Transcript Document

Steps to e-Business
Success
Jason C.H. Chen, Ph.D.
Professor of MIS
School of Business Administration
Gonzaga University
Spokane, WA 99258, USA
[email protected]
Focus on e-Business Applications
Knowledge Management/Business Intelligence
E-Commerce
Procurement
Network
M:1
Trading
Network
M:N
E-Channel
Management
1:N
Businesses &
Consumers
Businesses
E-Customer Relationship
E-Portal Management
E-Services
SCM/ERP/Legacy Appls
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Roles of Information Systems
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eBusiness Key Concepts
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eBusiness
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eCommerce
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eCRM (eCustomer Relationship Management)
the strategy of how to automate old business models
with the aid of technology to maximize customer
value
the process of buying and selling over digital media
(e.g., Internet)
the process of building,sustaining, and improving
eBusiness relationships with existing and potential
customers through digital media
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eBusiness Processes
______
Customer Relationship
Redesign Business
Processes (Outside-In)
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Applying Technology
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Why e-Business?
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The Information economy will make all
organizations reassess their positions with
respect to their customers-supplier relationship.
“e-Business is bound to come and unless we
are able to cope with the changes in this world,
our competitiveness will decline.”
• this is a clear testament to the power of the
new information-based economy and a
warning to all companies that inertia must
be overcome and change embraced.
By Michiyo Nakamoto, Financial Times, Nov. 23, 1999
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Revolution, Revolution ...
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The e-Business revolution is impossible
to ignore.
It is transforming businesses in virtually
every industry and reshaping the global
economy.
Organizational structures and
operational practices that have served
business well since the Industrial
Revolution are suddenly obsolete.
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Revolution, Revolution (continued)
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The entrenched distribution networks
that once served as formidable barriers
to competition may suddenly become
liabilities, unable to respond to the new
demands of the marketplace.
The e-Business revolution is as
fundamental a change to current
society as the industrial revolution was
to its preceding agrarian society.
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e-Business ...
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The heart of e-business is
interconnectivity and interaction.
The ability to reach more people while
sharing information of increasing
richness creates new opportunities for
value creation in areas such as
marketing, customer service, and
operations.
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e-Business
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(continued)
In this new world, status quo is not an
option. Companies have to reinvent
themselves to survive.
Given the fast pace of e-business
change, actions that once took years to
accomplish must now be done in
months or weeks.
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Planning is everything ...
develop
Customers,
market,
competition
______
guide
_____
create
Tactic
Products,
Services
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Summary on IS/IT Planning:
The Relationship Between Business, IS and IT Strategies
External
industry factors and
internal resources and
competence
Business Strategy
• Business Decisions
• Objectives and Direction
• Change
Supports
Business/SHAPE
Direction for
Business/Determine
IS Strategy
• Business Based
• Demand Orientated
• Application Focused
Infrastructure
and services
Potential for new
business opportunities
What business
support is
required
Needs and
priorities
IT Strategy
• Activity Based
• Supply Orientated
• Technology Focused
Dr. Chen – Steps to e-Business Success
Where is the
business
going and
why
How it
can be
delivered
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Stages of Moving to E-Business
“commerce +”
Stage
Stage 11
“e-commerce”
Stage
Stage 22
Web presence
• Develop presence
• Develop technology
capability
Access
information
Stage
Stage 33
Transact
business
• Re-orientate business/technology
thinking skills
• Build integrated approach = web
+ business systems
Anxiety
Gap
2 - 3 years
Wilcocks, Sauer and Associates (2000)
Dr. Chen – Steps to e-Business Success
“e-business”
Stage
Stage 44
Further integration of
skills, processes,
technologies
• Reorganize people/structures
• Reengineer processes
• Remodel technology
infrastructure
Organizational
Capabilities Gap
Capability, leveraging
experience and know-how
to maximise value
• Customer-focused organization
• Content-centric services/products
• ‘The new marketing’
Value
Transformation Gap
BUSINESS
VALUE
2 - 4 years
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Seven-step Process ...

