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E-Business Value Drivers
Soumitra Dutta The Roland Berger Professor
of Ebusiness and Information Technology Dean of
Technology and e-Learning INSEAD,
Fontainebleau soumitra.dutta_at_insead.fr
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To create value using the Internetwe need to
understand two fundamentals1. What is unique
about the Internet2. How to create
sustainable business value?
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The Internet is unique because it enables

• Real-time interactivity
• (Richness)
• Global connectivity
• (Reach)

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How to create sustainable business value?
Competitive Advantage Product Advantage
Production Advantage
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eValue Drivers Matrix
Integration
Reconfiguration
Info intensity of value chain
Production advantage
Competitive advantage
Personalization Learning
Network leverage
Info content of product
Product advantage
Real-time interactivity
Global connectivity
Internet Enabler
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eValue Drivers Matrix
Integration
Reconfiguration
Production advantage
Competitive advantage
Personalization Learning
Network leverage
Product advantage
Real-time interactivity
Global connectivity
Internet Enabler
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A unique duality
Personalization
Product/ Service
Customer
Company
Info Content
Learning
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eValue Drivers Matrix
Integration
Reconfiguration
Production advantage
Competitive advantage
Personalization Learning
Network leverage
Product advantage
Real-time interactivity
Global connectivity
Internet Enabler
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eValue Drivers Matrix
Integration
Reconfiguration
Production advantage
Competitive advantage
Personalization Learning
Network leverage
Product advantage
Real-time interactivity
Global connectivity
Internet Enabler
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Fast
Flexible
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eValue Drivers Matrix
Integration
Reconfiguration
Production advantage
Competitive advantage
Personalization Learning
Network leverage
Product advantage
Real-time interactivity
Global connectivity
Internet Enabler
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Some issues to consider

• Field of dreams
• Single cycle development
• Lipstick on a bulldog
• Islands of webification
• Too many projects

Source Net Ready, McGraw Hill, 2000
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Managing the curse of opportunities
Blue chip
Tech
High
Business criticality
Bonds
IPO
Low
Low
High
Business Practice Innovation
Source Net Ready, McGraw Hill, 2000
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Quadrant I New Fundamentals

• Focus typically on cost reduction or avoidance
• Non-strategic applications
• Low hanging fruit

Business criticality
Bonds
Low
Low
Business Practice Innovation
Source Net Ready, McGraw Hill, 2000
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Quadrant II Rational Experimentation

• Strategic experimentation with goal to LEARN
• Focus typically on revenue increase and growth
• Lower cost of failure

High
Business criticality
IPO
Low
Low
High
Business Practice Innovation
Source Net Ready, McGraw Hill, 2000
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Quadrant III Operational Excellence
Blue chip
High

• Putting mission critical applications on the Web
• Dual focus on cost reduction and revenue growth
• Potential for business transformation
• Little room for failure

Business criticality
Low
Low
Business Practice Innovation
Source Net Ready, McGraw Hill, 2000
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Quadrant IV Breakthrough Strategies
Tech

• Creation of new processes and markets
• Critical for future success
• Transformational in nature
• High degree of innovation and risk

High
Business criticality
Low
Low
High
Business Practice Innovation
Source Net Ready, McGraw Hill, 2000
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Determining project priorities
Must haves
Quick wins
High
Business impact
Money pits
Low hanging fruit
Low
Low
High
Ease of Execution
Source Net Ready, McGraw Hill, 2000
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Thank you!
soumitra.dutta_at_insead.fr