1 dickson k.w. chiu phd, smieee (thanks to dr william cheung) comp7580: e-transformation in business...
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Dickson K.W. ChiuPhD, SMIEEE
(Thanks to Dr William Cheung)
COMP7580: E-Transformation in Business
1. Introduction: From Net Commerce to e-Enterprise and e-Government
Dickson Chiu 2008 COMP7580-Intro-2
Learning Objectives
To introduce e-Transformation in Business
To clarify different views of e-Commerce / e-Business
To understand the evolving aspects in different e-Transformation phases
To overview e-Enterprise and business process reengineering
To overview e-Government
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1.1 e-Transformation in Business
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Vending Machine On-line
What are transformed? How are they transformed? Why do they need to be transformed? Who will be affected in what ways?
Transforming a vending machine…
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e-Business – What are transformed?
Form of information and documents E.g., invoice, customer information, contract, product
catalog, company news, payment records, … Processes for managing, analyzing and using
them Functional perspective: accounting, sales and
marketing, production, design, human resource, … Organizational perspective: Operational, Knowledge,
Management and Strategy
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e-Business - How are they transformed?
Electronically, but more due to Internet and Web technologies
proprietary -> http, HTML, Web server, Web client and server programming
Perl, PHP, JSP, Java Bean, .Net, Apache, Tomcat, … A unified(?) way to represent information and
document for sharing and integration Data Schema, Database, Knowledge Representation
(Semantic Web) Oracle, MySQL, MS SQL Server, XML, RDF, OWL, …
A unified(?) way to represent software systems’ interface and business processes
Service-oriented computing, workflow representation and management
BEA Weblogic, RosettaNet, MS BizTalk, ebXML, …
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e-Business – Who will be affected in what ways?
Clients/Customers (e.g., personalized services) Cost: New experience (UI, security) Benefit: More competitive price, better
services/products, better after-sales support -> better “customer experience”
Company staff (e.g., decision support systems) Cost: New experience and operation (UI, security) Benefit: higher productivity, fast decision & response
Business partners (e.g., SCM systems) Cost: New interface and operation (UI, security & trust) Benefit: more efficient communication, easier to
establish business relationship dynamically, …
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e-Business – Why is the transformation needed
Stay competitive by value-adding … Operation Efficiency (for lowering the cost) Strategic Positioning (for raising the selling
price)
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e-Transformation in Other Sectors
What are transformed? How are they transformed? Why do they need to be transformed? Who will be affected in what ways?
Can you repeat the same exercisefor e-Government, e-Health?
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1.2 Different Views
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Limited Views on E-Commerce
Corporations Electronic data interchange (EDI)?
Electronic messages standard via a private network http://www.pharogen.com/edi.asp#whatis http://supplier.arvinmeritor.com/cvs_edi/ae/edi/TS830_E
xample_1.shtml (an example)
General public Buying and selling on the Web?
Association for Electronic Commerce Doing business electronically? Call Centers?
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An industry consortium at www.commerce.net Buying and selling information, products, and
services (e-Commerce) The use of inter-networked computers to
create and transform business relationships (e-Business and e-Enterprise)
Internally: transfer and share information through intranets to improve decision-making and eliminate duplication of effort
Externally: part from transactions, also built on building, sustaining, and improving relationships
CommerceNet’s Views
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The Scope of Net Commerce
Supply side material, repair, & operations (MRO)
procurement, and logistics manufacturing and distribution
Demand side order entry, catalog management and
customer care
=> Main Case Study of this course
Inter-organizational
“Internal”
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Vending Machine Again
e-Commerce: Payment e-Business:
Machine -> CocaCola warehouse for refill CRM for where to put the machine and what
to be sold Mobile payment solutions …
Transforming a vending machine
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1.3 Evolving aspects in different e-Transformation phases
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Net Commerce
4 phases of Net commerce*not a single step!
e-Transformation
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Evolving Aspects in e-Transformation
Business Models What is to be accomplished?
e-Application Categories How to accomplish… ?
e-Application Functionalities What is offered that helps to accomplish… ?
