Introducing e-Business to the Curriculum

Ned C. HillDean, Marriott School

Brigham Young University

WACSB Conference, October 17, 2000marriottschool.byu.edu

Outline• Overview of e-business

– Economic forces– Definitions– Influence of e-business on the curriculum– Examples

• Models for bringing e-business into the curriculum• e-business @ BYU• Side-note: accreditation and the Internet• Panel discussion

e-Business Changes...• Information flows• Internal and external processes• Relationships• PowerBUT, it does not change need for…• Quality products• Excellent service• Cost effective delivery• Valued relationships

Time Required to Download the 32 VolumeNew Encyclopedia Britannica

• 1200 bps modem……………………..… 28 days• 9600 bps modem………………….…… 3.5 days• 28.8 Kb modem……………………….. 28 hours• Basic Rate ISDN…………..……….… 6.3 hours• T-1 line………………….……….…. 31 minutes• T-3 line……………………………….. 1 minute• Optical Fiber (OC-3)………………. 17 seconds• Optical Fiber (OC-12)…………….. 4.7

seconds• Optical Fiber (new technology) .005 second

Paper vs. Paperless Paradigms

Costs of... Labor Paper Building materials Land

Costs of... Labor Paper Building materials Land

Costs of...Computer powerTelecommunications

Costs of...Computer powerTelecommunications

ConsequencesCosts

Time

Paper Paradigm

Paperless Paradigm

Transactions in the Paper ParadigmSeller

Buyer

Mail

Mail

Mail

Mail

Mail

CarrierBankingSystem

Req

uest

for

Quo

te

Quote

Pur

chas

e O

rder

Invoice

Bill of Lading

Che

ck a

nd R

emitt

ance

Adv

ice

Check

Keying in the Paper Paradigm

Keying Keying

Keying

Keying Keying

KeyingKeying Keying

Postal System

Seller’s Computer System

Buyer’s Computer System

What’s Wrong with the Paper Paradigm?

• Labor intensive• Slow• Error prone• Uncertain• Excessive inventory (and cash)• Bottom Line: IT’S EXPENSIVE

What Can We Do? Option 1: Make paper work even harderOption 1: Make paper work even harder

Option 2: Replace the paper paradigmOption 2: Replace the paper paradigm

Definitions of e-BusinessSimple: “The selling of products and

services using the Internet.”More General: The use of computer

and communication technology to facilitate the information exchange between parties to a transaction.

Types of e-Business Transactions• Paperless:

– Application to application•Electronic data interchange (EDI)•Financial EDI (firm to bank)•File transfer

– Manual to application•Web applications•Electronic order entry•E-mail•Financial service delivery (e.g., E-Trade)

Types of e-Business Transactions

• Physical media assisted by computers:– Facsimile transmission– MICR, OCR, ICR– Bar coding– RF

Electronics to PaperAll Electronic

All Paper

EDI, FEDI, FTP

Traditional Paper Transactions

FAX

MICR, OCR, ICR, Bar Coding

Internet, E-mail, E-trade

Pay

men

t and

Rem

ittan

ce A

dvic

e

Transaction with the Paperless ParadigmSeller

Buyer

Carrier BankingSystem

Req

uest

for

Quo

te

Quote

Pur

chas

e O

rder

Invoice

Bill of Lading

Goods

Keying in a Paperless Paradigm

Internet or Other Network

Seller’s Computer System

Buyer’s Computer System

Translation Translation

TranslationTranslation

P.O.. Invoice RA

Translation

Translation

Benefits of the Paperless Paradigm• Lower personnel costs• Reduced error rates• Faster cycle time• Improved business relationships• Reduced inventory• Fewer stock-outs• Reduced paper handling costs• Faster payments• Better control over information

