Page 1 From E-Commerce to E-Business

Page 2 Table1.1 The Rules of e-Business Rule1 Technology is no longer an afterthought in forming business strategy, but the actual cause and driver. Rule2 The ability to streamline the structure, influence, and control of the flow of information is dramatically more powerful and cost-effective than moving and manufacturing physical products. Rule3 Inability to overthrow the dominant,outdated business design often leads to business failure.

Page 3 Table1.1 The Rules of e-Business(Cont.) Rule4 The goal of new business designs is to create flexible outsourcing alliances between companies that not only off-load costs, but also make customers ecstatic. Rule5 e-Commerce is enabling companies to listen to their customers and become either”the cheapest,” ”the most familiar,” or “the best.” Rule6 Don’t use technology just to create the product. Use technology to innovate, entertain, and enhance the entire experience surrounding the product, from selection and ordering to receiving and service.

Page 4 Table1.1 The Rules of e-Business(Cont.) Rule7 The business design of the future increasingly uses reconfigurable e-business community models to best meet customers’ needs. Rule8 The tough task for management is to align business strategies, processes, and applications fast, right, and all at once. Strong leadership is imperative.

Page 5 Linking Today’s Business with Tomorrow’s Technology Rule1 Technology is no longer an afterthought in forming business strategy, but the actual cause and driver.

Page 6 e-Business= Structural Transformation Rule2 The ability to streamline the structure, influence, and control of the flow of information is dramatically more powerful and cost-effective than moving and manufacturing physical products. Transformation Stakes Are Very High Rule3 Inability to overthrow the dominant,outdated business design often leads to business failure.

Page 7 e-Business Requires Flexible Business Designs Rule4 The goal of new business designs is to create flexible outsourcing alliances between companies that not only off-load costs, but also make customers ecstatic. Value Chain Disaggregation and Reaggregation -Disaggregation allows firms to separate the means (products) from the ends (customer needs). -Reaggregation enables business to create a configuration that streamlines the entire value chain.

Page 8 e-Business Requires Flexible Business Designs The Road Ahead: Steps to a New Beginning 1.Challenge traditional definitions of value. 2.Define value in terms of the whole customer experience. 3.Engineer the end-to-end value stream. 4.Integrate, integrate, and integrate some more. Create a new technoenterprise foundation that is customer-centric. 5.Create a new generation of leaders who understand how to create the digital future by design, not by accident.

Page 9 Challenge Traditional Definitions of Value. ‧ Speed ‧ Convenience ‧ Personalization ‧ Price ‧ Example: Domino’s Pissz, Dell, Amazon

Page 10 Challenge Traditional Definitions of Value. E-Commerce is Changing the Notion of Value ． Value innovation across speed, convenience, personalization, and price has accelerated due to Web and e-Commerce Rule5 e-Commerce is enabling companies to listen to their customers and become either”the cheapest,” ”the most familiar,” or “the best.” –Wal-Mart’s”Every Day low Prices”: cheapest –McDonald’s: the most familiar: –Return Protection Plan of American Express: being the best by reinventing service processes, and raising relationships (refund within 90 days)

Page 11 Define Value in Terms of the Whole Customer Experience Rule6 Don’t use technology just to create the product. Use technology to innovate, entertain, and enhance the entire experience surrounding the product, from selection and ordering to receiving and service. The Case of Microsoft: Creating New Holistic Experiences - Informediaries: Expedia (travelers), CarPoint (auto info), Microsoft Investor (help investors research), and HomeAdvisor (facilitates the home buying)

Page 12 E-Business communities: Engineering the End-to-End Value Stream Engineering the entire end-to-end value stream Rule7 The business design of the future increasingly uses reconfigurable e-business community models to best meet customers’ needs. E-Business Car Community: Creating the Dealership Network of the Future (Auto-by-tel)

Page 13 Integrate, Integrate, Integrate: Create the New Techno-Enterprise Most firms don’t have integrated infrastructures. And the inefficiencies, inaccuracies, and inflexibilities of information technology systems within corporations need no introduction. Are You Ready for e-Business Integration?

Page 14 Integrate, Integrate, Integrate: Create the New Techno-Enterprise(Cont.) The New Priority: e-Business Execution Framework ‧ Provide a structure for defining, communicating, and monitoring new realities. ‧ Redesign core business processes to align with new organizational vision. ‧ Enable IT infrastructure to support change, innovation, and business goals.

Page 15 Needed: A New Generation of e-Business Leaders Although spending on technology has reached record levels, these executives continue to put their businesses at risk by not aligning processes with technology. Rule8 The tough task for management is to align business strategies, processes, and applications fast, right, and all at once. Strong leadership is imperative.