Alliance Manchester Business Digital Business

Alliance Manchester Business School
Digital Business (BMAN71702)
Dr. Pedro Sampaio
Senior Lecturer in Information Systems
The University of Manchester
[email protected]
2
Overview
• Module objectives
• Course structure, assessment and
reading list
• Introduction to Digital Business/eCommerce
• Frameworks and Models for
Understanding Digital Business/eCommerce
• Digital Business Models
3
Overview
• Module objectives
• Course structure, assessment and
reading list
• Introduction to Digital Business/eCommerce
• Frameworks and Models for
Understanding Digital Business/eCommerce
• Digital Business Models
4
Module objectives
• To investigate state of the art in Digital Business
from both a theoretical and practical standpoint
• To examine a range of Digital Business models
focussing on how they support the various business
activities
• To examine the emerging Digital Business/eCommerce technologies and how they affect Business to
Business and Business to Consumer applications
• To explore the relationship and impact of Digital
Business/e-Commerce in strategy and operations
• To investigate Digital Marketing technologies and
their integration with Digital Business frameworks
• To develop Digital Business and Digital Marketing
problem solving strategies via case studies and group work
• To study the latest developments in Digital Business
research and practice
5
Overview
• Module objectives
• Course structure, assessment and
reading list
• Introduction to Digital Business/eCommerce
• Frameworks and Models for
Understanding e-Business/eCommerce
• Digital Business Models
6
Course Structure BMAN71702 Digital Business
BMAN71702 Pre-recorded Lecture Seminar Session
Date Weeks Topic
9th February 1 Unit 1: Introduction to
Digital Business Models and
Frameworks
Introduction to Digital Business
Module Q&A
Introduction to Coursework 1
Meeting your team
16th
February
23rd
February
2
3
Unit 1: Introduction to
Digital Business Models and
Frameworks
Unit 2: Digital Business IT
Infrastructure
Coursework 1 Choosing your
business idea
Coursework Q&A
Business Model Canvas
Development
2nd March 4 Unit 3: Digital Business Trends Group Coursework Q&A
9th March 5 Unit 4: Digital Business
Marketplace Analysis
Case Study
16th March 6 Unit 5: SMEs and Digital Business Case Study
23rd March 7 Unit 6 Digital Marketing Introduction to Coursework 2
13th April 8 Unit 6 Digital Marketing Coursework 2 Q&A
20th April 9 Unit 7:Digital Business Research Coursework 2 Q&A
27th April 10 Digital Business Research Module Wrap-Up
7
Assessment
• 50% Group Coursework (Deadline: Wednesday – March 24th, 2021,
3pm)
• 50% Individual Coursework (Deadline: Wednesday – 28th of April, 2021,
3pm)
Note 1: You have been pre-allocated into a coursework group.
Note 2: Coursework groups will range from a minimum of 6 to a maximum
of 7 students.
Note 3: All coursework group members will be awarded the same grade
unless members by a majority vote wish to raise performance concerns
about individual members.
8
Reading List
Core Text
• (1) Chaffey et al. 2019, Digital Business and E-Commerce
Management, Pearson Education Ltd, 7th ed., 2019,
Supplementary Text:
• (2) Laudon, Kenneth and Traver, Carol, E-Commerce 2020/2021:
Business, Technology, Society. Global Edition, 16/E, Pearson, 2020.
• (3) Efraim Turban, David King, Jae Kyu Lee, Ting-Peng Liang,
Deborrah C. Turban Electronic Commerce: A Managerial and Social
Networks Perspective, Global Edition, Springer, 2018.
• (4) Dave Chaffey, PR Smith, Digital Marketing Excellence: Planning,
Optimizing and Integrating Online Marketing, Routledge; 5th edition,
2017.
• (5) Schmidt/Cohen, The New Digital Age: Reshaping the Future of
People, Nations and Business, Publisher: John Murray 2014.
• (6) Klaus Schwab, The Fourth Industrial Revolution, Portfolio Penguin
(2017)
9
Overview
• Module objectives
• Course structure, assessment and
reading list
• Introduction to Digital Business/eCommerce
• Frameworks and Models for
Understanding Digital Business/eCommerce
• Digital Business Models
Warm-up Quiz
1. Number of taxis owned by the world’s largest taxi company?
2. Number of mobile phone towers owned by the provider of the
world’s most popular mobile communication service?
3. Does China’s most valuable e-commerce brand hold inventory?
4. Name two companies that make US $ Billions of revenues from
videos without actually owning the videos?
5. Identify a technology that represents a significant threat and also a
opportunity in relation to Uber’s business model?
What is E-commerce?