To support the vision and strategy of the company
A Web-based system has no value by itself if it is not developed with a strategic plan
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Brochureware
Business Model (B2C) Use the net as:
key medium for global marketing a low-cost repository of product and service
information static documents and simple multimedia
Customer interaction reading text view pictures
Transactions are performed over traditional means
Now, we still go the shops to buy most of our need…
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e-Commerce
Focus on consumer transactions and interactions over the Internet
Business Model buying and selling to consumers online (B2C)
Characterized by the .com mania - lots of new companies operating online content-aggregation business model - focus on consumer founder and situation driven
Some success factors Branding Marketing Personalization of service Creation of customer community
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e-Commerce Functionalities & Examples
e-Tailing and Consumer Portal (CDNOW): online catalogs, personalization, advertising, shopping
carts, and online communities Bidding and Auctioning (eBay):
online catalogs, bid boards, account management, and notification
Consumer Care and Management (e-Trade): personalization, self-service, immediacy, and information
Electronic Bill Payment (AT&T): bill consolidation, analysis and reporting, payment
processing, and integration
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e-Business Business Model
Focus on B2B applications over the Internet evolve from well-established brick-and-mortar
companies seeking process improvement Characterized by
focus on an organization’s core competencies process aggregation oriented business model process-driven; also technology-driven
Some success factors create and integrate the right processes agile applications ability to integrate applications and data right organizational structure Means of overcoming political obstacles
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e-Business Functionalities & Examples
Virtual Marketplace (Dell) Catalog, buying tools, integration, and payment
option, .. Procurement & Resource Management
(MasterCard) Request for info, request for proposal, requisitioning,
purchase orders, payment, and supplier management
Extended Value Chain (FedEx) Demand and supply planning, logistics, and
production planning Customer Relationship Management (HP)
Self-service, solution-center, personalization, and account management functionalities
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SCM vs ERP vs CRM
Supplier Manufacturer Customer
SupplyChainMgmt
Customer Relationship
Mgmt
Enterprise
Resources
Planning
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e-Enterprise (1)
Convergence of B2C and B2B functionalities for those who serve both market segments
New value chain “Click and Mortar” combining traditional bricks-and-mortar assets with
the efficiency of cybermediation Co-opetitive virtual organizations
Supply side: Procurement
of raw material
Demand side:
consumer retailing and
customer management
cybermediation
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e-Enterprise (2)
Complex combinations of internal and external business processes and relationships with …
Customers
Company A
Suppliers
Distributors
Partners Competitors
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Business Model (B2C + B2B) Based on people (role) aggregation
Applications Focused on mission-critical, inter-organizational
business processes CEO drives organizational changes Results come out via iterative and
methodological efforts using technology (as an enabler and as a commodity )
e-Enterprise (3)
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Value Proposition more than manufacturing techniques or prime location
outlets Speed and Agility
Gained by leveraging existing asset base through the Net Example 1, TimKin Corp. (bearings producer)
Self-service answers to customer about product availability and price (CRM) through linkage to the back-end inventory database -> 15 percent service reps moved to sales
Example 2, AutoNation (automobile dealership network) Use an on-line infrastructure to channel leads to its
physical infrastructure of nationwise dealership.
e-Enterprise (4)
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1.4 e-Enterprise and Business Process Reengineering
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Business Process Reengineering (BPR)
A radical reinvention of how corporations do their work.
Conventional BPR From business process automation to completely
reengineering all the processes (NOT to follow the old way of doing things).
Enabled by Web, XML, PKI, … One can shift focus from internal to external process Dynamic, real-time information sharing become
possible E.g., How about from document exchange via emails
(Push) to setting up VPN (Pull)? How about one-to-one marketing?
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Where to Begin?
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References
Faisal Hoque, Business Models, Architecture, and Components, Chapter 1, Cambridge University Press, 2000
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1.5 e-Government
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E-Government
E-government: The use of IT and e-commerce to provide access to government information and delivery of public services to citizens and business partners
Offers an opportunity to improve the efficiency and effectiveness of the functions of government and to make governments more transparent to citizens and businesses by providing access to more of the information generated by government
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Government-to-citizens (G2C)
E-government category that includes all the interactions between a government and its citizens
Major features of government Web sites: phone and address information links to other sites publications databases
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G2C (cont.)
Major areas of G2C activities: tourism and recreation research and education downloadable forms discovery of government services information about public policy advice about health and safety issues
Useful in solving constituents’ problems Netizen: A citizen surfing the Internet Electronic Benefits Transfer (EBT)
nationwide EBT system to deliver government benefits electronically
deliver benefits to recipients’ bank accounts smart card system for those without bank accounts
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Government-to-business (G2B)
E-government category that includes interactions between governments and businesses (government selling to businesses and providing them with services and businesses selling products and services to government)
Group purchasing eFAST service conducts reverse auctions for
aggregated orders Forward e-auctions
auction surplus or other goods Tax collection and management
electronic filing of taxes is now available in over 100 countries
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Other E-Government Modes
Government-to-government (G2G): e-Government category that includes activities within government units and those between governments
Government-to-employees (G2E): e-Government category that includes activities and services between government units and their employees
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E-Government Transformation Process
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Implementing Issues of e-Government
Transformation speed G2B implementation Security and privacy issues Wireless applications
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E-Government Adoption
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http://www.comp.hkbu.edu.hk/~eee05
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http://www.comp.hkbu.edu.hk/~ctr