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Are You In The Right Place?

MIS-7570

E-Business

Prof. Bob Reck

? ?

Traditional Electronic Commerce Definition

Buying and selling of information, products and services via computer networks/electronic media through all phases of business transactions

DefinitionDefinition

Electronic Commerce

Electronic Commerce

Perspectives And Objectives

• Impact of electronic commerce on business design and strategy (and vice versa)

• Impact on industries and markets

• Technology underpinning for Electronic Commerce (languages, hardware, software, networks, Internet, EDI, standards and protocols)

• Impact on other information systems within a business (ERP, integration needs, value chain elements, knowledge management)

MIS-7570 - Overview of Topics

• Introduction and Key Frameworks and Models

• Business and Technology Perspectives

• Buy Side, Sell Side, SCM Viewpoints

• Components of an E-Comm Business

• Linking Business Strategy and E-Comm

• E-Comm as a Transformation Tool

• EC and Banking/Publishing

• m-Commerce and EC Appliances

• Issues and Red Herrings

http://faculty.babson.edu/reck/mis7570f00,e-campus (?) and K:/Courses/MIS7570

http://faculty.babson.edu/reck/mis7570f00,e-campus (?) and K:/Courses/MIS7570

MIS-7570 - Cases

• e-Steel.com*

• Dell.com*

• GE TPN

• Chemdex.com*

• Online Banking: Wells Fargo and Bank of America

• Napster.com*

• McDonnell Douglas

* Site study is the basis for the case.

Guests

• Eugene Wu, CEO and Joanne Mooradian, VP Marketing - ThinkMart

• Richard Kesner - Hurwitz Group

• Marc Cecere - Giga Information Group

• Richard Kane - Zefer Group

• Karen Temkin and Glenn Mangurian - Frontierworks

• Greg Ross - eStrategies

• Richard Voss - Babson College (?)

• Marcus Torchia - Lernout and Hauspie Systems

• Phillip Bakker - PriceWaterhouseCoopers

• … and ???

Primary And Optional Texts

• PriceWaterhouseCoopers, E-Business Technology Forecast, May 1999

• [T&S] G. Winfield Treese and Lawrence C. Stewart, Designing Systems for Internet Commerce, Addison-Wesley Co., 1998

• [K&R] Ravi Kalakota and Marcia Robinson, e-Business: Roadmap for Success, Addison-Wesley Co., 1999

• (Optional Reading) [D&M] Jack Davis and Susan Merritt, The Web Design Wow! Book, Peachpit Press, 1998

Related Courses

• MIS7520, Designing Organizations with Information Technology (DOIT)

• MIS7571, IT and the Value Chain

• MKT7570, Direct Marketing and E-Commerce

• MKT7540, Retailing in a Networked Environment

• OPS7520, Supply Chain Management

See the career track section on GlobeNet.

Grading

30%

30%

40%

Class ParticipationCase StudyTeam Bus. Plan

Class Participation - Major Elements

• Professional behavior

• Participation in class discussions

• Active listening

• “Tuned in” body language

• Demonstration that you did homework

• Insights into material

• Knowledge building from class to class

• Personal mastery

• Giving 110%

• No games or e-mail on the PCs at the back of the room!! ;-)

Case Study

• Individually prepared

• Unique company or industry

• Electronic commerce or electronic business

• Field work, research, analysis, Web, library, visits

• Resembles Harvard Case Studies

• May use/show Web sites, presentations, video, other media

• Encouraged to post on Web for open access to rest of class or others

• Detailed contents in syllabus

• Due November 13-14, 2000

Initial Company List

• Ariba.com• Boeing.com (maintenance)

• CheckFree (online billing)• CSX.com (freight)

• DrKoop.com (medical)• Ernie.ey.com (consulting)• Ernst & Young (Knowledge Mgt.)• Expedia.com (travel)• geocities.com (portal)• Hilton.com (hotels)

• Home Depot• Homestore.com• HSN.com (Home Shopping Net)

• Imark.com• ImproveNet.com (DIY)• Millipore• Miningco.com (web guides) • N2K.com (music)• Nolo.com (legal info)• Open Market.com (EC

software)• Owners.com (home sales)• Plasticsnet.com• Priceline.com (travel plus)• SpringStreet.com (apartments)• Tradeout.com

Instructor invites othersuggestions. Please get

approval before proceeding.

Initial Topics List

Instructor invites othersuggestions. Please get

approval before proceeding.

• Advertising (Agency Side)• Auctions Online• Automobile Industry (SCM)• Automobile Industry (Sell Side)• Buy Side Software• Commercial Insurance• CRM Software• Cyberwar (international)• Distance Learning• E-Comm Costs (re Business Models)• Entertainment• ERP Integration with E-Comm• Banking (update class case)• Education and Certifications• Fashion Sales• Financial Services• Government Interventions (e.g., taxes,

etc.)• Government Online (Fed/State/Local)• Grocery Industry (SCM, comparisons)• ISPs/CSPs/ASPs• Knowledge Management

• Medical Advice and Support• Music Online (MP3, Napster, etc.)• News Services• Non-US E-Comm (e.g., pick your

own geography)• Online Pharmacies• Online Politics• Personal Insurance• Purchasing Services• Real Estate• Recruiting/Job Finding• SCM (Supply Chain Management)

and ERP• Search Engines• Sell Side Software• Streaming Media• Toys Online (comparisons)• Trading Hubs• Travel (comparisons)• Vacation Homes Online• Zines (comparisons)

Team Web-Based Project

• Teams of two to four students

• Propose, design and develop an electronic commerce business

• New EC initiative, reinvention of troubled initiative, EC initiative for a mature company

• Short business plan

• Demonstration business “site”

• Encouraged to post on Web for open access to rest of class

• Detailed contents in syllabus and in second class on business plans

• Presentation to class

• Due December 4-5, 2000

Traditional Electronic Commerce Definition And Implications

Buying and selling of information, products and services via computer networks/electronic media through all phases of business transactions • Buyers and sellers can directly connect• Full digital information exchange between trading partners• Time and place limits almost no factor• Interactive with attendant impact on customer behavior• Updated in real time• All or most trading steps and transactions included• Complete restructuring of the channel• New roles for IS and other organizational units• Major change!!

