The proposal focuses on The Brand Company's business prospects. The Brand is looking forward to expand its business by trading online through the Internet.
SHEILA THIAM
TECNOLODGY INNOVATION CENTRE OF MILLENNIUM POINT
UNIVERSITY OF CENTRAL ENGLAND
Due date: 17th May 2002
MSC ELECTRONIC COMMERCE THEME
ELECTRONIC COMMUNICATION ASSIGNMENT
THE BRAND COMPANY BUSINESS PROPOSAL
Proposed by
Sheila Thiam Mei Chen
Managing Director of TheBrand.Com
Executive Summary
The proposal focuses on The Brand Company's business prospects. The Brand is looking forward to expand its business by trading online through the Internet. Consider a new business model for The Brand and show how expansion of the business is conducted. It focuses on the necessary change of the business model. Consider the analysis of The Brand's threats and opportunities. The Brand would transform 'bricks-and- mortar' to 'click-and-mortar' types of business. Therefore, the company had realized the benefits of incorporating e-business to the business. Consider new systems required for the new business model. A detail cost and benefit analysis of the new systems will be conducted. The Brand considers of payment and transaction, security systems, running costs, maintenance costs, customer satisfaction and problem management. The most important is that The Brand considers future proofing to extend and accommodate new products and technologies. The Internet and related advances have made possible dramatically closer ties with your customers and suppliers. Extending existing business systems so that they can exchange secure business transactions electronically with customers and suppliers is an exciting movement in the information technology industry. Many companies are realizing huge savings by automating people-intensive business processes while at the same time increasing revenue and improving loyalty between their companies and their trading partners. TheBrand.com will focus on its buy side, sell side and explore the e-marketplace.
Introduction
The report highlights the major concern of The Brand Company for the implementation of web based B2B/ERP facility. There will be new strategies adopted by The Brand to achieve business aims and objectives. A good planning for the quality of all choices will be considered. The systems required are to be identified and to implement within the company. The company would measure the required systems through detail costs and benefits analysis to outline the needs of the implementation. The implications of implementing the new systems with respect to the staff has been considered and discussed. It is important for the company to consider the changes occur in the new implementation and make appropriate recommendations for future implementation.
Terms of Reference
The main focus on this report is to analyse The Brand Company and the following procedures for the implementation of the new business model.
Procedures
This report is based on The Brand Company and all materials obtained are sources from the Internet, library books, white papers and journals from the research conducted.
Company Background
The Brand has started its business since 1979 and it is situated in Kuching, the capital of Sarawak in Malaysia. The company focuses its market on the selling of men's wear and women's wear. Therefore, the company has segmented its customers from the current market into three categories, which are men, women and kids. The men's products include shirt, trousers/jeans, t-shirts and jackets. The women's products include skirts, blouse, shirts, trousers or jeans. The Brand has 7 branches of retail shops in the state of Sarawak in Malaysia. The first Internet presence business was created since in 1999, while the company sales increased 8%. The Internet presence business allow customer to browse products catalogue information on line. Customers are allowed to download the products information through the web site. Then, The Brand will receive customer orders either through phone order, email, fax or postal mail. The brand employed approximately 550 staff to manage and run the business for almost 10 years.
Mission
. The company aims to transform current business into Business-to-Business and target to achieve 20% of sales increase in 2004.
2. Long term benefit in 5 years time.
Business Objectives
. Create an e-commerce presence
2. Create an E-business presence
3. Transform E-business to Business-To-Business
4. Identify systems required new business model
5. Cost and benefits analysis for the chosen systems
Business Strategies
. E-commerce strategies
The strategy involves adding a shopping cart into the existing web presence that allows customer to purchase online. E-commerce will accelerate the shift of power to the consumer.
2. E-business strategies
TheBrand.com focuses on e-business strategy to expand markets from B2C to E-Business in order to provide value to the company and the shareholders. Now, TheBrand.com will carry out transactions of all kinds all over the network (Intranet, Extranet and Internet) between companies, its supplier and business partners.
TheBrand.com e-business goals:
> One way of improving TheBrand.com business is the use of Internet to collaborate with customers, suppliers and business partners. The main goal of using e-business is to allow huge transaction between businesses.
