Steps to e-Business Success by pok77069

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									Steps to e-Business
Success
      Jason C.H. Chen, Ph.D.
         Professor of MIS
 School of Business Administration
        Gonzaga University
     Spokane, WA 99258, USA
    chen@jepson.gonzaga.edu
Focus on e-Business Applications
               Knowledge Management/Business Intelligence
                              E-Commerce
                           E-Customer Relationship




                                                            Consumers
                                                            Businesses &
  Businesses




                    Procurement   Trading     E-Channel
                      Network     Network    Management
                       M:1         M:N           1:N

                            E-Portal Management
                                 E-Services

                      SCM/ERP/Legacy Appls

                                                                      2
Roles of Information Systems

                 Automates




                               Innovates/
 Informates
                               Transforms


                                            3
    eBusiness Key Concepts
   eBusiness
    the strategy of how to automate old business models
    with the aid of technology to maximize customer
    value
   eCommerce
    the process of buying and selling over digital media
    (e.g., Internet)
   eCRM (eCustomer Relationship Management)
    the process of building,sustaining, and improving
    eBusiness relationships with existing and potential
    customers through digital media

                                                          4
eBusiness Processes

     WHY     Customer Relationship



     WHAT     Redesign Business
              Processes (Outside-In)


     HOW      Applying Technology


                                       5
    Why e-Business?
   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
                                                            6
Revolution, Revolution ...
   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.
                                            7
Revolution, Revolution            (continued)

   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.
                                                8
e-Business ...
   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.
                                         9
e-Business       (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.

                                         10
 Planning is everything ...
          develop    Vision

Customers,                guide
  market,
competition
                    Strategy


                         create   Tactic

                    Products,
                    Services


                                           11
IT Planning: The Relationship Between Business, IS,
and IT Strategies
Seven-step Process ...
   The following seven-step process can
    help guide a company through its e-
    Business transformation.
       Cover the gamut of e-business activities,
        from conception to operation




                                                13
Seven-step Process         (continued)

   1. Start High
   2. Think Fresh
   3. Know Your Market
   4. Set Vision
   5. Define Strategy
   6. Create
   7. Refresh Regularly

                                         14
    Seven-step Process                       (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.

                                                               15
    Seven-step Process                          (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.
            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)
       New ways of pricing your products and services.
       SWAT, outsourcing                                              N
                                                                   16
    Seven-step Process                          (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 e-
             Business 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:
            branding, customers, competition, supply chain, demand
             chain (e.g., auto online)
                                                                      17
     Seven-step Process                             (continued)

   4. Set Vision
       a long-term vision to guide your company as it enters
        the e-Business world
       the vision defines
            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                                                18
    Seven-step Process                               (continued)

   5. Define Strategy
       define, select, and prioritize the initiatives needed to
        implement the company’s e-Business vision
       the strategy defines
            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


                                                                        19
    Seven-step Process                         (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:
            design, content, promotion, legacy integration,
             development (SDLC), organizational change implementation,
             training

                                                                  20
Seven-step Process                           (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 e-
        Business 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.


                                                                 21
     Seven-step Process                             (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.

                                                                  22
Conclusion
   The need for interdisciplinary thinking
    has never been greater …
   companies that can continually combine
       innovative business thinking,
       creative design and content, and
       advanced technology
   will lead the way in e-Business success.

                                           23
SURFING THE NET
THANKS and GO for your
Successful e-Business!!




                          25
                          Vision

                    Mission,
                    Principles,
                    and Values

               Goals / Objectives


                  Strategies



                  Plans




                Tactics



Figure: Hierarchy of Leadership Tools
SURFING THE NET
   SEARCH ENGINE: tool for locating
    specific sites or information on WWW
   HYPERLINK: spot on screen, when
    clicked shifts to a new page or site
   “PUSH” TECHNOLOGY: server streams
    relevant content to browser
                        Vision



                        Mission

Figure:
                        Policies
Stages of
e-Business
                          Goals
(or IS)
                                     Time
Project
             Metrics    Values
                                    Horizon

Strategic
                       Objectives
Planning
             Metrics    Values       Time
                                    Horizon


                       Strategies



                        Tactics                 N
                                              28 -28
                                              TM

								
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