MSc BIS – E-Business and Mobile Business Fundamentals PDF

MSc BIS – E-Business and Mobile Business Fundamentals of E-Business and Mobile Business Learning Objectives: You … • Understand the links btw. organisation, technology and e-business • Know the basic concepts of strategic (e-)business management (strategic fit, strategic alignment) • Can distingui...

MSc BIS – E-Business and Mobile Business Fundamentals of E-Business and Mobile Business Learning Objectives: You … • Understand the links btw. organisation, technology and e-business • Know the basic concepts of strategic (e-)business management (strategic fit, strategic alignment) • Can distinguish between business strategy, e-business strategy and IT strategy • See how e-business potentials and e-business risks emerge • Can structure the terms around e-business and business applications • Are able to assign the current catchword “digitalisation” to the evolution of information systems • Understand how to reduce even complex e-business models to a few effect patterns • Get to know how e-business projects can be planned and described Institute for Information Systems – MSc BIS EMB – Fundamentals of E-Business and Mobile Business 22.02.2023 2 Contents • Strategic e-business management • E-Business in the value chain • Digitalisation and digital transformation • Effect patterns in e-business • Business applications • Instruments of e-business management: Business models using e-business Institute for Information Systems – MSc BIS EMB – Fundamentals of E-Business and Mobile Business 22.02.2023 3 An Introduction to E-Business Definition 1: conducting business activities (e.g., distribution, buying, selling, marketing, and servicing of products or services) across company boundaries electronically over computer networks such as the Internet, extranets, and corporate networks (according to Stair/Reynolds 2008, 14 ff.) Definition 2: supporting business relationships and processes of a company with its business partners, customers and employees using networked information technology (according to Wölfle 2000b; Wölfle 2016) Business activities that are strong candidates for conversion to e-business: – Well-structured – Many repetitions – Time-consuming – Information intensive – Inconvenient for customers Institute for Information Systems – MSc BIS EMB – Fundamentals of E-Business and Mobile Business 22.02.2023 4 An Introduction to Mobile Business Definition of mobile e-business: supporting business relationships and processes of a company with its business partners, customers and employees using networked mobile information technology (according to Wölfle 2000b, Wölfle 2016) network - connected Difference Mobile Business and Mobile E-Business - something that can be moved device can be moved - laptop moving could be limited according to the connection. E-Business Mobile E-Business Institute for Information Systems – MSc BIS EMB – Fundamentals of E-Business and Mobile Business 22.02.2023 5 Access to web servers with Swiss IP-addresses A shift from conventional to mobile end-user devices can be observed with the use of Internet services. Institute for Information Systems – MSc BIS EMB – Fundamentals of E-Business and Mobile Business 22.02.2023 Source: http://gs.statcounter.com/platform-market-share/desktop-mobiletablet/switzerland/#monthly-200901-202301, accessed 22.02.2023 The Rise of Mobile Business in Switzerland 7 Access to web servers worldwide Institute for Information Systems – MSc BIS EMB – Fundamentals of E-Business and Mobile Business 22.02.2023 Source: http://gs.statcounter.com/platform-market-share/desktop-mobiletablet/worldwide/#monthly-200901-202301, accessed 22.02.2023 The Rise of Mobile Business Worldwide 8 Source: https://gs.statcounter.com/platform-market-share/desktop-mobiletablet/worldwide/#monthly-201701-201703-map, accessed 31.03.2022 Where is Mobile Predominant over the Desktop – 2017? Institute for Information Systems – MSc IM – E-Business and Mobile Business 1.12.2022 9 Strategic E-Business Management What is a Strategy? Strategy is concerned with the long-term direction of the company. Strategy deals with the overall plan for deploying the resources that a firm possesses. Strategy means to choose between different directions and between different ways of deploying resources. Strategy is about achieving unique positioning against competitors. The central goal of strategy is – to achieve sustainable competitive advantage over rivals and – to ensure sustainable profitability. Source: Jelassi/Martínez-López (2020, 37) Institute for Information Systems – MSc BIS EMB – Fundamentals of E-Business and Mobile Business 22.02.2023 11 Goal of an E-Business Strategy To achieve (long-term) success by building up one or more sources of competitive advantage Environment