Lawrence Green's presentation for the Knowledge Economy and Information Society course, on ecommerce and ebusiness

1. Knowledge Economy & Information Society (2007/8) Lecture 5 E-business, E-commerce & Business Communications Ian Miles & Lawrence Green [email_address] 25 th February 2008

6. E-business & e-activity in context - 3 Key ‘use domains’ of digital technologies (transaction, process & exchange relationships) E-Business E-Governance E-Citizenry E-Commerce

8. Dimensions of e-business: B2B e-commerce world revenues (US$Bn) (IDC and Gartner Forecasts from 2000)

9. Regional revenues (B2B e-commerce – On-line trade) Forrester Forecast (for 2004) 100 6,335 Total B2B 0.2 14 Eastern Europe 0.8 48 Africa – Middle East 1.2 76 Latin America 22 1,400 Western Europe 24 1,500 Asia Pacific 51 3,300 North America % Billion US$ On-line trade

11. E-Commerce in Western Europe (EITO 2003) Projections – 7-fold increase in volume of e-trading 63.8 100 2224 100 309 Total 63.7 87 1942 87.5 270 B2B 64.4 12.7 282 12.5 39 B2C (%) % bn (€) % bn (€) CAGR 2002-6 2006 2002

12. E-commerce in top 5 European Countries (EITO 2003) 60 324 49 B2B 53 53 10 B2C 59 377 59 Total e-commerce UK 72 108 12 B2B 68 15 2 B2C 72 123 14 Total e-commerce Spain 64 210 29 B2B 72 30 3 B2C 65 240 32 Total e-commerce Italy 67 604 78 B2B 66 72 10 B2C 67 676 89 Total e-commerce Germany 70 282 34 B2B 78 46 4.6 B2C 71 328 39 Total e-commerce France CAGR 2002-6 (%) 2006 €bn 2002 €bn

13. Unpacking e-business Consumer to Consumer (C2 C ) and Peer to Peer (P2P) 85% 15% Growing fast: ebay, Bit Torrent, Napster etc. Business to Consumer B2C (Internet, digital TV, games consoles & mobile phones) Business to Business B2B (EDI and web e-business)

19. History & Trajectory of Business Communications Technologies 1920s Telephone (telegraph?) - 1st electronic business tool? 1950s Telex (teleprinting & teletype) - 1st ‘non-voice’ electronic communications tools 1960s EDI 1970s FAX 1990s email 1990s Internet- or web-based e-business

22. Business Communications (3): The arrival of EDI and (Internet-based) B2B e-commerce EDI – the first really significant form of eB2B? Many definitions, but Electronic Data Interchange is generally defined as: “ the interfirm computer-to-computer communication of trade documents in a standard format that permits the automatic handling of transactions.” (Sokol, 1989; Kuhn Pedersen, 1995)

23. … In more detail - what is EDI? According to UK Department for Trade and Industry (DTI), EDI involves: “ Computer-to-computer exchange of structured data between two or more companies, sent in a form that allows automatic processing, with no manual intervention. It is relevant to any business that regularly exchanges information such as client or company records, but is especially relevant when they send and receive orders, invoices, statements and payments… … EDI remains the dominant term in the UK for electronic trading [but is being substituted increasingly with e-commerce and e-business]” Important development - introduces the notion of ‘AUTOMATION’ to business communications

27. Organisation of the e-B2B ‘value network’ Tangibles: Suppliers of Raw materials, Intermediate goods, infrastructure and networks Logistics & Retail Distribution Channels Producer of goods or Services Intangibles: Business services (Consultancy, Accountancy, Design services etc.) Regulatory Agencies (Government etc) Retail Customer

28. E-business in the value chain: process integration within and across the firm and its partners R&D collaborative & remote design - shared CAD Procurement enhanced product sourcing and price transparency - search via e-markets SCM Production JIT, inventory control & concurrent engineering - SCM & ERP systems Logistics Efficient warehousing, stock handling and delivery - ERP Sales Online selling via websites & e-markets or auctions – liaison with retailers Logistics Efficient warehousing, stock handling and delivery - ERP Customer Service Marketing, customer care, marketing & data capture - CRM Customer Service Marketing, customer care & data capture - CRM Suppliers, clients and partners