E-Business Strategies and Development

Prof.Dr. Yang DehuaSchool of Economics and ManagementTongji University

Outlines

Competition Strategies Planning Fundamentals Implementation of Changes Developing Business Solutions Implementation of e-Business Information S

ystems

Competition Strategies

Pressures Being Faced by Enterprise 3Cs/4Cs

Rapid Development of the Internet technologies

Agile Companies and Virtualization The New Economy

Business Strategies—Ends/Means

Vision - Ends Mission - Means Goals/objectives - Ends Policies – Elements of guidance Business rules – Elements of guidance Environmental analysis - Influences Courses of action - Means

Strategic Use of IT

Strategic Uses of Information Technology Strategic Information Systems The Main Lever in Modern Enterprises Examples

Planning Fundamentals

Organizational Planning Team building,modeling, and consensus Evaluating what an organization has accomplish

ed and the resources they have acquired Analyzing the environment(PESTEL) Anticipating and evaluating the impact of future

development

Components of Organizational Planning

Building a Shared Vision Deciding on What Goals They Want to Achi

eve Making Strategies Deciding What Actions to Take to Achieve

Their Goals

Components of Organizational Planning

Analyze the organization’s Environm

ent

Forecast Internal & external Developm

ents

Analyze accomplishments and resour

ces

Team building,modeling, and

consensus

Establish: Vision Mission Goals O

bjectives

Articulate the organizational plan

Develop Implementation methods

& controls

Develop Strategies Policies& Tacti

cs

Methodologies of Organizational Planning

The Scenario Approach Virtual world exercises Environment development(trends):

Technology Competitive imperatives Deregulation Customer sophistication/expectations Others

Methodologies of Organizational Planning

SWOT Analysis External Internal

Business Models Conceptual framework that expresses the underl

ying economic logic and system that prove how an enterprise can deliver value to customers at an appropriate cost and make money

Business Models

Components of Business Models Customer value Scope Pricing Revenue resource Connected activities Capabilities Sustainability

Business/IT Planning

Business/IT Planning Alignment

Customer and Business Value Visioning

Business Strategies and Models

Business/IT Strategies and Architecture

Business Application Development and Deployment

Key Insights Key Objectives Priorities

Feedback/Impact

Information Technology Architecture

IT Architecture Technology platform Data resources Application architecture IT organization

Identifying Business/IT Strategies

External D

rivers

Internal Drivers

Global Market Penetration

Product and Service Transformation

Cost and Efficiency Improvements

Performance Improvement in Business Effectiveness

Identifying Business/IT Strategies

Examples Market creator Transaction intermediary Informediary Self-service innovator Supply chain innovator Channel mastery

Identifying Business/IT Strategies

Boston Consulting Group Matrix

Identifying Business/IT Strategies

Description of the Model One axis shows the market share relative to the industry l

eader which is always the leftmost circle.The other axis shows market growth rate for the industry.A circle is drawn for each competitor. The size of each circle represents that company's dominance.

Characterize Your EnterpriseThe expert system will position your enterprise on the chart based upon your description of:

Identifying Business/IT Strategies

share of market condition of the market You can trace through t

he supporting analysis and its conclusions, adjusting your input until you are satisfied your description accurately characterizes your enterprise.

Identifying Business/IT Strategies

Stars High growth

High shareBusiness is likely to generate enough cash to be self sustaining. Recommended tactics:

promote aggressively expand your product or service invest in R & D

Identifying Business/IT Strategies

Cash Cows Low growth

High share Business can be used to support other business u

nits. defend & maintain

Identifying Business/IT Strategies

Question Marks High growth

Low share Business requires a lot of cash to maintain mark

et share. invest more cash or, divest

Identifying Business/IT Strategies

Dogs Low growth

Low share Business is a cash trap. focus on short term avoid risky project limited future

Identifying Business/IT Strategies

Importance of P

lanned IS

Importance of Current IS

Transform Strategic

Support Factory

McFarlan and McKenney’s Model

Identifying Business/IT Strategies

Nolan Technology Development

Failure Initiation

Contagion

Decline Control

Maturity

Applications

Time

Business Application Planning

Business Application Planning IT proposals for addressing strategic business pr

oblems Business case for investing in e-business project

s Planning for application development and imple

mentation

Business/IT Architecture Planning

Repository

Business Models

Application Components

E-Business Strategies: SWOT, Goals, Requirements, Constraints

E-Business Processes: Internal & Inter-enterprise, Organizational, Process & Data Models

E-Business Application Architecture: e-Business, e-Commerce,Component-based Applications

Technology Infrastructure: IT Architecture,Component Development Methodology

Implementation Challenges

Implementing Information Technology Impact introduced by implementation User resistance Business continuity management Business process reengineering

Impact Introduced by Implementation

New Business Initiatives

Best Practices

Model Best Practices

Improve Efficiency

Level of Changes

Scope of Business Ch

ange(Examples)Single Fu

nctionCore Proc

essesSupply Ch

ainExtended Sup

ply Chain

Improve Efficiency

Process Reengineering

Redefine Core Business

Change Management

Change Management Technology Process People Operational Strategic

Change Management

Technology Process People

Operational

StrategicIm

pact on Business

Level of Difficulty/Time to Resolve

High

High

Low

Low

Enterprise Architecture Supplier Partnership System Integrato

rs Outsourcing

Technology Selection Technology Support Installatio

n Requirements

Ownership Design Enterprise

wide Processes Inter-enterprise Proc

esses

Change Control Implementation Management Support Pr

ocesses

Change Leaders Loose/Tight Controls Executive Sponsorship & Support Aligning on Conditi

ons of Satisfaction

Recruitment Retention Training Knowledge Transf

er

Systems Development

Development Models Development Methodologies Implementation Issues

The System Approach

The System Approach System Thinking

Input

Poor Sales Management

Inadequate Selling Effort?

Out-of-Date Sales Procedures?

Poor Sales Performance?

OutputProcessing

Control

System Development Cycle

System Development Cycle Systems investigation Systems analysis Systems design Systems implementation Systems maintenance

Information Systems Development Methodologies

Life-Cycle Based Model Requirements Analysis Design Implementation Testing Maintenance

Information Systems Development Methodologies

Prototyping Model Identify the end users’ business requirements Develop business system prototypes

[Prototyping Cycle] Revise the prototypes Use and maintain the accepted business system

[Maintenance Cycle]

Starting Systems Development

Feasibility Study Organizational Technical Economic Operational

Systems Analysis

Systems Analysis Organizational analysis Present systems analysis Functional requirements analysis

Systems Design User interface design Data design Process design

System Specifications

System specifications User interface Database Software Hardware and network Personnel

End User Involvement

End User Involvement Users requirements End user computing

Implementing Business Systems

Implementation Activities Acquisition of Hardware, Software, and Service

s Software Development or Modification End User Training System documentation System conversion

Hardware Evaluation

Hardware Evaluation Factors Performance Cost Reliability Compatibility Technology Ergonomics Connectivity

Hardware Evaluation

Scalability Software Support

Software Evaluation

Software Evaluation Factors Quality Efficiency Flexibility Security Connectivity Language Documentation

Software Evaluation

Hardware Cost Others(Hardware evaluation factors)

Other Implementation Activities

Other Implementation Activities Testing Documentation Training Conversion methods

Conversion Methods

Conversion methods Parallel Pilot Phased Plunge

Maintenance

System Maintenance Trouble shooting New functions Adapting to new businesses