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eBusiness eBusiness The Software Production View

Project Summary

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ObjectivesObjectives• Acquire experience with the activities

of the first phases of the SDLC– Problem analysis– Identification of the solution space and evaluation of

alternatives– Modeling and specification– Prototyping– Technology evaluation

• Apply in practice SA methods• Teamwork• Customer Interactions• Presenting the Results

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The Problem SpaceThe Problem Space

•Information gathering•(Business) domain analysis•Narrow the Scope ...

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eBusiness - the Target eBusiness - the Target DomainDomain

eBusiness is a framework for seamless integration of critical business systems and their direct connection to key constituencies (customers, employees, suppliers and distributors) via the Web (Internet, Intranet and Extranet). As all key players - customers, employees, suppliers and distributors - are connected to the business systems and share the information they need, eBusiness actually transitions the traditional business processes to a new level with the ultimate focus on customers and Customer Relationship Management (CRM).

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E-business is not just E-business is not just one one thingthing

• Customers use the term in various ways• Decision-makers from even the largest

businesses confess it’s hard to get a handle on

• E-business approach among large companies varies byLevel of Involvement

(pure play, alternative channel, etc.)

Area of Focus (customers, employees, suppliers)

Scope of Business (business-to-business vs. consumer;

genuinely global vs. multi-local)

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Four levels of Four levels of engagementengagement

• There are multiple models for e-business adoption, depending on level of involvement– Internet service & content providers (Yahoo!,

iVillage): e-business both product and channel– Internet pure plays: delivering real products

virtually (Amazon)– Mixed plays: Web is channel complementing

brick-and-mortar outlets (Barnes & Noble)– Non-transactional e-business: key is automating

other business processes besides sales

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Two types of business scopeTwo types of business scope

• Business-to-Consumer– The media attention is here, especially where nature of

product makes e-delivery a good fit – Early emphasis on transactions, often at the expense of

other e-business opportunities

• Business-to-Business– The biggest economic impact is and will be here– Looking for controlled evolution: need to build an integrated

architecture to support transformed business model– Within B2B, firm-to-firm interactions (EDI, for example), are

being matched or overtaken in importance by firm-to-individual interactions (FedEx). Many businesses report that Internet enables decision-making to shift from center to nodes, closer to source of needs.

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Two categories of Two categories of temperamenttemperament• Most large businesses see the Internet as

containing an element of threat (if not pure threat)– Many establishing defensive plays to ward off inroads from

smaller, more nimble competitors

• Who sees e-business as more opportunity than threat?– Those with products that can be easily delivered

over the Internet (music, information)– Those who broker or establish a market for

transactions (eBay, Priceline)– Visionaries who see the Internet as transformative

(very few in number) for their whole business

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Three meanings of e-Three meanings of e-businessbusiness

• Despite heavy use, “e-business” lacks a single fixed meaning. Speaking clearly means understanding the customer’s dialect: – e-business is equivalent to e-commerce (among

transaction-focused businesses)– e-business covers all business processes deployed

onto the Internet (sales, marketing, R&D, etc.); e-commerce is a subset of e-business covering transactions where money changes hands (among business with more diverse e-applications)

– e-business is a B-2-B function; e-commerce focuses on the consumer

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First stages of e-businessFirst stages of e-business

• For many large companies, the initial appeal of e-business is the big pipe:– large volumes of supplier data via EDI– large volumes of bandwidth to employee desktops– large volumes of customer transactions via e-

commerce, and extended customer reach in marketing/sales

• Another explosive growth curve will come through targeted knowledge delivery:– not just information, but knowledge for action– flexibility and precision the key

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Three strategic areasThree strategic areas

Emphasis here strongly determines the direction of the evolutionary path

Focus on the Customer

First generation: enable transactions; extend geographic reach; increase awarenessNext generation: one-to-one marketing, Web self-service

Focus on Supply Chain

First generation: improving transaction efficiency Next generation: increasing supplier choice & efficiency; build seamless virtual enterprise

Focus on EmployeesFirst generation: increase bandwidth to desktop; remote accessNext generation: empower employees through flexible work arrangements;superior decision tools; creation of virtual teams

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Customer focus: solution spaces

