E-Business Lecture Notes

Introduction

• Lecture by Mumtaj Anomaly
• Duration: 30 hours
• Importance of websites for interaction with companies

Historical Context

• E-business evolution over the last 20 years
• Dr. Andy Grove's prediction (1999):
  • In 5 years, all companies will have an online presence or cease to exist

Understanding Business

• Definitions of Business:
  • Dictionary meaning: Regular occupation or trade; commercial organization
  • Social science of managing people for productivity and revenue generation
• Types of Businesses:
  • Privately owned, non-profit, state-owned
  • Examples: Corporate houses, small businesses, public sector companies (e.g., Coal India)
• Key takeaway: Businesses must deliver value and satisfy customers to generate profits.

Customer Delivered Value

• Definition by Cutler: Customer delivered value = Total customer value - Total customer cost
• Example: Buying a washing machine
  • Total Customer Value: Benefits expected from product/service
  • Total Customer Cost: Costs incurred in evaluating and using products/services
• Importance of customer satisfaction:
  • Satisfaction results from comparing perceived performance with expectations.

Value Delivery System

• Value Chain (Porter's Value Chain):
  • Primary processes: Inbound logistics, operations, outbound logistics, marketing & sales, services
  • Supporting activities: Procurement, technology development, human resources, firm infrastructure
• Example: Levi's jeans production supply chain
  • Flow of orders and products between customers, retailers, manufacturers, and suppliers
• ICT as a strategy to reduce delays in business cycles

Business Resources and Stakeholders

• Resources: Labor, materials, machines, information, energy
• Stakeholders: Customers, employees, suppliers, distributors, financial institutions, government
• Importance of effective information systems for value delivery

Commerce vs. Business

• Commerce: Activity of buying and selling, subset of business
• Businesses: More than just commercial activities; include various processes

Role of ICT in Business

• Historical overview of IT evolution (1950s-1990s):
  • Automation of transactions, decision support systems, expert systems
  • Emergence of ERP systems
• Recent developments (since 1990):
  • Internet commercialization, integrated information systems, web services, cloud computing, IoT

Definitions

• E-Commerce: Buying and selling goods/services through digital communication networks
• E-Business: Broader term; includes all business activities online beyond just buying and selling
  • Coined by Lou Gerstner (CEO of IBM)

Course Reference Materials

• Books:
  • "Management Information Systems: Managing the Digital Firm" by Laudon & Laudon
  • "Scanning for E-Business" by Miniski & Almeida
  • "E-Business and E-Commerce" by Mayer & Stormer
  • Additional reference books and research papers will be utilized throughout the course.

Conclusion

• E-business is crucial for modern businesses to thrive and requires understanding of technology and information systems.