MSc International Business The University of Birmingham International

MSc International Business The University of Birmingham International e-Business 2014 Lecture 6: Importance of Information Systems Social Networking and e-business Strategy Mobile Commerce and Online Auctions 1

Learning Objectives The University of Birmingham • The Importance of Information Systems and Strategic Information Systems (SIS) in e-business • How social networking systems emerged from virtual communities • How social networking tools such as blogs are used in online business activities • About mobile technologies that are now used to do business online • How Social Networking Systems (SNS) and m-commerce are expected to dominate e-business in the future • How online auctions and auction-related businesses have become a major new commercial activity introduced as part of electronic commerce 2

Learning Objectives (2) The University of Birmingham • Describe and understand various types of Information Systems (IS) and their role in managing the modern enterprise • Understand the ways in which IS and Information and Communications Technology (ICT) supports the supply-chain, business strategy and business development • Understand the role of Strategic Information Systems (SIS) and their contribution to establishing competitive advantage 3

Reading, Online Activities The University of Birmingham • • Schneider Chapter 6 Chaffey: Chapter 5 Laudon & Traver: Chapter 7 Turban et. Al: Chapters 7 - 9 Farhoomand: Chapters 2, 4 & 5 Chen: Chapters 3, 6 & 7 Jelassi & Enders: Chapters 4, 5 & 6 • • • http: //www. centrelink. gov. au/internet. nsf/about_us/ebusiness_strategy. htm http: //www. entemp. ie/publications/enterprise/2007/ebusinessstrategypublished. pdf http: //www. davechaffey. com/E-business/C 5 -Strategy/ http: //www. powerhomebiz. com/vol 103/implement. htm http: //www. ecommerce-digest. com/strategies. html http: //www. systemswiki. org 4

Information Systems The University of Birmingham • Information System: socio-technical entity, not just hardware and software • Impacts on ALL aspects of the business: • Job Descriptions • Changing Skills • Training and Staff Development • Management Tasks • Organisational Structure • IS is not detached nor isolated, with its own existence / objectives; it is subordinate to the objectives of the business, and intended to deliver against these objectives 5

Generic System Model The University of Birmingham Input: can be thought of as raw materials for a process Process: business operations that transform the inputs Output: result of the transformation (products/information) Feedback mechanism: information on system performance is used, is gathered and “fed back” to the process or organizational Control mechanism: if alterations are needed, the control mechanism undertakes the task (e. g. a thermostat) 6

Characteristics of Systems The University of Birmingham • Work towards collective goal (objective) • Do not exist in isolation • Can be complex; composed of many smaller, interlinked sub-systems • Subsystems in an IS interact by exchanging information • Linkage between systems can vary greatly • Systems are hierarchical • Systems use feedback to function 7

Feedback: positive or negative The University of Birmingham • Positive: reinforcing loop • Negative: balancing loop (goal-seeking) Feedback: process by which part of the output of a system is returned To its input to affect the further output of the system 8

Feedback: Reinforcing / Balancing • A reinforcing loop is one in which the interactions are such that each action adds to the other. Any situation where action produces a result which promotes more of the same action, it is representative of a reinforcing loop. • The University of Birmingham A balancing loop is one in which action attempts to bring two things to agreement. Any situation where one attempts to solve a problem or achieve a goal or objective is representative of a balancing loop. 9

Systems Thinking The University of Birmingham • A systems view entails considering the whole and the parts at the same time. • It is quite different from the concept of Analysis, which consists of breaking things down into smaller pieces to simplify the study. • Systems Thinking (ST) is an extremely powerful way of getting to understand complexity in virtually every academic discipline. • I invite you all to visit www. systemswiki. org , join in the discussions and learn how to apply ST to REAL-WORLD problems. 10

So, what is a BIS? The University of Birmingham • “group of interrelated components that work collectively to carry out input, processing, output, storage and control actions in order to convert data into information products that can be used to support forecasting, planning, control, coordination, decision-making and operational activities in an organization. ” [Bocij, et al (2003)] • Otherwise, it is the glue to hold the organization together • EVERY business is in the INFORMATION business • EVERY transaction is based firstly on information exchange, and possibly followed by exchange of money and goods or services • A BIS makes dealing with transactions far more efficient 11

