provides integrated tools and workbench for developers using IBM WebSphere Wizards guide development of servlets and JavaBeansSite management
Customizable templates that speed deployment of collaborative applicationsBuilt-in services like workflow, content management and full-text searchVisual development environment
Reusable business components accelerate delivery of applications running on e-business servers
SanFrancisco and eSuite
Development Tools and Components
IntroductionBackup.PRZ 6
IBM MQSeries
Connect applicationsSpeed application deployment and integrationManage and integrate business process flow across more than 35 application environments
Rapidly develop and deploy collaborative applicationsAdvanced capabilities for managing work and information flowIntegration with database, ERP and transaction systems
Speed transition from publishing to Web-based transactionsFor transaction intensive environmentsSupport for distributed business components
Lotus Domino IBM WebSphere DB2 UniversalDatabase
Best performing database for UNIX and NTHandles multimedia as well as conventional dataOptimized for Web applicationsDelivers enterprise class reliability and availability
Application Server Software
IntroductionBackup.PRZ 7
IBM SecureWay Family
Scaleable, standards-based cross-platform directoryDirectoryintegration across an extended enterprise
Tivoli
Standards-based Public Key Infrastructure (PKI)Integrated security
Simplest solution for host integrationDeliver Web applications"on demand"Mobile access
Locate Connect Secure Manage
Scaleable, open, cross-platformSingle-action managementEasy deployment and maintenanceBusiness system management
Secure Network and Management Software
IntroductionBackup.PRZ 8
ScalableReliableFlexibleSecureSupporting heterogeneous environmentsBased on open standards
Topic 3 Summary - A Complete Platform for e-business
Application Frameworkfor e-business
Build Run Manage
Windows NT/2000 Linux AIX NetWare Solaris HP-UX OS/2 OS/400 OS/390
Security
Client Network Server Appl.Server
Enterprise Data and
Applications
Systems Management
Connectors
Performance
e-business Building Blocks
Client Building Block
Main Issues/Decisions:Internet vs. Intranet customerUser skill levelSite language supportUsers' usage patternsApplication code distributionApplication maintain stateEnd-to-end response time
Client
Network Building Block
Main Issues/Decisions:Internet involvementProtocol useData, object, and application placementsSecurity functions Network functionEnd-to-end response time
Network
Server/Application Server Building Block
Main Issues/Decisions:Single or multiple server designClient choice and server designNumber of tiersDevelopment technologyClient-side logic and server-side logicPresentation, application, and data
access logicDistributed object support End-to-end response time
Appl.ServerServer
HTTP ServersServe up Web pagesServe up clients (Java Applet classes) Web Application Servers
Run (Java) componentsRun transactionsIntegrate with legacy data and applications
Commerce ServersSecure paymentShopping cartsBrowse catalogPersonalized shopping
Server Types
Connectors Building Block
Main Issues/Decisions:Enterprise systems, applications, and data accessData transferInformation statusSynchronous or asynchronous connectionsSecurity policiesOperating system, network protocols, and application environment connections
Connectors
Main Issues/Decisions:Transaction encryptionUser identificationClients/servers securityAccess restrictionsSecurity data storagePrivacy rulesLegal requirementsCompany policies
Security
Security Building Block
Performance Building Block
Main Issues/Decisions:Projected user volumeScalabilityAvailability requirementsServer workload managementSite statisticsPerformance measurement
Performance
Management Building Block
Main Issues/Decisions:Infrastructure installationDistributed application deploymentUser and security administrationSoftware distributionApplication monitoringResource management
Management