[Music] hi everybody this is the first lecture on ebusiness and I am Mumtaj anomaly and for next for 30 hours classes I will be covering this course to start with can you imagine interacting with any company without looking at its website no the answer is no whenever we search for any product any service and we would like to even contact any person in a company the first task we do we visit their website however users to imagine what was the situation let us say some twenty years back this was not the case do you think that their business was not running business was running very much and business was also making profit then what is this what is this ICT intervention and why it was required to - as a primary strategy for every business if you look at the what dr. Andy Grove Intel chairman then said in our lost in a conference in Los Angeles he says first of all let me start with a statement that much as we talk about internet companies today in five years time there won't be any internet companies or all the companies will be Internet companies or they will cease to be dead what does it mean so then you predicted way back in 1999 he predicted that in five years time all the companies are going to have their own interface on internet so this web based companies are now everywhere to start with if we try to understand the word ebusiness we start defining what is business now what is business if we look at the dictionary meaning of business a business is a personal person's regular occupation or trade it'd work to be done or matter to be attended to a person's concern commercial activity a commercial organization a difficult problem a difficult or problematic matter and again we can also say it is an excellent person or thing then actions other than dialogues in a play however when we talk about the business in the context of commercial activities there are various definitions to start with business can be called as a social science of managing people to organize and maintain collective productivity towards accomplishing particular creative and productive goal usually to generate revenue so what is important here to mark is besides doing the activities in an organization the goal is to generate revenue another definition again from internet from business dictionary here a business is also called and/or it is an organizational entity involved in provision of goods and services to the company consumers every business requires some form of investment and enough customers to whom the output can be sold on a consistent basis in order to make a profit now this business can be privately owned it can be nonprofit or it can be state-owned now coming to the examples of privately owned businesses either it can be a very large business which is can be a corporate house like that of data center it can be very small business let's say a cat ring service it can be a business can be nonprofit when we say a business can be nonprofit that does not mean that the the without the money the companies are stills they generate they have their own generate process of generating the money maybe through subsidy but they do exist and they or for certain activities to achieve a common goal then it can be don't example let us say Coal India : a is a public sector company and it is a state-owned company so businesses can be privately owned it can be not-for-profit or it can be state under again come to another formal definition of business a business is generally an organizational unit that has or that should have a defined strategy and a manager with sales and profit responsibility this definition is bi occur and mclogan from strategic market market management a global perspective book now if we go by this definition the word that is very catchy here is the strategy for making sales and profit you can say in a business the ICT is used as a strategy to increase the sells and generate better profit or in other words to manage the business well now the question is what is the purpose of business from all these three definitions it is clear that the businesses are about making profits okay so they do exist to generate revenue but they cannot generate generate revenue or they cannot make profit by doing doing some random activity they have to deliver value to the customer and not only they deliver the value to the customer they have to satisfy them now here again we on let us try to understand what is the meaning of customer delivered value we go by the definition given in the marketing management book by Cutler where he says the customer delivered value is the difference between the total customer value and the total customer cost for example think of you're buying a washing machine when you are buying the washing machine you are paying some money money is going from your pocket right your balance is getting reduced still you are buying a washing machine why do you buy the washing machine because you are going to get certain benefit what is that benefit and how much is the benefit that benefit is your I mean what is the value here the value is the benefit that you are going to get out of it - the cost that you are paid so the utility that you are getting out of this washing machine is actually the value delivered to you now this total customer value is a bundle of benefits the customer expects from a given product or a service so when we talk about the bundle of benefits it is not only the product itself it is the product as well as the service associated with the product okay now the total customer cost is the bundle of cost the customer expects to incur in evaluating obtaining using and disposing the products and service right so every business do exist to give value to the customer and in the process to make profit now simply if you provide value to the customer that doesn't mean the customer will be satisfied now what is customer satisfaction there the satisfaction is a person's feeling of pleasure or disappointment resulting from comparing your products perceived performance or outcome in the relation to his or her expectations now again come back to the example of the washing machine you expected the washing machines to perform in certain way but you did not so even if you are getting some benefit out of the washing machine let's say you expected that your clothes will be some 90 percent dry but it did not happen so you did not get the full satisfaction you bought that washing machine from let's say from some company a and you are not very happy with the company that company because the your expect us are not met do you think that next time let us say suppose you buy some other home appliances appliances let's say let's say let's say some oven are you going to go back to that particular company no but if you are happy with the performance of the washing machine the other consumer products that company produces definitely you are going to buy it ok so the key to generating high customer loyalty is to deliver high customer value and to make him satisfied so therefore a company has to develop a competitively superior value proposition and a superior value delivery system now because