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ECT 589: E-Commerce

Management

E-Business Transformation

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Agenda Your feedback Market News “IT doesn’t matter” or Does IT matter? E-Business Transformation and IT Skills Portfolio Case Study Presentation

Morningstar.com

Next week Case study presentation Reports and peer evaluation forms due

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Nicholas Carr: IT Doesn’t Matter HBR, May 2003

Identify 3 points discussed in Carr’s article.

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Nicholas Carr: IT Doesn’t Matter HBR, May 2003

Do you agree with Carr’s assertions? Why?

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Nicholas Carr: IT Doesn’t Matter HBR, May 2003

If you were interviewing for an IT job the interviewer referred to “IT Doesn’t Work” and asked you to defend the value of IT investment, what would you say?

Outline 3 arguments (with examples).

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E-Business Transformation: IT Skills Portfolio Management

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E-business Transformation

What are key characteristics of e-business?

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Characteristics of E-Business

1. An e-business is an integral part of a business web in which organizational boundaries become more permeable.

Access to e-business systems Boundary of hardware, software,

communications, and users A web of information systems

2. The role of information Virtual value chain Heterogeneous users

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Characteristics of E-Business

3. Enterprise systems have been widely adopted as the backbone for e-business Limitation of current enterprise systems Demand for e-collaboration

4. System integration is more critical than systems development. Better understanding of inter-organizational

behavior and industry value chain

5. Organizational transformation is essential for e-business transformation.

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e-Business Application Architecture

Supply Chain Mgmt

Selling Chain Mgmt

Sta

keh

old

ers

Business Partners,Suppliers, Resellers

Distributors,

Customers, Resellers

Em

plo

yees

HR

MS/

E-P

rocu

rem

en

t

Fin

ance

Auditin

gM

gm

t Contro

l

BI EAI

CRM

ERP

Logistics

Pro

ductio

n

Distrib

utio

n

Mark

etin

g

Sale

s

Cust S

vce

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Internal and External Process Ennoblement

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InboundLogistics

Customers

Manufacurers

Retailers Distributors

Suppliers

OutboundLogistics

Operations

SalesMarketing

CustomerService

Transporters

Administration

Finance/Accounting

Procurement

Info. Systems

Human Resources

ASP’s

E-Business Environment

E-Business Firm

Exchanges/Hubs

Consortia

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IT S

kills Portfolio M

ana

gem

ent

Acquisition D

evelopm

ent Mainten

ance

Strategy Level

Architecture Level

Systems Level

Project Level

Tools and Technology Level

E-busin

ess Web E

nvironm

ent

E-Business IT Skills Portfolio

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IT Skills Portfolio Management

Drivers Rapid technology advancement Skills Gap; the right mix of skills > the number of hires

Skills acquisition Skills recruitment, building of skills inventory, and skills

acquisition through outsourcing Skills development

Desired skills requirements, skills enhancement, skills transfer and roles rotation

Skills maintenance Talent retention and updating skills

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The Strategy Level Issues: • Champion of strategies, CEO’s roles• Leadership positions• Skills acquisition as part of corporate strategies• IT cultures for e-businessSkills: • Strategic planning.• Leadership and governance• Knowledge about technology.• Understanding of e-business webs complexity• Risk management – privacy and security• Legal compliance: Sarbanes Oxley Act

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The Architecture LevelIssues: • Application architecture• Distributed systems• Infrastructure architecture• Collaboration• Information structuring & architecture

Skills: • Architecture knowledge as part of IT planning skills.

• Distributed systems knowledge.

• Application architecture and systems integration.

• Knowledge about technology standards.

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The Systems Level

Issues: • ERP and Web systems integration• Effective Project management• Process change management• Enterprise systems• Integration of web systems and enterprise systemsSkills:• Deep knowledge in business process (intra- and inter-

organizational processes).• Technical knowledge in systems integration.• Vendor and product knowledge.• Application architecture

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The Project Level Issues:• Process change driven by external demand • Permeable org boundaries• External users and consumers• Complex process• Collaboration

Skills • Deep knowledge in process related to industry value chain.• Deep knowledge in inter-department process.• Change management.• Web-based system development.• Integration of legacy systems, enterprise systems, and web-based

systems.• Project management.• Interpersonal and communications skills

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Tools and Technology

Issues• Wide-range of tools and technology• New tools and technology• Lack of standardization• Proper education and training• Offshore outsourcing

Skills• Multiple operating systems.• Wireless.• Web services.• XML. Java.• DBMS.Networks.• Client-side programming tools. Server-side programming tools.

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Positions

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ort

ance

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Changes in Perceived Importance by Positions

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ang

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ChangeNowIn 3 Years

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MS OS(XP,Win2k)

XML Java UNIX JSP LINUX ASP VisualBasic

C C# Cobol

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Changes in Perceived Importance by Programming Language

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ChangeNowIn 3 Years

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What Skills Do Companies Need for a Successful Implementation?

People, Process,and Technology

Sales, Marketing, Customer Service , Best Practices

B2B B2C

Process Knowledge

Enterprise program management

Project control Issue resolution Risk management Leadership Expectation Management

Project Management

Client/Server and Web technologies

Performance / benchmarking ACD, IVR, CTI technologies Middleware Email routing systems

Technical Knowledge

Applications Knowledge Architecture Knowledge Project Management

Product Expertise

Job analysis and Redesign Training and documentation Team building Stakeholder management

Change Management

Best practices Industry issues Industry specific solutions

Industry Knowledge

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Levels of Challenges Necessary Skills

Strategy Strategic planning.Leadership.Decision Making.Knowledge about technology.Understanding of e-business webs complexity.

Architecture Architecture knowledge as part of IT planning skills.Distributed systems knowledge.Application architecture and systems integration.Knowledge about technology standards.

Systems Deep knowledge in business process (intra- and inter-organizational processes).Technical knowledge in systems integration.Vendor and product knowledge.Application architecture

Projects Deep knowledge in process related to industry value chain.Deep knowledge in inter-department process.Change management.Web-based system development.Integration of legacy systems, enterprise systems, and web-based systems.Project management.Interpersonal and communications skills

Tools and Technology Multiple operating systems.Wireless.Web services.XML.,Java.DBMS.Networks.Client-side programming tools., Server-side programming tools.