Introduction to e-Business Chapter 1

Learning outcomes Define the meaning and scope of e-business and e- commerce and their different elements Identify the main reasons for adoption of e-commerce and e-business, and barriers that may restrict the process Define the Internet as a communications medium for consumers and businesses Identify the business challenges of introducing e-business and e-commerce to an organization. 1/2/2012

Examples 1/2/2012

Examples 1/2/2012

Examples 1/2/2012

Examples 1/2/2012

What is e-Business? Definition by IBM and Chaffey (2009) The transformation of key business processes through the use of Internet technologies All electronically mediated information exchanges, both within an organization and with external stakeholders supporting the range of business processes Business concept : strategy and operations Business description: business that mainly operate online 1/2/2012

What is e-Business? Stakeholders – internal users, supplier, vendor, distributor, customers , etc. Business processes involved: purchase raw material, marketing, planning, stock checking, ordering, delivery, and many more. 1/2/2012

What is e-Commerce? Definition by Chaffey(2009) All electronically mediated information exchanges between an organization and its external stakeholders Buy side E-commerce transactions between a purchasing organization, its suppliers and partner Sell side E-commerce transactions between a supplier Organization and its customers 1/2/2012

What is e-Commerce? 1/2/2012

e-Business vs e-Commerce 1/2/2012

Drivers of consumer Internet adoption Content Customization Community Convenience Choice Cost reduction 1/2/2012

Barriers of consumer Internet adoption No perceived benefit Lack of trust Security problems Lack of skills Cost 1/2/2012

Drivers of e-Business adoption Cost efficiency increasing speed to get supplies increasing speed to deliver products reduced sales and purchasing costs reduced operating costs Competitiveness Customer demand improving the range and quality of products & services offered Avoid losing market share 1/2/2012

Drivers of e-Business adoption 1/2/2012

Barriers for e-Business adoption 1/2/2012

Internet Technology as a communication tool 1/2/2012

Internet Technology as a communication tool 1/2/2012

E-Business Challenges Read this articles and we will discuss it in the next class. http://www.intel.com/intelpress/chapter-book3.pdf http://www.ifp.uni- stuttgart.de/publications/phowo01/Reiss.pdf http://www.worldscibooks.com/etextbook/7097/709 7_chap01.pdf 1/2/2012

Summary Electronic Business – refers to how technology can benefit all internal processes and interactions with third parties. There are many drivers and barriers that trigger people to move towards this direction or the opposite. The success of the transformation requires clearly defined objectives, right culture for change, e-Business skills, partnership or networking, and organization structure and infrastructure. 1/2/2012

Activity 1 Instruction: Answer all the questions below, work in a group of 4. Define e-Business and e-Commerce. What are the differences? Identify three possible drivers for an offline flower shop to consider e-Business. Identify the possible barriers for customers to shop groceries online. Choose ONE article from slide 18, read it and outline the main challenges in e-Business. Elaborate your answer based on your understanding. 1/2/2012

References Chaffey, D., (2007, 2009), E-Business and e-Commerce Management, 3rd and 4th Edition, Prentice Hall Google Image, http://www.google.com accessed on 11 April 2011. 1/2/2012

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