11/05/99 1 eBusiness Overview

11/05/99 2 eBusiness - Definition eBusiness is a framework for seamless integration of critical business systems and their direct connection to key constituencies (customers, employees, suppliers and distributors) via the Web (Internet, Intranet and Extranet). As all key players - customers, employees, suppliers and distributors - are connected to the business systems and share the information they need, eBusiness actually transitions the traditional business processes to a new level with the ultimate focus on customers and Customer Relationship Management (CRM).

11/05/99 3 Four levels of engagement There are multiple models for e-business adoption, depending on level of involvement –Internet service & content providers (Yahoo!, iVillage): e-business both product and channel –Internet pure plays: delivering real products virtually (Amazon) –Mixed plays: Web is channel complementing brick- and-mortar outlets (Barnes & Noble) –Non-transactional e-business: key is automating other business processes besides sales

11/05/99 4 Two types of business scope Business-to-Consumer (B2C) –The media attention is here, especially where nature of product makes e-delivery a good fit –Early emphasis on transactions, often at the expense of other e- business opportunities Business-to-Business (B2B) –The biggest economic impact is and will be here –Looking for controlled evolution: need to build an integrated architecture to support transformed business model –Within B2B, firm-to-firm interactions (EDI, for example), are being matched or overtaken in importance by firm-to-individual interactions (FedEx). Many businesses report that Internet enables decision-making to shift from center to nodes, closer to source of needs.

11/05/99 5 Three meanings of e-business Despite heavy use, “e-business” lacks a single fixed meaning. Speaking clearly means understanding the customer’s dialect: –e-business is equivalent to e-commerce (among transaction-focused businesses) –e-business covers all business processes deployed onto the Internet (sales, marketing, R&D, etc.); e- commerce is a subset of e-business covering transactions where money changes hands (among business with more diverse e-applications) –e-business is a B-2-B function; e-commerce focuses on the consumer

11/05/99 6 Three strategic areas Emphasis here strongly determines the direction of the evolutionary path Focus on the Customer First generation: enable transactions; extend geographic reach; increase awareness Next generation: one-to-one marketing, Web self- service Focus on Supply Chain First generation: improving transaction efficiency Next generation: increasing supplier choice & efficiency; build seamless virtual enterprise Focus on Employees First generation: increase bandwidth to desktop; remote access Next generation: empower employees through flexible work arrangements; superior decision tools; creation of virtual teams

11/05/99 7 Customer focus: solution spaces Retail: –Use demographic knowledge to structure marketing, purchasing ; customize offers for individuals based on previous and predicted buying patterns Transportation: –Optimize scheduling; tailor fares Health Care: –compare effectiveness of treatments, devise prevention approaches

11/05/99 8 Supplier focus: solution spaces Today: efficiency transfer of volume data Next generation: Enabling rapid shifts when it comes to location of manufacture or delivery –increases flexibility –reduces costs –allows businesses to be more responsive to short-term shifts in customer demand Next generation: increasing disintermediation –using the Internet to bypass traditional distribution channels

11/05/99 9 E-business: Barriers In a word, security –Creating virtual enterprise by definition multiplies access points, and thus security risks –Security solutions have at least three dimensions access (do you have the right to log in?) authentication (are you who you say you are?) authorization (is this information you’re allowed to have?)

11/05/99 10 The Architecture Enterprise-wide integration Front-end to back-end integration The client-server based architectural models Distributed networked services Architectural issues -presentation, personalization, security, etc. The “Net”

11/05/99 11 The Technology The network resources Policy-based management Tools, languages, environments Standards Products and Vendors

11/05/99 12 The Competitive Landscape Markets Products Competitors Architectures: enterprise-wide integration Enabling Technologies

11/05/99 13 Thanks! Some of the materials in this section are from: “E-Biz Study” of The Taylor Research & Consulting Group, Inc.