Today most companies have online presence by means of a web site or online

advertisement. Does it make them an e-company or a part of e-business? The

answer is NO. E-business does not mean having a web site or being present on
the Internet in any way, it means incorporating e-business strategy on a high level
through all value chain of a company. Often many of such companies are called
virtual companies (e.g. Google, Amazon, Ebay etc). However, after “dot.com”
industries bubble collapse this term is avoided to some extent. Moreover, more
traditional businesses have been shifting its focus to e-business such as banking,
industrial manufacturers and health care and so on. The impact of e-business
applications in public sector is still not clear and it is in its earliest stage, whereas
commercial e-business applications have proved to bring in a competitive
advantage.

Information technology is the study, design, development, implementation,

support or management of computer-based information systems, particularly
software applications and computer hardware. IT deals with the use of
electronic computers and computer software to convert, store, protect,
transmit and securely retrieve information.

It encompasses all forms of technology used to

• create

• store

• exchange and

• use information in its various forms (business data, voice conversations,

still images, motion pictures, multimedia presentations, etc. )

Appeal of doing business on the Web

• Brings together huge numbers of buyers & sellers and automate

transactions
 • Expands choices available to the buyers

• Gives sellers access to new customers

• Reduces transaction costs for all the players

What has Internet got to offer ?

• Global reach

• Removes barriers of time and space (amazon.com)

• Ease of price comparison

• Virtual salespersons

E-Commerce

E-commerce (electronic commerce/ EC) is the buying and selling of goods and
services on the Internet.

E-business

It is the conduct of business on the Internet, not only buying and selling but
also servicing customers and collaborating with business partners.

The E-business concept

• Any activity that connects critical stakeholders directly to business

systems via the web technology.

• Transforming business processes using the Internet.

E-business principles

• Care for those connected to you : customers and staff

• Create communities which organise around the customers

 • Focus on the value you deliver

• Focus on the 3 properties of information : content, structure and

publication

• Think network

• Protect and build your brand and good name

Key to success

• Strategy : Provide more value, charge less

• Execution : High speed

• Business model : Constant innovation

• Leverage knowledge base, external competencies

• People : Attract and groom the best

E-business strategies

• Reduce costs

• Improve processes

• Redefine processes

• Redefine business models

• Create markets

Examples
 Category

Product web
site

Shopping Company
Conclusion
destination Dell
• The degree to which modern technology can enable
organisation is today dependent only on human
Portal with
imagination and creativity. Amazon.com
• Everyday, new technologies are emerging which are
shopping
practical and affordable, which have a profound
impact on the way we work.
Yahoo
Virtual web eBay
auction

The Business/IT Planning Process

The business/IT planning process has three major components:
 Strategic development
 Resource management
 Technology architecture

Identifying Business/IT Strategies

The most valuable Internet applications allow companies to:
 Transcend communication barriers
 Establish connections that enhance productivity
 Stimulate innovative development
 Improve customer relations

Strategic Strategies
 Global Market Penetration
 Capitalize on a high degree of customer and competitor connectivity and
use of IT
 Use e-commerce websites with value-added information services and
extensive online customer support

Product and Service Transformation

 Develop and deploy new Internet-based products and services that
strategically reposition it in the marketplace

E-Business Strategy Examples

 Market Creator: be among the first to market and remain ahead of the
competition by continuously innovating

 Channel Reconfiguration: use the Internet as a new channel to directly

access customers, make sales, and fulfill orders

 Transaction Intermediary: Use the Internet to process purchases

 Infomediary: use the Internet to reduce the search cost; offer a unified
process for collecting the information needed to make a large purchase

 Self-Service Innovator: provide a comprehensive suite of services that the

customer’s employees can use directly

 Supply Chain Innovator: use the Internet to streamline supply chain

interactions
 Channel Mastery: use the Internet as a sales and service channel