03/17/2003 EBUS/400 #1 -- Brian Smithson 1

EBUS/400

E-BusinessSession #1University of PhoenixSan Jose Learning Center, Room 11203/17/2003Brian Smithson

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AgendaPersonal introductionsCourse introductionDiscuss syllabusLearning Team setupSession contentReview and preparation for #2

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Facilitator introductionBrian Smithson – bjsmithson@email.uophx.edu25 years industry experience10+ years Internet experienceEngineering undergrad, Oregon Institute of Technology, 1978MBA, Golden Gate University, 1993Engineering, project, and product managementSee syllabus and faculty web page for details

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Student introductionsYour name? _____Where do (did) you work? _____What do (did) you do? _____Your experience using e-Businessas either a business or a consumer? _____Your experience being part of an e-Businessprovider? _____Your goals for and expectations ofthis course? _____

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Course IntroductionOverview and StrategyIT Infrastructure and Supply ChainMarketingLegal, Ethical, and Regulatory IssuesTrends

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SyllabusContact informationCourse follows the UnimoduleAssignment standardsLearning TeamsClassroom issuesGrades, attendance, etc.Questions?

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Learning Team setupExisting Teams?Learning Team Charters due week #2Learning Team Logs due each week (one copy)Learning Team Projects n Specified on last page of Unimodulen Written assignments due each weekn Presentation due week #5

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Session #1 contenteBusiness OverviewComponentsStrategyIntegrating questions

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eBusiness OverviewClass discussion:n What is eCommerce?n What is eBusiness?n How do the relate to each other?

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eBusiness vs. eCommerceeCommerce is a subset of eBusinesseCommerce typically represents financial transactions (banking, selling, buying, exchanges, etc.)eBusiness typically represents a wide range of transactions and interactions, including eCommerce transactionsBoth are accomplished electronically with little human interaction required

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Elements of eBusinesseCommerce (EC)

+ Business Intelligence (BI)+ Customer Relationship Management (CRM)+ Supply Chain Management (SCM)+ Enterprise Resource Planning (ERP)= eBusiness (EB)

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eCommerce

Electronic Market(Transaction Hander)

Product/service information requestPurchase requestPayment or payment advice

Purchase fulfillment requestPurchase / change request

Response to fulfillment requestShipping notice

Payment approvalElectronic transfer of funds Electronic transfer of funds

Shopper/Purchaser’s Bank

Payment remittance noticeElectronic transfer of funds

Transaction Handler’s Bank(Automated Clearing House)

Seller/Supplier’s Bank

Response to information requestPurchase acknowledgmentShipping noticePurchase/service delivery (if online)Payment acknowledgment

Seller/SupplierShopper/Purchaser

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Business IntelligencePolitical/Economic/Social IntelligenceMarket IntelligenceCompetitive IntelligenceCustomer Intelligence

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Customer Relationship Management

CustomersExtension

CustomersRetention

CustomersSelection

CustomersAcquisition

RelationshipMarketing

“What criteria determine who will be our most profitable customers?”

“How can we acquire this customer in the most efficient and effective way?

“How can we keep this customer for as long as possible?”

“How can we increase the loyalty and the profitability of this customer?”

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Supply Chain Management

2nd TierSupplier

Upstream Internal Downstream

2nd TierSupplier2nd TierSupplier

1st TierSupplier1st Tier

Supplier

Assembly/Manufacturing and

Packaging

DistributionCenters

Retailers

Customers

GrainProducer

ProcessingFacility

Packaging

Distributor

Store

Customers

CorrugateManufacturer

LumberCompany

LabelManufacturer

Grain CerealPackaged

Cereal

Labels

Wood

PaperboardPackaged

Cereal

Wood

Gen

eric

Cer

eal

Pro

du

ctio

n

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Enterprise Resource PlanningAnalytics:n Strategic enterprise

managementn Business analytics

Financials: n Financial Accounting n Managerial Accounting n Financial supply chain

management n Manager Self Service

Operations:n Purchase Order Management n Inventory Management n Production Management n Maintenance & Qualityn Delivery Management n Sales Order Management

Human Resources: n Employee Transaction

Management n Employee Lifecycle

Management n E-Recruiting n Employee Relationship

Management n Employee Self-Service n HCM Analytics

Corporate Services:n Real Estate n Incentive and Commission

Management n Travel Management

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What2What?B2B, B2C, C2C, C2B, B2E, B2B2C, ??2??Class discussion:n What do these acronyms stand for?n Examples of eachn General characteristics of web sites in each category

(navigation, presentation style, content, features, etc.)

