steps to e-business success jason c.h. chen, ph.d. professor of mis school of business...
TRANSCRIPT
Steps to e-Business Success
Jason C.H. Chen, Ph.D.Professor of MIS
School of Business Administration
Gonzaga UniversitySpokane, WA 99258, USA
E-ChannelManagement
ProcurementNetwork
TradingNetwork
E-Customer Relationship
E-Commerce
E-Portal ManagementE-Services
SCM/ERP/Legacy Appls
Bu
sinesses
Bu
sinesses &
C
onsu
mers
1:NM:1 M:N
Knowledge Management/Business Intelligence
Focus on e-Business Applications
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Roles of Information SystemsRoles of Information Systems
AutomatesAutomates
Innovates/TransformsInnovates/TransformsInformatesInformates
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eBusiness Key Concepts
eBusinessthe strategy of how to automate old business models with the aid of technology to maximize customer value
eCommercethe process of buying and selling over digital media (e.g., Internet)
eCRM (eCustomer Relationship Management)the process of building,sustaining, and improving eBusiness relationships with existing and potential customers through digital media
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eBusiness Processes
WHY Customer Relationship
Redesign Business Processes (Outside-In)
Applying Technology
WHAT
HOW
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Why e-Business? The Information economy will make all
organizations reassess their positions with respect to their customers-supplier relationship.
“e-Business is bound to come and unless we are able to cope with the changes in this world, our competitiveness will decline.” this is a clear testament to the power
of the new information-based economy and a warning to all companies that inertia must be overcome and change embraced.
By Michiyo Nakamoto, Financial Times, Nov. 23, 1999
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Revolution, Revolution ... The e-Business revolution is
impossible to ignore. It is transforming businesses in
virtually every industry and reshaping the global economy.
Organizational structures and operational practices that have served business well since the Industrial Revolution are suddenly obsolete.
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Revolution, Revolution (continued)
The entrenched distribution networks that once served as formidable barriers to competition may suddenly become liabilities, unable to respond to the new demands of the marketplace.
The e-Business revolution is as fundamental a change to current society as the industrial revolution was to its preceding agrarian society.
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e-Business ... The heart of e-business is
interconnectivity and interaction. The ability to reach more people
while sharing information of increasing richness creates new opportunities for value creation in areas such as marketing, customer service, and operations.
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e-Business (continued)
In this new world, status quo is not an option. Companies have to reinvent themselves to survive.
Given the fast pace of e-business change, actions that once took years to accomplish must now be done in months or weeks.
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Planning is everything ...
Products,Services
Customers,market,
competition
Vision
guide
Strategy
create
develop
Tactic
Vision
Mission
Policies
Goals
Metrics Values TimeHorizon
Objectives
Metrics Values TimeHorizon
Strategies
Tactics
Figure:
Stages of
e-Business
(or IS)
Project
Strategic
Planning
NTM -12
IT Planning: The Relationship Between Business, IS, and IT Strategies
PORTER’S FIVE COMPETITIVE FORCES MODEL
THE FIRMTRADITIONAL COMPETITORS
NEW MARKET ENTRANTS
SUPPLIERS
SUBSTITUTE PRODUCTS & SERVICES
CUSTOMERS
Threats
Bargaining power
NDr. Chen, The Trends of the Information Systems Technology TM -14
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Cost leadership Differentiation FocusExpanded generic strategies
Strategic positioning (e.g., internal efficiency)
Customer service
and my own view ... Innovation
Porter’s Competitive Forces Strategies
Dr. Chen, The Trends of the Information Systems Technology
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STRATEGIC ROLE OF INFORMATION SYSTEMS
STRATEGIC INFORMATION SYSTEM:CAN CHANGE GOALS, OPERATIONS
PRODUCTS, SERVICESENVIRONMENT
TO GAIN COMPETITIVE ADVANTAGE
2.23Dr. Chen, The Trends of the Information Systems Technology
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Use of Porter’s Model• List players• Analyze business drivers• Devise a strategy• Investigate supportive information
technologies
N
Dr. Chen, The Trends of the Information Systems Technology
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The Value Chain Model
The model views the firm as a series or "chain" of basic activities that add a margin of value to a firm's products or services, indicating where IS can best be applied to achieve a competitive advantage.
