Week_3_Lecture_eCommerce

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					MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE




Strategic Planning for EC
      MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE


The strategic Planning Cycle
   Industry & Competitive Analysis
   Strategy Formulation
   Implementation
   Performance Assessment, Strategy
    reassessment
     MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE


Industry & Competitive Analysis
 Monitor, evaluate and disseminate information
  from external and internal environments
 Identify critical factors that will determine
  success
 SWOT analysis MATRIX
     MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE


Strategy Formulation
   Examine\Redefine the corporate mission
    Develop strategies
   Set Implementation Guidelines
      MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE


Examine\Redefine the corporate mission
    by specifying achievable objectives
     measurable
     what does the company intend to achieve?
     MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE


Develop strategies
   Must be clear and not superficial
   People, organisation, processes and
    technology
     MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE


Develop strategies (cont)
   A value chain approach
   Relationship Marketing
   ROI & Risk Analysis
   Critical Success Factors
   Four EC Scenarios
   Competitive v’s Cooperative
   Competitive Intelligence on the Internet
     MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE


A value chain approach
   Clarify Value Chain Statements
   Create New Values
     MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE

Clarify Value Chain Statements
   Can I realise significant margins by
    consolidating parts of the value chain?
   Can I create significant value for customers by
    reducing the number of entities they have to
    deal with in the value chain?
   What additional skills do I need to develop in
    order to take over the functions of others in my
    value chain?
   Will I be at a a competitive disadvantage if
    someone else moves first to consolidate the
    value chain?
     MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE

Create New Values
   Can I offer additional information regarding transaction
    services to my existing customer base?
   Can I address the needs of new customer segments
    by repackaging my current information assets or by
    creating new business propositions using the Internet?
   Will my current business be significantly harmed by
    other businesses providing some of the value that I
    currently offer?
   Will my current business be significantly hared by
    other companies providing some of the value I
    currently offer on an a la carte basis?
      MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE


Relationship Marketing
    Differentiation by superior service at the point
     of contact with the customer
     customer acquisition
     customer retention
     customer extension
     customer selection
         MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE

ROI & Risk Analysis
       ROI = ratio of cost of resources required to the
        benefits generated
       Includes both quantifiable and non-quantifiable
        items
       Non-quantifiable items
         effective marketing channel
         increased sales
         increased customer service
         competitive advantage
         organisational design
         organisational learning
      MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE


ROI & Risk Analysis (Cont)
    Risks
     technological
     inherent in business reorganisation
     demographic changes
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Critical Success Factors
   Top Management support
   cross functional teams
   technical infrastructure
   customer acceptance
   user friendly web interface
   Integration with legacy systems
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Critical Success Factors (cont.)
   security and control of the EC system
   pilot project
   corporate knowledge
   promotion and internal communication
   cost
   level of trust between buyers and sellers
      MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE


Critical Success Factors (cont.)
    Specific product or services traded
     Does the business have a product that is a
       good candidate for EC?
     Can the business develop new products for
       EC?
     How can I use the information I have about
       individual customers to make it easier for
       them to do business with me?
      MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE


Critical Success Factors (cont.)
    Specific product or services traded (cont.)
     What help can I give customers by using the
       experience of other customers or the
       expertise of my employees?
     Will I be at a significant disadvantage if my
       competitors provide these capabilities to
       customers before I do?
     MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE


Four EC Scenarios
   Open Global Commerce Scenario
   Members Only Subnets Scenario
   Electronic Middlemen Scenario
   New Consumer Marketing Channels Scenario
     MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE


Competitive v’s Cooperative
   A competitive strategy assumes fighting
    against all competitors for the purpose of
    survival and to win
   A cooperative strategy plans for working
    together with specific competitors to gain
    advantage against other competitors.
     MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE


Competitive Strategies
  Frontal assault
   attacks competitor in all areas
   the attacker must have superior resources
     and a willingness to persevere
 Flanking manoeuvre
   attacks where the competitor is weak
   attacker must be patient and willing to
     carefully expand
     MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE


Competitive Strategies (cont.)
  Raise structural barriers
   full product lines
   switching costs
   low entry costs
 Lower the inducement for attack
   lower the expectation of profits by attackers
    MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE


Cooperative strategies
  Joint venture
   pooling of resources
   new, separate entity formed
   involves loss of control
 Value chain partnership
      MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE

Steps to maximise success
 Education and Training
 Review Current Distribution and Supply Chain
   Models
 Understand What Your Customers and
   Partners Expect From the Web
 Re-evaluate the Nature of Your Products and
   Services
 Give A New Role to Your Human Resources
   Department
     Cross Functional Job Descriptions
     Establish Corporate Intranet \ Internet Policies
     MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE


Steps to maximise success (cont.)
   Extend Your Current Systems to the Outside
   Track New Competitors and Market Shares
   Develop A Web-centric Marketing Strategy
   Participate in the Creation and Development of
    Virtual Market Places
   Instil EC Management Style
   Constant environmental scanning
     MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE

Competitive Intelligence on the Internet
   Review Competitors Web Sites
   Analyse Related News Groups
   Examine Publicly Available Financial
    Documents
   Corporate Research Companies
   Solicit Opinions in Chat Rooms
   Interactive Customer Questionnaires
   Avoid Over Reliance
   Push V’s Pull Information Technology
     MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE


Set Implementation Guidelines
   Pilot Project
   Uncover Specific EC Opportunities and
    Applications
   Create Web Team
   Evaluate Outsourcing
   Web site design
   Assessment
     MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE


Uncover Specific EC Opportunities
   Brainstorming
   Consultants
   Vendors
   Review Competitors
   Literature
     MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE


Create Web Team
   Transformational Leadership
   Define Roles
   Assign Functional Skills to Subprojects
   Cross Functional Staffing
   Documentation
     MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE


Evaluate Outsourcing
   Cost
   Expertise
   Benchmarking against vendors other clients
   Loss of control
   Core competencies
     MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE


Assessment
   Measure
   Collect information
   Re-evaluate
   Recommence planning cycle
     MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE


Collect information
   Staff
   Customers
   Suppliers
     MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE


Re-evaluate
   Did it deliver what it was supposed to
   Is it still viable in an ever changing
    environment
   Reassess initial strategy to learn from
    mistakes and strengthen advantages
   Identify failing projects ASAP and determine
    reasons for failure
   Identify control and administrative issues
MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE




    Change Management
     MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE


Need for Change Management
 Environment is always changing
 Change is Natural
 70% of IT projects fail
    MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE


Change does not occur in isolation
                      Task



 Technology                        People



                   Structure
    MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE


Stages of Change
 Unfreeze Present Behaviour
   Creating motivation and readiness for change
 Change the organisational system
   Enabling people to see things differently and
    react differently in the future
 Re-freeze
   Ensuring that the new behaviour will be
    secure against reversion
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The Managing Change Model (Siegal)


                         Evaluating
                          Change

                Managing the Managing the
                people side of organisation side
                      change of change

                      Planning change


Individual response to change   General nature of change
    MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE


Critical Success Factors
 Executive Support
 Transformational Leadership
    Communicating the Vision
    Inspiring
 Sound Implementation Strategy
 Transition Management Team
    Moral authority
    Legal authority
      MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE


Critical Success Factors (cont.)
    Trust
    Communication
    Recognise Resistance
    Normal
     Understand sources and motives
     May derive benefits from the dysfunction
     Maintain personal homeostasis
     Reflects poorly upon past performance
     MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE


Critical Success Factors (cont.)
   Ownership
   Empowerment
   Monitoring
   Feedback

				
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posted:9/28/2011
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