–Buying and selling of goods/services and the transfer of funds through digital communications

 –Includes on-line display of goods and services, ordering, billing, customerservice and all handling of payments and transactions

–Digital transactions and processes within a firm, involving informationsystems under firm’s control

--information exchanges related to buying and selling

 –servicing customers and collaborating with business partners, distributors and suppliers.

–encompasses sophisticated business-to-business interactions and     collaboration activities at a level of enterprise applications and business processes.

1. –Collaborative product development.

2. –Collaborative planning, forecasting and replenishment.

3. –Procurement and order management.

4. –Operations and logistics.

Supply Chain Management, the planning and execution issues involved in managing a supply chain

SCM- BACK OFFICE system

back office, management information systems that integrate and automate many of the business practices associated with the operations or production aspects of a company

ERP

Buy side: organizations that use e-Business facilities for their buying needs,e.g., spot purchasing and/or enterprise-wide procurement.

Sell side: businesses that sell their products via the transaction mechanisms offered in e-Business applications.

The set of plans and objectives by which applications of internal and external electronically mediated communication contribute to the corporate strategy”

            •Should support not only corporate strategy objectives but also various functional strategies like marketing and supply chain mgmt

3 Theories to analyze e-Business effects:

The theory of competitive strategy

Based off of Porters five forces model of  competition;                

1.The bargaining power of customers

                        2.The bargaining power of suppliers

                        3.The barriers to entry for new competitors

                        4.The threat of new substitute products or services       

                        5.The competition among existing firms in the industry

3 Theories to analyze e-Business effects:

The resource based view

•Considers internal resources and competencies as sources of competitiveadvantage

 •build a strategic position by picking the right resources and building             competencies that are unique and difficult to imitate

                        –outsourcing of all activities that are not core

                        –firm to be more lean and more faster

•Exchanges with external firms entail a variety of coordination costs associated with various aspects of firm relationships

•Internet technology is expected to significantly reduce transaction costs

•Should necessary resources be obtained either through the market orinternally? 

Implementation of e-Business Strategies:

Top Down- Business transformation is a business wide occurrence

                        -Start with development of the business vision

 Bottom up- Business reengineering starts as an experiment in an    inconspicuous part of an organization

                        - Lessons drawn from experience of trial run, and then slowly taken to more complex area of company.

Leading a change project or business-wide initiative requires people to plan the change and build business wide support

            –Part of program management

•Traditional

                        –IS specialist focus on the delivery of the implementation of technology, w/o consider the organizational aspects

                        –Assumption that technology does all the work of organization changeand agents only need to change technology

•Facilitator

                        –Central belief that people, not technologies create change

                        –Change agent remains neutral, does not ‘push’

                        –Organization remains responsible for change

•Advocate

                        –Focus on inspiring people to adopt the change

                        –Know what the organization need and has to do and shows people how to do it

                        –Does not remain neutral

disruptive technology is a new way of doing things that initially does notmeet the needs of existing customers.

                        –tend to open new markets and destroy old ones.

             sustaining technology produces an improved product -customers are eagerto buysuch as a faster car or larger hard drive.

Business Model:

Defined as: a descriptive representation of the fundamental components of a business

The internal aspects of a business venture

Takes central position in a business strategy

8 Key Elements of a Business Model :

1.Value proposition- Why should customer buy from you?

2.Revenue model-How will firm earn revenue, generate profits, and procude superior return

3.Market opportunity- What marketspace do you intend to serve and whats it size

4.Competitive environment-Who else occupied intended marketspace

5.Competitive advantage-Creating superiod prod or lower price

6.Market strategy- How will you promote prod/serv to attract target audience

7.Organizational Development- What type of org structure necessary to do bus plan

8.Management team- What kind of exper and background are import for comp leaders to have

5 e-Business Models Classifications :

1.Internet-enabled-

classified by degree of innovation and funcitonal integration

2.Value-web

Broker goes out and finds right company for you

3.E-business enabled

Most common IT based bus org. especially valid for b2b contexts

4.Market participant

Either producer or distributor

5.Cyber-intermediary

orgs that operate on emarket to facilitate exchange by satisying needs of both consumer and producer