Data, Information, … The University of Birmingham 12

Purposes of BIS The University of Birmingham • To enable the organization to add value (and thereby to survive and grow) • How? Two Main areas: • Operational Information Systems: • Transactions Processing • Process control systems • Office automation systems • Management information Systems: • Decision Support Systems • Information reporting systems • Executive Information Systems • Real-Time Business Analytics Systems (Performance Dashboards) 13

BIS and Strategic Advantage The University of Birmingham • The objective in the new, connected and globalised world is to develop and sustain competitive advantage. Strategies (broadly): • Cost leadership [“pile them high; sell them cheap”: Wal-Mart; ASDA, etc. ] • Product Differentiation [Porsche; Armani; Rolex; etc] • Innovation [Tesco; amazon; e. Bay; Google, etc] 14

Value chains and competitive advantage The University of Birmingham • Useful analytical framework: Porter; (1985) Deise (2000) • http: //epubl. ltu. se/1404 -5508/2004/097/LTU-SHU-EX-04097 -SE. pdf • Organization’s value-chain (internal) • Value network (includes the VCs of partners / suppliers /customers / strategic allies (external) Human resource management Corporate infrastructure Technology development product margin Procurement customer Inbound logistics Operations Outbound logistics Marketing and Sales After-sales service margin 15

More modern view (Deise et al 2000) Pr ocureme nt s Logistics Store Manage ment Sal The University of Birmingham Customer Retention es See also “Value Net” from previous Lecture 16

BIS as a tool in strategy The University of Birmingham • BIS: Business Information System(s) • Web transaction logs (built into web development) • Cookies and Web bugs (cookies OK; web bugs not – may be malicious), e. g. “spyware” See: http: //w 2. eff. org/Privacy/Marketing/web_bug. html) • Databases, data warehouses, and data mining • Advertising networks • Customer relationship management (CRM) systems 17

BIS Contribution? 1. 2. 3. 4. 5. 6. 7. The University of Birmingham Improving operational efficiency Raising barriers to entry (IPR, etc) Locking in customers Promoting business innovation Increasing switching costs for Customers Leverage (up-sell and cross-sell) Any other ideas? 18

Internet Marketing Technology The University of Birmingham • Three broad impacts: § Internet has broadened the scope of marketing communications (global REACH) § Internet has increased the RICHNESS of marketing communications (variety of media) § Internet has greatly expanded the information intensity of the marketplace (low-cost, interactive information exchanges) 19

e-commerce and Marketing IS Source: Laudon & Traver The University of Birmingham 20

Web Transaction Logs The University of Birmingham • Built into Web server software • Records user activity at a Web site • Web. Trends a leading log analysis tool www. webtrends. com • Can provide treasure trove of marketing information, particularly when combined with: § Registration forms – used to gather personal data § Shopping cart database – captures all item selection, purchase and payment data § Identifies IP address, landing page, pages visited, images viewed, length of time on each page object, pages not visited, where viewer came from, where viewer went next, etc. See also: www. adobe. com/Website_Analytics 21

Example Log (4 seconds) The University of Birmingham 22

Use of Log Data The University of Birmingham 23

More Recent Logfiles http: //www. weblogexpert. com/ The University of Birmingham 24

Questions for Discussion The University of Birmingham • Online Merchants collect huge amounts of customer data: Why? What do they do with it? What is the ROI? • How is the data analysed? Data-mining techniques • What about non-purchasers? Why don’t they buy? • Use “click-stream” analysis on search strategies • Multi-product firms: capitalise on on-line purchasing through economies of scope (single underlying transactions technology, that can be adapted to re-brand products differently, depending on market segment being hunted) 25

Databases and Warehousing The University of Birmingham Database: Software that stores records and attributes Database management system (DBMS): Software used to create, maintain and access databases SQL (Structured Query Language): Industry-standard database query and manipulation language in a relational databases Relational database: Represents data as two-dimensional tables with records organized in rows and attributes in columns; data within different tables can be flexibly related as long as the tables share a common data element Data warehouse: Database that collects a firm’s transactional and customer data in a single location for offline analysis by marketers and site managers 26

Relational Database View Note: IP address should read e-mail address. The University of Birmingham 27

Data-Mining The University of Birmingham • Set of analytical techniques that look for patterns in data of a database or data warehouse, or seek to model the behaviour of customers • Types include: • Query-driven – based on specific queries • Model-driven – involves use of a model that analyses key variables of interest to decision makers • Rule-based – examines demographic and transactional data of groups and individuals at a Web site and attempts to derive general rules of behaviour for visitors • Collaborative filtering – behavioural approach; site visitors classify themselves into affinity groups based on common interests; products are then recommended based on what other people in the group have recently purchased (Used by Amazon and many other websites) See Virtual Communities (later slides) 28

