Module 1
What is e-business?
2Agenda
Regional Training Workshop for Enterprise Support Agencies to Promote E-business for SMEs in the Greater Mekong Subregion (GMS), 26-28 June 2006, Bangkok
• E-business and e-commerce
• E-business concepts and dimensions
• Types of e-business
• Evolution of e-business
• Stakeholders and major players
• E-business framework
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“It is not the strongest of the species that survive, nor the most intelligent, but the one most responsive to change”
Charles Darwin
“If you’re not changing faster than your environment, you are falling behind”
Jack Welsh, CEO of GE
Regional Training Workshop for Enterprise Support Agencies to Promote E-business for SMEs in the Greater Mekong Subregion (GMS), 26-28 June 2006, Bangkok
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Electronic business or e-business is the use of ICT to improve business (from the use of email to facilitate administrative procedures in buying and selling through the Internet).
Electronic commerce or e-commerce is where business transactions take place via electronic communication networks, especially the Internet.
E-business and E-commerce
Regional Training Workshop for Enterprise Support Agencies to Promote E-business for SMEs in the Greater Mekong Subregion (GMS), 26-28 June 2006, Bangkok
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The main difference between them is that e-commerce defines interaction between organizations and their customers, clients, or constituents. On the other hand, e-business is broader term that also encompasses an organization’s internal operations.
Electronic commerce describes the buying and selling of products, services, and information via computer networks including the Internet, where e-Business describes the broadest definition of EC. It includes buying and selling of products and services, servicing customers, collaborating with business partners, and conducting other intra-business tasks.
E-business vs. E-commerce
Regional Training Workshop for Enterprise Support Agencies to Promote E-business for SMEs in the Greater Mekong Subregion (GMS), 26-28 June 2006, Bangkok
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Three alternative definitions of the relationship between e-business and e-commerce
Regional Training Workshop for Enterprise Support Agencies to Promote E-business for SMEs in the Greater Mekong Subregion (GMS), 26-28 June 2006, Bangkok
E-business and e-commerce
7E-Business concepts
Regional Training Workshop for Enterprise Support Agencies to Promote E-business for SMEs in the Greater Mekong Subregion (GMS), 26-28 June 2006, Bangkok
E-business defined from the following perspectives:
• Communications: delivery of goods, services, information, or payments over computer networks or any other electronic means
• Commercial (trading): provides capability of buying and selling products, services, and information on the Internet and via other online services
8E-Business concepts (cont.)
Regional Training Workshop for Enterprise Support Agencies to Promote E-business for SMEs in the Greater Mekong Subregion (GMS), 26-28 June 2006, Bangkok
• Business process: doing business electronically by completing business processes over electronic networks, thereby substituting information for physical business processes
• Service: a tool that addresses the desire of governments, firms, consumers, and management to cut service costs while improving the quality of customer service and increasing the speed of service delivery
9E-Business concepts (cont.)
Regional Training Workshop for Enterprise Support Agencies to Promote E-business for SMEs in the Greater Mekong Subregion (GMS), 26-28 June 2006, Bangkok
• Learning: an enabler of online training and education in schools, universities, and other organizations, including businesses
• Collaborative: the framework for inter- and intra-organizational collaboration
• Community: provides a gathering place for community members to learn, transact, and collaborate
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Source: Choi et al. (1997), p. 18.
Dimensions of e-business/e-commerce
Regional Training Workshop for Enterprise Support Agencies to Promote E-business for SMEs in the Greater Mekong Subregion (GMS), 26-28 June 2006, Bangkok
11Dimensions of e-business/e-commerce
Regional Training Workshop for Enterprise Support Agencies to Promote E-business for SMEs in the Greater Mekong Subregion (GMS), 26-28 June 2006, Bangkok
• Pure vs. Partial: based on the degree of digitization of:- Product- Process- Delivery agent
• Traditional commerce: all dimensions are physical
• Pure e-business: all dimensions are digital
• Partial e-business: all other possibilities include a mix of digital and physical dimensions
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Business-to-business (B2B)Business that sells products or provides services to other businesses
Business-to-consumer (B2C)Business that sells products or provides services to end-user consumers
Consumer-to-consumer (C2C)Consumers sell directly to other consumers
Types of e-business
Regional Training Workshop for Enterprise Support Agencies to Promote E-business for SMEs in the Greater Mekong Subregion (GMS), 26-28 June 2006, Bangkok
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Business-to-government (B2G)Government buys or provides goods, services or information to/from businesses or individual citizens
Business-to-employee (B2E)Information and services made available to employees
online
Mobile commerce (m-commerce)E-commerce transactions and activities conducted in a wireless environment
Collaborative commerce (c-commerce)Individuals or groups communicate or collaborate online
Types of e-business (cont.)
