The future of business

The Future Isn’t Quite What It Was, But e-business is Growing Mightilye-Business Research CentersDirectors’ Forum16 November 2001Stuart FeldmanDirector, IBM Institute for Advanced CommerceThe Present and the Future•Much gloom and doom–E-commerce is “over”–Business has stopped investing in e-business –E-markets all died–It was just a fad. What’s the next thing?•Reality–B2C still healthy but actually booming–B2B growth enormous –and advantageous•Sales of IBM WebSphere (our basic e-business enabler) were up 75% in 3Q (Y to Y)–Marketplace software finding strong use in private exchanges and corporate procurement–Impact will grow for at least a decadeFastest Growing B2C Categories9/00($M)9/01($M)Change,Y to YVideo2680208%Health/Beauty56161170%Home/Garden3286169%Books121300148%Auctions173407135%Computer Software61131115Flowers/Cards/Gifts489088%Fitness/Sports Equipment305583%Clothing/Apparel27649479%Computer Hardware22638068%B2B example:IBM as e-business -2001•In 1H 2001, IBM sold $12.3 billion in goods and services via the Web•In 1H 2001, IBM handled an estimated 87 million customer transactions involving self-help services such as product information, installation and service information and software downloads•In procurement, IBM purchased $23 billion in goods and services via the Web and EDI. Web purchases now account for more than 50% of IBM's worldwide purchases of goods and services•Approximately 36% of employee training was conducted online.•From 1/1998 –6/2001 (3½ years), IBM's e-business processes resulted in more than $6 billion in cost avoidance E-Government and E-BusinessE-BusinessE-governmentE-governanceCitizenservicesInfrastructureE-CommerceForeignRelationsEmployeeServicesPartnerAlliancesEnterpriseResourcesCRMSCMlllProgress in e-business AdoptionPHASES•Basic: The business uses the Internet as a channel to reach new markets, improve customer service and support, or simply communicate•Integrated: Company looks to e-business to contain costs, streamline operations, improve productivity and integrate operations. This leads to a fundamental shift in business strategy and organizational culture •Advanced: The company outsources non-core operations; uses the Web to create online partnerships, adopt a new business model and adapt more rapidly to changing competitive dynamics01020304050607080preBasIntAdvUSEuropeJapanPhases of Public Excitement and Technical Challenges•B2C: storefront, images, payment, auction, authentication, privacy•Portals: content, collaboration•B2B: protocols, processes, robustness•e-Marketplaces: negotiation, services, databases•e-business: business processes, models, stability, inter-organizational federated computing•Pervasive e-commerce: scale, user experience, application and content adaptation•Service-Oriented Commerce: highly distributed computing, managementTECHNICALBandwidthComputing PowerStorage & ContentBusiness SoftwareInteractive SystemsIntelligent AgentsComputing ServicesSoftware EngineeringSOCIAL-LEGAL -ECONOMICNational BoundariesLabor MarketsAccountingJurisdictionCommunityCurrency TaxationFashionBUSINESSEnterprise BoundariesVirtual EnterprisesEconomic Sectors Bus. Relationships Bus. ProcessesBus. Models Details of Evolution are Impossible to PredictcomplexfeedbackloopseverywhereWelcome to the Firste-business Research Directors’ ForumResearch Activity in the Field•Now over 50 e-business Research Centers in the US alone–And many more elsewhere•New conferences, journals•Degrees proliferating–Some PhD–Many MBA, specialized Master’s•General recognition that virtually all businesses need to grapple with “e-”How Can We Help Each Other?•Ongoing awareness•Shared information•Access to publications•New publication and conference opportunities•Enhanced enthusiasm•Cooperating projects•Corporate and Government connections•Associations with specialized communities (geographic, technical, national, disciplinary)•Software and project assistance•Curriculum development and continual upgradeIBM IAC wants to help and participate –will make our web site and assistants available now.