Data Mining and Personalisation The University of Birmingham 29

Intelligent Collaborative Filtering The University of Birmingham • Collaborative filtering automates the process of collecting and distributing recommendations from other users • Early efforts suffered from defects (start-up effect, popularity effect, misplaced-consumer effect) • Solutions include adding human editors, asking consumers to establish own profiles • Amazon uses collaborative filtering to make suggestion of products you might like to buy • See http: //www. ecademy. com/node. php? id=54879 30

Advertising Networks The University of Birmingham • See: http: //lists. econsultant. com/top-10 advertising-networks. html • And http: //www. google. com/doubleclick/insights/case studies/index. html • Best known for ability to present users with banner advertisements based on a database of user behavioural data • Double. Click: best-known example • Ad server selects appropriate banner ad based on cookies, Web bugs, backend user profile databases 31

How Double-click Works The University of Birmingham 32

Customer Relationship Management (CRM) The University of Birmingham • IS: Repository of customer information that records all of the contacts that a customer has with a firm and generates a customer profile available to everyone in the firm with a need to “know the customer” • Customer profiles can contain: • Map of the customer’s relationship with the firm • Product and usage summary data • Demographic and psychographic data • Profitability measures • Contact history • Marketing and sales information 33

CRM Schematic The University of Birmingham 34

Market Entry Strategies The University of Birmingham • For new firms: § Pure clicks/first mover § Mixed “clicks and bricks”/alliances • For existing firms: § Pure clicks/fast follower § Mixed “clicks and bricks”/brand extensions 35

Market Entry Strategies: Value Curve High The University of Birmingham Performance Value curve of traditional bookstores Value curve of Amazon. com Low Price Convenience Selection range Speed Face-to-face interaction 36

Value Innovations: Focus on Customers rather than Products The University of Birmingham 37

Value Innovations Focus on Customers The University of Birmingham 38

Identify Opportunities The University of Birmingham 39

Strategic Shift: New Markets The University of Birmingham 40

Timing is CRITICAL! The University of Birmingham 41

Establishing Customer Relationship The University of Birmingham • Permission marketing: Marketing strategy in which companies obtain permission from consumers before sending them information or promotional messages (example: opt-in e-mail) • Affiliate marketing: Marketing strategy that relies on referrals; Web site agrees to pay another Web site a commission for new business opportunities it refers to the site • Viral marketing: Process of getting customers to pass along a company’s marketing message to friends, family, and colleagues • Brand leveraging: Process of using power of an existing brand to acquire new customers for a new product or service 42

Customer Retention The University of Birmingham • Mass market-personalisation continuum ranges from mass marketing to direct marketing, to micromarketing, to personalized, one-to-one marketing • One-to-one marketing: Involves segmenting the market on a precise and timely understanding of an individual’s needs, targeting specific marketing messages to these individuals and then positioning the product vis-à-vis competitors to be truly unique 43

Mass-Market Spectrum The University of Birmingham 44

Online Marketing Research The University of Birmingham • Market research: Involves gathering information that will help a firm identify potential products and customers • Two general types: • Primary research – involves gathering first-hand information using techniques such as surveys, personal interviews and focus groups (may be costly in money and time) – Much easier to achieve online: lots of online survey software available: e. g http: //www. surveymonkey. com – http: //www. freeonlinesurveys. com/ • Secondary research – relies on existing, published information as basis for analyzing market 45

Types of Survey Questions Source: Laudon & Traver The University of Birmingham 46

Management Issues: IS and Strategy The University of Birmingham • How does e-business strategy differ from traditional business strategy? • How should we integrate e-business strategy with existing business and IS strategy? (ABSOLUTELY CRITICAL) Remember the dot. com bust in 2001? • How should we evaluate our investment priorities and returns from e-business? (This is REALLY difficult) 47

e-business Strategy The University of Birmingham • For me, an IS strategy or change management strategy which ensures resources are managed effectively to achieve opportunities from Buyside and Sell-side e-commerce. [refer back] • Also involves deploying IS to manage administrative internal process and employee knowledge • Involves management of information systems resources (e-business applications, infrastructure/hardware and people/change/ knowledge management). 48

