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Strategic Planning Business Strategy Technology Strategy Therefore, MIS folks must understand business, and Management must understand MIS
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Economic Effects of IT IT Capital Cost Labor Production function Q =1000 Q2 Q1 Cost Size Transaction cost T1 T2 Size Agency administration cost Cost A1 A2
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eBusiness: Trends and Definitions “In the short run, all change is overestimated, but in the long run, the effects of change are always underestimated.” (Arthur C. Clarke)
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Time to Reach 50Mil People Years
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Facts and Figures Online Purchases $Billion B2B: 80%
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Common Failure % Success and Failure Rates of etail and Dotcom companies
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Book Value:Market Value WHY???
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Definitions Internet Intranet Extranet World Wide Web Packet-Switching
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What is the Internet? Company Network YOU Packet Switching Network Customer/ Supplier Network EDI Intranet Internet Extranet Customer/ Supplier Network Customer/ Supplier Network
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eBusiness Myths Everyone is Doing It! It’s Easy! It’s Cheap! It’s Lucrative! The Internet Levels the Playing Field Intermediaries Go Away
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eBusiness Myths Mass Marketing is Over It’s the Domain of Computers Product Commoditization is Key It’s a Fad (the NASDAQ collapse proves it!) It’s ordering on the Web (B2C) One World, One Web
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Nine eBusiness Rules 1. Technology is now a driver of business strategy 2. Controlling information flows is more powerful than controlling product flows 3. Inability to overthrow outdated business designs leads to failure
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Nine eBusiness Rules 4. New business designs must create flexibility 5. eBusiness enables organizations to listen to customers 6. Use technology to innovate and enhance the product experience
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Nine eBusiness Rules 7. Reconfigurable ebusiness communities will be used to meet customer needs 8. Strong leadership is imperative! 9. Long-Term Success is a thing of the past (adapted from Kalakota and Robinson, 1999)
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eBusiness Trends Increased Speed of Service Self-Service Integrated Solutions Sales and Service Convergence Ease of Use
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eBusiness Trends Flexible Fulfillment Effective Outsourcing Process Visibility
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eBusiness Trends Integration, Integration, Integration!
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Trend Commonalities Efficiency Effectiveness Relationship Management Integration Opportunities for Creativity!
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Traditional vs New Economy TraditionalNew Economy OrganizationPyramidNetwork StrategyPredictInvent StyleStructuredFlexible ManagementRegulatorsCoordinators ProductsMass ProductionMass Customization Innovation Customer Complaints Market Opportunities
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Traditional vs New Economy TraditionalNew Economy FinancialsQuarterlyRealtime InventoriesMonthsHours StrategyTop-DownBottom-Up LeadershipDogmaticInspirational MotivationTo CompeteTo Build ImprovementsIncrementalRevolutionary QualityAffordable BestNo Compromise (Adapted from BusinessWeek, Aug.21, 2000)
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Definitions B2C (Amazon) B2B (Freemarkets) C2B (Priceline) C2C (eBay, eBid, Napster) B2E (Mellon) E2E G2B, B2G, C2G
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OODA Observe Orient Decide Act
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What Really Is eBusiness??
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eBusiness vs eCommerce eCommerce: "Buying and selling over digital media“ eBusiness: "e-Business is the complex fusion of business processes, enterprise applications, and organizational structure necessary to create a high-performance business model." (Kalakota and Robinson, 1999)
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The Dimensions of E-Commerce Source: Choi et al. (1997), p. 18.
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eBusiness Opportunities Supply Chain Efficiency Decreased Overhead Reduced Transaction Costs Market Efficiencies Increased Inventory Turns New Markets Increased Revenues
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eBusiness Opportunities Better Customer Experiences Community Customization Personalization Entertainment Access
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eBusiness Opportunities Efficient Markets Perfect Information Economic Efficiency Elimination of Boundaries Reduced Transaction Costs
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eBusiness Is: Supply Chain Integration Suppliers Customers E R P The Organization InternetExtranet EDI Intranet
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Web Pages “Stickiness” Design Technical Aspects Local vs Global
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Visibility Identification of materials as they move through the system Visibility of suppliers’ production processes Visibility through to the customer Identification of where the information is!
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Leadership Traits Passion Make the dream clear Speed Stay ahead of the curve Humility You must be willing to explain yourself Discovery The future path must be defined (Citrin & Neff, 2000)
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Leadership Capabilities Lead By Example Develop Solid Business Strategies Build Great Management Teams Inspire Employees Flexibility and Proactive Management Reward Performance (Citrin & Neff, 2000)
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New Leadership Capabilities Obsessive Focus on Customers Build Cross-Functional Organizations Manage with a Business Model (not a Strategic Plan) Promote the Business Model Foster Risk-Takers in the Company Work Extremely Hard (Citrin & Neff, 2000)
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The eBusiness Panorama Channel Enhancement Value-Chain Integration Industry Transformation Convergence Leverage of eBusiness Business Value (Deise et al, 2000)
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