ECOM 190D Topics
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Back Office Integration & Telework

TEXTS:

Virtual Private Networking; Permutter, Bruce; Prentice Hall PTR; 2000

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I.   Virtual Private Networking

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A.    What we are studying. . .           

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B.     Review of Internetworking

II. Managing Enterprise Networks

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A.    Most enterprise networks are made up of a quilt of networking technologies, many of which are incompatible

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B.     Some networked applications have become hygiene

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C.     Enterprise Resource Planning (ERP),

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D.    PC networking, and even remote access.

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E.     This has increasingly opened the door to the outsourcing of these functions

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F.      The Enterprise Network

III.  Understanding the Internet

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A.    An internet is what is created when we implement a network built around a set of networking standards

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B.     A network is defined as a homogeneous transmission system over which systems can communicate using simple rules

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C.     The Internet is built around IP and links multiple networks

IV.   Defining VPN

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A.    A VPN is a communications network, built for the private use of the enterprise, over a shared public infrastructure.

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B.     There are two primary applications covered by this definition:

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C.     VPN: Shared Public Space

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D.    VPN: Other than IP?

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E.     VPN: Authentication and Encryption

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F.      VPNs: A Business Discussion

V.  E-Commerce Topics: Integration

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A.    Virtual Private Networking 2

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B.     Business Use of the Internet

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C.     The Rise of Extranets

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D.    Extranets and VPNs

VI.  Is the Internet Secure?

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A.    There have been a number of high-profile Internet break-ins and hacker attacks publicized in the news.

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B.     There is a perception that these well-publicized incidents represent only the tip of the iceberg.

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C.     It is felt that high profile companies shun the negative publicity associated with these attacks and suppress information relating to most incidents.

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D.    The Computer Emergency Response Team Coordination Center

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E.     Improved Security

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F.      Support for Improving Security

VII. Does Quality of Service (QoS) Exist on the Internet?

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A.    Quality of Service is the difference between First Class checkin at the airport and Economy Class

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B.     The airlines have QOS policies

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C.     The Internet does not yet have this but it is essential for effective VPN support for applications

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D.    Video and telephone traffic must go faster than batch data traffic

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E.     QOS is not here yet but . . .

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F.      A Short Introduction to Network Capacity

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G.    Fiber optics is wonderful for data. . .

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H.    Expanding US Bandwith Capacity

VIII.A Short Introduction to Network Outsourcing

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A.    When an organization uses a “business class” Internet Service Provider, they are essentially paying a group of very specialized and focused people to manage a particular business need, good Internet performance.

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B.     This concept of delegating activities that are not part of the “core competency” of the business is called outsourcing

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C.     This business practice gained prominence in the early 1990s, in Information Technology (IT) and non-IT contexts.

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D.    Logic of IT Outsourcing

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E.     The Problem of Small ISPs

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F.      Outsourced Network Services

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G.    Virtual Private Networking

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H.    Security E-commerce

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I.       VPN

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J.      Services

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K.     Internet Connectivity

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L.      E-mail

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M.    Fax & Telephony Services

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N.    Web Hosting

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O.    Another ISP Problem

IX. The Move to a WAN strategy

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A.    Originally businesses used private networks with leased circuits to connect facilities.

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B.     Frame Relay services became popular because the service provider now handled many of the topology, capacity planning, and routing issues for the customer.

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C.     The enterprise could be connected to the net-work via a single physical circuit, and the service provider could then provision virtual circuits to all of the other facilities.

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D.    VPN as Part of this Strategy

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X.                      E-Commerce Topics: Integration

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A.    Marketplace Business Models

XI.  What we are studying. . .         

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A.    Business integration

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B.     What are the new business models?

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C.     How do these models work?

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D.    How do we build a model?

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E.     What does this mean for E-commerce?

XII. Business Integration

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A.    This module is dealing with business integration and all of the elements that allow the new Internet based business to work in a virtual, telecommuting environment

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B.     Integration means building intranets and extranets to do business internally and externally.

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C.     New Business Models

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D.    Business Model Defined:

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E.     Business Model and Marketing Model:

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F.      How Do Business Models Work?

