1-1-1 King Fahd University of Petroleum & Minerals College of Computer Science & Engineering Department of Computer Engineering Short Course on E-Business: Strategies, Processes and Technologies Iftikhar Nadeem Senior Consultant, E-Business Solutions Center for Economics & Management Systems Research Institute, KFUPM

1-1-2 Introduction Major Industry Trends E-Business Drivers and Responses What is eBusiness? E-Business Networks E-Government E-Marketplaces E-Business issues and Success Factors E-Readiness E-Business: the Case of Saudi Arabia

1-1-3 Market Value of an Organization Tangible Assets Buildings Equipment Furniture Cash Intangible Assets Skills & competencies Motivation of employees Databases Information technologies Efficient & responsive processes Customer loyalty & relationships Value of tangible assets 1982: 62% 1992: 38% 2000: 10-15% Source: Brookings Institute

1-1-4 Major Industry trends Consumer trends Service/process trends Organizational trends Enterprise technology trends

1-1-5 Consumer Trends Speed of service Self-service Integrated solutions, not piecemeal products

1-1-6 Service/Process Trends Convergence of sales & service: customization and integration Ease of use: make service consistent and reliable Flexible fulfillment and convenient service delivery: streamline your supply chain

1-1-7 Organizational Trends Contract manufacturing: becoming brand intensive, not capital intensive Retain the core, outsource the rest: Business process outsourcing Increasing process transparency and visibility Continuous innovation and employee retention

1-1-8 Enterprise Technology Trends Enterprise applications: Connect the corporation Infrastructure convergence: Increasing melding of voice, data and video Multichannel integration: computer telephony integration and voice recognition Wireless applications enter the mainstream Leveraging legacy investment: The rise of middleware for systems integration

1-1-9 Business Drivers of the New Economy Global financial interdependence Deregulation Unrestricted capital flows Digitization Global communication and transportation New geopolitical realities

Key Business Challenges Agility and Speed Focus on core competencies and processes Customer centrality Mass customization Flexible IT architecture Interoperability of infrastructure and applications portfolios

New Business Models and Structures Aggregators Portals Info-mediaries E-tailers Hybrids Virtually integrated Mega-mergers

E-Business is About Business IT Driving Business Driving IT E-Business

Major Benefits of eBusiness Global reach Reduced cost Convenience Higher productivity and efficiency

E-Business E-Business is about enabling organizations to cohesively bring together their processes and Internet technologies for cost effectiveness, efficiency and better relationships between partners.

E-Business E-Business is the electronic connection of business operations to customers, suppliers, employees and other partners. It includes, but not limited to, product marketing, order entry, inventory tracking, order fulfillment and after-sales support.

E-Commerce E-Commerce has a narrower definition and only involves buying and selling goods and services over the Internet. It is normally limited to catalogs, order entry, authorization and delivery confirmation.

The E-Business Network Intranet and Extranet E-Business Network Networking Vendors Network Software Network Hardware Enabling Technology E-Commerce Applications

eBusiness: Technologies and Skills Web technologies Database technologies Integration technologies Networking technologies Security technologies CIW Tracks: –Designer –Developer –Administrator

What is Important in an E-Business Network? Functionality Reliability Security Speed Scalability Access Control

Why Does an E-Business Network Matter to a User? To share knowledge and reap productivity gains by finding information faster To communicate faster with clients and suppliers To provide options for teleworking To implement web services To enable teams to work collaboratively irrespective of geography To better automate business procedures

Why Does an E-Business Network Matter to an Enterprise? To create fundamental changes in business processes To enable fast responses and agile maneuvering To negotiate more effectively with suppliers To create competitive advantage To provide instant access to global markets To lower costs To enable the convergence of voice, data and video To use the e-business as a key to business operations

CEOs are Focusing on These E-Business Issues Building customer loyalty Achieving market leadership Streamlining business processes Creating new products/services Ascertaining compliance Reaching new markets

E-Business Best Practices Personalize relations Maintain visitor privacy Make your site easy to use Manage visitor perceptions Maintain site consistency Manage business knowledge Response quickly

Tech Trigger Peak of expectation Disillusionment Enlightenment True E-business WWW Dot Com Visibility Source: Gartner Group E-Business Hype Cycle

Worldwide IT Spending Growth (New Scenario) % Source: IDC, October 18, 2001

Global E-Readiness It describes the extent to which a country’s business environment is conducive to Internet-based commercial opportunities EIU E-Readiness Assessment Model 2001 –Connectivity (30%) –Business Environment (20%) –E-Commerce Adoption (20%) –Legal Environment (15%) –Supporting E-Services (10%) –Social and Cultural Environment (5%)

Grouping of Countries by E-readiness Ranking E-business leadersE-business contenders E-business followers E-business laggards US (8.73) Australia UK Canada Norway Sweden Singapore Finland Denmark Netherlands Switzerland Germany Hong Kong (7.45) Ireland (7.28) France Austria Taiwan Japan Belgium New Zealand South Korea Italy Israel Spain Portugal (6.21) Greece Czech Republic Hungary Chile Poland Argentina Slovakia Malaysia Mexico South Africa Brazil Turkey Colombia Philippines Egypt (3.88) Peru Russia Sri Lanka Saudi Arabia (3.80) India Thailand Venezuela Bulgaria (3.38) China Ecuador Iran Romania Ukraine Algeria Indonesia Nigeria Kazakhstan Vietnam Azerbaijan Pakistan (2.66). Source: The Economist Intelligent Unit, 2001

Internet Subscribers in the Arab Region Source: Ajeeb.Com

eBusiness: The case of Saudi Arabia Strengths Weaknesses Opportunities Threats Largest Arab economy Free market mindset Large trading community Good teledensity Hi growth in PC penetration Modern infrastructure Low Low Lack of local IT professionals High Internet access cost High implementation cost Lack of legal environment Arabization of content Telcom operator monopoly Regional initiatives WTO (if not prepared) Cultural backlashes Internet (if not...) Regional economic integration Reduction in overhead costs Expanding markets Trade barriers coming down

Conclusions E-Business is about business. IT deployment decisions are business/investment decisions. IT investments make well-managed companies better, and poorly-managed companies worse.