The University of Hong Kong Faculty Of

e-Business Transformation – Spring 2009 1

The University of Hong Kong Faculty of Business and Economics

School of Business

e-Business Transformation Spring 2008

I. INFORMATION ON INSTRUCTOR AND COURSE

Professor: Ali Farhoomand Email: [email protected] Web: www.business.hku.hk/faculty.staff Office Location: MW 729G Telephone: 2859-7069 Tutor: Becky Tsang Email: [email protected] Text: Managing e-Business Transformation, by Ali Farhoomand, Palgrave/MacMillan Publishing

Ali Farhoomand is Professor of Innovation and Information Management and the founding Director of Asia Case Research at School of Business. He has taught and conducted research in universities across Asia Pacific, North America, and Europe, including INSEAD and as a Visiting Scholar at MIT Sloan School of Management. A three-time winner of the Society for Information Management Paper Award, Ali has written several books,

published numerous refereed articles, and developed over 100 business case studies, several hundred thousand copies of which distributed worldwide. Last year he conceived and produced the popular FocusAsia Business Leaders

Video Series featuring prominent Asian CEOs, which was aired by many global TV networks, including the BBC World and the Public Broadcasting Service. Ali is recipient of two Faculty Teaching Awards as well as the

prestigious 2008 University Outstanding Teaching Award. For hobby, he dabbles in painting, plays drums and engages in armchair philosophy.

II. COURSE DESCRIPTION AND OBJECTIVES Course Description: The Internet has shortened business transaction cycles, expanded market reach, and allowed companies to build and manage customer relationship more effectively. Today almost every company is trying to find out how best to deploy the Internet throughout its value chain to improve operational effectiveness, entrench strategic position, and ultimately create sustainable competitive advantage. Transformational initiatives, however, are difficult to implement and prone to failure as companies must grapple with a whole host of strategic, organizational, technical and increasingly global issues. This course builds on the basic principles of business and economic to examine the role of the Internet as a strategic necessity. It provides a roadmap for transforming companies into inter-networked enterprises where proprietary and shared infrastructures are used to link customers, suppliers, partners and employees to create superior economic value. You will learn how the Internet can provide firms with the necessary infrastructure needed to align their business strategy with IT strategy, streamline front-end and back-end processes, manage relationships and partnerships, and adapt to emerging global issues such as outsourcing and offshoring.


Course Objectives:

1. To learn the theories of organizational transformation networked organization, and dynamic organizational equilibrium.

2. To develop a working prototype of an Internet-based business system. 3. To work in teams effectively. 4. To develop a global outlook. 5. To articulate and make a business case.

III. LEARNING OUTCOMES Upon the successful completion of this course, students should:

1. Know how to apply complexity and chaos theories to study organizational transformation 2. Understand the theory of dynamic organizational equilibrium and its application in

studying the relationships between business strategy, technology deployment and process management.

3. Be able to outline the specific attributes of networked organizations. 4. Be able to develop simple Internet-based systems. 5. Be able to work in teams effectively. 6. Demonstrate a solid understating of global issues as they relate to organizational

transformation. 7. Be able to write effective business reports, and make compelling presentations.

IV. ALIGNMNET OF PROGRAM AND COURSE OUTCOMES

Program Learning Outcome

Course Learning Outcome

Principles and theories of business and economics

• Understanding chaos and complexity theories • Understanding dynamic organizational equilibrium • Understanding process management • Understanding network theory

Global perspective

• Understanding global issues surrounding

transformation

Apply knowledge to real-life problems

• Building a workable information system prototype

Working in Teams

• Teamwork

Effective communication skills

• Oral and written communication


V. TEACHING AND LEARNING ACTIVITIES

This course relies on a variety of activities to inculcate the fundamental principles of organizational transformation. The course is entirely student-centered; there are no exams. During the course, we will use the following activities:

• In-class discussions: A significant part of learning happens in the classroom in form of

contribution to the case and class discussions. • Using the case method. The case method will be used as a vehicle not only to solve

problems but more importantly to ask the right questions and see the unseen. • Watching videos. Most of cases used in the course are accompanied by professionally

produced video tapes of the corresponding companies and executives. VI. ASSESSMENT

Learning outcome

Teaching and Learning

Activity

Assessment

• Understanding chaos and

complexity theories • Understanding dynamic

organizational equilibrium • Understanding process

management • Understanding network theory

Lectures; in-class discussions, case studies, videos

Attendance, participation in class discussions

• Understanding global issues

surrounding transformation

Lectures, in-class discussions, case studies, videos

Attendance, participation in class discussions

• Building a workable information system prototype

Tutorials, term projects

Attendance, participation in tutorials, term projects

• Communicating thoughts

effectively

Videos, in-class exercises, case assignments, term projects

Attendance, participation in class discussions, case assignments, term projects


VII. STANDARDS FOR ASSESSMENT

1. Class Contribution 30%

2. Case Presentation 20%

3. Written Case Analyses 20%

4. Design Project 30% Notes to Assessment:

1. Success of this course depends on your individual and collective contribution to the case analyses and class discussions. Please read the assigned readings and prepare the cases before each class so that you could contribute effectively to case discussions. Learning with cases occurs at three stages: at individual-level, at group-level and in classroom. So after you have prepared a case individually you should discuss it in your study group before coming to the class.

You are expected to participate voluntarily, or will be called upon, to contribute to case

discussions. The learning objective of this part of the course is to enhance your communication, listing, and articulations skills. Your grade for this part will depend on your ability to apply relevant theories and concepts to the case under study, listen carefully to the discussion under way, organize your remarks, and articulate your thoughts and ideas in coherent and logical manner.

Please see the following Guidelines for Assessing Contribution to the Learning Process in the Case Method:

1. Facts 2. Analysis 3. Synthesis 4. Presentation 5. Learning 6. Consistency

Am I sticking to the case facts? Have I distinguished the critical and relevant from incidental and irrelevant? Have I organized the conclusions of my analysis into an intelligible whole?

Is my presentation clear and to the point? Does it follow the flow of the discussion, or is it an isolated comment?

Am I listening to what others are saying, reassessing my own analysis and conclusions accordingly?

Do I do this consistently and as a rule?

2. Another learning objective of this course is to train you to work effectively in teams.

Each group of two students will make formal presentation of an assigned case. Your presentations should take approximately 45 minutes. Your grade for this part will depend on your collective ability to deliver professional and persuasive presentations. In effect you have to be able to “make a case”.

1. In addition to spoken communication, this course seeks to improve your writing. In this

light, you should submit written analysis of two assigned cases. Your reports should be


approximately five pages double-spaced and should also include an executive summary. They must be handed in before the start of the class. You need to pay attention to the following issues:

• Are all major issues and problems in the case identified? • Are your analysis and interpretation of the case accurate, valid and appropriate? • Are your recommendations based on a synthesis of your analysis? • Is your implementation plan credible? • Have you made a compelling and credible “case”? • Is your Executive Summary accurate and complete? • Is your presentation clear, appropriate and organized?

Please see the Guidelines on Preparing the Case Assignments on the next page.

3. You are expected to understand what it takes to design, develop, and implement an

information system. By the 4th week of the course, your group should come up with an idea, in the form of a business proposal, for doing business on the Web. The business plan should include a feasibility study, as well as detailed financial projections and marketing plan. You are expected to perform the necessary information requirement analysis before designing the Web site that would satisfy the specifications of your proposed business plan. During the tutorials you will learn how to use appropriate software development tools to build a working prototype of your system. All groups will present their projects in the last two sessions of the course. Your grade for this part will depend on the following: i) innovativeness of your business plan, ii) completeness of your information requirement analysis, iii) functionality and ease of use of your prototype.

