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Mobilizing the Organization: Tactical Execution
Chapter FourteenChapter Fourteen
www.ebstrategy.com- 2 -© e-Business Strategies, Inc.
IntroductionIntroduction
Visionary companies consistently out-execute competition
– GE, Wal-Mart– Combine winning strategy, talent and execution to support
strategy, and integrated transition from old to new ways of doing things
This chapter’s focus: Execution– How, What and When
Fast turnaround of e-business projects will separate winners from also-rans
– Financial costs of delays or mismanagement huge– Lost opportunity costs of being late to market even higher– Kmart and example of bad e-business execution
www.ebstrategy.com- 3 -© e-Business Strategies, Inc.
Roadmap to Tactical ExecutionRoadmap to Tactical Execution
E-Business design and software projects must be closely intertwined
– e-Business requires well integrated processes that are built on software, not traditional foundation of people
– Do the tactical efforts support the business model?
– Do the tactical efforts reflect changes in thinking about the business model?
E-Business Roadmap
Vision & Strategy
Blueprint Planning
Tactical Execution
Adoption Management
www.ebstrategy.com- 4 -© e-Business Strategies, Inc.
E-Business Tactical ExecutionE-Business Tactical Execution
Technology and Application Capabilities
Organizational Capabilities and
Limitations
e-Business Blueprint
Tactical e-Project Management
Architecture and Implementation
Plan
e-Business Infostructure
Adoption Management
e-Business Development
Measurement for Evergreen
Strategy
www.ebstrategy.com- 5 -© e-Business Strategies, Inc.
Tactical e-Project ManagementTactical e-Project Management
•Transition to e-Business needs tightly coordinated approach
– Caveat: Traditional app execution characterized by number of groups working on various aspects of an issue but not talking
•e-Project mgmt to bring order to chaos•Different from traditional project mgmt because of new challenges
– Speed– Resources– Requirements– Release cycles– Technology
•Do the projects reflect changes in thinking about the business model?
www.ebstrategy.com- 6 -© e-Business Strategies, Inc.
Process OverviewProcess Overview
Define and Organize the
Project
Execution and Close Down
Plan the Project
Establish project team
Determine project objective
Assemble the project definition
document
Get project approval
Develop work breakdown structure
Develop project schedule
Gather detailed project
requirements
Analyze resources
Prepare cost analysis
Collect project status data
Complete project closing activities
Planning and Managing Projects
Conduct post project review
Maintain, Monitor and Control
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The Intangibles: Continuous Project The Intangibles: Continuous Project CommunicationCommunication
A project communication plan necessary for a project to function like a well-oiled machine
– to keep mgmt, customers, and team members informed of project’s status and milestones at risk of being missed
– Identifies all persons concerned with the project and develops follow-up activities to keep them involved
– Assigns communication responsibilities and process for keeping everyone informed
www.ebstrategy.com- 8 -© e-Business Strategies, Inc.
e-Development Processe-Development Process
Opportunity Generation
Solution Evaluation
Customer Requirements
ResourceMobilization
Scope/Feasibility
Requirements Prototyping
e-Process Redesign
ImplementationMaintenance/
Support
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Opportunity Generation: What Customer Opportunity Generation: What Customer Pain Are We Solving?Pain Are We Solving?
Projects must be built around opportunities for addressing customer needs
– Classify: Pain killer or vitamin?– Most significant opportunities also simple: transactions in
everyday life that could be simplified– Opportunities for relieving customer pain may be collected
passively, but firms should also generate opportunities actively
Many ways to identify opportunities– Annual mgmt brainstorming retreat– Let employees develop opportunities– Strategic document outlining opportunities: “slots”– Survey of customers by consulting firm
Few execs take customer’s perspective – Trying to reduce pain for themselves
www.ebstrategy.com- 10 -© e-Business Strategies, Inc.
Solution Evaluation: How Can We Alleviate Solution Evaluation: How Can We Alleviate the Customer Pain?the Customer Pain?
Element Questions
What •Which customer processes are involved?
•What is wrong?
•What is the opportunity in terms of customer problems, competitive pressures, internal inefficiencies, lack of new features in products, or unmanageable complexity in processes?
Where/When •Where do we observe the problem?
•Are there any service or infrastructure implications?
•Under what conditions do we observe the problem?
How big •How big is the problem/opportunity?
