E-business development plan.ppt

Module 9:E-business Planning

2

Agenda

• E-business development step-by-step

• E-business strategy

• Implementation Planning

Regional Training Workshop for Enterprise Support Agencies to Promote E-business for SMEs in the Greater Mekong Subregion (GMS), 26-28 June 2006, Bangkok

3

E-business development step-by-step

Planning Implementation Operation


4

E-business development step-by-step

What are the steps to success ?

STEP 1 – e-Business strategy

STEP 2 – Implementation plan

STEP 3 - Implementation

STEP 4 - Operation

Planning

Implementation

Operation


5

E-Business Strategy

Fundamental questions …..

How to develop e-business ?

What type of e-business?

Why you want to develop that type of e-business ?

E-business strategy

….and answers.

Implementation plan


6

E-Business strategyWhat is strategy ?

Family

Inequalities

Environment$$$

Now Future


Competition

7

E-Business strategy

1. Propose you future situation

2. Assess your current situation (internal/external)

3. Choose your strategy

Environment$$$

Now Future


8

E-Business strategyPropose you future situation

• Should be specific (time and figures)• Profit oriented

“Increase revenue by 30% in 2 years”“Increase market share by 50% in 1 year”

• Cost oriented“Reduce cost by 20% in 1 year”

• Client oriented

“Increase client satisfaction by 50% in 2 years”

Market

Efficiency

Improve customer servicesRegional Training Workshop for Enterprise Support Agencies to Promote E-business for

SMEs in the Greater Mekong Subregion (GMS), 26-28 June 2006, Bangkok

9

Assess your current situation

• Internal factorsStrengthsWeaknesses

• External factorsOpportunitiesThreats

E-Business strategy


10

E-Business strategyTo conduct the SWOT Analysis you should

consider:• What is your business sector?• Who are the customers?• What are the current practices of selling and

buying?• Who are the major competitors? (How intense is

the competition?)• What e-strategies are used, by whom?• What are the major opportunities and threats?• What are the existing and potential partnerships

for developing e-Business?Regional Training Workshop for Enterprise Support Agencies to Promote E-business for


11

E-Business strategy

SWOT Analysis

• Internal factors

Strengths Original productPopular productHigh quality

Weaknesses Lack of IT expertiseNo WEB presence

• External factorsOpportunities

External marketNew trendB2B market places

Threats Competitors


12

Strengths (S)Original productPopular product

High quality

Weaknesses (W)Lack of IT expertiseNo WEB presence

Opportunities (O)External market

New trendB2B market places

Threats (T)Competitors

INTERNAL FACTORS

EXTERNAL FACTORS

SO Strategies Generate strategies

here that use strengths to take

advantages of opportunities

WO StrategiesGenerate strategies here

that take advantage of opportunities by

overcoming weaknesses

ST Strategies Generate strategies

here that use strengths to avoid

threats

WT Strategies Generate strategies here that minimize weaknesses and

avoid threats

SWOT Diagram


13

Issues in e-Business Strategy

• Advantages• Chance to capture

large markets• Establishing a brand

name• Exclusive strategic

alliances

• Disadvantages• Cost of developing initiative is

usually very high• Chance of failure is high• System may be obsolete as

compared to second wave arrivals

• No support services are available at the beginning

To be a first mover or a follower?


14

Issues in e-Business Strategy

E-Business Awareness / Owner commitment• Senior managers tend to:

• Know the whole spectrum of business

• Possess knowledge and authority to lead the e-business adoption


15

Issues in e-Business StrategyShould you join an e-Business Portal?

• Several benefits

• Costs and limitations

• E-Marketing

• sell-side and buy-side infrastructure

• Which Portal to join?


16

E-Business strategy

1. B2B e-business

2. Target external market

3. Develop own website and joint an B2B Portal

4. Use ISP to host websiteRegional Training Workshop for Enterprise Support Agencies to Promote E-business for


17

E-Business strategy

How to know if the strategy will achieve the proposed result?“Increase revenue by 30% in 2 years”


18

Business Case

• Business case is used to:

• Provide justification for investments

• Provides bridge between plan and the execution

• Clarifies how the organization will use resources to

accomplish the e-strategy


19

Cost-Benefit and Risk Analysis• Revenue model

• Properly planned revenue model is a critical success factor

• Revenues from sales depend on customer acquisition cost and advertisement

• Must be figured into the analysis• Costs

• Implementation and operation costs• Recover the investment

• Should be able to recover the investment in up to 3 years


20

E-Business Strategy• Outputs:

• Where you want to be in the future• Why e-business• What type of e-business (Estimated Scope)• Business case

• Estimated Time• Estimated Cost


21

How to implement e-business

Implementation planning

• Start• Estimated scope• Estimated time• Estimated cost

• End• Planned Activities• Planned schedule• Human resources• Planned

procurement• Planned budget• Manage Risks


22

Implementation planning

Refine Scope

Break the outputs in

small pieces (WBS)

Identify Activities

Identify Resources

Develop Schedule

Manage Risks

Plan procurement

Plan Budget Project Plan


23

Refining Scope• Example:

• One initial page with the basic information regarding the company and links to other pages with further information on its products, the company itself, and contact information.

• Try to get the details• Building an Order: shopping cart size, history• Tax and Shipping: calculated before purchase?• Payment options: credit cards, purchase orders

• Priorities1. Must have2. Nice to have3. Maybe in the future• These priorities are also influenced by budget, development time, etc


24

Work Breakdown Structure (WBS)e-business

e-business web site

Off-line infrastructure

Web site layout

Web site Content

Web service infrastructure

Network ready

Web server ready

Hardware installed

Webserver installed

Web site text ready

Product ‘s images ready

Internal capacity on e-business

operation

Internal capacity on communications with

foreign clients

Intermal capacity on maintenance of web content

Intermal capacity on maintenance of web service


25

Identify ActivitiesOutcomes Activities

Web site layout - Develop web site layout

Web site text ready - Develop content of web site

Product’s images ready - Obtain images of green cooperative’s products- Process the images to post in the web site

Network ready - Install Internet access

Hardware installed - Install web server (Hardware)

Web server installed - Install web server software

Internal capacity on maintenance of web content

- Install software for content management- Develop internal capacity on maintenance of web content

Internal capacity on maintenance of web service

- Develop internal capacity on maintenance of web service

Internal capacity on communications with foreign clients

- Develop procedures for communications with foreign clients- Develop templates for communications with foreign clients- Develop internal capacity to deal with foreign clients


26

Identify ResourcesTasks Resources Required skills

- Develop web site layout - External - Web design

- Develop content of web site - 1 Internal staff – 2 hours per day, for up to 3 months

- English language, cooperative’s history, products and services.

- Obtain images of green cooperative’s products

- 1 Internal staff - Photo shooting

- Process the images to post in the web site

- External - Web design

- Install Internet access - External - Data Network

- Install web server (Hardware) - External - Hardware installation

- Install web server software - External - Web server installation and configuration

- Install software for content management

- External - Content management configuration


27

Develop Schedule# Activity Predeces

sorMonths

1 2 3 4 5 6 7 8 9 10 11 12

1 Develop content of web site

2 Obtain images of green cooperative’s products

3 Process the images to post in the web site

2

4 Develop web site layout

5 Install Internet access

6 Install web server

7 Install web server software 6

8 Install software for content management

6


28

Procurement Plan

• Conduct your own research to be prepared to purchase. It includes things such as current technologies and possible companies to contract.

• To plan the procurement you should know basically what to purchase and when to purchase


29

Budget Plan

• Add costs of internal and external resources

• Estimate the monthly expenditure


30

Manage Risk• Identify risks

• ISP, e-market Portal, Web developers• Financial

• What to do?• Avoid

• Revise planning (scope, activities, schedule, budget)

• Mitigate• Reduce impact• Reduce probability


31

Project Plan• The project plan is the compilation of all planning

documents developed. It describes how the project will be implemented and it should be used is a guidding tool.

• Should not be considered a static document. Make sure that the project is implemented according to the plan but also conduct the on-going planning and update the project plan to reflect the changes.

• It is a good practice to keep the baselines regarding time (initial schedule), cost (Budget plan), and scope (Scope statement). They will be useful tools to monitoring the implementation of the project.


32

Summary• Planning, implementing and operating• Planning = strategy + implementation plan• Strategy = Future, now (internal/external), choices• Strategy will reach the target? Business case• Implementation plan

• Scope• Activities• Resources• Schedule• Procurement• Risks• Project Plan


33

Q & A

Conclusion


E-business development plan.ppt

Documents

Transcript of E-business development plan.ppt