Chapter One
Chapter One
Moving from
E-commerce to
E-business
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E-Business
E-Business
Why Study E-business?
Why Study E-business?
Promise:
Streamlined BusinessNetwork InfrastructureAdaptive Supply Chains

Process Automation
Lack of
Framework
Reality:
Blizzard of Buzzwords
Customers.com
CRM
ERP
Digital Economy
SCM

ERP
ERP
CRM
CRMProcurement
Procurement
Incompatible Projects
Resistance
to Changes
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E-Business
E-Business
Need for a Robust Framework
Need for a Robust Framework
E-business Course
Goals
Rationalize buzzwords
Recognize
commonalties across
business environments
Framework for
designing more
effective new systems
Provide a Managerial
Perspective
A set of basic principles

business needs?
Framework for Book
Framework for Book
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E-Business
E-Business
Table of Contents
Table of Contents
Ten Rules of E-business
Ten Rules of E-business
E-Business Success Stories
E-Business Success Stories
What does this mean for
What does this mean for
managers – Looking Deep
managers – Looking Deep
E-commerce vs. E-business?
E-commerce vs. E-business?
Key Take-Aways
Key Take-Aways
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E-Business
E-Business
E-commerce
E-commerce
Refers to selling of products and services over

E-commerce has evolved rapidly since 1995
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E-Business
E-Business
E-business
E-business
The back-office applications, systems or
processes that create goods and/or provide
services.
E-business includes:
–
Customer Relationship Management
–
Enterprise Resource Planning
–
Supply Chain Management
–
Human Resource Management Systems
–
And more . . .
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E-Business
E-Business
E-commerce vs. E-business
E-commerce vs. E-business
value added

Inputs
E-commerce
Products
Services
Labor & Capital
Customer
Feedback
for control
E-business
E-business
Network of activities
Flow Units
(Raw material,
people,
information,
etc.)
Resources
Process
Analysis & Management
E-business: All About Managing Business
E-business: All About Managing Business
Processes
Processes
A business process is a network of activities that
takes one or more inputs and creates an output
of value to customer
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E-Business

Ten Rules of E-business
E-business Success Stories
E-business Success Stories
What does this mean for
What does this mean for
managers – Looking Deep
managers – Looking Deep
E-commerce vs. E-business?
E-commerce vs. E-business?
Key Take-Aways
Key Take-Aways
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E-Business
E-Business
E-business is Changing All Industries
E-business is Changing All Industries
Communications
Communications
Utilities
UtilitiesHospitality
Hospitality
Automotive
Automotive
Financial
Financial

Visionary Firms and E-business
Visionary companies understand current business
designs are inadequate for doing business in the e-
commerce era
–
Can buy a $999 built-to-order PC from Dell online but not a
customized $3000 color copier from Xerox
–
Cisco can overhaul its product line every 2 years, but Kodak
cannot seem to deliver rapid innovations to meet changing
customer requirements
Visionary companies have integrated operations to
support changing customer requirements
–
E-customers’ needs, tastes, and expectations transforming
shape of the enterprise
Necessary: fusion of business designs, processes,
apps, and systems on an unprecedented scale
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E-Business
E-Business
Visionary Firms and E-business
Visionary Firms and E-business
Management at leading companies often ask:
–
How will ecommerce change our customer
priorities?
–

Organization-based
–
Capacities that are difficult to replicate and provide
abilities to master new technologies.
–
E.g., Cisco Systems
Let’s look at a few visionary companies….
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E-Business
E-Business
Founded in 1907 to become world’s largest express and
package delivery firm
–
13.2 million packages per day, 3 billion/year
–
344,000 employees; $29.8 billion revenue
–
11th largest airline; Largest cellular user in the world
Initially a laggard in use of IT. In 1980s and throughout
the 90s, spent billions of dollars putting in place
–
Tracking and tracing technology
–
Frontline handheld technology
–
E-commerce capabilities
–
Huge customer databases

–
Improved Customer Service (7x24 account status, real-time
order status)
–
More efficient, lower-cost sales cycle
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E-Business
E-Business
Cisco Systems
Cisco Systems
Most successful “New Economy” firm with
“Old Economy” discipline and operational excellence
Cisco has propagated IT throughout the organization, in
every major function
Significant investments in back office ERP ($30M) and
Internet/Intranet ($100M)
Almost $400M annual savings from use of technology
E-business use is a major competitive long-term strategy
for Cisco
Made it very difficult for slow-moving, traditional
companies (Lucent, Nortel) to catch up
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E-Business
E-Business
What Do Leading Firms Have in Common,
What Do Leading Firms Have in Common,

com
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E-Business
E-Business
Ten Rules of E-business
Ten Rules of E-business
Rule 1 Technology is no longer an afterthought in forming business
strategy, but the actual cause and driver
Rule 2 The ability to streamline the structure, influence, and control of
the flow of information is dramatically more powerful and cost-
effective than moving and manufacturing physical products
Rule 3 Inability to overthrow the dominant, outdated business design
often leads to business failure
Rule 4 E-commerce is enabling companies to listen to their
customers and become either “the cheapest,” “the most
familiar,” or “the best”
Rule 5 Don’t use technology just to create the product; use it to
innovate, entertain, and enhance the entire experience
surrounding the product, from selection and ordering to
receiving and service
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E-Business
E-Business
Ten Rules of E-business
Ten Rules of E-business
Rule 6 The business design of the future increasingly uses
reconfigurable e-business community models to best meet
customers’ needs

Most execs unaware of impact of these changes
–
Need to see business differently; maintaining status
quo not a viable option