The e -Commerce Phenomenon:

1. The e-Commerce Phenomenon: Where Does Higher Education Fit? Jenny Cobb, Manager Strategic Special Projects Vanderbilt University jenny.cobb@vanderbilt.edu CUMREC 2000

2. The e-business landscape Some critical assumptions and drivers for higher education

3. What is e-Business? • e-Business is a shorthand way of describing the integration of business strategies, processes and technologies “e-Business applications are those that enable and manage relationships between an enterprise, its functions and processes and those of its customer, suppliers, value chain, community or industry. These applications many not, themselves, be enterprisewide but are aimed at optimizing external relationships.” Source: Gartner Group

4. e-Business Components • e-Business encompasses • E-commerce (EC): Business to Business (B2B), Business to Consumer (B2C), Business to Education (B2E) • Customer Relationship Management (CRM) • Supply Chain Management (SCM) Supply Chain Planning (SCP) • Business Intelligence (BI) • Knowledge Management (KM) • Collaboration Technologies (CT) • Available to Promise (ATP) • more...

5. e-Business=EC+CRM+SCM+BI+KM+CT Supply Chain Management Customer Relationship Management “Virtual Partners” informal information sharing deals Business Partners Administration and operations Distribution channels Customers Potential customers / influencers BI, KM, and CT for external information Product and services creation Legally defined Enterprise Logistics and fulfillment Potential competitors Supply Chain Suppliers Marketing, sales and, service Industry workers Product and services creation Electronic Commerce Back Office Web Commerce Front Office Source: Gartner Group

6. Customer Relationship Management • CRM is the core activity of e-business • Emphasis on personalization • User profiles: explicit and implicit profiling • Collaborative filtering • Rules-based personalization • Provide a seamless customer experience to encourage customer retention and loyalty • Source of tailoring site presentation, one-to-one marketing and merchandising

7. What are the drivers for Higher Ed?

8. Growth of Technology Increasing Business Value 2000 - 2005 Transformation Additional Features: -SC optimization -CRM apps -Common platform -Industry-specific app engines -Functional apps -Customer -Real-time ATP -Advanced personalization $5M-$50M $500K-$5M 1998 - 2003 Transaction Additional Features: -e-commerce -EDI supports -Communities -SCP apps -ERP front end -Customer self-service $5K-$500K 1997 - 2000 Interaction Additional Features: -Intranet aps -Interactivity -Personalization -Basic Search -Linked Sites 1996 - 1999 Presence Features -Marketing information -Brochures Increasing Application Cost Source: Gartner Group

9. e-Growth of Everything The e-growth of ____________ over the next ___ years (fill in the blanks) *Web users *Connected Devices *B2B Commerce *Micro-markets in higher education *Online courses *Investment in the internet *Distance Learners *New e-businesses *B2C Services and revenue

10. The e-Business Phenomenon OK, OK….. We get the message!

11. How do you go forward from here? • Requires a shift in thinking about what we do and how we do it • Taking an e-business view of the world and articulating what business we are in • Re-inventing some aspects of our institution’s fuctions • Identifying those areas that are core to meeting your institutions customers / markets

12. e-Business Strategic Thinking • e-Business is a strategy, not an application • Strategic thinking is NOT the same thing as a strategic plan • A pre-cursor and provides guidance to the Business Process Redesign (BPR) process • An opportunity for education (what is possible) and a reality check (what is feasible) • A vehicle to address the cultural, political and organizational readiness

13. Identify Mandates • What are the things the entity “must do” fullfil its core mission • This requires understanding what the true nature of the business is…. • So what is the business of higher education?

14. Identify Mandates “The biggest danger is that that higher education may be the next railroad industry, which built bigger and better railroads decade after decade because that’s the business it thought it was in. The reality was that it was in the transportation industry, and it was nearly put out of business by airplanes. Colleges and universities are not in the campus business, but the education business” Arthur Levine, Columbia Teachers College

15. Identify Stakeholders • List the current and future stakeholders and describe why they are stakeholders • Think about “markets” as stakeholders • life-long learners • traditional 18 - 22 year old residential • adult education • corporate education/partnerships • global opportunities • dispersed faculty

16. Evaluate the External Environment • To identify opportunities and threats • Identify current forces and emerging trends • political • economic • social • technology • Clients, customers and payers • Competitors • Collaborators

17. Forces and Trends • Economic landscape • less qualified high school graduates in the future • shrinking research dollars • more competition for alumni giving • change in customer needs - demand for distance education • Return on investment • new revenue streams are possible • corporate alliances / consortia • value of new web-enabled services

18. Clients, Customers and Payers • New service and products expectations • Services tailored to customer profile • alumni • students • faculty and staff • community • prospective students • Making the products you already sell more accessible • Changing customer demand

19. Education Delivery Models • “just-in-case” education, in which we expect students to complete a degree program long before they need knowledge • “just-in-time” educations, which education is sought by a person when they need it through non-degree programs • “just-for-you” education in which programs are carefully tailored for to meet the specific life-long learing requirements of particular students.

