emba 612-34: ecommerce prof. gabriele piccoli school of hotel administration cornell university

EMBA 612-34: eCommerce

Prof. Gabriele PiccoliSchool of Hotel AdministrationCornell University

Prof. Gabe Piccoli

Assistant Professor, Cornell University Research: Strategic IS, Customer Service

Systems, Virtual teams, Web-based training Previous teaching

LSU: Intro to MIS; Internet Development Tools Tulane: eComm (EMBA and PMBA) Cornell: Intro to MIS; Strategic IS

WinTel Bigot gp45@cornell.edu

About the GA

Patrick Candrian, MMH 2001 WinTel Bigot poc2@cornell.edu

Which Best Describes You?1. Computer, what computer?2. Basic skills in Office, Browsing, e-Mail3. Long time computer user4. Some Programming Expertise5. Responsible for major IT application

implementations(s)6. IT Professional7. Significant IT Management

Responsibilities

Which Best Describes Your Computing Infrastructure?

1. Computer, what computer?2. Computer at Home - no internet connection3. C. at H. - dial-up connection to Internet4. C. at H. - broadband connection5. C. at H. - broadband and home network6. C. at H. - broadband, wireless home network7. Even cooler stuff.

Which Best Describes Your Computing Education?

1. First IT/Computing Course 2. Some IT Applications Training at Work3. Intro Course in IT or Programming4. Several IT-related Courses5. Undergrad major in IS, Computer Science, Software

Engineering or some significant certification6. Graduate Degree in IS, Computer Science, Software

Engineering or multiple certifications7. Have taught IT-Related Course(s).

This Course is Not… A Step Towards MS Certification A Place to Learn Web Development Skills An Opportunity to Learn How to Program A Chance to Learn about Excel Macros Skills in PowerPoint Animations Finding out how Word really works …

The Course will Demonstrate the Underlying Economics of IT Provide a Strategic View of IT Add IT to your Strategic Arsenal Develop your Ability to Envision Strategic

Applications of Technology Learn the Basics for making IT Strategic Moves

Sustainable See How to Use IT for Enhancing Customer

Service Look at Technology as an Organizing Factor and

a Management Tool

Course Philosophy What this course is NOT

A strict skills course (e.g., Internet Development) Preparing developers

This course is: Preparing user-managers that understand

technology Preparing managers of technology Preparing strategists that understand the

technological landscape

Learning Environment

CourseInfo

Finding your way to the

EMBA 612-34 Course Page on CourseInfo

Two strategies…

Strategy 1

Remember the URL?!?http://courseinfo.tulane.edu:5783/bin/common/course.pl?course_id=_1616_1&frame=top

•Are you Nuts Gabe!?!

•Warning: It is case sensitive

•Cut and Paste

•Then Bookmark

Strategy 2

Remember this one!http://courseinfo.tulane.edu or

http://bb.tulane.edu/

Registration Problems?

If you have yet to log on, Carol has your userID and Password.

Let’s get any registration problems sorted out this week-end!

Email Patrick: poc2@cornell.edu

CourseInfo features and functionalities

crash course

About the Course

Packet and Readings

Packet of cases and readings available from Carol

Extra cases to be distributed via CourseInfo (or email Patrick)

Required readings Optional readings Technology Digressions (Project

ideas?)

Technical Resourceshttp://www.howstuffworks.com/

Technical Resourceshttp://www.whatis.com

Technology Assessment Five teams Four of Five team members Self-selection and the “old fart” issue

First come first serve topics First come first serve dates Email Patrick with group

composition, topic and date

Final Assessment Take home Description on CourseInfo Two options

IT-enabled Strategic Initiative Electronic Commerce Business

Opportunity Deadline April 8th

Active Participation Value adding contributions required Value detracting contributions! How to add:

In class In the news Industry experience and perspectives

Workload

Case discussions (fundamental) One examination (start now) Technology presentation and

report

Admin stuff

Office Hours: Virtual office hours: Continuous Physical office hours: By appointment

Course Philosophy

Understanding the role of IT in creating and sustaining competitive advantage in the network economy.

“IT has moved from back-of-the-house liability to center stage competitive weapon. It is the

greatest time in history to be an IT professional”

Paraphrased from Jay Walker

Founder: Priceline.com, HITEC 2000

“Where does the Internet rank on my priority list? It’s number

one, two, three, and four. I don’t think there’s been anything as important or more widespread

in all my years at GE.”Jack Welch, GE

As Quoted in The Death of e and the Birth of the Real New Economy

Lessons in Strategic Use of Information Technology

from Mr. Sam

1960

1970

1980

1990

2000

$1.4M

$31M

$1.2B

$26B

$165B

$112K

$1.2M

$41M

$1B

$5B

9

32

276

1,528

3,000

Sales Profits Stores

1960

1970

1980

1990

2000

$1.4M

$31M

$1.2B

$26B

$165B

$112K

$1.2M

$41M

$1B

$5B

9

32

276

1,528

3,000

Sales Profits Stores

“I first met Sam in 1964 … he was up in Chicago trying to convince our officers to franchise his discount stores in small towns. They gave him a fat no. After the meeting he came back to see me and moved right on to the subject of computers. He wanted to know all about how we were using them, and how we were planning to use them.”

