What is e-business?

2 Agenda Regional Training Workshop for Enterprise Support Agencies to Promote E-business for SMEs in the Greater Mekong Subregion (GMS), June 2006, Bangkok E-business and e-commerce E-business concepts and dimensions Types of e-business Evolution of e-business Stakeholders and major players E-business framework

3 “It is not the strongest of the species that survive, nor the most intelligent, but the one most responsive to change” Charles Darwin “If you’re not changing faster than your environment, you are falling behind” Jack Welsh, CEO of GE Regional Training Workshop for Enterprise Support Agencies to Promote E-business for SMEs in the Greater Mekong Subregion (GMS), June 2006, Bangkok

4 Electronic business or e-business is the use of ICT to improve business (from the use of to facilitate administrative procedures in buying and selling through the Internet). Electronic commerce or e-commerce is where business transactions take place via electronic communication networks, especially the Internet. E-business and E-commerce Regional Training Workshop for Enterprise Support Agencies to Promote E-business for SMEs in the Greater Mekong Subregion (GMS), June 2006, Bangkok

5 The main difference between them is that e-commerce defines interaction between organizations and their customers, clients, or constituents. On the other hand, e-business is broader term that also encompasses an organization’s internal operations. Electronic commerce describes the buying and selling of products, services, and information via computer networks including the Internet, where e-Business describes the broadest definition of EC. It includes buying and selling of products and services, servicing customers, collaborating with business partners, and conducting other intra-business tasks. E-business vs. E-commerce Regional Training Workshop for Enterprise Support Agencies to Promote E-business for SMEs in the Greater Mekong Subregion (GMS), June 2006, Bangkok

6 Three alternative definitions of the relationship between e-business and e-commerce Regional Training Workshop for Enterprise Support Agencies to Promote E-business for SMEs in the Greater Mekong Subregion (GMS), June 2006, Bangkok E-business and e-commerce

7 E-Business concepts Regional Training Workshop for Enterprise Support Agencies to Promote E-business for SMEs in the Greater Mekong Subregion (GMS), June 2006, Bangkok E-business defined from the following perspectives: Communications: delivery of goods, services, information, or payments over computer networks or any other electronic means Commercial (trading): provides capability of buying and selling products, services, and information on the Internet and via other online services

8 E-Business concepts (cont.) Regional Training Workshop for Enterprise Support Agencies to Promote E-business for SMEs in the Greater Mekong Subregion (GMS), June 2006, Bangkok Business process: doing business electronically by completing business processes over electronic networks, thereby substituting information for physical business processes Service: a tool that addresses the desire of governments, firms, consumers, and management to cut service costs while improving the quality of customer service and increasing the speed of service delivery

9 E-Business concepts (cont.) Regional Training Workshop for Enterprise Support Agencies to Promote E-business for SMEs in the Greater Mekong Subregion (GMS), June 2006, Bangkok Learning: an enabler of online training and education in schools, universities, and other organizations, including businesses Collaborative: the framework for inter- and intra- organizational collaboration Community: provides a gathering place for community members to learn, transact, and collaborate

10 Source: Choi et al. (1997), p. 18. Dimensions of e-business/e-commerce Regional Training Workshop for Enterprise Support Agencies to Promote E-business for SMEs in the Greater Mekong Subregion (GMS), June 2006, Bangkok

11 Dimensions of e-business/e-commerce Regional Training Workshop for Enterprise Support Agencies to Promote E-business for SMEs in the Greater Mekong Subregion (GMS), June 2006, Bangkok Pure vs. Partial: based on the degree of digitization of: - Product - Process - Delivery agent Traditional commerce: all dimensions are physical Pure e-business: all dimensions are digital Partial e-business: all other possibilities include a mix of digital and physical dimensions

12 Business-to-business (B2B) Business that sells products or provides services to other businesses Business-to-consumer (B2C) Business that sells products or provides services to end-user consumers Consumer-to-consumer (C2C) Consumers sell directly to other consumers Types of e-business Regional Training Workshop for Enterprise Support Agencies to Promote E-business for SMEs in the Greater Mekong Subregion (GMS), June 2006, Bangkok

