Unit 1. Introduction to e-business

Transcription

1 Unit 1 Introduction to e-business

2 Topics What is e-business? The e-business Cycle IBM Application Framework for e-business Introduction to Friendly Foods Case Study

3 What is e-business? An e-business is an organization that connects critical business systems directly to its customers, employees, partners, and suppliers via intranets and extranets and over the Web.

4 The Value of e-business What is the value of being an e-business? How does an organization become an e-business? Companies embracing e-business are able to dramatically improve and integrate key business processes using Internet technologies. How can customers achieve e-business value for their own organizations?

5 Opportunities Serve customers worldwide Become more efficient Grow revenue Increase market share Reduce costs Enhance communities Customers Partners Employees Suppliers

6 Real-life Value of e-business Retailer Quadrupled revenue Saved $2.8M Improved satisfaction Insurance Company Doubled policies sold Saved $.6M annually Airline Saved $4 million Reduced average ticket price Manufacturing Company Increased orders Improved dealer satisfaction 75% lower transaction costs $60M saved Telecommunications Company Increased customer satisfaction Saved $2.5 million Source: The McKenna Group and IBM.

7 High Impact Processes Banking and Finance Customer support and development Customer acquisition Payment and billing Manufacturing Retail Distribution Insurance Telecommunication Travel Procurement Inventory management Customer acquisition Procurement and inventory management Customer acquisition Customer/channel support & development Claims processing (P&C only) Customer support and development Invoicing Customer acquisition Customer support and development

8 Worldwide Internet Growth Users (Millions) Rest Of World Japan/AP Western Europe North America 261M 350M 449M 542M 623M M Source: IDC

9 Business-to-Consumer e-commerce $Billions 200 $184B (U.S. only) Source: Forrester

10 Business-to-Business e-commerce $Billions 8000 $7.29T (Worldwide) Source: GartnerGroup

11 Power Shift in the Marketplace Shift of power to the customer More informed Worldwide vendor choice Easier to transact Explosion of business activity and competition Shift of advantage to the agile Companies that are prepared Companies that can act quickly

12 Helping CEOs Reach Their Strategic Goals Improve Customer Satisfaction 76% Reduce Cost Structure 67% Globalize Operations 56% Foster Innovation Accelerate Speed to Market 56% 54% % of CEOs Grow Market Share 44% Source: Booz, Allen & Hamilton and the Economist, May 1999, Survey of 600 WW CEOs

13 Emerging Commerce Models There's an upsurge of new intermediaries that offer innovative trading methods at attractive cost They are pressuring traditional channels with their: Low cost of operation Global reach Limitless scope of products and services

14 e-marketplaces Two-way simultaneous auctions in which both buyer and seller prices float Seller Frictionless market Buyer Seller Buyer Seller Seller Intermediaries Buyer Buyer Seller Seller Buyer Buyer

15 Pervasive Computing Mobile e-business Networked Home SmartCard Networked Vehicle

16 The Opportunity The landscape is changing -- And it's changing very quickly Ubiquity and acceptance of the Internet Dramatic growth of e-commerce Innovative new business models Pervasive access To thrive, companies must harness the new e-business environment

17 Topic 1 Summary An e-business is an organization using Internet technologies to connect critical business systems to major constituents The e-business opportunity is growing at an extremely high rate and represents an increasing portion of customer spending and revenue potential

18 Topics What is e-business? The e-business Cycle IBM Application Framework for e-business Introduction to Friendly Foods Case Study

19 The Realities of e-business Customers do not control the Internet. The world is heterogeneous; there are clients and servers. Downtime will affect more than employee productivity There is more pressure on development cycles than ever before.

20 Challenges Open for business around the clock all year long Electronic vs. personal touch Serve Customers Worldwide Technology moving at Web-year pace Dramatic effect on business processes Expectation of immediate response Rules of competition changing Security and privacy are real concerns

21 Infrastructure Investment H I E D S p ci l e R a e ' T S C o v M P The Road to e-business Maximum gain Cultural and IT change "Bet your business" Real functional benefit Considerable effort, disruption, and risk B2B and B2C transactions Transform the business TOR L IA TH E U P N Y P A YO FFF ROM O I O FF C E C M UTE P RS Low impact Not difficult Some value Some effort Non-disruptive Minor risk p o r t M AN A G E M E N N WE T E S S T P E S e p ci l ep R ort a e r S to ry T COM P HE UT R E SLU Publish info on the Web Provide access to customer data M A N A G EM EN T D ISC O V E R S TH E H UM A OF N SI DE A U O T MA T ON I Complexity of Processes and Business Model

