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Moving Towards E-Business As Usual

Moving Towards E-Business As Usual discusses key concepts related to e-business and information systems. It describes how (1) businesses operate through interconnected systems and subsystems, with processes that cross functional areas to create value for customers. It also explains how (2) business professionals are involved in all phases of building and maintaining information systems, from initiation to ongoing operation. Additionally, it outlines how (3) technological advances can drive business innovation but also notes (4) obstacles like unrealistic expectations, difficulty integrating systems, and overcoming organizational inertia when applying IT in practice.

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Muhammad Wasif
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34 views

Moving Towards E-Business As Usual

Moving Towards E-Business As Usual discusses key concepts related to e-business and information systems. It describes how (1) businesses operate through interconnected systems and subsystems, with processes that cross functional areas to create value for customers. It also explains how (2) business professionals are involved in all phases of building and maintaining information systems, from initiation to ongoing operation. Additionally, it outlines how (3) technological advances can drive business innovation but also notes (4) obstacles like unrealistic expectations, difficulty integrating systems, and overcoming organizational inertia when applying IT in practice.

Uploaded by

Muhammad Wasif
Copyright
© Attribution Non-Commercial (BY-NC)
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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Moving Towards E-Business As Usual

Opening Case - Dell Computer

Business insight:

Sell directly to customers

Decide how much to produce based on demand estimates & contracts produce on demand

What makes this approach possible?

Outsourcing

Negative holding costs! Powerful order fulfillment system

Mass customization

Work Systems, Information Systems, and E-Business

E-business = the practice of performing &


coordinating business processes through the extensive use of information technology (IT)

IT = computer and communication technologies E-business does NOT equal the Internet, though the growth of the Internet acted as a very powerful catalyst

Work System = a system in which people


and/or machines perform a business process using resources (e.g., information, technology) to create products/services for internal or external customers

Information System = a work system that


processes information, thereby supporting other work systems

Capture Transmit Store Retrieve Manipulate Display

Four Main Themes:

Businesses operate through systems Business professionals are part of all phases of building & maintaining information systems Technological advances drive business innovation The success of IT-based systems is NOT guaranteed

1. Businesses Operate Through Systems

Systems & Subsystems


System = a set of interacting components


that operate together to accomplish a purpose

Subsystem = a system component

Has all the features of a system, but it is part of a larger system

Figure 1.2

System Terminology:

Purpose

The reason for the systems existence The reference for measuring the systems success Separates the system from its environment
Everything pertinent to the system that is outside the boundary

Boundary

Environment

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Inputs

Objects & information that enter the system from the environment
Objects & information that enter the environment from the system

Outputs

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Figure 1.1

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Business Processes & the Value Chain

Business process

A related group of steps (subprocesses) and/or activities that use resources (including information) to create value for internal or external customers Subprocess = a well-defined part of a process

Activity = less well-defined process component Often an important role of IT is to transform an activity into a better-defined subprocess
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A process must add value for its customers Always analyze whether a process or subprocess adds value or not

An obvious but surprisingly often overlooked point

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Business Processes & Functional Areas

Traditional organizational structure is centered around functional areas

May reinforce an inward-looking orientation

Functional silos

Current trend: reorganize around customer-

oriented processes

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Three Types of Processes

Processes that cross functional areas Processes related to a specific functional area Activities & subprocesses occurring in every functional area

Possible problems when functional areas are overemphasized

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The Value Chain

The set of processes used by a firm to create value for its customers. Includes: Primary processes directly create the value as
perceived by the customers

Support processes indirectly create value by


supporting the primary processes

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Figure 1.4

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The Supply Chain & the Customer Experience (Fig. 1.5)

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Supply chain the transactions, coordination, and movement of goods between the firm and its suppliers Each layer provides an opportunity to increase value to the customer and/or improve efficiency

Basic approach:

Standardized electronic links Long-term agreements

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The Trend Toward E-Business

Much more than a cool Web site! E-commerce the part of e-business that the customer experiences directly B2B (business-to-business) vs. B2C (businessto-consumer)

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2. Phases in Building & Maintaining Systems

Figure 1.7 Business Professionals Play an Important Role in All 4 Phases

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1. Initiation

Defining the need for a new work system or for the change of an existing one May occur as result of a known problem, or as part of a planning process

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2. Development

Acquiring & configuring hardware, software, and other resources

Decide how the different parts of the system will operate Acquire the resources Create the documentation Testing

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3. Implementation

Making the new process operational

Planning User training Conversion to the new system Follow-up

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4. Operation & Maintenance

Supporting the ongoing operation of the system + efforts to enhance it and correct possible problems

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Table 1.4

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3. IT As a Driving Force for Innovation

Main Trends

Greater miniaturization, speed, and portability Greater connectivity + continuing convergence of computing and communications Greater use of digitized information & multimedia Better software and user interfaces

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4. Obstacles When Applying IT in the Real World

Unrealistic Expectations & Technohype

Technology is almost never a solution by itself

Often vendors claim to sell solutions

Be skeptical about the Internet hype

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Difficulty Building & Modifying IT Systems

Factors most often associated with success:

User involvement Executive support Clear statement of requirements Proper planning Realistic expectations

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Difficulty Integrating IT Systems

One of the most difficult issues examples:

Medicares insurance claims (aborted) system A unified system would have had to integrate 72
existing systems, built & operated by different insurance companies

Y2K problem

Integrated supply chains

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Organizational Inertia

Often a change that has a positive impact in some areas, may also have a negative impact in other areas Natural tendency of both organizations & individuals to resist change Overcoming inertia may require a consistent effort across all phases of the system life cycle

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Genuine Difficulty Anticipating What Will Happen

No one really knows how a particular innovation will develop in time Eye-opening examples in table 1.7

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