> E-business target to streamline order management and cut cost in sales by automating the manual sales process and allow customers to check inventory at multiple plant to place orders for standard goods.
> E-business helps to increase customer loyalty and supplier dealerships to participate in the private marketplace for greater trade exchanges.
This strategy will be used to integrate with back office systems to increase customer satisfaction with faster service and lower operating costs. In addition, adopting e-business can generate new marketing opportunities, reduce time-to-market, and increase return on investment (ROI). E-business strategy is to link core business systems to key constituencies using intranets, extranets and the web.
3. B2B Strategy
Combine the buyers and suppliers to the created e-business. Create public exchanges that will be able to share information, collaborate with their retail customers. Sharing expertise and create automated process for synchronizing price and billing data. B2B e-Marketplace strategies should allow participants to increase revenues, cut costs, broaden reach, gain competitive advantages, and improve relationships to a degree never before possible.
Identify Buyer and Supplier Benefits on B2B e-marketplace:
Buyer's Benefits:
> Reduced Transaction Costs:
Using an e-Marketplace to facilitate the transaction process has allowed organizations to cut transaction costs in excess of 10%.
> Identification of New Suppliers: Buyers find it much easier to identify, qualify and measure the performance of new suppliers.
> Faster Time to Market: Increased collaboration between suppliers, buyers and customers reduces the time to develop, produce, and distribute new products. The improved communications enable stronger and more beneficial relationships between parties.
> Improved Market Transparency: Improved insight into changing trends within the industry, helping smooth supply-and-demand shocks that are the result of unpredictable factors.
Supplier's Benefits:
> Increased Exposure to New Buyers and Sales Opportunities:
Sellers can showcase their products to the global marketplace 24 hours a day, 7 days a week. E-Marketplaces enable you to present buyers with a personalized purchasing experience complete with cross selling, contextual advertising and promotional opportunities.
> Reduced Transaction Costs: Through aggregation, improving the accuracy of orders, collaboratively viewing product design and movement data, streamlining internal administrative processes and reducing sales expenditures, suppliers can reduce costs and improve overall financial performance.
> Market Intelligence: Suppliers gain a much better insight into the trends in the industry and buying patterns of key customers.
> Anonymous Posting of Excess Inventory: E-Marketplaces provide a supplier with anonymity to liquidate excess inventory without jeopardizing their ability to maintain established prices and terms.
> Leveled Playing Field for Small Organizations: E-Marketplaces do not discriminate by size, and therefore enable small buyers and sellers to compete more effectively. Furthermore, smaller organizations can benefit from the efficiencies of e-commerce without the extensive. IT infrastructures that are required by (Electronic Data Interchange) EDI systems or ...
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> Market Intelligence: Suppliers gain a much better insight into the trends in the industry and buying patterns of key customers.
> Anonymous Posting of Excess Inventory: E-Marketplaces provide a supplier with anonymity to liquidate excess inventory without jeopardizing their ability to maintain established prices and terms.
> Leveled Playing Field for Small Organizations: E-Marketplaces do not discriminate by size, and therefore enable small buyers and sellers to compete more effectively. Furthermore, smaller organizations can benefit from the efficiencies of e-commerce without the extensive. IT infrastructures that are required by (Electronic Data Interchange) EDI systems or extranets.
> Competitive e-Marketplace Strategy: A top priority is to develop an e-Marketplace strategy that reflects your business objectives and creates a competitive advantage for your company and your trading partners. How can you best leverage the collaborative capabilities and transparency of the e-Marketplace to differentiate your products, services and operational effectiveness. Are you a buyer, a seller, or both? If you create an exchange, will you go it alone or partner with others in your industry? Once you determine your overall approach, you must decide what type of B2B systems you will deploy, and whether you will build and operate your own systems or partner with an established solutions and services provider.
> E-enablement of your business processes
There is limited value in simply automating today's manual business processes. Implementation of your e-Marketplace strategy enables you to streamline your business processes, eliminate the need for manual intervention, and protect your existing investment in Supply Chain Management (SCM), and Customer Relationship Management (CRM) solutions and Supplier Relationship Management.
