strategic outlook of digital business

7/28/2019 Strategic Outlook of Digital Business

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STRATEGIC OUTLOOK OF DIGITAL

BUSINESS


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Todays Lecture

E-commerce v/s e-business

Going digital for traditional business

Leading a company toward a new andprosperous digital future

Steps to e-business success

Successfully integrating digital projects into theoverall business model


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Electronic Commerce

Buying, selling, or exchanging products,services, and information, via computer

networks such at the Internet.

Delivery of goods, services, information, or

payments over computer networks or by any

other electronic means.

Reducing customer search and switching costs


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Electronic Business

Marketing, buying, selling, delivering, servicing,and paying for products, services, and

information across networks linking an

enterprise and its prospects, customers, agents,

suppliers, competitors, allies, andcomplementors.

Conduct of business and business processesover computer networks based on

nonproprietary standards.


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E-commerce v/s E-business

E-commerceDeals with using the Internet, digital

communications, and IT applications to enable

the buying/selling process

E-business

Involves the continuous optimization of an

organizations value proposition and value-chain positions through the adoption of digital

technology and the use of the Internet as the

primary communications medium


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Three alternative definitions of the relationship

between e-business and e-commerce



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E-Commerce is what you doE-Business is what you are

Marketing

Selling

Buying of products

and services on

the Internet

E-Business Enterprise designed for success

in the Information Age

Creates new sources of shareholder value

Building customer loyalty

Optimizing business process

Creating new products and services

Managing risk and compliance Reaching new markets

Enhancing human capital

Harnessing technology

Achieving market leadership

E-Commerce



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The Emerging Digital Firm


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Why E-Business? Why Now?

Demand Pull The New Economy Information economy - Information content over 60% New economics of information

Technological Pushthe ICTs Revolution

Convergence of computing, telecom & media Exponential growth of the Internet Mobile communications

Rapid development of the Internet Mass, public infrastructure Individuality, interactivity, mobility & consumer

experiences

Government Initiatives & Targets


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E-Business (contd.)

Revolution, Revolution ...

The e-Business revolution is impossible to ignore.

It is transforming businesses in virtually everyindustry and reshaping the global economy.

The e-Business revolution is as fundamental achange to current society as the industrialrevolution was to its preceding agrarian society.


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E-Business (contd.)

The heart of e-business is interconnectivity and

interaction.

The ability to reach more people while sharinginformation of increasing richness creates new

opportunities for value creation in areas such as

marketing, customer service, and operations.


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E-Business (contd.)

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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Digital Economy

It is the global network of economic and socialactivities, enabled by information and

communications technologies, such as the

internet, mobile and sensor networks.

It consists of the computers, mobile phones

and other devices.


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Digital Economy

As the world continues to digitize and grow incomplexity, virtually every enterprise will need to

have a great digital business model, one that

creates value by engaging customers digitally.

The digital marketplace is redefining customer

relationships, the way employees work, and how

companies build and exploit internal and externalcapabilities.


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Digital Economy

Digital economy is entering a new age.

In addition to customer experience and channels,

digital technologies influence all areas of the

corporation, from delivering enhancedproductivity and efficiency in the core operations

to substantial improvement in the way people

interact and collaborate within an organization

This unprecedented change will present new

transformation challenges for CEOs regardless

of industries and geographical locations.


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Going Digital

Amazon. Foursquare. Facebook. iTunes.

Throughout the business world, these companies

find themselves mentioned with admiration every

day in an incalculable number of meetings,

whether about product marketing, or customer

service, or the overall digital experience.

Theres a reason: These are all category-leading

businesses built on a purely digital model.


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Businesses

Traditional businesses are often held back by

fear of failure and the inability to move quickly,

while many great digital businesses have been

built on a cultural bedrock of innovation.

Digital businesses have advanced the notion that

fearlessness and experimentation are often

strategic necessities.

However, digital innovation must be a part of

your total brand experience including employee

engagement, supply chain management, and


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E-Business Functions


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Take things slowly

Its un-advisable to go in at the deep end with anybusiness, but consider your companys strengths

and build your online brand slowly.

With the right advice, the right strategies, and

some good old fashioned common sense, going

online may the best business decision the

company has made yet!


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Path Forward

Great businesses, whether theyre digital or not,are born through innovation, creativity and

smarts.

Digital businesses are simply using technology to

transform how businesses function.

The question is how traditional companies canadopt best practices from digital ones.

T iti t N d S f l


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Transition to New and Successful

Digital Future

There are two approaches to making thetransition to e-business

Take an evolutionary approachUse new technology to enhance your current

business model

Take a transformational approach

Reconfigure your business and value

propositions with the technology to reconfigure

and reinvent your business

I li ti f E B i


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Implications of E-Business:Evolutionary & Transformational Approach

New strategy & business models

New organisational designs

New inter-organisational relations

New work organisation and new ways ofWorking


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Steps to

E-Business

Success


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Seven-step Process ...