•What is the cost of these problems in terms of lost revenue, expenses, speed, or morale?
•How will we measure it?
•Will the solution require the customer to change process or culture?
www.ebstrategy.com- 11 -© e-Business Strategies, Inc.
Getting Detailed Requirements RightGetting Detailed Requirements Right
Successful e-business strategies fueled by deep understanding of the customer processes and pain points
– “Lack of attention at this step will cause problems downstream that result in project derailment.”
Failed strategies fueled by a lack of ability to see below the surface
– Technology changes quickly but underlying customer needs do not
Categories of customer requirements– Strategic, “forward thinking” that market has not asked for
yet– Customer-driven, “requested” requirements– Technology-driven– “Feature complete” requirements to add bells and whistles
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DetailedRequirementsSpecifications
Getting Detailed Requirements RightGetting Detailed Requirements Right
Front end Prototyping
To Avoid Surprises
Scope &Priorities
RequirementsPrototyping& Elicitation
CustomerPriorities
Market Trends
Purchase/InteractionOccasion
Competitor Benchmarking
Market Research
Customer Pain
Customer Anger
Buyer Behavior
Functional Needs
Systems Economics
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Setting ScopeSetting Scope
Determining scope and narrowing focus first, most important step in project
– Understanding scope essential to managing its development– Requires communication with customer to ensure correct
interpretation of the defined need and unambiguous wording of the responsive requirement
– Scope of many e-business projects fuzzy
Partition big problems into manageable chunks when scope too grandiose to overcome resistance
– Keeps team focused and interested– Achieve early victories to sustain momentum– Realize achievements and internalize at faster rate
Scope can be rigid or flexible
www.ebstrategy.com- 14 -© e-Business Strategies, Inc.
Garnering Resources: Mobilize, Mobilize, Garnering Resources: Mobilize, Mobilize, and Mobilizeand Mobilize
Resource mobilization
– Define project mgmt team, resources, and time line
Step 1: Organize project teams
Step 2: Resource planning and allocation
– Firms allocate resources for upfront activities, as strategy formulation
– But underestimate for downstream activities
InternalStaff &
Consultants
Strategy Formulation
Production Rollout, Maintain, Enhance and Change Effort
Infrastructure(Tools, Apps,
Software)
New Application
Development
Supplier/Partner
Integration
Well-budgeted bymost enterprises
Costs underbudgetedby 20% to 40%
Costs underbudgetedby 50% to 100%
BusinessStrategy
Blueprint Planning & Project
Management
Prototype Implementation
www.ebstrategy.com- 15 -© e-Business Strategies, Inc.
E-process RedesignE-process Redesign
• Identify the major processes (e.g., Order Fulfillment) that provide value. Take the customer viewpoint. • Identify key support processes (e.g., Content Management). • Map processes across functional boundaries.• Ask the “What-If” question (e.g., what if we changed the way we fulfilled the customer order?)
• Identify key points of contact with the customer for each process.• Identify customer pain associated with each key process.• Identify process variations that influence final output (customer expectations).• Ask “Are final outputs relevant? Is the customer looking for something different?”• Ask “What is preventing us from meeting or exceeding customer expectations?”
• Identify the major activities or building blocks of each process.• Identify all key inputs - information, data, or products - of each major activity. Ask “which of these are absolutely critical to the process?”• Identify all key dependencies of each activity. Ask “Is this dependency impacting the smooth flow of the process? What-if we removed/modified it?”• Diagram the entire process into a high-level map.
Identify Core Business Processes
Define Customers & Process Outcomes
Create Detailed
Process Map
www.ebstrategy.com- 16 -© e-Business Strategies, Inc.
Web Development: Prototype Validation and Web Development: Prototype Validation and ImplementationImplementation
• Detailed requirements prototyping
• Detailed architecture design
• Application development
• Quality assurance and testing
• Field testing
• Release management
www.ebstrategy.com- 17 -© e-Business Strategies, Inc.
Managing Outsourced Web Development Managing Outsourced Web Development ProjectsProjects
When choosing development partner, do so wisely
Make sure they align with you in each phase
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Application Service ProvidersApplication Service Providers
IT managers seeking development solutions to relieve stress of too few qualified personnel to meet too many development needs
Enter ASPs, ex. Corio, Breakaway, US Internetworking– Provide power of large app frameworks as ERP– Maintain apps themselves– Growth due to better delivery of apps via IP networks– Offer everything from office essentials to massive apps– Large servers host apps in data centers, accessed via VPN
Attractive for companies with rapidly changing IT needs that don’t require highly customized software solutions
– Startup companies– Large corporations because of time-to-market issues, lack of
development resources, and a desire to lower maintenance costs
www.ebstrategy.com- 19 -© e-Business Strategies, Inc.