Market positioning Resource exploitation Goals Competitive advantage e.g., strong and unique brand, large and loyal customer base, innovative products, lowcost production facilities (Long-term) success Resources Implementation Source: Adapted from Hungenberg (2006, 83) Institute for Information Systems – MSc BIS EMB – Fundamentals of E-Business and Mobile Business 22.02.2023 12 Relations between E-Business, Organisation and Technology Organisation Technology IT Institute for Information Systems – MSc BIS EMB – Fundamentals of E-Business and Mobile Business E-Business IS level of information systems 22.02.2023 13 The Trilogy Specified Organisation • • • • • • Business Model Objectives Strategies Structure Business Processes People Technology E-Business • • • • • • • • Hardware Software Networks Telecommunication Institute for Information Systems – MSc BIS EMB – Fundamentals of E-Business and Mobile Business Company Portals Online Shops Market Places EDI 22.02.2023 14 Questions and Interrelations on the Strategy Level Organisation Business Strategy Technology IT-Strategy How? What? Guidelines, Requirements E-Business IS-Strategy Opportunities Institute for Information Systems – MSc BIS EMB – Fundamentals of E-Business and Mobile Business 22.02.2023 Source: Adapted from Earl (1996a, 487) For what? 15 Strategic Alignment Model 4 boxes need to fit to each other Strategy Business Strategy “Technology Exploitation“ E-Business (IS) Strategy “Strategic Alignment” Infrastructure and processes Organisational Infrastructure and Business Processes “Strategy Implementation” Institute for Information Systems – MSc BIS EMB – Fundamentals of E-Business and Mobile Business E-Business Infrastructure and Processes 22.02.2023 Source: Adapted from Henderson/Venkatraman (1994, 204, 209, 213) APPLY IN GROUP WORK only with the 4 elements IT Strategy IT I&P 17 The Relation Between Business Model, Business Processes and Business Information Systems in the B.O.A.T. approach more *strategy implementation* Business model and strategy Business processes describe the operative implementation of the business model. Integrated business processes enable innovative business models. Business processes Business processes use the functionality of business applications for coordination and increased efficiency. Networked business applications enable integrated business processes across locations, time zones, systems and organisations. IT driven business innovation Strategic top-down design B=Business, O=Organisational A=Application T= Technology Business applications Source: Wölfle (2006) Institute for Information Systems – MSc BIS EMB – Fundamentals of E-Business and Mobile Business 22.02.2023 18 The Organisational Fit in Strategic Business Management Organisation Competition (Market) Organisational Capabilities Critical Success Factors Fit? comes from customer Yes XOR No Potential Institute for Information Systems – MSc BIS EMB – Fundamentals of E-Business and Mobile Business Risk 22.02.2023 Source: Adapted from Leimstoll (2001, 261) Diffusion of new Business Concepts Impact Opportunities through new Business Concepts different management approach - 19 An E-Business Strategy Framework Strategic analysis Strategy formulation External analysis Strategy options Strategy implementation Internal organisation Opportunities/ threats Strengths/ weaknesses Sustaining competitive advantage Exploring new market spaces Interaction with suppliers Implementation E-Procurement Internal analysis Creating and capturing value Interaction with users/customers IS System level Institute for Information Systems – MSc BIS EMB – Fundamentals of E-Business and Mobile Business Source: Jelassi et al. (2014, 36) 22.02.2023 20 Practice (1/2) – Part of the Assignment, Topic 1 Develop a Business Model You are planning to start a company to sell simple or innovative products (e.g. clothes, plants, chocolate). Products must have a physical/material element and they can be complemented by intangible/immaterial products/services. Your first task is to develop and describe your business model. It will be the basis for further tasks. A business model description contains at least the following elements: – Define products and services, determine customers and markets – Analyse competition and critical success factors – Value proposition: Identify the value that will be created for your customers – Value creation: Identify core competencies and organisational capabilities that will be needed to create the targeted value/benefit – Evaluate suitable distribution channels – Revenue model: How will the company generate earnings? Institute for Information Systems – MSc BIS EMB – Fundamentals of E-Business and Mobile Business 22.02.2023 21 Practice (2/2) – Part of the Assignment, Topic 1 Develop an E-Business