WMES3314: Electronic Commerce

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WMES3314 Electronic Commerce

• Chapter 7
• Implementation

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Introduction

• CISCOs Human Assets
• Fast Start Program
• Pairing peer buddy
• Employee-friendly, result-oriented culture
• Once a company has attracted customers to its web
  site, it must deliver the total customer
  experience that the brand communication promised.
  
• Not only the customer interface work as expected,
  but the company must be able to correctly execute
  transactions initiated through the customer
  interface.

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Why does implementation matter?

• Inappropriate strategy can be partially offset by
  proper implementation, but poor implementation
  will usually result in a company performing
  poorly in the marketplace

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Implementation Challenges for Online Firms

• Five implementation challenges of online firms
• 1. Higher visibility to errors
• Internet firms are closely monitored by the
  media, thus mistakes become magnified
• This can be reduced by a positive marketing
  campaign and through immediate responses to
  problem areas.
• 2. Lower switching costs
• It costs a consumer very little to switch from
  one site to another (click of the mouse)
• The implementation of programs that encourage
  retention of customers could reduce the flight of
  confused or frustrated customers. Example-
  frequent flyer miles for travelers.

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Implementation Challenges for Online Firms
(contd)

• 3. More dynamic competitive environment
• Low barriers to entry result in opportunities for
  competitors and new entrants, when implementation
  is poorly executed
• One could develop differentiation of product or
  service to attempt to elevate the barriers.
• 4. More fluid organizational boundaries
• Increases contact between partnering
  organizations, but elevates the complexity of the
  interactions, minimizes the amount of jargon used
  and have a system for users to receive help.
• 5. More complex linkages
• Increased linkages result in a more bureaucratic
  process, thus slowing the decision process
• Managers must be able to identify the
  complexities that exist within the structure and
  allocate resources to compensate for the
  additional linkages.

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Framework for Implementation the Resource System

• A successful company needs to correctly manage 7
  factors to have a successful resource system
• Human Assets
• Processes
• Organization Structure
• Systems
• Culture
• Leadership
• Partnership

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1. Human Assets

• Most important resource in organization People
  !
• Refers how employees are developed, managed and
  retained.
• 4 basic tasks
• Recruitment
• Selection
• Development
• Retention

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2. Processes

• Defined as the patterns of interaction,
  coordination, communication and decision making
  that employees use to standardize how work is
  done.
• Processes must be configured by online firms
• Resources-allocation processes
• Human resources management process
• Manufacturing and distribution processes
• Payment and billing processes
• Customer support/ handling processes

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3. Organizational Structure for Hybrid
Organizations

• Types of companies
• Pure online company or Pure offline company
• Hybrid- combines both online and offline
• Two types of structures for Hybrid
• Single Organization
• Dual Organization
• Simple illustration of the formation of hybrid
  companies

Single Organization Vs. Dual Organization
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4. Systems

• Defined as routines or established procedures for
  the organization and can be related to any aspect
  of the organization.
• 3 types of systems
• Information Technology Systems (including
  ERP,CRM)
• Evaluation and Compensation Systems
• Supply Chain Management

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4. Systems (contd)

• Information Technology Systems
• Allows employees to share information with one
  another. E.g. Lotus Notes
• Difficulties of IT implementation budget
  slashed
• ERP (Enterprise Resource Planning), e.g. SAP,
  PeopleSoft
• CRM (Customer Relationship Management)
• Supply Chain Management
• The online environment has changed the structure
  of business supply chains and the options
  available to retailers and manufacturers

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4. Systems (contd)

• Evaluation and Compensation Systems
• Not only help companies hold onto their employee
  but also increase those employees satisfaction
  with their jobs.
• The system must link closely to the company
  strategy and reward employees for outcomes that
  promote that strategy
• The system should expose both strengths and
  weaknesses for the employees
• Rewards should be both monetary and non-monetary
• The system should apply to the specific types of
  employees in the company
• Performance judgment should be consistent
• Feedback should go both ways

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5. Culture

• Organization culture is the social context that
  shapes how things get done and the way people
  work in an organization.
• Defined as the pattern of shared values, beliefs
  and assumption that influence opinions and
  actions.
• Best culture for e-Commerce companies
• Entrepreneurial organization culture Start own
  business, involve risk
• Adaptive culture which share the
  opportunity-focused mindset of entrepreneurial
  cultures, combined with a focus on specified
  outcomes, appear to be well-suited to e-commerce
  companies.