22 New Thinking Is Required On a Strategy Level: Organizational practices must change Solution Frameworks for e-business Leverage Run Transform Build On a Technology Level: Applications and infrastructure must develop Application Framework for e-business

23 The e-business Cycle - A Proven Approach Leverage knowledge and information Transform core business processes Run a scalable, available, safe environment Build new applications

24 Transform Key Business Processes Transform Key Areas Customer loyalty Employee awareness, self help, and communication Supply chain management Electronic commerce Business Intelligence

25 Becoming an e-business Transform Customers Employees Suppliers Channels Inventories and Supplies Business Status Today Mass merchandising relationship based on latest transaction Functionally competent Vendors Bricks and mortar Based on historical and market forecasts Executive view rolled up from functional activities Goals Personalization Long-term loyal relationship Broader awareness and expertise in efficiently serving customers Partners in serving the customer Optimum mix of electronic and physical Reflects current customer and market activity View based on up-to-the-minute integrated operational activity

26 High-Impact Processes Transform Industry Banking and Finance Manufacturing Process Customer support and development Customer acquisition Payment and billing Procurement Inventory management Retail Distribution Insurance Telecommunications Travel Customer acquisition Procurement and inventory management Customer acquisition Customer/channel support and development Claims processing (P&C only) Customer support and development Invoicing Customer acquisition Customer support and development Source: McKenna Group and IBM, 1998.

27 Success Requires Transform Executive vision and commitment to adapting to e-business and building the business model to support it Priorities for business processes Company-wide teamwork Access to proven expertise Planning consulting Customer relationship services Supply chain management services E-commerce services Business management/erp services Return on Web investment

28 Build Applications on Proven Assets Key Areas New applications that span and extend existing applications and data Reduce the time it takes to build and deploy applications Design applications based on standards that span multiple platforms and vendors Build applications that are easier to expand and that evolve with market needs Build

29 A New Generation: Network-Centered Applications Build Broad access via the Web Optimized to the individual From everywhere with anything To new and existing applications and information Scalable, available, reliable applications Security and privacy built into applications Flexibility to evolve with market needs

30 The Application Model You Choose Matters Build BUILD RUN MANAGE NT LinuxAIX SolarisOS/2 NetWareHP-UX OS/400OS/390

31 Success Requires Build Integrated applications Existing applications expanded with e-business functions Software that spans platforms and vendors Built-in security and privacy Standards-based components that evolve with market needs

32 Run An Enabling Infrastructure Key Areas Be open for business 24 hours a day, 7 days a week, 365 days a year Respond rapidly to any and all requests Manage the extended enterprise effectively Provide a secure environment for electronic transactions and data transfers Protect customer privacy Create a more cost-effective infrastructure that grows as business grows Run

33 Available and Responsive What's needed? Redundancy What's it worth? Cost of outage Run Scalability Clustering Workload Management Availability vs. Lost business Brand reputation Personnel costs Customer satisfaction Loyalty

34 Success Requires A scalable, available, secure environment Open for business non-stop Capacity on demand Accessible from anywhere Single-action management across the extended enterprise Appropriate level of security Run

35 Continuous Improvement Key Areas Leverage A responsive culture Organizational knowledge shared across the company Information turned into action and market advantage Improved brand image Customer needs anticipated Loyal customers "An organization's ability to learn and translate that learning into action rapidly is the ultimate competitive business advantage."

36 Success Requires Leverage An organization that learns from experience: Effectively captures and analyzes business information Makes information available to the people who need it Shares experience across the organization

37 The Road to Successful e-business Executive vision The right approach Expert help People Tools Solutions e-business Success Leverage Transform Run Build Web presence Web information access An integrated, enabled e-business Web transactions

38 Topic 2 Summary The e-business opportunity is growing at an extremely high rate and represents an increasing portion of customer spending and revenue potential The e-business opportunities with the highest ROI differ from one industry to another, but all face common challenges in: Customer relationship management Supply chain management Electronic commerce The e-business cycle defines IBM's approach to creating a successful e-business

39 Topics What is e-business? The e-business Cycle IBM Application Framework for e-business Introduction to Friendly Foods Case Study

