Introduction

Summary

This introductory e-business lecture by Mamata Jenamani covers the evolution and significance of ICT in modern business. It explains the shift from traditional to web-based transactions, emphasizing Dr. Andy Grove's prediction of all companies becoming internet-oriented. The lecture delves into business definitions, the importance of customer value delivery, and the role of ICT in enhancing business processes. It also distinguishes between e-commerce and e-business, highlighting e-business as a broader concept that includes all online business activities beyond just transactions.

Takeaways

• 🌐 The importance of a company's website in modern business interactions is highlighted, emphasizing the shift from a time when websites were not a necessity to the present where they are essential for business operations.
• 🔮 Dr. Andy Grove's prediction in 1999 that all companies would have an online presence within five years, signaling the inevitable integration of the Internet into business strategies.
• 📚 The script defines 'business' in various ways, emphasizing the goal of generating revenue and the importance of delivering value to customers to ensure profitability.
• 🏭 The explanation of different types of businesses, including private, non-profit, and state-owned, and their respective roles in the economy.
• 💡 The concept of 'customer delivered value' is introduced, indicating the difference between the total customer value and the total customer cost, which is crucial for customer satisfaction.
• 😊 Customer satisfaction is described as a result of comparing a product's performance to customer expectations, and its impact on customer loyalty and business profitability.
• 🔄 The value chain model by Porter is discussed, outlining the primary business processes that every company must undertake to deliver value to the customer.
• 🔗 The script explains the interconnectedness of businesses, suppliers, and customers, and how ICT can streamline processes and reduce delays in order cycles.
• 🛠️ The evolution of ICT in business from the 1950s to the present is traced, showing the progression from transaction automation to the integration of entire supply chains through the Internet.
• 📈 The definition of e-commerce is provided, focusing on the buying and selling of goods and services through digital networks, and distinguishing it from e-business, which encompasses a broader range of online business activities.
• 📚 The script mentions several key texts that will be used throughout the course, indicating the interdisciplinary nature of e-business studies, combining elements of information systems, technology, and business strategy.

Q & A

What is the significance of a company's website in today's business environment?

A company's website is crucial as it serves as the primary point of interaction for customers seeking information about products, services, or wanting to contact the company. It has become an essential part of doing business, replacing the need for physical interaction in many cases.

What did Dr. Andy Grove predict about the future of companies and the Internet in 1999?

Dr. Andy Grove, then Chairman of Intel, predicted that in five years all companies would have an interface on the Internet. He suggested that there would not be any Internet companies as such, but rather all companies would integrate the Internet into their operations.

How is the term 'e-business' defined in the context of this lecture?

E-business is broadly defined as any business process that relies on automated Information Systems, primarily using web-based technologies. It encompasses more than just e-commerce and includes activities such as customer servicing, collaborating with business partners, and supporting internal transactions.

What is the difference between business and commerce according to the lecture?

Business is a broader term that includes all activities related to generating revenue, managing people, and organizing collective productivity. Commerce, on the other hand, is a subset of business that specifically refers to the activity of buying and selling, particularly on a large scale.

What is the purpose of business as discussed in the lecture?

The primary purpose of business is to make a profit. However, to achieve this, businesses must deliver value to customers, satisfy their needs, and generate revenue through activities that are not random but strategically aimed at meeting customer expectations.

What is the concept of 'customer delivered value' as per the lecture?

Customer delivered value is defined as the difference between the total customer value (the benefits expected from a product or service) and the total customer cost (the costs incurred in evaluating, obtaining, using, and disposing of the product or service).

How is customer satisfaction defined in the context of this lecture?

Customer satisfaction is a person's feeling of pleasure or disappointment resulting from comparing a product's perceived performance or outcome with their expectations. It is a key factor in generating customer loyalty and is closely tied to the value delivered to the customer.

What is the importance of the value chain in delivering value to the end customer?

The value chain is a series of primary and supporting business processes that a company must effectively manage to deliver value to the end customer. It includes inbound logistics, operations, outbound logistics, marketing and sales, and services, as well as supporting activities like procurement, technology development, human resource development, and infrastructure.

What are the key stakeholders in a business and how are they connected to the company?

Key stakeholders in a business include customers, employees, suppliers, distributors, financial institutions, and governments. They are connected to the company through information systems, which facilitate the flow of information, material, and money in the value delivery process.

What is the role of ICT in improving business processes and contributing to e-business?

ICT serves as a strategic tool to enhance business processes by reducing delays in various cycles such as customer order, replenishment, manufacturing, and procurement. It helps in automating and integrating business activities, making them more efficient and effective, which is essential for the success of e-business.