1 dickson k.w. chiu phd, smieee (thanks to dr william cheung) comp7580: e-transformation in business...

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Dickson K.W. ChiuPhD, SMIEEE

(Thanks to Dr William Cheung)

COMP7580: E-Transformation in Business

1. Introduction: From Net Commerce to e-Enterprise and e-Government

Dickson Chiu 2008 COMP7580-Intro-2

Learning Objectives

To introduce e-Transformation in Business

To clarify different views of e-Commerce / e-Business

To understand the evolving aspects in different e-Transformation phases

To overview e-Enterprise and business process reengineering

To overview e-Government

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1.1 e-Transformation in Business


Vending Machine On-line

What are transformed? How are they transformed? Why do they need to be transformed? Who will be affected in what ways?

Transforming a vending machine…


e-Business – What are transformed?

Form of information and documents E.g., invoice, customer information, contract, product

catalog, company news, payment records, … Processes for managing, analyzing and using

them Functional perspective: accounting, sales and

marketing, production, design, human resource, … Organizational perspective: Operational, Knowledge,

Management and Strategy


e-Business - How are they transformed?

Electronically, but more due to Internet and Web technologies

proprietary -> http, HTML, Web server, Web client and server programming

Perl, PHP, JSP, Java Bean, .Net, Apache, Tomcat, … A unified(?) way to represent information and

document for sharing and integration Data Schema, Database, Knowledge Representation

(Semantic Web) Oracle, MySQL, MS SQL Server, XML, RDF, OWL, …

A unified(?) way to represent software systems’ interface and business processes

Service-oriented computing, workflow representation and management

BEA Weblogic, RosettaNet, MS BizTalk, ebXML, …


e-Business – Who will be affected in what ways?

Clients/Customers (e.g., personalized services) Cost: New experience (UI, security) Benefit: More competitive price, better

services/products, better after-sales support -> better “customer experience”

Company staff (e.g., decision support systems) Cost: New experience and operation (UI, security) Benefit: higher productivity, fast decision & response

Business partners (e.g., SCM systems) Cost: New interface and operation (UI, security & trust) Benefit: more efficient communication, easier to

establish business relationship dynamically, …


e-Business – Why is the transformation needed

Stay competitive by value-adding … Operation Efficiency (for lowering the cost) Strategic Positioning (for raising the selling

price)


e-Transformation in Other Sectors

What are transformed? How are they transformed? Why do they need to be transformed? Who will be affected in what ways?

Can you repeat the same exercisefor e-Government, e-Health?

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1.2 Different Views

Dickson Chiu 2008COMP7580-Intro-

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Limited Views on E-Commerce

Corporations Electronic data interchange (EDI)?

Electronic messages standard via a private network http://www.pharogen.com/edi.asp#whatis http://supplier.arvinmeritor.com/cvs_edi/ae/edi/TS830_E

xample_1.shtml (an example)

General public Buying and selling on the Web?

Association for Electronic Commerce Doing business electronically? Call Centers?


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An industry consortium at www.commerce.net Buying and selling information, products, and

services (e-Commerce) The use of inter-networked computers to

create and transform business relationships (e-Business and e-Enterprise)

Internally: transfer and share information through intranets to improve decision-making and eliminate duplication of effort

Externally: part from transactions, also built on building, sustaining, and improving relationships

CommerceNet’s Views


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The Scope of Net Commerce

Supply side material, repair, & operations (MRO)

procurement, and logistics manufacturing and distribution

Demand side order entry, catalog management and

customer care

=> Main Case Study of this course

Inter-organizational

“Internal”


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Vending Machine Again

e-Commerce: Payment e-Business:

Machine -> CocaCola warehouse for refill CRM for where to put the machine and what

to be sold Mobile payment solutions …

Transforming a vending machine

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1.3 Evolving aspects in different e-Transformation phases


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Net Commerce

4 phases of Net commerce*not a single step!

e-Transformation


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Evolving Aspects in e-Transformation

Business Models What is to be accomplished?

e-Application Categories How to accomplish… ?

e-Application Functionalities What is offered that helps to accomplish… ?

To support the vision and strategy of the company

A Web-based system has no value by itself if it is not developed with a strategic plan


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Brochureware

Business Model (B2C) Use the net as:

key medium for global marketing a low-cost repository of product and service

information static documents and simple multimedia

Customer interaction reading text view pictures

Transactions are performed over traditional means

Now, we still go the shops to buy most of our need…


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e-Commerce

Focus on consumer transactions and interactions over the Internet

Business Model buying and selling to consumers online (B2C)

Characterized by the .com mania - lots of new companies operating online content-aggregation business model - focus on consumer founder and situation driven

Some success factors Branding Marketing Personalization of service Creation of customer community


