E-business research paper
Presented by
Group-
Vidyut
Himanshu Jadaun(22)
Manpreet Nagi(31)
Pallab Bose(46)
DEFINITION
E-business (electronic business) , derived from
such terms as “e-mail” and “e-commerce”, is
the conduct of business on internet, not only
buying and selling but also servicing customers
and collaborating with business partners
E-business is just business using electronic
network to transform a business process or
business system to create superior value for
current or potential customers
Companies are using the web to buy parts and
supplies from other companies, to collaborate
on sales promotion and to do joint research
Some Features Of E-business….
Links their internal and external data processing
systems more efficiently and flexibly.
E-business refers to more strategic focus with an
emphasis on the functions that occur using
electronic capabilities.
E-business involves business processes spanning the
entire value chain: electronic purchasing and
supply chain management, processing orders
electronically, handling customer service, and
cooperating with business partners.
Special technical standards for e-business facilitate the
exchange of data between companies.
E-business can be conducted using the Web, the
Internet, intranets, extranets, or some combination
of these.
One of the first to use the term was IBM, when, in
Ebiz vs E-comm
Electronic business transactions involving money
are “E-Commerce" activities.
E-commerce refers to online transactions - buying
and selling of goods and/or services over the
Internet, E-business covers online transactions,
but also extends to all Internet based
interactions with business partners, suppliers
and customers such as: selling direct to
consumers, manufacturers and suppliers;
monitoring and exchanging information;
auctioning surplus inventory; and collaborative
product design. These online interactions are
aimed at improving or transforming business
processes and efficiency.
Improved accuracy, quality and time required for updating and
delivering information on products and/or services.
Access for customers to catalogues and prices - 24 hours x 7
days.
Improved ease, speed and immediacy of customer ordering.
Enhanced market, industry or competitor intelligence acquired
through information gathering and research activities.
New distribution channels via the electronic delivery of some
products and services, for example, product design
collaboration, publications, software, translation services,
banking, etc.
Expansion of customer base and growth in export
opportunities.
Reduces routine administrative tasks (invoices and order
records) freeing staff to focus on more strategic activities.
What E-business is not
a bolt on business; rather than a
integral component of it
about technology
a middle management initiative
Tied to the particular department or
functional area
Application of E-Business
Manufacturing sector
Tourism
Telecommunication
Hospitals
Retail
Customer service
Auction
Classification by provider and
consumer
business-to-business (B2B)
business-to-consumer (B2c)
business-to-employee (B2E)
business-to-business-to-consumer
(B2B2C)
business-to-government (B2G)
Contd…
government-to-business (G2B)
government-to-government (G2G)
consumer-to-consumer (C2C)
consumer-to-business (C2B)
Mobile commerce
I commerce
E learning
L–commerce
Exchange
E–tailing
Some of the initiative of E-business
Student services
Employee services
Business and related services
Benefits to Organizations
Global reach
Cost reduction
Supply chain improvements
Extended hours: 24/7/365
Customization
Efficient procurement
No city business permits & fees
Benefits to Society
Telecommuting
Higher standard of living
Hope for the poor
Availability of public services
Benefits to Consumers
Ubiquity
More products & services
Cheaper products & services
Instant delivery
“Get it your way”
Limitations of E-Business
Host of security
Legal & financial problems
The incoherence of the web
Concerns about security & flexibility
in using web as a purchasing tool
Legal & Regulatory aspects of
E-Business
The rapid development of e-business
has been such that it is difficult for
legislators to catch up
The exponential rise in Internet usage
& trading has not been met with the
adoption of legal regulations
The law & regulation of e-business is
a rapidly developing area
attempting to keep track of the
growth of online business
Information and communication
technology
Information and communication
technologies(ICT) is an umbrella
term that covers all technical
means for processing and
communicating information.
It includes
Communication protocol
Media
Computing ,data storage
Need for ICT
Allow user to participate
ICT tools can be used to find explore
analyze, exchange and present
information responsibly and without
discrimination
ICT can be employed to give users
quick access to ideas and
experiences from a wide range of
people ,communities and cultures.
Impact of ICT
Influence on productivity
Economic impact
Social impact
Influence on innovation
Influence on productivity
The effect of ICT on productivity was
much higher in younger firms.
Region wise –US enterprise
Example-ICT and related effect raised
Australia's annual multi factor
productivity growth by around 0.2%
points in the 1990
Economic impact
ICT’s have increased international
interconnectedness
Speed up the process of globalization
ICT’s have enabled corporation to
outsource jobs.
Social impact and influence on
innovation
Demand for highly skilled specialist
Competitive pressure
Examples -manufacturing sector ,
service sector such as tourism .
