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Module 9:E-business Planning
2
Agenda
• E-business development step-by-step
• E-business strategy
• Implementation Planning
Regional Training Workshop for Enterprise Support Agencies to Promote E-business for SMEs in the Greater Mekong Subregion (GMS), 26-28 June 2006, Bangkok
3
E-business development step-by-step
Planning Implementation Operation
Regional Training Workshop for Enterprise Support Agencies to Promote E-business for SMEs in the Greater Mekong Subregion (GMS), 26-28 June 2006, Bangkok
4
E-business development step-by-step
What are the steps to success ?
STEP 1 – e-Business strategy
STEP 2 – Implementation plan
STEP 3 - Implementation
STEP 4 - Operation
Planning
Implementation
Operation
Regional Training Workshop for Enterprise Support Agencies to Promote E-business for SMEs in the Greater Mekong Subregion (GMS), 26-28 June 2006, Bangkok
5
E-Business Strategy
Fundamental questions …..
How to develop e-business ?
What type of e-business?
Why you want to develop that type of e-business ?
E-business strategy
….and answers.
Implementation plan
Regional Training Workshop for Enterprise Support Agencies to Promote E-business for SMEs in the Greater Mekong Subregion (GMS), 26-28 June 2006, Bangkok
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E-Business strategyWhat is strategy ?
Family
Inequalities
Environment$$$
Now Future
Regional Training Workshop for Enterprise Support Agencies to Promote E-business for SMEs in the Greater Mekong Subregion (GMS), 26-28 June 2006, Bangkok
Competition
7
E-Business strategy
1. Propose you future situation
2. Assess your current situation (internal/external)
3. Choose your strategy
Environment$$$
Now Future
Regional Training Workshop for Enterprise Support Agencies to Promote E-business for SMEs in the Greater Mekong Subregion (GMS), 26-28 June 2006, Bangkok
8
E-Business strategyPropose you future situation
• Should be specific (time and figures)• Profit oriented
“Increase revenue by 30% in 2 years”“Increase market share by 50% in 1 year”
• Cost oriented“Reduce cost by 20% in 1 year”
• Client oriented
“Increase client satisfaction by 50% in 2 years”
Market
Efficiency
Improve customer servicesRegional Training Workshop for Enterprise Support Agencies to Promote E-business for
SMEs in the Greater Mekong Subregion (GMS), 26-28 June 2006, Bangkok
9
Assess your current situation
• Internal factorsStrengthsWeaknesses
• External factorsOpportunitiesThreats
E-Business strategy
Regional Training Workshop for Enterprise Support Agencies to Promote E-business for SMEs in the Greater Mekong Subregion (GMS), 26-28 June 2006, Bangkok
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E-Business strategyTo conduct the SWOT Analysis you should
consider:• What is your business sector?• Who are the customers?• What are the current practices of selling and
buying?• Who are the major competitors? (How intense is
the competition?)• What e-strategies are used, by whom?• What are the major opportunities and threats?• What are the existing and potential partnerships
for developing e-Business?Regional Training Workshop for Enterprise Support Agencies to Promote E-business for
SMEs in the Greater Mekong Subregion (GMS), 26-28 June 2006, Bangkok
11
E-Business strategy
SWOT Analysis
• Internal factors
Strengths Original productPopular productHigh quality
Weaknesses Lack of IT expertiseNo WEB presence
• External factorsOpportunities
External marketNew trendB2B market places
Threats Competitors
Regional Training Workshop for Enterprise Support Agencies to Promote E-business for SMEs in the Greater Mekong Subregion (GMS), 26-28 June 2006, Bangkok
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Strengths (S)Original productPopular product
High quality
Weaknesses (W)Lack of IT expertiseNo WEB presence
Opportunities (O)External market
New trendB2B market places
Threats (T)Competitors
INTERNAL FACTORS
EXTERNAL FACTORS
SO Strategies Generate strategies
here that use strengths to take
advantages of opportunities
WO StrategiesGenerate strategies here
that take advantage of opportunities by
overcoming weaknesses
ST Strategies Generate strategies
here that use strengths to avoid
threats
WT Strategies Generate strategies here that minimize weaknesses and
avoid threats
SWOT Diagram
Regional Training Workshop for Enterprise Support Agencies to Promote E-business for SMEs in the Greater Mekong Subregion (GMS), 26-28 June 2006, Bangkok
13
Issues in e-Business Strategy
• Advantages• Chance to capture
large markets• Establishing a brand
name• Exclusive strategic
alliances
• Disadvantages• Cost of developing initiative is
usually very high• Chance of failure is high• System may be obsolete as
compared to second wave arrivals
• No support services are available at the beginning
To be a first mover or a follower?
