EC Strategy and EC Strategy and ImplementationImplementationChapter 9Chapter 9

Planning Planning FundamentalsFundamentals

Information technology has created a Information technology has created a seismic shift in the way companies do seismic shift in the way companies do business.business.– Just knowing the importance and structure of Just knowing the importance and structure of

e-business is not enough e-business is not enough – You must create and implement an You must create and implement an action planaction plan

that allows you to make the transition from an that allows you to make the transition from an old business design to a new e-business designold business design to a new e-business design

E-business is the latest organizational E-business is the latest organizational change, E-business is fourth major changechange, E-business is fourth major change

Components of Components of Organizational Organizational PlanningPlanning

Strategic Planning for Strategic Planning for ECEC Determination of a suitable EC strategy begins with Determination of a suitable EC strategy begins with

identification of the opportunities and risks.identification of the opportunities and risks. Available OptionsAvailable Options

– Not to go for ECNot to go for EC– Do only passive advertisementDo only passive advertisement– Open additional online storeOpen additional online store– Establish online divisionEstablish online division– Dissolve regular business and go for cyber spaceDissolve regular business and go for cyber space

Choice dependencies :-Choice dependencies :-– Nature of businessNature of business– Internal and external available resourcesInternal and external available resources– Changing customer and environmentChanging customer and environment

One approach to use generic methodology………One approach to use generic methodology………

Strategic Planning for Strategic Planning for ECEC Industry and competitive analysis Industry and competitive analysis

– SWOTSWOT Strategy formulationStrategy formulation

– Strategy formulation is the development of long-Strategy formulation is the development of long-range and strategic plans for the effective range and strategic plans for the effective management of environmental opportunities and management of environmental opportunities and threats, in the light of cooperative strength and threats, in the light of cooperative strength and weaknesses. weaknesses.

ImplementationImplementation– Implementation planImplementation plan– Pilot projectPilot project

Performance reassessment Performance reassessment – Feedback and corrective actionsFeedback and corrective actions

Strategy Formulation Strategy Formulation Three basic reasons for business Three basic reasons for business

establish website.establish website.– Marketing or passive advertisementsMarketing or passive advertisements– Customer support /web based call Customer support /web based call

centerscenters– Sales (existing traditional products Sales (existing traditional products

and entire new range of products)and entire new range of products)

Strategy FormulationStrategy Formulation Critical success factors of EC initiativesCritical success factors of EC initiatives

– Product or service offeredProduct or service offered– Management supportManagement support– Project team Project team – Technical infrastructure availableTechnical infrastructure available– Customer responsivenessCustomer responsiveness– User interfaceUser interface– Security and controlSecurity and control– Competition and market situationCompetition and market situation– Cost of the projectCost of the project– Trust Trust

Strategy FormulationStrategy Formulation Value analysis approachValue analysis approach

– When a company initiate a EC venture it forms When a company initiate a EC venture it forms competitive edgecompetitive edge

– Creating value for customer and partnersCreating value for customer and partners Return on investment and risk analysisReturn on investment and risk analysis

– calculate the benefits calculate the benefits Its include both quantifiable or non quantifiable Its include both quantifiable or non quantifiable

benefits benefits – Uncertainty and risks needs to be examinedUncertainty and risks needs to be examined

EC scenarios (Table 9.2)EC scenarios (Table 9.2)

Strategy FormulationStrategy Formulation Competitive strategies: fighting against all for Competitive strategies: fighting against all for

winwin– Head to head frontal assaultHead to head frontal assault

Attack to Competitors with superior resourcesAttack to Competitors with superior resources costlycostly

– Flanking maneuverFlanking maneuver Defensive strategy Defensive strategy Attack a part where the competitor is weakAttack a part where the competitor is weak Long term profitability Long term profitability

– Raise structural barriers Raise structural barriers Low price, high service etc.Low price, high service etc.

Cooperative strategies :working togetherCooperative strategies :working together– joint venturingjoint venturing– Value chain partnershipValue chain partnership

EC Strategy in ActionEC Strategy in Action Steps to successful EC programsSteps to successful EC programs

– Conduct education and trainingConduct education and training– Review current distribution modelsReview current distribution models– Understand customer expectation from the webUnderstand customer expectation from the web– Revaluate nature of product and serviceRevaluate nature of product and service– Give a new role to HR dept.Give a new role to HR dept.– Extend your current systemExtend your current system– Track new competitionTrack new competition– Develop new marketing planDevelop new marketing plan– Participate in creation of marketplaceParticipate in creation of marketplace– Encourage EC management style Encourage EC management style

Competitive Competitive Intelligence on the Intelligence on the InternetInternet Internet as a source of information for Internet as a source of information for

strategic decisionsstrategic decisions Review competitors websitesReview competitors websites Analyze related newsgroupAnalyze related newsgroup Examine publicly available financial Examine publicly available financial

documentsdocuments Conduct surveyConduct survey Use information delivery servicesUse information delivery services ask for opinion in chat roomsask for opinion in chat rooms

Implementation plan Implementation plan and execution and execution Implementation plan and execution normally Implementation plan and execution normally

starts with establishing web team:-starts with establishing web team:- Pilot projectsPilot projects EC leadership (a small company can be a EC leadership (a small company can be a

leader)leader) Uncovering new opportunities and applicationsUncovering new opportunities and applications Assigning functional tasks to webmastersAssigning functional tasks to webmasters Evaluating outsourcing and hosting choicesEvaluating outsourcing and hosting choices Content managementContent management Security and controlSecurity and control

Project and Strategy Project and Strategy AssessmentAssessment Many companies plan really Many companies plan really

well…..well…..– Yet few translate strategy into actionYet few translate strategy into action

Need for assessment during and Need for assessment during and afterafter

Finalization Finalization