40 Topic 3 Objectives Describe the Application Framework for e-business State why the Application Framework for e-business is important Describe the main features of the Application Framework for e-business List some of the products that support the framework

41 e-business Adoption Process Next Generation e-business e-business Web Publishing Security Chasm Business Value Chasm Stage of Adoption Awareness Presence Pilot Adoption Process Investment Cross- Process Integration Value Network Creation Focus Use the Internet Internally Establish a Web site Allow Access to Core Systems (read only) Allow Transactions on Core Systems Improve Core Business Process(es) Redefine Core Process(es) Integrate Core and Redefined Processes with Partners and Customers Source : The McKenna Group Interviews and Analysis

42 Transforming Core Processes Suppliers e-commerce Supply Chain Management Enterprise Resource Planning Customer Relationship Management Collaboration Business Intelligence Knowledge Management e-commerce Customers Business Integration Infrastructure -

43 Evolution of e-business Application Capabilities Web-based Transactions Workflow/Business Integration E-marketplace Web Serving Web-Based Messaging Content Management Secure Network Web-Based Collaboration Business Intelligence Systems Management Pervasive Computing Unified Portals - Web Presence e-business Transactions Integrated e-business "Next Generation"

44 Building e-business Applications Application Framework for e-business Build Run Manage Windows NT/2000 Linux AIX NetWare Solaris HP-UX OS/2 OS/400 OS/390 An architecture that enables continued e-business transformation through the use of: An open, standards-based e-business platform Patterns for e-business A comprehensive product set

45 PCS erver 32 0 Web Browser Branches Business Systems Customer Support Centers Web Standards Connectors Operational Data and Applications Business Partners Web Application Server ecommerce Collaboration Business Intelligence Figure 1. Server based e-business applications

46 First Tier Middle Tier Third Tier Thin client, Browser Netscape/IE, PDA, Mobile phones, HTML pages, Web TV HTTP(S) Server Web server, Application server, Transaction server, Servlets, JSP, Business Logic Beans, Data Access Beans, Connectors 320 Server TCP/IP Enterprise Information Systems Figure 7. The Application Framework system model

47 Figure 2-6. Attributes of e-business Applications (in212225)

48 Open e-business Platform Portable and Interchangeable Presentation/Access Web XML Portable and Interchangeable Data/Documents Portable and Interchangeable Business Logic Java Linux Open and Portable Operating System Services

49 Standards - Leading the Industry Standards for : Infrastructure Presentation Application Logic Data Logic Integration XML, CORBA/IIOP, Messaging Client HTML, XML, WML, VXML Web Application Server ORB, Java VM, RDB and Transaction Java Servlets, JSP, EJB LINUX Infrastructure TCP/IP, HTTP, SSL, X.509v3, LDAP, PKI, SNMP, WfM, WBEM...

50 The Infrastructure for e-business Appliance Servers Web Application Servers Data Transaction Servers Application Framework for e-business Build Run Manage Windows NT/2000 Linux AIX NetWare Solaris HP-UX OS/2 OS/400 OS/390 Infrastructure that meet business requirements Building a flexible server environment

51 Evolving Infrastructure 1990 Enterprise Evolving Today Enterprise Service Provider Application Server Application Server Application Server Basic Transport Intelligent Network Security Directory Policy Mgmt. Caching Transcoding Network Mgmt. Class of Service Multicast Mobility Client Client Client Client Network Client Network Client Network Client Network Client Network Client

52 Figure 2-8. Client/Server Extended Model (in212235)

53 Figure 2-9. e-business Application Model (in212240)

54 e-business Infrastructure Investment Optimal Investment Infrastructure Investment Over - Investment Waste of Capital Under - Investment Loss of Customers Stage of e-business Adoption e-business Evolution Awareness Presence Pilot Adoption Process Investment Cross- Process Integration Value Network Creation

55 e-business Infrastructure Investment Technology A Infrastructure Investment C B A Technology B Technology C Optimal Investment Technology Shift Stage of e-business Adoption e-business Evolution Awareness Presence Pilot Adoption Process Investment Cross- Process Integration Value Network Creation Stretching a technology beyond its design point is sub-optimal. "One size" does not fit all.

