COMP7580: E-Transformation in
Business
1. Introduction: From Net Commerce to
e-Enterprise and e-Government
Dickson K.W. Chiu
PhD, SMIEEE
(Thanks to Dr William Cheung)
1
Learning Objectives
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To introduce e-Transformation in Business
To clarify different views of e-Commerce /
e-Business
To understand the evolving aspects in
different e-Transformation phases
To overview e-Enterprise and business
process reengineering
To overview e-Government
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1.1 e-Transformation in Business
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Vending Machine On-line
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What are transformed?
How are they transformed?
Why do they need to be transformed?
Who will be affected in what ways?
Transforming a vending machine…
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e-Business – What are transformed?
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Form of information and documents
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E.g., invoice, customer information, contract, product catalog,
company news, payment records, …
Processes for managing, analyzing and using them
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Functional perspective: accounting, sales and marketing,
production, design, human resource, …
Organizational perspective: Operational, Knowledge,
Management and Strategy
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e-Business - How are they transformed?
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Electronically, but more due to Internet and Web
technologies
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A unified(?) way to represent information and
document for sharing and integration
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proprietary -> http, HTML, Web server, Web client and server
programming
Perl, PHP, JSP, Java Bean, .Net, Apache, Tomcat, …
Data Schema, Database, Knowledge Representation (Semantic
Web)
Oracle, MySQL, MS SQL Server, XML, RDF, OWL, …
A unified(?) way to represent software systems’
interface and business processes
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Service-oriented computing, workflow representation and
management
BEA Weblogic, RosettaNet, MS BizTalk, ebXML, …
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e-Business –
Who will be affected in what ways?
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Clients/Customers (e.g., personalized services)
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Company staff (e.g., decision support systems)
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Cost: New experience (UI, security)
Benefit: More competitive price, better services/products,
better after-sales support -> better “customer experience”
Cost: New experience and operation (UI, security)
Benefit: higher productivity, fast decision & response
Business partners (e.g., SCM systems)
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Cost: New interface and operation (UI, security & trust)
Benefit: more efficient communication, easier to establish
business relationship dynamically, …
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e-Business –
Why is the transformation needed
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Stay competitive by value-adding …
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Operation Efficiency (for lowering the cost)
Strategic Positioning (for raising the selling price)
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e-Transformation in Other Sectors
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What are transformed?
How are they transformed?
Why do they need to be transformed?
Who will be affected in what ways?
Can you repeat the same exercise
for e-Government, e-Health?
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1.2 Different Views
10
Limited Views on E-Commerce
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Corporations
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Electronic data interchange (EDI)?
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General public
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Electronic messages standard via a private network
http://www.pharogen.com/edi.asp#whatis
http://supplier.arvinmeritor.com/cvs_edi/ae/edi/TS830_Example
_1.shtml (an example)
Buying and selling on the Web?
Association for Electronic Commerce
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Doing business electronically? Call Centers?
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CommerceNet’s Views
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An industry consortium at www.commerce.net
Buying and selling information, products, and
services (e-Commerce)
The use of inter-networked computers to create and
transform business relationships
(e-Business and e-Enterprise)
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Internally: transfer and share information through intranets
to improve decision-making and eliminate duplication of
effort
Externally: part from transactions, also built on building,
sustaining, and improving relationships
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The Scope of Net Commerce
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Supply side
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Inter-organizational
material, repair, & operations (MRO) procurement,
and logistics
manufacturing and distribution
“Internal”
Demand side
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order entry, catalog management and customer
care
=> Main Case Study of this course
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Vending Machine Again
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e-Commerce: Payment
e-Business:
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Machine -> CocaCola warehouse for refill
CRM for where to put the machine and what to be
sold
Mobile payment solutions …
Transforming a vending machine
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1.3 Evolving aspects in different
e-Transformation phases
15
Net Commerce
4 phases of Net commerce
*not a single step!
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Evolving Aspects in e-Transformation
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Business Models
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e-Application Categories
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How to accomplish… ?
e-Application Functionalities
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What is to be accomplished?
What is offered that helps to accomplish… ?
