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Chapter Two Spotting E-Business Trends
What is a Trend? <ul><li>A trend is a compass for navigating a sea of chaos </li></ul><ul><li>Points the way to a new </li...
E-Business Trends <ul><li>Trends: spotting, analyzing, and exploiting themes in technology, markets, etc. </li></ul><ul><u...
E-Business Trends <ul><li>Customer trends </li></ul><ul><ul><li>Faster Service </li></ul></ul><ul><ul><li>Self service </l...
E-Business Trends (cont.) <ul><li>Organizational trends </li></ul><ul><ul><li>Outsourcing -- retain the core, outsource th...
<ul><li>General Technology Trends </li></ul><ul><ul><li>Wireless Web Applications </li></ul></ul><ul><ul><li>Handheld Comp...
Consumer Trends: Faster Service <ul><li>People want to maximize their limited available time </li></ul><ul><ul><li>Value f...
Consumer Trends: 100 Years of Convenience 1893 – Sears and Roebuck offers first catalog 1993 – Sears folds catalog operati...
Self-Service: Empowered Customers <ul><li>Self-Service is Maturing </li></ul><ul><ul><li>24/7 ordering without sales perso...
Integrated Solutions, Not Piecemeal Products <ul><li>One-stop life-needs providers </li></ul><ul><ul><li>Wal-Mart </li></u...
Integrated Solutions, Not Piecemeal Products Past --  Product-based competition Product functionality Price Service  <ul><...
e-Service Trends: Integrated Sales and Service <ul><li>Cross-selling and up-selling while providing service. </li></ul><ul...
Seamless Support: Consistent and Reliable Customer Service <ul><li>An interesting experience with AT&T </li></ul><ul><ul><...
Flexible Fulfillment and Convenient Service Delivery <ul><li>Consumers expect prompt and accurate delivery of the goods th...
Online Fulfillment <ul><li>Manufacturer sends less-than truckloads (LTL) to warehouse </li></ul><ul><li>Cases stored in pa...
Increase Process Visibility <ul><li>Let the customer have access to your tracking system </li></ul><ul><li>Provide visibil...
Organizational Trends: Outsourcing <ul><li>Focus on core competencies </li></ul><ul><li>Cost reduction on a global scale –...
Contract Manufacturing: Become Brand Intensive <ul><li>Separation of marketing and manufacturing, allowing companies to sp...
Empower Employees <ul><li>Give employees greater autonomy, decision making capability, advancement based on performance, e...
Enterprise Technology Trends: Integrated Enterprise Applications <ul><li>Build vs Buy </li></ul><ul><li>ERP software: SAP,...
Multi-channel Integration: Look at the Big Picture <ul><li>Consistent service regardless of which of the company’s channel...
Middleware: Support the Integration Mandate <ul><li>Integrate old and new applications so that all data is available. </li...
General Technology Trends: Wireless Applications <ul><li>Shift away from a PC-centric dependence towards a next-generation...
Handheld Computing and Information Appliances
Infrastructure Convergence: Voice, Data and Video <ul><li>Voice, data, video on same network </li></ul><ul><ul><li>Goal: U...
Infrastructure Convergence: Voice, Data and Video Device Independence Travel Hotspots Office Vacation Hotspots Home Web In...
Trend Common Attributes <ul><li>Effectiveness </li></ul><ul><li>Efficiency </li></ul><ul><li>Integration </li></ul><ul><li...
E-Business Strategies, Inc. www.ebstrategy.com [email_address] 678-339-1236 x201 Fax - 678-339-9793
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Chp02 Trends

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  • The E-Business material shall at all times remain the property of E-Business Strategies, Inc. No license under any trade secrets, copyrights, or other rights is granted by this Agreement or any disclosure of Confidential Information hereunder. Any such permitted copies will be considered Confidential Information. Confidential Information of E-Business Strategies, Inc. may not be copied or reproduced by the Recipient without E-Business Strategies, Inc. prior written consent. The E-Business material may not be re-sold. It is intended to be used solely for the purpose of accompaniment of the E-Business 2.0 Roadmap for Success book in an instructional manner.
