CITM360 Establishing an e-Business Operation

1. CITM360Establishing an e-Business Operation Steven A. Gedeon, PhD, MBA, PEng s2gedeon@ryerson.ca ITM360 – Week 1

2. This Week’s Agenda • Introductions • Why Take This Course? • Administrative Stuff • Prerequisites • Class norms • Introduction to the Course • Objectives • Course Outline • e-Business Discussion • What is e-Business? • Key e-Business Ideas

3. Steven A. Gedeon, BS, MS, PhD, MBA, PE, PEng • CEO, 3DNA Corp.(3D Graphics, New Media Technology, Shareware Product) • 6 Rounds Financing, Restructuring, 1M Users, 100 Articles, Book, Fan Sites, 130 Countries, Global Clients • Dir Tech, Com & New Ventures, Jaycor ($100M Corp VC in High Tech) • Startup, Primaxis Tech Ventures (Royal Bank Seed Capital VC Firm) • CEO, Ashurst Tech(TSE-listed, Commercialize Soviet Top-Secret Military Tech) • $60M Raised, 26 Subsidiaries in 15 Countries, Turnaround Situation • VP BizDev, World Wise Tech (CDNX-listed VC and Operations Management Firm) • Pres/GM/VP of Mentalogic Systems, Impel Power, General Cybernetics • CTO, HoloFX (3D Display Technology and Content Management) • VP BizDev, Lynx Systems (IT Solutions) • VP Corp Finance, Space Database (Application Service Provider) • VP Sales/Marketing, Toronto MicroElectronics (Single Board Computers) • Consultant, TEMAV Nuova Samim (Semiconductors, Superconduct, Composites…) • President, Intelliaction(Management Consult, VC Due Dil, Expert Witness)

4. Steven A. Gedeon, BS, MS, PhD, MBA, PE, PEng • Started Up Many Companies and VC Firms • Written or Reviewed 100’s of Business Plans • Broad Technology Background with Diverse Management and Financing Experiences • Judge for Ryerson’s Standard Broadcasting Business Plan Competition ($25,000 prize) • Board of Directors of CEO Fusion Center and AceTech • Want to Make this Course Relevant to You • Develop Core Skills • Real Input into Real Plans

5. Class Introductions • Name • Areas of Interest/Specialization/Business Ideas • Do you have a Real Company you Want to Form? • Skills You Can Contribute to a Team • Issues Related to Choosing a Team • Nights Available, Location, Grade Expectations • Expectation from this Course • What would you be interested in learning the most? • Specific Aspects of Starting Up a Company • Raising Money • Business Planning Issues • Specific e-Business Applications or Trends

6. Why Take This Course? • All Knowledge Worker Jobs Require Entrepreneurial and Intrapreneurial Skills that are Key to Innovation • (Virtually) All Business is eBusiness • All Business Decisions Require: • Analysis of the Data (Getting Facts, Research Skills) • Synthesis of the Key Issues, Developing Strategy • Planning (Setting Goals, Articulating Actions, Roles & Responsibilities, Integration) • Justifying the Return on Investment (ROI) • Integration of All Your Other Courses • Core Management Skill Development Dr. Steven A. Gedeon sg@intelliaction.com

7. Prerequisites • (C)ACC 100 • (C)MKT100 • (C)MKT530 (Internet Marketing) • (C)ITM350 (The Concepts of eBusiness) • If you have not taken these you should drop the course • If you are NOW taking (C)MKT530, you are OK • (C)MGT550 (B2B eCommerce) and (C)RMG910 (Virtual Retailing) are recommended for eBusiness Minor

8. Expected Knowledge • Spreadsheets, Financial Statements • Power Point, Presentation Ability • Documents, Quality Formatting Ability • Sophisticated Knowledge of the Internet and eBusiness in General • Core Business and Marketing Disciplines • Ryerson Academic Policies Dr. Steven A. Gedeon sg@intelliaction.com

9. Class Norms • Please turn off cell phones and do not use other wireless devices in class (e.g. Blackberry, text messaging) • One person talks at a time • If you do not intend to pay attention to the lecture, please do not attend • Contribute in class and add value: • Prepare and share thoughts and ideas • Debate and challenge what you hear and read • Enjoy Yourself

10. Course Objectives • To understand the steps needed to take an eBusiness project from conception to implementation. • To learn how basic business functions (such as finance, marketing, sales, manufacturing, distribution and customer service) must be addressed in developing an eBusiness plan. • To examine specific business concepts and plans of real-life eBusiness cases to learn key success factors and likely problems. • To identify how e-Business is used in a corporate environment and evaluate the impact of e-business applications on the corporate performance. • To develop individual and group skills in developing and presenting business proposals.

