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What is ecommerce and ebusiness

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Become a user-chooser-advisor and stay in business. IT. Response. Unit ... channel. Encrypt with. sender's private key. Digital signature. message M* Digital ... – PowerPoint PPT presentation

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Title: What is ecommerce and ebusiness


1
What is e-commerce and e-business?
  • Alan Jones
  • Director
  • IT Response Unit

2
Who are we?
  • University-based technology transfer for
  • e-business and
  • e-commerce
  • Funded by ERDF and GO-NE
  • Targetted to deliver substantial assistance
  • Targetted to produce business change
  • Tasked to raise 10K as evidence of effort

3
Retailing and business
  • E-business is so-called B2B
  • business to business
  • estimated 80 of e-trade by 2002
  • E-commerce is so-called B2C
  • business to consumer/customer
  • estimated 20 of e-trade by 2002
  • also called e-tailing (cf. Retailing)

4
e-business is..
  • a set of high-level concepts
  • a technology infrastructure
  • an implementation schedule
  • a people business
  • the Millennium opportunity

5
e-business concepts
  • Network
  • open, redundant, cheap
  • Growth of revenue
  • 5Bn UK, 45Bn Europe, 200Bn US by 2001
  • Business opportunities B2B 80, B2C 20
  • outsourcing, manufacturing, supply-chain
    stretching, NOT e-tailing (big boys only)
  • Death to agents
  • information traders must change or die

6
e-business network
  • Millions, redundantly connected
  • Geography is redefined
  • EDI is replaced/overtaken
  • Security is re-invented - firewall, intrusion
    detection systems

7
how many millions at what rate??
First Aid for e-Trade with teaching and learning
8
how many millions in UK??
  • Britain is expected by 2002 to become the first
    European country where half of all homes have a
    computer. Forrester Research
  • BT has announced new unmetered pricing structures
    for internet access, offering unlimited access
    for flat-rate fees
  • Libraries are poised for a new "golden age"
    thanks to widespread adoption of internet
    technology, according to the head of the British
    Library

9
Millions and billions
  • online commerce (Nov. 1998) online retail
    sales (Oct. 1999)

10
geography is redefined
  • Vox Pop says the Internet kills geography
  • but geography is not redundant
  • business opportunity assurance is
  • use the Internet for reaching up the supply chain
  • keep your business to physical assets to secure
    your customers from other e-traders

11
EDI is replaced/overtaken
First Aid for e-Trade with teaching and learning
  • e-commerce is not new
  • Electronic Document Interchange
  • rigidly formatted, paper-based protocol
  • Trust, integrity, authentication (of origin, of
    receipt)
  • Non-repudiation binds the contract
  • EDI will inter-operate with the Internet

12
Security is re-invented
First Aid for e-Trade with teaching and learning
  • servers are sold as lock-up-able boxes, but
  • viruses, hackers, bugs come in the night
  • firewall
  • intruder detection systems
  • for footprints read hits
  • need flexible capacity and bandwidth
  • for respect read transaction integrity, privacy
    and non-repudiation

13
Revenue growth for e-trade
  • Projection-1
  • 1998 32Bn 65 business 35 home
  • 2002 425Bn 78 business 22 home
  • Projection-2 for year 2001
  • Europe 64Bn e-revenue 0.9 GDP
  • US 206.8Bn e-revenue 2.7 GDP
  • FT 1999 Jan 13

First Aid for e-Trade with teaching and learning
14
Business opportunities
First Aid for e-Trade with teaching and learning
  • To move or not to move - up or down the supply
    chain?
  • Down means trashing your terms and conditions
  • Up means taking on some business of your supplier
  • Use the information supply chain but dont trade
    information

15
Death to agents
First Aid for e-Trade with teaching and learning
  • Agents retail information
  • travel, booking, ticket, betting, stock,
    catalogue, etc. - all pure information businesses
  • Information is cheaper on the net, open all
    hours, and theres more choice
  • Become a user-chooser-advisor and stay in business

16
e-business technology infrastructure
  • Intranets
  • Internet
  • Extranets
  • ERP Enterprise Resource Planning
  • SCM Supply Chain Management
  • CRM Customer Relationship Management

First Aid for e-Trade with teaching and learning
17
Intranets
First Aid for e-Trade with teaching and learning
  • Networks joining computers within a business
    zone/building/area
  • thin client is name for stripped-down PC that
    expects to spend its life on an intranet
  • server is name for a heavy-weight PC that acts
    as database and applications engine/repository
    for a network.