Strategy for Your Company Additional to your business model description, develop an e-business strategy a) using the “Strategy Implementation” approach b) using the “Technology Exploitation” approach c) merging the results into the SAM with all four boxes filled. Document your results (a to c) in some slides. Institute for Information Systems – MSc BIS EMB – Fundamentals of E-Business and Mobile Business 22.02.2023 22 E-Business in the Value Chain Inter-Organisational Value-Added Process Value-Added Processes Supplier/ Seller Company Institute for Information Systems – MSc BIS EMB – Fundamentals of E-Business and Mobile Business Customer/ Buyer 22.02.2023 24 Principle Supplier „Own“ Company Customer Legend E-Business View Application Management Concepts Role/Function Institute for Information Systems – MSc BIS EMB – Fundamentals of E-Business and Mobile Business 22.02.2023 25 Management Processes Customer Business Management Primary Processes Accounting and Finance, Controlling Human Resource Management Secondary Processes Production Outbound Logistics, Finished Products Warehouse External Outbound Logistics Institute for Information Systems – MSc BIS EMB – Fundamentals of E-Business and Mobile Business 22.02.2023 Source: According to Wölfle (2006, p. 10) Inbound Logistics, Raw Materials Warehouse Customer Order Internal Services (IT Services, Maintenance) Information and Document Management External Inbound Logistics Research and Development Purchase Order Order Processing Sales and Procurement Planning and Service Processes Disposition Processes Internal Order Input and Output Processes Marketing and Communication Business Processes Supplier 26 The Company Business Software ERP System Supplier Procurement & Sales Customer Groupware/ CMS/DMS/ Enterprise Portal Legend E-Business View Application Management Concepts PPS Research & Development, Production Role/Function Institute for Information Systems – MSc BIS EMB – Fundamentals of E-Business and Mobile Business 22.02.2023 27 Management Concepts Business Software ERP System Supplier Supplier Relationship Management (SRM) Procurement & Sales Groupware/ CMS/DMS/ Enterprise Portal Customer Customer Relationship Management (CRM) Supply Chain Management (SCM) Supply Chain Management (SCM) Legend E-Business View Application Management Concepts PPS Research & Development, Production Role/Function Institute for Information Systems – MSc BIS EMB – Fundamentals of E-Business and Mobile Business CMS – Content Management System CRM – Customer Relationship Management DMS – Document Management System ERP – Enterprise Resource Planning PPS – Production Planning und Steering SCM – Supply Chain Management SRM – Supplier Relationship Management 22.02.2023 28 Entire View of E-Business E-Business E-Procurement E-Organisation E-Commerce Business Software ERP System Supplier E-Shop/CRM/ Supplier Portal B2B Supplier Relationship Management (SRM) Procurement & Sales Groupware/ CMS/DMS/ Employee Portal E-Shop/CRM/ Customer Portal B2B B2C Customer Relationship Management (CRM) Supply Chain Management (SCM) Supply Chain Management (SCM) Legend E-Business View Application Management Concepts Customer PPS Research & Development, Production Role/Function Institute for Information Systems – MSc BIS EMB – Fundamentals of E-Business and Mobile Business CMS – Content Management System CRM – Customer Relationship Management DMS – Document Management System ERP – Enterprise Resource Planning PPS – Production Planning und Steering SCM – Supply Chain Management SRM – Supplier Relationship Management 22.02.2023 29 E-Business in the Value Chain E-Procurement Supplier/ Seller • Electronic purchaseto-pay-process • E-sourcing • Electronic catalogues • E-Invoicing • B2B networks E-Organisation E-Commerce Company Customer/ Buyer • Employee portals • Workflow management and group work • Knowledge management • Mobile access to business data Institute for Information Systems – MSc BIS EMB – Fundamentals of E-Business and Mobile Business • Online shop • Electronic order-to-cashprocess • Online tendering • Vendor managed inventory • Social media and other platforms as sales and marketing instruments 22.02.2023 30 E-Business and Mobile E-Business Mobile e-business is a subset of e-business. E-Procurement Mobile E-Procurement E-Organisation Mobile E-Organisation E-Commerce Mobile E-Commerce Mobile E-Business Institute for Information Systems – MSc BIS EMB – Fundamentals of E-Business and Mobile Business 22.02.2023 Source: According to Wölfle/Quade 2013 E-Business 31 E-Business Terms B2C = Consumer not customer (Business is also customer) B2B = Business / Reseller B2B2C = via Reseller to Consumer G2G Government G2B G2C B2B C2C Organisation B2C Institute for Information Systems – MSc BIS EMB – Fundamentals of E-Business and