• Use of Internet and Web to transact business
• More formally:
– “Digitally enabled commercial transactions between and among
organizations and individuals”
(Laudon/Traver, “E-Commerce 2020/2021, Business,
Technology and Society” Pearson, 2020)
– “All electronically mediated information exchanges between an
organization and its external stakeholders”
(Chaffey, “Digital Business and E-Commerce Management:
Strategy, Implementation and Practice”, 7th Edition, Pearson,
2019)
What is Digital Business (e-Business)?
•
“The application of information and communication technologies
(ICT) in support of all the activities of business”. (Beynon-Davies P.,`EBusiness’. Palgrave, 2004)
•
“e-Business encompasses online transactions, but it also refers to
online exchanges of information.”
– Manufacturer letting its suppliers monitor production schedules via an
extranet (using internet to connect to suppliers and partners)
– Financial institution supporting online banking transactions. (using the
internet to connect with customers)
E-B
E-C
Copyright © 2021 Pearson Education Ltd. All Rights Reserved
• E-business:
– Digital enabling of transactions and processes within a
firm, involving information systems under firm’s control
(Laudon/Traver, “E-Commerce 2020/2021, Business,
Technology and Society” Pearson, 2020)
– Does not include commercial transactions involving an
exchange of value across organizational boundaries
E-C E-B
What is Digital Business
(e-Business)? – Alternative
Perspective
Slide developed based on content from E-Commerce 2020/2021, Business, Technology and Society” Pearson, 2020
Unique Features of Digital
Business Technology
1. Ubiquity
2. Global reach
3. Universal standards
4. Information richness
5. Interactivity
6. Information density
7. Personalization/customization
8. Social technology
Slide developed based on content from E-Commerce 2020/2021, Business, Technology and Society” Pearson, 2020
Why Study Digital Business?
• Technology provides disruptive
organizational capabilities….
• …Leading to fundamental market changes
– Traditional commerce:
• Passive consumer
• Sales-force driven
• Fixed prices
• Information asymmetry
Reflection: Consider how the retail industry was disrupted by Amazon
using e-Commerce technologies.
Why Study Digital Business?
• In early 1994, B2C e-Commerce as we know it did not exist.
• 26 years later, nearly 5 Billion internet users around the globe
spent more than US$ 4.1 trillions (retail e-commerce sales)
• Global B2B e-Commerce market value of US$12.2 trillion in 2019
(Statista) and expected to reach US$ 20.9 trillion in 2027
(Research and Markets)
• Migration Trends from physical to digital accelerated by Covid-19
Pandemic (Retail, Banking, Healthcare, Insurance, Entertainment,
etc.)
• Digital Platforms will create growth opportunities and continue
relentless disruption of existing business models and innovation
through novel Digital Business Models.
https://www.internetworldstats.com/stats.htm
https://www.globenewswire.com/news-release/2020/09/24/2098493/0/en/Global-20-9-Trillion-Business-ToBusiness-B2B-E-Commerce-Markets-Size-Share-Trends-Analysis-Forecasts-2016-2019-2020-2027.html
How e-Commerce Changes
Industry Structure
 E-commerce changes industry structure by
changing:
– Rivalry among existing competitors
– Barriers to entry
– Threat of new substitute products
– Strength of suppliers
– Bargaining power of buyers
Slide from E-Commerce 2014 Business, Technology and Society by Laudon/Traver Copyright © 2014 Pearson
Education, Inc.
18
Overview
• Module objectives
• Course structure, assessment and
reading list
• Introduction to Digital Business/eCommerce
• Frameworks and Models for
Understanding Digital Business/eCommerce
• Digital Business Models
19
The Evolving Internet
Applications
• Web 1.0 (“read-only” or static web)
• Web 2.0 (“read-write” or participating web)
• Web 3.0 and beyond (“read-write-infer-execute” or
semantic web, populated by virtual digital assistants
powered by artificial intelligence)
– Natural Language Processing
– Recommendations based on big data
– Instrumentation of everyday objects (Internet of Things)
– Digital Twins, Smart Manufacturing and Industry 4.0
• Metaverse (“a future iteration of the Internet, made up of
persistent, shared, 3D virtual spaces linked into a
perceived virtual universe.”) (Forbes,2020)
• Fortnite, Minecraft and Roblox are not in themselves metaverses,
but spaces/destinations within the metaverse.
