chp13 e blueprint
DESCRIPTION
e-bussinessTRANSCRIPT
Chapter ThirteenChapter ThirteenTranslating e-Business Strategy into Action: E-Blueprint Formulation
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IntroductionIntroduction
E-Business blueprints the missing link between strategy and execution
An e-Business blueprint is the whole fabric of applications, processes, and services that shape and sustain customer value
e-Commerce Value Proposition
What is the customer looking for?
Strategy Formulation
e-Business Application Foundation
What applications are needed to facilitate value
creation?
e-Blueprint Planning
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Setting Stage for e-Blueprint PlanningSetting Stage for e-Blueprint Planning
Today’s e-business efforts– Vague ideas substitute for cohesive management and well-
developed plan– Intuition, not reason, directs development of new plans
With rising tech spending, e-blueprint planning more important and difficult
– Tech investments not linked to definable e-strategy– Difficult to make tech-related decisions– Analysis and implementation of tech projects meeting stated
objectives rare– Confusion about tech due to high market activity
Strategic alignment between business models and decisions on tech spending seen necessary
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Focusing on e-Blueprints, Not Single Focusing on e-Blueprints, Not Single ProjectsProjects
Today, e-business projects being treated the same as any other initiative
– Each e-effort undertaken as one project at a time– No forethought of achieving economies of scale and scope
or shared resources– No shared strategic vision in place– Mergers and acquisitions compounding problems
Causing serious app infrastructure problems
E-business blueprint planning hurdles– Lack of political will– Departmental resistance giving precedence to individual
projects over enterprise-wide need– Microsoft alternative to single-project mentality highly
successful
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Focusing on e-Blueprints, Not Single Focusing on e-Blueprints, Not Single ProjectsProjects
Work backwards
Time
Thinking Ahead Approach
An e-Blueprint combines a clear understanding of where you need to be
with what needs to be done.
Go
al
Where do we need to be 3 years from now?
Where should webe next year?
You are here
And next year?
Time
Incremental Approach
An incremental approach to application development will not work in the e-
Business world.
Go
alWhy some companies stagnate... Why some companies grow...
And next year?
You are here
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Beginning the e-Blueprint JourneyBeginning the e-Blueprint Journey
e-Business Design
Customer Drivers
Technology Drivers
Organizational Drivers
Business Drivers
e-Business Aggregate Blueprint
Individual Application Framework
Projects
Corporate Goals &
Objectives
Technology/Innovation Strategy
Customer/Market Strategy
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Beginning the E-Blueprint JourneyBeginning the E-Blueprint Journey
Approaches for e-blueprint planning– Short-term
• Patch together an e-blueprint plan incorporating the company’s existing apps
– Long-term• Start over with an entirely new group of apps as
the core piece of its e-blueprint plan
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To Patch or Not to PatchTo Patch or Not to Patch
Three challenges when deciding to patch or not to patch existing infrastructure
– Integration of existing infrastructure– Building seamless infrastructure on a fragmented
app base• Front-end experience for customers must be a
seamless, well-integrated service delivery platform
– Knowing when to walk away and start over
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Evaluating Your Company’s e-Business Evaluating Your Company’s e-Business Blueprint ProcessBlueprint Process
Red flags indicating e-blueprint process in trouble
– Platform projects take too long– Many substandard projects in pipeline for years– All projects being implemented are long-term,
multibillion dollar, big bang efforts– Almost all projects reinventing the wheel– Too much procrastination when making decisions– Project interdependence difficult to manage– Lack of communication and business side buy in
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Basics of e-Blueprint PlanningBasics of e-Blueprint Planning
e-Blueprint Creation
Create a Prioritization Framework
• How should you invest in framework integration?
• What framework projects are high, medium and low priority?
• What set of framework projects do we need to initiate?
e-Blueprint Facilitation
Make a Business Case for Action
e-Blueprint Execution
Tactical Implementation
• What is our chosen path?
• Are we following our plan?
• How do we keep the plan relevant?
• Who develops the framework business case?
• How can frameworks be aligned to achieve business goals?
• Can we make a compelling case to decision makers about the need for change?