20. Competitors and Collaborators • Aggressive higher education marketplace • the challenge of maintaining market share • for-profit institutions and virtual universities threaten the college and university monopoly on education • virtual competition is unencumbered by tradition bricks and mortar • some partners will be competitors and collaborators • evaluation of ASP and BSP

21. Evaluate Internal Evironment • Resources • people • data • economic • competencies • Present strategy (overall and by function) • Performance (results, history)

22. Strategic Issues Emerge • Develop a description of the organization in the future • Create a vision of success • Use the “Success Scenario” as a guiding principle for the detailed business process redesign work • Identify practical alternatives, barriers, major proposals, actions, work program

23. Management Issues • Establishing executive advocacy and understanding • e-business: a technical environment, an application, a process, and a culture • Ownership, accountability, and communication • New funding models to grow e-business • The business of higher education: wholistic view of the academy and administration

24. Management Issues • New staffing models and central IT • Internal audit requirements • Security for ubiquitous computing • Optimizing customer relationships • Who is the customer? • What relationship(s) add value? • Looking for the competitive advantage of e-business in the context of your institution

25. Challenge in the Short Term • Begin thinking like an e-business • As you move forward with “traditional projects” incoporate an e-business view of the world • Reflect on our organizations from an e-business point of view • value-chain • core functions

26. Just when you thought it was safe... e-Education is emerging as a recognized application of e-business strategies

27. What is e-Business e-Education? • e-Business e-Education is a shorthand way of describing the integration of business strategies, processes and technologies “e-Business e-Education applications are those that enable and manage relationships between an enterprise, its functions and processes and those of its customer, suppliers, value chain, community or industry. These applications many not, themselves, be enterprisewide but are aimed at optimizing external relationships.” Source: Cobb with help from Gartner Group

28. What are the e-Education Drivers • Education is now an economic issue - the knowledge / learning society • Customer needs and demands for different delivery models • Education delivery no longer constrained by the limitations of brinks and mortar institutions • The potential ROI • Access to investment capital

29. e-Education “The next big killer application for the Internet is going to be education. Education over the Internet is going to be so big it is going to make e-mail usage look like a rounding error” John Chambers, CEO of Cisco Systems Inc.,

30. Long Term Challenges • Becoming an e-business versus doing e-business • Transforming education though IT will require new business models • New business models will transform the “organization” • no longer a single entity • an extended network core functions, market-focused business units, shared support units • customers, suppliers, collaborators, BSPs

31. What is an e-Organization Look? • The transformation to an e-org is taking place along seven key dimensions • Organizational structure • Leadership • People & Culture • Coherence • Knowledge • Alliances • Governance

32. Organization Structure Hierachical Command-and-control Leadership Selected “stars” step above Leaders set agendas Leaders force change Organization Structure Centerless, networked Flexible structure that is easily modified Leadership Everyone is a leader Leaders create environment for success Leaders create capacity for change e-Org Dimensions 1990’s e-Org

33. People & Culture Long term rewards Vertical decision-making Individuals and small teams rewarded Coherence hard-wired into processes Internal relevance People & Culture “Own your own career” mentality Delegated authority Collaboration expected and rewarded Coherance Embedded vision Impact projected externally e-Org Dimensions 1990’s e-Org

34. Knowledge Focused on internal processes Individualistic Alliances Compliment current gaps Ally with distant partners Knowledge Focused on customers Institutional Alliances Create new value and outsource uncompetitive services Ally with competitors, customers and suppliers e-Org Dimensions 1990’s e-Org

35. Governance Internally focuse Top down Governance Internal and external focus Distributed e-Org Dimensions 1990’s e-Org Goal: flexible, nimble, decentralized, team- and alliance-based organization

36. Challenge in the Short Term • Begin thinking like an e-business • As you move forward with “traditional projects” incoporate and e-business view of the world • Reflect on our organizations from an e-business point of view • value-chain • core functions • Begin to chart your path to an e-org orientation - starting at your back door

37. The e-Commerce Phenomenon: Where Does Higher Education Fit? Closing thoughts

38. Closing Thoughts No one can buy an e-business package - not now anyway - because e-business is not simply about automating processes or implementing application software, or even about process integration or re-engineering. The best way to think about e-business is that it is a shorthand method of describing what happens when enterprise management redefines its role in an industry and an economic environment. Source: Gartner Group

39. e-BusinessA Window of Opportunity

40. The e-Commerce Phenomenon: Where Does Higher Education Fit?