The following seven-step process can help guidea company through its e-Business transformation.

Cover the gamut of e-business activities, fromconception to operation


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Seven-step Process

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-stepProcess(continued)1. Start High

E-business is more than developing a fancy website

E-business is a business rather than a technicalendeavor

Radical change (BPR)

E-business initiatives may also cut across corporate

boundaries, shifting organizational structures, redefiningjob descriptions, and upsetting established processes.

Only corporate executives can marshal the forces and

commitment to launch an e-business program andrespond the concerns of internal and external


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2. Think Fresh

The Internet revolution is radically changing the businessgame.

Start with a fresh viewpoint and assume that everything isopen to question and change. What your customers are really buying from you?

Is how you deliver your product more important than the productitself?

Porters model (commodities vs. differentiation from competitor, e.g.,DELL)

New ways of pricing your products and services.

Seven-step Process(continued)


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Seven-stepProcess(continued)3. Know Your Market

Assess your companys current market

Needs of your customers, partners, and suppliers

How you can meet or exceed their needs through e-businesscapabilities.

Expand upon this market awareness by identifying possible newproducts, 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, demandchain


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Seven-stepProcess(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


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Seven-stepProcess(continued)5. Define Strategy

Define, select, and prioritize the initiatives needed to implement

the companys 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-stepProcess(continued)6. Create

A company transforms itself through a set of coordinatedinitiatives that implement that needed organization,technology, and process changes

The most difficult part of an e-business transformation ischanging the underlying business model (but does notmean to undercut the importance of technology norunderestimate 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-stepProcess(continued)7. Refresh Regularly

To be viable, a company must continually review,reexamine, and revise its vision, strategies, andimplementations.

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 andwhat to change

Keep companys website design and content fresh andexciting to attract new visitors and to keep them coming


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Seven-stepProcess(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 whereswitching costs are low or nonexistent

E-Business promises lower prices andbetter selection for consumers, andunlimited opportunities for newbusinesses.

S f ll I t ti Di it l P j t


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Enterprises define and build powerful business modelsthat will facilitate their ability to compete in the globaldigital economy.

Revitalizing Your Digital Business Modelwill help senior

managers address the following issues:

What is the source of competitive advantage for yourdigital business model?

How can you manage business complexity in the global

digital economy? How do you design your organization to ensure ongoing

development and exploitation of internal and externallyavailable business capabilities?

How can you ensure that every employee uses the

growing availability of data to contribute to theenter rises business ob ectives?

Successfully Integrating Digital Projects

Into The Overall Business Model

E b i F k


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E-business Framework

E-Business does not affect an organizations fundamental goals,

rather it provides a new ways to achieve them:

E-business adoption strategy and direction

Vision must be communicated to all stakeholders

The interaction among stakeholders

Smaller network, more flexible organizations, shifting priorities

and roles

Information system and technology infrastructureMechanism to improve, enrich, change, and deepen

relationships with key stakeholders

CultureNeed to adapt the new way, will impact on rules, belief,


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E-Business Development Model


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E-Business Planning Model

S f f


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Successfully Transformed Digital

Organisation


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My product is so popular that I dont need to go online

If your product is that popular, there are thousands ofcustomers searching for it online already.

If you have a great thriving business, going online doesnt

have to mean going completely virtual think of the Internet

as an additional marketing tool. Be warned, the only area of sales that has consistently

grown throughout the recession is the online retail world.

It really is the place to be.

My customers dont use the Internet

The Internet demographic can no longer be described by

the term those nerdy kids.

Its used by one and all

So, Time To Bust A Few Misconceptions.


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My product isnt suitable

You can buy coffins, wives, a pint of milk, pet food online.

I dont understand the Internet

The main thing that any business needs to understand is

that, for business purposes at least its just another form of

advertising.

Virtual shops are easier to manage and cheaper than the

non-virtual kind, but ultimately its just a cunning way of

getting your products into peoples homes.

There are a range of sources of information and help

available for businesses looking to enter the virtual world,

including a massive range of advice and information from

organizations such as Business Link.

So, Time To Bust A Few Misconceptions.


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Necessity

While reinvention isnt a new idea in and of itself, its only in thelast 15 years or so that the process has moved businesses from

the tangible to the intangible, from the physical to digital.

Digital technology allows for greater cost savings, scale, access,and flexibility.

Music was transformed from one tangible medium to another formore than 100 years until Apple leveraged its digitization, takingthe music industry in a new direction via iTunes and the iPod.

Apples contribution isnt the creation of digital music itself; its the

seizing of the opportune moment to innovate within an emergingspace.

So while timing isnt everything, digital has made it matter a lotmore.

Bein first isnt as im ortant now com ared to ensurin that the


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THANK YOU

strategic outlook of digital business

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