Skills for a Sustainable Business Enterprise E-BUSINESS AND THE NEW ECONOMY

Disruptive technologies – examples: Railways Cars Radio Television Telephone Air Travel … DISRUPTIVE TECHNOLOGIES

All of them have challenged business to change and adapt to expanding markets; Goods and services and information available at increasing speed and lower costs; Internet (!) DISRUPTIVE TECHNOLOGIES

If canal boats are supplanted by railroads, serious unemployment will result; Boat builders and other trades will suffer; Canal boats are essential for the defence of the US in the event of the expected trouble with England; Railroad carriages are pulled at breakneck speeds of 15mph, which the Almighty never intended people should travel; Government should preserve canals from the evils of the railroad. Governor of New York, 31 January 1829 LETTER TO THE PRESIDENT

E-BUSINESS The electronic connection of business operation to customers, suppliers and partners. Removed traditional boundaries of time and geography. Business can be conducted more quickly.

E-COMMERCE E-commerce means conducting business electronically to provide goods, information and services using Internet technologies; Focus is on online trading; Buying and selling of goods and services over the Internet.

Pre-internet technology EDI – electronic data interchange Used by e.g. automotive components suppliers EFT – electronic funds transfer Transfer of payments to/from suppliers and customers

Simplicity It is relatively easy for forms to become E-enabled. Speed E-commerce enables the rapid exchange of information between buyer and seller. Change E-business will encourage supply chain integration.

Opportunities for E-business Access to new markets Website Cost saving on marketing Reduced supply chain costs

Risks of not doing E-business are related to a fact that E-business allows: Increased consumer information on products, price and availability. Enables comparisons to be made easily for purchasing decisions. Opportunity to source supplies at lower cost or better service. Customers will not find a business without and Internet presence

Internet Opportunities Customers are changing their behaviour, spending more time on the Internet and less on television and other activities. This will drive corporate focus on investment but to capitalise the Internet industry needs to demonstrate: integrity, honesty, effective organisation.

Identified by common search engines (Google) and therefore easy to access; Looks good and is easy to use; Good integration with all company systems; Easy to update by company staff; Produces company records which can be audited; WHAT MAKES A GOOD WEBSITE?

Can interact with visitors to the site; Can be controlled and maintained by SME owner not developer; Incorporates security features for financial transactions; Has an interactive form for transactions to encourage visitors to purchase; Does not take too long to load pictures and items in use. WHAT MAKES A GOOD WEBSITE?

SELF STUDY TASK: How has e-business and e-commerce changed/affected the travel industry? What examples of e-business and e-commerce can you find in this industry? Prepare 1 page A4 report