VIII. ACADEMIC AND CLASS CONDUCT

• Plagiarism and copying of copyright materials are serious offences and may lead to disciplinary actions. You should read the chapters on and “Plagiarism” and “Copyright” in the Undergraduate/Postgraduate Handbook for details. You are strongly advised to read the booklet entitled “What is Plagiarism?” which was distributed to you upon your admission into the University, a copy of which can be found at www.hku.hk/plagiarism. A booklet entitled “Plagiarism and How to Avoid it” is also available from the Main Library.

• The use of all electronic devices, including computers, mobile phones and games is strictly prohibited.

You are required to attend all the classes on time. In case you cannot attend a class you should inform the instructor beforehand.


Guidelines on Preparing Written Case Assignments

This guide is designed to help you prepare for the written assignments for this course, and contains additional guidelines that are crucial and helpful to you. Please read carefully and do not hesitate to ask questions.

Submission All written assignments should be submitted online before the deadline. Late submissions are NOT allowed. Approval for any alternative arrangements due to bona fide work or personal reasons must be obtained from Professor Farhoomand in advance.

Formatting Standards Assignments should be in Microsoft Word. Please include in the filename your last name, first name, and assignment title, e.g., chan_john_assignment1.doc. For the group assignment you may use your group number or name instead, e.g., group_2.doc. The main body of your report should be double-spaced using Times New Roman, Pt 12 (except for headings, exhibits, tables, etc.). The page size should be A4, with 1-inch margins (top, bottom, left, and right).

Structure and Content of Written Assignment Your individual assignment shall consist of a cover page, a one-page executive summary, the report itself, references (if any), and exhibits/appendices (if any). Please include on the cover page: assignment title, course title, instructor name, student name, student ID, and submission date. The one-page executive summary should be single-spaced and no more than one page in length. It is a summary of your entire report and should allow the reader to grasp the major issues, the pro and cons, and the recommendation without having to read the report itself. Do not confuse the executive summary with the introduction in the report. The executive summary is NOT the introduction and they are NOT substitutes of each other. It is recommended that the report itself include the following major sections: introduction, analysis of the issues, analysis of options, recommendation, and conclusion (depending on the assignment itself, you may have to make your own adjustments). The report is graded on the quality of the analysis, logic and coherence of the arguments, as well as its readability, and overall organization and presentation. Please follow the 1500-word guideline and include a word count at the end of your report. The word count should include only the report itself, i.e., it should exclude cover page, executive summary, references, exhibits, etc.

Plagiarism, or using other people’s words or ideas as if they were your own, is a serious academic offense. When using other people’s work, you must properly cite and reference the source. Please use a consistent referencing style throughout your report. Even though you may use exhibits to supplement your written report, please bear in mind that exhibits should not replace written analysis.


IX. COURSE WEEKLY SCHEDULE

Part I – e-Business Strategy and Valuation

Session 1 – Jan. 15

Introduction

Session 2 – Jan. 22 Complexity, Chaos, and Business Order

Case 1: Does IT Payoff: Strategies of Two Banking Giants

Session 3 – Feb. 5 e-Business Strategy I

Case 2: TAL Apparel Limited: Stepping Up the Value Chain

Session 4 – Feb. 12 e-Business Strategy II

Case 3: Citibank

Part II – e-Business Infrastructure

Session 5 – Feb. 19 e-Business Infrastructure I

Case 4: PricewaterhouseCoopers

Session 6 – Feb. 26 e-Business Infrastructure II

Case 5: alibaba.com

Part III – e-Business Process Management

Session 7 - March 12 Enterprise Planning Systems Case 6: SAP Platform Strategy

Session 8 – March 19

Customer Relationship Management Case 7: Grey Worldwide

Session 9 – March 26

Supply Chain Management Case 8: Constructing an e-Supply Chain at Eastman Chemical Company


Part IV– e-Business Implementation

Session 10 - April 2

e-Business Implementation and Global Considerations Case 9: Daksh and IBM: Business Process Outsourcing In India: Part 1

Sessions 11– April 9

Project Presentations

Session 12 - April 16 Review


Part I – e-Business Strategy and Valuation


Introduction Learn about:

