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E-Business - 2 Minder Chen 1996-2004

Outline

Information Hierarchy

Extended Enterprise & EnterpriseResource Planning (ERP)

Information Architecture and Enabling

Technologies Business Process Reengineering /

Management

Electronic Commerce Conclusions


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Information Life Cycle

Decision

Decision

Action

Action

Data

Data

Information

Information

Intelligence

Design Choice


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Even the Caveman Needs Knowledge to Survive

The information-knowledge-wisdom hierarchy. Thecaveman has lots of information; he selects and organizesuseful information into knowledge, but he does not achievewisdom until he has integrated his knowledge into a wholethat is more than useful than the sum of its parts.

Source: Harlan Cleveland, "Information as a Resource," The Futurist, December 1982, 34-39.


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E-Business and E-Commerce

E-Business

E-Commerce

InternetCommerce

Commerce

Th E d d E i



The Extended Enterprise

E-Business: Virtual and DynamicEnterprise

SuppliersBackOffice

FrontOffice

Customers

Buy Make/Add Value Sell

Supply ChainBack Office Integration Demand Chain

ManufacturingFinance

Engineering

SalesSupport/Service

Marketing

Supply Chain Management Customer Relationship Management

Enterprise Resource Planning Minder Chen, 2001-2002



A Federation of Information Systems



ERP


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Information Systems Triad

OperationalDatabase

InformationalDatabase

EnterpriseWorkflow

OLTP DSSEIS

Data Information

Knowledge

Messaging Systems

Workgroup Workflow

BusinessProcessWorkflow



Information System Applications


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Minder Chen 1996-2004

Information Needs




Architecture of Data Warehouse

CorporateOperationalDatabase

Information Warehouse

End UserAccess Tools

EIS

DSS Report Writers Spreadsheets

Summarized

Detailed

Past

Current

Data

BridgingBusiness

EventInformation

Data extraction Data filtering Table joining Translation Re-Formatting

Projecte

d

Derived

DataBridging/Transformati

on


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T W k &




Team Work &Groupware

Same TimeSame Time Different TimeDifferent Time

Multi-media presentation systems

Key-pad based voting toolsFacilitated meetings using a PCNetworked PCs based GDSS

Project/team roomsShared offices

Screen sharingAudio/video conferencing

E-mailData & file sharingGroup authoring toolsComputer conferencing

Work flow management systems

DifferentPlace

DifferentPlace

SamePlace

SamePlace

G i P bl S l i P d T S i it




Generic Problem-Solving Process and TeamSpirit

Share informationDiscussion forum

Structured brainstormingBrainstorming

Idea consolidation

Rate alternativeRank alternativesSelect alternativesMulticriteria evaluation

Idea

generation

IdeaOrganization

AlternativeEvaluation

TeamSpirit Toolbox

Ge

nericProblem

SolvingPro

cess

Diverge

nt

Diverge

nt

Thin

king

Thin

king

Convergent

Convergent

Thinking

Thinking

TeamSpirit MeetingManagement Tool

TeamSpirit is a Web-based group decision support system / creativegroup problem solving system. Every user can create and facilitate

meetings.


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R t Alt ti


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Rate Alternatives


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Enterprise Portal Strategy


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Business Processes

People-to-peopleconnections

Enterprise Portal Strategy

Spectrum of sites centralized in largescale farms or standalone

Rich out-of-box solution for collaborationand portals

Consistent user, developer and adminexperience

Information Aggregation


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Information AggregationEmployee or partner site aggregating information and applicationsEmployee or partner site aggregating information and applications

Capabilities

Customizable

presentation &personalization

Content andDocumentmanagementand publishing

BusinessIntelligence

Informationaggregation andsearch

Taxonomy Enterprise

ApplicationIntegration

Types of Processes


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Types of ProcessesDimensions & Type Examples IT Enabling Effects

Order from a supplier

Develop a new product

Approve a bank loan

Manufacture a product

Prepare a proposal

Fill a customer order

Develop a budget

Lower transaction costs

Eliminate intermediaries

Work across geographyGreater concurrency

Integrate role and task

Increase outcome flexibilityControl process

Routinize complex decision

Reduce time and costsIncrease output quality

Improve analysisIncrease participation

Adapted from: Davenport, T. H. and Short, J. E., "The New Industrial Engineering: Information Technology and Business ProcessRedesign," Sloan Management Review, Summer 1990, p. 17.

