E-business strategy - OBS 784obs784.weebly.com/uploads/9/2/9/0/929005/chapter_5.pdf · Slide 5.1...
3
Slide 5.1 E- business strategy business strategy Chapter 5 Slide 5.3 Management issues Management issues How does e How does e-business strategy differ from business strategy differ from traditional business strategy? traditional business strategy? How should we integrate e How should we integrate e-business business strategy with existing business and IS strategy with existing business and IS strategy? strategy? How should we evaluate our investment How should we evaluate our investment priorities and returns from e priorities and returns from e-business? business? Slide 5.4 Michael Porter on the Internet Michael Porter on the Internet Porter, M. (2001) Strategy and the Internet, Harvard Business Review, March 2001, 62–78. The key question is not whether The key question is not whether to deploy Internet technology to deploy Internet technology – companies have no choice if companies have no choice if they want to stay competitive they want to stay competitive – but how to deploy it but how to deploy it Slide 5.5 Alternative definitions of strategy Alternative definitions of strategy What is strategy? What is strategy? ‘ Defines how we will meet our objectives Defines how we will meet our objectives’ ‘ Sets allocation of resources to meet goals Sets allocation of resources to meet goals’ ‘ Selects preferred strategic option to Selects preferred strategic option to compete within a market compete within a market’ ‘ Provides a long Provides a long- term plan for the development term plan for the development of the organization of the organization’ Slide 5.7 Sell Sell- side side e-commerce strategy (Chapters 8 commerce strategy (Chapters 8 & 9) or e & 9) or e-marketing / E marketing / E-CRM Strategy CRM Strategy Sell Sell- side e side e- commerce is a commerce is a channel strategy channel strategy Objectives for online contribution percentage Objectives for online contribution percentage should drive our strategy should drive our strategy Our e Our e- commerce strategy defines how we should commerce strategy defines how we should Hit our channel leads and sales targets Hit our channel leads and sales targets Acquisition, Conversion, Retention, Service, Profitability Acquisition, Conversion, Retention, Service, Profitability Communicate benefits of using this channel Communicate benefits of using this channel Prioritize products available through channel Prioritize products available through channel Prioritize audiences targeted through channel Prioritize audiences targeted through channel Select partners for this channel Select partners for this channel Channel strategy thrives on Channel strategy thrives on differentials differentials BUT, need to manage BUT, need to manage channel integration channel integration Slide 5.8 Buy Buy-side side e-commerce strategy (Chapters 6 & 7) commerce strategy (Chapters 6 & 7) or e or e-supply chain management strategy supply chain management strategy Buy Buy-side e side e-commerce strategy is about maximizing commerce strategy is about maximizing operational efficiencies while improving customer service operational efficiencies while improving customer service quality quality Operational efficiency Operational efficiency KPIs KPIs should drive our strategy should drive our strategy Our buy Our buy-side e side e-commerce strategy defines how we should commerce strategy defines how we should Automate internal processes Automate internal processes Link internal resource management systems with Link internal resource management systems with external purchasing systems external purchasing systems Prioritise suppliers / partners collaborating using this Prioritise suppliers / partners collaborating using this channel channel Prioritise applications for E Prioritise applications for E-SCM SCM – create a roadmap create a roadmap Involves selection of appropriate strategic partners Involves selection of appropriate strategic partners
Transcript of E-business strategy - OBS 784obs784.weebly.com/uploads/9/2/9/0/929005/chapter_5.pdf · Slide 5.1...
Slide 5.1
EE--business strategybusiness strategy
Chapter 5
Slide 5.3
Management issuesManagement issues
How does eHow does e--business strategy differ from business strategy differ from traditional business strategy?traditional business strategy?
How should we integrate eHow should we integrate e--business business strategy with existing business and IS strategy with existing business and IS strategy?strategy?
How should we evaluate our investment How should we evaluate our investment priorities and returns from epriorities and returns from e--business?business?
Slide 5.4
Michael Porter on the InternetMichael Porter on the Internet
Porter, M. (2001) Strategy and the Internet, Harvard Business Review, March 2001, 62–78.
