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E-Business:: King Fahd University of Petroleum & Minerals

This document summarizes a presentation on e-business strategies, processes, and technologies. It discusses key trends driving e-business adoption like increasing customer expectations for speed and convenience. It also outlines the components of an e-business network and how networks benefit both users and enterprises. Finally, it assesses Saudi Arabia's strengths and weaknesses in e-business development.

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chyon
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50 views30 pages

E-Business:: King Fahd University of Petroleum & Minerals

This document summarizes a presentation on e-business strategies, processes, and technologies. It discusses key trends driving e-business adoption like increasing customer expectations for speed and convenience. It also outlines the components of an e-business network and how networks benefit both users and enterprises. Finally, it assesses Saudi Arabia's strengths and weaknesses in e-business development.

Uploaded by

chyon
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
You are on page 1/ 30

King Fahd University of Petroleum & Minerals

College of Computer Science & Engineering


Department of Computer Engineering
Short Course on

E-Business:

Strategies, Processes and Technologies

Iftikhar Nadeem
Senior Consultant, E-Business Solutions

Center for Economics & Management Systems


Research Institute, KFUPM

1-1-1

Introduction

Major Industry Trends


E-Business Drivers and Responses
What is eBusiness?
E-Business Networks
E-Government
E-Marketplaces
E-Business issues and Success Factors
E-Readiness
E-Business: the Case of Saudi Arabia
1-1-2

Market Value of an Organization


Tangible Assets

Intangible Assets

Buildings
Equipment
Furniture
Cash

Skills & competencies


Motivation of employees
Databases
Information technologies
Efficient & responsive processes
Customer loyalty & relationships

Value of tangible assets


1982: 62%
1992: 38%
2000: 10-15%
Source: Brookings Institute

1-1-3

Major Industry trends

Consumer trends
Service/process trends
Organizational trends
Enterprise technology trends

1-1-4

Consumer Trends
Speed of service
Self-service
Integrated solutions, not piecemeal products

1-1-5

Service/Process Trends
Convergence of sales & service: customization and
integration
Ease of use: make service consistent and reliable
Flexible fulfillment and convenient service delivery:
streamline your supply chain

1-1-6

Organizational Trends
Contract manufacturing: becoming brand intensive, not
capital intensive
Retain the core, outsource the rest: Business process
outsourcing
Increasing process transparency and visibility
Continuous innovation and employee retention

1-1-7

Enterprise Technology Trends


Enterprise applications: Connect the corporation
Infrastructure convergence: Increasing melding of voice,
data and video
Multichannel integration: computer telephony integration
and voice recognition
Wireless applications enter the mainstream
Leveraging legacy investment: The rise of middleware for
systems integration

1-1-8

Business Drivers of the New Economy

Global financial interdependence


Deregulation
Unrestricted capital flows
Digitization
Global communication and transportation
New geopolitical realities

1-1-9

Key Business Challenges

Agility and Speed


Focus on core competencies and processes
Customer centrality
Mass customization
Flexible IT architecture
Interoperability of infrastructure and applications
portfolios

1-1-10

New Business Models and Structures

Aggregators
Portals
Info-mediaries
E-tailers
Hybrids
Virtually integrated
Mega-mergers

Transformation:
From Product to Information
1-1-11

E-Business is About Business


Business
Driving IT

E-Business
IT Driving
Business
1-1-12

Major Benefits of eBusiness

Global reach
Reduced cost
Convenience
Higher productivity and efficiency

1-1-13

E-Business
E-Business is about enabling organizations to
cohesively bring together their processes and Internet
technologies for cost effectiveness, efficiency and
better relationships between partners.

1-1-14

E-Business
E-Business is the electronic connection of business operations to
customers, suppliers, employees and other partners. It includes,
but not limited to, product marketing, order entry, inventory
tracking, order fulfillment and after-sales support.

1-1-15

E-Commerce
E-Commerce has a narrower definition and only involves
buying and selling goods and services over the Internet. It is
normally limited to catalogs, order entry, authorization and
delivery confirmation.

1-1-16

The E-Business Network


Intranet and
Extranet
Network
Software

Network
Hardware

E-Business
Network
Enabling
Technology

Networking
Vendors
E-Commerce
Applications

1-1-17

eBusiness: Technologies and Skills

Web technologies
Database technologies
Integration technologies
Networking technologies
Security technologies
CIW Tracks:
Designer
Developer
Administrator
1-1-18

What is Important in an E-Business Network?