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  • Transcript of "Chp02 Trends"

    1. 1. Chapter Two Spotting E-Business Trends
    2. 2. What is a Trend? <ul><li>A trend is a compass for navigating a sea of chaos </li></ul><ul><li>Points the way to a new </li></ul><ul><ul><li>Themes, like “aging demographics” or “decreasing attention spans” </li></ul></ul><ul><ul><li>Cost curves - like Moore’s Law - decreasing hardware and computing costs </li></ul></ul><ul><ul><li>Innovation - mobile devices </li></ul></ul><ul><li>Trends are essential filters for managers so that they can separate signal from noise </li></ul>“ Look Before, or you’ll find yourself behind.” - Benjamin Franklin
    3. 3. E-Business Trends <ul><li>Trends: spotting, analyzing, and exploiting themes in technology, markets, etc. </li></ul><ul><ul><li>Ways to think further into the future </li></ul></ul><ul><ul><li>Identify ideas that will impact and disrupt business </li></ul></ul><ul><li>Strategy: how to exploit e-business trends to create profits </li></ul><ul><ul><li>Screen opportunities, identify value </li></ul></ul><ul><ul><li>Translate trends into opportunities </li></ul></ul><ul><ul><li>Translate opportunities into strategy </li></ul></ul>Trend-spotting drives strategy
    4. 4. E-Business Trends <ul><li>Customer trends </li></ul><ul><ul><li>Faster Service </li></ul></ul><ul><ul><li>Self service </li></ul></ul><ul><ul><li>More Product Choices </li></ul></ul><ul><ul><li>Integrated solutions, not piecemeal products </li></ul></ul><ul><li>E-service - service and process trends </li></ul><ul><ul><li>Convergence of sales and service </li></ul></ul><ul><ul><li>Seamless Support </li></ul></ul><ul><ul><li>Flexible fulfillment convenient delivery </li></ul></ul><ul><ul><li>Increased Process Visibility </li></ul></ul>“ The rearview mirror is always clearer than the windshield.” - Warren Buffet (CEO Berkshire Hathaway)
    5. 5. E-Business Trends (cont.) <ul><li>Organizational trends </li></ul><ul><ul><li>Outsourcing -- retain the core, outsource the rest </li></ul></ul><ul><ul><li>Contract manufacturing </li></ul></ul><ul><ul><li>Virtual Distribution, Private hubs and Public exchanges </li></ul></ul><ul><li>Employee Trends </li></ul><ul><ul><li>Hiring the Best and Brightest </li></ul></ul><ul><ul><li>Keeping talented employees </li></ul></ul><ul><li>Enterprise technology trends </li></ul><ul><ul><li>Integrated enterprise apps </li></ul></ul><ul><ul><li>Multi-Channel Integration -- user view integration </li></ul></ul><ul><ul><li>Middleware -- back-end integration </li></ul></ul>
    6. 6. <ul><li>General Technology Trends </li></ul><ul><ul><li>Wireless Web Applications </li></ul></ul><ul><ul><li>Handheld Computing and Information Appliances </li></ul></ul><ul><ul><li>Infrastructure convergence </li></ul></ul><ul><ul><li>Application Service Providers </li></ul></ul><ul><ul><li>Web Services </li></ul></ul><ul><ul><li>E-learning tools and methods </li></ul></ul>E-Business Trends (cont.)