18
Internet
First Aid for e-Trade with teaching and learning
  • Explosive growth in redundant pathways joining
    computers
  • derived from work by US military during cold war
    to create a C3 system (command, control and
    communications) to survive a nuclear blast
  • rocketed to popular access by Mosaic, an early
    browser, and low cost/high content

19
Extranet
First Aid for e-Trade with teaching and learning
  • e-business enablers that permit access from one
    intranet (the customer) to another (the supplier)
    with security and safety via the open, unsafe and
    insecure Internet
  • infrastructure that new Digital Signatures, SSL
    (secure sockets layer) etc. make secure
  • infrastructure exploited by DCOM and CORBA
    architectures to promote distributed
    communication between computers

20
e-Business
S C M
E R P
C R M
21
Enterprise Resource Planning
  • Tools
  • Intranet of database(s)
  • electronic collaboration (Lotus Notes, MS
    Outlook)
  • Resources
  • business reorganised around Internet protocols
  • Effect
  • left hand talks to right hand
  • Impact
  • Browser can talk to left hand and right hand

22
Supply Chain Management
  • Tools
  • Internet and intelligent browser
  • Resources
  • wired, collaborative intranet for electronic
    sales-order processing, purchasing, invoicing
  • shopping basket deal with ISP and credit agent
  • Effect
  • creates extranets for you, suppliers and
    customers
  • Impact
  • liaison is tight, relations are responsive

23
Customer Relationship Management
  • Tools
  • Internet and intelligent browser
  • Resources
  • wired, collaborative intranet
  • electronic sales-order processing, purchasing,
    invoicing
  • Effect
  • accurate invoicing and delivery, anticipate
    demand, track periodic change
  • Impact
  • full analysis of customer behaviour

24
e-business implementation schedule
  • Gerstner of IBM calls dot.com companies fireflies
    before the storm
  • IBM is in strategic alliance with Dell to acquire
    Dells lean-inventory build-to-order
  • Ford and GM will move their entire purchasing
    supply-chains to the Internet by summer 2000
  • Tony Blair says embrace the Net…or die

First Aid for e-Trade with teaching and learning
25
Digital Signatures in e-commerce bill planned for
Royal Assent by Spring 2000
First Aid for e-Trade with teaching and learning
  • Authentication of the sender
  • Integrity of the message
  • Non-repudiation of the sender

26
PUBLIC KEY ENCRYPTION
Sender
Authentication of
Confidentiality to Receiver
27
DIGITAL SIGNATURE
Sender
Receiver
28
Digital Certificate
First Aid for e-Trade with teaching and learning
  • Binds the public key
  • of the person-company-device
  • to the corresponding identity
  • verified by the Certification Authority
  • this is the X.509 standard

29
Applications of Certificates
First Aid for e-Trade with teaching and learning
  • Secure E-mail - private messages
  • Secure Web-access - secure credit details and
    non-repudiation
  • Secure Extranet - strategic and confidential
    alliances
  • Secure workflow - assured instructions
  • Secure program download - applications to rent
    and just-for-now thin clients

30
The futures not what it used to be
  • Microprocessor market penetration will be far in
    excess of 150
  • Fridges, cars, telephones, smart-TVs, etc.
  • Manufacturing as bulk-for-low-costs will be
    replaced by customised-for-each-order without any
    loss of momentum or profit.
  • Internet-ready games and telephones - products -
    are NOW on sale

First Aid for e-Trade with teaching and learning
31
The factory of the future
  • Has only one man and one dog
  • the man is there to feed the dog
  • the dog is there to stop the man interfering with
    the machines.

First Aid for e-Trade with teaching and learning
32
The Information Age
  • Agrarian, can circle the earth in 3-5 yrs
  • Industrial, can do it in 0.3-0.5 months
  • Post-industrial, can do it in 0.03-0.05 days
  • Info, can do it in 0.003-0.005 hours

First Aid for e-Trade with teaching and learning
33
The weightless economy
  • US stock market valuation is ten-times inventory
    and asset (comparing 1900 with 1998) Alan
    Greenspan, Fed Res Board
  • UK stock market valuation is four-times inventory
    and asset The Economist
  • This is the price of the knowledge economy

First Aid for e-Trade with teaching and learning
34
The Cobblers Shop c. 1950
First Aid for e-Trade with teaching and learning
  • YOU CAN HAVE IT
  • FAST
  • RIGHT
  • CHEAP
  • PICK ANY TWO!

35
The Cobblers Shop in the Information Age
  • You will get
  • fast-right-AND-cheap
  • but its only be the first step of what you want

First Aid for e-Trade with teaching and learning
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