eOperations John McDonald

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eOperations John McDonald
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What is eOperations?

• Simple its Operations for electronic business
  models
• But what is Operations?
• 1. Convert the business strategy into an action
  plan
• 2. Execute on the action plan
• 3. Define and measure KPIs
• 4. Refine action plan Feedback actual data
  into the business strategy
• eOperations is the job of doing all of that for
  an electronic business
• ( Major difference is the KPIs and the actors)

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What are the top 5 things to be aware of before
implementing technology

• Strategy be absolutely clear about where youre
  going and why where are you building value and
  what must you do to succeed?
• Core competencies - dont build what wont make
  you more valuable
• Cycles - Build cycle vs. deployment vs. real
  business the skills are different, the KPIs
  are different and you must graduate cleanly
• Platform scalability and resources are platform
  dependent pay attention to shifts and hedge
  your bets where possible
• Early hits milestones are critical for moral,
  funding, value and peace of mind build them in
  daily / weekly etc. and celebrate every chance
  you get

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A Few examples

• 1. Strategy shopping cart engines procurement
  systems
• 2. Core Competencies your own web servers vs.
  someone hosting Your own phone system vs. VOIP.
  
• 3. Cycles High level build consultant to bridge
  new teams - architecture / build / use case /
  deployment almost 2 years on staff, clear up
  front decision that we werent in the build
  business
• 4. Platform Genesis build on J2E shift to
  dotNet
• 5. Early hits Synchro 20 month build, but we
  had wins while still on others software (advisors
  coming on board use cases done etc.)

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Personal War Stories

• Success
• Build of the rules based workflow hub was an
  unqualified success because we had highly
  knowledgeable advisors who helped us absolutely
  nail the real problems and the real life process
  that out target market needed. Our software
  broke the paradigm, but we addressed the real
  money flow and we had a demonstrable impact on
  the bottom line plus we took away a disliked
  process (didnt try and take away their golf
  games).
• Lesson solve a real pain point (bleeding
  jugular, not an aspirin pain) and do so in a way
  that helps a company measurably increase the
  bottom line without shifting its budget lines

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Personal War Stories

• Failure
• Marketing roll-out stalled and could not move
  forward because of an unresolved shift in
  strategy. This is actually a classic funding
  failure, and as the leader, I failed to get it
  resolved. SITQ had in internal crisis 14 month
  re-org as we were entering the launch phase,
  couldnt get their support on any decisions so we
  were paralyzed logic was incapable of explaining
  what was going on and the noise disinformation
  made it very hard for me to see it and force a
  conclusion.
• Lesson ensure tight alignment of all key
  stakeholders at the strategic level and be quick
  to react if the alignment seems to have shifted.

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Where are things headed?

• - DotNet seems to be killing Java
• - ASPs non-core processes simply have to be
  outsourced
• (offsite back-up / procurement / VOIP etc.)
• - Social Connection software will merge with CRM
• - Data Mining - is now affordable and will begin
  to be more influential (still should be ASPd)
• - Procurement cant believe its taking so long

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What resources are useful

• - Chasm
• - Selling the Invisible
• - Ecommerce text book explains the models
  quite well
• - Use a marketplace eLance / Genesis / eBay etc.
• - Use a social software program preferably a
  work oriented one (linked in)

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10 Practical hints

• - think about the machine outputs (egCPM)
  Inventory ( screens x ad blocks) Revenue ( ad
  blocks times relative value)
• - Only spend heart beats and money on things
  that ad value
• - If it isnt a bleeding jugular dont fix it
• - If there isnt already a budget line dont
  touch it
• - Channel / Channel / Channel there is no
  physical location in eCom, but somehow you still
  need to get in front of the customers the paths
  that you choose are channel decisions
• - Be absolutely clear about the channel that
  youre going to use to dominate your chosen
  niche
• - Deeply understand the compensation layers in
  the channel
• - Make it more lucrative to support you than to
  fight you - Dont stray from your channel till
  you own it

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Discussion Topics

• 1. Browser support. Supporting a browser means
  that you have to test and optimize your code for
  every included version of every included
  platform, and that you have to re-optimize and
  retest every time you make a change to your
  code.
• Do you support them all, or not? (remember
  I.E. has a 90 share overall, but the actual
  penetration varies based on the segment that you
  target. )
• 2. ShrinkWrap vs. ASP.
• The core competencies for delivering a software
  system via the web (either as a one time event or
  as an ASP) are completely different than the core
  competencies required to bundle, deliver and
  support a shrink wrapped application.
• Do you need to offer both?

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Why is CRM important

• It isnt so long as you have only one salesman
  and they never forget what theyve promised to
  the customer.
• It is when you have the potential for churn in
  your customer interaction layer, and when it
  matters that you remember what was promised.
• Also matters when a customers behavior is a
  clear indicator of future buying patterns if you
  have something to offer based on that behavior.

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Contract ASP with in-house applications

• CRM Goal capture key customer knowledge /
  Proactively identify opportunities for sales /
  Proactively identify opportunities for service
• Buy a programming toolkit and define the
  requirements for CRM.
• Build the software prototype and get user
  feedback. Refine the model and build a working
  prototype.
• Refine and complete a production version.
• Go through formal use-case testing.
• Build 1st generation manuals.
• Go through beta testing.
• Tweak code and manuals.
• Buy and set-up a production database server.
• Buy and set-up an email software server.
• Buy and set-up a production web server.
• Buy and set-up a firewall and define the security
  policies.
• Integrate the CRM App with the database, email
  server, web server, firewall.
• Assign rights and password management and train
  the users.
• Build user friendly training materials.
• Update PCs connectivity for compatibility
• Launch the system and train users.
• Institute a change management process to aid in
  the transition.

Reminds me of the font rule
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Contract ASP with in-house applications

• ASP
• RfP and feature comparison.
• Select the system sign license
• Contract to them for integration, training
  change mgmt.
• Update PCs connectivity for compatibility
• Launch

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Conclusion

• eCom is no different than any other business
• you build a machine for generating revenue (be
  clear what that machine is and where the revenue
  is generated)
• you work hard to perfect the machine so that the
  outputs are defect free and the cost per unit is
  as low as possible
• you work hard to maximize the revenue that you
  get per unit
• you work hard to keep your overhead low so that
  there is as much left over in the end as possible
• Always try to make sure that the stuff youre
  really good at is the stuff that makes it really
  hard for anyone to take away your revenue or
  drive up your cost per unit

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John McDonald

• 1-604-721-3441
• jmcdonald_at_rampworth.com
• www.rampworth.com