    7. 7. Consumer Trends: Faster Service <ul><li>People want to maximize their limited available time </li></ul><ul><ul><li>Value for the time </li></ul></ul><ul><ul><li>Getting things done right everytime </li></ul></ul><ul><ul><li>Right levels of service </li></ul></ul><ul><ul><li>Entertaining and engaging experiences </li></ul></ul><ul><li>Often, the answer is to integrate previously separate processes in fulfilling orders </li></ul>
    8. 8. Consumer Trends: 100 Years of Convenience 1893 – Sears and Roebuck offers first catalog 1993 – Sears folds catalog operation 1997 – online retailing takes off 2000 – Amazon.com sends out print catalogs
    9. 9. Self-Service: Empowered Customers <ul><li>Self-Service is Maturing </li></ul><ul><ul><li>24/7 ordering without sales personnel </li></ul></ul><ul><ul><li>Disintermediation </li></ul></ul>source: www.s1.com Self-Service complementing Full-service: Example from the Insurance Industry
    10. 10. Integrated Solutions, Not Piecemeal Products <ul><li>One-stop life-needs providers </li></ul><ul><ul><li>Wal-Mart </li></ul></ul><ul><li>One-stop lifestyle providers </li></ul><ul><ul><li>The Gap </li></ul></ul><ul><li>One-stop life-path providers </li></ul><ul><ul><li>Toys-R-Us </li></ul></ul>Long term drivers and demand for integrated solutions are clear
    11. 11. Integrated Solutions, Not Piecemeal Products Past -- Product-based competition Product functionality Price Service <ul><li>Comprehensive range of products and services </li></ul><ul><li>Solution-oriented </li></ul><ul><li>Integrated & Personalized </li></ul><ul><li>Lifetime value approach </li></ul><ul><li>What is the total cost of ownership </li></ul><ul><li>What is the ROI? </li></ul><ul><li>Customer self-service </li></ul><ul><li>Configurations geared to needs </li></ul><ul><li>Simplified decision-making </li></ul>Product and service Value Customer empower- ment Today -- Solution-based competition
    12. 12. e-Service Trends: Integrated Sales and Service <ul><li>Cross-selling and up-selling while providing service. </li></ul><ul><li>Home Depot is in “perpetual service mode.” </li></ul>Users expect more from a web site Customers demand customized and consistent experience across channels and products
    13. 13. Seamless Support: Consistent and Reliable Customer Service <ul><li>An interesting experience with AT&T </li></ul><ul><ul><li>Getting a bill for $0.00 </li></ul></ul><ul><ul><li>Receiving collection notices for $0.00 </li></ul></ul><ul><li>Moving from transactional only sites to relationship sites </li></ul><ul><ul><li>Must integrate marketing, selling and customer service into all aspects of the business and customer experience </li></ul></ul>
    14. 14. Flexible Fulfillment and Convenient Service Delivery <ul><li>Consumers expect prompt and accurate delivery of the goods they have ordered. </li></ul><ul><li>Expectation -- “We’ll put up a website and ship stuff out. It’ll be great!” </li></ul><ul><li>Result – Fulfillment is hard. Lots of .com fatalities after Xmas 1999 </li></ul><ul><li>Our understanding -- Catalog and Online fulfillment is hard: </li></ul><ul><ul><li>Average order size of 1.7 items </li></ul></ul><ul><ul><li>Picking individual items </li></ul></ul><ul><ul><li>No bulk shipments, individually packed </li></ul></ul><ul><li>It’s the supply chain, Stupid! </li></ul>
    15. 15. Online Fulfillment <ul><li>Manufacturer sends less-than truckloads (LTL) to warehouse </li></ul><ul><li>Cases stored in pallet racking </li></ul><ul><li>Cases moved to pick area </li></ul><ul><li>Workers pick items out of case, put in box, send to customer via FedEx, USPS, UPS </li></ul>
    16. 16. Increase Process Visibility <ul><li>Let the customer have access to your tracking system </li></ul><ul><li>Provide visibility into the supply chain </li></ul>Information Flows Goods Flow Manufacturers Wholesale Distributors Suppliers Customers Retailers