Regional Training Workshop for Enterprise Support Agencies to Promote E-business for SMEs in the Greater Mekong Subregion (GMS), 26-28 June 2006, Bangkok
14
Issues in e-Business Strategy
E-Business Awareness / Owner commitment• Senior managers tend to:
• Know the whole spectrum of business
• Possess knowledge and authority to lead the e-business adoption
Regional Training Workshop for Enterprise Support Agencies to Promote E-business for SMEs in the Greater Mekong Subregion (GMS), 26-28 June 2006, Bangkok
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Issues in e-Business StrategyShould you join an e-Business Portal?
• Several benefits
• Costs and limitations
• E-Marketing
• sell-side and buy-side infrastructure
• Which Portal to join?
Regional Training Workshop for Enterprise Support Agencies to Promote E-business for SMEs in the Greater Mekong Subregion (GMS), 26-28 June 2006, Bangkok
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E-Business strategy
1. B2B e-business
2. Target external market
3. Develop own website and joint an B2B Portal
4. Use ISP to host websiteRegional Training Workshop for Enterprise Support Agencies to Promote E-business for
SMEs in the Greater Mekong Subregion (GMS), 26-28 June 2006, Bangkok
17
E-Business strategy
How to know if the strategy will achieve the proposed result?“Increase revenue by 30% in 2 years”
Regional Training Workshop for Enterprise Support Agencies to Promote E-business for SMEs in the Greater Mekong Subregion (GMS), 26-28 June 2006, Bangkok
18
Business Case
• Business case is used to:
• Provide justification for investments
• Provides bridge between plan and the execution
• Clarifies how the organization will use resources to
accomplish the e-strategy
Regional Training Workshop for Enterprise Support Agencies to Promote E-business for SMEs in the Greater Mekong Subregion (GMS), 26-28 June 2006, Bangkok
19
Cost-Benefit and Risk Analysis• Revenue model
• Properly planned revenue model is a critical success factor
• Revenues from sales depend on customer acquisition cost and advertisement
• Must be figured into the analysis• Costs
• Implementation and operation costs• Recover the investment
• Should be able to recover the investment in up to 3 years
Regional Training Workshop for Enterprise Support Agencies to Promote E-business for SMEs in the Greater Mekong Subregion (GMS), 26-28 June 2006, Bangkok
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E-Business Strategy• Outputs:
• Where you want to be in the future• Why e-business• What type of e-business (Estimated Scope)• Business case
• Estimated Time• Estimated Cost
Regional Training Workshop for Enterprise Support Agencies to Promote E-business for SMEs in the Greater Mekong Subregion (GMS), 26-28 June 2006, Bangkok
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How to implement e-business
Implementation planning
• Start• Estimated scope• Estimated time• Estimated cost
• End• Planned Activities• Planned schedule• Human resources• Planned
procurement• Planned budget• Manage Risks
Regional Training Workshop for Enterprise Support Agencies to Promote E-business for SMEs in the Greater Mekong Subregion (GMS), 26-28 June 2006, Bangkok
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Implementation planning
Refine Scope
Break the outputs in
small pieces (WBS)
Identify Activities
Identify Resources
Develop Schedule
Manage Risks
Plan procurement
Plan Budget Project Plan
Regional Training Workshop for Enterprise Support Agencies to Promote E-business for SMEs in the Greater Mekong Subregion (GMS), 26-28 June 2006, Bangkok
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Refining Scope• Example:
• One initial page with the basic information regarding the company and links to other pages with further information on its products, the company itself, and contact information.