> Speed to Market
Early leaders will accelerate the operational, financial, and customer relationship benefits of e-Marketplace solutions. They will also have the opportunity to shape the competitive landscape within their industry.
> Open Standards
The solution you implement must effectively integrate your business process and functions including, but not limited to, planning, procurement, fulfillment, customer care, and product development. Companies must select solutions and supporting infrastructures that are open and flexible enough to provide quick interoperability with partners, suppliers, customers, and other e-Marketplaces.
> Mission-Critical Reliability and Availability
The success of your business will depend upon the reliability, availability, and security of your e-Marketplace solutions. You should identify those technology and service providers that have the capabilities and proven track record to deliver seamless availability and ensure the security of these mission-critical solutions.
> Globalization
The global nature of e-Marketplaces creates the opportunity to reach an expanded customer set and identify new sources of skills and materials. Your selection of solutions and service partners should provide the breadth and flexibility needed to support your expansion into these markets.
> Internal synchronisation of customer information
Creating a single system for users to view and update customer information, making it the definitive source of customer data across functions, brands, business units, and geographies.
4. CRM Strategy
CRM is a business strategy where it will evolve differently at different enterprises depending on what strategy is developed. Thus, TheBrand.com needs to determine what they want their organization to look like once CRM is in place. A strategy to become a customer center - and support multiple channels - requires different solutions than a strategy designed to maximize the lifetime value of the customer through forming close relationships between the customer and the enterprise with independent agents. Therefore, the first step is to develop an appropriate CRM strategy to coincide with the enterprise's business strategy.
Building Storefronts
B2C Storefronts forTheBrand.com
TheBrand.com, at first is Internet presence only, but it a need to upgrade the website by creating an online merchant store. TheBrand.com runs the business as an e-tailer. The website consists of the product catalogue, products information, pricing, merchant policy, shipment details and online payment capabilities. The online catalogue will be updated from time to time to update information about the products sold and pricing details. TheBrand.com is selling products like Men Wear and Women Wear to suits all customers that are around the age of 18 to mid 40. Customers can shop online by log on to 'www.TheBrand.Com' for all details and purchases. Customer can log-on to this website anytime they like. The low cost solution of merchandising TheBrand.com's products can benefit all customers; even make it all easier for merchandiser to sell the products to the customers. Customers can browse the most updated information about the latest products, discounts, seasons offering, promotion, free gifts and more through the online store. The website is able to promote the company's products, uploading latest fashion news and branding can be promoted to attract more customers to buy TheBrand.com's products. Customer can choose the product they are interested in by clicking 'Order' button to purchase the selected product. The order purchased will be shown in the shopping basket as customer go through the purchasing steps on the website. Customer will be requested to log-on as the member of 'TheBrand.com' customer or register as a new customer, so that customer can benefit some discounts offer when purchase online for the next time. Customers will be able to conduct online payment through the web site. The website has different options of payment for customers to choose and pay for their purchases. The customer can pay by checque, cash or bank cards (Switch card, Master Card, Solo Card). Once payment details completed successfully, then the orders are purchased successfully. The customer will receive an email for the order confirmation details. Market segmentation can also be done through this website by filling in the questionnaire forms. The website focuses on men and women to be the key customers.
The advantages of online catalogue
. Easy to update product information
2. Able to integrate with the purchasing process
3. Good search and comparison capabilities
4. Able to provide time, up-to-date product information
5. Add Voice and animated pictures
6. Long term cost savings
7. Customisation
8. Comparative shopping
9. Easy payment system
B2B Business Model
There are 3 models involved:
The buy side model
This model is also known as one-to-many model. In this model, multiple catalogs and specific items within those catalogs, along with negotiated prices and any necessary preauthoriations, are consolidated to provide a consistent interface to the company's buyers.
The Sell side model
The sell side model is known as many-to-one model. The most common implementation of a sell-side B2B application is the posting of a catalog of items on the Internet that is available to other businesses. In a sell-side model, the front-end Web solution is fully integrated with all back-end systems. This model allows the procurement staff to view all products, enter their own orders, and check on the status of an order.