Generic Strategy Process Source: Chaffey The University of Birmingham 49

Dynamic Strategy Model The University of Birmingham 50

Portfolio Analysis (B 2 B) The University of Birmingham 51

SWOT Analysis: B 2 B The University of Birmingham 52

Competitive Threats The University of Birmingham 53

Strategic Objectives The University of Birmingham 54

Information and Business Value Assess each organization on scale of 1 - 10 (low – high use of information) The University of Birmingham 55

Product fit to e-business Transactions The University of Birmingham 56

Strategy Definition The University of Birmingham 57

Strategic Options: Web as Channel The University of Birmingham Online Business (e. g. Cisco. com) Online Business (e. g. amazon. com) Traditional Business 58

Channel Selection The University of Birmingham • Right channelling can be summarized as: • Reaching the right customer – Using the right channel • With the right message or offering – At the right time • Examples: • B 2 B serve SMEs through e-channels, and larger clients through personal service • Encourage consumers to buy, and serve through lower cost electronic channels • Encourage offline fulfilment/conversion as appropriate • Different levels of service/promotion for different customers. 59

Use of WWW to Support Growth The University of Birmingham 60

Strategy Implementation The University of Birmingham Strategy Implementation Planning Execution Control • Supply Chain Management Strategies • E-Marketing Strategies • Planning Scheduling and Change Management • e-business Analysis and Design • Implementation, Maintenance and Control 61

Virtual Communities: Recent Arrivals The University of Birmingham • Virtual community (Web community, online community): BBS; Usenet newsgroups • Gathering place for people and businesses • No physical existence – online Social Networks • Current forms • Web chat rooms • Sites devoted to specific topics or general exchange of information, photos, videos • People connect and discuss common issues, interests • Considerable social interaction • Relationship-forming activities • Similar to physical communities 62

Social Networking Emerges The University of Birmingham • As the Internet and Web grew: • Experience of sharing new online communication faded • New phenomenon in online communication began • Multiple common bonds joined people with all types of common interests • Social networking sites • Allow individuals to create and publish a profile, create a list of other users with whom they share a connection (or connections), control that list, and monitor similar lists made by other users • Six Degrees (1997) • Friendster (2002): Had features found in today’s social networking sites 63

Social Networking (2) The University of Birmingham • • Facebook. com: World online community Linked. In: devoted to business connections Tribe. net: mainly US and Canada Baidu. com. cn: Chinese SNS (5 th in World rankings: Alexa) • Ren: Chinese version of Face. Book • You. Tube: popularized video inclusion • My. Space: popular with younger Web users • Twitter • Users can send short messages to other users who sign up to follow their messages (tweets) • Google+ • Basic idea behind social networking • People invited to join by existing members • Site provides directory • New members work through friends established in the community 64

Social Networking Websites The University of Birmingham 65

Global Reach of SNS The University of Birmingham 66

More on Social Networking The University of Birmingham • Early blogs focused on technology topics • 2004: blogs used as political networking tool • 2008: all major candidates using blogs • Communicating messages, organizing volunteers, ; raising money; meetups; Flash. Crowds, • Retailers embracing blogs • Way to engage visitors not ready to buy from site • Marketing and supply managers saw social networking benefits of enhancing B 2 B relationships • Business uses • CNN; BBC; Sky Broadcasting; Commercial TV Stations • Blog information included in television newscasts 67

Business Use of SNS The University of Birmingham • Newspapers • Inviting information and opinion contributions • Targeting 18 - to 35 -year-old generation • Participatory journalism • Trend toward having readers help write the online newspaper • Blogs can become businesses in themselves • Must generate financial support (fees, advertising) • Social networking Web sites for shoppers • Social shopping • Practice of bringing buyers and sellers together in a social network to facilitate retail sales • Example: craigslist • Operated by not-for-profit foundation • All postings free (except help wanted ads) 68

Other SN Activities • • The University of Birmingham Idea-based social networking • Social networking sites form communities based on connections among people • Idea-based virtual communities • Communities based on connections between ideas • Idea-based networking • Participating in idea-based virtual communities • Examples: del. icio. us site, 43 Things site Virtual learning networks • Distance learning platforms for student-instructor interaction (Canvas – and other examples (better: Moodle) • Tools include: • Bulletin boards, chat rooms, drawing boards • Moodle and u. Portal • Open-source software projects devoted to virtual learning community development • Open source software (rapidly developing) • Developed by a programmer community • Software available for download at no cost • Widely promoted by Universities and not-for-profit groups 69

