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3 1b E Business

3 1b E Business

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Electronic Business

Professor Petter Gottschalk Norwegian School of Management BI

Professor Petter Gottschalk

Electronic Business

1

Properties of the Internet for E-Business
1. Mediating technology
2. Universality 3. Network externalities 4. Distribution channel 5. Time moderator

6. Assymetry shrinker
7. Infinite virtual capacity 8. Low cost standard 9. Creative destroyer 10. Cost reducer

Afuah and Tucci, Internet Business Models and Strategies, 2003

Professor Petter Gottschalk

Electronic Business

2

Drivers of Digital Transformation
1. Electronic delivery
2. Information intensity 3. Customizability 4. Aggregation effects 5. Search costs

6. Real-time interface
7. Contracting risk 8. Network effects 9. Standardization 10. Competencies

Andal-Ancion, Cartwright and Yip, Sloan Management Review, 2003

Professor Petter Gottschalk

Electronic Business

3

Strategies for Digital Transformation
A. Classic disintermediation. Cutting away layers of middlement, such as distributors, that separate the company from its customers. B. Remediation. Introducing middlement as intermediaries such as market-facing enterprises. C. Network-based mediation. Building strategig aliances and partnerships with new and existing players.
Andal-Ancion, Cartwright and Yip, Sloan Management Review, 2003

Professor Petter Gottschalk

Electronic Business

4

Drivers of Strategy for Digital Transformation
1. Electronic delivery A 6. Real-time interface
7. Contracting risk 8. Network effects B 9. Standardization 10. Competencies B C C

2. Information intensity A 3. Customizability 4. Aggregation effects 5. Search costs

Andal-Ancion, Cartwright and Yip, Sloan Management Review, 2003

Professor Petter Gottschalk

Electronic Business

5

services.Migrating to eBusiness Models.Electronic Commerce • Buying. information. services. selling. • Reducing customer search and switching costs Weill and Vitale. • Delivery of goods. 2001 Professor Petter Gottschalk Electronic Business 6 . or exchanging products. via computer networks such at the Internet. and information. or payments over computer networks or by any other electronic means. Place to Space .

agents. • Conduct of business and business processes over computer networks based on nonproprietary standards. allies. and complementors. 2001 Professor Petter Gottschalk Electronic Business 7 . customers. selling. Place to Space .Electronic Business • Marketing. Weill and Vitale. delivering.Migrating to eBusiness Models. suppliers. services. servicing. competitors. and paying for products. and information across networks linking an enterprise and its prospects. buying.

E-Commerce & E-Business E-Commerce is what you do…E-Business is what you are… E-Business • Enterprise designed for success in the Information Age • Creates new sources of shareholder value E-Commerce – Building customer loyalty • Marketing – Optimizing business process • Selling – Creating new products and services • Buying of products – Managing risk and compliance and services on – Reaching new markets the Internet – Enhancing human capital – Harnessing technology – Achieving market leadership Professor Petter Gottschalk Electronic Business 8 .

Place to Space . products. and services) in digital form to customers via third parties. 2. and an aggregator. Content Provider is a firm that creates and provides content (information. 4. Full Service Provider is a firm that provides totat coverage of customer needs in a particular domain. Weill and Vitale. an auction. 3.Migrating to eBusiness Models. Direct to Customer is a firm that communicates directly with its customers. 2001 Professor Petter Gottschalk Electronic Business 9 .Business Models for E-Business 1. Intermediary is a firm such as a portal.

8. Shared Infrastructure is a firm that provides infrastructure shared by its owners.) 5. Place to Space . Virtual Community sponsor is a firm that creates communication between members. Whole of Enterprise / Government is a single point of contact for users. Value Net Integrator is a firm that coordinates information in member value chains. Weill and Vitale.Migrating to eBusiness Models. 2001 Professor Petter Gottschalk Electronic Business 10 . 6.Business Models for E-Business (cont. 7.

Business Model: Content Provider Professor Petter Gottschalk Electronic Business 11 .

