E-Commerce Strategic Issues INFS3002 Strategic Issues in E-Commerce BUSN7043. Course Adminstration. Consultation Hours. Lecturer & Contact Details

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1 E-Commerce Strategic Issues INFS3002 Strategic Issues in E-Commerce BUSN7043 Course Administration & Introduction Course Adminstration Dennis Hart Dennis Hart Lecturer & Contact Details Lecturer: Dr Dennis Hart Room: Hanna-Neumann 2034 Phone: ext dennis.hart@anu.edu.au Web site Consultation Hours In the normal course of events, I will endeavour to be available in my office during the following periods: Tuesday: 11.00am 1.00pm Thursday: 4.00pm 5.00pm However, other commitments may arise so to be sure to catch me it is wiser to make an appointment beforehand Dennis Hart Dennis Hart Course Overview The aim of the course is to provide students with a balanced view of electronic commerce from a primarily organizational rather than a technical perspective so they have a theoretically sound but nevertheless practically oriented foundation from which to successfully understand the issues related to setting up and running an e-business. Assumed Knowledge It will be assumed that students in this course are familiar with concepts and material covered in typical introductory electronic commerce courses such as INFS2004 or equivalent Dennis Hart Dennis Hart

2 Objectives On completion of this course you will be expected to have achieved: An understanding of the various business and revenue models that have emerged as a result of the advent of electronic commerce, as well as an understanding of how the emergence of electronic commerce has affected more traditional models. A familiarity with the strategic issues raised by electronic commerce, particularly regarding intra- and inter-business information systems Objectives An appreciation of matters such as security, trust, procurement, marketing, customer relationship management, and website content management, that strongly affect the success of electronic commerce. Dennis Hart Dennis Hart Recommended Text Chaffey, Dave (2004) E-Business and E- Commerce Management, 2 nd edition, Prentice-Hall ISBN Available from the Co-op bookshop for $99.95 (less 8% discount if you are a member) I strongly recommend you buy a copy of this text Course Assessment (INFS3002) The course assessment comprises three components: Assignment 20% Tutorial work 30% Final Examination 50% To automatically pass you need to obtain at least 40% for each assessment component, & obtain 50% or more as an overall aggregate mark Dennis Hart Dennis Hart Course Assessment (BUSN7043) The course assessment comprises three components: Assignment & Annotated Bibliography 30% Tutorial work 20% Final Examination 50% To achieve an automatic pass - as for INFS3002 (previous slide) Assignment Will be handed out in Week 4 Due 5.00pm Friday 22 October (i.e. end of Week 12) May be submitted electronically or in hardcopy Subject to late 10% per day (weekend counts as one day) Dennis Hart Dennis Hart

3 Annotated Bibliography Students enrolled in BUSN7043 are required to submit, in addition to their assignment, an annotated bibliography This annotated bibliography is to contain a minimum of 10 academic peer reviewed articles relevant to the assignment topic Tutorials Tuesday 9.00am HN G064 Tuesday 10.00am Moran G007 Thursday 2.00pm Chem G51A Thursday 3.00pm Chem G51A Each tutorial class has a maximum enrolment of 20 Dennis Hart Dennis Hart Tutorial Enrolment Tutorial enrolment will be by using the new Electronic Tutorial Allocation (ETA) system: Tutorials will be open for enrolment at 9.00am tomorrow morning Dennis Hart Tutorials Each tutorial group will meet for one hour each week beginning in the second week of semester One or more discussion points/questions will be set for each week, to be discussed in the following week You are required to submit your response to the discussion point(s)/questions to your tutor on completion of the tutorial class. NOTE: Answers must be provided in word-processed form; handwritten work will not be accepted Dennis Hart Tutorial Work When developing your responses to the tutorial discussion point(s): It is entirely acceptable, indeed desirable, for you to discuss and debate your ideas with your peers It is, however, not acceptable for you to submit identical (or nearly identical) work to that of another student, on the basis that you worked on it together Dennis Hart Tutorial Work You must construct and write your own response to the tutorial discussion point(s)/questions individually and separately from other students Submitted tutorial work that is identical (or nearly so) to that of another student will be deemed plagiarism and penalized accordingly Dennis Hart

4 Tutorial Assessment Your tutor will rate your submitted tutorial work each week on a 4-point scale (individual questions will not be marked): 0 = No acceptable submission 1 = Submitted work is incomplete, or quality is poor 2 = Submitted work indicates basic grasp of the material 3 = Submitted work indicates good grasp of the material 4 = Submitted work indicates excellent grasp of the material Tutorial Assessment At the end of the semester your 10 best tutorial marks (totalling a maximum of 40): Will be adjusted to give your final tutorial mark out of 30 (INFS3002) or 20 (BUSN7043), and May be adjusted up or down to reflect your level of participation/contribution (or lack of it) in tutorial classes Dennis Hart Dennis Hart Final Examination Is worth 50% of the course assessment Will be of 2 hours duration, plus 15 minutes reading time Will be open book (i.e. any reference material textbook or notes may be taken into the exam room) In Your First Week Read the Course Outline document Read Chapter 1 of the textbook Do the prescribed tutorial work for week 1 (available from the course website), so you are ready for the tutorial in week 2 Dennis Hart Dennis Hart Learning Objectives Introduction Dennis Hart Define the meaning and scope of e-business and e- commerce Identify the main reasons for adoption of e- commerce and e-business and inhibitors to adoption Understand the extent of adoption of the Internet and WWW as a vehicle for consumer and business interaction Outline the business challenges of introducing e- business and e-commerce to an organization Dennis Hart

