Office of Electronic Commerce Funding Strategies Study

1
Office of Electronic Commerce Business Case
Development
December 7, 2000
Final Presentation to the Office of Electronic
Commerce
2
Introductions

• Hsin-Yi Chen
• Patrick Hawke
• Yung-Ren Lai

• Diego Maramba
• Justin Osborne
• Karen Rigby

• Faculty Advisor David Darcy

3
Agenda

• Background
• Project Goal
• Methodology
• Interviews
• Government to Business Operations
• Business Case - 4 Step Process
• Results
• Recommendations

4
Project Goal

• To develop a deeper understanding of the
  strategies and tactics appropriate for building a
  business case for government-to-business
  electronic commerce project selections

5
Methodology

• Primary Research
• Interviews individual agencies, subject matter
  experts
• Secondary Research
• Literature
• Web sites
• Case studies

6
Interviews
Judith Spencer
David Temoshok

GSA
GSA
Booz Allen Hamilton
Deborah Diaz

GSA
GSA
Gerry Stuck
Brad Dugger

NSF
State of Tennessee
Matthew Maginniss
Al Iagnemmo

JECPO Price Waterhouse Coopers
GSA Federal Supply Service
7
Interviews
Dr. Violina Rindova
Tony Trenkle

R.H. Smith School of Business Strategic
Management Professor
SSA
Harold Roach
P.K Kannan

GSA Federal Supply Service
R.H. Smith School of Business Marketing Professor
Tom Beecher


USPS Imagitas

8
Case Dimensions

• Idea Generation
• Customer / Market Research
• Technology Development
• Risks
• Approval Process
• Success Measures

9
Government to Business
10
G-to-B Operations

• Public Sector
• Cost reduction
• Stakeholders
• Highly risk averse

• Private Sector
• Strong profit motive
• Shareholders
• Risk tolerant

Government greater emphasis upon
qualitative factors
11
Steps in Developing a Business Case
12
Business Case - 4 Step Process

Step 1 Identification and selection
Step 2 Value chain analysis
Step 3 Implementation
Step 4 Feedback and review
13
Business Case - Step 1

• Identification of sustainable projects
• Top tiered leadership
• Government task force
• Individual agency
• Agency sub-unit

14
Business Case - Step 2

• Value chain analysis

Service
Operations
Delivery
Procurement
Stakeholders Taxpayers Corporations Congress
15
Business Case - Step 3

• Implementation

Late Majority
Early Adopters
Number of Users
Innovators
Early Majority
Laggards
16
Business Case - Step 4

• Feedback / Review of Success or Failure
• Financial payback methods
• Customer surveys and feedback
• Alignment with current and future goals

17
Results
18
Idea Generation

• Legislative mandates
• Private sector input
• Environmental changes
• Initiatives by other agencies

19
Customer / Market Research

• Customers technical sophistication
• Computer literacy
• Internet savvy
• Interaction with customers
• Customer relationship
• Know your customer

20
Technology Development

• Level of technology sophistication
• Business nature
• Technology maturity
• Approach of technology development
• Internal development
• Outsourcing
• Multi-agency task force

21
Risk

• First Level security of transactions
• Second Level user adoption

22
Approval Process

• Top down
• Generated from the executive level
• Bottom up
• Pushed upward through the organization
• Entrepreneurial culture

23
Success Measures

• Cost/benefit analysis
• Operating cost reduction
• Greater efficiency
• Customer and employee satisfaction

24
Recommendations
25
Idea Generation

• Foster an Entrepreneurial Culture
• Innovation
• Ideation
• Know Your Customer
• Customer Focus
• Customer Needs

26
Customer/Market Research
27
Technology Development
Multiple Agencies
C
Non-Tech Driven Business
B
B
A
Low Technology Maturity
C
C
B
28
Risk

• Security
• Authentication
• Confidentiality
• Integrity
• Non-repudiation
• User adoption
• Public education
• Marketing

29
Approval Process

• Project Champion
• Collect information
• Create a Compelling Case
• Ensure project objectives
• Reconcile details
• Consistency in management

30
Success Measures

• Good Metrics
• Directional
• Quantitative
• Worthwhile
• Two Categories
• Project Oriented
• Customer Oriented

31
Final Comments

• Four-step model
• Six e-commerce case dimensions
• Best practices

32
Questions