e- Business

Presentation-4

Unit-2

MBA-1st SEM

TERM-1.2010

Evolution of internet. Infrastructure for e-Business.

Learning objectives

Knowledge about evolution process of internet.

Transformation to digital era. Infrastructural requirements for e- business.

Evolution of Internet.

The Internet has revolutionized the computer and communications world like nothing before. The invention of the telegraph, telephone, radio, and computer set the stage for this unprecedented integration of capabilities. The Internet is at once a world-wide broadcasting capability, a mechanism for information dissemination, and a medium for collaboration and interaction between individuals and their computers without regard for geographic location.

The Internet today is a widespread information infrastructure, the initial prototype of what is often called the National (or Global or Galactic) Information Infrastructure. Its history is complex and involves many aspects - technological, organizational, and community. And its influence reaches not only to the technical fields of computer communications but throughout society as we move toward increasing use of online tools to accomplish electronic commerce, information acquisition, and community operations

The first recorded description of the social interactions that could be enabled through networking was a series of memos written by J.C.R. Licklider of MIT in August 1962 discussing his "Galactic

Network" concept In 1960, psychologist and computer scientist Joseph Licklider published a

paper entitled Man-Computer Symbiosis, which articulated the idea of networked computers providing advanced information storage and retrieval. In 1962, whilst working for ARPA as the head of the information processing office, he formed a group to further computer research, but left the group before any actual work was done on the idea.

Properties of the Internet for E-Business

1. Mediating technology

2. Universality

3. Network externalities

4. Distribution channel

5. Time moderator

6. Assymetry shrinker

7. Infinite virtual capacity

8. Low cost standard

9. Creative destroyer

10. Cost reducer

Afuah and Tucci, Internet Business Models and Strategies, 2003

Drivers of Digital Transformation

1. Electronic delivery

2. Information intensity

3. Customizability

4. Aggregation effects

5. Search costs

6. Real-time interface

7. Contracting risk

8. Network effects

9. Standardization

10. Competencies

Andal-Ancion, Cartwright and Yip, Sloan Management Review, 2003

Strategies for Digital Transformation

A. Classic disintermediation. Cutting away layers of middlement, such as distributors, that separate the company from its customers.

B. Remediation. Introducing middlement as intermediaries such as market-facing enterprises.

C. Network-based mediation. Building strategig aliances and partnerships with new and existing players.

Andal-Ancion, Cartwright and Yip, Sloan Management Review, 2003

Drivers of Strategy for Digital Transformation

1. Electronic delivery A

2. Information intensity A

3. Customizability

4. Aggregation effects B

5. Search costs

6. Real-time interface

7. Contracting risk B

8. Network effects C

9. Standardization C

10. Competencies

Andal-Ancion, Cartwright and Yip, Sloan Management Review, 2003

Electronic Commerce

• Buying, selling, or exchanging products, services, and information, via computer networks such at the Internet.

• Delivery of goods, services, information, or payments over computer networks or by any other electronic means.

• Reducing customer search and switching costs

Weill and Vitale, Place to Space - Migrating to eBusiness Models, 2001

Electronic Business

• Marketing, buying, selling, delivering, servicing, and paying for products, services, and information across networks linking an enterprise and its prospects, customers, agents, suppliers, competitors, allies, and complementors.

• Conduct of business and business processes over computer networks based on nonproprietary standards.

Weill and Vitale, Place to Space - Migrating to eBusiness Models, 2001

E-Commerce & E-Business

E-Commerce is what you do…E-Business is what you are…

• Marketing• Selling• Buying of

products and services on the Internet

E-Business• Enterprise designed for success

in the Information Age• Creates new sources of shareholder

value– Building customer loyalty– Optimizing business process– Creating new products and services– Managing risk and compliance– Reaching new markets– Enhancing human capital– Harnessing technology– Achieving market leadership

E-Commerce

Shared standard IT applications

Shared information technology services

Human information technology infrastructure

Information technology components

Local applications

Infrastructure for Electronic Business

Weill and Vitale, Place to Space - Migrating to eBusiness Models, 2001

• Applications infrastructure• Communications• Data management• IT management• Security• Architecture and standards• Channel management• IT research and development• IT education

Service Infrastructure Required

Weill and Vitale, Place to Space - Migrating to eBusiness Models, 2001

Infrastructure Services 1. Applications infrastructure1.1 Internet policies such as employee access1.2 Enforce Internet policies1.3 Email policies such as inappropriate and personal mail, harassment policies,

filtering policies1.4 Enforce email policies1.5 Centralized management of e-business applications such as common standards1.6 Centralized management of infrastructure capacity such as server traffic1.7 Integrated mobile computing applications such as access for internal users1.8 ERP (enterprise resource planning) services1.9 Middleware linking systems on different platforms1.10 Wireless applications such as web applications for wireless devices1.11 Application services provision to business units1.12 Workflow applications 1.13 Payment transaction processing such as EFT (electronic funds transfer)

Infrastructure Services 2. Communications2.1 Communications network services2.2 Broadband communication services2.3 Intranet capabilities to support publishing, directories, etc.2.4 Extranet capabilities to support information and applications2.5 Workstation networks2.6 EDI linkages to customers and suppliers2.7 Electronic support to groups3. Data management3.1 Manage key data independent of applications3.2 A centralized data warehouse that summarizes key information3.3 Data management advice and consultancy3.4 Electronic provision of management information3.5 Storage farms or storage area networks3.6 Knowledge management in terms of communities of practice etc.

Infrastructure Services 4. IT management4.1 Large scale data processing facilities4.2 Server farms including mail server, web servers and printer servers4.3 Installation and maintenance of workstations and LANs4.4 Information systems planning for strategy4.5 Information systems project management4.6 Negotiate with suppliers and outsourcers4.7 Service level agreements4.8 Common systems development environment4.9 Pilot e-business initiatives such as pilot web shopfronts5. Security5.1 Security policies for use of information systems5.2 Enforce security policies for information systems5.3 Disaster planning for business applications5.4 Firewall on secure gateway services

Infrastructure Services 6. Architecture and standards6.1 Specify architectures for data6.2 Specify architectures for technology6.3 Specify architectures for communications6.4 Specify architectures for applications6.5 Specify architectures for work 6.6 Enforce architectures for data6.7 Enforce architectures for technology6.8 Enforce architectures for communications6.9 Enforce architectures for applications6.10 Enforce architectures for work6.11 Specify architecture standards for data6.12 Specify architecture standards for technology6.13 Specify architecture standards for communications6.14 Specify architecture standards for applications6.15 Specify architecture standards for work

Infrastructure Services 6. Architecture and standards (cont)6.16 Enforce architecture standards for data6.17 Enforce architecture standards for technology6.18 Enforce architecture standards for communications6.19 Enforce architecture standards for applications6.20 Enforce architecture standards for work 7. Channel management7.1 Electronic file transfer protocols7.2 Kiosks7.3 Web sites7.4 Call centres7.5 IVRs7.6 Mobile phones7.7 Mobile computing

Planning/implementation. Policies/

enforcementArchitecture/standardization

Infrastructure Services 8. IT research and development8.1 Identify and test new technologies for business purposes8.2 Evaluate proposals for new information systems initiatives9. IT education9.1 Training and use of IT9.2 Management education for generating value from IT use

CLASS TEST

The test will cover all the syllabus covered till now