ERP & e-Business Comprehensive Lecture Notes
Group-Presentation / Assignment Logistics
- 9–10 case studies uploaded to the learning portal
- Teams choose one to analyse & present, starting “week after next” (exact date TBA)
- 2 debate topics also available
- Any team may select a debate instead of a normal case study
- Deliverables
- Group presentation in the allocated week (slides + Q&A)
- Marks linked to content mastery, critical analysis & class engagement
ERP (Enterprise Resource Planning) – Recap & Deep Dive
- ERP definition – a single integrated IT system that unifies data, processes and reporting across all departments, providing a “single source of truth.”
- Key question posed to class: “Have you implemented / managed / selected an ERP?”
- Majority use SAP; others mentioned Infor, Microsoft Dynamics, in-house builds, etc.
Why ERP projects take so long
- Implementation times reported: months to multiple years
- Complexity isn’t only technical:
- Change-management (culture, processes, people)
- Business-process re-engineering (BPR)
- Cross-functional integration (marketing vs. sales, faculty vs. faculty, etc.)
- Vehicle metaphor: modern car = many ECUs. Driver sees only one Check-Engine light → ERP plays the same integrative role.
Technical vs. Organisational complexity
- Technically “just protocols & connectors,” but organisationally:
- Silos with incompatible “languages” (HR, Finance, Engineering …)
- Resistance to change (“nobody likes change”)
- Need for trained change-managers & specialised ERP consultants
Vendor-Selection Criteria (class brainstorm)
- Cost (licence, implementation, TCO)
- Past experience / vertical expertise
- Post-implementation support & SLAs
- Ability to customise (gap → build local solution)
- Timeline / deadline adherence
- Domain knowledge (e.g.
- “SAP Finance module” experts for banks
- “Dynamics Fashion” consultants for garment firms)
Typical implementation pain-points
- Poor planning / unrealistic milestones
- Insufficient investment in change management
- Aligning off-the-shelf processes with legacy ways of work
- Build vs. Buy vs. Lease decision
- Rise of subscription (SaaS) ERP models (“ownership → subscription economy”)
From ERP to e-Business
- Session pivoted from finishing ERP to launching e-Business discussion
e-Business vs. e-Commerce
- e-Commerce = online merchandise/service transactions (subset)
- e-Business = complete end-to-end operation of a business in digital space (superset)
- Includes supply chain, CRM, analytics, HR, etc.
Advantages of e-Business
- Global reach & rapid scalability (up & down)
- 24×7 availability and convenience
- Long-tail revenue capture (detailed below)
- Lower physical overhead (no showrooms, minimal inventory)
- Data-driven personalisation & customisation
New challenges
- Cultural / localisation issues (Pepsi “brings ancestors back” Chinese fiasco; KFC “eat your fingers off”)
- Need for lightning-fast fulfilment & supply alignment
- Multi-currency, multi-tax compliance
- Trust & security perceptions (customers reluctant to pay online)
The Long-Tail Concept
- Graph:
- y-axis = popularity / sales volume
- x-axis = number of distinct products
- Traditional retail (head): few SKUs × huge volume (e.g. Harry Potter 8, 1 book×10,000 copies)
- Long-tail e-Business: huge catalogue × low unit sales (e.g. Amazon sells 10,000 niche titles × 1 copy each)
- Area<em>head≈Area</em>tail → revenue parity
Mass-Customisation & Personalisation
- Customization (by user) – customer alters product (laptop specs, cake design, BMW 10,000 options)
- Personalisation (for user) – system adapts content/offer (AI-driven recommendations)
- Example video: Knitten pop-up factory letting shoppers design knitwear live → rapid CAD → print-knit in 20min (scarf) to 90min (jumper)
Case Activity – BlueNile.com (online diamond retailer)
3 analytical questions addressed by groups
- Education Features
- Dedicated “Education” pages: 4Cs, videos, blogs, interactive size/clarity sliders
- Virtual appointments & live chat / chatbot
- 360° high-res renders, magnification, AR “hand-view”
- Independent certificates (GIA, IGI) downloadable
- Customer Attraction Tactics
- SEO + Google Ads for “engagement rings” keywords
- Social media presence (FB >1.8 M; IG >428 k) incl. influencer collabs
- Massive catalogue, custom-ring builder, birth-stone jewellery
- Seasonal promos, 0% financing, free shipping, store-in-store showrooms
- Trust-Building Mechanisms
- 30-day money-back guarantee & free return shipping
- Insured, discreet packaging; order tracking
- Conflict-free sourcing pledge; origin traceability
- Lifetime upgrade policy
- Verified reviews, high Trustpilot ratings
- Suggested improvements: region-specific influencers, local certification partners, richer unboxing visuals, Sinhala/Tamil localisation, astrology-based recommender
Emerging e-Business Models
- B2B, B2C, C2B, C2C (traditional labels)
- Platform / Marketplace (eBay, Airbnb) → firm supplies matchmaking not inventory
- Government-to-Citizen (G2C) portals – fees for digital services
- Data-for-Service (Google, Facebook): user pays with behavioural data, not cash ("if it’s free, you’re the product")
Revenue Models Cheat-Sheet
- Advertising (YouTube pre-rolls, Facebook boosted posts)
- Sales / Transaction margin
- Subscription (Netflix & SaaS ERP)
- Freemium (baseline free → upsell premium)
- Give 15GB Gmail storage, monetise via data & ads
- Transaction fees (PayPal, Stripe)
- Affiliate / referral (blogs linking to Amazon)
Digitalisation & e-Governance Gaps (Sri Lanka case)
- Police report anecdote: 7 visits, manual ledger search, handwritten copies ⇒ highlights need for basic digital record-keeping before AI dreams
- Barriers: legacy protocols, lack of political will, culture, underinvestment
Business Model Canvas – Spotify Walk-Through
- Value Proposition
- Instant, legal, high-quality music streaming; massive catalogue; listen song-wise not album-wise
- Customer Segments
- Free listeners, premium subscribers, advertisers, emerging artists/labels
- Channels: Mobile & web apps, social media, bloggers
- Customer Relationships: UI/UX excellence, data-driven recommendations, support
- Key Activities: Platform R&D, licensing negotiations, data analytics
- Key Resources: Brand, tech talent, servers, algorithm IP, music rights DB
- Key Partnerships: Record labels, telcos, investors
- Cost Structure: Infrastructure, royalties, salaries, marketing
- Revenue Streams: Ad-supported free tier, Premium subscription
Ethical / Philosophical Pointers
- Data privacy vs. “free” services (sensor access clause, behavioural tracking)
- Cultural sensitivity in global marketing (translation blunders)
- Labour displacement fears vs. new consultant niches (ERP, BI, AI)
Numerical References & Equations (quick list)
- 9–10 uploaded case studies
- ERP implementations: months→years
- BMW offers 10,000 configurable options
- Google free storage: 15GB
- Long-tail example: 1×10,000=10,000×1 (area equivalence)
- Knitten demo: scarf 20 min, jumper 90 min
- Blue Nile return window: 30 days
Practical Exam-Prep Takeaways
- Be able to compare ERP & e-Business impacts (tech vs. change-management)
- Memorise vendor-selection criteria & long-tail equation
- Know definitions: customisation vs. personalisation; freemium; platform model
- Apply Business-Model-Canvas blocks to any case (Spotify template)
- Quote real-world examples & anecdotes to justify theory in written answers