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In-class exerciseIn your Learning Teams:

Take 15 minutes to:1. Choose one of the elements of eCommerce: BI, CRM, SCM, or ERP2. Identify a company, web site, industry, or market, that is familiar

in your group3. Is it B2B, B2C, or ?4. Discuss your chosen eCommerce element:

How is it employed?How well or poorly does it work?What suggestions would you make for improvement?How could it be similarly applied to other companies/sites/etc.?

Give a 5 minute presentation of results to the class

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Components of eBusinessBusiness StrategyIT Infrastructure (Workshop 2)Marketing (Workshop 3)Supply Chain (Workshop 4)Legal, Ethical, and Regulatory Issues (Workshop 5)

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Strategic Planning for eBusiness

Industry andCompetitive

Analysis

StrategyFormulation

ImplementationReassessment

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Industry and Competitive AnalysisDiscussion:

On what basis could you analyze your company against your competitors and your industry?

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A framework for analysis“Value Chain”n Looks at each function of a company that creates value, and

the cost of creating that valuen Looks at the return on the total value that has been createdn The difference between the cost and the return is the

“margin”

Why bother?n Analyze each function’s relative contribution to cost and

valuen Compare each function to the equivalent function of your

competitor, or your industry’s average, or that of another industry

n Goal is to increase the value and/or decrease the cost

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Value Chain

Firm Infrastructure

Human Resource Management

Technology Development

Procurement

InboundLogistics Operations

OutboundLogistics

Marketingand Sales

CustomerService

Margin

SupportActivities

PrimaryActivities

Value ofActivities

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Level of detailThe value chain can be analyzed at different levels:n Industryn Individual company plus its suppliers and/or customersn Individual companyn Functions within a company

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Value chain within a function

Firm Infrastructure

Human Resource Management

Technology Development

Procurement

InboundLogistics Operations

OutboundLogistics

Marketingand Sales

CustomerService

Margin

MarketingManagement Promotion

TechnicalLiterature

Sales ForceOperations

Sales ForceAutomationAdvertising

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SWOT“Strengths, Weaknesses, Opportunities, and Threats”Can be applied to the company as a whole or to each function or subfunction of the value chainAs with many analytical techniques, it is only as good as it is often performed

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StrengthsWhat advantages does the company have? n What does it do well? n And, what do other people see as its strengths?

Answers to these questions should come from the company’s viewpoint as well as the viewpoint of those with whom the company does business.To help identify these, make a list of the company’s characteristics. From this list, some will be strengths.

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WeaknessesWhat functions could be improved? n What is being done poorly? n And, what should be avoided?

As with strengths, analysis should be done from internal and external basis n Do those with whom you do business with or compete

against perceive a weakness that you do not see?n Are your competitors performing better?

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OpportunitiesWhat and where are your opportunities of improvement? What industry trends are facing the company? Opportunities can surface from such things as: n Changes in markets and technology n Changes in governmental regulations and policies n Changes in demographics. n Changes in the economyn Changes in the competitive landscape.

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ThreatsWhat obstacles does the company face? What is the competition doing? Are the required specifications for the job, products or services changing? How is technology change affecting the company’s position? What is the financial health of the company?

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In class exerciseIn your Learning Teams:

Consider the company, web site, industry, or market that you chose in the eCommerce exercisen Take 15 minutes to create a diagram showing a typical

Value Chain

Pick one activity in your Value Chainn Try a SWOT analysis (make up likely strengths, weaknesses,

opportunities, and threats)

Give a 5 minute presentation to the class

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Integrating QuestionsHow can value chain analysis be used in formulating an eBusiness strategy?How can SWOT analysis be used in formulating an eBusiness strategy?How can the organizational structure of a business be influenced by an eBusiness strategy?

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Next session…Individual assignmentsLearning Team assignmentsRefer to syllabus for policiesQuestions anytime via email