Introducing e-Business to the
Curriculum
Ned C. Hill
Dean, Marriott School
Brigham Young University
WACSB Conference, October 17, 2000
marriottschool.byu.edu
Outline
• Overview of e-business
– Economic forces
– Definitions
– Influence of e-business on the curriculum
– Examples
• Models for bringing e-business into the curriculum
• e-business @ BYU
• Side-note: accreditation and the Internet
• Panel discussion
e-Business Changes...
• Information flows
• Internal and external processes
• Relationships
• Power
BUT, it does not change need for…
• Quality products
• Excellent service
• Cost effective delivery
• Valued relationships
Time Required to Download the 32 Volume
New Encyclopedia Britannica
• 1200 bps modem……………………..… 28 days
• 9600 bps modem………………….…… 3.5 days
• 28.8 Kb modem……………………….. 28 hours
• Basic Rate ISDN…………..……….… 6.3 hours
• T-1 line………………….……….…. 31 minutes
• T-3 line……………………………….. 1 minute
• Optical Fiber (OC-3)………………. 17 seconds
• Optical Fiber (OC-12)…………….. 4.7 seconds
• Optical Fiber (new technology) .005 second
Paper vs. Paperless Paradigms
Costs of...
Labor
Paper
Building materials
Land
Costs of...
Computer power
Telecommunications
Consequences
Costs
Paper Paradigm
Time
Paperless Paradigm
Transactions in the Paper Paradigm
Seller
Mail Mail
Banking
Carrier System
Mail
Mail Mail
Buyer
Keying in the Paper Paradigm
Seller’s Computer System
Keying Keying Keying
Postal System
Keying Keying Keying
Buyer’s Computer System
What’s Wrong with the Paper Paradigm?
• Labor intensive
• Slow
• Error prone
• Uncertain
• Excessive inventory (and cash)
• Bottom Line: IT’S EXPENSIVE
What Can We Do?
Option 1: Make paper work even harder
Option 2: Replace the paper paradigm
Definitions of e-Business
Simple: “The selling of products and services
using the Internet.”
More General: The use of computer and
communication technology to facilitate
the information exchange between
parties to a transaction.
Types of e-Business Transactions
• Paperless:
– Application to application
• Electronic data interchange (EDI)
• Financial EDI (firm to bank)
• File transfer
– Manual to application
• Web applications
• Electronic order entry
• E-mail
• Financial service delivery (e.g., E-Trade)
Types of e-Business Transactions
• Physical media assisted by computers:
– Facsimile transmission
– MICR, OCR, ICR
– Bar coding
– RF
Electronics to Paper
EDI, FEDI, FTP All
Electronic
Internet, E-mail, E-trade
MICR, OCR, ICR, Bar Coding
FAX
All
Traditional Paper Transactions Paper
Transaction with the Paperless Paradigm
Seller
Bill of Lading
Payment and Remittance Advice
Request for Quote
Purchase Order
Quote
Carrier Banking
System
Goods
Buyer
Keying in a Paperless Paradigm
Seller’s Computer System
Translation Translation Translation
Internet or Other Network
P.O.. Invoice RA
Translation Translation Translation
Buyer’s Computer System
Benefits of the Paperless Paradigm
• Lower personnel costs
• Reduced error rates
• Faster cycle time
• Improved business relationships
• Reduced inventory
• Fewer stock-outs
• Reduced paper handling costs
• Faster payments
• Better control over information
Size of E-Business Market
180
B2C
C2B
135 C2C
B2B
633 5.5
Billions of dollars, projected for 2003
eBusiness Impacts Everything
HR
Supply Chain Finance
Systems Accounting
eBusiness
Operations Marketing
Strategy
Example 1: Bergen Brunswig
Paper System
Bergen Brunswig
Manual Processing
Order
Pharmacist
Example 1: Bergen Brunswig
e-Business System
Bergen Brunswig
Automated Processing
Capture bar code on shelf label
PC consolidates entire order
Order
Order transmitted over Internet
Warehouse is automated
Delivery is within 5 hours
Pharmacist
Example 1: Bergen Brunswig
What Changed?
• Sales function
– Role of salesperson
– Information channel
• Order fulfillment processes
– Manual to automated
• HR focus
– Compensation issues
– Hiring & training
• Customer relationships
– Responsibility for order initiation/errors
– Service level
Example 2: Chrysler
Vendor Relationships under e-Business
Supplier
e-Advanced Ship Not.
e-Material Release
Purchase Order
e-Delivery Order
Chrysler
Example 2: Chrysler
• Inventory management
– Just-in-time possible
• Invoiceless pay (“Evaluated Receipt Settlement”)
• Quality control moved back to suppier
• Close cooperation necessary
• Tolerance for errors is much lower
• Result?
Inventory Reduced by $1,000,000,000
Evolution of e-Marketplaces
e-Brochure
1994
e-Catalog
Selling
1996
e-Procurement
Buying
1998
e-Marketplace
2000
Example 3: e-Marketplaces
Internet-based Marketplace
Buyer Seller
Buyer Automated Seller
Matching
Rules
Buyer Seller
Record keeping, reporting, etc.