https://www.forbes.com/sites/cathyhackl/2020/07/05/the-metaverse-is-coming–its-a-very-big-deal/?sh=46012a5a440f
Copyright © 2021 Pearson Education Ltd. All Rights Reserved
Understanding Digital Business
and E-commerce: Organizing
Themes
• Technology:
– Development and mastery of digital computing and
communications technology
• Business:
– New technologies present businesses with new ways
of organizing production and transacting business
• Society:
– Intellectual property, individual privacy, public welfare
policy
Focus of BMAN71702 Module
21
Overview
• Module objectives
• Course structure, assessment and
reading list
• Introduction to Digital Business/eCommerce
• Frameworks and Models for
Understanding Digital Business/eCommerce
• Digital Business Models
Industry Value Chains
Set of activities performed by suppliers,
manufacturers, transporters, distributors,
and retailers that transform raw inputs into
final products and services
Internet reduces cost of information and
other transactional costs
Leads to greater operational efficiencies,
lowering cost, prices, adding value for
customers
Slide from E-Commerce 2014 Business, Technology and Society by Laudon/Traver Copyright © 2014 Pearson
Education, Inc.
23
Disruption in Music Industry Value
Chain
Artists
Musicians
Producers
Publishers Manufacturers
Distributors Retailers
Artists
Musicians
Producers
Publishers Retailers
Bricks and Mortar [CDs/LPs]
DIGITAL involving B2B and B2C transactions
[artists bypass labels working with e-commerce retailers such as Amazon]
Artists
Musicians
Producers
Artists
Musicians
Producers
Retailers
[direct-to-fan]
24
Disruption in Music Industry Value
Chain
Artists,
Musicians,
Producers
Record
Labels
Manufacturers,
Distributors
Retailers
Disintermediation of a consumer distribution channel showing (a) the
original situation, (b) disintermediation omitting the wholesaler, and
(c) disintermediation omitting both wholesaler and retailer
Copyright © 2018, 2017, 2016 Pearson Education, Inc. All Rights Reserved
E-Commerce and Industry Value Chains
Slide from E-Commerce 2017 Business, Technology and Society by Laudon/Traver Copyright © 2017 Pearson
Education, Inc.
Firm Value Chains
• Activities that a firm engages in to
create final products from raw inputs
• Each step adds value
• Effect of Internet:
– Increases operational efficiency
– Enables product differentiation
– Enables precise coordination of steps
in chain
Slide from E-Commerce 2017 Business, Technology and Society by Laudon/Traver Copyright © 2017 Pearson
Education, Inc.
Porter’s Value Chain
Diagram Developed based on Figure 5.1 of Competitive Advantage: Creating and Sustaining Superior Performance by
Michael Porter, Free Press, 1985
Exercise – The Value Chain of a Retail Bank
• Identify three primary activities
• Identify three supporting activities
Slide from Electronic Commerce 2010 A Managerial Perspective by Turban/King/Lee/Liang/Turban Copyright © 2010
Pearson Education, Inc. Publishing as Prentice Hall
Core Dimensions Framework
(Product, Delivery, Process)
Slide from Digital Business and e-Commerce Management: Strategy, Implementation and Practice, Pearson
Education Ltd, 7th ed., 2019
Buy-side and Sell-side Framework
Stage Model for Buy-side and Sell-side
Slide from Chaffey, Dave, e-Business and e-Commerce Management: Strategy, Implementation and Practice,
Pearson Education Ltd, 7th ed, 2019
31
Overview
• Module objectives
• Course structure, assessment and
reading list
• Introduction to Digital Business/eCommerce
• Frameworks and Models for
Understanding Digital Business/eCommerce
• Digital Business Models
Architectural Framework for Digital
Business
Slide from Electronic Commerce 2010 A Managerial Perspective by Turban/King/Lee/Liang/Turban Copyright © 2010
Pearson Education, Inc. Publishing as Prentice Hall
33
Summary for Week 1
• The organizing themes and aspects covered in
the module
• The concepts and vocabulary involved in
Digital Business and e-Commerce
• The Importance of Studying Digital Business
and e-Commerce
• Models and Frameworks used for analysing,
understanding and tackling Digital Business
problems
• Disruptive forces propelling the Digital
Business revolution
34
Reading List for Week 1
Core Text
• (1) Chaffey et al. 2019, Digital Business and E-Commerce
Management, Pearson Education Ltd, 7th ed., 2019 (Chapter 1)
Supplementary Text:
• (2) Laudon, Kenneth and Traver, Carol, E-Commerce 2020/2021:
Business, Technology, Society. Global Edition, 16/E, Pearson, 2020.
(Chapter 1)
• (3) Efraim Turban, David King, Jae Kyu Lee, Ting-Peng Liang,
Deborrah C. Turban Electronic Commerce: A Managerial and Social
Networks Perspective, Global Edition, Springer, 2018. (Chapter 1)
35
Next Week
• Module objectives
• Course structure, assessment and
reading list
• Introduction to Digital Business/eCommerce
• Frameworks and Models for
Understanding Digital Business/eCommerce
• Digital Business Models