1. E-business Environment ITU Spring 2013

2. Figure 2.1 The environment in which e-business services are provided E-business environment

3. From supplier- to consumer?

4. The Value-Chain

5. E-business environment

6. Business model Timmers (1999) defines a ‘business model’ as: An architecture for product, service and information flows, including a description of the various business actors and their roles; and a description of the potential benefits for the various business actors; and a description of the sources of revenue.

7. Figure 2.13 Alternative perspectives on business models

9. Factors in the macro-environment affecting e-commerce adoption Social factors Legal and ethical factors Economic factors Political factors Technological factors

10. Issues First exercise: List all the social, legal/ethical, economical, political and technological issues - that you need to consider in order to avoid damaging relationships with users, competitors, suppliers, government - or which may leave the e-business facing prosecution, or being harmed in other ways.

11. Social factors Legal and ethical factors Economic factors Political factors Technological factors

12. Social factors Internet adoption Online buyer behaviour Online demand for business services

13. Factors governing Internet adoption Cost of access Value proposition Ease of use Security Fear of the unknown

14. Figure 4.1 ‘Waves of change’ – different timescales for change in the environment

15. Figure 4.2 Variation in broadband subscribers per 100 inhabitants, by technology, December 2007 Source: OECD (www.oecd.org/sti/ict/broadband)

16. Figure 4.3 Percentage by category who bought offline after researching online Source: BrandNewWorld: AOL UK / Anne Molen (Cranfield School of Management) /Henley Centre, 2004

17. Trust in different information sources The role of social media and friends in influencing sales was highlighted by this research from EIAA (2008) which rated key sources for research indicating the level of trust amongst European consumers for different online and offline information sources: Search engines (76%) Personal recommendations (72%)

18. Trust in different information sources (Continued) Price comparison web sites (61%) Web sites of well-known brands (59%) Newspapers/magazines (58%) Customer web site reviews (58%) Expert web site reviews (57%) Retailer web sites (56%) Sales people in shops (50%) Content provided by ISPs (38%).

19. Figure 4.4 Development of experience in Internet usage Online buyer behavior

20. Figure 4.5 Variation in purchase rates of online products and services in Europe Source: European Interactive Advertising Association (www.eiaa.net), Mediascope Eupore 2008

21. Social factors Legal and ethical factors Economic factors Political factors Technological factors

22. Legal and ethical factors 1.Privacy – what information is held about the individual? 2.Accuracy – is it correct? 3.Property – who owns it and how can ownership be transferred? 4.Accessibility – who is allowed to access this information, and under which conditions?

23. Table 4.2 Significant laws which control digital marketing

24. Table 4.2 Significant laws which control digital marketing (Continued)

25. Ethical issues and data protection Ethical issues concerned with personal information ownership have been usefully summarized by Mason (1986) into four areas: 1.Privacy – what information is held about the individual? 2.Accuracy – is it correct? 3.Property – who owns it and how can ownership be transferred? 4.Accessibility – who is allowed to access this information, and under which conditions?

26. Ethics – Fletcher’s view Fletcher (2001) provides an alternative perspective, raising these issues of concern for both the individual and the marketer: 1.Transparency – who is collecting what information? 2.Security – how is information protected once collected by a company? 3.Liability – who is responsible if data is abused?

27. An example of controversy: Facebook Terms of Use By posting User Content to any part of the Site, you automatically grant, and you represent and warrant that you have the right to grant, to the Company an irrevocable, perpetual, non-exclusive, transferable, fully paid, worldwide license (with the right to sublicense) to use, copy, publicly perform, publicly display, reformat, translate, excerpt (in whole or in part) and distribute such User Content for any purpose, commercial, advertising, or otherwise, on or in connection with the Site or the promotion thereof, to prepare derivative works of, or incorporate into other works, such User Content, and to grant and authorize sublicenses of the foregoing. You may remove your User Content from the Site at any time. If you choose to remove your User Content, the license granted above will automatically expire, however you acknowledge that the Company may retain archived copies of your User Content. Facebook does not assert any ownership over your User Content; rather, as between us and you, subject to the rights granted to us in these Terms, you retain full ownership of all of your User Content and any intellectual property rights or other proprietary rights associated with your User Content. http://www.facebook.com/terms.php?ref=pf

28. The eight principles for data protection Fairly and lawfully processed processed for limited purposes adequate, relevant and not excessive accurate not kept longer than necessary processed in accordance with the data subject's rights secure not transferred to countries without adequate protection www.dataprotection.gov.uk

29. Social factors Legal and ethical factors Economic factors Political factors Technological factors

30. Economic / political Ensuring companies competitiveness Funding for education and technology Promoting new technology for example, broadband 12% in UK, 70% Taiwan, South Korea Achieving government efficiencies E-government – all UK services online by 2005 Singapore ‘Intelligent Island’ Taxation regimes Legislation for offshore trading

31. Internet Penetration Regions RegionPenetration North America78.6 % Oceania / Australia67.6 % Europe63.2 % Latin America/Caribbean42.9 % Middle East40.2 % Asia27.5 % Africa15.6 % WORLD TOTAL34.3 % http://www.internetworldstats.com

32. Leaders and laggards in e-commerce

33. Digital Economy Score

34. Figure 4.11 A framework describing the e-economy Source: Booz Allen Hamilton (2002). International E-Economy: Benchmarking The World’s Most Effective Policy for the E-Economy. Report published 19 November, London. www.e-envoy.gov.uk/oee/oee/nsf/sections/summit_benchmarking/$file/indexpage.htm

35. Social factors Legal and ethical factors Economic factors Political factors Technological factors

36. Political factors The political environment Internet governance E-government policies

37. Government agencies Public opinion Consumer pressure groups The political environment

38. Social factors Legal and ethical factors Economic factors Political factors Technological factors

39. Technological issues Rate of change Which new technologies should we adopt? Monitoring for new techniques Evaluation – are we early adopters? Re-skilling and training Are our systems secure?

40. Figure 4.12 Diffusion–adoption curve

41. Figure 4.13 Example of a Gartner hype cycle Source: Gartner (2005) Gartner’s Hype Cycle Special Report for 2005

43. Figure 4.15 Alternative responses to changes in technology What action should e-commerce managers take when confronted by new technologies?

44. Environmental drivers and government initiatives

45. Environment affect the strategy So what is strategy…?

46. My simple take on strategy Strategy = Desired future – Current status So strategy is all that happens between the offset and at the point we decide that we are at the goal Is it a plan? A learning curve?