© 2006 Pearson Education Canada Inc.5-1 Chapter 5 Electronic Business, Intranets, and Extranets PowerPoint Presentation Jack Van Deventer Ward M. Eagen

© 2006 Pearson Education Canada Inc.5-2 Chapter 5 Objectives E-Business/Commerce E-Business/Commerce Internet & Web Capabilities Internet & Web Capabilities Intranets & their Applications Intranets & their Applications Extranets & their Applications Extranets & their Applications Key e-commerce Applications Key e-commerce Applications Enterprise Portals Enterprise Portals Rules for Web Site Success Rules for Web Site Success

© 2006 Pearson Education Canada Inc.5-3 E-Business/Commerce

© 2006 Pearson Education Canada Inc.5-4 Internet and World Wide Web Capabilities Internet and World Wide Web Capabilities  Collaboration  Reduced transaction costs  Enhanced operational efficiency  Disintermediation  Cutting out the “middleman”  Reaching customers directly

© 2006 Pearson Education Canada Inc.5-5 Operations Management: Mesotec E-business may be the only means of reaching some customers, but that does not always require a Web site E-business may be the only means of reaching some customers, but that does not always require a Web site Mesotec of Quebec implemented an Intranet solution to foster collaboration internally and to link to customers’ extranet sites for orders Mesotec of Quebec implemented an Intranet solution to foster collaboration internally and to link to customers’ extranet sites for orders Mesotec uses Web-based EDI and saw an increase in sales of 40% within two years of installation of electronic business tools Mesotec uses Web-based EDI and saw an increase in sales of 40% within two years of installation of electronic business tools

© 2006 Pearson Education Canada Inc.5-6 Intranet Applications Intranet Applications  Training  Application integration  Enterprise Resource Planning (ERP)  Customer Relationship Management (CRM)  Sales Force Automation (SFA)  Online entry of information  Real-time access to information  Collaboration

© 2006 Pearson Education Canada Inc.5-7 Extranet Applications Extranet Applications  Supply Chain Management  Example: Dell Computers  Real-Time Access to Information  Example: CSX railroad  Collaboration  Example: Caterpillar

© 2006 Pearson Education Canada Inc.5-8 Enterprise Portals Enterprise Portals  Extranets for business partners  Access points (or front doors) by which a business partner accesses secured, proprietary information from an organization  Distribution Portals  Automate the business processes in selling products to multiple buyers  Procurement Portals  Automate the business processes that occur before, during, and after sales have been transacted  Trading Exchanges  Electronic marketplaces run by third-party vendors  Revenues are from commissions on transactions

© 2006 Pearson Education Canada Inc.5-9 Brief Case 1: Labatts Labatts launched an enterprise portal called “The Pub” to improve communication between employees and eliminate information silos Labatts launched an enterprise portal called “The Pub” to improve communication between employees and eliminate information silos It was a challenge to convince 3800 employees across the country that this was a better source of information than traditional meetings It was a challenge to convince 3800 employees across the country that this was a better source of information than traditional meetings Kiosks were installed that ran the Intranet like a wire service, key to its early acceptance Kiosks were installed that ran the Intranet like a wire service, key to its early acceptance Intranets are now used to improve workforce performance and link it to business value Intranets are now used to improve workforce performance and link it to business value

© 2006 Pearson Education Canada Inc.5-10 Brief Case 3: Webview 360.com Webview 360.com is a Manitoba-based company that provides a tool to view homes, condominiums, and commercial property through the Web Webview 360.com is a Manitoba-based company that provides a tool to view homes, condominiums, and commercial property through the Web Paul Schmitt, a real estate agent, found an ‘angel’ investor who funded its startup, and the company now offers franchises across North America Paul Schmitt, a real estate agent, found an ‘angel’ investor who funded its startup, and the company now offers franchises across North America Lessons learned: Listen carefully, always use a lawyer in contracts, and expect resistance to dot- coms in startup funding and when offering service Lessons learned: Listen carefully, always use a lawyer in contracts, and expect resistance to dot- coms in startup funding and when offering service

© 2006 Pearson Education Canada Inc.5-11 Final Case 1: BTO Auto Built-to-Order (BTO) Inc. in Santa Monica, California, plans to build custom cars on demand, outsourcing most aspects of construction and supplies and assembling each custom design Built-to-Order (BTO) Inc. in Santa Monica, California, plans to build custom cars on demand, outsourcing most aspects of construction and supplies and assembling each custom design The profit margin in the car industry is typically 3%, while BTO is expecting 15% The profit margin in the car industry is typically 3%, while BTO is expecting 15% The plan is to use standardized parts that can be customized, allowing BTO to be largely an assembler. It will be the Dell Computer of the auto industry The plan is to use standardized parts that can be customized, allowing BTO to be largely an assembler. It will be the Dell Computer of the auto industry

© 2006 Pearson Education Canada Inc.5-12 Formula for Electronic Commerce Success The Rules for Web Site Success The Rules for Web Site Success  1. Offer something unique  2. Web site must be aesthetically pleasing  3. Easy to use and fast  4. Motivate people to visit, stay, and return  5. Advertise your Web presence  6. Learn from your Web site