1.BEC 416 - E-BUSINESS STRATEGY LECTURE 1 - Ebusiness Strategy

SCHOOL OF BUSINESS AND
MANAGEMENT SCIENCES
Electronic Commerce Department
Course Narration: E-Business Strategy
Course Code: BEC 416
LECTURE 1 E-Business Strategy
Course Leader: Mr Dewah
BEC 416 - E-BUSINESS STRATEGY

Monday, 01 August 2022 1
LECTURE 1 - BY R. DEWAH - 2022
Strategy – An overview
• E-business defined
• E-business strategy

What is E-business >> CON’T
• IBM which was one of the first suppliers to
use the term in 1997 defines e-business) as –
the transformation of key business processes

through the use of Internet technologies.
• This means doing business in the electronic
network using digital devices and digital
networks (ICTs).

• Chaffey describes e-business as : when a
business has fully infused ICTs into its
operations, potentially redesigning its
business processes around ICT or completely
re-inventing its business model .
• E-business = the integration of all business
activities or internal processes of a business
using ICT.

• E-business aims at
• enhancing the competitiveness of an
organization by deploying innovative ICT
throughout an organization and beyond,
linking it to its partners and customers.
• using ICT to automate existing business

processes, to achieve business process
transformation.

• All electronically driven information exchanges
between an organization and its internal and
external stakeholders supporting a range of:
– business processes : Finance, CRM, SCM, HR etc).
– Buy-side : transactions/processes with its suppliers
and other partners. E.g. importing from China
– Sell-side : transactions/processes with its customers.
E.g. selling to customers in Muzarabani or exporting
to South Africa.
– Global E-Business

• E-business applies technologies based on the
– Internet,
– World Wide Web and
– wireless communications
to transform/improve businesses processes.

(building efficient, effective, reliable processes etc).


• If information is restricted to stakeholders
inside an organization, this is an intranet.
• If information is extended to external

stakeholders, but not everyone beyond the
organization only relevant players, this is an
extranet.
• The Internet refers to the physical network

that links organisations across the globe.
Benefits of e-business
• General benefits from user opinion:

– Removes location and availability restrictions.
The internet reaches across the world and spans
all time zones. E.g. Ebay, Amazon, Onai, Sasai etc.
– Reduces time and money spent. No need to
physically be present.
– Expedites customer service. E.g Mukuru,
MojoMula,
– Shows you how to improve.
– Keeps your business relevant.

Benefits of e-business
• In a survey of 275 managers responsible for
intranets featured in CIO (2002), the main
benefits mentioned by managers were:
– Improved information sharing (customer service),
97%
– Enhanced communications and information sharing
(communications), 95%
– Increased consistency of information (customer
service), 94%
– Increased accuracy of information (customer
service), 93%
– Reduced or eliminated processing, 93%
– Easier organizational publishing, 92%

• NB – At times the term e-commerce is used
to mean e-business. E-commerce can best be
considered as a subset of e-business and this
is the perspective we will take in this course.
– E-commerce resides inside e-business and is

concerned with financial transacting. E.g.
Ecocash, OneMoney, Swipe machines etc.

What is E-business
• The term ‘e-business’ is used as a concept
which can be applied to e-business strategy.
• This course focuses on formulating e-business

strategy.
• The term strategy is common in the military.
• General MacArther of the US in World War II,
leapfrogging strategy.
• Military views strategy as the winning
formula.
E-Business Strategy >> CON’T
• Chaffey (2009) defines strategy as
– an ongoing process of evaluating purpose
– as well as questioning, verifying and redefining
the manner of interaction with the competitive
environment.
• He opines that strategy defines the future
direction and actions of an organization or
part of an organization.

• Lynch (2010) describes strategy as an
organization’s sense of purpose.
• However, he notes that purpose alone is not

strategy; plans or actions are also needed.

• Johnson and Scholes (2006) define corporate
strategy as:
– the direction and scope of an organization
– over the long-term
– which achieves competitive advantage for the
organization
– through its configuration of resources
– within a changing environment
– to meet the needs of markets and
– to fulfil stakeholder expectations.

