Babson College
Department of Math and Science
Fall Semester, 1999
MIS-3570 — Selected Topics: Electronic Commerce


(This version prepared August 31, 1999)

Instructor: Dr. Robert H. Reck
Kendall Consulting Group
268 Highland Road, Andover, MA 01810
Phone: 978-474-9109 or 941-366-1774
E-mail: reck@babson.edu

Class Meets: Class Meets: Monday and Wednesday, 1:40 p.m. - 3:15 p.m. or 3:25 p.m. - 5:25 p.m. depending on section, in Gerber 215

Course Web Site http://faculty.babson.edu/reck/mis3570f99/index.htm for syllabus. Another site will be posted for regular class use.

Course Summary and Objectives

This course studies the rapidly growing phenomena of electronic commerce and electronic business from four perspectives:

1. Technology underpinnings for Electronic Commerce (EC), including an overview of the languages, hardware, software, networks, Internet, EDI, standards and protocols

2. Impact on other information systems within a business, including impacts on Intranets, management information systems, and other operating systems that provide fundamental support to all elements of the value chain within a business. The relation to Knowledge Management will also be discussed

3. Impact on business design and strategy (and vice versa), including how business strategy shapes and is now being shaped by threats and opportunities in EC

4. Impact on the industries and markets, including use of extranets, and how some industries are being forced to change almost overnight to respond to the impact of EC, particularly some intermediaries and distributors

Audience

The course is aimed at those business and management information systems students who already have an understanding of the fundamentals of MIS, and who want an understanding of the issues and fundamentals regarding the use and conduct of electronic commerce and electronic business. Further, the course is being designed to especially appeal to those students with an entrepreneurial spirit.

Prerequisites

As listed in the course reference list, viz. a background or previous courses in information systems.

Class Approach and Student Evaluation

Classroom participation, a personal web-based case study, a short paper or mid-term examination, and a final examination are the basis for the course grade.

Participation will be evaluated on the basis of understanding and using assigned readings and study findings, contributing to insight on analysis and action recommendations for the case or topic being discussed, and taking into account others’ inputs. Excessive absence or tardiness from class or other disregard for professional behavior will adversely affect this g rade.

A web-based case study development is to be an analysis and recommendations for a specific company. The papers are to take into account not only the assignment materials for the classes to that point, but also the class discussions and insights after the class.

Students are encouraged to discuss material for classes and papers, but are individually responsible for the final products. Arrangement will be made so that students can post case studies and examinations to a class web site.

The weighting of these elements in the final grade are:

Class participation 20%
Case study 30%
Short paper/mid-term 20%
Final examination 30%

Individual Case Study Project

Each student will write a short case study about a company or industry coping with electronic commerce or electronic business in some way. Unique companies and industries will be selected by each student on a first-come, first served basis on a class sign-up page. This project could include field work, analysis, and a Web-based case study. Data for the study can be gathered from the Web, from publicly available information, from the library, or from a visit to a local firm. The firm you select should be involved in a key way with electronic business, either as a manufacturer or distributor, or as a user. (More will be said in class on the selection criteria.) Interviews with business managers who interact with the e-business would be especially useful but are not mandatory. The case study should be organized to demonstrate a thorough understanding of the e-business and its potential. As a general guideline, the case study could include (but not be limited to):

• Describe the company's business in 25 words or less
• Describe the relation of electronic commerce to business practice, noting any changes from before to after electronic commerce was adopted
• List past business successes and failures
• Give industry background: growth, number of firms, major players, etc.
• Give background of company: age, size, growth, market
• Analyze the Porter five forces and other relevant frameworks
• Perform a SWOT analysis
• Analyze the business model
• Investigate the competitive financial situation: ratio analysis on key operating performance measures (inventory turnover, sales/employee, ROA, etc.) compared to industry values
• Discuss key management challenges: today, five years ago, five years hence
• Include names, titles and quotes from people interviewed
• Identify any entrepreneurial opportunities
• Create a final Web-based case study
• Include complete bibliography and references, including complete citation of works from all sources (including the Web) in proper bibliographic form

This project is due November 17, 1999 in written and electronic form. Where electronic media (e.g., Web sites) are integral to your case, you may incorporate these on attached disks or direct the reader to a readily-accessed public Web site. You may also post your case on the Web site and notify the instructors of the site's address (if not on the class Web site).