Mobile Business Consumer 22.02.2023 32 Business-to-Consumer (B2C) E-Commerce Business-to-consumer (B2C) e-commerce: E-commerce relations where the customer is a consumer (private end user). In a manufacturer business model, the consumers deal directly with the organisation, avoiding intermediaries. Elimination of intermediaries: – Squeezes costs and inefficiencies out of the supply chain – Can lead to higher profits for companies and lower prices for consumers Definition of B2C sales: E-commerce sales which are – invoiced to private end users (consumers) and – generated by a sell-side application (online shop) of the supplier/vendor. Institute for Information Systems – MSc BIS EMB – Fundamentals of E-Business and Mobile Business 22.02.2023 33 Business-to-Business (B2B) E-Commerce Business-to-business (B2B) e-commerce: E-commerce relations where all the participants are organisations. Buyers can be resellers as well as business end users. – Considerably larger and growing more rapidly than the business-to-consumer market Definition of B2B sales: E-commerce sales which are – invoiced to resellers or to business end users or – invoiced to private end users (customers) but generated by the IT systems of an intermediary. Institute for Information Systems – MSc BIS EMB – Fundamentals of E-Business and Mobile Business 22.02.2023 34 Consumer-to-Consumer (C2C) E-Commerce • Consumer-to-consumer (C2C) e-commerce: participants are individuals, with one serving as the buyer and the other as the seller Consumer Consumer Consumer Consumer Marketplace Consumer Consumer Consumer Consumer Institute for Information Systems – MSc BIS EMB – Fundamentals of E-Business and Mobile Business 22.02.2023 Buyers Sellers • Examples: eBay, Ricardo, Scout24, Anibis, Tutti 35 E-Government E-Government: use of information and communications technology to simplify the sharing of information, speed up formerly paper-based processes, and improve the relationship between citizen and government Forms of e-government – Government-to-consumer (G2C) – Government-to-business (G2B) – Government-to-government (G2G) Institute for Information Systems – MSc BIS EMB – Fundamentals of E-Business and Mobile Business 22.02.2023 36 e.g. transports (flights, railway, bus), rental cars, hotel chains in foreign countries Global Distribution Systems (GDS), Travel agencies Online travel agencies e.g. Amadeus, Sabre, Galileo, WorldSpan OTA partly offline online phone offline online online e.g. ebookers, e-trips Integration platforms (brokers) online z.B. Expedia, Opodo, Travelocity Institute for Information Systems – MSc BIS EMB – Fundamentals of E-Business and Mobile Business 22.02.2023 **) OTAs which act as tour operators and assume liability Provider of services, international Agents, local, *) OTA = Online Travel Agency e.g. hotels, rental cars, adventure trips Tour operators e.g. Kuoni, Hotelplan, TUI Suisse Own Own travel brands agencies Direct travelling E-Commerce products Call Center Consumers Industry Structure: Travel Provider of services, local 37 Dell, Apple, HP Central warehouse Distributors inland *) E-Com. Callcenter B2B2C Third party deals Central warehouse Brick-and-mortar stores Central warehouse Bricks-and-clicks stores Sales agencies inland Central warehouse Click-only General importers **) Central warehouse Institute for Information Systems – MSc BIS EMB – Fundamentals of E-Business and Mobile Business stores ***) Classical mail-order business, e.g. ARP 22.02.2023 **) John Lay Wholesalers abroad Stores *) Also, TechData, Ingram Traders (singleor multibrand) Headquarter Consumers Only if a central warehouse exists ***) PCP, Architronic Commercial Enterprises with subs. e.g. Mediamarkt, Interdiscount, Fust Manufacturers of own brands Manufacturers of trademarks at home and abroad, also Apple Industry Structure: IT & Consumer Electronics D2C = direct2consumers 38 Questions Regarding the Industry Structures • Where are B2B and B2C relations? • Which changes can be observed over time? What are the reasons for these changes? more online channels, Traditional business models are transformed into online businesses, new players or platforms, specialized B2B providers & platforms, more direct sales channels, virtual assortment. Disintermediation • Do the changes result in opportunities or threats? For which companies?  