Lecture: E-Business & Internet Applications, summer term 2017 HNU University of Applied Sciences

1. e-Business & Internet
Applications
summer term 2017
Frank Wiedemann, MBA

2. Introduction e-Business
& Digital Transformation
Frank Wiedemann, eMBA
Lecture: e-Business & Internet Applications, summer term 2017
HNU University of Applied Sciences
Neu-Ulm, 24/03/2017

3. › Personal Introduction Frank Wiedemann
› Since 2016 Chief Sales & Marketing Officer at mission-one GmbH
› 2013 – 2016 CEO NPG Digital
› 2011 – 2013 Head Online Business Development, Swisscom Schweiz AG
› 2007 – 2011 Digitals Strategy Consultant, various Online Agencies
› eMBA – Study Strategic Information Management, HNU
› Diploma – Study Business Administration, HNU
› Banker

4. e-Business Definition
„E-Business (electronic business) is, in ist simplest form, the conduct of business on
the Internet. It is a more generic term than eCommerce because it refers to not only
buying and selling but also serving customers, empowering internal processes an
collaborating with business partner. It therefore also impacts management,
marketing and sales operations, and legal aspects of operating a firms business“
In 1997, IBM was one of the first companys who used the term when they launched
a campaign built arroud the term e-business.

5. e-Business Definition
› Content delineation e-business vs. e-commerce
E-Business
E-Commerce
E-Business
Business
Intelligence
Customer
Relationship
Management
Supply Chain
Management
Enterprice
Resource
Management
E-Commerce
Online
Activities
between
Businesses
Collaboration
Electronic
transfer
within firm
includs

6. 22/02/17 10:45 pm
source:http://www.internetlivestats.com/

7. Digital Evolution
source: Embracing the Internet of Everything To Capture Your Share of $14.4 Trillion, CISCO 2013

8. Internet of Things (IoT) –
Internet of Everything
number of
connected
devices
worldwide from
2012 to 2020
(in billions)
source: https://www.statista.com/statistics/471264/iot-number-of-connected-devices-worldwide/
Global
Population

9. The Internet of Things has the Power to
Revolutionize Everything … smart Home
Source: https://www.11880-elektriker.com/ratgeber/hausautomation/smart-home-systeme

10. The Internet of Things has the Power to
Revolutionize Everything
Source: https://www.produktion.de/video/smart-factory-audi-schafft-das-fliessband-ab-290.html
… smart Factory

11. … smart City
Source: https://www.linkedin.com/pulse/smart-city-blueprint-confluence-dynamic-master-plan-chakrabarti

12. General development - it just starts!
“We are currently at the beginning of a transformation phase. The DNA of our
customers is changing fundamentally.”
source: PwC: Oktober 2013, Analysis Swiss population

13. ...the key to digital transformation is re-envisioning
and driving change in how the company operates.
That‘s a management and people challange, not just
a technology one.
Capgemini Consulting, Digital Transformation Report
>>
<<

14. Digital Business Models
source: Elgar Fleisch Professor of Information and Technology Management ETH Zurich / University of St. Gallen
Platform Model
(Network effects)
Transaction
Platforms
Innovation
Model
(digital technology)
Scale Model
(digital great
advantage)
IoT Data Model
(connection digital
an physical world)
Digital charged
Physical Products
Sensor Data as a
Service
Remote
Monitoring
Digital
Add-on
Physical
Freemium
Object Self
Service
Innovation
Platforms
Free Freemium
Subscription
On-Demand
Sharing
Marketplace
Premium
Ecosystem
1
2
3
4

15. Internet of Things Value Chain
source: Telecomcircle, https://www.linkedin.com/pulse/internet-things-business-models-mohit-agrawal

16. Platform Disruption – How it Works
› Platforms bring together producers and consumers on a large
scale as intermediaries. Consumer reduce their transaction
costs (e.g. search, negotiation, transaction), the producers can
easily find customers, but they have to surrender part of their
profit margin to the platform operator.
› Platforms are today the dominant business model of the
digital world