we have talked so much about the value let us just try to understand how exactly this value gets delivered to the end customer to see this we have to look at the value chain of a company what exactly is the value chain and as a management students many of many of you will be knowing what exactly is a value chain this is Porter's value chain and here you have five prime primary business processes inbound logistics operations outbound logistics marketing and sells then services every company whether it is a manufacturing company which manufactures product whether it is a service company everybody needs this five primary business processes now in this type in if you look at these primary business processes through inbound logistics you get Rama rated raw material for making certain production through operations you actually produce stops then through outbound roar logistics you try to give it to your try to make these products reach your end customer and through marketing and sales strategies you promote promote your product or service and finally at the end you provide after cell services we search this pipehype active primary activities we also have some supporting activities there the supporting as activities are broadly of four types procurement so you might be thinking now because we have inbound logistics where we are buying raw material procurement did not be some activity which spans over all these type activities no it is not like that prime prime procurement is an activity which spans over everything don't you think while carrying out your providing your after cell service you need and don't do in procurement you do even by some some stationery see also procurement so procurement it meant is some activity which spans across all the five primary business activities then you have technology development then you have human resource development and finally you have to have the firm's infrastructure are developed over the time now the question is if this is the value chain of a company can the value chain is sufficient to deliver the value to the end customer the answer is again no look at this diagram here we have this is the farm and we have the firm actually cannot exist on its own it for its raw material or inputs to the firm it depends on its supplier now again supplier also cannot exist on its own he again has to depend on his supplier similarly after the firm makes its products it depends on this distributor to distribute it to its end customers and end end customers are the final entity which the firm is targeting to to make to provide the value in turn satisfy them and make profit now come to some example let us say Levi's jeans company this example is again from Cutler devices the jeans company all of us know and we are from do we get it genes from some retail shop as customers we get the genes from the retail shop and how this Levi's production products the products are made it is uses some fabrics made by some other some other company and that some other company again for making the fabrics it requires fibers which compel comes from another company so if you look at this here when you deliver the value or deliver the product in this case to the customer the customers order again flow okay the customers the customers ordered the retailer retailer orders the manufacturer manufacturer to its supplier and so on and when we talk about the order is flowing our the product delivery is happening both are flows but the nature of the flow is actually different how the order is basically the flow of information whereas the delivery is the flow of the product okay and during this delivery besides flow of the products many documents also flow that is again another flow of information in fact as you must you you can recollect that in the three things flow in every business transaction information material and money three things flow now here because of this ordering process and delivery process many cycles happen and that introduces the delay in the process when the customer orders the retailer customer order cycle happens because the order will be placed then the material will be made and it will be supplied then there is leap linesman cycle there is manufacturing cycle on there is procurement cycle basically ICT is the strategy to reduce the delay in all these cycles now if we want our business to be of high performance what should be our goal we have to have a set of strategies to satisfy the key stakeholders by improving the critical business processes and aligning the resources and organizations towards inter now when it comes to resources what are various resources of the organization resources are labor materials and machines information and energy and the organization its structure it has policies and it has some corporate culture and water processes processes are the work flows does links the interdependent activities to carry out certain to carry out certain business activity and there are many stakeholders of the company who are the stakeholders customers employees suppliers distributors stakeholders financial institutions and government now all these stakeholders are connected to the company and they and they also participate in this value delivery and all of them are connected to the tenant to the company through some information system and this information system in today's world when it is internet enabled along with many newer ICT strategies they contribute to improving the business processes and that is how the e-business comes into picture now let us again one aligned term with business is commerce what exactly is commerce let us go by the dictionary on the definition from oxford english dictionary again it is the activity of buying and selling especially on a large scale so therefore almost all businesses involve some commercial activity however only the commercial activities do not make the business for example consider in your company you have many employees and you would like to and every month you pay them salary do you think in the commercial activity takes place then no but you have business process so besides commercial activities there are other businesses processes as well so therefore we can say Commerce is a subset of business now we are talking about a business and so far we have been talking about the business and commerce and what we have understood so far we have understood that businesses do exist to make profit but they cannot make profit just like that they have to deliver value to the customer and today not only to deliver value to the customers they have to make the customers happy they have to make the customers satisfied and for this process they need the help of many stakeholders they have to have their business processes work in a efficient manner they must be utilizing many resources to make the business make make their business profitable and grow and so far we have simply talked about that ICT is the strategy when it is adopted adopted properly in the organization this can actually change the way the organization's work now when we talk about a business this is again the term he comes in so far we have