E-business research paper

Presented by

Group-Vidyut Himanshu

Jadaun(22) Manpreet Nagi(31) Pallab Bose(46) Sainyam

Sharma(58) Sanjeeb

Tamuli(60) Sumit Mishra(69)

DEFINITION

• E-business (electronic business) , derived from such terms as “e-mail” and “e-commerce”, is the conduct of business on internet, not only buying and selling but also servicing customers and collaborating with business partners

• E-business is just business using electronic network to transform a business process or business system to create superior value for current or potential customers

•Companies are using the web to buy parts and supplies from other companies, to collaborate on sales promotion and to do joint research

Some Features Of E-business…. Links their internal and external data processing

systems more efficiently and flexibly. E-business refers to more strategic focus with an

emphasis on the functions that occur using electronic capabilities.

E-business involves business processes spanning the entire value chain: electronic purchasing and supply chain management, processing orders electronically, handling customer service, and cooperating with business partners.

Special technical standards for e-business facilitate the exchange of data between companies.

E-business can be conducted using the Web, the Internet, intranets, extranets, or some combination of these.

One of the first to use the term was IBM, when, in October, 1997, it launched a thematic campaign built around the term.

Ebiz vs E-comm

Electronic business transactions involving money are “E-Commerce" activities.

E-commerce refers to online transactions - buying and selling of goods and/or services over the Internet, E-business covers online transactions, but also extends to all Internet based interactions with business partners, suppliers and customers such as: selling direct to consumers, manufacturers and suppliers; monitoring and exchanging information; auctioning surplus inventory; and collaborative product design. These online interactions are aimed at improving or transforming business processes and efficiency.

Improved accuracy, quality and time required for updating and delivering information on products and/or services.

Access for customers to catalogues and prices - 24 hours x 7 days.

Improved ease, speed and immediacy of customer ordering.

Enhanced market, industry or competitor intelligence acquired through information gathering and research activities.

New distribution channels via the electronic delivery of some products and services, for example, product design collaboration, publications, software, translation services, banking, etc.

Expansion of customer base and growth in export opportunities.

Reduces routine administrative tasks (invoices and order records) freeing staff to focus on more strategic activities.

What E-business is not

• a bolt on business; rather than a integral component of it

• about technology• a middle management initiative • Tied to the particular department or

functional area

Application of E-Business

Manufacturing sector Tourism Telecommunication Hospitals Retail Customer service Auction

Classification by provider and consumer

business-to-business (B2B)

business-to-consumer (B2c) business-to-employee (B2E)

business-to-business-to-consumer (B2B2C)

business-to-government (B2G)

Contd…

government-to-business (G2B)

government-to-government (G2G) consumer-to-consumer (C2C)

consumer-to-business (C2B)

Mobile commerce

I commerce

E learning

L–commerce

Exchange

E–tailing

Some of the initiative of E-business

Student services Employee services Business and related services

Benefits of E-Business

Benefits to consumers

Benefits to Societ

y

Benefits to Organization

s

Benefits to Organizations

Global reach Cost reduction Supply chain improvements Extended hours: 24/7/365 Customization Efficient procurement No city business permits & fees

Benefits to Society

Telecommuting

Higher standard of living

Hope for the poor

Availability of public services

Benefits to Consumers

Ubiquity

More products & services

Cheaper products & services

Instant delivery

“Get it your way”

Limitations of E-Business

Host of security

Legal & financial problems

The incoherence of the web

Concerns about security & flexibility in using web as a purchasing tool

Legal & Regulatory aspects of E-Business

The rapid development of e-business has been such that it is difficult for legislators to catch up

The exponential rise in Internet usage & trading has not been met with the adoption of legal regulations

The law & regulation of e-business is a rapidly developing area attempting to keep track of the growth of online business

Information and communication technology Information and communication

technologies(ICT) is an umbrella term that covers all technical means for processing and communicating information.

It includes• Communication protocol• Media• Computing ,data storage

Need for ICT

Allow user to participate ICT tools can be used to find explore

analyze, exchange and present information responsibly and without discrimination

ICT can be employed to give users quick access to ideas and experiences from a wide range of people ,communities and cultures.

Impact of ICT

Influence on productivity Economic impact Social impact Influence on innovation

Influence on productivity

The effect of ICT on productivity was much higher in younger firms.

Region wise –US enterprise Example-ICT and related effect

raised Australia's annual multi factor productivity growth by around 0.2% points in the 1990

Economic impact

ICT’s have increased international interconnectedness

Speed up the process of globalization ICT’s have enabled corporation to

outsource jobs.

Social impact and influence on innovation

Demand for highly skilled specialist Competitive pressure Examples -manufacturing sector ,

service sector such as tourism .