17. The Top
Online
Platforms
didn´t Disrupt
Traditional
Businesses
source: https://hbr.org/2016/09/the-businesses-that-platforms-are-actually-disrupting / David S. Evans and Richard
Schmalensee, based on data from PwC, Alexa, CB insights
In most cases, victim was
another matchmaker of
consumers and services or
products

18. Overview basic e-Business Models
The Brokerage Model
(B2B, B2C)
The Utility Model
(B2C)
The Advertising
Model (B2C)
The Infomediary
Model
(B2B)
The Merchant Model
(B2C)
The Manufacturer
Model (B2B)
The Community
Model (B2C, B2B)
The Subscription
Model (B2C)
The Affiliate Model
(B2C)
source: http://digitalenterprise.org/models/models.html

19. Overview basic e-Business Models
The Brokerage Model
(B2B, B2C)
The Utility Model
(B2C)
The Advertising
Model (B2C)
Infomediary
(B2B)
The Merchant Model
(B2C)
The Manufactor
Model (B2B)
The Community
Model (B2C, B2B)
The Subscription
Model (B2C)
The Affiliate Model
(B2C)
source:http://digitalenterprise.org/models/models.html

20. Overview basic e-Business Models
The Brokerage Model
(B2B, B2C)
The Utility Model
(B2C)
The Advertising
Model (B2C)
Infomediary
(B2B)
The Merchant Model
(B2C)
The Manufactor
Model (B2B)
The Community
Model (B2C, B2B)
The Subscription
Model (B2C)
The Affiliate Model
(B2C)
source: http://digitalenterprise.org/models/models.html

21. Overview basic e-Business Models
The Brokerage Model
(B2B, B2C)
The Utility Model
(B2C)
The Advertising
Model (B2C)
Infomediary
(B2B)
The Merchant Model
(B2C)
The Manufactor
Model (B2B)
The Community
Model (B2C, B2B)
The Subscription
Model (B2C)
The Affiliate Model
(B2C)
source:http://digitalenterprise.org/models/models.html

22. Overview basic e-Business Models
The Brokerage Model
(B2B, B2C)
The Utility Model
(B2C)
The Advertising
Model (B2C)
Infomediary
(B2B)
The Merchant Model
(B2C)
The Manufactor
Model (B2B)
The Community
Model (B2C, B2B)
The Subscription
Model (B2C)
The Affiliate Model
(B2C)
source:http://digitalenterprise.org/models/models.html

23. Overview basic e-Business Models
The Brokerage Model
(B2B, B2C)
The Utility Model
(B2C)
The Advertising
Model (B2C)
Infomediary
(B2B)
The Merchant Model
(B2C)
The Manufactor
Model (B2B)
The Community
Model (B2C, B2B)
The Subscription
Model (B2C)
The Affiliate Model
(B2C)
source:http://digitalenterprise.org/models/models.html

24. Overview basic e-Business Models
The Brokerage Model
(B2B, B2C)
The Utility Model
(B2C)
The Advertising
Model (B2C)
Infomediary
(B2B)
The Merchant Model
(B2C)
The Manufactor
Model (B2B)
The Community
Model (B2C, B2B)
The Subscription
Model (B2C)
The Affiliate Model
(B2C)
source:http://digitalenterprise.org/models/models.html

25. Overview basic e-Business Models
The Brokerage Model
(B2B, B2C)
The Utility Model
(B2C)
The Advertising
Model (B2C)
Infomediary
(B2B)
The Merchant Model
(B2C)
The Manufactor
Model (B2B)
The Community
Model (B2C, B2B)
The Subscription
Model (B2C)
The Affiliate Model
(B2C)
source:http://digitalenterprise.org/models/models.html

26. Overview basic e-Business Models
The Brokerage Model
(B2B, B2C)
The Utility Model
(B2C)
The Advertising
Model (B2C)
Infomediary
(B2B)
The Merchant Model
(B2C)
The Manufactor
Model (B2B)
The Community
Model (B2C, B2B)
The Subscription
Model (B2C)
The Affiliate Model
(B2C)
source:http://digitalenterprise.org/models/models.html