Organization Entity Interorganizational

Interfunctinal

Interpersonal

Objects Physical

Informational

Activities Operational

Managerial


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Process Classification Scheme: AA Global Best Practice KB


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Process Classification Scheme: AA Global Best Practice KB

Produce &deliver forproduct

organization

Produce &deliver for

serviceorganization

Invoice &service

customers

Understandmarket &customer

Developvision &strategy

Designproducts &

services

Market& sell

Develop & manage human resources

Manage information/knowledge

Manage financial & physical resources

Execute environmental management program

Manage external relationships

Manage improvement and change

Operating processes

Management&support

processes

Source: A Note on Knowledge Management, Harvard Business School 9-398-031, 1997.

ew e nsurance o cy pp ca on rocess a


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30 steps, 5 departments, 19 persons

Issuance application processing cycle time:24 hours minimum; average 22 days

only 17 minutes in actually processing the application

Department AStep 1

Department AStep 2

Department EStep 19

. . . .

IssuanceApplication

IssuancePolicy

ew e nsurance o cy pp ca on rocess aMutual Benefits Life Before Reengineering*

*Source: Adapted from Rethinking the Corporate Workplace: Case Manager atMutual Benefit Life, Harvard Business School case 9-492-015, 1991.


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Reengineering Example


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Reengineering Example

Which line isshorter andfaster?

Cash LaneNo more than10 items

Reengineered Process


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Reengineered Process

Key Concept: One queue for multiple

service points

Multiple servicesworkstation


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MOT Analysis Example


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MOT Analysis Example

Prio to MOT Recognition

Information gathering Comparison

MOT Applying for Credit Card

Receiving Credit Card Using Credit Card

Providing Information

Changing and Upgrading

Gifts giving

Emergency Assisting

After MOT No usage follow-up

Stop membership follow-up

End-to-End Processes


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End-to-End Processes

Customer

Manufacturing Inventory Mgmt.

Shipping

Marketing/Sales

AccountReceivable

Think from the Customer Back


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Think from the Customer Back

The CustomerThe Customer

Management

Organization

Functions/Processes

Activities/Tasks

DefineOutcomes

RedesignOutputs

DetermineActivities

Define

Job Responsibilities

DevelopOrganization Structure

* Adapted from The PriceWaterhouse ChangeIntegration Team, Better

Change, Irwin, 1995, p. 163.

Reengineering & Customers*


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Reengineering & Customers

Paradigm Shift: Make and sell Sense and service

Mass marketing Micro-marketing

Transaction marketing Relationship marketing

IT Enablers

Multimedia: e-Learning Communication networks: Internet and intranet

Scanning technologies: RFID

Electronics commerce

Customer databases: CRM

Mobile computing

Source: James I. Cash, Jr., "Listen To Your Customers", Information Week, Feb. 27, 1995, p. 108.


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Is EC Appropriate for You?


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Is EC Appropriate for You?

Industries who set up

virtual storefronts


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Virtual Communities


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Virtual Communities

VirtualCommunity

Users

Money

Content Demographics

Providers

Content

Hard goods

Games

Services

OtherWebsites

Advertisers

Advertising


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The B2C Business Models Bricks, Clicks, Revolution and Evolution


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The B2C Business Models Bricks, Clicks, Revolution and Evolution

Bricks Clicks

Bricks & Clicks

Sat on the sidelines for the explosion Evolved to online commerce Online services are incremental Not huge differentiators for clients Source of convenience Took advantage of lessons learned Assets CHEAP from Click failures

Mergers or sales of assets to Bricks Folding bricks ventures into portfolio Narrow focus of offerings

eBay, Amazon, Webvan,

Wingspan Bank, Yahoo

Gap, Safeway, Wallmart

Bricks organizations set upseparate click organizations

to give the required freedom

to operate in the fast moving

Click environment

or Clicks organizations were

created through VC capital

Wells Fargo, Safeway,

Barnes and Noble

IT Technology Driven vs. Business Pulled


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ec o ogy e s us ess u ed

InformationTechnology

InformationTechnology

BusinessReengineering

BusinessReengineering

How can IT supportbusiness strategiesand businessprocesses?

Technology-driven

Business Vision& Strategy

Business Vision

& Strategy

Business-pulled

How can businessstrategies bechanged businessprocesses betransformed usingIT?


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Business environments Market demands Technology development Social trends

Geographic distributionLocalization

Man, Market, Money, Method, Machine, Material, Message


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Man: Human Resource,Employees

Market: Customers

Machine:Property

Facility Technology

Material:

Raw material

Method:Technique

Process Project Task

Money:

Accounting

Finance Investment

$$$ Message:

Information

y g


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