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e-Commerce Functionalities & Examples

e-Tailing and Consumer Portal (CDNOW): online catalogs, personalization, advertising, shopping

carts, and online communities Bidding and Auctioning (eBay):

online catalogs, bid boards, account management, and notification

Consumer Care and Management (e-Trade): personalization, self-service, immediacy, and information

Electronic Bill Payment (AT&T): bill consolidation, analysis and reporting, payment

processing, and integration


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e-Business Business Model

Focus on B2B applications over the Internet evolve from well-established brick-and-mortar

companies seeking process improvement Characterized by

focus on an organization’s core competencies process aggregation oriented business model process-driven; also technology-driven

Some success factors create and integrate the right processes agile applications ability to integrate applications and data right organizational structure Means of overcoming political obstacles


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e-Business Functionalities & Examples

Virtual Marketplace (Dell) Catalog, buying tools, integration, and payment

option, .. Procurement & Resource Management

(MasterCard) Request for info, request for proposal, requisitioning,

purchase orders, payment, and supplier management

Extended Value Chain (FedEx) Demand and supply planning, logistics, and

production planning Customer Relationship Management (HP)

Self-service, solution-center, personalization, and account management functionalities


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SCM vs ERP vs CRM

Supplier Manufacturer Customer

SupplyChainMgmt

Customer Relationship

Mgmt

Enterprise

Resources

Planning


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e-Enterprise (1)

Convergence of B2C and B2B functionalities for those who serve both market segments

New value chain “Click and Mortar” combining traditional bricks-and-mortar assets with

the efficiency of cybermediation Co-opetitive virtual organizations

Supply side: Procurement

of raw material

Demand side:

consumer retailing and

customer management

cybermediation


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e-Enterprise (2)

Complex combinations of internal and external business processes and relationships with …

Customers

Company A

Suppliers

Distributors

Partners Competitors


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Business Model (B2C + B2B) Based on people (role) aggregation

Applications Focused on mission-critical, inter-organizational

business processes CEO drives organizational changes Results come out via iterative and

methodological efforts using technology (as an enabler and as a commodity )

e-Enterprise (3)


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Value Proposition more than manufacturing techniques or prime location

outlets Speed and Agility

Gained by leveraging existing asset base through the Net Example 1, TimKin Corp. (bearings producer)

Self-service answers to customer about product availability and price (CRM) through linkage to the back-end inventory database -> 15 percent service reps moved to sales

Example 2, AutoNation (automobile dealership network) Use an on-line infrastructure to channel leads to its

physical infrastructure of nationwise dealership.

e-Enterprise (4)

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1.4 e-Enterprise and Business Process Reengineering


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Business Process Reengineering (BPR)

A radical reinvention of how corporations do their work.

Conventional BPR From business process automation to completely

reengineering all the processes (NOT to follow the old way of doing things).

Enabled by Web, XML, PKI, … One can shift focus from internal to external process Dynamic, real-time information sharing become

possible E.g., How about from document exchange via emails

(Push) to setting up VPN (Pull)? How about one-to-one marketing?


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Where to Begin?


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References

Faisal Hoque, Business Models, Architecture, and Components, Chapter 1, Cambridge University Press, 2000

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1.5 e-Government


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E-Government

E-government: The use of IT and e-commerce to provide access to government information and delivery of public services to citizens and business partners

Offers an opportunity to improve the efficiency and effectiveness of the functions of government and to make governments more transparent to citizens and businesses by providing access to more of the information generated by government


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Government-to-citizens (G2C)

E-government category that includes all the interactions between a government and its citizens

Major features of government Web sites: phone and address information links to other sites publications databases


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G2C (cont.)

Major areas of G2C activities: tourism and recreation research and education downloadable forms discovery of government services information about public policy advice about health and safety issues

Useful in solving constituents’ problems Netizen: A citizen surfing the Internet Electronic Benefits Transfer (EBT)

nationwide EBT system to deliver government benefits electronically

deliver benefits to recipients’ bank accounts smart card system for those without bank accounts


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Government-to-business (G2B)

E-government category that includes interactions between governments and businesses (government selling to businesses and providing them with services and businesses selling products and services to government)

Group purchasing eFAST service conducts reverse auctions for

aggregated orders Forward e-auctions

auction surplus or other goods Tax collection and management

electronic filing of taxes is now available in over 100 countries


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Other E-Government Modes

Government-to-government (G2G): e-Government category that includes activities within government units and those between governments

Government-to-employees (G2E): e-Government category that includes activities and services between government units and their employees


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E-Government Transformation Process


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Implementing Issues of e-Government

Transformation speed G2B implementation Security and privacy issues Wireless applications


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E-Government Adoption


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http://www.comp.hkbu.edu.hk/~eee05


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http://www.comp.hkbu.edu.hk/~ctr

1 dickson k.w. chiu phd, smieee (thanks to dr william cheung) comp7580: e-transformation in business...

Documents

business slide

egovernment slide

business relationship

strategy slide

different views slide

chiu phd

vending machine slide

selling price slide