Buyer Seller
Banking Regulatory
Agencies
How to Help Faculty Get up to Speed
• Offer e-business seminars for faculty
• Send them to e-business conferences
• Provide research dollars
• Create an e-business library
• Acquire data bases
• Involve them in executive education
• Team non-e-business with e-business faculty
• Build e-business activity into reward structure
Activities for Students
• Web design--helping us re-design our e-business site
• Research projects with faculty
– Wireless communications
– Process re-engineering
– Distance education
– Internet research
• Field studies (consulting projects)
• Conferences
– e-Business Day (speakers, demos, panels, etc.)
– Spring e-Business Conference
Introducing e-Business to the Curriculum
• Separate courses
– Easier to transition--don’t have to change
other classes
– Lots of new material to cover
• Integrate e-business into existing courses
– More faculty have to upgrade
– Better for students in the long run
Will “e-business” become just “business”?
General Course Map for eBusiness
Application to Functional Areas:
Finance, Marketing, Operations, HR, Government, etc.
Enter Overview Strategy
of e-Business and e-Business
Foundation Technologies: Networking, Data Bases, Programming
Graduate Program at BYU
Special Brand Mgmt Internet Treasury Mgmt. Lecture
Topics and e-Business Marketing & e-Business Series
Functional Existing New Existing New
areas can
experiment
here
Enter Introduction to Strategy
e-Business and e-Business
Existing New
Networking Database e-Businsess Application
Management Development
Existing Existing Existing
Undergraduate Program at BYU
• Introduction to e-Business
– Module in Jr. Accounting Core--
e-Business:Principles and Strategies for
Accountants, Glover, Liddle, Prawitt, Prentice Hall
– Will be adapted to Business Management core
• Infrastructure Courses
– Internet programming
– Networking
– Internet applications
What Others are Doing
• Maryland--no track, but e-Business infused across the
curriculum (17 courses)
• Penn State--e-Business track with 4 courses
• Notre Dame--2 e-Business tracks (e-consulting and e-
entrepreneurship) with 2-3 courses in each
• Babson--5 separate new graduate degrees in e-
Business
• Georgia State--Global e-Commerce Masters in
partnership with 5 European universities (15 month
program delivered largely through Internet)
Financing e-Business at BYU
The Kevin and Debra Rollins Center for e-Business@BYU
Faculty Director:
Professor Owen Cherrington
Faculty Curriculum Committee
Professor Scott Sampson
Advisory Committee:
Representatives from Industry
Student Teams Faculty Members
Field Studies, Web Design,
Activities, Research Projects
$3 M plus matching opportunity for $9 M additional
Funding Used for:
• Scholarships
• Faculty fellowships
• Faculty professorships
• Research support (faculty and students)
• Faculty development
• Curriculum development
• Hardware/software
Additional Funding Sources:
Leveraging through Partnerships
• Dell -- laptops for faculty and students (purchase and service)
• NetDocuments -- homework submission, document sharing
• Trade.com -- portfolio management (real and simulated) and
competitions
• IAccess -- valuing start-ups (students and service to
community)
• Blackboard.com -- course syllabi
• OmniWhere -- fax, e-mail, voice-mail service through the
Internet
• Web design company -- original design of Marriott School web
site
• IBM -- speakers, research projects, curriculum sharing
How Can You Get Started?
• Learn about e-business
• Form a faculty committee to design
strategy for curriculum and faculty
development
• Form partnerships with local e-business
firms for funding, advice, internships
and employment
• Others?
References on e-Business
• Evans and Wurster, Blown to Bits: How the New
Economics of Information Transforms Strategy, Harvard
Business School Press, 2000
• Tapscott, et al, Digital Capital: Harnessing the Power of
Business Webs, McGraw Hill, 2000
• Shapiro and Varian, Information Rules: A Strategy Guide
to the Network Economy, Harvard Business School Press,
1999
• Kalakota and Robinson, e-Business: Roadmap for
Success, Addison Wesley, 1999
• Naisbitt, High Tech, High Touch, Broadway Books, 1999
• Friedman, The Lexus and the Olive Tree, Anchor Books,
2000
Using e-Business within the University
• Applications -- Internet
• Course Registration -- Internet
• Purchase of Supplies -- Internet
• Phone Bills -- EDI
• Grade Transcripts -- EDI
• Travel Arrangements -- Internet
• Alumni Relations
– Publications -- Internet
– Communications -- e-Mail
• Internal Communications -- MS Outlook
• Correspondence Courses -- Internet/CD Rom
Pioneering Online Accreditation
AACSB
&
BYU
Advantages
1. Online documentation is easily updateable
2. Online accreditation can take advantage of the
informational resources already available on the website
3. Online accreditation facilitates the trend toward
continuous self-analysis
4. Databases allow reviewers to “drill-down” through
content to find the information they want most
A Word on Security
1. Web server is physically protected
behind locked doors in an alarmed room
2. Databases are stored in a password-protected format
3. All transactions are sent across the web with 128 bit
public-private key encryption
4. Attempts to access the pages directly will bounce
unauthorized users immediately to the login screen
Main Menu
Faculty Productivity Reports
Dynamically-created Publications Report
Supporting Detail for Journal Publications
Automatic Link to Faculty Profiles
Thank You
marriottschool.byu.edu
Rollins e-Business Center