E-Business

Basics of E-Business : Contents

Detailed Contents

Part One: Introduction to E-Business

1. BASICS OF E-BUSINESS 3
The Digital ERA 4
History of the Internet 4
Evolution of E-Business 5
The Rise of E-Business 6
Traditional Business and E-Business 7
The Emergence of Infomediaries 8
Principles of E-Business 8
Know Your Customer 8
Develop a Customer Profile 9
Segment the Customers 9
Avoid the 'Silo' Effect 10
Predictive Modeling and Customer Profitability 10
Use Multiple Channels to Interact with Customers 10
Identify Customer Channel Preference 11
Synchronize Channels 11
Understand the Cost Structure of Each Channel 11
Optimize the Channel Strategy 11
Personalize the Customer Experience 12
Individualize Content 12
Enable Customers to Customize the Environment 12
Personalize Interaction through all Channels 12
Optimize the Value of Every Customer 12
Optimize every Level of Customer Interaction 13
Optimize Lifetime Customer Value 13
Key Elements that build Customer Loyalty 14
E-Business Infrastructure 14
Centralized Data Storage 14
Update Information Dynamically 15
Focus on Back-Office Systems 15
Scalable Systems 15
Support all Applicable Platforms and Devices 15
Support Global Implementation 15
Single View of the Organization 16
Organizational Culture for E-Business 16
Ensure Commitment of Top Management 16
Create Incentives that Support E-Business Goals 16
Develop and Maintain a Bias for Action 16
E-Business Models 17
B2B 17
B2C 17
C2C 18

2. E-BUSINESS FRAMEWORKS 19
Channel Enhancement 20
Value Propositions for Buyers and Sellers 21
Enhancing the Sell Channel 21
Enhancing the Buy Channel 30
Effects of Channel Enhancement 32
Industry Transformation 35
From E-Supply Chain to Value Network Management 36
Operating in the Value Network Management World 36
Effects of Industry Transformation 39
Convergence 41
Drivers of Convergence 42
Convergence Strategies 42
Effects of Convergence 44

Part Two: E-Business Development

3. E-BUSINESS STRATEGY: PLANNING TO ACTION 49
E-Enabling the Value Chain 50
Procuring Raw Materials 50
Product Development 52
Formulating a Pricing Strategy 54
Planning and Managing Sales Channels 55
Managing Sales Function 55
Advertising and Sales Promotion 56
Managing Logistics/Distribution 57
Managing Customer Service 59
Basic Steps in E-Business Blueprint Planning 60
Prioritizing Projects 61
Types of E-Business Projects 61
Integrating E-Business Processes 62
Development of E-Business Case 62
Key Elements of E-Business Case 63
E-Business Execution Plan 65
Developing a CRM Execution Blueprint 65
E-Collaboration 66
Technology for Collaboration 66
Collaboration Servers 67
Internet as an Intermediary 67

4. E-BUSINESS DESIGN 69
Overview of E-Business Design 70
Steps in E-Business Design 70
Self Diagnosis 70
Reversing the Value Chain 71
Choosing a Narrow Focus 71
Road Map to E-Business Design 76
Knowledge Building 76
Capability Evaluation 80
Developing E-Business Design 80

Part Three: E-Business Operations

5. E- MARKETPLACES 87
Evolution of E-Marketplaces 88
Phases of E-Marketplaces 88
Commodity Exchanges 89
Value Added E-Marketplaces 89
Global Knowledge Exchanges 89
Global Value Trust Networks 90
E-Marketplaces Models 90
Direct B2B E-Marketplaces 90
Coalition or Consortium E-Marketplaces 90
Independent E-Marketplaces 90
Strategies for E-Marketplaces 91
Defining the Objectives 91
Defining the Strengths 91
Focusing on the Strengths 91
Understanding the Competition 92
Developing the E-Business Landscape Matrix 92
Building the E-Value Chain 92
Defining the Value Proposition 93
Defining the Timing 93
Developing a Marketing Plan 93
Defining the Business Case 93
Defining the Technical Architecture 94
Developing a Partnership Plan 94
Human Element in E-Marketplaces 94
Benefits of E-Marketplaces 95
Success Factors for E-Marketplaces 96
Current Trends in E-Marketplaces 97
Industry Backed Consortium E-Marketplaces are Gaining Popularity 97
Vertical E-Marketplaces are on the Rise 98
Focus on Collaboration 98