Transition from industrial revolution to digital revolution Impacts of the Internet on the dynamics of today’s economy Factors shaping the networked economy Technology-productivity paradox Process of creative destruction Network effect Information as an experience good Economics of information



Complexity, Chaos, and Business Order

Learn about:

e-Business transformation cycle Transformation success as a moving target Causes of failure of transformation initiatives Chaos and complexity Paradoxes surrounding organisational transformation

Read:

Chapter 1

Prepare Case: Case Questions:

Does IT Payoff: Strategies of Two Banking Giants

1. Some have argued that companies should spend less on IT and wait longer to invest in more matured technologies because IT is a commodity and brings little competitive advantage. If this is the case, how could these two banks justify their multi-billion dollar annual investments in IT?

2. How would you assess IT investment strategies at HSBC and Citigroup? Do they invest in IT primarily as a way of cutting costs and improving their operational efficiencies, or do they invest strategically with a view to entrenching their competitive positions?

3. In general, how should companies go about assessing the value of their IT investments? In your assessment, which of the two banks is cleverer in its IT investments?


Session 3 – Feb. 5

e-Business Strategy I

Learn about:

Strategy and e-business transformation Forces transforming strategy Achieving sustainable competitive advantage

Read:

Chapter 2


TAL Apparel Limited: Stepping Up the Value Chain

1. Discuss the dynamics of the apparel value chain and how the global apparel industry is classified as a buyer-driven industry.

2. Analyze the value chain of the global apparel industry, and discuss the roles and relationship of all industry participants from raw material providers, manufacturers, wholesalers, to retailers.

3. Discuss how the use of IT has enabled TAL to integrate and synchronize its operations with those of its major customers, and how this integration and synchronization contribute to the company’s sustainable competitive advantage.

4. Discuss the benefits and impacts of the Vendor Managed Inventory (VMI) and Made-to-measure initiatives to TAL, and how these initiatives have contributed to the strategic repositioning of the company in the apparel value chain.



e-Business Strategy II

Learn about:

Major factors influencing strategic IT investment decisions Forces that erode competitive advantage Steps involved in e-business strategy Dimensions of e-business architecture

Read:

Chapter 3


Citibank's e-Business Strategy for Global Corporate Banking

1. How does Citibank differentiate its e-business product offering from

that of its competitors? How could Citibank create its own competitive advantages in the market place?

2. Citibank’s strategic intent is to convert its traditional money management business into an e-business framework. How does Citibank transform its traditional assets into digital assets? What issues, if any, do you envision that Citibank must overcome in order for the implementation to be successful?

3. Is there any growth potential for this business? What opportunities and threats does Citibank face?

4. How could Citibank’s Cash and Trade Group develop different e-business products for different industries? How can Citibank identify what it needs to offer when the market is changing so rapidly?

5. One of Citibank’s challenges is managing vendors, suppliers and clients without allowing them to exploit its clients. How does Citibank protect its clients from its strategic partners?

6. Citibank is serving two distinctly different market segments – MNCs and SMEs. How should Citibank manage the discrepant needs of the two market segments? What should Citibank do to encourage clients to move their transactions on-line?


Part II – e-Business Infrastructure


e-Business Infrastructure I Learn about:

e-Business infrastructure in the context of evolving enterprise

technologies Building blocks of e-business infrastructure Role of emerging technologies in enhancing competitive advantage

Read:

Chapters 4


The PricewaterhouseCoopers KnowledgeCurve and the Spinning Off of PwC Consulting

1. What have been the strengths of PwC’s business up to May 2002? 2. What is the significance of the relationship between the technical

architecture of a knowledge base and competitive strategy? 3. How is the portal different to the KnowledgeCurve framework? 4. What is the significance of the content structure of the knowledge

base to the usefulness and effectiveness of the portal? 5. When choosing between the different integration options for

migrating from the legacy infrastructure to the portal, what factors should influence PwC Consulting’s decision?

