ERP & e-Business Comprehensive Lecture Notes

Group-Presentation / Assignment Logistics

  • 9109\text{–}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\text{SAP}; others mentioned Infor\text{Infor}, Microsoft Dynamics\text{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\text{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:
    • yy-axis = popularity / sales volume
    • xx-axis = number of distinct products
  • Traditional retail (head): few SKUs × huge volume (e.g. Harry Potter 8, 1 book×10,0001\text{ book} \times 10{,}000 copies)
  • Long-tail e-Business: huge catalogue × low unit sales (e.g. Amazon sells 10,00010{,}000 niche titles × 11 copy each)
  • Area<em>headArea</em>tail\text{Area}<em>{\text{head}} \approx \text{Area}</em>{\text{tail}} → revenue parity

Mass-Customisation & Personalisation

  • Customization (by user) – customer alters product (laptop specs, cake design, BMW 10,00010{,}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 20min20\,\text{min} (scarf) to 90min90\,\text{min} (jumper)

Case Activity – BlueNile.com (online diamond retailer)

3 analytical questions addressed by groups

  1. 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
  2. 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%0\% financing, free shipping, store-in-store showrooms
  3. Trust-Building Mechanisms
    • 3030-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 &amp;\&amp; SaaS ERP)
  • Freemium (baseline free → upsell premium)
    • Give 15GB15\,\text{GB} 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\text{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)

  • 9109\text{–}10 uploaded case studies
  • ERP implementations: monthsyears\text{months} \to \text{years}
  • BMW offers 10,00010{,}000 configurable options
  • Google free storage: 15GB15\,\text{GB}
  • Long-tail example: 1×10,000=10,000×11 \times 10{,}000 = 10{,}000 \times 1 (area equivalence)
  • Knitten demo: scarf 2020 min, jumper 9090 min
  • Blue Nile return window: 3030 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