• Retail: – Use demographic knowledge to structure

marketing, purchasing ; customize offers for individuals based on previous and predicted buying patterns

• Transportation:– Optimize scheduling; tailor fares

• Health Care:– compare effectiveness of treatments, devise

prevention approaches

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Supplier focus: solution spacesSupplier focus: solution spaces

• Today: efficiency transfer of volume data• Next generation: Enabling rapid shifts when it

comes to location of manufacture or delivery– increases flexibility– reduces costs– allows businesses to be more responsive to

short-term shifts in customer demand• Next generation: increasing disintermediation

– using the Internet to bypass traditional distribution channels

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Spotlight: Empowered Spotlight: Empowered employeesemployees

• What: – Types of flexibility

• Home-based working• Home working• Nomadic working• “Hot desking”

– Decision tools and analysis software that give employees more timely and actionable access to relevant information

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Spotlight: Empowered Spotlight: Empowered employeesemployees

• Why: – Businesses gain by investing in tools and

people (big ROI) rather than facilities (inevitable depreciation)

– Important for recruiting and retaining skilled employees in tight labor market

– Helps to optimize employee productivity– Employee loyalty highly correlated with

customer loyalty

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Spotlight: Empowered Spotlight: Empowered EmployeesEmployees

• “What we are doing is changing the way we operate with people and their locations…it doesn’t really matter where I am…it changes the world…that is the way of the future…there will definitely be people working at home, people working in satellite offices…”

Partner, business services company

• “Employees are demanding more flexibility. . . . It’s a good way to retain employees. . . . I think it’s going to be a necessity.”

AVP Marketing, FIRE

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Spotlight: Empowered Spotlight: Empowered employeesemployees

• Competitive environment:– B2B firms are working with consultants to

plot the Internet’s impact on the HR future

• Lucent’s play:– Networking capacity; VPNs; development of

next generation wireless technology:

• Lucent could use its substantial relationships with FIRE companies to make inroads here

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Customer e-business: Barriers

• Cost-benefit analyses in these areas still poorly developed – Amazon still loses nearly $200m quarterly– Some CIOs report they won’t act unless

there is a high-level executive champion

• Fear of cannibalization of existing channels

• Customer preference in some segments for some type of human contact

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Supplier e-business: Barriers

• In a word, security– Creating virtual enterprise by definition

multiplies access points, and thus security risks

– Security solutions have at least three dimensions• access (do you have the right to log in?)• authentication (are you who you say you are?)• authorization (is this information you’re allowed

to have?)

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Employee e-business: Barriers

• Security also an issue here– allowing appropriate network access from

remote & mobile terminals

• Lack of workforce cohesion– company culture may get lost in the creation

of virtual teams

• Risk of customer dissatisfaction– if employees’ need for flexibility outpaces

customers’ willingness to tolerate it

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Some of the materials in this section are from: “E-Biz Study” of The Taylor Research & Consulting Group, Inc.

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The Technology The Technology

• Architectures• Tools• Languages• Environments• Products and Vendors

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The Competitive The Competitive Landscape Landscape

• Markets • Products• Competitors

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The Solution SpaceThe Solution Space

• Definition of Alternatives• Evaluation of Alternatives• Modeling and Specification• Documenting the Solution

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Presenting the WorkPresenting the Work

• Know the audience• Know your goals• Know your strengths• Know your weaknesses• Prepare in advance• Execute:

– eye contact,– voice– posture– gestures–

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Presenting the WorkPresenting the Work

• Set • your goals

• Prepare• the content & the form• the delivery - dry run, time

• Execute• eye contact, voice• posture, gestures, movement• time

• Know• the audience• your strengths• your weaknesses

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Project Management: A Project Management: A Whole Other DimensionWhole Other Dimension

• Planing• Cost estimation• Decision on development tools,

methods, environments• Monitoring...

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How well did we do? How well did we do? • Acquire experience with the

activities of the first phases of the SDLC (5)– Problem analysis– Identification of the solution space and evaluation of

alternatives– Modeling and specification– Prototyping – Technology evaluation

• Apply in practice SA methods (4)• Teamwork (5-)• Customer Interactions (3)• Presenting the Results (4)

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Job Well Done!Job Well Done!