E-Business: Intra-Business E-Commerce Chapter 6 E-Business: Intra-Business E-Commerce

Internal Communication Historically, paper Updating a paper procedures manual Outdated material Numerous misunderstandings Some legal actions B2Employee E-commerce Maintain online – Web site E-business more general than B2E Copyright © 2003, Addison-Wesley

Figure 6.1 Miami University’s online publications and policies. Copyright © 2003, Addison-Wesley

B2C vs. Intra-business E-commerce Consumer oriented B2C Revolutionary Aggressive and risky First movers Intra-business and B2B Evolutionary Methodical In business context Copyright © 2003, Addison-Wesley

Copyright © 2003, Addison-Wesley Figure 6.3 The value chain. The key to intra-business e-commerce is improving value chain efficiency. Copyright © 2003, Addison-Wesley

Figure 6.4 The value chain for a personal computer manufacturer. Copyright © 2003, Addison-Wesley

Figure 6.5 Each value chain process consists of sub-processes. Copyright © 2003, Addison-Wesley

Efficiency and Effectiveness Objective: reduce operating costs Efficiency gains Within individual processes Across the value chain Efficiency-based competitive advantage Hidden from public view Relatively easy to sustain Copyright © 2003, Addison-Wesley

Figure 6.6 The organizational pyramid. Before computers, companies organized along functional lines. Functional groups exchanged paperwork. Early computer applications supported a single function. Copyright © 2003, Addison-Wesley

Figure 6.7 A manual payroll system. Payroll was done manually until at least the late 1950s. Copyright © 2003, Addison-Wesley

Figure 6.8 Automating selected processes made payroll more efficient. Automate expensive processes first Compile payroll Prepare (print) paychecks Automate remaining manual processes next Record timesheets Objective—process optimization. Copyright © 2003, Addison-Wesley

Figure 6.9 Islands of automation. Other functional groups Sales Accounting Purchasing Inventory Production Independent fiefdoms Office political base Sub-optimization Copyright © 2003, Addison-Wesley

Figure 6.10 The competitive advantage model. Competition forced Information sharing Integration across value chain Including legacy applications Copyright © 2003, Addison-Wesley

Copyright © 2003, Addison-Wesley Incompatibilities Hardware, software, and data Data redundancy was a major problem Same data value on multiple files Independently maintained Values differed Data formats differed Solution – central database Copyright © 2003, Addison-Wesley

New Approaches to System Development Information system planning Elevated to strategic level Information technology infrastructure Basic blueprint for technology integration Enterprise data model (EDM) Business process reengineering Process improvements in context Problem – legacy applications Copyright © 2003, Addison-Wesley

Partitioning Order Entry Client Display online order form Display order acknowledgement Error-check form data Server Record order Read quantity on hand Access A/R Validate stock Check credit Either – Calculate taxes and total Copyright © 2003, Addison-Wesley

Figure 6.17 A two-tier client/server application. Maintenance problem Multiple copies of software on multiple clients Development problem Multiple client platforms Copyright © 2003, Addison-Wesley

Figure 6.18 A three-tier client/server application. Copyright © 2003, Addison-Wesley

Figure 6.19 Enterprise application integration. Objective: coordinate all applications, databases, and info technologies. Enterprise resource planning (ERP) Means of implementing the EAI principle Copyright © 2003, Addison-Wesley

Copyright © 2003, Addison-Wesley Virtual Value Chain Digital picture of value chain Coordinate and monitor processes Organizational (not local) efficiency Applications Fuel business process reengineering Mirror or replace physical processes Data mining Copyright © 2003, Addison-Wesley

Copyright © 2003, Addison-Wesley Web Services Application server software A server for middleware Scalable platform Application service provider (ASP) Intermediary that supplies applications Including mission-critical applications Management service provider (MSP) Intermediary that manages IT services Copyright © 2003, Addison-Wesley

Copyright © 2003, Addison-Wesley Corporate Intranets Private corporate network Uses standard Internet protocols TCP/IP HTML and HTTP Browser and Web server Internet and intranet differences Intranet is smaller in scope Intranet limited to organization’s employees Copyright © 2003, Addison-Wesley

Copyright © 2003, Addison-Wesley Figure 6.22 Encasing a legacy message in a TCP/IP wrapper allows a legacy application to communicate with the intranet. Company intranet Copyright © 2003, Addison-Wesley

Figure 6.23 Some examples of groupware. E-mail Scheduling and calendars Whiteboarding Chat rooms and bulletin boards Video conferencing Electronic meetings Document management Workflow management Collaborative writing Group decision support systems Copyright © 2003, Addison-Wesley

Figure 6.24 Typical enterprise portal services. Structured data management Unstructured data management Content management Information filtering Search capabilities Collaboration User administration Expense account management Ordering supplies Security Personalization Copyright © 2003, Addison-Wesley

Geographically Dispersed Value Chains Value chain more complex Options Secure private network Value added network Public network (e.g., Internet) Virtual private network Security Firewalls User identification Authentication Copyright © 2003, Addison-Wesley