6. E- PROCUREMENT 99
Operating Resource Procurement 100
Types of Operating Resource Products 100
Resource Procurement Process 101
Operating Resources Market 102
Procurement Business Problems and guidelines to Integration Alternatives 103
Management Control 104
Online Product Selection 105
Electronic Ordering 105
Application Integration 105
Information and Reporting 105
Elements of Buy Side E-Procurement Solutions 105
Requisitioning Process 106
Requisitioning Integration Issues 108
Elements of Sell Side E-Procurement Solutions 109
Vertical Procurement Portals 109
Implementing E-Procurement 111
Establish E-Procurement Chain Goals 111
Construct a Procurement Process Audit 112
Best Practices in E-Procurement 115

7. SUPPLY CHAIN MANAGEMENT AND E-BUSINESS 120
Supply Chain Management: An Overview 121
E-Supply Chain 122
Components of the E-Supply Chain 124
Inter-Enterprise Integration 127
Types of inter-enterprise integration 127
Supply Chain Planning 128
Supply Chain Execution 129
Managing Relationships in the E-Supply Chain 131
Commodity-Based Supplier Relationships 131
Strategic Supplier Relationships 132
Issues in E-Supply Chain Management 134
Appropriate Supply Chain Structure 134
Differentiation 134
Order Fulfillment Capabilities 136
Adequate Infrastructure 137
The Future of the E-Supply Chain 137
Integrated Make-to-Stock 137
Continuous Replenishment 139
Build-to-Order 140
Outsourcing Supply Chain Management 140

8. ENTERPRISE RESOURCE PLANNING 143
ERP: An Overview 144
Rationale for ERP 144
Enterprise Architecture Planning 145
Implementing ERP 148
Understanding Corporate Needs and Culture 149
Complete Business Process Changes 149
Communicate Across the Organization 149
Strong Project Leadership 149
Efficient and Capable Project Leader 150
Balanced Teams 150
Effect of ERP on the Company 152
Lead Time Reduction 152
Punctuality in Shipment 153
Reduction in Cycle Time 153
Enhanced Customer Satisfaction 154
Improved Supplier Performance 154
Flexibility and Reduction in Quality Cost 155
Improved Resource Utility 156
Improved Information Accuracy 157
Overview of ERP Modules 157
Finance and Accounting Module 158
Manufacturing 158
Sales & Distribution 159
Human Resource Management 159
Plant Maintenance 159
ERP Investments in the US 160
Industry-specific Extensions 161
Business Intelligence 161
ERP Market -- Indian Scenario 162
Problems of ERP Implementation 162
Emerging Trends in the ERP Industry 163
Future of ERP Applications 165
ERP-Evolving to Link with Supply Chain Planning 166

9. KNOWLEDGE MANAGEMENT AND E-BUSINESS 169
Knowledge Management Landscape 170
Knowledge Management Framework 177
Technology in Knowledge Management 179
Data Warehousing 179
Online Analytical Processing 180
Knowledge Management Applications 181
CRM Decision Support Systems 181
Personalization Applications 182
Supply Chain Decision Support System 183
Remote Performance Monitoring 183
Business Simulation-Interactive 'What If' Scenario Analysis 183
Knowledge Management 184

Part Four: Marketing in the Cyber Age

10. SELLING CHAIN MANAGEMENT 189
Integrated Approach to Sales Management 190
Business Drivers for Selling Chain Management 192
Self Service Order 193
Cost of Pre-sale Technical Support 193
Cost of Order Errors 194
Channel Proliferation Problems 194
Complexity of Products 194
Rise of Deregulation, Mergers and Acquisitions 195
Technology Drivers for Selling Chain Management 195
Selling Chain Application Continuum 196
Sales Force Automation 197
Process Functionality 197
Sales Effectiveness 198
Order Acquisition Process 198
Identify Potential Customers 198
Understand Customer Needs 198
Obtain More Information from Customer 198
Develop Alternative Scenario 199
Select Product Configuration 199
Determine Price and Delivery Terms 199
Present Bid/Proposal to Customers 199
Evaluate the Revised Bid 199
Prepare Order 199
Selling Chain Infrastructure 200
Product Catalogs and Marketing Encyclopedias 201
Sales Configuration Systems 201
Pricing Maintenance 202
Proposal and Quote Generation 202
Incentives and Commission Processing 202