Revenue Models for SNS The University of Birmingham • Advertising-supported social networking sites • Smaller sites with specialized appeal • Can draw enough visitors to generate significant advertising revenue: e. g. Google; Facebook, etc. • Sites with higher number of visitors can charge more • Stickiness: important element in site’s attractiveness • Rough measure of stickiness • Time user spends at the site • Repeat visits to site (checked via cookies) • All European sites now required to indicate when cookies are deployed on sites (EU since 2012) 70

Popularity and Stickiness Why no You. Tube? I don’t know. The University of Birmingham 71

Revenue Models for SNS The University of Birmingham • Advertising-supported social networking sites (cont’d. ) • Social networking sites • Members provide demographic information • Potential for targeted marketing: very high • High visitor counts • Can yield high advertising rates • Second-wave advertising fees • Based less on up-front site sponsorship payments • Based more on revenue generation from continuing relationships with people who use the social networking sites 72

Revenue Models for SNS (2) The University of Birmingham • Fee-based social networking • Google Answers site • Early attempt to monetize social networking • Questions answered for a fee • Google operated service from 2002 to 2006 • Similar free services • Yahoo! Answers, Amazon (Askville) • Uclue (paid researchers earn 75 percent of total fee) • Advocates claim better quality • Fee-based Web sites can generate revenue by providing virtual community interaction 73

Revenue Models for SNS (3) The University of Birmingham • Microlending sites • Function as clearinghouses for microlending activity • Microlending • Practice of lending very small amounts of money • Lend to people starting or operating small businesses (especially in developing countries) • Microlending key element • Working within social network of borrowers • Provide support, element of pressure to repay • Examples: Kiva and Micro. Place 74

Revenue Models for SNS (4) The University of Birmingham • Internal social networking • Provide social interaction among organization’s employees • Run on organization’s intranet • Save money (less paper) • Provide easy access to employee information • Good for geographically dispersed employees • Adding wireless connectivity • Combine second-wave technology with first-wave business strategy • Wireless communications with internal Web portals 75

Mobile Commerce The University of Birmingham • Short messaging service (SMS) • Allows mobile phone users to send short text messages to each other • 2008: United States developments allowing phones as Web browsers • High-speed mobile telephone networks grew dramatically • Manufacturers offered range of smart phones with Web browser, operating system, applications • Potential for mobile commerce (m-commerce) 76

Mobile Operating Systems (OS) The University of Birmingham • Japan and Southeast Asia mobile commerce • Much larger online business activity • Had high-capacity networks before U. S. • NTT Do. Co. Mo, Japan’s largest phone company • Pioneered mobile commerce in 2000 • U. S. mobile commerce beginning in 2008 • Introduction of smart phones and high-capacity networks • Smart phone examples: Apple i. Phone, Palm Pre, several Black. Berry models • Android operating system 77

Mobile Operating Systems (OS) (2) The University of Birmingham • Mobile commerce browser display options • Wireless Application Protocol (WAP) – not much good at first; too slow; poor graphics; little content • Allows Web pages formatted in HTML to be displayed on small-screen devices • Display a normal Web page on the device • Made possible by increased screen resolution • Example: Apple i. Phone and other smart devices; Tablets and Android devices • Designing Web sites to match specific smart phones • Much more difficult to accomplish • Developments occurring very rapidly 78

Mobile Operating Systems (OS) (3) The University of Birmingham • Apple, Black. Berry, Palm • Use proprietary operating systems • HTC, Motorola, Nokia • At one time created their own operating systems and software applications • Now use a standard operating system provided by a third party • Most common third-party operating systems • Android, Windows Mobile, Symbian • Android operating system • Most popular and fastest growing third-party operating system • Developed by Google • Open source • Smart phone operating system • Cannot be deleted/switched by user 79

Approximate Market Shares (US) The University of Birmingham 80

Mobile Apps The University of Birmingham • Common operating systems emergence • Occurred due to a change in the way software applications developed and sold • Old U. S. mobile phone company revenue strategy • Control application software (apps) • Apple turned old revenue strategy on its head • AT&T agreed to be sole carrier for i. Phone • Apple Apps for i. Phone online store • December 2013: Apple signs up with China Telecoms • Independent developers create apps and sell them • Black. Berry and Palm followed Apple’s lead in apps 81