Infostructure ManagementInfostructure Management
Production infostructure least understood areas of e-business
– How to provide always-on-service and performance?
– Hosted models require emphasis on infostructure mgmt
– Very much like urban planning
www.ebstrategy.com- 20 -© e-Business Strategies, Inc.
Internet Data CentersInternet Data Centers
Internet creates unpredictable load on network services
– Newly introduced software can be ten times as popular as predicted
– New data-driven apps can increase storage system use beyond all projections
Data centers need adequate capacity available for 24x7x365, while minimizing capital outlay
Enter collocation firms– Exodus, Jam Cracker, LoudCloud– Group a company’s apps together on dedicated
servers in state-of-the-art NOCs
www.ebstrategy.com- 21 -© e-Business Strategies, Inc.
Capacity PlanningCapacity Planning
Online customer impatient
Predicting demand levels for network services difficult
Complexity of today’s networks make it difficult to isolate the driving force of demand for a particular service
Continuous, ongoing capacity planning process necessary
– Assess current physical infrastructure’s capacity– Measure and monitor traffic regularly to verify business
model– Use business model for long-range scenario planning
In capacity planning, don’t think just Web transactions– Think about how rich content affects capacity
www.ebstrategy.com- 22 -© e-Business Strategies, Inc.
ScalabilityScalability
• Impacts both the # of simultaneous users that can be supported and the service-level performance that users experience
• Hardware scaling vs. Indirect techniques
• Lot of hardware capacity may not solve problems with rich multimedia content
• Caching and Replication necessary to solve these issues
www.ebstrategy.com- 23 -© e-Business Strategies, Inc.
AvailabilityAvailability
Availability is accessibility of e-business operation: 24 hours a day, 7 days a week, 365 days a year
Techniques for maximum uptime– Clustering and replication– Process and business practices– Monitoring service deployments
Modularity of infostructure critical to attaining continuous availability
www.ebstrategy.com- 24 -© e-Business Strategies, Inc.
Security and Risk ManagementSecurity and Risk Management
Prevention of security threats far easier and less costly than responding
– Yahoo!, CNN, Amazon attacked in early 2000
Execs must pay attention to their companies’ network security
Execs must understand what their firms’ development organizations and hosting vendors are doing to identify and solving potential security problems
Security and disaster recovery plans go hand in hand– Important to think through various disaster scenarios and
have a plan for addressing each one– September 11, 2001
www.ebstrategy.com- 25 -© e-Business Strategies, Inc.
Adoption ManagementAdoption ManagementThree behavioral responses to overcome when introducing changes: Denial, Anger or Acceptance
Successful adoption needs– Communication plan– Transition mgmt plan
• Samsonite had conversion problems when implementing its new financial, manufacturing, and distribution apps
– Key performance indicators
Large projects affect change in three stages– Stage 1: Jobs redefined, new procedures established, apps
fine tuned, and users learn benefits– Stage 2: New skills executed, business structure changes,
processes integrated, add on technologies implemented – State 3: New tools and processes become almost second
nature to users; synergy of people, processes and technology
www.ebstrategy.com- 26 -© e-Business Strategies, Inc.
Measurement for Learning and ImprovementMeasurement for Learning and Improvement
How does a company know it is doing well post implementation?
What are some key measures important to a new e-business process
What should my company measure?– Risk– Financial– Loyalty– Fulfillment– Customer satisfaction
www.ebstrategy.com- 27 -© e-Business Strategies, Inc.
Key Take-AwaysKey Take-Aways
Technology changes, but NOT the fundamentals of economics
and strategy the difficulty of execution the constraints of human
behavior
Automate Transactions
Process Change
Top Line Growth
Bottom Line
Sustainability
E-Business Evolution in Corporations
E-Business E-Business Strategies, Inc.Strategies, Inc.
www.ebstrategy.comwww.ebstrategy.com
[email protected]@ebstrategy.com
678-339-1236 x201678-339-1236 x201
Fax - 678-339-9793Fax - 678-339-9793