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Local Case Study

• The bottom line is human customer capital.
  People are the drivers they make the
  difference
• Stan Shih. http//www.feer.com/articles/2
  000/0009_21/p56a.html

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Acer Corp. Milestone (1976-2001)

• 1976 - Acer is founded
• 1978 - Established the Microprocessor Training
  Center where 3,000 engineers were trained.
• 1986 - Acer beats IBM with 32-bit PCs.
• 1992 - Acer creates the worlds first 386SX-33
  chip set.
• 1993 - ChipUp is licensed to Intel.
• 1994 - Acer introduces worlds first dual-Pentium
  PC.
• 1999 - Acer ranks 1 computer brand in Asian
  Superbrand Survey conducted by Readers
  Digest.
• 2000 - Acer ranks no. 3 in the FEER Review of
  Asias leading
• companies.
• - Stan Shih introduces the iO, a new trend of
  competitive organizational model at the WCIT 2000.

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Acer Corp. Milestone (cont..)

• Now
• Acer are 37,000 people in 232 offices in 41
  countries
• Acer are the worlds 3rd Largest PC producer
• Acer are market-leaders in many segments and
  countries and in the Top 5 in more than 30
  countries (Details in Acer KM Concept)

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Acer Corp. KM Concept II
Culture rests on 4 Pillars

• 1. Human nature is basically good.
• - created and delivered many human-centric
  benefits to its staff
• 2. Customer is No. 1.
• - "Acer 1-2-3" business philosophy customer,
  employees shareholders
• 3. Put knowledge to work for the company.
• - intangible assets (intellectual property) be
  turned into tangible rewards
• - the tradition of "si-fu" (Chinese for
  "teacher")
• - rating Employees on Job Competencies- top
  performance staff, bonus!
• 4. Be pragmatic and accountable
• - Being "down-to-earth, everyone is encouraged
  to calculate risks and
• avoid taking the risks that we cannot
  afford.
• taken from http//global.acer.com/about/
  culture.html

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Local Case Study
Acer KM will lead Global Brand, Local Touch
Stan Shih

• from High-tech
• to No-tech
• to High-Touch

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The Key Success of Acer

• The bottom line is human customer capital.
  People are the drivers they make the
  difference
• Stan Shih. http//www.feer.com/articles/2
  000/0009_21/p56a.html

Acer carewe hear youAcer friends for life
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6. Leadership

• The quality of leadership affects all aspects of
  an organizations performance.
• Ultimately, CEOs are the ones held responsible
  for the organizations performance and
  reputation.
• CEOs need to
• think strategically
• communicate persuasively
• act decisively (strongly, confidently, quality)
• demonstrate ethical behavior and strong
  character
• build a sense of momentum for their firm

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6. Leadership (contd)

• Building a strong management team.
• The shifting role of leadership for e-commerce
  companies
• To operate as high-energy visionaries racing to
  bring investors on board, attracting employees
  willing to work around the clock, sealing
  strategic partnerships in hours or days
• Ability to create flexible, fast-moving,
  adaptive, result-oriented organization
• Foster innovation and develop new intellectual
  capital
• Listen and respond to employees and external
  stakeholders.
• Employ traditional management tools for planning,
  budgeting and coordination and control.

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7. Partnership

• Partnerships are important to online firms for
  several reasons
• Help new companies create complex technical and
  fulfillment infrastructures
• Help provide important marketing and branding
  functions
• Online business depend heavily on partnerships
  for 3 reasons
• The complex technology and fulfillment issues
  involved with starting an e-commerce business,
  most companies cannot afford to do everything on
  their own. E.g. Toys R Us and Amazon.com
• Online companies often need to find exposure
  quickly and create a presence on the Web to
  build the awareness and their brand. E.g.
  Companies that trust Maybank will trust XXX.com
  when they associates it with Mayubank2u.com
  service.
• The nature of online companies makes it easier to
  create partnerships. E.g. its relatively simple
  matter to place a link to another company on a
  website.

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Conclusion

• 7 factors for successful resource system.
• Human Assets
• Processes
• Organization Structure
• Systems
• Culture
• Leadership
• Partnership
• An important aspect of an integrated system is
  the degree to which components work together in
  the marketplace.
• In addition to the blending or mixing of the 7
  parts, the management team must also keep in mind
  6 major principles/ best practice

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Conclusion (contd)

• 6 major principles/ best practice
• Execution is led by senior management not the
  troops
• Hold people accountable for meeting the numbers
• It is not just about the numbers it is also
  about the process
• Continuous improvement is still relevant and
  important
• The customer is the starting point
• Hire and develop the Doers