The following seven-step process can
help guide a company through its eBusiness transformation.
• Cover the gamut of e-business activities,
from conception to operation
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Seven-step Process
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(continued)
1.
2.
3.
4.
5.
6.
7. Refresh Regularly
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Seven-step Process
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(continued)
1. Start High
• e-Business is more than developing a fancy Website
• e-Business is a business rather than a technical endeavor
• radical change (BPR)
• e-Business initiatives may also cut across corporate
boundaries, shifting organizational structures, redefining
job descriptions, and upsetting established processes.
• Only corporate executives can marshal the forces and
commitment to launch an e-Business program and
respond the concerns of internal and external
stakeholders.
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Seven-step Process
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(continued)
2. Think Fresh
• The Internet revolution is radically changing the business
game.
• Start with a fresh viewpoint and assume that everything is
open to question and change.
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What your customers are really buying from you?
Is how you deliver your product more important than the
product itself?
Porter’s model (commodities vs. differentiation from
competitor, e.g., DELL)
Hypercompetition model, Blue Ocean strategy model etc.
• SWAT, outsourcing
• New ways of pricing your products and services (revenue
management)
N
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Seven-step Process
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(continued)
3. Know your market
• assess your company’s current market
 needs of your customers, partners, and suppliers
 how you can meet or exceed their needs through eBusiness capabilities.
• expand upon this market awareness by identifying
possible new products, services, and business lines
• encroaching competition from existing and unknown
sources
• formulate your e-Business vision and strategy.
• Knowing your market means exploring your:
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branding, customers, competition, supply chain, demand
chain (e.g., auto online)
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Seven-step Process
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(continued)
4. Set Vision
• a long-term vision to guide your company as it enters
the e-Business world
• the vision defines
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what a company wants to do,
what it wants to be.
• do not rush to strategies, actions, and results
 Vision <--- Mission <--- Goals/objectives <--- Strategies <--Tactics
• Complete executive buy-in is essential; executives must
promote the vision and make it part of the corporate
culture - therefore, employees will be imbued with new
corporate vision
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Seven-step Process
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(continued)
5. Define Strategy
• define, select, and prioritize the initiatives needed to
implement the company’s e-Business vision
• the strategy defines
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how the company is going to get there.
• incremental actions are not enough
 expect high potential returns and advantages
• other factors to consider:
 process change, organizational change, technical
architectures, creative needs, fit within overall vision
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Seven-step Process
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(continued)
6. Create
• a company transforms itself through a set of coordinated
initiatives that implement that needed organization,
technology, and process changes
• the most difficult part of an e-Business transformation is
changing the underlying business model (but does not
mean to undercut the importance of technology nor
underestimate the complexity of the implementation)
• when building e-business site, consider:
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design, content, promotion, legacy integration,
development (SDLC), organizational change implementation,
training
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Seven-step Process
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(continued)
7. Refresh Regularly
• to be viable, a company must continually review, reexamine,
and revise its vision, strategies, and implementations.
• Speed, innovation, and change are implicit parts of the eBusiness world
• survey customers continually to learn if it is meeting their
needs and goals - making money, reaching prospects,
satisfying stakeholders - in order to know when and what
to change
• keep company’s Website design and content fresh and
exciting to attract new visitors and to keep them coming
back for more.
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Seven-step Process
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(continued)
7. Refresh Regularly (continued)
• launch promotional campaigns
to drive traffic to its Website. Products,
and services;
 to maintain and enhance its brand
identity; and
 to garner a greater share of a market
where switching costs are low or
nonexistent
• e-Business promises lower prices and
better selection for consumers, and
unlimited opportunities for new businesses.
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Conclusion
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The need for interdisciplinary thinking
has never been greater …
companies that can continually combine
• innovative business thinking,
• creative design and content, and
• advanced technology
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will lead the way in e-Business success.
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