Business Model: Direct to Customer Professor Petter Gottschalk Electronic Business 12 .

Business Model: Full-Service Provider Professor Petter Gottschalk Electronic Business 13 .

Business Model: Intermediary Professor Petter Gottschalk Electronic Business 14 .

Business Model: Shared Infrastructure Professor Petter Gottschalk Electronic Business 15 .

Business Model: Value Net Integrator Professor Petter Gottschalk Electronic Business 16 .

Business Model: Virtual Community Professor Petter Gottschalk Electronic Business 17 .

Business Model: Whole of Enterprise / Government Professor Petter Gottschalk Electronic Business 18 .

Business Models for E-Business Direct to Customer Great extent Intermediary Virtual Community Integration with customers Whole of Enterprise Full-Service Provider Value Net Integrator Little extent Content Provider Shared Infrastructure Little extent Professor Petter Gottschalk Integration with partners Electronic Business Great extent 19 .

Infrastructure for Electronic Business Local applications Shared standard IT applications Shared information technology services Human information technology infrastructure Information technology components Weill and Vitale. 2001 Professor Petter Gottschalk Electronic Business 20 . Place to Space .Migrating to eBusiness Models.

Place to Space . 2001 Professor Petter Gottschalk Electronic Business 21 .70 Infrastructure Services 13 7 6 9 4 20 7 2 2 Applications infrastructure Communications Data management IT management Security Architecture and standards Channel management IT research and development IT education Weill and Vitale.Migrating to eBusiness Models.

9 Middleware linking systems on different platforms 1.10 Wireless applications such as web applications for wireless devices 1.8 ERP (enterprise resource planning) services 1.12 Workflow applications such as groupware 1.5 Centralized management of e-business applications such as common standards 1.11 Application services provision to business units 1.6 Centralized management of infrastructure capacity such as server traffic 1.4 Enforce email policies 1.1 Internet policies such as employee access 1. filtering policies 1.2 Enforce Internet policies 1.13 Payment transaction processing such as EFT (electronic funds transfer) Professor Petter Gottschalk Electronic Business 22 .7 Integrated mobile computing applications such as access for internal users 1.3 Email policies such as inappropriate and personal mail. herassment policies.70 Infrastructure Services 1. Applications infrastructure 1.

etc.4 Extranet capabilities to support information and applications 2.2 A centralized data warehouse that summarizes key information 3.5 Workstation networks 2. Data management 3.3 Data management advice and consultancy 3.4 Electronic provision of management information 3.7 Electronic support to groups 3.2 Broadband communication services 2. Professor Petter Gottschalk Electronic Business 23 .3 Intranet capabilities to support publishing.1 Communications network services 2. directories. 2.70 Infrastructure Services 2.6 Knowledge management in terms of communities of practice etc.5 Storage farms or storage area networks 3.6 EDI linkages to customers and suppliers 2. Communications 2.1 Manage key data independent of applications 3.

6 Negotiate with suppliers and outsourcers 4.2 Server farms including mail server.4 Firewall on secure gateway services Professor Petter Gottschalk Electronic Business 24 .3 Installation and maintenance of workstations and LANs 4. web servers and printer servers 4.8 Common systems development environment 4. Security 5.2 Enforce security policies for information systems 5.9 Pilot e-business initiatives such as pilot web shopfronts 5. IT management 4.4 Information systems planning for strategy 4.3 Disaster planning for business applications 5.1 Security policies for use of information systems 5.1 Large scale data processing facilities 4.7 Service level agreements 4.5 Information systems project management 4.70 Infrastructure Services 4.

5 Specify architectures for work 6. Architecture and standards 6.3 Specify architectures for communications 6.12 Specify architecture standards for technology 6.15 Specify architecture standards for work Professor Petter Gottschalk Electronic Business 25 .6 Enforce architectures for data 6.70 Infrastructure Services 6.2 Specify architectures for technology 6.1 Specify architectures for data 6.8 Enforce architectures for communications 6.14 Specify architecture standards for applications 6.7 Enforce architectures for technology 6.13 Specify architecture standards for communications 6.11 Specify architecture standards for data 6.10 Enforce architectures for work 6.4 Specify architectures for applications 6.9 Enforce architectures for applications 6.