11. E-MARKETING 208
The E-Revolution in Marketing 209
Barter System 209
Mass Production 210
Product Differentiation and Globalization 210
Information Age 210
Direct Marketing 210
Online Marketing 211
Database Marketing 211
New Age Database Marketing 214
Prerequisites for Database Marketing 215
Data Warehouse 215
Decision Support Systems 216
Benefits of Database Marketing 216
Errors in Applications of Database Marketing 216
Data Protection Legislation 218
Telemarketing 218
E-Marketing Strategies 219
Developing Micro Brands 219
Building Customer Loyalty 221
Collaboration 223
E-Mail Marketing 224

12. CRM AND E-BUSINESS 225
Defining CRM 226
Strengthening Relationships with Existing Customers 226
Using Customer Information to Provide Better Service 227
Creating Customer Value and Loyalty 227
Implementing Integrated CRM Solution Strategy 227
Functions of CRM 227
Attracting New Customers 227
Generating More Business from Existing Customers 227
Retaining Profitable Customers 228
The E-CRM Architecture 229
E-CRM Components 229
Cross selling and Up-Selling Software 229
Direct Marketing and Fulfillment 230
Customer Support and Service 230
Field Service Operations 230
Retention Management 230
E-CRM Infrastructure Requirements 230
Integration of Customer Content 231
Integration of Customer Contact Information 231
Integration of the Extended Enterprise 231
Integration of Systems 231
CRM for E-Customers 232
Targeting E-Customers 232
Acquiring E-Customers 233
Retaining E-Customers 233
Challenges in Implementing E-CRM Projects 234

Part Five: E-Business Technologies and Trends

13 E-BUSINESS INFRASTRUCTURE 239
Network Infrastructure 240
Switches 240
Multilayer Switching 241
Bridges 241
Routers 241
Virtual LAN 241
Local Area Networks 243
Wide Area Networks 243
Enterprise Network 243
Internet 243
Extranet 244
Intranet 244
Data Storage 244
Direct Attached Storage 245
Network Attached Storage 245
Storage Area Networks 246
Integration Tools for E-Business 246
Middleware 247
Message-oriented Middleware 247
Remote Procedure Calls 247
Data Integration Middleware 248
E-Business Architecture 248
Reference Architecture 248
Components 248
Logical Architecture 252
Layered Architecture 252
Application Services 254
Platform Criteria 254
Technology Architecture 255
Organizational Architecture 256
Ownership 257
Support and Development 257
Skills Audit 258

14 E-BUSINESS TECHNOLOGIES 259
Data Communication Fundamentals 260
Communication Devices 261
Data Transmission Devices 261
Data Transmission Media 262
Inter-networking using TCP/IP 263
Biometric Technologies 264
The Uses of Biometrics 265
Wireless Technologies 267
WAP 267
Bluetooth 269
i-Mode 269
E-Business Enabling Technologies 270
Active Server Pages 270
Extensible Markup Language 271
Corba 272

15 E-BANKING 275
The Concept of E-Banking 276
The E-Banking Scenario 277
E-Banking in Asia 278
The Indian E-Banking Scenario 279
E-Banking in the US 280
E-Banking in Europe 281
Banks Focusing on Production 281
Banks Focusing on Distribution 281
Banks Focusing on Advice 281
E-Banking Strategies 281
Finance Portals for Banks 282
User Interface 283
Content and Services 283
Back-end Transactions 283
Enabling Functions 283
E-Banking Transactions 284
Key Issues for E-Banking 285
Future of E-Banking 287

16 E-GOVERNANCE 289
Overview of E-Governance 290
E-Governance Strategies 291
Role of the Internet in Transforming Government Enterprises 291
E-Governance Interface and Technology 295
CRM Solutions for Public Service Organizations 295
Digital Governance 296
E-Voting: The State of Nations 297
E-Government: Key Issues and Challenges 299
Organizational, Political and Technical Problems 299
The Negative Aspects of E-Governance 299
E-Governance: Privacy, Security and Accessibility 300
E-Governance in the Global Scenario 303
E-Governance in the US 303
E-Governance in Brazil 304
E-Governance in Europe 304
E-Government in the Asia-Pacific Region 305

17 MOBILE BUSINESS 309
The Mobile Value Chain 310
Benefits of M-Business 312
Mobile Applications Infrastructure 312
Mobile Application Platforms (MAPs) 312
Mobile Application Service Providers (MASPs) 312
Mobile Internet Service Providers (MISPs) 313
Mobile Application Enablers (MAEs) 313

M-Business Technologies 313
Wireless Generation Technologies 313
Bluetooth 315
General Packet Radio Service 316
The Mobile Business Strategy 319
M-Business – Key Issues 320
Virus Attacks 321
Data Storage 321
Synchronization 321
Network Security 322
Mobile Portals 323
M-Business Applications in Industries 323
M-Business in the Retailing Industry 324
M-Business in the Tourism Industry 324
M-Business in the Automotive Industry 325