5 e Everything? The Internet and World Wide Web are about a decade old, and now we have: E-commerce E-business E-tailing E-procurement E-marketing etc, etc Impact The internet and World Wide Web, it has been argued, have had and will continue to have a major impact on the way organizations do business, and how consumers interact with them See, for example, the 1996 quote from Intel chairman Andy Groves Dennis Hart Dennis Hart Impact Is the internet a typhoon force, a ten times force, or a bit of wind? Or is it a force that fundamentally alters our business? Some questions: Have you purchased anything using the Internet/WWW? What have you purchased? Dennis Hart Impact If you have not purchased anything via the Internet/WWW, why not? If you have purchased something via the Internet/WWW, what concerns (if any) did you have? If you had concerns, what made you go ahead anyway? What kinds of things might you be willing to purchase via the Internet/WWW? Why? What kinds of things would you not purchase? Why? Dennis Hart Impact Do any business(es) with which you are familiar, or for whom you have worked, have a website? If so, what purposes does the website serve? Do any business(es) with which you are familiar interact with other business(es) using the Internet? What for, and how? Have you interacted in any way with Government using the Internet? What for? Dennis Hart A Bit of History Everyone (at least those in the more developed parts of the world) knows about the dot.com boom and bust The dot-com boom is one of the epic booms of business history. There really are only a handful on this scale Jesse H. Ausubel (Sloan Foundation) Dennis Hart

6 Enthusiasm & Disillusionment The dot.com bubble burst in April 2000 and many businesses failed Share prices tumbled by as much as 90%+ Investment in dot.com businesses has been considerably more cautious since A proper appreciation of the strategic issues associated with doing business via the Internet/WWW is clearly necessary Dennis Hart E-Commerce, E-Business? Terminology can be confusing, especially if used inconsistently So, for our purposes E-Commerce: Electronic exchange of information and/or services between an organization and an external entity E-Business: Electronic exchange of information and/or services within an organization and with external entities Dennis Hart E-Commerce & E-Business E-Commerce E-Business E-Commerce E-Commerce is a subset of E-Business E-Commerce may be divided into two major subsets Buy-side e-commerce: Electronic transactions between the organization and its suppliers Sell-side e-commerce: Electronic transactions between the organization and its customers (which may be other organizations) Dennis Hart Dennis Hart E-Commerce & E-Business Another Classification E-Commerce and/or E-Business can also be classified according to the types of entities involved: B2C: Business to Consumer B2B: Business to Business C2C: Consumer to Consumer B2G: Business to Government G2C: Government to Consumer G2G: Government to Government etc, etc Dennis Hart Dennis Hart

7 How Many Online? E-Commerce by Industry (Projected) B2C & B2B e-commerce (projected growth) Dennis Hart Dennis Hart Internet Generated Revenue Growth Where s the Action? B2C or B2B? Dennis Hart Dennis Hart Internet Advertising Revenue Drivers Potential for increased revenue (from a larger customer base, and loyalty based repeat business) Cost reduction through lower supply/delivery transaction costs & internal business process improvements Customer demand, service improvement, and fear of losing market share Dennis Hart Dennis Hart

8 Drivers (NOIE/AGIMO) To gain a competitive advantage To achieve cost reductions To provides new ways to generate revenue To improve relationships with suppliers and improve service to clients To interact with Government, which is increasingly doing business online Inhibitors According to the UK Department of Trade and Industry (2000), based on organizations that have not taken up e-commerce/e-business: Lack of tangible benefits Irrelevance to the business High technology costs Fraud Confidentiality Dennis Hart Dennis Hart Inhibitors From a 2002 Singaporean study (top 5 issues): Unclear business model(s) Skills shortage Consumer understanding Existing technology inhibitors Legal and policy infrastructure Managerial Motivations In late 2000, one of our Honours students (Alex Berrill) and his supervisor (Sigi Goode) did a survey of Australian managers to see what effects the dot.com crash had had on their motivations to adopt e- commerce Their results were interesting Dennis Hart Dennis Hart Managerial Motivations Managers still expect to gain a competitive advantage from e-commerce adoption Managers expect to achieve better communication with their customers and shareholders (but not with their suppliers or competitors) Managers expect to be able to develop and deliver better products/services Managers do not expect cost reductions Strategic Issues (Internal) Dennis Hart Dennis Hart

9 Strategic Issues (Internal) Structure: Does the organizational structure need to be modified? Systems: Are existing business processes and information systems suitable for e- commerce/e-business initiatives? Style: Is the internal organizational culture (e.g. management style) and external image compatible with e-commerce/e-business? Strategic Issues (Internal) Staff: Are existing staff appropriate? Skills: Are the necessary skills available already, obtainable or purchasable (e.g. via outsourcing)? Strategy: Do we understand how to tackle it? Superordinate Goals: Where does the organization really want to go? Dennis Hart Dennis Hart Strategic Issues (External) How will e-commerce/e-business affect the relationships with: Customers Suppliers Competitors Partners Government(s)? Questions?? Dennis Hart Dennis Hart