27. Overview basic e-Business Models
The Brokerage Model
(B2B, B2C)
The Utility Model
(B2C)
The Advertising
Model (B2C)
Infomediary
(B2B)
The Merchant Model
(B2C)
The Manufactor
Model (B2B)
The Community
Model (B2C, B2B)
The Subscription
Model (B2C)
The Affiliate Model
(B2C)
source: http://digitalenterprise.org/models/models.html

28. The web attacks traditional ways of doing
things and elites, and this is very
uncomfortable for traditional businesses
to deal with.
Sir Martin Sorrell, CEO, WPP Group
>>
<<

29. Disruption Definition
Disruptive innovation describes a process by which a
product or service takes root initially in simple applications
at the bottom of a market and then relentlessly moves up
market, eventually displacing established competitors.
Prof. Clayton Christensen, Harvard Business School
source: http://www.claytonchristensen.com/
>>
<<

30. Disruption Examples
› Any Ideas?
› Car  Horse carriage
› Electric locomotive  Steam locomotive
› Computer  Typewriter
› Mobile Phone  Smart Phone
› renewable energy  Nuclear energy
› iTunes  Compact Disc

31. The Innovator's Dilemma
source: Replication from „The Innovator´s Dilemma“ by Clayton Christensen
Sustaining Technology
Disruptive Technology
High End Customer
Low End Customer
Time
Performance

32. None of these six Companies existed
Twenty Years ago
› The world´s largest taxi company owns no vehicles
› The largest accommodation provider owns no real estate
› The most popular media provider creates no content
› The most valuable photo company sells no cameras
› The fastest growing television network lays no cables
› The most valuable retailer has no inventory
Uber now has a $66
billion valuation
Alibaba logged a record $14.3
billion in sales on Singles' Day

33. Most Valuable Companies in the
Fortune 500
COMPANY INDUSTRY
MARKET Value
$Bil
1 Apple Computers, Office Equipment 534
2 Alphabet Internet Services and Retailing 507
3 Microsoft Computer Software 413
4 Exxon Mobil Petroleum Refining 326
5 Facebook Internet Services and Retailing 321
6 Berkshire Hathaway Insurance: Property and Casualty (Stock) 312
7 Johnson & Johnson Pharmaceuticals 288
8 General Electric Diversified Financials 271
9 Amazon.com Internet Services and Retailing 250
10 Wells Fargo Commercial Banks 242
source: S&P Capital IQ 2016/2

34. Disruption hurts
17.5 Billion SMS daily
3.5 Billion Users
70/% profit
margin per SMS
32 SMS per user per day
7 Billion SMS per
year in switzerland
source: swisscom PPT

35. Disruption hurts
Disrupt yourself before someone
else does.
Otherwise it could hurt you!

36. We have moved from a world
where the big eat the small
to a world where the fast eat the slow
Klaus Schwab, President of the Davos Economic Forum
>>
<<

37. Conversations on Digital Tranformation
at Microsoft's Envision 2016
source: Microsoft , blogs.microsoft.com

38. Digital Maturity Matrix
Digitalintensity
Transformation management intensity
Fashionistas
> Many advanced digital features (such as social,
mobile) in silos
> No overarching vision
> Underdeveloped coordination
> Digital culture may exist in silos
Beginners
> Management skeptical of the business value of
advanced digital technologies
> May carry out some experimentation
> Immature digital culture
Digirati
> Strong overarching digital vision
> Good governance
> Many digital initiatives generating business
value in measurable ways
> Strong Digital culture
Conservatives
> Overarching digital vision exists, but may be
underdeveloped
> Few advanced digital features, though
traditional digital capabilities many be mature
> Strong digital governance across silos
> Taking active steps to build digital skills and
culture
source: MIT Center for Digital Business and Capgemini Consulting

39. Digital Maturity Matrix
Digitalintensity
Transformation management intensity
> Fashionistas
> Beginners
> Digirati
> Conservatives
Media
Finance
Insurance
Travel
Telco
Google
Industry
Pharmacy
source: MIT Center for Digital Business and Capgemini Consulting
Facebook
Newsp.