Compare producers, wholesalers and the different retailers! • What kind of B2C sales channels can be seen in the figure? • Which criteria can influence the retailers when selecting an appropriate sales channel? • How does the structure of the industry of your business model look like? Institute for Information Systems – MSc BIS EMB – Fundamentals of E-Business and Mobile Business 22.02.2023 39 Developments in Recent Years: Structural Changes in the Value Chain Disintermediation: Intermediaries lose parts of their original function partly or completely and will be D2C evaded. Disintermediation = more direct sales channels Supplier Manufacturer Service provider 1 Whole saler Service provider 2 Retailer Third party deals Consumer Service provider 3 Re-intermediation: Value adding services will be outsourced to specialised service providers (warehousing, logistics, operation of a web shop, supplier search, product assessments, etc.). Institute for Information Systems – MSc BIS EMB – Fundamentals of E-Business and Mobile Business 22.02.2023 40 Digitalisation and Digital Transformation Discussion • Digitalisation is an often used catchword. • What do you personally associate with that term? Institute for Information Systems – MSc BIS EMB – Fundamentals of E-Business and Mobile Business 22.02.2023 42 Strategic Alignment and Transformation 30 Years ago Source: Henderson, John; Venkatraman, N. (1990): Strategic Alignment: A Model for Organizational Transformation via Information Technology. Center of Information systems Research Working Paper No. 2017, Massachusetts Institute of Technology, Cambridge (MA), p. 24. Institute for Information Systems – MSc BIS EMB – Fundamentals of E-Business and Mobile Business 22.02.2023 43 Since the 60th, Information Systems Evolved in Several Phases Until approximately 1993 – Applications limited to a single specialist field – Internal stand-alone applications – Focus: to increase efficiency or quality Starting approximately in 1993 (www browser) – Explosive spread of the Internet because of open standards and the usability of the WWW, rise of the “new economy” – Focus: to create new business models: e-business Starting approximately in 2007 (with the iPhone) – Breakthrough of mobile computing – Improvements in data management and data analytics – New paradigms: cloud computing, blockchain – Information technology becomes part of almost everything: smart devices, Internet of Things (IoT) – Networked IT, partly in combination with AI, becomes part of other fields of innovation: robotics, smart home, 3Dprinting, self-driving car, etc. Institute for Information Systems – MSc BIS EMB – Fundamentals of E-Business and Mobile Business 22.02.2023 44 Digitalisation Source: Wolfle (2016), own translation In 2010 and beyond, digitalisation is a popular collective term for the application of technologies and concepts, which can be seen as decisive for the economic and social development. The information systems are omnipresent because they are based on mobile and cloud technologies and because people, organisations and things are represented digitally. Some of the systems can act independently. Digitalisation increases opportunities in different ways, e.g. – in the personal interaction (social media), – in the design of business models (e-business), – in the understanding of property (sharing economy), – in the creation of digital trust (blockchain) and – in the further development of other areas like robotics or biotechnology. Institute for Information Systems – MSc BIS EMB – Fundamentals of E-Business and Mobile Business 22.02.2023 45 Digital Transformation Digital Transformation denotes the change of different areas of life through the increasing digitalisation, sometimes in combination with other technologies. The speed and parallelism of various developments create a dynamism and complexity that make forecasts and planning more difficult. Related to an individual organisation, it means the change of the own business model. Institute for Information Systems – MSc BIS EMB – Fundamentals of E-Business and Mobile Business 22.02.2023 Source: Wolfle (2016), own translation Related to the economy as a whole, this means the change of economic structures. 46 Digitization – Digitalization – Digital Transformation Digital Transformation Digitisation Digitalisation “Digital transformation is the cultural, organizational and operational change of an organization, industry or ecosystem through a smart integration of digital technologies, processes and competencies across all levels and functions in a staged way. Digital transformation … leverages technologies to create value for various stakeholders … , innovate and adapt to changing circumstances.” i-Scope (n.d.): Digital transformation: online guide to digital business transformation. https://www.i-scoop.eu/digital-transformation, accessed 19.02.2020 Institute for Information Systems – MSc BIS EMB – Fundamentals of E-Business and Mobile Business 22.02.2023 47 Artificial Intelligence (AI) • Renaissance of Artificial Intelligence (AI) • Methods and principles – partly known for more than 50 years – are now better understood. • Today, using them is possible due to constantly increasing computing power. • New forms of