E-Business: Business
perspective
Economic opportunities
Penetration of international market
potential
Principles of E-Business:
Researching basic contractual issues
Putting into play basic business
principles
E-Business: Consumer
perspective
Perceived lack of security for
conducting financial transactions
Reliability of on-line purchasing
Privacy considerations in terms of
personal information sharing
Unfamiliarity with the Internet
environment
Principle con n ection required to conduct
e-business
Business to consumer Business to business
Business to employee Business to stakeholder
ERP with E-Business
To complement e-business a need for an
internal transaction system arises which is
provided by ERP.
E -B u y E R P E -S e ll enterprises can
With the e-buy/ERP/e-sell
easily connect both suppliers and customers.
Share holders
ERP
Researchers &
customers developers
suppliers
Outsourcing
Service
providers
Business partners
Advisers Internet
distributors
Complementary technologies of
ERP and E-Business
Ø ERP is the internal technological hub
of single enterprise helping in
supply chain & demand chain and
facilitate the organization to
coordinate information.
Ø Web based technology extends each
enterprise’s internal infrastructure
to the external environment.
Ø
Integrating E-business & ERP
E-business operates under the assumptions-
Control of business processes can be shared or
dispersed among any organization
People need access to small qty of some
transactional data in real time
Many people participate in variety of processes
The ERP providers must overcome this issue in one
of the 3 ways-
Must redesign the interfaces, processes and
underlying architecture for a variety of user
who require flexibility
Must learn to use a new set of web based
technologies and incorporate web based
feature into their software offering
E-BUSINESS SOLUTIONS
INSTALLATION PROCESS
Pitfalls of E-business solutions installation
process
Senior managers do not spend enough time and
efforts to learn and understand the solutions.
The end users do not receive required training
In many cases, IT infrastructure is not up-to-date enough
and lacks power to support the new solution.
The time and money allocated to the project are far less
than required.
Preparation
Education and Training
Implementation
Before considering an e-business solution, make sure
that there is a sound business need to get it. E-
marketplace, Private exchange, Business portal
are few of the e-business solutions that help
attracting new customers and markets.
Keep track of the new technologies and keep an eye
to your competitors e-business strategies. E-business
is an extremely fast moving segment
MARRIOTT INTERNATIONAL
( A E-BUSINESS
This CASE)
case discusses the customer-focused e-business
strategy of Marriott International (Marriott), a world
leader in the hospitality industry and franchisor of a
broad portfolio of hotels and related lodging facilities.
Founded by J. Willard Marriott, the company is now led by son
J.W. (Bill) Marriott Jr.
Today, Marriott International has about 3,150 lodging
properties located in the United States and 67 other
countries and territories.
In year 2003, it had a network in excess of 2,600
operating units in the US and a workforce of 145,000
employees, spread over 65 countries across the world.
Marriott’s diverse portfolio of popular hotel brands included
leading brands such as Marriott, JW Marriott,
Renaissance, Ramada International, Courtyard,
Residence Inn, and The Ritz-Carlton, among others.
Delighting Customers
Since its inception, Marriott has focused on providing
excellent customer service. The company offered
personalized services to its clients, whom it referred to as its
‘guests.’
It had introduced several innovative technologies and
implemented them even before its competitors did. For
instance, in the 1980’s, the company launched Marriott
Automated Reservation System for Hotel
Accommodation (MARSHA), a totally new concept of
hotel reservation in the hospitality industry at that time.
Marriott made continuous improvements in its business
processes in its efforts to ‘delight’ its customers. In 1998,
the company adopted an e-business strategy to re-
orient itself to serve its customers better.
The company was operationalizing a strategy to switch over
from a decentralized property-orientation to a
centralized customer-orientation in its services...
The E-Business Strategy
Marriott’s e-business strategy aimed at transforming
itself from a property-focused to a customer-
focused company Previously, Marriott measured its
financial performance on the basis of the revenues
earned for each of its individual property.
The e-business strategy emphasized on increasing
revenues earned per customer.
The four key objectives of the e-business strategy
included serving customers proactively,
personalizing the service offerings according to the
needs and preferences of the customers,
enhancing brand loyalty and awareness, and
cross-selling...
The Website and E-Business
System
The website’s home page had five main icons
including hotel directories, reservations,
meeting planners, travel agents and a
suggestion box.
The hotel directories section had details such as
the name of the hotel, the address and phone
numbers of all the hotels in the Marriott chain
across the world.
Clients could select the city and the hotel where
they wanted accommodation, on the screen...
The Benefits
In 1999, Marriott earned revenues of $150 million from
online bookings through its website.
Estimates for the year 2000 indicated that every month,
the website received three million hits, making it
one of the largest viewed websites in the US
hospitality industry.
By 2002, the website emerged as a money-spinner for
Marriott with online sales of $1 bn...
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