Management and Strategic Planning Entrepreneurial Leadership Showing the Way

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Management and Strategic PlanningEntrepreneurial
Leadership Showing the Way

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Fundamental Changes When E-business becomes
Integrated into Economic Activities

• Growing customer bargaining power,
• Pressure to focus on core business,
• Development of corporate collaboration
• Trend towards the restructuring of traditional
  value chains
• E-business to have significant effect on
  Europe's economy by 2004

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Impact on PerformanceEnvironments Conducive to
Innovation

• Financial Support and Rewards IPOs and Venture
  Capital
• Culture that Tolerates Failure
• Presence of Related Industries, Universities, and
  other Research Institutions
• Government Policies

Afuah, p. 196 - 199
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Business Analysis FrameworkWork System
Customers
Products and Services
Business Processes
Participants
Information
Technology
Context
Infrastructure
Alter p8, 17
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Challenges in Managing E-Commerce

• Customer
• Understanding diverse concerns of different
  customers
• Treating each customer consistent with corporate
  goals
• Products and Services
• Achieving profitability
• Achieving sustainable differentiation
• Maintaining customer satisfaction
• Business Process
• Establishing and integrating systems
• Assuring availability and shipping promptly
• Determining prices
• Promoting and selling the product
• Providing excellent customer service
• Obtaining payment and avoiding fraud

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Challenges in Managing E-Commerce cont.

• Participants
• Making self-service a pleasant experience
• Working effectively with business partners and
  intermediaries
• Recognizing changes in the surrounding context
  that might affect success.
• Information
• Collecting and maintaining accurate information
  about orders, inventories, customers
• Collecting and using information about Web site
  usage
• Recognize and respond to risks related to the
  external infrastructure the system depends on
• Technology
• Using Web servers, programming methods and
  databases effectively
• Using encryption and security technologies
  without undue delay and complications for
  customers
• Atler p. 252

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SWOT Analysis
Internal
External
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Situation AnalysisSWOT

• Internal
• Business Model Analysis
• Competitive Advantages
• Core Competencies
• Technology Leveraged
• Human Resources Flexibility
• Operations
• Marketing Planning Process
• Customer Service
• Enterprise Wide Collaboration
• Product Research and Development
• Pricing
• Distribution Channels
• Supply Chain
• Public Relations
• Finances
• Patents
• Etc.

• External
• Competitive Analysis
• Appraisal of competitors business models
• Porters five forces
• Likely actions and reaction of competitors
• Industry Value Drivers
• What are the major drivers of cost and
  differentiation?
• How has the Internet impacted them?
• Macro Environment
• Economic, social, demographic, and political
  forces
• Additional Opportunities and Threats

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Competitive EnvironmentPorters Five Forces
Barriers to Profitability

• Bargaining power of suppliers
• Bargaining power of buyers/customers
• Threat of new entrants
• Rivalry among existing firms
• Threat of substitute products

Profits Revenues - Costs
Afuah, p. 189
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Roberts and Berry Model on Acquiring Capabilities
Market
Existing New but familiar
New and unfamiliar
Existing New but familiar New
and unfamiliar
Technology
Roberts,p. 3-17
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Appraising a Business Model Component Measures
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Appraising a Business Model Component Measures
cont.
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Appraising a Business Model Component Measures
cont.
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Appraising a Business Model Component Measures
cont.
Afuah, p. 163
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Enterprise Resource Planning Defined

• The linking together of the diverse aspects of
  business through central database servers.
• Is the hub for controlling the reengineering
  process for organizations.
• Increase Revenues and Reduce Operational Costs by
  integrating business processes across entire
  enterprise.
• Streamlines business processes and facilitates
  business process reengineering.

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Enterprise Resource Planning
SCM extranet
Sales Force Automation
Customer Relationship Management
Sales Force Automation
Database
Database
External
External
Internal
Database
Internal
Management Reporting Systems
Manufacturing Systems
Business Processes
Logistics/ Inventory Control Systems
Financial and Accounting Systems
Human Resource Management
Kleindl, p. 203
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External Component of ERP

• Sales Force Automation Forecast revenues. Track
  leads. Follow deals through the pipeline.
  Understand where bottlenecks occur. Monitor key
  sales metrics. ex. Salesforce.com
• Marketing Automation ROI data on effectiveness
  of advertising and marketing campaigns to
  optimize time and resources. Track effectiveness
  of marketing campaigns. Identify most qualified
  leads. Know demographic and market trends.
• Supply Chain Management Automated tracking of
  product transactions, from your suppliers
  supplier to your customers customer ex.
  PeopleSoft, Siebel
• Customer Relationship Management The use of
  information-enabled systems for enhancing
  individual customer relationships to ensure
  long-term customer loyalty and retention. Keys
  People, Processes, Technology. Customer value and
  segmentation article, 10 steps

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Internal Components of ERP

• Manufacturing Systems receives sales orders,
  queues production, addresses customization
  specifications, sets timelines Ex. SAP
• Human Resource Management receives and tracks
  applications, job requirements and definitions,
  evaluates applicant and employee competencies,
  manages payroll, benefits etc. Ex. PeopleSoft
• Inventory/Logistics Systems manages parts,
  inventory, distribution, shipping
• Financial/Accounting Systems manages accounts
  receivable, payable, operation and variable costs
  and revenues, forecasts.
• Management Reporting Systems pools information
  across integrated systems to facilitate decision
  making, allows for querying, drill down to detail
  and other analytical compilations. Ex. Crystal,
  SQL

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Web-Based Customer Support Systems How to Offer
Great Customer Support through Self-Service
Kleindl, p. 204
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Conclusion Strategic Questions for the
Entrepreneurial Visionary

• Where is the firm now?
• Where does the firm go next?
• How does the firm get there?
• How does the firm implement the decisions to get
  there?