The E-marketplace Model
These are electronic marketplaces where buyers and sellers meet electronically for the purpose of trading electronically with each other.
Systems Requirement
Core Systems Required:
. B2C Storefront systems
> A merchant system that provide merchant's catalogue, with products, prices and promotions. A shopping cart is included.
> A transaction system for processing orders, payments, and other aspects of transactions.
> A payment gateway that routes payments through existing financial systems primarily for the purpose of credit card authorisation and settlement.
2. Supplier sell-side in B2B
Additional feature of B2B will be included to B2C storefront where:
> Personalised catalogues and web pages for all major buyers
> A B2B payment gate
> A site map
> Product configuration by customers
> Order tracking status facility
> Web based call center
> Ability for customers to use m-commerce tools
> Security and privacy systems
> Company, products and customer information
> Ability to interact with business partners
> Negotiate online
> Integration corporate back-end systems
3. Exchanges
Exchanges should have the capabilities of buy-side and e-procurement systems, portals and auctions.
> Collaboration services
> Web automated workflow
> Integrated business process
> Integration services: systems/ process integration into e-marketplace, trading partners and service providers.
> Data mining, customised analysis and reporting, real-time transactions, trend and customer behaviour tracking
> Negotiation mechanisms
> Language translation
Integrate CRM and SRM with core systems
Customer Relationship Management (CRM)
Customer Relationship management is an approach that recognises that customers are the core if the business and the company success depends on the effectiveness in managing the relationships with their customers.
5 steps to build a customer focused EC:
a. Make it easy for customers to do business
b. Focus on the end customer
c. Redesign the customer-facing business processes from the end customer's point-of-view
d. Wire the company for profit. Design a comprehensive, evolving EC architecture.
e. Foster customer loyalty
TheBrand.com has to take the following actions to achieve CRM:
a. Deliver personalised services
b. Targets the right customers
c. Help the customers do their jobs
d. Let customer help themselves
e. Streamline business processes that impact the customer
f. Own the customer's total experience
g. Provide a total view of customer relationship.
Siebel CRM
The software enables TheBrand.com to manage, synchronize and coordinate sales, marketing, and customer service across all channels and points of customer contact, including the web, call centers, field sales, and reseller channels. This will resulted that TheBrand.com can increase customer satisfaction and maximize revenues by capitalizing on every moment of value in each customer interaction, anytime at any place.
SRM
Supplier relationship management (SRM) tools are focusing on private marketplaces, based on i2's supply chain collaboration product. The use of SRM is for managing TheBrand.com supplier base.
SRM is about optimising the flow of materials and information among trading partners. The software is strictly a B2B application. An example of platform for SRM initiative is the private marketplace model to collaborate companies transparently with their suppliers, buyers and other business partners in real-time.
Logility SCM
Logility SCM is a supply chain management application that provides customer-facing views into customer distribution centers, suppliers, and transportation providers. It is an Internet-based to integrate into business-to-business collaborative commerce applications for value chain strategy, demand planning, inventory planning, replenishment planning, and demand chain modules. Logility SCM allow global views of customer order status, purchase order payment status, load tendering and freight payment..
IBM's new iSeries 400
Many businesses believe that the Internet will prove most valuable for streamlining business-to-business (B2B) commerce processes. Using Internet-based solutions, businesses can share applications, automate information and data flow, and reduce inter company communication barriers. Mid-market suppliers in particular are having a difficult time transitioning to B2B commerce. Many want to use Internet sales channels to reach a wider audience, and, like buyers, mid-market suppliers can gain from the process efficiencies, closer relationships and faster sales cycles that e-business can create. TheBrand.com need to be able to broadcast electronic catalogue from their databases, automatically reconcile electronic orders with their back-end systems, such as financials and inventory management, and integrate their Internet channels with their front office, customer-management systems. IBM's new iSeries 400 platforms gives mid-market companies a way to reduce the risk of technology obsolescence and to participate easily in the B2B sector as both e-business buyers and sellers.
The Benefits of IBM iSeries 400:
* Simplicity
The iSeries operating system, OS/400, uses wizards to simplify everything from Internet setup, to installing and configuring software.