talked about business and commerce now again that term he comes in now what is this II he all of us know that he stands for [Music] electronic transactions it is all about ICT technologies now let us just try to understand how this ICT technologies have has actually helped the businesses over the years Internet is a very recent phenomena in fact actually in AI from 1990 only internet become commercialized and these ebusiness ecommerce those things have come up but prior to that information technology has actually changed the way the businesses work let us start from 1950 to 60 in this area era basically the the part of the business that got automated was the transactions the the transactions where there is no decision support it is the everyday transactions and record-keeping it was got automated and to start with the very first thing that very fast sub system that got automated in any organization is actually the payroll system and if you look at a payroll system what is a payroll system payroll system is basically a set of very mundane transactions with definite rules you do not have any kind of decision-making involved over there so such situations such kind of processing are actually transaction processing will we are going to learn more about various types of various types of information systems when we are going to learn about we will be talking about transaction processing and other other stops then in the next 10 years saw the change in form of not only automating the transactions but the data that is getting generated out of the transactions summarizing it and providing providing it in a more comprehensive manner to the managers for decision making so those systems are called management information systems and next era was bit more advanced where not only the very mundane tasks the tasks of summarization etcetera happened but they are again what happened people try to automate the decision-making process now when we say automating the decision-making process what exactly it is every day we take decisions but by automating the decision-making process we mean we have to have a model of the decision and if the decision has to be repeatedly executed that model has to be executed repeatedly okay so here we said such kind of systems to be decision support systems then next was the era where people started looking beyond decision support they tried think talking about the expert systems we are not only your mathematical models or data analytics models were implemented to provide decisions they were also looking for they were also looking for artificial intelligence methods through applied and to make many kind of strategic information systems which gave them many competitive advantages and as I told you from 1990 onwards the internet got commercialized and because of this commercialization not only we have one integrated integrated information systems which combines all the subsystems of the business we also wanted to collect the information system of many businesses so we have to have now technologies which makes the information systems inter operable by interoperability we mean the information systems which of various organisms which have different kinds of kinds of technologies now they need to be integrated besides that we also and in the process we had this web-based systems web services and cloud computing which is a more recent phenomena mobile computing use of RFID and GPS for tracking the products across the supply chain and more recently Internet of Things and sensors weeks which can actually generate the informations online and provide decision support this is all support for the businesses now to sum it up in from this historic perspective from 1950 to 1990 the efforts were actually for automating intra-organizational business processes and a centralized information system was developed for that and that was called enterprise resource planning systems this ERP systems but however from 1990 onwards with internet becoming commercialized we not only had a RP we not only had a RP but we had many other enabling technologies for automating the complete value delivery network that is your supply chain so this saw the technologies in this new era are not only the ERP but also the technologies which integrate the entire supply chain now coming to the different definition of specific definition so far we have defined the term commerce and business but we have not defined what is ecommerce and what is a business now what is ecommerce ecommerce is about buying and selling of goods and services through digital communication network which uses the Internet technology and web in particular now it may include electronic payment system and what is your business as we know that business ecommerce is actually a subset of business so in a business it which is a superset of e-commerce activities it is not limited to buying and selling it includes other business activities such as serving the customer collaborating with the business partners or others holder's supporting internal transactions and so on or it is in general conducting all the business activities online and to even to tell you a little bit more this particular term ebusiness was actually coined by law gasner CEO of IBM and this is a more recent term than that of e-commerce now it is a more formal definition of e-business e-commerce electronic commerce are you ecommerce consists of buying selling marketing and services servicing of products and services over the computer network it is the use of information technologies and that actually made this electronic transactions over the internet possible now coming to ebusiness electronic business re business it may be defined broadly as any business process that relies on automated information systems today it is mostly done with web-based technologies and to summarize it further ebusiness is not is a business is more than just e-commerce it involves business processes spanning the entire value chain which includes purchasing supply chain management and so on now in this course these are the books which will be will be using as you know this ebusiness is actually an offshoot of information systems so we'll be using mostly the information systems books the first book that we would like to refer is the management information system managing the digital farm by laden and laden then scanning for e-business which basically talks about the technologies and various models and all that is by mineski and Almeida then we'll be taking and considering another bookie business and e-commerce and this is a book from this is a book by Mayer and stormer and from sprint this book is from stranger and besides this as you know will be going little beyond what is there in these information systems books will be going a little bit more depth into the technologies because without understanding of the technologies making cars decision support systems will not be possible so we'll be referring many reference books and Internet resources as well and a some research papers and whenever I dare for anything outside these three books I will just let you know thank you very much