Short Paper/Mid-Term Examination

There will be a short paper/mid-term examination about half-way through the semester. Some details of the assignment will be given out at least a week before the in-class examination. A short case study will be the focus for the paper/ examination and the student will be asked to apply the concepts and learnings from the course in an analysis of the case company. The mid-term paper/ examination will take one class period.

Grades will be based on the insights and understanding shown in the paper, as well as the creativity, clarity and crispness of writing (e.g., content and form). Students should expect to prepare the paper in class on a lap-top computer and either e-mail the paper at the end of the class to the professor, or, preferedly, give the professor a 3—1/2" floppy disk containing the paper/examination in Word '97. Exhibits referring to slides shown in class need not be reproduced by the student - they may be referred to in the paper with an appropriate reference so the grader has a clear indication of which framework/slide is being referenced. Students should save all their work fromn this exercise as a back-up - just in case.

The paper/examination will be limited to a 2,000 words maximum (that's about five double-spaced pages in 12-point type). Warning: the grader will stop grading papers at the end of five pages. Students should arrive at the examination prepared with the correct tools and templates for preparing their papers. Papers will be handed back as soon as possible after the examination.

Final Examination

The final examination will be similar to the mid-term paper/examination. The entire contents of the course should be drawn upon to respond to the questions posed regarding the examination case study. Other directions and expectations indicated for the mid-term will also apply for the final exam.

Course Materials

There is a course pack for this class containing the case studies and several articles that is available at the Babson College Bookstore.

There is one book for the course which is available in paperback from the Bookstore or from online stores such as amazon.com or varsitybooks.com.

[K&R] Ravi Kalakota and Marcia Robinson, e-Business: Roadmap for Success, Addison-Wesley Co., 1999

There are two additional optional texts which the students seeking greater depth of knowledge and insight may also obtain. These are:

(Optional Reading) [T&S] G. Winfield Treese and Lawrence C. Stewart, Designing Systems for Internet Commerce, Addison-Wesley Co., 1998
(Optional Reading) [D&M] Jack Davis and Susan Merritt, The Web Design Wow! Book, Peachpit Press, 1998

Examinations and other grading material will not depend on the optional texts.

Specific articles at designated Web sites will also be assigned as part of the readings and assignments. Students are also expected to thoroughly review the Web sites of any case study company (except during in-class examinations).


MIS-3570 Course Syllabus - Session Descriptions

Week of

Topics

Assignments, Readings, Cases and Guests

September 1

Introduction

Course overview and administrative matters. Content of syllabus. Introduction to instructors. Discussion of assignments, grading criteria, class papers and team projects. Formation of student teams.

Overview of Internet, e-Comm (EC) and e-Biz (EB), as well as other aspects of EC. Review of history of the Internet and EC/EB. Role of technology in commerce and strategic systems. Key frameworks for course. Key vocabulary. Introduction to EC languages and tools, including site development tools.

Case: None.

Readings: Scan text book, particularly the table of contents for major topics.

September 6

EC Sites: Business Perspective

Discussion of site "progressions" and typical sites, relative to a business' intent and business and technology implications. The elements of a business model as well as the spectrum of EC business models observed will be discussed. Relation of EB/EC to value chains and extended enterprise models.

Case: "The Knot," by M. Lieb, Harvard Business School, #9-899-116, February 10, 1999.

Reading: K&R - 1, 2 and 11.

September 13

EC Sites: Technology Perspective

Discussion of what's on the Web and why; organizing principles and major Internet components, including ISPs, portals, search engines, Internic, and other features. Mechanics of creating Web pages and launching them into cyberspace. The technology, software, network connections, and business design will be discussed for several business models.

Case: "Open Market: Managing in a Turbulent Environment," by J. Gogan and L. Applegate, #9-196-097, August 29, 1996.

Reading: K&R - 3 and 4.

September 20

EC Sites: Design Criteria and Layout

What factors lead to successful EC sites? What are the various evaluation criteria? How can you become a "destination" site? Several specific areas will also be discussed relative to site design, including collaborative filtering versus structured filtering, search engine bias, and common gateway interfaces (CGI). These factors are particularly instrumental in site functionality and relative success. Aesthetic factors will also be highlighted.

Case: "Firefly Network (A)," by J. C. Charlet, Stanford University, OIT-22A, March 1998.

Case: "Broadvision" by J. C. Charlet, Stanford University, OIT-21, March 1998.

Read: T&S - 11. (Web Wow Book fits well here!)