13 Business-to-government (B2G) Government buys or provides goods, services or information to/from businesses or individual citizens Business-to-employee (B2E) Information and services made available to employees online Mobile commerce (m-commerce) E-commerce transactions and activities conducted in a wireless environment Collaborative commerce (c-commerce) Individuals or groups communicate or collaborate online Types of e-business (cont.) Regional Training Workshop for Enterprise Support Agencies to Promote E-business for SMEs in the Greater Mekong Subregion (GMS), June 2006, Bangkok

14 Evolution of e-business Regional Training Workshop for Enterprise Support Agencies to Promote E-business for SMEs in the Greater Mekong Subregion (GMS), June 2006, Bangkok How it started Electronic data interchange (EDI) - electronically transfer routine documents (application enlarged pool of participating companies to include manufacturers, retailers, services) 1970s: innovations like electronic funds transfer (EFT) - funds routed electronically from one organization to another (limited to large corporations) 1990s: the Internet commercialized and users flocked to participate in the form of dot-coms, or Internet start-ups

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19 Traditional Purchasing Process Flow Source: ariba.com, February Regional Training Workshop for Enterprise Support Agencies to Promote E-business for SMEs in the Greater Mekong Subregion (GMS), June 2006, Bangkok

20 Evolution of e-business (cont.) Regional Training Workshop for Enterprise Support Agencies to Promote E-business for SMEs in the Greater Mekong Subregion (GMS), June 2006, Bangkok 1997: Introduction of a brand new phrase – e-business 1999: The emphasis of e-business shifted from B2C to B2B 2001: The emphasis shifted from B2B to B2E, c-commerce, e- government, e-learning, and m-commerce 2004: Total online shopping and transactions in the United States between $3 to $7 trillion E-business will undoubtedly continue to shift and change

21 Informate Interact Integrate Innovate Brochure-ware Order taking Order processing Business development Where do you want to Be and Go…. Levels of e-maturity Regional Training Workshop for Enterprise Support Agencies to Promote E-business for SMEs in the Greater Mekong Subregion (GMS), June 2006, Bangkok

22 Evolution of e-business (cont.) Regional Training Workshop for Enterprise Support Agencies to Promote E-business for SMEs in the Greater Mekong Subregion (GMS), June 2006, Bangkok The Future By 2008: Number of Internet users worldwide should reach 750 million 50 percent of Internet users will shop E-business growth will come more from: B2C, B2B, e-government, e-learning, B2E, c-commerce

23 Stakeholders Regional Training Workshop for Enterprise Support Agencies to Promote E-business for SMEs in the Greater Mekong Subregion (GMS), June 2006, Bangkok E-Business relationships are formed with the following types of stakeholders: Internal stakeholders: Management and staff Suppliers and manufactures Customers Intermediaries Financial institutions Web service providers Associations Web communities Etc.

24 Major Players Regional Training Workshop for Enterprise Support Agencies to Promote E-business for SMEs in the Greater Mekong Subregion (GMS), June 2006, Bangkok

25 Major business pressures Regional Training Workshop for Enterprise Support Agencies to Promote E-business for SMEs in the Greater Mekong Subregion (GMS), June 2006, Bangkok

26 E-business framework Regional Training Workshop for Enterprise Support Agencies to Promote E-business for SMEs in the Greater Mekong Subregion (GMS), June 2006, Bangkok E-Business does not affect an organization’s fundamental goals, rather it provides a new ways to achieve them: E-business adoption strategy and direction Vision must be communicated to all stakeholders The interaction among stakeholders Smaller network, more flexible organizations, shifting priorities and roles Information system and technology infrastructure Mechanism to improve, enrich, change, and deepen relationships with key stakeholders Culture Need to adapt the new way, will impact on rules, belief, norms, and behaviours

27 Q & A Conclusion Regional Training Workshop for Enterprise Support Agencies to Promote E-business for SMEs in the Greater Mekong Subregion (GMS), June 2006, Bangkok