Don Soderquist, former President of Ben Franklin Stores

Sam Walton: Made in America, Sam Walton with John Huey

“Some of my guys around here find it amusing that I get so much credit for Wal-Mart’s reputation as a world leader in retailing and distribution technology.. They’re amused because..ever since I went to that IBM school in 1966, I’ve put up a pretty good fight every time somebody wants to buy some new system for this, that, or the other. I want them to think hard about how they’re going to justify the expense before they even come to me with it.”

Sam Walton (1992)Sam Walton: Made in America, Sam Walton with John Huey

“But.. One of the main reasons we’ve been able to roll this company out nationally was the pressure put on me by [various executives] to invest in technology. Yes, I argued and resisted, but I eventually signed the checks.”

Sam Walton (1992)Sam Walton: Made in America, Sam Walton with John Huey

“Glen Habern was our data processing manager, and he and I had this dream of an interactive [satellite-based] communication system on which you could communicate back and forth between all the stores and the distribution centers and the general office. Glenn came up with the idea and I said, “Let’s pursue it without asking anybody.”

Jack Shewmaker, President and COO, (1978)

Sam Walton: Made in America, Sam Walton with John Huey

“During that period in the late seventies when Kmart’s management had such a strong resistance to any kind of change, that resistance included investment in systems. At the same time, our fellows were absolutely convinced that computers were essential to managing growth and keeping down our cost structure.”

Sam Walton (1992)Sam Walton: Made in America, Sam Walton with John Huey

“Today, of course, they have been proven so right that they looked like geniuses. I would go so far as to say, in fact, that the efficiencies and economies of scale we realize from our distribution system give us one of our greatest competitive advantages.”

Sam Walton (1992)Sam Walton: Made in America, Sam Walton with John Huey

vs. KMart

vs. Sears

“..we told Sam. He just listened. He didn’t necessarily discourage me. But he didn’t encourage me either. Sam never gets excited about systems.”

Jack Shewmaker, President and COO, (1980)

Sam Walton: Made in America, Sam Walton with John Huey

“Jack is absolutely right about me and systems, though. I rarely get excited about them.. We’ve spent almost $700 million building up the current computer and satellite systems we have. I’m told it’s the largest civilian data base of its kind in the world.”

Sam Walton, (1992)

Sam Walton: Made in America, Sam Walton with John Huey

“None of that matters to me. What I like about it is the kind of information you can pull out of it on moment’s notice -- all those numbers.”

Sam Walton, (1992)

Sam Walton: Made in America, Sam Walton with John Huey

“We keep a sixty-five-week rolling history of every single item we stock in Wal-Mart or Sam’s. That means I can pick anything… and tell you exactly how many of them we’ve bought over the last year and a quarter and exactly how many of them were sold. Not only overall, but in any or every region, every district, every store.”

Sam Walton, (1992)

Sam Walton: Made in America, Sam Walton with John Huey

“It makes it tough for a vendor to know more about how his product is doing in our stores than we do. I guess we’ve always known that information gives you a certain power, but the degree to which we can retrieve it in our computer really does give us the power of competitive advantage.”

Sam Walton, (1992)Sam Walton: Made in America, Sam Walton with John Huey

“I can walk back to our TV studio and get on that satellite transmission and get it right out there. And, … I can go in every Saturday morning around three, and look over those printouts, and know precisely what kind of week we’ve had.”

Sam Walton, (1992)Sam Walton: Made in America, Sam Walton with John Huey

Strategic Alliance

“We formed a partnership to conduct our business, with one of the most important outcomes being that we started sharing information by computer. P&G could monitor Wal-Mart’s sales and inventory data, and then use that information to make its own production and shipping plans with a great deal more efficiency. We broke new ground by using information technology to manage our business together, instead of just to audit it.”

Lou Pritchett, Former VP at Procter & Gamble (1987)

Sam Walton: Made in America, Sam Walton with John Huey

Lessons from Wal-Mart IT for Competitive Advantage Information not Technology Sam’s (sponsor’s) role Investing in Infrastructure Champion’s Role Transplanting Culture Strategic Alliance Sustainability of IT

Footnote on Wal-Mart

Course Philosophy

This course, through the analysis of technologies, environmental changes, and analytical tools and concepts, culminates in the ability to use advanced IT to create and appropriate value.

How?

The technology infrastructure and history of electronic commerce (crash course)

The economic premises and the competitive environment

IT as a competitive weapon

Information Systems:

Information Systems are formal, socio-technical, organizational systems designed to collect, process, store, and distribute information.

Information Technology is a fundamental component of modern organizational Information Systems

The Information System

Input OutputProcess

Store

Feedback

Socio-Technical Systems

Social System Technical System

Structure

Tasks

Technology

People

Enabler

Definitions

Data and Information

85903380 1 Aug 29 2001 Aug 30 2001 99.00 DR GABRIELE PICCOLI

85903380 1 Aug 29 2001 Aug 30 2001 99.00  DR GABRIELE PICCOLI

Conf.# Type Arrival Departure Rate Guest name

ST3311 Peet’s Guatemala 11.95

ST3311 Peet’s Guatemala 11.95

Product # Manufacturer Product Description Price per lb.

Strategic IS

Strategic Information Systems are those used to support or shape the competitive strategy of an organization or specific strategic initiatives

Strategic Information Systems enable and support the creation and appropriate of value

Systems of Strategic Intent versus Systems of Strategic Potential

Classic Examples

American Airlines SABRE Wal-Mart distribution system Pacific Pride CardLock