Unit 8.1. - E-Business

• Electronic business (e-business)

• DIgital business models

• Definition Artifical intelligence

• Globotics

1) information

2) communication

3) transaction

• globalisation + robotics

• Digitisation has lead to significant shifts in professional activities

• some skills are becoming more important; especially soft skills

• repetitive activites are eliminated, new activites are added

• expected: employment shift to countries with lower wages

KEY: It adds a NEW VALUE; i.e.

Types of value

• structuring value: better overview

• selection value: selection options that lead to more efficient selection

• matching value: suppliers and inquirers are connected efficienty and effectively

• transaction value: more efficient and effective transactions

• communication value: efficient and effective communication of different demanders

(Kollmann, 2020)

Electronic businesses is the

• initiation

• support

• handling and

• maintance

of service exchange between economic partners via electronic networks.

The success of e-business is bases on the new added value that it achieves.

• These models go hand in hand with digital transformation

• The value creation or benefits within the company are based on digital components and are purely digital OR

• the activity/activities are essentially based on digital technologies

• typical digital business models include plattforms

• AI describes computer systems that mimic human intelligence and

• have ability to solve problems in an abstract way

• have the ability to learn

• have the ability to deal with uncertainty and probabilities

• Robots are the “silver bullet” of AI

Definition:

“Electrionic Business

refers to the initiation,

partial or complete support,

handling, and

maintance of service exchange processes between economic partners

by means of information technology (electronic networks)”

(Wirtz, 2018)

4 stages of development (Wirtz, 2018)

axses: business activity/ value - complexity

1. stage - static prevention (simplest stage): static presentations -> information for customers or investors

2. stage - communicative interaction: personalised and interactive internet offers -> customers inquires are answered via email; pre and post-sale offers

3. stage - commerical transaction: online transactions (sales contracts), back office

4. stage - value and partner integration: all business partners are electronically integrated in the value chain -> goes beyond customers

1) e-procurement: platforms for procurement

2) e-shop: sales

3) e-marketplace: trade

4) e-community: contact networks

5) e-company: cooperation

(Kollmann, 2020)

KEY: new added value is created

Types of added value:

1) Structuring value: a better overview is created

2) selection value: selection options lead to more efficient selection

3) matching value: suppliers and inquirers brought together effectively and efficiently

4) transaction value: more efficient and effective processing of transactions

5) communication value: communication of different demanders is more efficient and effective

(Kollmann, 2020)

• The process of change in companies by digitisation technologies

• “the creation of value or benefits in the company is purely digital, essentially on the basis of digital components, or through activity that is essentially based on digital technologies”

(Bijedic & Hoffmann, 2018)

Digital technologies: hardware & software units for signal processing and signal exchange via IP-based networks

Digital goods: based on digital technologies or completely digitalised

digital strategy: plan to measures to achieve measurable goals

digital business model: design of relationship btw. service provider and groups; uses IT-based networks; services are digital or non-digital (Spotify, mytaxi)

(Hoffmeister, 2017)

Internet of Things (IoT)/Industry 4.0/Cyber-physical systems: Networking horizontally, vertically and across company boundaries

Big data: allows scalabe integration, extraction and processing of large data sets

Cloud computing: offer is “as a service” via a server (cloud) from another location

Artificial intelligence/extended intelligence (EI)/machine learning: algorithms, capable of learning, analyse large data sets, derive + execute action alternatives independently (AI); with EI: human being decides alternative action

Digital platforms: 1) digital marketplaces: transaction centred; they bring together supply + demand; 2) digital ecosystems: data-centered; complete system for collection, processing and evaluation of data streams from complementary components

Block chain technologies: data records (blocks) are linked by an algorithm (cryptographic hash function) to a chain. The cryptographic hash function takes an arbitrary amount of data input + produces fixed-size output of enciphered text

• cryptography = encryption of information

• hash function (scatter value function) = arbitrary amount of data input -> procudes fixed size output of enciphered text

• all technology from areas of information and communication

• new skills for managers: need to understand ICT technologies + their trends and potentials. One way to do this: cooperate with digital start-ups

• qualification of own personnel or cooperation partners: needs external serivce providers or in-house ICT specialists with IT skills, however: shorateg of specialists

• legal uncertainty: data security and ownership of raw data -> liablity issues, unresolved transfers of rights and ownershop in block chain technologies

• digital infrastructure & location decisions: tranmission rates, reliabilty and security of data networks influence location decisions; cultural influences; regional clusters; infrastructure -> broadband supply

1) Product business model: standardised goods in large quantities with little individualisation; supplemented with simple services i.e. maintance; one-off sales = one time sales with no follow-up transactions

2) Platform business model: Different players provide a service together; winner takes it all/most; i.e Amazon, Netflix, eBay

3) Project business model: highly indiviualised products, where the project is carried out once; i.e. consulting, construction companies

4) Solution business model: highly individualised services; completely implemented at customer’s site; i.e. plan - build - run; e.g. Hewlett-Packard system landscape (printers, copiers, scanners, fax machines)

Front-end: area of value creation that the customer sees

Back-end: activities that the customer does not see

revenue mechanism: how revenues are generated and profitiability is managed

KEY: orientation framework for companies on how to switch between the four business models

Axes: Completeness of the transaction

Extension/Expansion: