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MGT 235
Planning, Process, and Structure in Electronic Business
Week 3
Planning Your E-Business Path:Choices of Development
Choose to: Support transactions
externally internally
Provide service externally internally – this area is overlooked – for instance
support managers and workers to work from home
Or both?
*Adapted from www.dotcomadvisor.com – 2000
Planning Your E-Business Path:Choices of Development
Choose to do: Nothing Minimal online presence (e.G., HR information) On-line catalog On-line transactions Automated value chain (e.G., Online
procurement) Market making site Super market site
Planning Your E-Business Path:Choices of Development
Choose to do as: Additional outlet (extension of company) Separate online division of company E-business only (drop “mortar” existence) Partnership
Choices depend on: Nature of current business Competitive environment operating within Resources available
Planning Your E-Business Path
Industry and competitive analysis SWOT
Identify your organizational objectives Want to increase effectiveness of salesperson’s
time
Identify ways e-Business can help achieve the objectives Permit customers to order online / salesperson
can spend time showing new products
Planning Your E-Business Path
Determine what resources are required Need: website, database, computer to process
orders, trained user to process orders Plan the implementation
Outsource web site creation / maintenance, plan content, train users
Determine how you will monitor e-Business results / performance Require periodic site reports from ISP,
measure increase in new product sales
Motivation General pressure to “get on the net” Promote business entity
Information Financial HR
Technology issues Simple, In-sourced
Level I E-Commerce Development:Minimal
*Adapted from www.dotcomadvisor.com – 2000
Level I E-Commerce Development:Minimal
Purchasing Production Sales
HumanResources
Finances
*Adapted from www.dotcomadvisor.com – 2000
Motivation Pressure from customers and competitors
Information Product Service
Technology issues Searching, maintenance (e.g., changing product
information) Customer personalization On-line activity tracking
Level II E-Commerce Development:On-line Catalog
*Adapted from www.dotcomadvisor.com – 2000
Level II E-Commerce Development:On-line Catalog
Purchasing Production Sales
HumanResources
Finances
Marketing
*Adapted from www.dotcomadvisor.com – 2000
Motivation Exploit Internet as new channel of distribution
Information Catalog / order
Technology issues Interactivity Integration of core businesses functions (e.g., sales and
accounting) Business issues
Order fulfillment capacity Building site traffic
Level III E-Commerce Development:On-line Transactions
*Adapted from www.dotcomadvisor.com – 2000
Level III E-Commerce Development:On-line Transactions
Purchasing Production
HumanResources
Finances
MarketingSales
*Adapted from www.dotcomadvisor.com – 2000
Motivation Customers and suppliers “want” more info Reduce cycle times and costs
Information Manufacturing, purchasing, shipping
Technology issues Systems integration Outsourcing
Business issues Sharing operational information with external entities
Level IV E-Commerce Development:Automated Value Chain
*Adapted from www.dotcomadvisor.com – 2000
Level IV E-Commerce Development:Automated Value Chain
Purchasing Production
HumanResources
Finances
MarketingSales
*Adapted from www.dotcomadvisor.com – 2000
Motivation Product comparisons, e.g., http://www.amazon.com
Information Competitor’s products/services Third-party product/service comparisons
Technology issues Handling traffic loads Monitoring/mining traffic
Business issues Corporate identity Objectivity of product comparisons
Level V E-Commerce Development:Market Making
*Adapted from www.dotcomadvisor.com – 2000
Level V E-Commerce Development:Market Making
Purchasing Production
HumanResources
Finances
MarketingSalesReverse
Marketing
Competitors
Motivation Become the “preferred” one-stop shop (i.e., marketplace),
e.g., http://www.sabre.com/
Information Complimentary products/services
Technology issues Integrating associates systems/information
Business issues Managing customer AND supplier suggestions and
requirements
Level VI E-Commerce Development: Super Market Making
*Adapted from www.dotcomadvisor.com – 2000
Level VI E-Commerce Development: Super Market Making
Purchasing Production
HumanResources
Finances
MarketingSalesReverse
Marketing
Complimentors
Competitors
Starting An E-Business
Are you an entrepreneur? Can you start and grow the business?
Identify and define your e-Business “idea” Create business plan Identify intended customer market Identify legal business form Get financing Implement plan / operate business
Identify and Define Your e-Business Idea
Is it unique? Or is it an “internet remake” of an existing idea?
Is it internet suitable? Does its value come from faster or wider
distribution? Does it exploit other online advantages? Would the idea be a “first mover”? Is it scalable? Can it adapt quickly to changes in the e-
Business environment?
The e-Business Plan: The Purpose
An assessment of a business idea Critical Objective Un-biased Unemotional
Identifies weaknesses and oversights Highlights strengths Used to inform potential investors
The e-Business Plan:The Contents
Table of contents Plan overview / executive summary Description of e-Business idea Description of products / services Vision and Mission statements Competitive analysis
Industry, target market, competition Plans with short-term details:
Marketing, financial, operations, monitoring Major risks – strategies for coping Plan for the future for the principals
The e-Business Plan:Competitive Analysis
Industry Characteristics, size trends, growth, regulations, labor
availability, distribution issues, etc.
Target market Demographics, segment characteristics, trends, data
availability, etc.
Competition Players (their positions, their strengths / weaknesses),
barriers to entry, potential entrants, etc.
The e-Business Plan:Explains Operational Details
For marketing, financing, operations, management / monitoring Objectives Strategies Resources required Budgets Actions
The e-Business Plan:Summary
Identify your organizational objectives Identify ways e-Business can help achieve
the objectives Industry and competitive analysis Identify resources are required Plan the implementation Determine how you will monitor e-
Business results / performance