* Low total cost of ownership:
iSeries systems come fully assembled, with all the components (i.e., relational database, security, Java Virtual Machine [JVM] and Web-serving, among others) pretested together--which means remarkably low setup and maintenance costs.
* Flexibility
iSeries systems provide a flexible application environment to run any combination of OS/400, Unix, Linux, Windows NT, Lotus Domino or Java applications concurrently. With more than 4,000 iSeries-certified solution developers, customers can also choose from a wide variety of applications.
* Industry-leading performance
The iSeries balances processing power, memory, input/output, buses and switching capabilities to optimize performance.
* Security
There has never been a reported virus or hack on an AS/400. The iSeries uses the same security infrastructure and also adds the latest e-business security capabilities, such as Secure Sockets Layer, virtual private networks and digital certificates.
* Availability
Capabilities such as OptiConnect (high-speed, bus-level fiber-optic connections between AS/400s), mirroring (to duplicate disk drives and associated components at the system level) and journaling (to record incremental changes to data) can be used in combination to optimize iSeries availability. In addition, the iSeries' "save-while-active" feature allows administrators to back up and recover without disrupting running applications.
* Support
IBM provides personalized and predictive service through an integrated modem in every iSeries. With the modem, customers can always get electronic customer support through TCP/IP and access-relevant technical support sites.
This framework allow iSeries customers to connect their internal back-office solutions, such as those for accounting or human resources, to external B2B applications, such as buy-side e-procurement systems, e-marketplaces or even supply-chain management. The solution is simple enough to use only for publishing e-catalogs, but it is also flexible and extensible enough to use for sophisticated inter-application communication. And, unlike other solutions that require customers to contract with expensive consultants in order to set up B2B links, Connect for iSeries has an intuitive interface and features wizards that help guide users through the setting up of their B2B infrastructure--without any coding.
Connect for iSeries also has plug-ins that allow it to work seamlessly with WebSphere Commerce Suite for full-featured e-commerce, Lotus Domino for notification and approval automation, and MQSeries Adapter Offering for advanced or custom-application integration.
The iSeries delivers the intelligent integration, innovation, and flexibility that businesses need to accelerate successfully into the new e-business economy.These robust, cross-platform middleware products provide the tools you need to build a solid infrastructure for your B2B solution. WebSphere Application Servers provide the essential e-business functions of handling transactions and extending back-end business data and applications to the Web.
iSeries Connect is targeted for the sell side of e-Business and helps the suppliers with numerous tasks such as registering supplier information, keeping track of information about each of the buyers (including authentication information), building and maintaining catalogs for the buyers to shop from, and, if the seller chooses to host the catalog on his own system, iSeries Connect helps with the integration with WebSphere Commerce Suite.
IBM offers all of the pieces that midsize buyers and suppliers need to participate in B2B commerce under the iSeries umbrella. The iSeries adds robust e-business functionality to the AS/400 architecture but, thankfully, still continues the AS/400 tradition of simplicity. After all, IBM's midsize customers are interested in solving business problems, not getting their hands dirty tinkering with technology gadgets. iSeries interfaces are clear and wizard-driven, the iSeries package comes with pre-integrated components and applications, and many additional applications (such as the WebSphere family of products) can be easily plugged in.
TheBrand.com company can benefit from this B2B technology solutions for several reasons:
* Multi-system connectivity provides flexibility and minimizes risk
IBM's Connect for iSeries product, or third-party connectivity products, such as Ironside Technologies', allow midsize suppliers to flexibly connect to any e-marketplace or e-procurement system their buyers want to use, thus eliminating the need to invest in different sets of functionality and business processes for different buyers.
* A rich Web presence can enhance branding, even through e-marketplaces: Midsize suppliers can use WebSphere products to create and maintain a rich, interactive Web presence. Both Connect for iSeries and IBM's Solutions for Ariba SupplierLive allow suppliers to connect their Web sites into the Ariba Network, so that Ariba Buyers can "punch out" to see their products displayed the way the supplier prefers--not as part of a commoditized, static product catalog.
