Strategic Planning Business Strategy Technology Strategy Therefore, MIS folks must understand business, and Management must understand MIS

Economic Effects of IT IT Capital Cost Labor Production function Q =1000 Q2 Q1 Cost Size Transaction cost T1 T2 Size Agency administration cost Cost A1 A2

eBusiness: Trends and Definitions “In the short run, all change is overestimated, but in the long run, the effects of change are always underestimated.” (Arthur C. Clarke)

Time to Reach 50Mil People Years

Facts and Figures Online Purchases $Billion B2B: 80%

Common Failure % Success and Failure Rates of etail and Dotcom companies

Book Value:Market Value WHY???

Definitions Internet Intranet Extranet World Wide Web Packet-Switching

What is the Internet? Company Network YOU Packet Switching Network Customer/ Supplier Network EDI Intranet Internet Extranet Customer/ Supplier Network Customer/ Supplier Network

eBusiness Myths Everyone is Doing It! It’s Easy! It’s Cheap! It’s Lucrative! The Internet Levels the Playing Field Intermediaries Go Away

eBusiness Myths Mass Marketing is Over It’s the Domain of Computers Product Commoditization is Key It’s a Fad (the NASDAQ collapse proves it!) It’s ordering on the Web (B2C) One World, One Web

Nine eBusiness Rules 1. Technology is now a driver of business strategy 2. Controlling information flows is more powerful than controlling product flows 3. Inability to overthrow outdated business designs leads to failure

Nine eBusiness Rules 4. New business designs must create flexibility 5. eBusiness enables organizations to listen to customers 6. Use technology to innovate and enhance the product experience

Nine eBusiness Rules 7. Reconfigurable ebusiness communities will be used to meet customer needs 8. Strong leadership is imperative! 9. Long-Term Success is a thing of the past (adapted from Kalakota and Robinson, 1999)

eBusiness Trends Increased Speed of Service Self-Service Integrated Solutions Sales and Service Convergence Ease of Use

eBusiness Trends Flexible Fulfillment Effective Outsourcing Process Visibility

eBusiness Trends Integration, Integration, Integration!

Trend Commonalities Efficiency Effectiveness Relationship Management Integration Opportunities for Creativity!

Traditional vs New Economy TraditionalNew Economy OrganizationPyramidNetwork StrategyPredictInvent StyleStructuredFlexible ManagementRegulatorsCoordinators ProductsMass ProductionMass Customization Innovation Customer Complaints Market Opportunities

Traditional vs New Economy TraditionalNew Economy FinancialsQuarterlyRealtime InventoriesMonthsHours StrategyTop-DownBottom-Up LeadershipDogmaticInspirational MotivationTo CompeteTo Build ImprovementsIncrementalRevolutionary QualityAffordable BestNo Compromise (Adapted from BusinessWeek, Aug.21, 2000)

Definitions B2C (Amazon) B2B (Freemarkets) C2B (Priceline) C2C (eBay, eBid, Napster) B2E (Mellon) E2E G2B, B2G, C2G

OODA Observe Orient Decide Act

What Really Is eBusiness??

eBusiness vs eCommerce eCommerce: "Buying and selling over digital media“ eBusiness: "e-Business is the complex fusion of business processes, enterprise applications, and organizational structure necessary to create a high-performance business model." (Kalakota and Robinson, 1999)

The Dimensions of E-Commerce Source: Choi et al. (1997), p. 18.

eBusiness Opportunities Supply Chain Efficiency  Decreased Overhead  Reduced Transaction Costs  Market Efficiencies  Increased Inventory Turns  New Markets  Increased Revenues

eBusiness Opportunities Better Customer Experiences  Community  Customization  Personalization  Entertainment  Access

eBusiness Opportunities Efficient Markets  Perfect Information  Economic Efficiency  Elimination of Boundaries  Reduced Transaction Costs

eBusiness Is: Supply Chain Integration Suppliers Customers E R P The Organization InternetExtranet EDI Intranet

Web Pages “Stickiness” Design Technical Aspects Local vs Global

Visibility Identification of materials as they move through the system Visibility of suppliers’ production processes Visibility through to the customer Identification of where the information is!

Leadership Traits Passion  Make the dream clear Speed  Stay ahead of the curve Humility  You must be willing to explain yourself Discovery  The future path must be defined (Citrin & Neff, 2000)

Leadership Capabilities Lead By Example Develop Solid Business Strategies Build Great Management Teams Inspire Employees Flexibility and Proactive Management Reward Performance (Citrin & Neff, 2000)

New Leadership Capabilities Obsessive Focus on Customers Build Cross-Functional Organizations Manage with a Business Model (not a Strategic Plan) Promote the Business Model Foster Risk-Takers in the Company Work Extremely Hard (Citrin & Neff, 2000)

The eBusiness Panorama Channel Enhancement Value-Chain Integration Industry Transformation Convergence Leverage of eBusiness Business Value (Deise et al, 2000)