56 The IBM Advantage 1 Flexible and scalable design across infrastructures and platforms Adopt e-business Application Model Rely on multiplatform standards 2 Products and technologies that make it work Speed growth and extend assets Build on a proven foundation with a sound future Harness the power of integrated enterprise-class middleware and tools Application Framework for e-business Build Run Manage Windows NT/2000 Linux AIX NetWare Solaris HP-UX OS/2 OS/400 OS/390 3 Knowledge and expertise to accelerate e-business transformation Start fast and smart with IBM services TM

57 IBM Application Framework for e-business Development Tools and Components Application Server Software Secure Network and Management Software NT OS/2 AIX HP-UX Solaris OS/400 OS/390 Field-tested methodology simplifies development and deployment Rich product portfolio supports simple to sophisticated applications Based on cross-platform standards including Java Focus is on building solutions, not on details of products/components IntroductionBackup.PRZ 5

58 Development Tools and Components IBM VisualAge Lotus Domino Designer IBM WebSphere Studio SanFrancisco and esuite Helps professional programmers extend existing applications and add new function Visual programming environment Supports major languages, platforms and team development Customizable templates that speed deployment of collaborative applications Built-in services like workflow, content management and full-text search Visual development environment Provides integrated tools and workbench for developers using IBM WebSphere Wizards guide development of servlets and JavaBeans Site management Reusable business components accelerate delivery of applications running on e-business servers IntroductionBackup.PRZ 6

59 Application Server Software IBM MQSeries Lotus Domino IBM WebSphere DB2 Universal Database Connect applications Speed application deployment and integration Manage and integrate business process flow across more than 35 application environments Rapidly develop and deploy collaborative applications Advanced capabilities for managing work and information flow Integration with database, ERP and transaction systems Speed transition from publishing to Web-based transactions For transaction intensive environments Support for distributed business components Best performing database for UNIX and NT Handles multimedia as well as conventional data Optimized for Web applications Delivers enterprise class reliability and availability IntroductionBackup.PRZ 7

60 Secure Network and Management Software IBM SecureWay Family Tivoli Locate Connect Secure Manage Scaleable, standards-based cross-platform directory Directory integration across an extended enterprise Simplest solution for host integration Deliver Web applications "on demand" Mobile access Standards-based Public Key Infrastructure (PKI) Integrated security Scaleable, open, cross-platform Single-action management Easy deployment and maintenance Business system management IntroductionBackup.PRZ 8

61 Topic 3 Summary - A Complete Platform for e-business Application Framework for e-business Build Run Manage Windows NT/2000 Linux AIX NetWare Solaris HP-UX OS/2 OS/400 OS/390 Scalable Reliable Flexible Secure Supporting heterogeneous environments Based on open standards

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72 e-business Building Blocks Performance Security Client Network Server Appl. Server Connectors Enterprise Data and Applications Systems Management

73 Client Building Block Client Main Issues/Decisions: Internet vs. Intranet customer User skill level Site language support Users' usage patterns Application code distribution Application maintain state End-to-end response time

74 Network Building Block Network Main Issues/Decisions: Internet involvement Protocol use Data, object, and application placements Security functions Network function End-to-end response time

75 Server/Application Server Building Block Appl. Server Server Main Issues/Decisions: Single or multiple server design Client choice and server design Number of tiers Development technology Client-side logic and server-side logic Presentation, application, and data access logic Distributed object support End-to-end response time

76 Server Types HTTP Servers Serve up Web pages Serve up clients (Java Applet classes) Commerce Servers Secure payment Shopping carts Browse catalog Personalized shopping Web Application Servers Run (Java) components Run transactions Integrate with legacy data and applications

77 Connectors Building Block Connectors Main Issues/Decisions: Enterprise systems, applications, and data access Data transfer Information status Synchronous or asynchronous connections Security policies Operating system, network protocols, and application environment connections

78 Security Building Block Security Main Issues/Decisions: Transaction encryption User identification Clients/servers security Access restrictions Security data storage Privacy rules Legal requirements Company policies

79 Performance Building Block Performance Main Issues/Decisions: Projected user volume Scalability Availability requirements Server workload management Site statistics Performance measurement

80 Management Building Block Management Main Issues/Decisions: Infrastructure installation Distributed application deployment User and security administration Software distribution Application monitoring Resource management

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86 Topic 1 Summary Now that you have completed this topic, you should be able to: List the main technology building blocks that affect e-business solutions Describe the main issues that each building block must consider Describe the role each building block plays in the e-business application or solution