Size of E-Business Market

180

135

5.5633

B2C

C2B

C2C

B2B

Billions of dollars, projected for 2003

eBusiness Impacts Everything

eBusinesseBusiness

FinanceFinance

AccountingAccounting

MarketingMarketing

StrategyStrategy

OperationsOperations

SystemsSystems

Supply ChainSupply ChainHRHR

Example 1: Bergen BrunswigPaper System

Pharmacist

Bergen Brunswig

Ord

er

Manual Processing

Del

iver

y

Pay

men

t

Example 1: Bergen Brunswige-Business System

Pharmacist

Bergen Brunswig

Ord

er

Automated ProcessingD

eliv

ery

Pay

men

t

Capture bar code on shelf label

PC consolidates entire order

Order transmitted over Internet

Warehouse is automated

Delivery is within 5 hours

Example 1: Bergen BrunswigWhat Changed?

• Sales function– Role of salesperson– Information channel

• Order fulfillment processes– Manual to automated

• HR focus– Compensation issues– Hiring & training

• Customer relationships– Responsibility for order initiation/errors– Service level

Example 2: ChryslerVendor Relationships under e-Business

Chrysler

Supplier

Pur

chas

e O

rder

Del

iver

y

e-P

aym

ent

e-M

ater

ial R

elea

se

e-D

eliv

ery

Ord

er

e-A

dvan

ced

Ship

Not

.

Example 2: Chrysler

• Inventory management– Just-in-time possible

• Invoiceless pay (“Evaluated Receipt Settlement”)

• Quality control moved back to suppier• Close cooperation necessary• Tolerance for errors is much lower• Result?

Inventory Reduced by $1,000,000,000

Evolution of e-Marketplaces

e-Brochuree-Brochure

1994

1996

1998

2000

e-CatalogSelling

e-CatalogSelling

e-ProcurementBuying

e-ProcurementBuying

e-Marketplacee-Marketplace

Example 3: e-Marketplaces

AutomatedMatching

Rules

AutomatedMatching

Rules

BuyerBuyer

BuyerBuyer

BuyerBuyer

BuyerBuyer

SellerSeller

SellerSeller

SellerSeller

SellerSellerRecord keeping, reporting, etc.

BankingBanking RegulatoryAgencies

RegulatoryAgencies

Internet-based Marketplace

How to Help Faculty Get up to Speed• Offer e-business seminars for faculty• Send them to e-business conferences• Provide research dollars• Create an e-business library• Acquire data bases• Involve them in executive education• Team non-e-business with e-business faculty• Build e-business activity into reward

structure

Activities for Students• Web design--helping us re-design our e-business

site• Research projects with faculty

– Wireless communications– Process re-engineering

– Distance education– Internet research

• Field studies (consulting projects)• Conferences

– e-Business Day (speakers, demos, panels, etc.)– Spring e-Business Conference

Introducing e-Business to the Curriculum

• Separate courses– Easier to transition--don’t have to change

other classes– Lots of new material to cover

• Integrate e-business into existing courses– More faculty have to upgrade– Better for students in the long run

Will “e-business” become just “business”?

General Course Map for eBusiness

Foundation Technologies: Networking, Data Bases, ProgrammingFoundation Technologies: Networking, Data Bases, Programming

Overviewof e-Business

Overviewof e-Business

Application to Functional Areas:Finance, Marketing, Operations, HR, Government, etc.

Application to Functional Areas:Finance, Marketing, Operations, HR, Government, etc.

Strategyand e-Business

Strategyand e-Business

Enter

Graduate Program at BYU

Networking Database e-Businsess Application Management Development

Networking Database e-Businsess Application Management Development

Introduction to e-Business

Introduction to e-Business

Strategyand e-Business

Strategyand e-Business

Enter

Functional areas can experiment here

SpecialTopics

SpecialTopics

Brand Mgmtand e-Business

Brand Mgmtand e-Business

InternetMarketing

InternetMarketing

Treasury Mgmt.& e-Business

Treasury Mgmt.& e-Business

LectureSeries

LectureSeries

Existing New Existing New

NewExisting

Existing Existing Existing

Undergraduate Program at BYU

• Introduction to e-Business– Module in Jr. Accounting Core--

e-Business:Principles and Strategies for Accountants, Glover, Liddle, Prawitt, Prentice Hall

