E-Business Design

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E-Business Design
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Outline

• Design and Strategy
• Phases
• Why e-Businesses Fail

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E-Business Design

• Self-Diagnosis
• Recent customers, businesses, and technological
  trends
• Reverse the Value Chain
• Putting customer needs first
• Choose a Focus
• Service excellence, operational excellence,
  continuous-innovation excellence
• Execute

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E-business Strategy

• About the uncertain future
• Based on assumptions, premises, and beliefs about
  customer priorities, technology evolution,
  competition, and the core competencies

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Continuous Planning with Feedback

• Allows strategy to evolve through discovery of
  what works and what does not
• E-business strategy formulation
• Phase 1 Knowledge building
• Phase 2 Capability evaluation
• Phase 3 E-business design
• E-business blueprint
• Phase 4 Blueprint design
• Phase 5 Business case creation
• Phase 6 Blueprint execution

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Phase 1 Knowledge Building

• Enables managers to understand customers
  priorities
• Categorizing customers
• Changing customer priorities
• Targeting customers
• Adding value
• Dazzling customers
• Distributing products
• Analyzing the environment and industry trends
• Understanding technology trends
• Prioritizing in the supply chain
• Knowing the competitors

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Phase 2 Capability Evaluation

• Assessing capabilities
• Determining strengths and weaknesses
• Aligning firms vision and capabilities

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Phase 3 e-Business Design

• Select design
• Category killer
• Unique customer need remain ahead of competition
• Channel reconfiguration
• Directly access customers
• Transaction intermediary
• Process purchases
• Infomediary
• Reduce search cost
• Self-service innovator
• Services customers employees can use directly
• Supply chain innovator
• Streamline interactions among all parties in the
  supply chain
• Channel mastery
• Sales and service channel supplement to existing
  channel

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Phase 3 e-Business Design

• Refinement
• Customer selection
• Customer experience
• Customer capture
• Scope of design
• Ease of doing business
• Organizational systems

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Phase 3 e-Business Design

• Clarify differentiation
• Product features
• Marketing channels
• Service and support tailoring
• Brand / image positioning
• Price

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E-business Blueprint

• Map course for creating an integrated enterprise
• Reduce chaos
• Balance opportunities for improving app
  infrastructure by prioritizing correctly
• Achieve the right project mix
• Fills gap between strategic planning and apps
• Provides common language for executives
• Provides info and decision context

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Levels of Applications

• Isolated apps
• Collection of components/modules combined into
  one unit that performs one function on a limited
  scale
• Integrated apps
• Collection of many apps capable of performing an
  independent function on a large scale
• App blueprint
• Family of apps functioning together for a common
  purpose
• Enterprise framework
• Collection of app blueprints tightly integrated
  to support the business model

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Phase 4 E-business Blueprint Planning

• Active projects are constantly updated, revised,
  and prioritized
• Prioritize
• Manages streams of innovation
• Plans for long-term success
• Business case for action
• Details of blueprint plan
• App implementation
• execution

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Phase 4 Prioritization Blueprint

• Investment in integration
• Capital budgeting, investing in new technologies,
  and allocating scarce resources
• Project types
• Incremental Derivatives, add-ons, and
  enhancements
• Break-through substantial changes in firm
  foundation
• Platform new structural foundation

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Phase 4 Prioritization Blueprint

• Aim of overall e-business design
• Scope
• Classify and analyze the appl frameworks
• Prioritize
• Execution plan

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Phase 5 E-business Blueprint Case

• Develop clarity of purpose that allows scarce
  resources to be targeted for maximum results
• Developed using a cross-functional process and
  varying people and and skills

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Phase 5 Business Case Elements

• Project Justification
• Strategic
• Operational
• Technical
• Financial
• Preliminary Scope of the Project Assessment
• Organizational
• Functional
• High-level app architecture
• High-level project plan
• Resource requirements
• Feasibility Assessment
• Financial
• Organizational / Cultural
• Technical
• Suppliers, partners, and customers

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Phase 6 Execution Blueprint

• Detailed pattern for execution
• Imperatives speed, efficiency, flexibility, and
  quality
• Transition from old apps to new apps

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Why e-Businesses Fails

• Too many projects
• Resources / people spread too thin (increases
  cycle time)
• No tough decision points and poor project
  selection decisions (therefore good projects are
  starved for resources)
• Decisions based on politics, disputes, and emotion

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E-Business Plan

• Used to seek funding for a new or existing
  e-business and serves as a design for operating
  an e-business after it is funded
• Executive summary (miniature version of complete
  business plan)
• Vision (long-term goals) and mission (how reach
  vision) statements
• Description of e-business idea (outline of
  e-business background and business concept)
• Info on products/services to be offered
• Analyses on the e-businesss overall industry,
  target market, and competition
• Marketing, operational, financial, and managerial
  plans
• Identification of critical risks (SWOT analysis)
• Exit strategy (tells investors how they will
  recover their investment, and identifies the
  long-term plans for the e-business and its
  principals)

Napier, et al., 2001
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References

• Kalakota, R., Robinson, M. and Tapscott, D.
  (2001). E-Business Roadmap for Success 2.0,
  Addison Wesley Longman, Inc.
• Napier, H.A., Judd, P.J., Rivers, O.N. and
  Wagner, S.W. (2001). Creating a Winning
  E-Business, Course Technology, Thomson Learning,
  Inc.