interaction with computers, more than just screen, keyboard and mouse: voice, image, video ... • Practical applications: Chat robots (e.g., Siri, Alexa, Cortana), image content recognition, autonomous cars, product recommendations, etc. • AI Highlights: Watson, Alpha-Go, Google Duplex ... https://www.youtube.com/watch?v=D5VN56jQMWM Hair cut: Restaurant: Institute for Information Systems – MSc BIS EMB – Fundamentals of E-Business and Mobile Business 22.02.2023 48 Robotics • Maturity of robots increases tremendously • Improvement of hardware components, regulation and control technology • Robotics as an interdisciplinary scientific discipline • From stationary production robots to dynamic service robots • Human-Robot Interaction and Collaboration • Human-like robots Institute for Information Systems – MSc BIS EMB – Fundamentals of E-Business and Mobile Business 22.02.2023 49 Augmented and Virtual Reality Augmented reality (AR) is enhancing our visual perception of the world by projecting digital things in our field of vision. Virtual reality (VR) allows us to completely immerse ourselves into a virtual world. AR/VR in Business: – Product development (Collaborative Design Review) – Manufacturing (Assembly Work Instructions) – Logistics (Heads-up Display) – Marketing (Virtual Product Companions) – Human Resources (Safety & Security Training) Institute for Information Systems – MSc BIS EMB – Fundamentals of E-Business and Mobile Business 22.02.2023 50 E-Business Effect Patterns Impact Patterns in E-Business Brokerage effect Information effect Integration effect E-Business Delegation effect Institute for Information Systems – MSc BIS EMB – Fundamentals of E-Business and Mobile Business 22.02.2023 52 Information Effect Institute for Information Systems – MSc BIS EMB – Fundamentals of E-Business and Mobile Business 22.02.2023 53 Information Effect: Worldwide Database for Music Supplies • Worldwide reference database for music supplies with 430‘000 titles (1/4 of the globally available supply) • Experts in the branches maintain the database and consult competently. • The database in four languages enabled the start of export trade via e-commerce. • Customers look for new titles and can order them immediately. • From the search behaviour, trends can be derived. Source: shop.musikhug.ch, accessed 15.09.2010, search term: “Basler Fasnacht” Institute for Information Systems – MSc BIS EMB – Fundamentals of E-Business and Mobile Business 22.02.2023 54 Sources: https://www.youtube.com/watch?v=UudV1VdFtuQ https://www.youtube.com/watch?v=FIlbTuK3RnY accessed 01.03.2019 Augmented Reality Applications can Provide a Strong Information Effect Institute for Information Systems – MSc BIS EMB – Fundamentals of E-Business and Mobile Business 22.02.2023 55 Information Effect Exploitation of information as a resource. * Information creates the capability to decide and act: everywhere and always (24/7). Shift of a paradigm: – „On demand“  The trigger to look for information turns to the customer or – more general – to the information requester (from push to pull mechanisms). – Interaction instead of “Messages” or “Missions” – People like to decide by themselves which channel they use to cover their information need. Institute for Information Systems – MSc BIS EMB – Fundamentals of E-Business and Mobile Business 22.02.2023 56 Brokerage Effect Institute for Information Systems – MSc BIS EMB – Fundamentals of E-Business and Mobile Business 22.02.2023 57 Brokerage Effect: Oelpooler „Buy fuel oil jointly at lower prices“ • Virtual community for buying fuel oil (households and companies) • Weekly pooling of orders per region  lower prices and transport costs • Price alert • The platform itself becomes contractor • Oelpooler charges the supplier a commission/brokerage fee • Winner of „Best of Swiss Web“ 2001 in the category „business model“ www.oelpooler.ch, accessed 02.10.2015 Institute for Information Systems – MSc BIS EMB – Fundamentals of E-Business and Mobile Business 22.02.2023 58 www.airbnb.com, accessed 25.02.2022 Brokerage Effect: Airbnb Finds you Accommodation Institute for Information Systems – MSc BIS EMB – Fundamentals of E-Business and Mobile Business 22.02.2023 59 www.airbnb.com, accessed 25.02.2022 Brokerage Effect at Airbnb: Selection Based on Various Criteria and Map Service Institute for Information Systems – MSc BIS EMB – Fundamentals of E-Business and Mobile Business 22.02.2023 60 Source: www.supermarktblog.com/2017/07/11/empirestate-of-retail-so-macht-sich-amazon-in-new-york-citybreit, 11.7.2017, accessed 10.8.2017. Digital Assistants are Based on the Brokerage Effect Institute for Information Systems – MSc BIS EMB – Fundamentals of E-Business and Mobile Business 22.02.2023 61 Brokerage Effect Electronic media connect supply and demand, allow