– Will be adapted to Business Management core• Infrastructure Courses

– Internet programming– Networking– Internet applications

What Others are Doing

• Maryland--no track, but e-Business infused across the curriculum (17 courses)

• Penn State--e-Business track with 4 courses• Notre Dame--2 e-Business tracks (e-consulting and

e-entrepreneurship) with 2-3 courses in each• Babson--5 separate new graduate degrees in e-

Business• Georgia State--Global e-Commerce Masters in

partnership with 5 European universities (15 month program delivered largely through Internet)

Financing e-Business at BYU

The Kevin and Debra Rollins Center for e-Business@BYU

Faculty Director:Professor Owen Cherrington

Faculty Director:Professor Owen Cherrington

Faculty Curriculum CommitteeProfessor Scott Sampson

Faculty Curriculum CommitteeProfessor Scott Sampson

Advisory Committee:Representatives from Industry

Faculty Members

Advisory Committee:Representatives from Industry

Faculty MembersStudent TeamsField Studies, Web Design,

Activities, Research Projects

Student TeamsField Studies, Web Design,

Activities, Research Projects

$3 M plus matching opportunity for $9 M additional

Funding Used for:• Scholarships• Faculty fellowships• Faculty professorships• Research support (faculty and

students)• Faculty development• Curriculum development• Hardware/software

Additional Funding Sources:Leveraging through Partnerships

• Dell -- laptops for faculty and students (purchase and service)• NetDocuments -- homework submission, document sharing• Trade.com -- portfolio management (real and simulated) and

competitions• IAccess -- valuing start-ups (students and service to

community)• Blackboard.com -- course syllabi• OmniWhere -- fax, e-mail, voice-mail service through the

Internet• Web design company -- original design of Marriott School web

site• IBM -- speakers, research projects, curriculum sharing

How Can You Get Started?• Learn about e-business• Form a faculty committee to design

strategy for curriculum and faculty development

• Form partnerships with local e-business firms for funding, advice, internships and employment

• Others?

References on e-Business• Evans and Wurster, Blown to Bits: How the New Economics of

Information Transforms Strategy, Harvard Business School Press, 2000

• Tapscott, et al, Digital Capital: Harnessing the Power of Business Webs, McGraw Hill, 2000

• Shapiro and Varian, Information Rules: A Strategy Guide to the Network Economy, Harvard Business School Press, 1999

• Kalakota and Robinson, e-Business: Roadmap for Success, Addison Wesley, 1999

• Naisbitt, High Tech, High Touch, Broadway Books, 1999• Friedman, The Lexus and the Olive Tree, Anchor Books, 2000

Using e-Business within the University

• Applications -- Internet• Course Registration -- Internet• Purchase of Supplies -- Internet• Phone Bills -- EDI• Grade Transcripts -- EDI• Travel Arrangements -- Internet• Alumni Relations

– Publications -- Internet– Communications -- e-Mail

• Internal Communications -- MS Outlook• Correspondence Courses -- Internet/CD Rom

Pioneering Online Accreditation

AACSB&

BYU

Advantages

1. Online documentation is easily updateable2. Online accreditation can take advantage of the

informational resources already available on the website

3. Online accreditation facilitates the trend toward continuous self-analysis

4. Databases allow reviewers to “drill-down” through content to find the information they want most

A Word on Security

1. Web server is physically protected behind locked doors in an alarmed room

2. Databases are stored in a password-protected format

3. All transactions are sent across the web with 128 bit public-private key encryption

4. Attempts to access the pages directly will bounce unauthorized users immediately to the login screen

Main Menu

Faculty Productivity Reports

Dynamically-created Publications Report

Supporting Detail for Journal Publications

Automatic Link to Faculty Profiles

Thank You

marriottschool.byu.eduRollins e-Business Center