* Suppliers can choose to sell directly or indirectly
The iSeries B2B framework makes it easy to sell both directly and indirectly via the Web. If resellers, distributors or members of a dealer network are e-business enabled, it is just as easy for suppliers to integrate directly with them using Connect for iSeries or third-party connectors as it would be for those suppliers to integrate with an e-marketplace.
* Leveraging existing data where it resides saves time and money
Since existing AS/400s are compatible with the iSeries, and can even run new iSeries software, midsize suppliers running on AS/400s don't need to revamp their entire IT infrastructure to participate in B2B. They can provide real-time data over the Internet, directly from their core LOB applications.
* No need to sacrifice to get to e-marketplace nirvana
In today's volatile business environment, e-marketplaces will come and go, but iSeries B2B connectors will provide flexibility to move between them without sacrificing time and money. Since the only certainty is that buying and selling are becoming electronic processes, Connect for iSeries and other third-party connectors will enable customers to buy and sell
IBM believes that iSeries is much better positioned for success outside its installed base, for several reasons including:
* IBM e-server unified branding: All IBM's strategic servers are being consolidated into one IBM e-server brand (the IBM e-server iSeries 400 replaces AS/400). Since some customers and prospects have questioned IBM's long-term commitment to the AS/400, the AS/400's rebranding as the iSeries, and its subsequent inclusion in the IBM e-server announcement, is an important indication that the platform remains a strategic priority for IBM.
* Price/performance at the low end and scalability issues at the high end have been addressed
Prior to V4R5, the AS/400 had a relatively high price/performance ratio at the low end of the product line, and at the high end, the system had scalability issues. With V4R5 and the new iSeries models, both problems have been addressed. The low-end iSeries EJB/WebSphere server (iSeries Model 270) now has a list price of approximately $18,000, compared with approximately $60,000 with the AS/400 170. At the high-end of the product line, IBM's 24-way iSeries immediately scored record benchmark wins for scalability and performance in two Java benchmarks (VolanoMark and SPECjbb2000) as well as TPC-C and NotesBench.
* Widespread acceptance of iSeries as an ERP and Domino platform Today, the AS/400 is the most widely used ERP server in the world, and IBM has strong application support from ERP vendors such as J.D. Edwards, Geac Computer, Intentia International, MAPICS, SAP and Baan, to name just a few. The AS/400 is also the second most popular Domino server platform in the world (behind NT, but more widely deployed than all Unix servers combined). With the enhanced iSeries offering, IBM can continue to grow its leadership in these two areas with new accounts.
* The push toward server consolidation
Consolidating multiple servers onto one platform is less expensive and more manageable for the customer. Because the iSeries has outstanding scalability, reliability and can handle multiple workloads, it is well positioned to be the server on which new customers consolidate their other server brands. For example, a customer could consolidate its NT server farms into just a couple of iSeries servers.
* iSeries is designed specifically for B2B
The iSeries offers all the components necessary for B2B--hardware to handle massive transaction volumes, an integrated database, support for B2B applications, and software to help users connect to multiple marketplaces and procurement systems, such as Connect for iSeries. As an all-in-one solution, it has a low-cost, higher-functionality advantage over point solutions.
By considering the robust nature of the iSeries platform, its rich application heritage and its B2B connectivity enhancements, it's not hard to see that the iSeries really can bring midsize businesses closer to the B2B transformation they desire. But as always, IBM has a tough sell outside the installed-base AS/400 congregation. And, the jury is still out on whether the rebranding of the AS/400 as the iSeries will help IBM convert more midsize businesses into iSeries customers.
Cost and Benefit Analysis
> E-Commerce Solution Complexity
The e-business environment is such that you can start small and grow your investment into new automation
> Web Presence - Setting up a storefront for TheBrand.com or information web site for your company on the Internet. TheBrand.com need to establish a web site that is conducting B2C or B2B business over the Internet.
> The cost of building and designing a commercial website can range from $20,000 for a relatively simple website to $675,000 for a large project such as a portal in The Brand Company with 25,000 registered users.
> With an automated business process, it is necessary to pay some amount for software and services up front. XML-based solutions tend to be less expensive than an EDI solution because of the complexity of the interface.