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G.    Value Chain Deconstruction

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H.    Value Chain Reconstruction

XIII.Business Models:

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A.    E-shops

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B.     E-procurement

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C.     E-malls

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D.    E-auctions

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E.     Virtual Communities

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F.      Collaboration Platforms

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G.    Third-party Marketplaces

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H.    Value Chain Integrators

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I.       Value Chain Service Providers

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J.      Information Brokerage and Trust Services

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K.     Conclusion

XIV.  E-Commerce Topics: Integration

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A.    Internal and External Business Structure and Summary Review

XV. What we are studying. . .         

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A.    Internet integration of business

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B.     Internal Business Structures

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C.     External Business Structure

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D.    Disinetermediation

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E.     The telecommuting/electronic business reality

XVI.  Internet Integration of Business

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A.    Telecommunting is one element of a major restructuring of business

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B.     The new foundation is internet integration with workers, internal departments and external vendors

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C.     This is based in deep penetration of Information Technology and IP data communications into business organizations

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D.    This is accelerating rapid and unclear changes to the way business is structured.

XVII.  The Traditional Value Chain

XVIII. Internal Business Structure

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A.    Introduction of the Internet as an informational and sales channel to customer creates change

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B.     Effective use of IT seems to produce a flattening of the organization

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C.     The ability to implement online purchasing at a departmental level is an example

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D.    This requires business process reengineering

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E.     This may require business scope redefinition

XIX.   The e-Business

XX.      The Internet as Sales Channel

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A.    Using the Internet as a sales channel requires the creation of new internal structures:

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B.     This may be structured within the existing organization or as a separate entitity

XXI. The External Organization 

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A.    The external changes are also accelerating

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B.     This takes the form of disintermediation and the growth of Value Network and Dynamic Markets

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C.     Disintermediation is the elimination of middlemen in the value chain and sales cycle.

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D.    Reintermediation is the creation of new intermediaries in those areas

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E.     Both things are happening in the external business organization.

XXII. Outsourcing Again

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A.    If you remember the development of VPN (Virtual Private Networks) is the technical basis of external integration.

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B.     This links traditional external business organizations in new ways:

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C.     Businesses need to cut costs and gain new skills

XXIII. Value Constellations

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A.    New outsourcing is driven by the need to gain skills outside the area of core competence

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B.     To cut costs in the face of e-commerce price pressure

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C.     The need to compete globally

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D.    This can be achieved in various ways through outsourcing

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E.     This requires major internal reorganization

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F.      Value constellations traditionally require trust, shared values and loyalty

XXIV.  Virtual Value Constellations

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A.    The nature of virtual value constellations is very dynamic and apparently superficial

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B.     This contradiction has yet to be worked out

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C.     One emerging solution to this is with lead brokering firms working through third party managed marketplaces

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D.    www.pacificebusiness.com is a Hawaii based example with which I am involved.

XXV.   Value Networks

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A.    Defined: A multienterprise network of relationships focused on integration of of information flows to exploit information and knowledge in the network for strategic business objectives

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B.     Value networks use shared information systems that support business processes across individual companies

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C.     This is a tight, highly integrated set of relationships based on information as the medium and ultimate value

XXVI.  Dynamic Market

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A.    Defined: A configuration that is a market mediated set of relationships focused on increasing flexibility and opportunity for strategic business objectives

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B.     These are loose market driven relationships driven by the need for quick time to market and the need to be flexible in a rapidly changing marketplace.

XXVII.  Problems with Dynamic Markets

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A.    The balance between Value Networks and Dynamic Markets is a tradeoff between short term and long term benefits

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B.     The roll of lead brokers or organizations will become more important as Dynamic Markets do not have strong branding or customer guarantees

XXVIII. The Trade-offs

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A.    Access to markets

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B.     Brand

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C.     Cost leadership

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D.    Time to market

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E.     Customer service and convenience

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F.      Customer loyalty

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G.    Network integration

XXIX.   Summary and Conclusion

These Topic Outlines cover the content of one 5 week Module in the ECOM Program.

Email for more information:

mmeyer@hawaii.edu

 

 
 
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