E-Business: Business perspective Economic opportunities Penetration of international market

potential

Principles of E-Business: Researching basic contractual issues Putting into play basic business

principles

E-Business: Consumer perspective Perceived lack of security for

conducting financial transactions Reliability of on-line purchasing Privacy considerations in terms of

personal information sharing Unfamiliarity with the Internet

environment

Principle connection required to conduct e-business

E-company

Suppliers

StakeholdersEmployees

Customers

Business to business

Business to stakeholder

Business to consumer

Business to employee

ERP with E-Business

To complement e-business a need for an internal transaction system arises which is provided by ERP.

With the e-buy/ERP/e-sell enterprises can easily connect both suppliers and customers.

ERP E-SellE-

Buy

Knowledgemanage-ment

manufacturing

logisticsfinancial

Sales &Mktg

Human Resources

ERP

Internet

Share holders

customers

suppliersOutsourcingServiceproviders

Researchers &developers

Business partnersAdvisers

distributors

Complementary technologies of ERP and E-Business

ERP is the internal technological hub of single enterprise helping in supply chain & demand chain and facilitate the organization to coordinate information.

Web based technology extends each enterprise’s internal infrastructure to the external environment.

Integrating E-business & ERP

E-business operates under the assumptions- Control of business processes can be shared or

dispersed among any organization People need access to small qty of some

transactional data in real time Many people participate in variety of processes

The ERP providers must overcome this issue in one of the 3 ways-

Must redesign the interfaces, processes and underlying architecture for a variety of user who require flexibility

Must learn to use a new set of web based technologies and incorporate web based feature into their software offering

More compatible for front office application

E-BUSINESS SOLUTIONS INSTALLATION PROCESSPitfalls of E-business solutions installation process

• Senior managers do not spend enough time and efforts to learn and understand the solutions.

• The end users do not receive required training

• In many cases, IT infrastructure is not up-to-date enough and lacks power to support the new solution.

• The time and money allocated to the project are far less

than required.

Preparation

Education and Training

Implementation

Before considering an e-business solution, make sure that there is a sound business need to get it. E-marketplace, Private exchange, Business portal are few of the e-business solutions that help attracting new customers and markets.

Keep track of the new technologies and keep an eye to your competitors e-business strategies. E-business is an extremely fast moving segment

MARRIOTT INTERNATIONAL ( A E-BUSINESS CASE)

• This case discusses the customer-focused e-business strategy of Marriott International (Marriott), a world leader in the hospitality industry and franchisor of a broad portfolio of hotels and related lodging facilities. Founded by J. Willard Marriott, the company is now led by son J.W. (Bill) Marriott Jr.

• Today, Marriott International has about 3,150 lodging properties located in the United States and 67 other countries and territories.

• In year 2003, it had a network in excess of 2,600 operating units in the US and a workforce of 145,000 employees, spread over 65 countries across the world.

• Marriott’s diverse portfolio of popular hotel brands included leading brands such as Marriott, JW Marriott, Renaissance, Ramada International, Courtyard, Residence Inn, and The Ritz-Carlton, among others.

Delighting Customers Since its inception, Marriott has focused on providing excellent customer service. The company offered personalized services to its clients, whom it referred to as its ‘guests.’

It had introduced several innovative technologies and implemented them even before its competitors did. For instance, in the 1980’s, the company launched Marriott Automated Reservation System for Hotel Accommodation (MARSHA), a totally new concept of hotel reservation in the hospitality industry at that time.

Marriott made continuous improvements in its business processes in its efforts to ‘delight’ its customers. In 1998, the company adopted an e-business strategy to re-orient itself to serve its customers better.

The company was operationalizing a strategy to switch over from a decentralized property-orientation to a centralized customer-orientation in its services...

The E-Business Strategy

Marriott’s e-business strategy aimed at transforming itself from a property-focused to a customer- focused company Previously, Marriott measured its financial performance on the basis of the revenues earned for each of its individual property.

The e-business strategy emphasized on increasing revenues earned per customer.

The four key objectives of the e-business strategy included serving customers proactively, personalizing the service offerings according to the needs and preferences of the customers, enhancing brand loyalty and awareness, and cross-selling...

The Website and E-Business System

The website’s home page had five main icons including hotel directories, reservations, meeting planners, travel agents and a suggestion box.

The hotel directories section had details such as the name of the hotel, the address and phone numbers of all the hotels in the Marriott chain across the world.

Clients could select the city and the hotel where they wanted accommodation, on the screen...

The Benefits

In 1999, Marriott earned revenues of $150 million from online bookings through its website.

Estimates for the year 2000 indicated that every month, the website received three million hits, making it one of the largest viewed websites in the US hospitality industry.

By 2002, the website emerged as a money-spinner for Marriott with online sales of $1 bn...

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