manual or automated selection and decision making – for information as well as – for products and services. Dialog processing and communication enable, e.g. the interactive configuration of products. Electronic exchanges and auctions automate negotiations. Digital assistants like Amazon Echo are often based on the brokerage effect. Institute for Information Systems – MSc BIS EMB – Fundamentals of E-Business and Mobile Business 22.02.2023 62 b2b Integration Effect Institute for Information Systems – MSc BIS EMB – Fundamentals of E-Business and Mobile Business 22.02.2023 63 Integration Effect: Many Suppliers – One Web Site https://www.letmeship.ch, accessed: 30.11.2017 • Multi-Carrier System • Online comparison of prices and services from multiple carriers in four countries • About 20 carriers connected, in Switzerland DHL, TNT, UPS • Detailed price calculation, online booking, tracking & tracing • Customers have only one customer number, central invoicing • The various integrated systems of the carriers appear as a single system! Institute for Information Systems – MSc BIS EMB – Fundamentals of E-Business and Mobile Business 22.02.2023 64 www.sbb.ch/fahrplan/bahnverkehrsinformation/zusatzzuege/expomilano-2015/tessin.html, accessed 18.08.2015 Integration Effect: Combined Travel Offerings The price includes:  Return ticket to Lugano  Two nights in the hotel  Return ticket to Expo  Expo fee Milano 2015 Institute for Information Systems – MSc BIS EMB – Fundamentals of E-Business and Mobile Business 22.02.2023 65 Integration Effect Companies overcome their system boundaries (on the levels of the business model, processes and information systems). A central system has automatic access to independent other systems and uses their functions and data (indirect system use). Flexible value creation communities or virtual companies emerge. Supply chain management requires the integration of the participating companies. Institute for Information Systems – MSc BIS EMB – Fundamentals of E-Business and Mobile Business 22.02.2023 66 Delegation Effect Institute for Information Systems – MSc BIS EMB – Fundamentals of E-Business and Mobile Business 22.02.2023 67 Robot Recruiters: IT Supports Key Processes in Human Resource Management www.economist.com https://www.companymatch.me/news/english/robotrecruiting-are-robots-the-recruiter-of-tomorrow/ Institute for Information Systems – MSc BIS EMB – Fundamentals of E-Business and Mobile Business 22.02.2023 68 Example for the Delegation Effect: The Internet of Things (IoT) Video 2 Information systems can be part of things: Smart Devices, Internet of Things. Some systems can "learn" by expanding their data and rules independently: "artificial intelligence". Institute for Information Systems – MSc BIS EMB – Fundamentals of E-Business and Mobile Business 22.02.2023 Source: European Commission, Digital Single Market Website. https://www.youtube.com/watch?v=kq8wcjQYW90&list=PLD4 B1B7AB8011CFB7&index=2, accessed 13.9.2016 https://www.youtube.com/watch?v=qfhcPvwzJF0&list=PLD4B 1B7AB8011CFB7&index=5, accessed 13.9.2016 Video 1 70 Delegation Effect Information systems are no longer just tools for our personal tasks (e.g., office tools, business software) or invisibly supporting systems (embedded systems, e.g., in a washing machine). Computers are increasingly making active and independent decisions, without any individual being involved. – The activity is triggered by events received via sensors or other types of signals, e.g., user behavior in the IT network. – The activity can be based on complex sets of rules that determine the actions in detail. – The activity can be based on data that is available somewhere in the network and on ad hoc analyses of large databases. – The activity can trigger actions that were previously reserved for humans. Delegation to the system Institute for Information Systems – MSc BIS EMB – Fundamentals of E-Business and Mobile Business 22.02.2023 71 Instruments of E-Business Management: Business Models Using E-Business Questions & Steps Business concepts using e-business • How to develop an e-business project? • How to describe an e-business project? • How to describe business processes? • How to describe application systems? • How to describe the technical realization? Institute for Information Systems – MSc BIS EMB – Fundamentals of E-Business and Mobile Business 22.02.2023 75 Four Views for the Description of E-Business Projects – Very Similar to the B.O.A.T. Approach 2 3 4 Involved business partners and their roles, business concept, contracts, strategic and operative targets Process View Detailed business processes, process links among the involved parties, assessment of process quality Source: Schubert/Wölfle (2007a) 1 Business View Application View Overview of business