> Supplier Connection to Marketplace - linking a supplier's business application to an existing commercial marketplace.
> Enabling a supplier to simply connect to an existing marketplace or exchange and integrate with a business application or exchange can take time to implement. There is an upfront cost for the software and implementation services. Once online, some exchanges charge a monthly fees ranging from hundreds to thousands of dollars for a supplier connection.
> Private Marketplace Hub
TheBrand.com needs to establish a private exchange where several suppliers or buyers with similar business interests are linked via a negotiated interface or commercial marketplace. Therefore, setting up a public marketplace or exchange can be the most costly and complicated of the e-business scenarios. There are multiple buyers and suppliers browsing catalogs, comparing prices, placing orders, requesting order status -- all possibly communicating in different protocols. Industry observers estimate that the cost of building a private exchange ranges from $10 million to $150 million. Consultants and Services groups such IBM Global Services have been involved in the development of a number of public and private exchanges.
> By outsourcing B2B solution through a hosted environment and pay a company for the use of their system to perform the needed functions.
Implementation
Implementation in three stages
A building block approach to the implementation of an e-business environment can give an orderly approach to this area of complex business and technology change. We propose that the adoption of e-business is undertaken in three stages.
Establishing an on-line presence
This stage provides the basic IP infrastructure and the common content and collaboration that most medium and large companies have now established. Infrastructure: LANs, WANs, VANs, IP VPNs, Internet access, IP infrastructure and Security.
Establishing on-line collaboration and trading capabilities
This stage provides the ability to collaborate with colleagues internally, and to collaborate and trade externally. For example, the web storefront and online catalogue.
Integrating applications in the extended enterprise
This final stage provides back end integration of e-business services into the enterprise computing environment to deliver a fully managed desk top to desk top electronic business environment with an enriched set of services. It uses intranets and extranets for managing the collaborative commerce. For example, web-enabled database, order management and B2B commerce.
Application Service Provider
The purpose to seek for ASP is to reduce the operating and maintenance costs. TheBrand.com could outsource its operation, maintenance and services. The ASP will manage the application servers in a centrally controlled location. Applications are accessed via the Internet or VANs through a standard web browser interface. The applications can be scaled, upgrades and maintenance can be centralised, physical security over the applications and servers can be guaranteed. More skilful human resources can be utilised efficiently. IBM is the recommended ASP service provider.
Integration middleware
Middleware is the software used for linking the front to the back office. It helps programs and databases that may be on different computers work together. More formally, middleware is "runtime system software that directly enables application-level interactions among programs in a distributed computing environment." Its most basic function is to enable communication between application programs or DBMSs within a single-application system or across multiple-application systems.
Change Management
Communication is the biggest step to implement change, staffs should know why TheBrand.com need to implement change. The company need to train their staff to learn new ways of doing their jobs. Therefore, culture change is to achieve this by changing people's mind and fear by looking change as a positive means.
Why people resist change?
. Loss of control by senior management
2. Lack of skills and knowledge
3. Afraid of failure
4. Fears of lost of power and position
5. Uncontrollable situations
The Brand.com management should manage resistance of change by following procedure:
Information to all staffs (from bottom to top levels)
The management need to let everyone in the company know that change is important and to succeed in change has to bring all people together and work it out.
Education and communication
Training programmes should be provided to all employees. They need to learn new ways of working and experience on learning by themselves. E-learning can be adopted through the use of new business model. All staff can be trained on-line.
Participation and involvement
Collaboration can reduce opposition and encouraging commitment. It helps to reduce fear that individuals have on the impact of change. Every staff in the company should participate in the change programme.
Conclusion
In juxtaposition, it is important that TheBrand.com can transform from Internet presence to e-commerce presence, then looking at the benefits of e-business to implement the back-end systems. Lastly, TheBrand.com need to transform into B2B. In order to do that, TheBrand.com has to select the design the flexible systems and configuration that can accommodate future systems.
References
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3. IBM (2001) IBM iSeries 400 support [online] available at: < http://techsupport.services.ibm.com/server/support?view=iSeries > [accessed 25/04.02]
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5. IBM (2001) [online] available at: < > [accessed 25/04.02]
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