E-Business is About Business

>>>>>>>> Business
Driving IT

E-Business

IT Driving
Business
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 s E -B u s i n e s s ?
W ha t i

•E-Business is about enabling organizations to

cohesively bring together their processes and Internet
technologies for cost effectiveness, efficiency and
better relationships between partners.

•E-Business is the electronic connection of business

operations to customers, suppliers, employees and
other partners. It includes, but not limited to, product
marketing, order entry, inventory tracking, order
fulfillment and after-sales support.
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e-Business vs e-
Commerce

E-Business:
Improving business
E-Commerce:
E-Commerce performance through low cost and
• marketing open connectivity:
• selling
• buying of products and • New technologies in the value chain
services on the Internet • Connecting value chains across businesses

in order to :

• Improve service/reduce costs

• Open new channels
• Transform competitive landscapes

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e-Business is more than selling and marketing online!
 e-Business vs
Business
Re- Re-
Assess Assess

‘Traditional’: Implement ‘E-Business’: Implement

Implementation Implementation
Planning Planning

Opportunity Opportunity
Analysis Analysis

Understand Business Understand Electronic Business

Traditional business organization Characteristics of an “Electronic Business

‘develop step by step’: journey”:
 Definitions are clear  Definitions of the future are ‘fuzzy’
 No change in the business and technology  Permanent and unpredictable change in the
environment business and technology environment
 High time pressure  Time to market and speed are major competitive factors
 Continuous learning  Continuous learning & fast adaptation is required
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E-Business is not a project - but rather a journey that requires vision and non-linear procedures
 t M ar k et
Ta rge

INTERNET USERS
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kashifroking@gmail.com 098084
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 f i nt ernet
ber o
Num
users
• China 300 million
• US207 million
• Japan 99 million
• India 81 million
India could have 500 million internet users, 100
million broadband connections and 100 million
connected devices by 2012, (Business
Standard

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 i lit i e s a n d
Capab s
E - B u si n es
Benefits of
• Global Reach. Goods and services can be sold to
customers worldwide.
• Personalization. Companies can customize products and
reduce inventory.
• Interactivity. Customers and suppliers can negotiate prices
online.
• Right-time and integrated marketing. Online retailers
provide products when and where customers want them and
promotions can be directed to individual customers.
• Cost savings. E-business can reduce costs.
• Lower Prices. Many products cost less online
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• Convenience. Can order
03620 products from around the world
 B u si n es s
Some E-
Successes

University of Phoenix
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Boston Symphony Orchestra
2000 - The Dot.Com
Bubble Bursts!
• The Demise of Dot Com Retailers. Weak financials, intense competition, and
investor flight will drive many of today's online retailers out of business in 2000. Those
that survive must refocus funding on building hard assets to achieve scale, service,
and speed.
• Wall Street will run out of patience. Financial markets exasperated with non-
existent online profits will turn a deaf ear to persistent "investment mode" rhetoric and
soundly punish merchants who bleed red ink. Recent stock disasters like Value
America and eToys -- whose market caps as of January 11, 2000, are down $3.1
billion and $7.7 billion respectively from 1999 highs -- serve as bad omens for online
stores that lack a unique approach or technology.
• The revenge of the brick-and-mortars will begin. The narrowing of the playing field
in 2000 will rationalize but not resolve online retail competition. It will usher in a new
era characterized by a few large players that exploit deep customer relationships and
a presence across multiple channels to entrench themselves. To measure their
success, these firms will ditch new economy platitudes in favor of unfashionable old
metrics like margins, profits, and customer retention costs.

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Forrester Research, 1999/2000
Valuations Plummet
Amazon.com - AMZN Pets.com - IPET

Priceline.com - PCLN eBay.com - eBay

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 Lessons Learned
• Fundamentals important, bottom line important
• Traditional bricks and mortar assets can represent
significant competitive strengths
– logistics, inventory, distribution
– choice in terms of customer access
– strength and brand
• e-Business becomes an element of overall
business strategy - not the total business strategy
• e-Business still widely seen as a way of
transforming business operations and thinking
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 ‘Bricks and Clicks’ -
A Hybrid Model

Traditional Pure Web - Dot.com

“Bricks and Mortar” “Clicks”

Combines strengths Hybrid

from traditional and
pure Web approaches
“Bricks and Clicks”
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Emergence of the
Hybrid Strategy

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 i n to d ay's
f o r C EO's
con cerns e n t a r e:
Top s en v i r onm
busines

• the threat posed by competitors;

• controlling costs;
• finding new opportunities; and
• improving responsiveness;
• better customer focus and service

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Solution

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 www.wikipedia.com
Forrester Research, 1999/2000

(Business Standard)

http://www.CheshireHenbury.com
India today

Google Book
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