E-business research paper

 Presented by

Group-
Vidyut


Himanshu Jadaun(22)


Manpreet Nagi(31)


Pallab Bose(46)

DEFINITION

 E-business (electronic business) , derived from

such terms as “e-mail” and “e-commerce”, is
the conduct of business on internet, not only
buying and selling but also servicing customers
and collaborating with business partners

 E-business is just business using electronic
network to transform a business process or
business system to create superior value for
current or potential customers

 Companies are using the web to buy parts and
supplies from other companies, to collaborate
on sales promotion and to do joint research
 Some Features Of E-business….
 Links their internal and external data processing
systems more efficiently and flexibly.
 E-business refers to more strategic focus with an
emphasis on the functions that occur using
electronic capabilities.
 E-business involves business processes spanning the
entire value chain: electronic purchasing and
supply chain management, processing orders
electronically, handling customer service, and
cooperating with business partners.
 Special technical standards for e-business facilitate the
exchange of data between companies.
 E-business can be conducted using the Web, the
Internet, intranets, extranets, or some combination
of these.
 One of the first to use the term was IBM, when, in
Ebiz vs E-comm

 Electronic business transactions involving money

are “E-Commerce" activities.


 E-commerce refers to online transactions - buying

and selling of goods and/or services over the
Internet, E-business covers online transactions,
but also extends to all Internet based
interactions with business partners, suppliers
and customers such as: selling direct to
consumers, manufacturers and suppliers;
monitoring and exchanging information;
auctioning surplus inventory; and collaborative
product design. These online interactions are
aimed at improving or transforming business
processes and efficiency.


 Improved accuracy, quality and time required for updating and

delivering information on products and/or services.


 Access for customers to catalogues and prices - 24 hours x 7

days.


 Improved ease, speed and immediacy of customer ordering.



 Enhanced market, industry or competitor intelligence acquired

through information gathering and research activities.


 New distribution channels via the electronic delivery of some

products and services, for example, product design
collaboration, publications, software, translation services,
banking, etc.


 Expansion of customer base and growth in export

opportunities.


 Reduces routine administrative tasks (invoices and order

records) freeing staff to focus on more strategic activities.
What E-business is not

 a bolt on business; rather than a

integral component of it
 about technology
 a middle management initiative
 Tied to the particular department or
functional area

Application of E-Business

 Manufacturing sector
 Tourism
 Telecommunication
 Hospitals
 Retail
 Customer service
 Auction
Classification by provider and
consumer
 business-to-business (B2B)


 business-to-consumer (B2c)


 business-to-employee (B2E)

 business-to-business-to-consumer
(B2B2C)

 business-to-government (B2G)

Contd…

 government-to-business (G2B)

 government-to-government (G2G)


 consumer-to-consumer (C2C)

 consumer-to-business (C2B)


  Mobile commerce

 I commerce

 E learning

 L–commerce


 Exchange

 E–tailing

Some of the initiative of E-business

 Student services
 Employee services
 Business and related services

Benefits to Organizations

 Global reach
 Cost reduction
 Supply chain improvements
 Extended hours: 24/7/365
 Customization
 Efficient procurement
 No city business permits & fees

Benefits to Society

 Telecommuting

 Higher standard of living

 Hope for the poor

 Availability of public services

Benefits to Consumers

 Ubiquity

 More products & services

 Cheaper products & services

 Instant delivery

 “Get it your way”
Limitations of E-Business

 Host of security

 Legal & financial problems

 The incoherence of the web

 Concerns about security & flexibility
in using web as a purchasing tool

Legal & Regulatory aspects of
E-Business
 The rapid development of e-business
has been such that it is difficult for
legislators to catch up
 The exponential rise in Internet usage
& trading has not been met with the
adoption of legal regulations
 The law & regulation of e-business is
a rapidly developing area
attempting to keep track of the
growth of online business

Information and communication
technology
 Information and communication
technologies(ICT) is an umbrella
term that covers all technical
means for processing and
communicating information.


It includes


 Communication protocol
 Media
 Computing ,data storage

Need for ICT

 Allow user to participate

 ICT tools can be used to find explore
analyze, exchange and present
information responsibly and without
discrimination
 ICT can be employed to give users
quick access to ideas and
experiences from a wide range of
people ,communities and cultures.
Impact of ICT

 Influence on productivity
 Economic impact
 Social impact
 Influence on innovation
Influence on productivity

 The effect of ICT on productivity was

much higher in younger firms.
 Region wise –US enterprise
 Example-ICT and related effect raised
Australia's annual multi factor
productivity growth by around 0.2%
points in the 1990
Economic impact

 ICT’s have increased international

interconnectedness
 Speed up the process of globalization
 ICT’s have enabled corporation to
outsource jobs.
Social impact and influence on
innovation
 Demand for highly skilled specialist
 Competitive pressure
 Examples -manufacturing sector ,
service sector such as tourism .
E-Business: Business
perspective
 Economic opportunities
 Penetration of international market
potential


Principles of E-Business:


 Researching basic contractual issues

 Putting into play basic business
principles

E-Business: Consumer
perspective
 Perceived lack of security for
conducting financial transactions
 Reliability of on-line purchasing
 Privacy considerations in terms of
personal information sharing
 Unfamiliarity with the Internet
environment
Principle con n ection required to conduct
e-business
Business to consumer Business to business

Business to employee Business to stakeholder

ERP with E-Business


 To complement e-business a need for an
internal transaction system arises which is
provided by ERP.


