lecture notes - strategy and applications

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E-commerce COM380 E-commerce Lecture 4 Strategy and Applications

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Page 1: Lecture Notes - Strategy and Applications

E-commerce COM380

E-commerce

Lecture 4

Strategy and Applications

Page 2: Lecture Notes - Strategy and Applications

E-commerce COM380

E-commerce Strategy

Objectives

By the end of the lecture students should: – Understand alternative strategic approaches for

e-business– Appreciate appropriate strategy process model– Understand the tools which generate e-business

strategies

Page 3: Lecture Notes - Strategy and Applications

E-commerce COM380

E-commerce Strategy

Strategy process model• Strategic evaluation

• Strategic objectives

• Strategy definition

• Strategy implementation

Page 4: Lecture Notes - Strategy and Applications

E-commerce COM380

E-commerce Strategy

E-business strategy• Corporate strategy

• Business unit strategy

• Operational strategies

• Functional strategies

Page 5: Lecture Notes - Strategy and Applications

E-commerce COM380

E-commerce Strategy

Strategy process model• Internal/external environment• Statement of vision and objectives• Strategy development• Strategy implementation• Monitor effectiveness

Page 6: Lecture Notes - Strategy and Applications

E-commerce COM380

E-commerce Strategy

Strategy process model• Initiation• Diagnosis• Breakout• Transition• Monitor effectiveness

Page 7: Lecture Notes - Strategy and Applications

E-commerce COM380

E-commerce Strategy

Strategy process model• Planning horizon

• Planning cycles

• Power base

• Core focus

Page 8: Lecture Notes - Strategy and Applications

E-commerce COM380

E-commerce Strategy

Strategy process modelTen step e-marketing plan

• Situation review

• SWOT analysis

• Summary of key issues

• Statement of future objectives

Page 9: Lecture Notes - Strategy and Applications

E-commerce COM380

E-commerce Strategy

Strategy process model• Strategy to achieve them • Marketing mix for delivering strategy • Action plan • Financial forecasts • Control systems• Contingency plans

Page 10: Lecture Notes - Strategy and Applications

E-commerce COM380

E-commerce Strategy

Strategy process model• What is your strategic vision?

• How do you govern dot-com operations?

• How do you allocate key resources?• What is your operating infrastructure?

• Is your management team aligned for the dot-com agenda?

Page 11: Lecture Notes - Strategy and Applications

E-commerce COM380

E-commerce Strategy

Strategy process model• Technology• Service• Market• Brand

Page 12: Lecture Notes - Strategy and Applications

E-commerce COM380

E-commerce Strategy

Strategy process model• Leadership

• Infrastructure

• Organisational learning

Page 13: Lecture Notes - Strategy and Applications

E-commerce COM380

E-commerce Strategy

E-business strategy

• Prescriptive strategy

• Emergent strategy

Page 14: Lecture Notes - Strategy and Applications

E-commerce COM380

E-commerce Strategy

E-business strategy

• Situation analysis

• Strategic objectives

• Implementation

Page 15: Lecture Notes - Strategy and Applications

E-commerce COM380

E-commerce Strategy

Resource and process analysis

• Resource analysis

• Stage models of e-business development

Page 16: Lecture Notes - Strategy and Applications

E-commerce COM380

E-commerce Strategy

E-business development• No web site or presence• Basic web presence• Simple static information site• Simple interactive site• Interactive site• Fully interactive site

Page 17: Lecture Notes - Strategy and Applications

E-commerce COM380

E-commerce Strategy

E-business development• Transaction e-commerce site

• Service-oriented relationship building web site

• Brand building site

• Portal site

Page 18: Lecture Notes - Strategy and Applications

E-commerce COM380

E-commerce Strategy

Process analysis• Application portfolio analysis

• Organisational and IS SWOT Analysis

Page 19: Lecture Notes - Strategy and Applications

E-commerce COM380

E-commerce Strategy

Resource analysis • Human resources

• Financial resources

Page 20: Lecture Notes - Strategy and Applications

E-commerce COM380

E-commerce Strategy

Competitive environment analysis

• Demand analysis

Page 21: Lecture Notes - Strategy and Applications

E-commerce COM380

E-commerce Strategy

Competitive threats • New e-commerce entrants

• New digital products

• New business models

Page 22: Lecture Notes - Strategy and Applications

E-commerce COM380

E-commerce Strategy

Sell-side threats • Customer power and knowledge

• Power of intermediaries

Page 23: Lecture Notes - Strategy and Applications

E-commerce COM380

E-commerce Strategy

Buy-side threats

• Power of suppliers • Power of intermediaries

Page 24: Lecture Notes - Strategy and Applications

E-commerce COM380

E-commerce Strategy

Competitor analysis

• Resource-advantage mapping – Core competencies – Customer value

Page 25: Lecture Notes - Strategy and Applications

E-commerce COM380

E-commerce Strategy

Strategic objectives

• Defining vision and mission – Relevance – Change – Value – People

Page 26: Lecture Notes - Strategy and Applications

E-commerce COM380

E-commerce Strategy

Objective setting

• Online revenue contribution • Balanced scorecard

Page 27: Lecture Notes - Strategy and Applications

E-commerce COM380

E-commerce Strategy

Strategy definition• E-business priorities • Restructuring • Business and revenue models • Marketplace Restructuring • Market and product development strategies• Positioning and differentiation strategies

Page 28: Lecture Notes - Strategy and Applications

E-commerce COM380

E-commerce Strategy

Strategic implementation• Business alignment IS strategy

• Business impacting IS strategy

• Elements of IS strategy– Business information strategy

– IS functionality strategy

– IS/IT strategy

Page 29: Lecture Notes - Strategy and Applications

E-commerce COM380

E-commerce Strategy

Investment appraisal• Overall levels of spending on information to

support e-business• Decisions about which business applications to

invest in (portfolio analysis)• Assessment if the cost/benefit for individual

applications• Productivity paradox

Page 30: Lecture Notes - Strategy and Applications

E-commerce COM380

Introduction to E-commerce

Objectives– Understand alternative strategic approaches for

e-business– Appreciate appropriate strategy process model– Understand the tools which generate e-business

strategies