E-Business
Defining E-Business
• In e-business, ICT (information and communications
technology) is used to enhance one’s business. It includes
any process that a business organization conducts over a
computer-mediated network.
• A more comprehensive definition of e-business is: “The
transformation of an organization’s processes to deliver
additional customer value through the application of
technologies, philosophies and computing paradigm.
Defining E-Business
• Three primary processes are enhanced in e-business
1. Production processes
Procurement, ordering and replenishment of stocks;
Processing of payments; electronic links with suppliers
2. Customer-focused processes
Promotional and marketing efforts, selling over the Internet,
processing of customers’ purchase orders and payments, and
customer support
3. Internal management processes
Employee services, training, internal information-sharing, videoconferencing, and recruiting
Nordstorm- Great Customer Service
1. 3D foot-scanning sizer
technology
Nordstorm- Great Customer Service
1. Mobile point of sale capabilities
that enable customers to check out
anywhere in store, negating the
need to queue up and wait to pay
2. ‘Personal Book’.
Recommendations for a customer
in email marketing campaigns
3.Using social networking to know
what they like, and what they
shopped but couldn't buy
OTIS Digitalization
• e*Logistics• To connect sales, factory, and field operations worldwide
through the internet.
• Otis defined four processes—sales, order fulfillment, field
installation, and job closing—and designed e*Logistics to
ensure that improvements in the way each process was
carried out occurred uniformly, every time, everywhere.
Eventually, Otis realized not only significantly shorter
sales-cycle times but higher revenues and operating
profit.
OTIS Digitalization
• Otis ONE – an enhanced service
that gives customers real time
data and transparency to elevator
operations.
• With Otis ONE, building
managers can monitor elevators
via the web or phone apps, and
maintenance engineers will be
able to spot, diagnose, and fix a
problem before anyone in the
building notices
OTIS Digitalization
• Otis rolled out an employee communications
programme. encouraged employees to initiate
more discussions around their career
development with their line managers
• Traditionally paper-heavy admin processes such
as overtime submissions and reimbursements
have become more organised and convenient
• Lee says: “We measure our success by
observing how significantly equipment uptime has
improved, along with how satisfied our workforce
is with the additional autonomy they’re given to
carry out their work.”
OTIS Digitalization
• Spare parts app to allow mechanics to
search for parts even while on-site with their
customers;
• An inspection app that replaces expensive
and heavy equipment;
• A safety app which offers an extra layer of
protection for mechanics; and more than a
dozen mobile apps to put the control in its
mechanics’ hands as well as to further open
the lines of communication with customers.
Is e-commerce the same as e-business?
• In e-commerce, information and communications
technology (ICT) is used in inter-business or interorganizational transactions (transactions between and
among firms/organizations) and in business-to-consumer
transactions (transactions between firms/organizations
and individuals).
Difference in E-Business vs E-Commerce
S.No
E-Business
E-Commerce
1
Superset
Subset of E-Business
2
Broader Term
Narrower Term
3
Beside Selling, includes marketing,
purchase, customer service etc
Mainly Selling, transfer of ownership
4
To bring & retain customers
To sell online
5
Covers Internal Processes also like
production, inventory management,
product development etc.
Covers outward processes like sales,
marketing, order taking, delivery,
customer service, purchasing of raw
materials
6
Complex execution & high risk
Relatively simpler
Advantages of E-business
•
•
•
•
Personalized service- e.g Nordstrom
High-quality customer service
Lower inventory cost
Worldwide reach of your business- Collaborating with
partners all over the world
• Improved supply chain management• Cost-effective Advertising along with Promotions- World
wide marketing using pay per click advertising, Affliliate
marketing
Advantages of E-business
• Cost-effective Advertising along with Promotions
World wide marketing using pay per click advertising,
Affliliate marketing
• Creating the Competitive Strategy
– Till the season 2007, Dell Inc. was selling computers only
through the actual World wide web as well as the phone
– ICICI Bank through technology lead to become largest
private bank of the country
• Curtailing Transaction Cost– Document preparation, reconciliation, mail preparation, telephone
calling, data entry, overtime and supervision expenses
Creating Competitive Advantage
First Bank to introduce Internet
Banking – ICICI BANK
Largest ATM network
Burberry Digital Transformation
• In September 2011, Burberry used Twitter and Instagram to unveil its
2012 collection prior to hitting the runway and they streamed the event
live on YouTube
• Acoustic – Launched in June 2010 Burberry Acoustic is a set of
exclusive videos showcasing young local UK music artists wearing
Burberry outfits
Burberry flagship store at Regent Street,
London store
• Store has 100 screens and 500 speakers spread across the building
showcasing digitized Burberry content
• RFID) chips fitted in certain products- when taken into changing rooms or
in front of screens display ramp visuals and other filmed footage of the
product
Dis-advantages of E-business
• Less security
• Costly business solutions for optimization- e.g SAP ERP
cost of 15-20 Cr Rs.
• Question of Safety - E.g of Verisign and e-Trust
• Data Security- Personal info,
• Site Integrity- Genuinity of site, trading your information
• System up gradation Case of DOS vs Windows and Text
based ERP Vs GUI based ERP
• Momentary Intangibility