NDr. Chen, The Trends of the Information Systems Technology
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Activities of Value Chain
Inbound Logistics
OperationsOutbound
Logistics
Marketingand Sales
Services
Administrative and Other Indirect Value Added
Administrative and Other Indirect Value Added
Primary Activities
Support Activities
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The Value Chain
Com
petitive
Adv
anta
ge
(Value)
A Transformation Model from Market to Customer
TM -21
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Seven-step Process ... The following seven-step process
can help guide a company through its e-Business transformation. Cover the gamut of e-business
activities, from conception to operation
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Seven-step Process (continued)
1. Start High 2. Think Fresh 3. Know Your Market 4. Set Vision 5. Define Strategy 6. Create 7. Refresh Regularly
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Seven-step Process (continued)
1. Start High e-Business is more than developing a fancy
Website e-Business is a business rather than a technical
endeavor radical change (BPR) e-Business initiatives may also cut across
corporate boundaries, shifting organizational structures, redefining job descriptions, and upsetting established processes.
Only corporate executives can marshal the forces and commitment to launch an e-Business program and respond the concerns of internal and external stakeholders.
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Seven-step Process (continued)
2. Think Fresh The Internet revolution is radically changing the
business game. Start with a fresh viewpoint and assume that
everything is open to question and change. What your customers are really buying from you? Is how you deliver your product more important
than the product itself? Porter’s model (commodities vs. differentiation from
competitor, e.g., DELL) New ways of pricing your products and services. SWAT, outsourcing
N
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Seven-step Process (continued)
3. Know your market assess your company’s current market
needs of your customers, partners, and suppliers how you can meet or exceed their needs through e-
Business capabilities. expand upon this market awareness by identifying
possible new products, services, and business lines
encroaching competition from existing and unknown sources
formulate your e-Business vision and strategy. Knowing your market means exploring your:
branding, customers, competition, supply chain, demand chain (e.g., auto online)
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Seven-step Process (continued)
4. Set Vision a long-term vision to guide your company as it
enters the e-Business world the vision defines
what a company wants to do, what it wants to be.
do not rush to strategies, actions, and results Vision <--- Mission <--- Goals/objectives <---
Strategies <--- Tactics Complete executive buy-in is essential; executives
must promote the vision and make it part of the corporate culture - therefore, employees will be imbued with new corporate vision
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Seven-step Process (continued)
5. Define Strategy define, select, and prioritize the initiatives
needed to implement the company’s e-Business vision
the strategy defines how the company is going to get there.
incremental actions are not enough expect high potential returns and advantages
other factors to consider: process change, organizational change, technical
architectures, creative needs, fit within overall vision
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Seven-step Process (continued)
6. Create a company transforms itself through a set of
coordinated initiatives that implement that needed organization, technology, and process changes
the most difficult part of an e-Business transformation is changing the underlying business model (but does not mean to undercut the importance of technology nor underestimate the complexity of the implementation)
when building e-business site, consider: design, content, promotion, legacy integration,
development (SDLC), organizational change implementation, training
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Seven-step Process (continued)
7. Refresh Regularly to be viable, a company must continually review,
reexamine, and revise its vision, strategies, and implementations.
Speed, innovation, and change are implicit parts of the e-Business world
survey customers continually to learn if it is meeting their needs and goals - making money, reaching prospects, satisfying stakeholders - in order to know when and what to change
keep company’s Website design and content fresh and exciting to attract new visitors and to keep them coming back for more.
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Seven-step Process (continued)
7. Refresh Regularly (continued)
launch promotional campaigns to drive traffic to its Website.
Products, and services; to maintain and enhance its
brand identity; and to garner a greater share of a
market where switching costs are low or nonexistent
e-Business promises lower prices and better selection for consumers, and unlimited opportunities for new businesses.
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Conclusion The need for interdisciplinary
thinking has never been greater … companies that can continually
combine innovative business thinking, creative design and content, and advanced technology
will lead the way in e-Business success.
SURFING THE NET
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THANKS and GO for your Successful e-Business!!
Vision
Mission,Principles,and Values
Goals / Objectives
Strategies
Plans
Tactics
Figure: Hierarchy of Leadership Tools
SURFING THE NET
SEARCH ENGINE: tool for locating specific sites or information on WWW
HYPERLINK: spot on screen, when clicked shifts to a new page or site
“PUSH” TECHNOLOGY: server streams relevant content to browser