Regional Training Workshop for Enterprise Support Agencies to Promote E-business for SMEs in the Greater Mekong Subregion (GMS), 26-28 June 2006, Bangkok
14Evolution of e-business
Regional Training Workshop for Enterprise Support Agencies to Promote E-business for SMEs in the Greater Mekong Subregion (GMS), 26-28 June 2006, Bangkok
How it started
• Electronic data interchange (EDI) - electronically transfer routine documents (application enlarged pool of participating companies to include manufacturers, retailers, services)
• 1970s: innovations like electronic funds transfer (EFT) - funds routed electronically from one organization to another (limited to large corporations)
• 1990s: the Internet commercialized and users flocked to participate in the form of dot-coms, or Internet start-ups
15Traditional Purchasing Process FlowTraditional Purchasing Process Flow
Source: ariba.com, February 2001.
Regional Training Workshop for Enterprise Support Agencies to Promote E-business for SMEs in the Greater Mekong Subregion (GMS), 26-28 June 2006, Bangkok
16Evolution of e-business (cont.)
Regional Training Workshop for Enterprise Support Agencies to Promote E-business for SMEs in the Greater Mekong Subregion (GMS), 26-28 June 2006, Bangkok
• 1997: Introduction of a brand new phrase – e-business
• 1999: The emphasis of e-business shifted from B2C to B2B
• 2001: The emphasis shifted from B2B to B2E, c-commerce, e-government, e-learning, and m-commerce
• 2004: Total online shopping and transactions in the United States between $3 to $7 trillion
• E-business will undoubtedly continue to shift and change
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Informate
Interact
Integrate
Innovate
Brochure-ware
Order taking
Order processing
Business development
Where do you want to
Be and Go….
Levels of e-maturity
Regional Training Workshop for Enterprise Support Agencies to Promote E-business for SMEs in the Greater Mekong Subregion (GMS), 26-28 June 2006, Bangkok
18Evolution of e-business (cont.)
Regional Training Workshop for Enterprise Support Agencies to Promote E-business for SMEs in the Greater Mekong Subregion (GMS), 26-28 June 2006, Bangkok
The Future
By 2008:• Number of Internet users worldwide should reach 750 million
• 50 percent of Internet users will shop
• E-business growth will come more from:• B2C, B2B, e-government, e-learning, B2E, c-commerce
19Stakeholders
Regional Training Workshop for Enterprise Support Agencies to Promote E-business for SMEs in the Greater Mekong Subregion (GMS), 26-28 June 2006, Bangkok
E-Business relationships are formed with the following types of stakeholders:
• Internal stakeholders: Management and staff• Suppliers and manufactures• Customers• Intermediaries• Financial institutions• Web service providers• Associations• Web communities• Etc.
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Major Players
Regional Training Workshop for Enterprise Support Agencies to Promote E-business for SMEs in the Greater Mekong Subregion (GMS), 26-28 June 2006, Bangkok
21Major business pressures
Regional Training Workshop for Enterprise Support Agencies to Promote E-business for SMEs in the Greater Mekong Subregion (GMS), 26-28 June 2006, Bangkok
22E-business framework
Regional Training Workshop for Enterprise Support Agencies to Promote E-business for SMEs in the Greater Mekong Subregion (GMS), 26-28 June 2006, Bangkok
E-Business does not affect an organization’s fundamental goals, rather it provides a new ways to achieve them:
• E-business adoption strategy and directionVision must be communicated to all stakeholders
• The interaction among stakeholdersSmaller network, more flexible organizations, shifting priorities and roles
• Information system and technology infrastructureMechanism to improve, enrich, change, and deepen relationships with key stakeholders
• CultureNeed to adapt the new way, will impact on rules, belief, norms, and behaviours
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Q & A
Conclusion
Regional Training Workshop for Enterprise Support Agencies to Promote E-business for SMEs in the Greater Mekong Subregion (GMS), 26-28 June 2006, Bangkok