|Lesson 2|| E-business Course Prerequisites |
|Objective||Verify you have the right background for this course. |
e-business Course Prerequisites
To get the most out of this course, you should have a solid grasp of business models and management processes, and be familiar with basic networking concepts.
You should have a basic understanding of programming concepts, the Internet, and the following concepts:
- Networking protocols, including TCP/IP
- Operating systems
- E-commerce and eBusiness
Prior to taking this course, you should have the following skills:
- E-Commerce Fundamentals, or equivalent knowledge and experience
- Experience with high-tech products or services
- In-depth knowledge of a specific industry
Business-to-business (or B2B for short) is a marketing strategy which involves the transaction of goods or services between businesses
(as opposed to relations between businesses and other groups, for example consumers or public administration).
Increase in Efficiency
Since the 1980s, U.S. corporations have shown steady improvements in efficiency. This is the result of competitive pressures and the desire to optimize investor returns by executive management. As reported by the Bureau of Labor Statistics (U.S. Department of Labor, 2001), U.S. worker productivity continues to improve and the existing operational processes used by those workers continue to be optimized in most firms to support continued growth. Worldwide, corporations of other nationalities are driven by similar competitive influences originating from either local or regional firms or from international competitors,
such as those in the United States. Successful firms approach competition in several different ways but in most cases, executive management responds by focusing its efforts on developing strategies that will increase revenues, reduce costs, and make improvements in existing processes. In striving to support these activities, many firms have come to the conclusion that the introduction of one or more e-business solutions into various operational
areas of their organizations offers a primary means to implement these strategies.
Forrester Research predicted that corporations would spend approximately 3% of their revenues on e-business procurements in FY2002 and that this would continue to bring the financial costs of these types of systems into focus
This 3% investment may realistically equate to 40-60% of a firm's entire capital assets budget. Even at this funding level, not every project can be funded and there is no guarantee that those that are funded will generate the anticipated benefits. Thus, the projected benefits of capital expenditure on an e-business solution are legitimately brought under scrutiny by executive management. The most effective companies are beginning to measure
a mix of business objectives, costs, and benefits to validate strategic implementation of e-business solutions.
They then hold managers accountable for the results that they achieve during the implementation process and subsequent
operation of the solution. In the next lesson, the hardware and software requirements will be discussed.