2 Kiosks 7.7 Mobile computing Professor Petter Gottschalk Electronic Business 26 .5 IVRs 7.4 Call centres 7. Channel management 7.17 Enforce architecture standards for technology 6.3 Web sites 7.16 Enforce architecture standards for data 6.6 Mobile phones 7.18 Enforce architecture standards for communications 6.20 Enforce architecture standards for work 7.1 Electronic file transfer protocols 7. Architecture and standards (cont) 6.70 Infrastructure Services 6.19 Enforce architecture standards for applications 6.

1 Training and use of IT 9.2 Evaluate proposals for new information systems initiatives 9.2 Management education for generating value from IT use Professor Petter Gottschalk Electronic Business 27 .70 Infrastructure Services 8. IT research and development 8. IT education 9.1 Identify and test new technologies for business purposes 8.

Place to Space . 2001 Professor Petter Gottschalk Electronic Business 28 .Contingent Infrastructure Services 8 E-Business 70 Infrastructure Services Models Weill and Vitale.Migrating to eBusiness Models.

5: Storage farms and networks Professor Petter Gottschalk Electronic Business 29 .Business Model: Content Provider Infrastructure service # 3.

Business Model: Direct to Customer Infrastructure service # 1.13: Payment transaction processing Professor Petter Gottschalk Electronic Business 30 .

6: Centralized server capacity Professor Petter Gottschalk Electronic Business 31 .Business Model: Full-Service Provider Infrastructure service # 1.

Business Model: Intermediary Infrastructure service # 3.6: Knowledge management systems Professor Petter Gottschalk Electronic Business 32 .

3: Architecture for communication Professor Petter Gottschalk Electronic Business 33 .Business Model: Shared Infrastructure Infrastructure service # 6.

Business Model: Value Net Integrator Infrastructure service # 3.2: Centralized data warehouse Professor Petter Gottschalk Electronic Business 34 .

Business Model: Virtual Community Infrastructure service # 9.1: Training and use of IT Professor Petter Gottschalk Electronic Business 35 .

2: Centralized data warehouse Professor Petter Gottschalk Electronic Business 36 .Business Model: Whole of Enterprise / Government Infrastructure service # 3.

The individual term paper should be entitled ""Knowledge Management Systems in Electronic Business". Research literature linking knowledge management and e-business may be hard to find. the literature review is an important part of the paper.20 pages. The individual term paper should be 10 . It is not expected that you cover all issues in the literature.Individual term paper (50%) The objective of the individual term paper is the written presentation of a difficult question in a clear manner. It should address and discuss how knowledge management can improve and support electronic business. clarity in the organization of the paper and logical flow is as important as substance. A causal loop diagram must illustrate the main constructs (phenomena) and their relationships. Therefore. An important task is to identify and discuss research literature. Professor Petter Gottschalk Electronic Business 37 . Each student will hand in the individual term paper on or before April 15. so you will have to spend a lot of time searching in library databases. It is extremely important that your own thinking is the base. Therefore.

Journal of Intellectual Capital. USA. Boston. “A knowledge-based theory of the firm to guide in strategy formulation”. Redesigning enterprise processes for e-business. “Linking e-business and operating processes: The role of knowledge management”. ? ? ? ? ? ? ? • • • • • • • • Professor Petter Gottschalk Electronic Business 38 . 40 (4): 889-907.Individual term paper (50%) Literature • • El Sawy. O A (2001). McGraw-Hill. 2 (4): 344-358. Sharon and Smith (2001). IBM Systems Journal. Fahey. Massachusetts. Sveiby (2001). Srivastava.

SECOND GENERATION E-BUSINESS Knowledge Management (El Sawy 2001) Professor Petter Gottschalk Electronic Business 39 .

