ebusiness Strategy

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• e-business Strategy

June 21, 2000 Jae Hyung Lee e-business solution
sales IBM Korea
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Expanding Internet Users
W/W Total 193.3M
Internet Diffusion Rate


3
Increasing Internet Users
Estimation for Internet Diffusion
500
(unit million people)
Others
400
Asia
320
Europe
250
200
USA
0

• 2003

1999
2000
2001
2002
source IDC
4

• e-business is growing Rapidly.

Transformation is required for corporate
management.

• Transformation of Social Foundation
• e-money
• Health care network
• Distance learning
• Cyber community

• Transformation of Management system
• e-commerce
• CRM /BI
• ERP
• SCM
• e-market

• The increase of Business use
• www information delivery
• information collection

• Used in the academic area
• e-mail
• information
• exchange

Phase 1
Phase 3
Phase 2
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• Transform Core Business Process

e-commerce
Customer
Business
ERP
SCM
PDM
CRM
Collaboration Business Intelligence Knowledge
Management
6

• e-business in Automobile Industry

Global Leader in Automobile e-business, e-GM
Phase 1
Phase 3
Phase 2
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e-Markets B2B Business Movement
e-Markets Opportunity (2004)
7.2T
e-Market Business
2.71T (37)
Strategic
4.41T
Strategic Components
Services (Logistics)
3.95T
Direct
In-Direct
2.18T
SCM
0.95T
Procurement MRO
Generic Parts

• 0.40T

Commodity
e.g. Procurement in Automobile Industry
Source Gartner Group, Jan.2000
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B2B Business Model Transformation
Business Model Transformation
Now
Cross Connection (M to M)
Buyer Centric (Procurement, 1 N)
e-Market Place Model (N M)
Global Commerce Backbone
Pressure for EC
Supplier Centric (Supply, M 1)
Business Model Paradigm Shift

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• The Drivers to e-Market

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• Current Business

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• Reference Case ASKUL Transformation

The business is growing rapidly by independent
business unit.
??
Revenue Trend (hundred million yen)
??
?????

• Business Transformation
• 1993 March Established as a new B/U
• in the parent company
  
• 1997 May become independent as
• a new corporate
• Business
• - Sell office supplies
• - More than 6000 kinds of goods
• - More than 55000 customers

Start e-business
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• Reference Case Schwab Transformation

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• Reference Case Britannica Transformation

rebirthed by "Brand power" and internet business
model
Replaced type

• Business Style Transformation
• Created CD-ROM encyclopedia,
• Failed to coexist with the existing business
• Purchased by Jaycob Safla in 1996
• Created "Britannica online" for internet
• All publishes were applied to internet in 1999.

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Establish Well-defined Strategy
Leading Company

• Business Value

Customer Associated Information
Optimize Inventory Management
"Dynamic Pricing" business model
e-Market
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(No Transcript)
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• Technology Direction and
• IBM Solutions

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• Future of Network Society

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• Future Pervasive Computing

Wireless Tablets
Badge Computer
Wireless Handhelds
Wearable Computer
Access Kiosks
Application Specific Devices
NetVista-ThinkPad- Handheld Combination Designs
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e-business Application Development Tool
Automatically change Web contents to each device
screen

• Device Independent Web Application
• Standard HTML, i-mode, game, etc.
• Standardization in W3C

Realized by IBM Dharma
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IBM's e-business Commitment

• An Integrated Approach to Innovation

Integrated Technology Services
Storage
Industry Roadmaps
Servers
Research
Solutions
Strategic Outsourcing
Business Innovation Services
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Scalability, Availability Secured IT
Infrastructure
Support the Peak Power

• Company Reputation
• Brand Image
• Customer Relationship

Risk
User is impatient 67 of all Web Transactions are
abandoned before completion. 46 of people
abandon the Web site if any problems.
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IBM Servers for e-business

• Scalability and Reliability required for
  e-business

Enterprise Server S/390
UNIX Server RS/6000
99.97 2000X
99.999 4500X
Business Server AS/400
PC Server Netfinity
99.97 200X
99.9 200X
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• e-business Software

Development speed and system collaboration are
important.
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System Management Tool Tivoli
Tivoli has three functions required for
e-business environment.
Integrated System Management
Security Management

Storage Management
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• Linux Support by IBM

• Worldwide Partnership
• redhat Linux Red Hat Software, Inc.
• TurboLinux TurboLinux, Inc.
• SuSE Linux S.u.S.E., Inc.S.u.S.E.,
• OpenLinux CalderaSystems, Inc.
• Support Linux by IBM Products

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Key Success Factors for e-business

• Start simple, grow fast
• Start now with TOP decision
• Speed is competitive advantage
• Target individual customer
• Leverage information asset
• Security, scalability and reliability is
  important

• Source Visioneering sessions and surveys

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THANK YOU
http//www.ibm.com/e-business