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Welcome to:

McGill Mini-Biz

MyBiz.com

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Learning Objectives

Examine what Information Technology & E-Business mean for you and for organizations

Understand keys issues that must be addressed in order to succeed with Information Technology & E-Business initiatives

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Agenda Introduction The Internet E-Business – What is it? Why IT & E-Business projects? Benefits and Limitations Disintermediation & Mass Customization Internet – Web Site Types

E-Brochure E-Promotion E-Sales (B to C) – (B to B) – (B to G) - Internal

Impacts on Organizations and the Future

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Global Facts

Data / Info is doubling approximately every 5 years!

A child by the age of 7 will have been subject to as much information as their grandparents in their lifetime!

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Questions to get things started…

How big is the Internet (# of pages) ?

How many web sites exist ?

How many of these are active ?

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The Size of the Internet

The estimated size of the internet varies between 15 and 30 billion pageshttp://www.pandia.com/sew/383-web-size.html

There are an estimated 100 million web sites of which 48% are activehttp://www.cnn.com/2006/TECH/internet/11/01/100millionwebsites/

index.html

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Good News / Bad News

Good News:We have push button access to almost any data – anywhere in the world!

Bad News:We have push button access to almost any data – anywhere in the world!

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It is a question of…

Credibility Accuracy Timeliness Reliability

See and compare: www.WhiteHouse.com www.WhiteHouse.net www.WhiteHouse.gov

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What effect has this had on timelines?

Past

Present

Operational weekly daily

Tactical quarterly monthly

Strategic yearly + quarterly?

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Definition of E-Business

The marketing, buying, selling and support of products and services via computer networks including

the internet

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Dell How does Dell use IT to increase their profits?

Build/Buy

Hold

Sell

Traditional model Dell’s model

Sell

Build

Ship

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Born or Moved to the Net?

MySpaceGoogleYahooEBayDell

YouTubeFaceBookExpedia

WikipediaEtc…

Born on the Net Moved to the Net

Chapters / IndigoWalMartCostco

GapNike

AirCanadaToysRUs

JohnDeereBigRedMachine

Etc…

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Rationale of IT Projects

Efficiency Simply to Stay in Business Seeking Strategic Advantages Innovation in Organizations Other Factors

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What Value does an IT project / service

provide?

Critical Business Need

Marginal Benefit

No Benefit

Measuring IT Benefits

CS = Q * C * D * S * M * (I)

Customer Satisfaction is a factor of 6 elements:

Quality , Cost, Delivery, Safety, Morale & Innovation

How does Information Technology & E-

Business affect this formula?

Always Remember ...

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Benefits to Organizations

Decreases cost of creating, processing, distributing, storing and retrieving paper-based information (CD or WebSite)

Allows reduced inventories and overhead Helps small businesses to compete with

larger companies Enables organizations to reach customers

outside their immediate area at minimum cost

Etc…

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Benefits to Consumers

Provides customers with more choices Enables customers to shop and do

transactions 24 hours a day Allows customers to receive relevant

and detailed information much faster Enables consumers to get customized

products Etc…

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Technical Limitations

Lack of system security, reliability, standards, and communication protocols

Insufficient telecommunication bandwidth (speed) in some areas

Difficulties in integrating the Internet and electronic commerce software with some existing applications and databases

Special web servers in addition to the network servers are sometimes required

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Non-Technical Limitations

Many legal issues are as yet unresolved Benefits such as web advertisements are

difficult to measure Electronic Business is still today evolving

and changing rapidly Customers may resist change Technology & Electronic commerce could

result in a breakdown in human relationships

Chat Rooms & Blogs

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Disintermediation Overview

Bypassing one or more intermediaries Typically enables manufacturers to sell directly to

consumers Often replaces one intermediary (retailer) with another

(FedEx or UPS)

The role of IT The Internet (primarily the Web) provides an

interactive direct channel of communication between firms and customers

See: www.JohnDeere.com

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Mass Customization

Overview Consumers play a role in customizing their products/services

The Role of IT The Internet (primarily the Web) provides an interactive direct

channel of communication between firms and customers IT also often plays a role in the manufacturing systems used

See: www.mms.com & www.BecomeanMM.comwww.apple.comhttp://nikeplus.nike.com/nikeplus

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Internet - EC Types

E-Brochure Billboard

E-Promotion Product/Service Information Consumer Services

E-Sales Orders and Full Transactions

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Internet - EC Types

E-Brochure Billboard / Up-to-Date Information

www.NHL.com www.ClubSportifMAA.com

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Internet - EC Types

E-Promotion Product/Service Information Consumer Services (recipes / coupons)

www.FritoLay.com www.Ragu.com

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Internet - EC Types

E-Sales Orders and Full Transactions

www.Amazon.com www.Staples.com www.Admission.com

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Internet – What have you purchased?

Books / Magazines DVD / CD / Music Computer / Electronics / Software Office Supplies Gift Items / Flowers Tickets / Reservations (Airline / Hotel / Train / Concert /

Sports)

EBay Etc…

What do these all have in common?

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Internet - Purchases ...

Predictable Reliable Convenient Credible Vendor Easy to purchase

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Internet - EC Types ...

Business to Consumer (B to C) Business to Business (B to B) Business to Government (B to G) Internal Business

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Impacts of E-Business

On business processes On employees On technical infrastructure On middlepeople On product, prices, promotion &

place On your entire organization

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Management Support

Managers must be willing to commit great amounts of time and effort to ensure the success of any IT project including e-business ones.

If managers are unwilling or unable to devote the necessary time and effort, E-Business projects will likely fail.

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Even with IT & E-Business,it is still about ...

Getting and Maintaining Profitable Business

Building Solid Relationships and Trust

Communicating It is really about your people!

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Thank you !!

Contact Information

Richard G. DonovanDesautels Faculty of ManagementMcGill University: (514) 398-4665: Richard.Donovan@McGill.ca