Key Objectives
Action Plan
Feedback
Feedback
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E-Blueprint Creation: Defining the Blueprint E-Blueprint Creation: Defining the Blueprint in Your Companyin Your Company
Five steps of e-blueprint creation1. Establish aim of overall e-business design
2. Establish scope of the effort
3. Classify and analyze the app frameworks
4. Prioritize what needs to be done
5. For each app framework, design the execution plan
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E-Blueprint Creation: Defining the Blueprint E-Blueprint Creation: Defining the Blueprint in Your Companyin Your Company
Step 1: Establish aim of overall e-business design
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E-Blueprint Creation: Defining the Blueprint E-Blueprint Creation: Defining the Blueprint in Your Companyin Your Company
Step 2: Establish the scope of the effort– Map your ebusiness design into 3 types of
improvement• Process improvement• Strategic improvement• Business transformation
Strategic Improvement Business Transformation
Focus of Change Build exceptional internal capabilities
Gain unusual insight into the customer and market needs
Skill Development Distinctive process thinking Excellent strategic decision making
Implementation Approach Highly linear Entrepreneurial
Measuring Progress Efficiency targets Market share
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E-Blueprint Creation: Defining the Blueprint E-Blueprint Creation: Defining the Blueprint in Your Companyin Your Company
Step 3: Classify and analyze the app frameworks
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E-Blueprint Creation: Defining the Blueprint E-Blueprint Creation: Defining the Blueprint in Your Companyin Your Company
Example of App Framework Project: B2B portal• Credit• Availability• Price• Web-based
order capture tools
• Customer prioritization
• Price management and invoicing
• Returns and claims• Service & Warranty
• Payment• Strategic
Profitability analysis
• Multi sourcing• Multi shipping• Distribution
B2B Portal
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E-Blueprint Creation: Defining the Blueprint E-Blueprint Creation: Defining the Blueprint in Your Companyin Your Company
Step 4: Prioritize what needs to get doneScreen 1
Screen 2Screen 3
phase 1 phase 2 phase 3 phase 4
Small Wins Rapid
Application Module
Development and Deployment
Prioritize Specific Projects within
Application Framework
Define Each Application
Framework - Scope and Scale
Define the Aggregate
Blueprint - High-level Design
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E-Blueprint Creation: Defining the Blueprint E-Blueprint Creation: Defining the Blueprint in Your Companyin Your Company
Step 5: For each app framework, design execution
Required Capabilities
Driving Forces Implications
Fast and Responsive
Changing customer expectations; accelerating value migration
Shorter time-to-market cycles
High execution productivity
Scarce resources; wrong moves can destroy company
Make better management decisions about resource allocation and project selection
Flexible configurations
Continuous innovation; changing customer needs
Make architectural decisions that allow flexibility
Innovation Demanding customers; intense competition
Creativity combined with integrated solutions
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E-Blueprint Creation: Defining the Blueprint E-Blueprint Creation: Defining the Blueprint in Your Companyin Your Company
Elements of an execution map
E-Business Blueprint
Execution Plan
Development Blueprint
Customer Blueprint
Integration Blueprint
People and Critical
Skills Map
Technology Map
Project & Application
s Map
Process Reengineering
Map
Infostructure Map
Legacy Integration
MapApplication Integration
Map
Customer Needs Profile Map
Adoption Management
Map
Product Versioning
Map
Vision & Priorities
MapDevelop-
ment Tactical
Plan
Integration Tactical Plan
Customer Experience
Tactical Plan0
Application Framework
Map
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e-Blueprint Facilitation: Making a Business e-Blueprint Facilitation: Making a Business Case for ActionCase for Action
Execution Target:Focused on Customer
Needs and Change
Legacy Infrastructure
New Framework Investments
Evergreen
Blueprint
Business Case
Projects in Pipeline
Customer Pain
Competition
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e-Blueprint Facilitation: Making a Business e-Blueprint Facilitation: Making a Business Case for ActionCase for Action
Who develops a business case?– Today, technology influences business design– Blueprint sponsors
• CEO, President, COO or GM• CIO• CFO• Operating VPs• Board
– Dangerous to let consulting partners or IT functions to “bet-the-company” app infrastructure in isolation
• Decisions should be participatory• LOB managers, marketing execs, and corporate leaders
should join IT professionals in tech review and decision-making process
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e-Blueprint Facilitation: Making a Business e-Blueprint Facilitation: Making a Business Case for ActionCase for Action