information systems, distribution of functions, place of data storage, integration layers Technical View Involved system components, networks, data transfer Institute for Information Systems – MSc BIS EMB – Fundamentals of E-Business and Mobile Business 22.02.2023 78 Case Study Hero Institute for Information Systems – MSc BIS EMB – Fundamentals of E-Business and Mobile Business 22.02.2023 79 Business Scenario: Fruit2Day Production and Marketing Processes Fruit2Day Production Hero Marketing Organisation Regional Hero Companies data product structure data coordination and release of sales plan webconference compare sales plan with sales data inventories production, warehousing and delivery plan production Data information about product standards sales plan: basic turnover and promotions sales control management of the distribution channels delivery order inventories inventories Distribution Partners goods in transit flow of goods purchase agreements distribution center Institute for Information Systems – MSc BIS EMB – Fundamentals of E-Business and Mobile Business Retailer (sales channels) marketing orders flow of goods branches 22.02.2023 80 Process View: Fruit2Day Institute for Information Systems – MSc BIS EMB – Fundamentals of E-Business and Mobile Business 22.02.2023 81 Logical System Model and Symbols User Interface Client Business Logic Application Data Institute for Information Systems – MSc BIS EMB – Fundamentals of E-Business and Mobile Business Data 22.02.2023 83 Forms of Integration System 1 Client Application Data System 2 Client access (e.g. browser) Functional integration (also EDI) Data replication Institute for Information Systems – MSc BIS EMB – Fundamentals of E-Business and Mobile Business Client Application Data 22.02.2023 84 Application View: Fruit2Day Institute for Information Systems – MSc BIS EMB – Fundamentals of E-Business and Mobile Business 22.02.2023 85 Technical View: Fruit2Day Institute for Information Systems – MSc BIS EMB – Fundamentals of E-Business and Mobile Business 22.02.2023 86 Literature Literature Earl, Michael J. (1996a): Integrating IS and the organization: a framework of organizational fit. In: Earl, Michael J. (ed.) (1996): Information management: the organizational dimension. Oxford: Oxford University Press, 1996, 485-502. Henderson, John C.; Venkatraman, N. (1994): Strategic alignment: a model for organizational transformation via information technology. In: Allen, Thomas J.; Scott Morton, Michael S. (eds.) (1994): Information technology and the corporation of the 1990s: research studies. New York: Oxford University Press, 1994, 202-220. Hungenberg, H. (2006): Strategisches Management in Unternehmen. Wiesbaden: Gabler, 2006. Jelassi, Tawfik; Enders, Albrecht; Martínez-López, Francisco J.: Strategies for E-Business: Creating Value Through Electronic and Mobile Commerce – Concepts and Cases. 3rd edition, Harlow (England) et al.: Pearson Education, 2014. Leimstoll, Uwe (2001): Informationsmanagement in mittelständischen Unternehmen: Eine mikroökonomische und empirische Untersuchung. Frankfurt am Main et al.: Peter Lang Verlag, 2001. Schubert, Petra; Wölfle, Ralf (2007): eXperience-Methodik zur Dokumentation von Fallstudien. In: Wölfle, Ralf; Schubert, Petra (Hrsg.): Business Collaboration – Standortübergreifende Prozesse mit Business Software, München: Hanser Verlag, 2007. Schubert, Petra; Wölfle, Ralf (2007a): The experience methodology for writing IS case studies. In: Proceedings of the 13th Americas Conference on Information Systems, August 9-12, 2007, Keystone, Colorado. Stair, Ralph; Reynolds, George: Fundamentals of Information Systems: A Managerial Approach. Fourth ed., Boston (MA): Thomson, 2008. Wölfle, Ralf (2000a): E-Business erfolgreich planen und realisieren. In: Schubert, Petra; Wölfle, Ralf (Hrsg.): E-Business erfolgreich planen und realisieren. München, Wien: Hanser Verlag, 2000, 13-26. Wölfle, Ralf (2000b): Entwicklung eines E-Business-Geschäftsmodells. In: io management, Nr. 9, 2000, S. 62-65. Wölfle, Ralf (2006): Prozessexzellenz mit Business Software. In: Wölfle, Ralf; Schubert, Petra (Hrsg.): Prozessexzellenz mit Business Software – Praxislösungen im Detail. München, Wien: Hanser Verlag, 2006, 5-18. Wölfle, Ralf (2016): Digitale Transformation – Eine begriffliche Standortbestimmung im Jahr 2016. Arbeitsberichte der Hochschule für Wirtschaft FHNW Nr. 100, Basel: Hochschule für Wirtschaft, Fachhochschule Nordwestschweiz, 2016. Wölfle, Ralf; Quade, Michael (2013): Wirtschaftsinformatik 3: M-Business. Vorlesungsunterlagen des Competence Center E-Business. Basel: Institut für Wirtschaftsinformatik, Hochschule für Wirtschaft, Fachhochschule Nordwestschweiz, 2013. Institute for Information Systems – MSc BIS EMB – Fundamentals of E-Business and Mobile Business 22.02.2023 88