To support the vision and strategy of the company
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A Web-based system has no value by itself if it is not
developed with a strategic plan
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Brochureware
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Business Model (B2C)
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Use the net as:
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Customer interaction
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key medium for global marketing
a low-cost repository of product and service information 
static documents and simple multimedia
reading text
view pictures
Transactions are performed over traditional means
Now, we still go the shops to buy most of our need…
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e-Commerce
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Focus on consumer transactions and interactions over the
Internet
Business Model
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Characterized by
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buying and selling to consumers online (B2C)
the .com mania - lots of new companies operating online
content-aggregation business model - focus on consumer
founder and situation driven
Some success factors
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Branding
Marketing
Personalization of service
Creation of customer community
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e-Commerce Functionalities & Examples
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e-Tailing and Consumer Portal (CDNOW):
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Bidding and Auctioning (eBay):
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online catalogs, bid boards, account management, and notification
Consumer Care and Management (e-Trade):
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online catalogs, personalization, advertising, shopping carts, and
online communities
personalization, self-service, immediacy, and information
Electronic Bill Payment (AT&T):
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bill consolidation, analysis and reporting, payment processing, and
integration
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e-Business
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Business Model
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Characterized by
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Focus on B2B applications over the Internet
evolve from well-established brick-and-mortar companies
seeking process improvement
focus on an organization’s core competencies
process aggregation oriented business model
process-driven; also technology-driven
Some success factors
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create and integrate the right processes
agile applications
ability to integrate applications and data
right organizational structure
Means of overcoming political obstacles
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e-Business Functionalities & Examples
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Virtual Marketplace (Dell)
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Procurement & Resource Management
(MasterCard)
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Request for info, request for proposal, requisitioning,
purchase orders, payment, and supplier management
Extended Value Chain (FedEx)
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Catalog, buying tools, integration, and payment option, ..
Demand and supply planning, logistics, and production
planning
Customer Relationship Management (HP)
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Self-service, solution-center, personalization, and account
management functionalities
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SCM vs ERP vs CRM
Supplier
Supply
Chain
Mgmt
Manufacturer
Enterpris
e
Resource
s
Planning
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Customer
Customer
Relationship
Mgmt
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e-Enterprise (1)
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Convergence of B2C and B2B functionalities for those
who serve both market segments
New value chain  “Click and Mortar”
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combining traditional bricks-and-mortar assets with the
efficiency of cybermediation
Co-opetitive virtual organizations
Supply side:
Procurement
of raw
material
cybermediation
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Demand side:
consumer
retailing and
customer
management
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e-Enterprise (2)
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Complex combinations of internal and external
business processes and relationships with …
Suppliers
Customers
Distributors
Company A
Partners
Competitors
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e-Enterprise (3)
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Business Model (B2C + B2B)
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Applications
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Based on people (role) aggregation
Focused on mission-critical, inter-organizational business
processes
CEO drives organizational changes
Results come out via iterative and methodological
efforts using technology (as an enabler and as a
commodity )
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e-Enterprise (4)
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Value Proposition
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more than manufacturing techniques or prime location outlets
Speed and Agility
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Gained by leveraging existing asset base through the Net
Example 1, TimKin Corp. (bearings producer)
 Self-service answers to customer about product availability and
price (CRM) through linkage to the back-end inventory
database -> 15 percent service reps moved to sales
Example 2, AutoNation (automobile dealership network)
 Use an on-line infrastructure to channel leads to its physical
infrastructure of nationwise dealership.
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1.4 e-Enterprise and Business
Process Reengineering
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Business Process Reengineering (BPR)
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A radical reinvention of how corporations do their
work.
Conventional BPR
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From business process automation to completely
reengineering all the processes
(NOT to follow the old way of doing things).
Enabled by Web, XML, PKI, …
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One can shift focus from internal to external process
Dynamic, real-time information sharing become
possible
E.g., How about from document exchange via emails
(Push) to setting up VPN (Pull)? How about one-to-one
marketing?
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Where to Begin?
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References
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Faisal Hoque, Business Models, Architecture,
and Components, Chapter 1, Cambridge
University Press, 2000
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1.5 e-Government
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E-Government
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E-government: The use of IT and e-commerce to
provide access to government information and
delivery of public services to citizens and business
partners
Offers an opportunity to improve the efficiency and
effectiveness of the functions of government and to
make governments more transparent to citizens and
businesses by providing access to more of the
information generated by government
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Government-to-citizens (G2C)
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E-government category that includes all the
interactions between a government and its
citizens
Major features of government Web sites:
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phone and address information
links to other sites
publications
databases
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G2C
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Major areas of G2C activities:
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(cont.)
tourism and recreation
research and education
downloadable forms
discovery of government services
information about public policy
advice about health and safety issues
Useful in solving constituents’ problems
Netizen: A citizen surfing the Internet
Electronic Benefits Transfer (EBT)
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nationwide EBT system to deliver government benefits
electronically
deliver benefits to recipients’ bank accounts
smart card system for those without bank accounts
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Government-to-business (G2B)
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E-government category that includes interactions
between governments and businesses (government
selling to businesses and providing them with
services and businesses selling products and services
to government)
Group purchasing
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Forward e-auctions
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eFAST service conducts reverse auctions for aggregated
orders
auction surplus or other goods
Tax collection and management
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electronic filing of taxes is now available in over 100
countries
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Other E-Government Modes
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Government-to-government (G2G):
e-Government category that includes
activities within government units and those
between governments
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Government-to-employees (G2E):
e-Government category that includes
activities and services between government
units and their employees
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E-Government Transformation Process
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Implementing Issues of e-Government
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Transformation speed
G2B implementation
Security and privacy issues
Wireless applications
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E-Government Adoption
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http://www.comp.hkbu.edu.hk/~eee05
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http://www.comp.hkbu.edu.hk/~ctr
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