• Johnson and Scholes (2006) note that orgn’s
have different levels of strategy:
– Corporate strategy – overall purpose and scope
of org’n.
– Business unit strategy defines how to
successfully compete in a particular mkt.
– Operational strategy – concerned with achieving
corporate and business unit strategies by
operationalization in the different functional
areas or business processes. E.g. Mkting, SCM,
HR, Finance etc.

• Grant (1997) describes strategy as the
unifying theme that gives coherence and
direction to the individual decisions of an
organization or a person.
• He notes that strategy is a winning formula.
Without it failure is inevitable.
• E-business strategies share much in common
with corporate, business and marketing
strategies.

• E-business strategy defines :
– how an organization gains value internally
– from using electronic networks,
– such as through sharing employee knowledge
and
– improving process efficiencies
– through intranets.

• Where does e-business strategy fit?
– If it is included in a functional strategy
• e.g marketing or IT,
• the challenge is that it may not receive buy-in at
higher levels of org’n planning.
– Successful orgs include e-business strategy as an

element of corporate strategy.

if e-business strategy is not clearly defined
• Missed opportunities from lack of comprehensive
evaluation of available options
• Insufficient resourcing of e-business initiatives
• More savvy competitors gain competitive advantage
• Inappropriate direction through poorly defined
objectives
• Limited integration of e-business at technical level
resulting in silos of information in processes.
• Resource wastage through duplication
• Limited sharing of best practice.

to avoid challenges when e-business strategy is not clearly defined
• To avoid these challenges:
– E-business strategy should be based on corporate
objectives.
– The corporate strategy should be based on new
opportunities and threats related to electronic
network adoption identified through
environment analysis and objectives defined in
e-business strategy.
• Therefore e-business strategy should not just
support corporate strategy but influence it as
they complement each other.
e-business strategy >> CON’T
• E-business strategies create new e-channel

strategies.
• E-channel strategies define specific goals and

approaches for using electronic channels.

• Question?
• What is an e-Channel? Give examples.

why e-business strategy >> CON’T
• E-channel strategies also need to define
– how electronic channels are used in conjunction

with other channels as part of a multi-channel
e-business strategy.
– how different marketing and supply chain

channels should integrate and support each
other.


• END


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SCHOOL OF BUSINESS AND

Course Leader: Mr Dewah

BEC 416 - E-BUSINESS STRATEGY

BEC 416 - E-BUSINESS STRATEGY

the transformation of key business processes

BEC 416 - E-BUSINESS STRATEGY

BEC 416 - E-BUSINESS STRATEGY

• using ICT to automate existing business

BEC 416 - E-BUSINESS STRATEGY

BEC 416 - E-BUSINESS STRATEGY

to transform/improve businesses processes.

BEC 416 - E-BUSINESS STRATEGY

BEC 416 - E-BUSINESS STRATEGY

• If information is extended to external

• The Internet refers to the physical network

• General benefits from user opinion:

BEC 416 - E-BUSINESS STRATEGY

BEC 416 - E-BUSINESS STRATEGY

– E-commerce resides inside e-business and is

BEC 416 - E-BUSINESS STRATEGY

• This course focuses on formulating e-business

BEC 416 - E-BUSINESS STRATEGY

• However, he notes that purpose alone is not

BEC 416 - E-BUSINESS STRATEGY

BEC 416 - E-BUSINESS STRATEGY

BEC 416 - E-BUSINESS STRATEGY

BEC 416 - E-BUSINESS STRATEGY

BEC 416 - E-BUSINESS STRATEGY

– Successful orgs include e-business strategy as an

BEC 416 - E-BUSINESS STRATEGY

BEC 416 - E-BUSINESS STRATEGY

• E-business strategies create new e-channel

• E-channel strategies define specific goals and

BEC 416 - E-BUSINESS STRATEGY

• What is an e-Channel? Give examples.

BEC 416 - E-BUSINESS STRATEGY

– how electronic channels are used in conjunction

– how different marketing and supply chain

BEC 416 - E-BUSINESS STRATEGY

BEC 416 - E-BUSINESS STRATEGY

BEC 416 - E-BUSINESS STRATEGY

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