DefinitionDefinition

ImplicationsImplications

Twelve Changes That Put E-Comm On The CEO’s Agenda - E-Comm Will …

• Change the basis of competition

• Change how we work (reengineer) and level of coordination

• Change how we market and sell

• Change timing and pace of business

• Change relationships with suppliers, customers and others

• Change how we allocate resources

• Change image

• Change culture

• Change products and services

• Change how we get/retain staff

• Change how we provide service

• Change how we invoice and get paid “12”“12”

Who’s Making Money (Or Trying To)?

Mature Businesses

Start-Ups

IT Companies

Communications

Infrastructure Providers

Consulting

Venture Capital/ Investment

Government

Past Approaches To Electronic Commerce

• World Wide Web - shifts from other media

• “Run it up the flagpole and see if anyone salutes”

• Focus on catalogue and order capture - No change in sales model

• Complex accommodation to current channels - No change in business model

• Focus on the “usual suspects” - the same customer set

• Low budget

• Don’t give too much away

• Look with awe at “front-page” successes

Hit any key!

Electronic Commerce “Code”

•Netrepreneur•Cybermediary/Infomediary•E-lancers•Electronic affinity group•Sites and servers•Channels•Mall•Supply Chain Management•Search agent or engine•Authentication•Interactive•Digital signatures•Nanobucks•Electronic wallets•Portal Partner•Channel Partner

•Web•ISPs•URLs•HTTP/HTML/XML•Java•Cookies•Real Audio/Video•Zines•Links•Hits•Frames•Bots•Webcam•Spam•Bandwidth•Internet2

• Auctions• B2B• B2C• B2G• m-Comm• KM• Personalization• ASPs/ESPs/CSPs• ERP and EAI• Sell Side/CRM• Buy Side• FTP• SSL and SET• Public keys and

private keys

Key Frameworks For Course

• IT-Value

• 7-S

• SWOT

• Business “Diamond”

• Porter Industry Forces

• Value Chain

• CRLC

Business Value

BusinessValue

BusinessValue

Technology

EfficiencyEffectivenessTransformationCompetitive

Advantage

Business Value Comes From Business Change

No !!!

Strategy

BusinessChange

BusinessChange

BusinessValue

BusinessValue

Technology

Creates

Drives

Directs

Yields

Business Diamond

ManagementProcesses

ManagementProcesses

Culture,Beliefs

andNorms

Culture,Beliefs

andNorms

Informationand

InformationSystems

Informationand

InformationSystems

Organization,Skills and

Jobs

Organization,Skills and

JobsBusiness

Processes

BusinessProcesses

“7-S” Model

Reference: Athos and Pascale, “The Art of Japanese Management”

StructureStructure

StrategyStrategy SystemsSystems

SkillsSkills StyleStyle

SharedValues

SharedValues

StaffStaff

SWOT Analysis Framework

??Strengths Weaknesses

Opportunities Threats

Business Strategy - Porter’s Five Forces

PotentialEntrants

PotentialEntrants

SuppliersSuppliers BuyersBuyers

SubstitutesSubstitutes

Threat of new entrants

Bargainingpower ofsuppliers

Threat of substituteproducts or services

Bargaining power of buyers

Industry Competitors

Rivalry Among ExistingOrganizations

Business Strategy - Value Chain Analysis

Company

SupportActivities

Firm Infrastructure

Human Resource Management

Technology Development

Procurement

ProductDevelop-

ment

OperationsLogistics Marketing

and Sales

Service

Primary Activities

Ma

rg

in

Manufacturer Customer

Customer Satisfaction = Product Quality + "Moments of Truth"

Choose/Specify

Pay

Deliver

StatusInquiry

Order

Replace/Upgrade

Maintain/Repair

Hotline

Real TimeSupport

Joint Initiatives

AccountFor

Inventory

Train

"Get It"Product/Service

Delivery

"Fix It"After SaleServicing

'Use It"Usage Enrichment

CustomerResource Life Cycle

Install

The Internet : A Different Look

• Unique Business Propositions

• Customers come to you

• New channel

• Target advertising markets

• Businesses without inventory

• Sharing of viewpoints

• Ability to be small but act big

• “Personalized” products

Illusion of global markets

Illusion of a business

Illusion of community

Illusion of size

Illusion of skills

Illusion of customization

The illusion is the reality!!The illusion is the reality!!

Business Models - Simplified List

• Top-Level “Transplanted” Models

– Seller controlled - IBM.com

– Buyer controlled - GE TPN

– Neutral

• Internet-Native Models (cost structure enabled)

– Portals and CSPs

– Auctions (dynamic swaps, real time)

– Infomediaries

• Vertical hubs - Chemdex

• Functional hub - freelance.com

• E-shop - pcwarehouse.com, amazon.com*

• E-mall - fashionmall.com

• Advertising base - yahoo.com

• Subscription base - wsj.com

• Direct marketing - julie.com

• Freeware - realplayer.com

• Free content - napster, mp3.com

• Auctions - e-bay.com

• Third-party marketplace

• Virtual communities - pchelp.com

• Information brokerages and search services - excite.com

CLASS 2

Tentative

Slides