5-1 © 2006 Pearson Education Canada Inc.

Chapter 5Electronic Business,

Intranets, and Extranets

PowerPoint PresentationPowerPoint Presentation

Jack Van DeventerJack Van Deventer

Ward M. EagenWard M. Eagen

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Chapter 5 Objectives

E-Business/CommerceE-Business/Commerce Internet & Web CapabilitiesInternet & Web Capabilities Intranets & their ApplicationsIntranets & their Applications Extranets & their ApplicationsExtranets & their Applications Key e-commerce ApplicationsKey e-commerce Applications Enterprise PortalsEnterprise Portals Rules for Web Site SuccessRules for Web Site Success

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E-Business/Commerce

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Internet and World Wide Web Internet and World Wide Web CapabilitiesCapabilities CollaborationCollaboration Reduced transaction costsReduced transaction costs Enhanced operational efficiencyEnhanced operational efficiency Disintermediation Disintermediation

Cutting out the “middleman”Cutting out the “middleman”Reaching customers directlyReaching customers directly

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Operations Management: Mesotec E-business may be the only means of reaching E-business may be the only means of reaching

some customers, but that does not always require a some customers, but that does not always require a Web siteWeb site

Mesotec of Quebec implemented an Intranet Mesotec of Quebec implemented an Intranet solution to foster collaboration internally and to solution to foster collaboration internally and to link to customers’ extranet sites for orderslink to customers’ extranet sites for orders

Mesotec uses Web-based EDI and saw an increase Mesotec uses Web-based EDI and saw an increase in sales of 40% within two years of installation of in sales of 40% within two years of installation of electronic business toolselectronic business tools

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Intranet ApplicationsIntranet Applications TrainingTraining Application integrationApplication integration

Enterprise Resource Planning (ERP)Enterprise Resource Planning (ERP)Customer Relationship Management (CRM)Customer Relationship Management (CRM)Sales Force Automation (SFA)Sales Force Automation (SFA)

Online entry of informationOnline entry of information Real-time access to informationReal-time access to information CollaborationCollaboration

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Extranet ApplicationsExtranet Applications Supply Chain ManagementSupply Chain Management

Example: Dell ComputersExample: Dell Computers Real-Time Access to Information Real-Time Access to Information

Example: CSX railroadExample: CSX railroad CollaborationCollaboration

Example: CaterpillarExample: Caterpillar

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Enterprise PortalsEnterprise Portals Extranets for business partnersExtranets for business partners Access points (or front doors) by which a business Access points (or front doors) by which a business

partner accesses secured, proprietary information from partner accesses secured, proprietary information from an organizationan organization

Distribution PortalsDistribution Portals Automate the business processes in selling products Automate the business processes in selling products

to multiple buyersto multiple buyers Procurement PortalsProcurement Portals

Automate the business processes that occur before, Automate the business processes that occur before, during, and after sales have been transactedduring, and after sales have been transacted

Trading ExchangesTrading Exchanges Electronic marketplaces run by third-party vendorsElectronic marketplaces run by third-party vendors Revenues are from commissions on transactionsRevenues are from commissions on transactions

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Brief Case 1: Labatts

Labatts launched an enterprise portal called “The Labatts launched an enterprise portal called “The Pub” to improve communication between Pub” to improve communication between employees and eliminate information silosemployees and eliminate information silos

It was a challenge to convince 3800 employees It was a challenge to convince 3800 employees across the country that this was a better source of across the country that this was a better source of information than traditional meetingsinformation than traditional meetings

Kiosks were installed that ran the Intranet like a Kiosks were installed that ran the Intranet like a wire service, key to its early acceptancewire service, key to its early acceptance

Intranets are now used to improve workforce Intranets are now used to improve workforce performance and link it to business valueperformance and link it to business value

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Brief Case 3: Webview 360.com Webview 360.com is a Manitoba-based company Webview 360.com is a Manitoba-based company

that provides a tool to view homes, that provides a tool to view homes, condominiums, and commercial property through condominiums, and commercial property through the Webthe Web

Paul Schmitt, a real estate agent, found an ‘angel’ Paul Schmitt, a real estate agent, found an ‘angel’ investor who funded its startup, and the company investor who funded its startup, and the company now offers franchises across North Americanow offers franchises across North America

Lessons learned: Listen carefully, always use a Lessons learned: Listen carefully, always use a lawyer in contracts, and expect resistance to dot-lawyer in contracts, and expect resistance to dot-coms in startup funding and when offering servicecoms in startup funding and when offering service

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Final Case 1: BTO Auto

Built-to-Order (BTO) Inc. in Santa Monica, Built-to-Order (BTO) Inc. in Santa Monica, California, plans to build custom cars on demand, California, plans to build custom cars on demand, outsourcing most aspects of construction and outsourcing most aspects of construction and supplies and assembling each custom designsupplies and assembling each custom design

The profit margin in the car industry is typically The profit margin in the car industry is typically 3%, while BTO is expecting 15%3%, while BTO is expecting 15%

The plan is to use standardized parts that can be The plan is to use standardized parts that can be customized, allowing BTO to be largely an customized, allowing BTO to be largely an assembler. It will be the Dell Computer of the auto assembler. It will be the Dell Computer of the auto industryindustry

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Formula for Electronic Commerce Success

The Rules for The Rules for Web SiteWeb Site Success Success 1. 1. Offer something uniqueOffer something unique 2. Web site must be aesthetically pleasing2. Web site must be aesthetically pleasing 3. Easy to use and fast3. Easy to use and fast 4. Motivate people to visit, stay, and return4. Motivate people to visit, stay, and return 5. Advertise your Web presence5. Advertise your Web presence 6. Learn from your Web site6. Learn from your Web site