11. Concept to Implementation • Incorporation Issues • Organizational Issues • Board of Directors, Advisory Board • Officers and Management • Legal Issues • Shareholder Agreement, Quitclaims, Non-Comp… • The Due Diligence Binder • The Difficult Startup Phase, Short on Cash • Monitoring, Feedback and Changing Plans Dr. Steven A. Gedeon sg@intelliaction.com

12. 2) Integration of Basic Functions • Analysis of the Market • Synthesis to Develop Key Issues and Strategies • Integration during the Planning Process • The Business Plan • Primary Deliverable for this Course • Everything Relates back to The Plan Dr. Steven A. Gedeon sg@intelliaction.com

13. 3) Review Real Cases • Case Study Presentations • Ongoing Feedback • Elevator Pitches • Interim Presentation • Review of Sales Forecasts • Final Presentation • Critical Analysis of Others’ Plans • Everyone Evaluates Every Presentation Dr. Steven A. Gedeon sg@intelliaction.com

14. 4) e-Biz in Corp Environment • Using eBusiness within an Organization vs. eBusiness as the Business of the Company • Business Processes • Technology • Front End • Middleware • Back End Dr. Steven A. Gedeon sg@intelliaction.com

15. 5) Individual and Group Skills • Working in Teams • Everyone takes on an Officer Role • Divide and Conquer to Accomplish More • Diversity of Skills Required • Individual Skills • Presentation Skills • Class Contribution • Everyone Evaluates Every Presentation Dr. Steven A. Gedeon sg@intelliaction.com

16. Course Materials • Required texts: • “Business Plans That Work,” Gillman • “Innovation Nation”, Brody et al. • Other readings will be assigned throughout the semester via Blackboard • The ability to find and assimilate information is a key skill of the Knowledge Worker. Please go beyond the basic required texts and handouts.

17. Course Structure • Assignment #1 15% (individual) • Case Studies (Sign Up Sheet) 10% (individual) • Interim Presentation 10% (group) • Sales Forecast 10% (group) • Final Project Report 30% (group) • Final Presentation 15% (group) • Participation and Research 10% (individual) • In-class discussion to gauge your understanding of concepts covered in class • You are expected to read all Cases and contribute • You are expected to critique and grade all Presentations • Opportunities are available to earn Bonus Marks • Each group will review the performance of each team member so that some allocation of the overall group mark may be applied

18. Business Plan Project Teams • There is a significant amount of group work in this course • 5-6 members per team (6 - maximum) • You will need to meet frequently • Each member contributes • Try to find a diversity of skills and roles • “Firing Rules” apply (Check the Firing Memo on the Blackboard)

19. Business Planning Strategy Market Research Business Idea

20. Business Plan Outline • Executive Summary • 1: Mission, Goals & Objectives • 2: Business Idea • 3: Market Analysis • 4: Key Success Factors • 5: Marketing Plan • 6: Processes & Technology Plan • 7: Organizational Matters • 8: Financial Plan • Appendices

21. The e-Business • What is e-Business? • Buying and Selling on the Internet? • Collaborating with Partners? • Managing Customer Relationships (Sales, Marketing, Customer Service) • Optimizing internal operations (HR/Employee collaboration/Intranet?) • Deploying applications on the Internet (ASP) • What isn’t e-Business?

22. What is e-Business? “Electronic business (e-business) is any process that a business organization conducts over a computer-mediated network. Business organizations include any for-profit, governmental, or nonprofit entity. Their processes include production-, customer-, and internal or management-focused business processes.” (US Census Department)

23. What is e-Business? “a secure, flexible and integrated approach to delivering differentiated business value by combining the systems and processes that run core business operations with the simplicity and reach made possible by Internet technology” (IBM)

24. What is e-Business? Connecting IT Systems to the Internet Extending the power of information systems through the reach of the Internet to: • Suppliers • Customers • Employees • Affiliation Groups • Connected Devices Dr. Steven A. Gedeon sg@intelliaction.com

25. The “e-difference” in e-Business Planning The biggest difference in e-business planning is the need for the entrepreneur to recognize the different and unique capabilities of the Internet and begin to think differently, and creatively, about the opportunities and problems presented by the Internet including mobile computing, convergence, gaming and other interactive applications.

26. The Web is NOT the Internet • The Internet refers to a Network Infrastructure and certain Standards (Internet Protocol) • Many Standards • HTTP (e.g. HTML format) • email (POP3, SMTP, IMAP) • Online Chat (e.g. IRC) • The World Wide Web (using a Web Browser) is only one of many services on the Internet • Intranet, Extranet, Internet Dr. Steven A. Gedeon sg@intelliaction.com

27. IT dysfunction

28. Business Reality • Alignment with business strategy is today’s mantra • It’s not ok if the operation was successful and the patient dies

29. Lessons Learned • It is difficult to succeed in business without: • Passion • Great People (Ability to Execute) • A Good Idea (Value-Added Differentiation) • A Business Plan (Vision and Organization) • Entrepreneurship (Capitalizing on Change) • Sufficient Cash • Early and Ongoing Customers • Enough External Financing

30. Form Groups • Ideally all want to work on same project • Ability to meet (time, place, frequency) • Similar grade expectations • Get along • Hopefully only one leader • Diversity of Skills Don’t Forget to Choose a Case Study