6. What should be PwC Consulting’s interim solution in view of the IPO scheduled for August and the release of the portal in Q4?



e-Business Infrastructure II

Learn about:

• Role of integration in successful e-business transformation • Security consideration • Emerging technologies

Read:

Chapters 5


Alibaba.com (ACRC case) 1. In light of Alibaba.com’s IPO, what is a good time for entrepreneurial

start-ups to go public? 1. How should Alibaba.com optimise its use of proceeds from the IPO? 2. Having gone through the IPO, what should the next steps be for a

company like Alibaba.com? 3. What would be the possible constraints facing the company?


Part III – e-Business Process Management

Session 7 - March 12

Enterprise Planning Systems

Learn about:

• ERP in the context of e-business • ERP as the backbone of a firm’s information capability • Role of ERP in improving operational efficiency • Importance of process integration and synchonisation

Read:

Chapters 6


SAP Platform Strategy (ACRC case)

1. Discuss the essence of SAP’s previous and current strategies. 2. What are the main differences in these strategies? 3. Analyze SAP’s new business design and strategy in details. 4. What are the main features of this new strategy? 5. Assess the key competitors. How would SAP compete with these

players?


Session 8 - March 19

Customer Relationship Management

Learn about:

CRM as a process Benefits arising from CRM processes CRM and competitive positioning CRM’s strategic and economic value Critical value of brand equity in an online environment

Read:

Chapter 7


Grey Worldwide : Strategic Repositioning through CRM

1. Analyse the Asian CRM market. What opportunities and threats

could Grey WW-HK/China leverage to enhance its business model? 2. What is your understanding of CRM? How can Grey WW-

HK/China pursue the development of CRM? 3. Compare traditional customer service with CRM. What traditional

business assets can Grey WW-HK/China rely on and how it can leverage them to capture e-marketing capabilities?

4. How can Grey WW-HK/China redefine client value using CRM; what differentiation technique should it employ?

5. How can Grey WW-HK/China integrate its back-end and front-end processes to enable a customer-oriented CRM process based on its existing business strengths?

6. Build a customer process blueprint that Grey WW-HK/China can employ to maximise the utility of its existing customer base.

7. Build a framework for Grey WW-HK/China to assess its CRM strategy and position itself in Asia’s CRM market?

8. Suggest criteria that Grey WW-HK/China should use to measure its CRM performance, given its business model.


Session 9- March 26

Supply Chain Management

Learn about:

Traditional supply chains mechanisms Key differences between traditional, integrated and collaborative

supply chains SCM integration challenges Role of SCM metrics in measuring performance

Read:

Chapter 8


Constructing an e-Supply Chain at Eastman Chemical Company

1. What is the significance of an integrated supply-chain for Eastman? 2. What are the underlying requirements for integration and what could

be the limitations? 3. Identify the business needs of each company (Eastman and Nagase)

and the systems and business processes that would require reengineering and integration.

4. What are the options available to Nagase? 5. Evaluate the full benefits that could be gained by both Eastman and

Nagase through ISS and present this as if you were writing an independent consultant’s report to Nagase.


Part IV– e-Business Implementation

Session 10 - April 2

e-Business Implementation and Global Considerations Learn about:

The major issues surrounding the development of a legal framework

for e-business The concept of jurisdiction Threats to intellectual property rights and ways in which businesses

can protect their IPR Digital certificate laws pertaining to electronic transactions

Read:

Chapter 10

Prepare Case:

Case Questions:

Daksh and IBM: Business Process Outsourcing In India: Part 1

1. Discuss the dynamics of the global BPO industry. What are its key drivers? Can India sustain its lead as the world’s preferred offshoring destination?

2. In terms of the lifecycle of an enterprise, describe the progression of Daksh from inception to maturity. Evaluate the harvest options open to the founding members and suggest the best way forward.

3. What are the common paradoxes associated with high-growth industries?

4. What prompted Daksh to sell out to IBM instead of pursuing the much-publicised IPO?

Documents

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