Part Six: Emerging Opportunities in E-Business

18 E-HUMAN RESOURCES 329
Technologies in HR 330
Compensation Software 330
Digital Dashboard Technology 331
Web-based HR Service Delivery 332
Specific Competencies for E-HR 335

19 E-FINANCE 337
Technology Infrastructure in Finance Function 338
Technologies Used 338
Investments on Technologies 339
Management Accounting 340
Application of IT in Financial Services Industry 340
Benefits of Technology 341
Hindrances in Technology Adoption 342

20 E-BUSINESS OPPORTUNITIES 344
Knowledge Process Outsourcing 345
Differences between BPO and KPO 345
Engineering Design Outsourcing 349
Telemedicine 349
Indian Scenario 350
Technology Applications in Telemedicine 351
Future of Telemedicine 351

21 IT GOVERNANCE 353
Overview of IT Governance 354
IT Governance and Sarbanes-Oxley Act 354
IT Governance Frameworks 355
IT Infrastructure Library 355
Control Objectives for Information and Related Technology (COBIT) 356
Balanced ScoreCard 357

Part Seven: Issues and Challenges in E-Business

22 E-BUSINESS APPLICATIONS 361
Conventional Payment Process 362
Electronic Payment System 362
Payment Clearing Services 363
Notational Funds Transfer 364
Digital Currency Payment 365
Properties and Specifications of Digital Currencies 369
Evaluation and Policy Issues 371
Digital Currency and Governments 373
Electronic Data Interchange 374
Benefits of EDI 376
EDI Applications in Business 376
E-Business Application in Various Businesses 379
Brokerage Model 379
Advertising Model 379
Infomediary Model 379
Merchant Model 380
Manufacturer Model 380
Affiliates Model 380
Utility Model 380
Subscription Model 380
Community Model 380

23 E-SECURITY 382
Cryptography 383
Cryptographic Algorithms 384
Objectives of Cryptography 384
Public Key Infrastructure 385
PKI Products 386
Security Instruments 387
Digital Certificates and Certification Authorities 387
Digital Signatures 389
Secure Channels 390
Stored Account Payment System 392
First Virtual 393
CyberCash 394
Secure Electronic Transaction 394
Stored Value Payment System 396
E-Cash 396
Smart Cards 397
Acceptable Use Policy 398
Security Threats 398
E-Mail Threats 399
Risk in Using Wireless Devices 401
Protection against Identity Theft 402
Phishing 402
Pharming 402

24 OTHER ISSUES IN E-BUSINESS 405
Consumer Protection 406
Cyber Crimes and Cyber Laws 407
Computer Fraud and Abuse Act 407
Credit Card Abuse Laws 408
Software Piracy 409
Computer Viruses and Harmful Software 410
Electronic Communication Privacy Act 411
Combating Cyber Crime 412
Market Issues 414
Volatility 414
Trust 415
Locus 417
Technical Issues 418
Platform Risk 418
Communication Problems 419
Skills 419
Legal Issues 421
Intellectual Property 421
Responsibility and Privacy 422
Regulation and Taxation 424

25 CHALLENGES IN E-BUSINESS 426
Technological Challenges 427
Strength of Security 427
Availability and Inter-operability of Payment Instruments 427
Inter-operability of Technology and Applications 428
Comparative Buying Capabilities 428
Richness and Depth of Content 428
Lack of Reliable Network Infrastructure 429
Lack of Standards 429
Deployment of Public Key Infrastructure 431
Technical Integration with Existing Applications 431
Bandwidth Costs 432
Legal and Regulatory Framework 433
Lack of Consistent Rules and Policies 433
Customs and Tax Uncertainties 434
Government Intervention 434
Behavioral and Educational Challenges 435
Trust and Privacy 435
TRUSTe 435
Fraud 436
Awareness about Availability of Services 436
E-Money Laundering 436
Other Miscellaneous Challenges 436
Channel Conflict 436
Critical Mass 437
Fulfillment Process 437

26 FUTURE OF E-BUSINESS 439
Trends in E-Business 440
Global Reach and Global Customers 442
Increased Speed of Service 443
Integrated Customer Service 445
Integrating Sales and Service 446
Outsourcing 448
Integrated Enterprise Applications 450
Convergence of Voice, Data and Video 451
Multi-channel Integration 452
Use of Wireless Applications 453
Role of Middleware in Enterprise Integration 454