    17. 17. Organizational Trends: Outsourcing <ul><li>Focus on core competencies </li></ul><ul><li>Cost reduction on a global scale – IT enabled outsourcing models </li></ul><ul><li>Global service outsourcing trends not local outsourcing anymore </li></ul>Virtual enterprise designs– Requirement Boundary Spanning Coordination
    18. 18. Contract Manufacturing: Become Brand Intensive <ul><li>Separation of marketing and manufacturing, allowing companies to specialize in one or the other </li></ul><ul><li>Sara Lee example: “Move from a capital/asset (or manufacturing) intensive company to a knowledge (and marketing) intensive firm” </li></ul>
    19. 19. Empower Employees <ul><li>Give employees greater autonomy, decision making capability, advancement based on performance, e.g. Nordstrom </li></ul><ul><li>Employee retention </li></ul><ul><li>Don’t give employees technology, give them solutions </li></ul>
    20. 20. Enterprise Technology Trends: Integrated Enterprise Applications <ul><li>Build vs Buy </li></ul><ul><li>ERP software: SAP, PeopleSoft, Baan </li></ul>Best-of-Breed Approach mySAP.com <ul><ul><li>Individual networked applications </li></ul></ul><ul><ul><li>Individual interfaces </li></ul></ul><ul><ul><li>Overhead of maintenance </li></ul></ul><ul><ul><li>Data replication </li></ul></ul><ul><ul><li>High l ifecycle costs </li></ul></ul><ul><ul><li>Seamless integration </li></ul></ul><ul><ul><li>Open integration architecture </li></ul></ul><ul><ul><li>Highly flexible for new business requirements (SCM, eProcurement, BI, CRM) </li></ul></ul>
    21. 21. Multi-channel Integration: Look at the Big Picture <ul><li>Consistent service regardless of which of the company’s channels the consumer is using. </li></ul><ul><li>Example: Banks with branches, ATMs, call center, etc. </li></ul>Call center Branch Web ATM, In-store
    22. 22. Middleware: Support the Integration Mandate <ul><li>Integrate old and new applications so that all data is available. </li></ul><ul><li>Middleware </li></ul><ul><li>Enterprise Application Integration (EAI) </li></ul><ul><li>What’s Next – Web Services </li></ul><ul><ul><li>Break large scale apps into smaller chunks </li></ul></ul><ul><ul><li>Reassemble those components into services </li></ul></ul><ul><ul><li>Aggregate internal and external information services </li></ul></ul>
    23. 23. General Technology Trends: Wireless Applications <ul><li>Shift away from a PC-centric dependence towards a next-generation multi-device accessibility </li></ul><ul><li>Internet will be embedded in an endless variety of applications </li></ul><ul><li>Embedded Internet appliances will appear in the familiar form of washing machine, television, and remote control </li></ul><ul><li>Most successful devices will be easy-to-use, task-oriented devices </li></ul><ul><ul><li>Leverage benefits of Internet access to enhance their core functionalities </li></ul></ul>
    24. 24. Handheld Computing and Information Appliances
    25. 25. Infrastructure Convergence: Voice, Data and Video <ul><li>Voice, data, video on same network </li></ul><ul><ul><li>Goal: Unification of voice and data to support customer contact anywhere, anytime, via any channel. </li></ul></ul><ul><li>Improved speed and quality </li></ul><ul><li>New customer contact points (eg Web TV) </li></ul><ul><ul><li>Interesting research strategy via WebTV </li></ul></ul>
    26. 26. Infrastructure Convergence: Voice, Data and Video Device Independence Travel Hotspots Office Vacation Hotspots Home Web Intranet Communication E-Learning Calendar Email Voice <ul><li>Mobile IP </li></ul><ul><li>Content Translation </li></ul><ul><li>Quality of Service </li></ul><ul><li>VPN </li></ul><ul><li>Content Networks </li></ul>
    27. 27. Trend Common Attributes <ul><li>Effectiveness </li></ul><ul><li>Efficiency </li></ul><ul><li>Integration </li></ul><ul><li>Ability to handle change </li></ul>The core aspect in trend-watching is balancing exuberance vs. uncertainty
    28. 28. E-Business Strategies, Inc. www.ebstrategy.com [email_address] 678-339-1236 x201 Fax - 678-339-9793
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