September 27

EC Business: Components

The revenue and cost components of an EC business will be developed, together with the major elements that go into a business case for a venture partner. Criteria VPs use to evaluate submissions. The class will also discuss the role of intermediaries in EC businesses. The roles and success factors of entrepreneurs will also be covered.

Case: "Chemdex," by L. Katz, Harvard Business School, #9-898-076, January 9, 1998.

Readings: K&R - 5. Business 2.0 and other articles on Chemdex to be passed out.

Sites: Chemdex, Life Technologies, VWR

October 4

EC Business: Linkages With Strategy

How do existing businesses cope with the establishment of EC in their industries? What steps do mature companies take to create and implement an EC strategy? What factors are in the way? What strategic questions arise and how should they be answered? The eight rules of EB will be discussed and related to performance parameters. Performance metrics for EC/EB will also be discussed.

Case: "Leadership Online: Barnes & Noble vs. Amazon.com (A)," by P Ghemawat and B. Baird, Harvard Business School, #9-798-063, December 4, 1998.

Reading: K&R - 6, 12. And McKinsey Quarterly articles and other articles about Amazon to be assigned or passed out.

October 11

Key Topic: Security and Other Factors

Many of the key issues surrounding EC will be discussed. Specific focus will be on security and "hacker proof" sites, hence, a discussion on protection of company systems and information by firewalls and security-limited access. Solutions to security problems with various hardware and software configurations will be covered. Protocols and features of EC software such as browsers that allow heightened security will also be discussed.

Reading: K&R - 9.

October 18

EC In Practice: Financial Services

One of the key areas being developed that will have far-reaching impacts on business and EC is electronic banking. Attempted on-and-off for over 20 years with various technologies, now electronic banking appears to have a viable start. The role of EC, EB and electronic banking will be discussed, together with the various banking/financial services functions. Many related issues including payments, bill presentation, credit cards, e-wallets, etc. will also be discussed. EC/EB businesses will also be discussed from the shareholder and stock market perspective.

Case: "Wells Fargo Bank & Electronic Banking," by R. Bamford, Stanford Graduate School of Business, SM-41, October 14, 1997.

Reading: K&R - 8.

October 25

EC In Practice: Online Publishing

Continued discussion on business strategy. How do mature industries cope with potential obsolescence of their business or market position due to EC? Examples from the publishing area will help focus the discussion. Additionally the impact of distance learning on the education industry will be examined.

Case: "USA Today Online," by J. Deighton, Harvard Business School, 9-598-133, July 17, 1998. - and -

Case: "InterZine Productions,"by J. Green, Harvard Business School, 9-396-174, November 16, 1995.

Reading: TBD

November 1

Key Topic: Knowledge Management

An important and allied component of EC/EB is knowledge management. This module will discuss KM and the various viewpoints companies are taking on the subject. A business and technology perspective will be shared. The impact on operations of a consulting company will help focus the class.

Case: "Ernst & Young Knowledge Management," by A. Chard, Stanford Graduate School of Business, M-291, September, 1997.

Reading: K&R - 10.

November 8

Key Topic: Buy Side, Sell Side and Supply Chain Opportunities and Systems

This module and guest will discuss how various companies are positioning themselves to use EC/EB in their operations. The product suites that support each type of operation will be discussed. Buy-side or procurement systems will be discussed, together with the efficiences they inject into a business. The subject of "front office" or Customer Relati onship Management (CRM) will also be discussed in depth together with the subject of data mining. Supply chain systems will also be covered.

Reading: Review K&R 5, 6 and 8.

November 15

Key Topic: ERP and Integration of EC Components

The opportunities for EC/EB along the supply chain will be covered with emphasis on ERP/EEM systems and their relationship to the "back office" support of e-Comm. The role of EB in removing time from the supply chain will also be discussed (zero latency effect).

Reading: K&R - 7. T&S - 16.

Davenport, T.H., "Putting the Enterprise Into the Enterprise System", HBR, July 1998, pp 121-133. Reprint # 98401.
"The Net Imperative," Economist, July 1, 1999.

November 22

No Class - Thanksgiving Recess

None

November 29

Miscellaneous Topics, Review of Course and Course Evaluations

A review of the course will begin. Topics left unaddressed up to this time period will be completed. Time will also be allocated for completion of the course evaluations.

None

December 6

Wrap-Up and Final Examination Introduction

As an ending to the class the future scenarios and business impacts facing the EC/EB communities will be discussed.

Final examination review.

None

End of Syllabus.

This page updated 8/31/99.