40. Opportunities and advantages of digital
transformation
> Customer
Insights
> Customer
Experience
Customer Product Processes
Digital Business Transformation
> New Products
Services
> New Tecnology > Cost & time
savings
> increase of
productivity
> Professional
web controlling
enables the
analysis of
usage behavior
and generation
of insights
> Cross-media
customer
experiences
through
mobile, social
and online
platforms
> New digital
services and
products, e.g.
apps offer
added value for
customers
> New
technologies
enable
advanced
services such as
apps or digital
signage
terminals
> Reduced sales,
delivery and
service costs
for fast time to
market
> Increase
process and
employee
productivity
through the
use of digital
applications
External Chances Internal Opportunities
source: TWT Consulting

41. Four ways digital transformation drives
business value
source: McKinsey analysis
„Digital can
reshape every
aspect of the
modern
enterprise“

42. Digital
Service Unit
Digital
Business
Creation
Digital Strategy
&
Transformation
Digital Factory
Digital
Innovation
Digital Skills
Digital
Monetization
Roles and Key Functions of a DSU
source: Capgemini Consulting, Digital Transformation Report 2013
> Digital Services Unit as a Tool to
Accelerate Digital Transformation
> A Digital Services Unit (DSU) is a
centralized entity that delivers a
broad catalog of digital services
and coordinates efforts across
various units

43. Digital
Service Unit
Digital
Business
Creation
Digital Strategy
&
Transformation
Digital Factory
Digital
Innovation
Digital Skills
Digital
Monetization
Roles and key functions of a DSU
source: Capgemini Consulting, Digital Transformation Report 2013
> Focuses on ensuring seamless
Digital Transformation by aligning
marketing, Finance, HR,
Operations, Branding functions
with all digital channels.

44. Digital
Service Unit
Digital
Business
Creation
Digital Strategy
&
Transformation
Digital Factory
Digital
Innovation
Digital Skills
Digital
Monetization
Roles and key functions of a DSU
source: Capgemini Consulting, Digital Transformation Report 2013
> Key objective of DSU is to give
back to the brands and markets,
the data and intelligence on their
consumers Facilitates
collaboration across various
resources in the organization

45. Digital
Service Unit
Digital
Business
Creation
Digital Strategy
&
Transformation
Digital Factory
Digital
Innovation
Digital Skills
Digital
Monetization
Roles and key functions of a DSU
source: Capgemini Consulting, Digital Transformation Report 2013
> Promotes online innovation and
establishes a culture of ideation
and collaboration in the
company

46. Digital
Service Unit
Digital
Business
Creation
Digital Strategy
&
Transformation
Digital Factory
Digital
Innovation
Digital Skills
Digital
Monetization
Roles and key functions of a DSU
source: Capgemini Consulting, Digital Transformation Report 2013
> Enhances digital skills and
capabilities across the
organization Avoids silos of
digital capabilities

47. Digital
Service Unit
Digital
Business
Creation
Digital Strategy
&
Transformation
Digital Factory
Digital
Innovation
Digital Skills
Digital
Monetization
Roles and key functions of a DSU
source: Capgemini Consulting, Digital Transformation Report 2013
> Evaluates new platforms such as
e-commerce, social media, viral
video etc., to create new
revenue generating avenues and
drive sales

48. Digital
Service Unit
Digital
Business
Creation
Digital Strategy
&
Transformation
Digital Factory
Digital
Innovation
Digital Skills
Digital
Monetization
Roles and key functions of a DSU
source: Capgemini Consulting, Digital Transformation Report 2013
> Develops IT services to support
internal and external clients such
as marketing, sales, customers
etc. Develops online content to
facilitate new business
opportunities

49. Alternative Business Transformation
Pathways
source: Deloitte analysis /Deloitte University Press

50. source: McKinsey analysis
Six Steps Help get the Digital
Transformation going

51. Thank You