Module 1 What is ebusiness Agenda Ebusiness and

Module 1 What is e-business?

Agenda • 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 Regional Training Workshop for Enterprise Support Agencies to Promote E-business for SMEs in the Greater Mekong Subregion (GMS), 26 -28 June 2006, Bangkok 2

3 “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

E-business and E-commerce 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. Regional Training Workshop for Enterprise Support Agencies to Promote E-business for SMEs in the Greater Mekong Subregion (GMS), 26 -28 June 2006, Bangkok 4

E-business vs. E-commerce 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. Regional Training Workshop for Enterprise Support Agencies to Promote E-business for SMEs in the Greater Mekong Subregion (GMS), 26 -28 June 2006, Bangkok 5

E-business and e-commerce 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 6

E-Business concepts 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 Regional Training Workshop for Enterprise Support Agencies to Promote E-business for SMEs in the Greater Mekong Subregion (GMS), 26 -28 June 2006, Bangkok 7

E-Business concepts (cont. ) • 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 Regional Training Workshop for Enterprise Support Agencies to Promote E-business for SMEs in the Greater Mekong Subregion (GMS), 26 -28 June 2006, Bangkok 8

E-Business concepts (cont. ) • Learning: an enabler of online training and education in schools, universities, and other organizations, including businesses • Collaborative: the framework for inter- and intraorganizational collaboration • Community: provides a gathering place for community members to learn, transact, and collaborate Regional Training Workshop for Enterprise Support Agencies to Promote E-business for SMEs in the Greater Mekong Subregion (GMS), 26 -28 June 2006, Bangkok 9

Dimensions of e-business/e-commerce Source: Choi et al. (1997), p. 18. Regional Training Workshop for Enterprise Support Agencies to Promote E-business for SMEs in the Greater Mekong Subregion (GMS), 26 -28 June 2006, Bangkok 10

Dimensions of e-business/e-commerce 11 • 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 Regional Training Workshop for Enterprise Support Agencies to Promote E-business for SMEs in the Greater Mekong Subregion (GMS), 26 -28 June 2006, Bangkok

Types of e-business Business-to-business (B 2 B) Business that sells products or provides services to other businesses Business-to-consumer (B 2 C) Business that sells products or provides services to end-user consumers Consumer-to-consumer (C 2 C) Consumers sell directly to other consumers Regional Training Workshop for Enterprise Support Agencies to Promote E-business for SMEs in the Greater Mekong Subregion (GMS), 26 -28 June 2006, Bangkok 12

Types of e-business (cont. ) Business-to-government (B 2 G) Government buys or provides goods, services or information to/from businesses or individual citizens Business-to-employee (B 2 E) 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 Regional Training Workshop for Enterprise Support Agencies to Promote E-business for SMEs in the Greater Mekong Subregion (GMS), 26 -28 June 2006, Bangkok 13

Evolution of e-business 14 How it started • Electronic data interchange (EDI) - electronically transfer routine documents (application enlarged pool of participating companies to include manufacturers, retailers, services) • 1970 s: innovations like electronic funds transfer (EFT) - funds routed electronically from one organization to another (limited to large corporations) • 1990 s: the Internet commercialized and users flocked to participate in the form of dot-coms, or Internet start-ups Regional Training Workshop for Enterprise Support Agencies to Promote E-business for SMEs in the Greater Mekong Subregion (GMS), 26 -28 June 2006, Bangkok

Traditional 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 15

Evolution of e-business (cont. ) • 1997: Introduction of a brand new phrase – e-business • 1999: The emphasis of e-business shifted from B 2 C to B 2 B • 2001: The emphasis shifted from B 2 B to B 2 E, c-commerce, egovernment, 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 Regional Training Workshop for Enterprise Support Agencies to Promote E-business for SMEs in the Greater Mekong Subregion (GMS), 26 -28 June 2006, Bangkok 16

Levels of e-maturity 17 Innovate Business development Integrate Order processing Interact Order taking Informate Where do you Brochure-ware want to Be and Go…. Regional Training Workshop for Enterprise Support Agencies to Promote E-business for SMEs in the Greater Mekong Subregion (GMS), 26 -28 June 2006, Bangkok

Evolution of e-business (cont. ) 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: • B 2 C, B 2 B, e-government, e-learning, B 2 E, c-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 18

Stakeholders 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. Regional Training Workshop for Enterprise Support Agencies to Promote E-business for SMEs in the Greater Mekong Subregion (GMS), 26 -28 June 2006, Bangkok 19

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 20

Major 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 21

E-business framework 22 E-Business does not affect an organization’s fundamental goals, rather it provides a new ways to achieve them: • E-business adoption strategy and direction Vision must be communicated to all stakeholders • The interaction among stakeholders Smaller network, more flexible organizations, shifting priorities and roles • Information system and technology infrastructure Mechanism to improve, enrich, change, and deepen relationships with key stakeholders • Culture Need to adapt the new way, will impact on rules, belief, norms, and behaviours Regional Training Workshop for Enterprise Support Agencies to Promote E-business for SMEs in the Greater Mekong Subregion (GMS), 26 -28 June 2006, Bangkok

Conclusion 23 Q&A Regional Training Workshop for Enterprise Support Agencies to Promote E-business for SMEs in the Greater Mekong Subregion (GMS), 26 -28 June 2006, Bangkok