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12 views

Lecture 1

Uploaded by

mohaamedmezo123
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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E-business Course

Dr. Lamia Al Adel


Slide 1.7

E-business course: outline


• Introduction
• E-business Fundamentals
• E-business infrastructure
• E-Business Security & Environment
• E-business strategy
• E-procurement
• E- Finance / E- Marketing
• Electronic Payment systems
• E-Government
Management Information Systems

Business processes:
◦ Workflows of material, information, knowledge
◦ Sets of activities, steps
◦ May be tied to functional area or be cross-functional
Businesses: Can be seen as collection of
business processes
Business processes may be assets or liabilities

3
What is e-
Business?
 Conducting key business  An integrated system that
functions over electronic should provide:
systems: – e-Commerce
– e-finance – e-Payment
– e-HRM
– e-procurement – e-Communication
– e-marketing – e-Production
– e-manufacturing – e-Distribution
– e-management
• ...
 Connects critical
business systems
directly to its customers,
employees, partners, and
suppliers using Internet
technologies
E-Business Scope
Slide 2.1

E-business fundamentals
Slide 2.2

Outline

• Introduction
• E-business environment
• Marketplace analysis
• Intermediaries
• Business models
• Different approaches
E-commerce(EC) VS. E-business
E- commerce(EC): describes the process of
buying, selling, transferring, or exchanging
products, services, and/or information via
computer networks, including the Internet.

E-business: refers to a broader def in ition of


EC, not just the buying and selling of goods
and services, but also servicing customers,
c o l l ab o rati n g w i th b u s i n e s s p ar tn e r s ,
c on du c ti n g e-l earn i n g, an d c on du c ti n g
electronic transactions within an organization.
The Four Major Functions of a Business

Every business, regardless of its


size, must perform four functions
to succeed. It must produce the
product or service; market and sell
the product; keep track of
accounting and financial
transactions; and perform basic
human resources tasks, such as
hiring and retaining employees.
E-Business
Automation of business
processes through electronic
means.

E-Business that includes a


financial transaction is known as e
-commerce.
E-business has been defined by IBM as
‘the transformation of key business
processes through the use of internet
technologies

E- business Includes:
• On-line marketing and sales
• Supply chain
• Channel management
• Manufacturing and inventory
control
• Financial operations
• Employee workflow procedures
E-business technologies empower:
• Employees
• Customers
• Suppliers
• Distributors
• Vendors
• partners
Benefits of E-Business

• Cost reduction – increased revenues


• Capability
• Communication
• Control and channel efficiency
• Visibility
• Customer service
• Competitive advantage
Barriers to E-Business

• E-business not relevant to some people


• Skills and expertise to use the internet
• Customers do not use e-business
• Country factor conditions
• Economic issues
• Culture
• Organizational type
Slide 2.12

Outline

• Introduction
• E-Business environment
• Marketplace analysis
• Intermediaries
• Business models
• Different approaches
Slide 2.3

E-business environment
Slide 2.4

Micro and Macro environment


• Micro:
• Customers
• Competitors
• Intermediarie
s
• Suppliers

• Macro:
• Society
• Legal
• Economic
• Technology
Slide 2.5

Marketplace (channel structures)


Slide 2.7

Changing distribution channels


Slide 2.8

Changing distribution channels 2


A- Intermediaries
• Is a third par ty that offers intermediation
services between two trading parties. The
intermediary acts as a channel for goods or
services offered by a supplier to a consumer.

• Typically the intermediary offers some added


value to the trans action that may not be
possible by direct trading.

• Common usage includes the insurance, and


financial services industry where e.g. mortgage
brokers , in s u ran ce broker, an d f in an cial
advisers
New channel structures
B. Distintermediation. Is there are an option for selling direct?
• Disintermediation is a process that provides a user or end consumer
with direct access to a product, service or information that would
otherwise require a mediator such as a wholesaler, lawyer or
salesperson.

C. Reintermediation.
• reintroduction of middlemen or intermediaries that had previously
been removed from a process or industry. new roles for traditional
intermediaries – amazon.com replacing retailers, search engines,
directories, portals.

D. Countermediation.
• Creation of a new intermediary by established company to compete via
e-business – airlines, grocery delivery, financial services (car sales)
Partner with new online or existing

1 intermediaries

Advantages
1. Low/no investment Disadavantages
2. Fast go to market 1. Lower revenues
3. Partner experience 2. No/less data on customers
share
3. Less integration with marketing
and communication
4. Fragmented user experience
Disintermediation
2

Advantages
1.Higher revenues
2.Full control on process
3.Customer data acquisition
4.Benefit for whole marketing
Disadavantages
process
5.Value creation 1.High complexity
6.Process and technology a.IT
optimisation b.Logistic
c.Customer service
2.Need investments
3.Need Structure and
organization
Create new online intermediary
(countermediation)
3
Advantages
1.Higher revenues
2.Full control on process
3.Customer data acquisition
4.Benefit for whole marketing
process
5.Value creation Disadavantages
6.Process and technology 1.High complexity
optimisation a.IT
7.Possible partnership with b.Logistic
compatible brands c.Customer service
8.Brand extention 2.Need investments
3.Need Structure and organization
Slide 2.10

Market places in e-business


• Virtual or electronic
marketplace
• Market place location models:
• Seller-controlled
• Seller-oriented
• Neutral
• Intermediaries
• Search engines
• Buyer-oriented
• Buyer-controlled
A. Seller-controlled sites are those that are
the main site of the supplier company which
are business enabled.

B. Seller-oriented sites are controlled by third


par ties on behalf of the s eller, but are
representing the seller rather than providing
a full range of options.
C. N e u t ra l s i t e s a r e i n d e p e n d e n t e v a l u a t o r
i nt e rm e d i ari e s that e nab l e p ri c e and p ro d uc t
comparison and will result in the purchase being
fulfilled on the target site
.
D. Buyer-oriented sites are controlled by third
parties on behalf of the buyer.

E. Buyer-controlled sites usually involve either


procurement posting on buyer-company sites or on
those of intermediaries that have been set up in
such a way that it is the buyer that initiates the
market- making.

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