Koble. samle og skape. 9. Collect and Create. Personalize. En forretningsprosess kan bli redesignet ved å la kunnskap utvikle seg rundt den gjennom alle menneskene som deltar i prosessen.og syntesemulighetene rundt en prosess til å generere merverdi. (El Sawy 2001) Professor Petter Gottschalk Electronic Business 40 . En forretningsprosess kan bli redesignet ved å øke dens evne til å lære om preferansene og vanene til kunder og prosessutførere. Analysere og syntetisere. Gjør prosessen intim ved hjelp av preferansene og vanene til deltakerne. Smart vekst i gjenbrukbar kunnskap rundt prosessen gjennom alle som berører den. Utnytt de interaktive analyse. Analyze and Synthesize. En forretningsprosess kan bli redesignet ved å benytte eksisterende kunnskap. Personliggjøre.Knowledge Principles in E-Business Processes 8. Connect. 10.

KM focal points. 2001) …knowledge flow …know what …knowledge use …know why Professor Petter Gottschalk Electronic Business 41 . …knowledge stock By addressing such questions as… …know how In order to… …increase external performance …increase internal performance …increase quality of life (Fahey et al. questions. and goals KM develops and evaluates….

2001) Professor Petter Gottschalk Electronic Business 42 .Sample e-business generated knowledge issues Business Issues Customer solutions Knowledge Issues What specific types of customer functionality How e-business will affect solutions Why some customers respond Rivals What new forms of customer value How new rivals emerge Why emergent rivals will reshape traditional industry boundaries (Fahey et al.

Sample e-business generated knowledge issues Business Issues Market place Knowledge Issues What strategy models work How strategy models work Why strategy models work Assets What assets increase in importance How to develop critically required assets Why assets change in importance in e-business (Fahey et al. 2001) Professor Petter Gottschalk Electronic Business 43 .

Sample e-business generated knowledge issues Business Issues Business Processes Knowledge Issues What business processes change in ebusiness How do they change Why do they change (Fahey et al. 2001) Professor Petter Gottschalk Electronic Business 44 .

(Fahey et al. Product Development Management – PDM. Supply Chain Management – SCM. 2001) Professor Petter Gottschalk Electronic Business 45 . 3. 2. Customer Relationship Management – CRM.Core operating processes in e-business 1.

2001) Professor Petter Gottschalk Electronic Business 46 .Knowledge issues in operating processes Processes PDM Know-What What level of increased speed? Know-How How can we share the content and the context? Know-Why Why are continual new product enhancements important? Why do these changes? SCM What changes are needed? How do these changes? CRM What are our customers needs? How can we collect relevant information? Why have customer expectations changed? (Fahey et al.

Business Model: Content Provider Know-What? Know-How? Know-Why? Professor Petter Gottschalk Electronic Business 47 .

Business Model: Direct to Customer Know-What? Know-How? Know-Why? Professor Petter Gottschalk Electronic Business 48 .

Business Model: Full-Service Provider Know-What? Know-How? Know-Why? Professor Petter Gottschalk Electronic Business 49 .

Business Model: Intermediary Know-What? Know-How? Know-Why? Professor Petter Gottschalk Electronic Business 50 .

Business Model: Shared Infrastructure Know-What? Know-How? Know-Why? Professor Petter Gottschalk Electronic Business 51 .

Business Model: Value Net Integrator Know-What? Know-How? Know-Why? Professor Petter Gottschalk Electronic Business 52 .

Business Model: Virtual Community Know-What? Know-How? Know-Why? Professor Petter Gottschalk Electronic Business 53 .

Business Model: Whole of Enterprise / Government Know-What? Know-How? Know-Why? Professor Petter Gottschalk Electronic Business 54 .

Three families of intangible assets (Sveiby 2001) Professor Petter Gottschalk Electronic Business 55 .

Knowledge Transfers (Sveiby 2001) Professor Petter Gottschalk Electronic Business 56 .

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