Lecture 1b: The world of e-business

Question 1

Definition of “E-commerce”

Answer 1

The buying and selling of products and services via the internet and the world wide web.

Types e-commerce:
1. Business-to-Consumer: e-commerce between organizations and individual consumers.
2. Business-to-business: e-commerce between businesses. Accounts for a much larger portion of e-commerce than business-to-consumers.
3. Business-to-administration: Businesses sells tools to public administration and government.
4. Consumer-to-administration: between individual and government. ex. payments for public administration costs as Tax and health services

Question 2

Definition of “E-business”

Answer 2

E-business is integrating external company processes with an organizations internal business processes:
1. Product development
2. Planning forecasting and replenishment
3. Procurement and order management
4. Operations and logistics.

Question 3

Compared to E-commerce, E-business is what?

Answer 3

• A more generic term
• Refers to information exchange, related to selling and buying
• It implies business process integration

E-business processes are integrated End-to-end across the company, with key partners, suppliers and customers. Internal and external processes are linked more efficiently and flexible.

Question 4

The reason for firms to create ability to exchange transactions over the internet

Answer 4

• The internet is publicly accessible, with few geographical constraints and larger scale connectivity.
  -It offers you the potential to reach the widest number of trading partners.
• You can advertise, search, buy and sell on this medium.

Question 5

Definition of “CRM, Customer Relationship Management”

Answer 5

Front office systems, that help the enterprise deal directly with their customers.

Question 6

Definition of “ERP, Enterprise Resource Planning”

Answer 6

Systems that integrate and automate many of the business practices associated with the operations and production aspects. It includes:
1. Production: manufacturing planning and execution process.
2. Buying a product: procurement process
3. Sales of products/services:
4. Costing, paying bills and collecting.

Question 7

Definition of “SCM, Supply Chain Management”

Answer 7

performs the functions of procurement of materials. This includes transformation of these materials into intermediate and finishes products, and distribution. Main parts:
1. Supply
2. Manufacturing
3. Distribution

Question 8

Definition of “Knowledge management”

Answer 8

Knowledge regarding markets, products, processes, technologies and organizations.

Question 9

Definition of “E-Market”

Answer 9

An electronic gathering place that brings multiple buyers and sellers together.

Question 10

“Buy side” of e-business sides

Answer 10

Organizations that use e-business facilities for their buying needs.

Question 11

“selling side” of e-business sides

Answer 11

Businesses that sell their products via the transaction mechanisms offered in e-businesses applications.
- Manage multiple selling channels
- Ability to take multiple types of orders from customers
- Ability to differentiate and customize products and services from other suppliers.
- Ability to adapt and grow the e-Business without dramatic technology changes.

Question 12

E-business Requirements

Answer 12

1. Identify/measure business objectives
2. Ensure organizational/operational flexibility
3. Re-think entire company supply chains
4. Transform the company to a process-centric one
   a. Define business processes
5. Understand security requirements
6. Align business organizations with a flexible IT architecture
7. Establish ubiquity within standards
   a. Efficient process management
   b. Efficient enterprise integration technology

Question 13

E-business Advantages

Answer 13

1. Improved operational efficiency and productivity
2. Reduction in cost of operations, products and services.
3. Improved competitive position
4. Penetration into new markets through new channel
5. Harmonization and standardization of processes
6. Improved relationships with suppliers and improved customer services

Question 14

E-business inhibitors

Answer 14

1. Management/Strategy Issues
   a. Lack of a clearly defined e-business strategy
   b. Organizational changes requires by e-business
   c. Management attitudes and organizational inflexibility
2. Cost/Financing
   a. Costs of implementation of e-business
   b. Calculating the Return on Investment (ROI)
3. Insufficient security & trust
4. Legal issues
5. Technology concerns
   a. Limited interoperability, as most existing applications
   depend on own solutions which do not interoperate.