E -B u y E R P E -S e ll enterprises can
 With the e-buy/ERP/e-sell
easily connect both suppliers and customers.


 Share holders

ERP
Researchers &
customers developers

suppliers
Outsourcing
Service
providers

Business partners
Advisers Internet
distributors
Complementary technologies of
ERP and E-Business
Ø ERP is the internal technological hub
of single enterprise helping in
supply chain & demand chain and
facilitate the organization to
coordinate information.
Ø Web based technology extends each
enterprise’s internal infrastructure
to the external environment.
Ø
Integrating E-business & ERP
E-business operates under the assumptions-
 Control of business processes can be shared or
dispersed among any organization
 People need access to small qty of some
transactional data in real time
 Many people participate in variety of processes
The ERP providers must overcome this issue in one

of the 3 ways-
 Must redesign the interfaces, processes and
underlying architecture for a variety of user
who require flexibility
 Must learn to use a new set of web based
technologies and incorporate web based
feature into their software offering
E-BUSINESS SOLUTIONS
INSTALLATION PROCESS
Pitfalls of E-business solutions installation
process

 Senior managers do not spend enough time and

efforts to learn and understand the solutions.

 The end users do not receive required training

 In many cases, IT infrastructure is not up-to-date enough

and lacks power to support the new solution.

 The time and money allocated to the project are far less
than required.
Preparation

 Education and Training



 Implementation


 Before considering an e-business solution, make sure

that there is a sound business need to get it. E-
marketplace, Private exchange, Business portal
are few of the e-business solutions that help
attracting new customers and markets.


 Keep track of the new technologies and keep an eye

to your competitors e-business strategies. E-business
is an extremely fast moving segment
MARRIOTT INTERNATIONAL
( A E-BUSINESS
This CASE)
case discusses the customer-focused e-business
strategy of Marriott International (Marriott), a world
leader in the hospitality industry and franchisor of a
broad portfolio of hotels and related lodging facilities.
Founded by J. Willard Marriott, the company is now led by son
J.W. (Bill) Marriott Jr.

 Today, Marriott International has about 3,150 lodging
properties located in the United States and 67 other
countries and territories.

 In year 2003, it had a network in excess of 2,600
operating units in the US and a workforce of 145,000
employees, spread over 65 countries across the world.

 Marriott’s diverse portfolio of popular hotel brands included

leading brands such as Marriott, JW Marriott,
Renaissance, Ramada International, Courtyard,
Residence Inn, and The Ritz-Carlton, among others.

 Delighting Customers
 Since its inception, Marriott has focused on providing
 excellent customer service. The company offered
 personalized services to its clients, whom it referred to as its
‘guests.’


 It had introduced several innovative technologies and

implemented them even before its competitors did. For
instance, in the 1980’s, the company launched Marriott
Automated Reservation System for Hotel
Accommodation (MARSHA), a totally new concept of
hotel reservation in the hospitality industry at that time.


 Marriott made continuous improvements in its business

processes in its efforts to ‘delight’ its customers. In 1998,
the company adopted an e-business strategy to re-
orient itself to serve its customers better.


 The company was operationalizing a strategy to switch over

from a decentralized property-orientation to a
centralized customer-orientation in its services...
The E-Business Strategy

 Marriott’s e-business strategy aimed at transforming

itself from a property-focused to a customer-
focused company Previously, Marriott measured its
financial performance on the basis of the revenues
earned for each of its individual property.


 The e-business strategy emphasized on increasing

revenues earned per customer.

 The four key objectives of the e-business strategy
included serving customers proactively,
personalizing the service offerings according to the
needs and preferences of the customers,
enhancing brand loyalty and awareness, and
cross-selling...
The Website and E-Business
System


 The website’s home page had five main icons

including hotel directories, reservations,
meeting planners, travel agents and a
suggestion box.


 The hotel directories section had details such as

the name of the hotel, the address and phone
numbers of all the hotels in the Marriott chain
across the world.

 Clients could select the city and the hotel where
they wanted accommodation, on the screen...
The Benefits

 In 1999, Marriott earned revenues of $150 million from

online bookings through its website.

 Estimates for the year 2000 indicated that every month,
the website received three million hits, making it
one of the largest viewed websites in the US
hospitality industry.

 By 2002, the website emerged as a money-spinner for
Marriott with online sales of $1 bn...



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