Week 3

MGT 235

Planning, Process, and Structure in Electronic Business

Week 3

Planning Your E-Business Path:Choices of Development

Choose to: Support transactions

externally internally

Provide service externally internally – this area is overlooked – for instance

support managers and workers to work from home

Or both?

*Adapted from www.dotcomadvisor.com – 2000


Choose to do: Nothing Minimal online presence (e.G., HR information) On-line catalog On-line transactions Automated value chain (e.G., Online

procurement) Market making site Super market site


Choose to do as: Additional outlet (extension of company) Separate online division of company E-business only (drop “mortar” existence) Partnership

Choices depend on: Nature of current business Competitive environment operating within Resources available

Planning Your E-Business Path

Industry and competitive analysis SWOT

Identify your organizational objectives Want to increase effectiveness of salesperson’s

time

Identify ways e-Business can help achieve the objectives Permit customers to order online / salesperson

can spend time showing new products

Planning Your E-Business Path

Determine what resources are required Need: website, database, computer to process

orders, trained user to process orders Plan the implementation

Outsource web site creation / maintenance, plan content, train users

Determine how you will monitor e-Business results / performance Require periodic site reports from ISP,

measure increase in new product sales

Motivation General pressure to “get on the net” Promote business entity

Information Financial HR

Technology issues Simple, In-sourced

Level I E-Commerce Development:Minimal


Level I E-Commerce Development:Minimal

Purchasing Production Sales

HumanResources

Finances


Motivation Pressure from customers and competitors

Information Product Service

Technology issues Searching, maintenance (e.g., changing product

information) Customer personalization On-line activity tracking

Level II E-Commerce Development:On-line Catalog


Level II E-Commerce Development:On-line Catalog

Purchasing Production Sales

HumanResources

Finances

Marketing


Motivation Exploit Internet as new channel of distribution

Information Catalog / order

Technology issues Interactivity Integration of core businesses functions (e.g., sales and

accounting) Business issues

Order fulfillment capacity Building site traffic

Level III E-Commerce Development:On-line Transactions


Level III E-Commerce Development:On-line Transactions

Purchasing Production

HumanResources

Finances

MarketingSales


Motivation Customers and suppliers “want” more info Reduce cycle times and costs

Information Manufacturing, purchasing, shipping

Technology issues Systems integration Outsourcing

Business issues Sharing operational information with external entities

Level IV E-Commerce Development:Automated Value Chain


Level IV E-Commerce Development:Automated Value Chain


HumanResources

Finances

MarketingSales


Motivation Product comparisons, e.g., http://www.amazon.com

Information Competitor’s products/services Third-party product/service comparisons

Technology issues Handling traffic loads Monitoring/mining traffic

Business issues Corporate identity Objectivity of product comparisons

Level V E-Commerce Development:Market Making


Level V E-Commerce Development:Market Making


HumanResources

Finances

MarketingSalesReverse

Marketing

Competitors

Motivation Become the “preferred” one-stop shop (i.e., marketplace),

e.g., http://www.sabre.com/

Information Complimentary products/services

Technology issues Integrating associates systems/information

Business issues Managing customer AND supplier suggestions and

requirements

Level VI E-Commerce Development: Super Market Making


Level VI E-Commerce Development: Super Market Making


HumanResources

Finances

MarketingSalesReverse

Marketing

Complimentors

Competitors

Starting An E-Business

Are you an entrepreneur? Can you start and grow the business?

Identify and define your e-Business “idea” Create business plan Identify intended customer market Identify legal business form Get financing Implement plan / operate business

Identify and Define Your e-Business Idea

Is it unique? Or is it an “internet remake” of an existing idea?

Is it internet suitable? Does its value come from faster or wider

distribution? Does it exploit other online advantages? Would the idea be a “first mover”? Is it scalable? Can it adapt quickly to changes in the e-

Business environment?

The e-Business Plan: The Purpose

An assessment of a business idea Critical Objective Un-biased Unemotional

Identifies weaknesses and oversights Highlights strengths Used to inform potential investors

The e-Business Plan:The Contents

Table of contents Plan overview / executive summary Description of e-Business idea Description of products / services Vision and Mission statements Competitive analysis

Industry, target market, competition Plans with short-term details:

Marketing, financial, operations, monitoring Major risks – strategies for coping Plan for the future for the principals

The e-Business Plan:Competitive Analysis

Industry Characteristics, size trends, growth, regulations, labor

availability, distribution issues, etc.

Target market Demographics, segment characteristics, trends, data

availability, etc.

Competition Players (their positions, their strengths / weaknesses),

barriers to entry, potential entrants, etc.

The e-Business Plan:Explains Operational Details

For marketing, financing, operations, management / monitoring Objectives Strategies Resources required Budgets Actions

The e-Business Plan:Summary

Identify your organizational objectives Identify ways e-Business can help achieve

the objectives Industry and competitive analysis Identify resources are required Plan the implementation Determine how you will monitor e-

Business results / performance

Week 3

Documents

Transcript of Week 3