The key question is not whether The key question is not whether to deploy Internet technology to deploy Internet technology ––companies have no choice if companies have no choice if they want to stay competitive they want to stay competitive ––but how to deploy itbut how to deploy it
Slide 5.5
Alternative definitions of strategyAlternative definitions of strategy
What is strategy?What is strategy?�� ‘‘Defines how we will meet our objectivesDefines how we will meet our objectives’’
�� ‘‘Sets allocation of resources to meet goalsSets allocation of resources to meet goals’’
�� ‘‘Selects preferred strategic option to Selects preferred strategic option to compete within a marketcompete within a market’’
�� ‘‘Provides a longProvides a long--term plan for the development term plan for the development of the organizationof the organization’’
Slide 5.7
SellSell--sideside ee--commerce strategy (Chapters 8 commerce strategy (Chapters 8 & 9) or e& 9) or e--marketing / Emarketing / E--CRM StrategyCRM StrategySellSell--side eside e--commerce is a commerce is a channel strategychannel strategyObjectives for online contribution percentageObjectives for online contribution percentageshould drive our strategyshould drive our strategyOur eOur e--commerce strategy defines how we shouldcommerce strategy defines how we should
Hit our channel leads and sales targetsHit our channel leads and sales targets�� Acquisition, Conversion, Retention, Service, ProfitabilityAcquisition, Conversion, Retention, Service, Profitability
Communicate benefits of using this channelCommunicate benefits of using this channelPrioritize products available through channelPrioritize products available through channelPrioritize audiences targeted through channelPrioritize audiences targeted through channelSelect partners for this channelSelect partners for this channel
Channel strategy thrives on Channel strategy thrives on differentialsdifferentialsBUT, need to manage BUT, need to manage channel integrationchannel integration
Slide 5.8
BuyBuy--side side ee--commerce strategy (Chapters 6 & 7) commerce strategy (Chapters 6 & 7) or eor e--supply chain management strategysupply chain management strategy
BuyBuy--side eside e--commerce strategy is about maximizing commerce strategy is about maximizing operational efficiencies while improving customer service operational efficiencies while improving customer service qualityqualityOperational efficiency Operational efficiency KPIsKPIs should drive our strategyshould drive our strategyOur buyOur buy--side eside e--commerce strategy defines how we shouldcommerce strategy defines how we should
Automate internal processesAutomate internal processesLink internal resource management systems with Link internal resource management systems with external purchasing systems external purchasing systems Prioritise suppliers / partners collaborating using this Prioritise suppliers / partners collaborating using this channelchannelPrioritise applications for EPrioritise applications for E--SCM SCM –– create a roadmapcreate a roadmap
Involves selection of appropriate strategic partnersInvolves selection of appropriate strategic partners
Slide 5.9
Relationship between e-business strategy and other strategies
Slide 5.10
What happens where there is What happens where there is no eno e--business strategy?business strategy?
Missed opportunities for additional sales on Missed opportunities for additional sales on the sellthe sell--side and more efficient purchasing side and more efficient purchasing on the buyon the buy--sideside
FallFall--behind competitors in delivering online behind competitors in delivering online services services –– may become difficult to catchmay become difficult to catch--up, up, for example, for example, TescoTesco, Dell, Dell
Poor customer experience from poorly Poor customer experience from poorly integrated channelsintegrated channels
Slide 5.11
A generic strategy process model
Slide 5.12
Dynamic e-business strategy modelSource: Adapted from Kalakota/Robinson, EBUSINESS 2.0 © 2001, 1999 Pearson Education, Inc. Reproduced by permission of Pearson Education, Inc.
Slide 5.13
Elements of strategic situation analysis for the e-business
Slide 5.14
Summary applications of a portfolio analysis
Slide 5.16
PorterPorter’’s five forcess five forces
Power ofsuppliers
Bargainingpowers ofcustomers
Extent of rivalrybetween
competitors
Threat ofsubsitutes
Threat of newentrants
The business
Source: adapted with the permission of The Free Press, a Division of Simon & Schuster, Inc., from COMPETITIVE STRATEGY: Techniques for Analyzing Industries and Competitorsby Michael E. Porter. Copyright © 1980, 1998 by The Free Press. All rights reserved
Slide 5.17
Activity Activity –– Impact of InternetImpact of Internet
For one of the industries below, assess For one of the industries below, assess how the Internet has changed the how the Internet has changed the competitive forces, for example, has it competitive forces, for example, has it increased or decreased power of suppliers increased or decreased power of suppliers and customers?and customers?Industries:Industries:�� BankingBanking�� SupermarketsSupermarkets�� Oil industryOil industry�� Rail industryRail industry
Slide 5.20
An evaluation tool relating information to business value. Source: Marchand et al. (2002)
Slide 5.26
Strategic options for a company in relation to the importance of theInternet as a channel
Slide 5.27
Using the Internet to support different growth strategies
Slide 5.28
Main Strategy DecisionsMain Strategy Decisions
1.1. EE--business channel prioritiesbusiness channel priorities
2.2. Market and product development strategiesMarket and product development strategies
3.3. Positioning and differentiation strategiesPositioning and differentiation strategies
4.4. Business, service and revenue modelsBusiness, service and revenue models
5.5. Market place restructuringMarket place restructuring
6.6. SupplySupply--chain management capabilitieschain management capabilities
7.7. Internal knowledge management capabilitiesInternal knowledge management capabilities
8.8. Organisational Organisational resourcingresourcing and capabilitiesand capabilities