Key elements of an e-Business case
How?(will we get there)
Why?(will we win)
Where?(are we going)
When?(will we get there)
Idea Customer selectionValue proposition
Technology selectionScope selection Project Selection
Channel selection Partner selection Supplier selection
DifferentiationMetrics
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e-Blueprint Facilitation: Making a Business e-Blueprint Facilitation: Making a Business Case for ActionCase for Action
Changing a firm’s business strategy tantamount to committing money and HR in face of business risk and uncertainty
– Preliminary assessment of scope can mitigate concerns
Elements of preliminary scope– Organizational– High-level app architecture– High-level project plan– Resource requirements
Detailed feasibility analysis next– Financial– Organization and cultural– Technical– Suppliers, partners, customers
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e-Blueprint Facilitation: Making a Business e-Blueprint Facilitation: Making a Business Case for ActionCase for Action
E-Business business case checklist– Setting business direction should be preceded by
realistic look at the marketplace and at a company’s circumstances
– After that, responsible mgrs must follow these guidelines
• Develop a goal statement• Set measurable goals• Set objectives• Develop short- and long-term action plans• Gain approval
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The Serious Business of e-Blueprint The Serious Business of e-Blueprint PlanningPlanning
Aligning strategy with e-business execution a serious undertaking
E-blueprint necessary– Builds creative work environment in which steady stream of
high-potential ideas can emerge and be manifested through enterprise’s infrastructure and strategy
Top mgmt should play strong role in the blueprint-planning process
– Blueprint decisions among most important company decisions
– Cuts across several product lines or divisional boundaries– Frequently requires resolution of cross-functional conflict
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Alignment in Today’s EnvironmentAlignment in Today’s Environment
75% of e-commerce projects are bound to fail because of a lack of good business planning and unreal expectations of what new technologies can do for their business. [Gartner Group]
Primary Cause of Misalignment
40% of IT purchasing decisions are made by Line of Business Managers (e.g., heads of marketing). The CIO and IT staff are
then responsible for implementing the technology to fulfill that department’s business goal.
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Communicate, Communicate, CommunicateCommunicate, Communicate, Communicate
• Create an elevator pitch
• Create a cross-functional e-blueprint team
• Take baby steps
• Clearly communicate plans and benefits of the new e-blueprint
• Document success and publish results
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The Problem of LeadershipThe Problem of Leadership
Lack of consistent sponsorship from top mgmt the single biggest impediment to e-business blueprint planning
Bad planning due to overdelegation
Some responsibilities cannot be delegated– Sitting on the blueprint committee– Approving strategic direction and corporate vision
it supports– Setting project’s goals– Participating in deployment process– Personally reviewing performance against
strategic goals
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Questions on Executive CommitmentQuestions on Executive Commitment
• Is senior-mgmt involved in e-business decision-making?
• Is top mgmt selling value of integration to decision makers?
• Has the company recognized that improving e-business investment mgmt is a long-term process and should be planned accordingly?
• Has the company ensured that e-business investment decisions are strongly linked to strategic business objectives?
• Has the company built a shared e-business vision through various mgmt levels?
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Why e-Business Initiatives FailWhy e-Business Initiatives Fail
Design app blueprint on your own, in your own dept
Don’t do homework or auditing of company problems
Don’t bother learning from other companies
If you assemble a task force, meet several times in private
Don’t seek outside help and if you do, hire a brand-name guru who knows nothing about technology or blueprint management
When mgrs have questions, get defensive, rail at these “cynics” and “negative thinkers” who don’t get it
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Why e-Business Initiatives FailWhy e-Business Initiatives Fail
Don’t worry about communicating
Blueprint doc is 3 binders thick, full of checklists and spreadsheets
Don’t bother with process or project mgmt
Don’t waste time taking baby steps to execute
Don’t factor in periodic feedback as an opportunity for course correction
Don’t factor in existing projects
E-Business E-Business Strategies, Inc.Strategies, Inc.
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