• Try to get the details• Building an Order: shopping cart size, history• Tax and Shipping: calculated before purchase?• Payment options: credit cards, purchase orders
• Priorities1. Must have2. Nice to have3. Maybe in the future• These priorities are also influenced by budget, development time, etc
Regional Training Workshop for Enterprise Support Agencies to Promote E-business for SMEs in the Greater Mekong Subregion (GMS), 26-28 June 2006, Bangkok
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Work Breakdown Structure (WBS)e-business
e-business web site
Off-line infrastructure
Web site layout
Web site Content
Web service infrastructure
Network ready
Web server ready
Hardware installed
Webserver installed
Web site text ready
Product ‘s images ready
Internal capacity on e-business
operation
Internal capacity on communications with
foreign clients
Intermal capacity on maintenance of web content
Intermal capacity on maintenance of web service
Regional Training Workshop for Enterprise Support Agencies to Promote E-business for SMEs in the Greater Mekong Subregion (GMS), 26-28 June 2006, Bangkok
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Identify ActivitiesOutcomes Activities
Web site layout - Develop web site layout
Web site text ready - Develop content of web site
Product’s images ready - Obtain images of green cooperative’s products- Process the images to post in the web site
Network ready - Install Internet access
Hardware installed - Install web server (Hardware)
Web server installed - Install web server software
Internal capacity on maintenance of web content
- Install software for content management- Develop internal capacity on maintenance of web content
Internal capacity on maintenance of web service
- Develop internal capacity on maintenance of web service
Internal capacity on communications with foreign clients
- Develop procedures for communications with foreign clients- Develop templates for communications with foreign clients- Develop internal capacity to deal with foreign clients
Regional Training Workshop for Enterprise Support Agencies to Promote E-business for SMEs in the Greater Mekong Subregion (GMS), 26-28 June 2006, Bangkok
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Identify ResourcesTasks Resources Required skills
- Develop web site layout - External - Web design
- Develop content of web site - 1 Internal staff – 2 hours per day, for up to 3 months
- English language, cooperative’s history, products and services.
- Obtain images of green cooperative’s products
- 1 Internal staff - Photo shooting
- Process the images to post in the web site
- External - Web design
- Install Internet access - External - Data Network
- Install web server (Hardware) - External - Hardware installation
- Install web server software - External - Web server installation and configuration
- Install software for content management
- External - Content management configuration
Regional Training Workshop for Enterprise Support Agencies to Promote E-business for SMEs in the Greater Mekong Subregion (GMS), 26-28 June 2006, Bangkok
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Develop Schedule# Activity Predeces
sorMonths
1 2 3 4 5 6 7 8 9 10 11 12
1 Develop content of web site
2 Obtain images of green cooperative’s products
3 Process the images to post in the web site
2
4 Develop web site layout
5 Install Internet access
6 Install web server
7 Install web server software 6
8 Install software for content management
6
Regional Training Workshop for Enterprise Support Agencies to Promote E-business for SMEs in the Greater Mekong Subregion (GMS), 26-28 June 2006, Bangkok
28
Procurement Plan
• Conduct your own research to be prepared to purchase. It includes things such as current technologies and possible companies to contract.
• To plan the procurement you should know basically what to purchase and when to purchase
Regional Training Workshop for Enterprise Support Agencies to Promote E-business for SMEs in the Greater Mekong Subregion (GMS), 26-28 June 2006, Bangkok
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Budget Plan
• Add costs of internal and external resources
• Estimate the monthly expenditure
Regional Training Workshop for Enterprise Support Agencies to Promote E-business for SMEs in the Greater Mekong Subregion (GMS), 26-28 June 2006, Bangkok
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Manage Risk• Identify risks
• ISP, e-market Portal, Web developers• Financial
• What to do?• Avoid
• Revise planning (scope, activities, schedule, budget)
• Mitigate• Reduce impact• Reduce probability
Regional Training Workshop for Enterprise Support Agencies to Promote E-business for SMEs in the Greater Mekong Subregion (GMS), 26-28 June 2006, Bangkok
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Project Plan• The project plan is the compilation of all planning
documents developed. It describes how the project will be implemented and it should be used is a guidding tool.
• Should not be considered a static document. Make sure that the project is implemented according to the plan but also conduct the on-going planning and update the project plan to reflect the changes.
• It is a good practice to keep the baselines regarding time (initial schedule), cost (Budget plan), and scope (Scope statement). They will be useful tools to monitoring the implementation of the project.
Regional Training Workshop for Enterprise Support Agencies to Promote E-business for SMEs in the Greater Mekong Subregion (GMS), 26-28 June 2006, Bangkok
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Summary• Planning, implementing and operating• Planning = strategy + implementation plan• Strategy = Future, now (internal/external), choices• Strategy will reach the target? Business case• Implementation plan
• Scope• Activities• Resources• Schedule• Procurement• Risks• Project Plan
Regional Training Workshop for Enterprise Support Agencies to Promote E-business for SMEs in the Greater Mekong Subregion (GMS), 26-28 June 2006, Bangkok
33
Q & A
Conclusion
Regional Training Workshop for Enterprise Support Agencies to Promote E-business for SMEs in the Greater Mekong Subregion (GMS), 26-28 June 2006, Bangkok