Functionality
Reliability
Security
Speed
Scalability
Access Control

1-1-19

Why Does an E-Business Network


Matter to a User?
To share knowledge and reap productivity gains by finding
information faster
To communicate faster with clients and suppliers
To provide options for teleworking
To implement web services
To enable teams to work collaboratively irrespective of
geography
To better automate business procedures

1-1-20

Why Does an E-Business Network


Matter to an Enterprise?

To create fundamental changes in business processes


To enable fast responses and agile maneuvering
To negotiate more effectively with suppliers
To create competitive advantage
To provide instant access to global markets
To lower costs
To enable the convergence of voice, data and video
To use the e-business as a key to business operations

1-1-21

CEOs are Focusing on These


E-Business Issues

Building customer loyalty


Achieving market leadership
Streamlining business processes
Creating new products/services
Ascertaining compliance
Reaching new markets

1-1-22

E-Business Best Practices

Personalize relations
Maintain visitor privacy
Make your site easy to use
Manage visitor perceptions
Maintain site consistency
Manage business knowledge
Response quickly

1-1-23

E-Business Hype Cycle


Visibility
Peak of expectation

Dot Com

True E-business

WWW
Disillusionment

Enlightenment

Tech Trigger

1990-96

97 98 99 2000 01 02 03 04 05 06 07 08 09 2010

1-1-24

Source: Gartner Group

Worldwide IT Spending Growth


(New Scenario)
%
12
10

10.6

10
10

11.3
10.5

8
7
6

Old
New

6.1

4
2.4

2
0
2000

2001

2002

2003

1-1-25
Source: IDC, October 18, 2001

Global E-Readiness
It describes the extent to which a countrys business environment
is conducive to Internet-based commercial opportunities

EIU E-Readiness Assessment Model 2001

Connectivity (30%)
Business Environment (20%)
E-Commerce Adoption (20%)
Legal Environment (15%)
Supporting E-Services (10%)
Social and Cultural Environment (5%)

1-1-26

Grouping of Countries by E-readiness Ranking

E-business leaders

E-business contenders

US (8.73)
Australia
UK
Canada
Norway
Sweden
Singapore
Finland
Denmark
Netherlands
Switzerland
Germany
Hong Kong (7.45)

Ireland (7.28)
France
Austria
Taiwan
Japan
Belgium
New Zealand
South Korea
Italy
Israel
Spain
Portugal (6.21)

E-business followers

Greece
Czech Republic
Hungary
Chile
Poland
Argentina
Slovakia
Malaysia
Mexico
South Africa
Brazil
Turkey
Colombia
Philippines

E-business laggards

Bulgaria (3.38)
China
Ecuador
Iran
Romania
Ukraine
Algeria
Indonesia
Nigeria
Kazakhstan
Vietnam
Azerbaijan
Pakistan (2.66)

Egypt (3.88)
Peru
Russia
Sri Lanka

Saudi Arabia (3.80)


India
Thailand
Venezuela
1-1-27

.Source:

The Economist Intelligent Unit, 2001

Internet Subscribers in the Arab Region


Rank
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18

Number of
Country
Subscribers
UAE
220,000
Bahrain
35,000
Qatar
25,000
Kuwait
55,000
Lebanon
75,000
Jordan
35,000
Palestine
12,000
Oman
28,000
Tunisia
70,000
Saudi Arabia
190,000
Egypt
70,000
Morocco
55,000
Algeria
45,000
Libya
4,000
Syria
8,000
Yemen
3,500
Sudan
7,000
Iraq
500
Total
938,000

Number of
Users per
3
3
3
3
3.5
6*
5
3
4
3
8**
4
4
5
4
4
4
25***

Number of
% of
Users
Population
660,000
24.44
105,000
16.67
75,000
10.27
165,000
8.25
262,500
6.56
210,000
4.57
60,000
3.53
84,000
3.36
280,000
2.89
570,000
2.59
560,000
0.82
220,000
0.73
180,000
0.6
20,000
0.4
32,000
0.18
14,000
0.08
28,000
0.08
12,500
0.06
3,538,000
1.29
1-1-28

Source: Ajeeb.Com

eBusiness: The case of Saudi Arabia


Strengths
Largest Arab economy
Free market mindset
Large trading community
Good teledensity
Hi growth in PC penetration
Modern infrastructure

Opportunities
Regional economic integration
Reduction in overhead costs
Expanding markets
Trade barriers coming down

Weaknesses
Lack of local IT professionals
High Internet access cost
L High implementation cost
o Lack of legal environment
w Arabization of content
Telcom operator monopoly

Threats

Regional initiatives
WTO (if not prepared)
Cultural backlashes
Internet (if not...)
1-1-29

Conclusions
E-Business is about business.
IT deployment decisions are
business/investment decisions.
IT investments make well-managed
companies better, and poorly-managed
companies worse.

1-1-30

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