Mobile Apps (2) The University of Birmingham • Some mobile app sellers include advertising element • Messages displayed from advertisers • Part of the app screen or in a separate screen • Mobile apps’ advertising space marketed in same way as Web sites’ banner advertising • Companies moving to mobile commerce • Determine suitability of Web site to mobile devices • May be pertinent to develop separate Web site optimized for mobile users 82

Mobile Apps (3) The University of Birmingham • Mobile phones for online banking • In early stages in the United States • Physicians using smart phones • Read ECGs, managing diabetic patients • Medical students: Epocrates (drug information database) • Phones’ global positioning satellite (GPS) service capabilities • Allow mobile business opportunities • Apps tools/resources • Swebapps, App Inventor, Task. City 83

Tablet Devices The University of Birmingham • Tablet devices • 2010: Apple’s i. Pad introduced • Smaller than laptop computer; larger than smart phone • Wireless phone carrier’s service or local wireless network Internet connection • Larger screen size better suited for online consumer products purchases • Rapidly adopted by Senior Managers and Board Level • BYOD effect seen in businesses worldwide • PC Sales appear to have peaked and now dropping very quickly • What will be next “Killer App”? Wearable Devices – Google Glass? i. Watch? 84

Mobile Payment Apps The University of Birmingham • Earlier Electronic Wallets – a global failure • Mobile wallets • Mobile phones functioning as credit cards • Japan’s NTT Do. Co. Mo phones combined capabilities • Generate significant business • Widespread credit card use in U. S. has limited use of mobile phone payments • 2011: Phone readers offered by American Express, Visa, Master. Card • Google Wallet for Android phones introduced 85

Online Auctions The University of Birmingham • General consumer auctions • e. Bay: registration required, seller fees, rating system • Seller’s risk: buyer uses stolen credit card; buyer fails to conclude transaction • Buyer’s risk: no item delivery; misrepresented items • Most common auction format: English auction • • Seller may set reserve price Bidders listed: bids not disclosed (until auction end) Continually updated high bid amount displayed Private auction option available 86

Online Auctions The University of Birmingham • Business opportunity perfect for the Web • Auction site revenue sources • Charging both buyers and sellers to participate • Selling advertising • Targeted advertising opportunities available • Online auctions capitalize on Internet’s strength • Bring together geographically dispersed people sharing narrow interests • Auction: seller offering item for sale • • • Bids: price potential buyer willing to pay Bidders: potential buyers Private valuations: amounts buyer willing to pay Auctioneer: manages auction process Shill bidders: work for seller or auctioneer • May artificially inflate price 87

Key Characteristics of Auctions The University of Birmingham 88

Online Auctions and Other Biz The University of Birmingham • Online auction business: rapidly changing • Three auction Web site categories • General consumer auctions • Specialty consumer auctions • Business-to-business auctions (e. g. Alibaba; Global Source, Dutch flowers and vegetables, etc. ) • Liquidation Auctions; Liquidation Brokers • Overstocking Auctions • Varying opinions on categorizing consumer auctions • Business-to-consumer • Consumer-to-business 89

Supply-Chain-Related Auctions The University of Birmingham 90

Auction-Related Services The University of Birmingham • Entrepreneurs encouraged by e. Bay and other auction site growth • Provide various kinds of auction-related services • Escrow services • Auction directory and information services • Auction software (for sellers and buyers) • Auction consignment services • Auction escrow services • Buyers’ common concern: seller reliability • Buyers protect interests in high-value items • Independent party holds payment until: • Buyer receives item • Buyer satisfied item is as expected • May take delivery of item from seller • Perform buyer inspection (qualified to do so) • Charge fees • Percent of item’s cost, subject to minimum fee 91

Summary The University of Birmingham • Information Systems: Critical aspect of successful ebusiness strategy • IS used for identifying prospects, providing information, segmentation, profiling, tailoring product / service offering, etc • IS strategy need to be closely aligned with all aspects of overall Corporate strategy, Marketing strategy, Market segmentation, Marcomms • Focus moves in e-business from product to Customer • Superior CRM: Defensible, sustainable competitive advantage • Strategic Information System (SIS): Basis for cost-effective and tailored approach to product and service offerings • Development of SNS and Online Auctions. 92