Chp13 E Blueprint

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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 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.

Transcript

  • 1. Chapter Thirteen Translating e-Business Strategy into Action: E-Blueprint Formulation
  • 2. Introduction
    • E-Business blueprints the missing link between strategy and execution
    • An e-Business blueprint is the whole fabric of applications, processes, and services that shape and sustain customer value
    e-Commerce Value Proposition What is the customer looking for? Strategy Formulation e-Business Application Foundation What applications are needed to facilitate value creation? e-Blueprint Planning
  • 3. Setting Stage for e-Blueprint Planning
    • Today’s e-business efforts
      • Vague ideas substitute for cohesive management and well-developed plan
      • Intuition, not reason, directs development of new plans
    • With rising tech spending, e-blueprint planning more important and difficult
      • Tech investments not linked to definable e-strategy
      • Difficult to make tech-related decisions
      • Analysis and implementation of tech projects meeting stated objectives rare
      • Confusion about tech due to high market activity
    • Strategic alignment between business models and decisions on tech spending seen necessary
  • 4. Focusing on e-Blueprints, Not Single Projects
    • Today, e-business projects being treated the same as any other initiative
      • Each e-effort undertaken as one project at a time
      • No forethought of achieving economies of scale and scope or shared resources
      • No shared strategic vision in place
      • Mergers and acquisitions compounding problems
    • Causing serious app infrastructure problems
    • E-business blueprint planning hurdles
      • Lack of political will
      • Departmental resistance giving precedence to individual projects over enterprise-wide need
      • Microsoft alternative to single-project mentality highly successful
  • 5. Focusing on e-Blueprints, Not Single Projects Work backwards Time Thinking Ahead Approach An e-Blueprint combines a clear understanding of where you need to be with what needs to be done. Goal Where do we need to be 3 years from now? Where should we be next year? You are here And next year? Time Incremental Approach An incremental approach to application development will not work in the e-Business world. Goal Why some companies stagnate... Why some companies grow... And next year? You are here
  • 6. Beginning the e-Blueprint Journey e-Business Design Customer Drivers Technology Drivers Organizational Drivers Business Drivers e-Business Aggregate Blueprint Individual Application Framework Projects Corporate Goals & Objectives Technology/Innovation Strategy Customer/Market Strategy
  • 7. Beginning the E-Blueprint Journey
    • Approaches for e-blueprint planning
      • Short-term
        • Patch together an e-blueprint plan incorporating the company’s existing apps
      • Long-term
        • Start over with an entirely new group of apps as the core piece of its e-blueprint plan
  • 8. To Patch or Not to Patch
    • Three challenges when deciding to patch or not to patch existing infrastructure
      • Integration of existing infrastructure
      • Building seamless infrastructure on a fragmented app base
        • Front-end experience for customers must be a seamless, well-integrated service delivery platform
      • Knowing when to walk away and start over
  • 9. Evaluating Your Company’s e-Business Blueprint Process
    • Red flags indicating e-blueprint process in trouble
      • Platform projects take too long
      • Many substandard projects in pipeline for years
      • All projects being implemented are long-term, multibillion dollar, big bang efforts
      • Almost all projects reinventing the wheel
      • Too much procrastination when making decisions
      • Project interdependence difficult to manage
      • Lack of communication and business side buy in
  • 10. Basics of e-Blueprint Planning e-Blueprint Creation Create a Prioritization Framework
    • How should you invest in framework integration?
    • What framework projects are high, medium and low priority?
    • What set of framework projects do we need to initiate?
    e-Blueprint Facilitation Make a Business Case for Action e-Blueprint Execution Tactical Implementation
    • What is our chosen path?
    • Are we following our plan?
    • How do we keep the plan relevant?
    • Who develops the framework business case?
    • How can frameworks be aligned to achieve business goals?
    • Can we make a compelling case to decision makers about the need for change?
    Key Objectives Action Plan Feedback Feedback
  • 11. E-Blueprint Creation: Defining the Blueprint in Your Company
    • Five steps of e-blueprint creation
      • Establish aim of overall e-business design
      • Establish scope of the effort
      • Classify and analyze the app frameworks
      • Prioritize what needs to be done
      • For each app framework, design the execution plan
  • 12. E-Blueprint Creation: Defining the Blueprint in Your Company
    • Step 1: Establish aim of overall e-business design
  • 13. E-Blueprint Creation: Defining the Blueprint in Your Company
    • Step 2: Establish the scope of the effort
      • Map your ebusiness design into 3 types of improvement
        • Process improvement
        • Strategic improvement
        • Business transformation
    Market share Efficiency targets Measuring Progress Entrepreneurial Highly linear Implementation Approach Excellent strategic decision making Distinctive process thinking Skill Development Gain unusual insight into the customer and market needs Build exceptional internal capabilities Focus of Change Business Transformation Strategic Improvement
  • 14. E-Blueprint Creation: Defining the Blueprint in Your Company
    • Step 3: Classify and analyze the app frameworks
  • 15. E-Blueprint Creation: Defining the Blueprint in Your Company
    • Example of App Framework Project: B2B portal
    • Credit
    • Availability
    • Price
    • Web-based order capture tools
    • Customer prioritization
    • Price management and invoicing
    • Returns and claims
    • Service & Warranty
    • Payment
    • Strategic Profitability analysis
    • Multi sourcing
    • Multi shipping
    • Distribution
    B2B Portal
  • 16. E-Blueprint Creation: Defining the Blueprint in Your Company
    • Step 4: Prioritize what needs to get done
    Screen 1 Screen 2 Screen 3 phase 1 phase 2 phase 3 phase 4 Small Wins Rapid Application Module Development and Deployment Prioritize Specific Projects within Application Framework Define Each Application Framework - Scope and Scale Define the Aggregate Blueprint - High-level Design
  • 17. E-Blueprint Creation: Defining the Blueprint in Your Company
    • Step 5: For each app framework, design execution
    Creativity combined with integrated solutions Demanding customers; intense competition Innovation Make architectural decisions that allow flexibility Continuous innovation; changing customer needs Flexible configurations Make better management decisions about resource allocation and project selection Scarce resources; wrong moves can destroy company High execution productivity Shorter time-to-market cycles Changing customer expectations; accelerating value migration Fast and Responsive Implications Driving Forces Required Capabilities
  • 18. E-Blueprint Creation: Defining the Blueprint in Your Company
    • Elements of an execution map
    E-Business Blueprint Execution Plan Development Blueprint Customer Blueprint Integration Blueprint People and Critical Skills Map Technology Map Project & Applications Map Process Reengineering Map Infostructure Map Legacy Integration Map Application Integration Map Customer Needs Profile Map Adoption Management Map Product Versioning Map Vision & Priorities Map Develop-ment Tactical Plan Integration Tactical Plan Customer Experience Tactical Plan0 Application Framework Map
  • 19. e-Blueprint Facilitation: Making a Business Case for Action Execution Target: Focused on Customer Needs and Change Legacy Infrastructure New Framework Investments Evergreen Blueprint Business Case Projects in Pipeline Customer Pain Competition
  • 20. e-Blueprint Facilitation: Making a Business Case for Action
    • Who develops a business case?
      • Today, technology influences business design
      • Blueprint sponsors
        • CEO, President, COO or GM
        • CIO
        • CFO
        • Operating VPs
        • Board
      • Dangerous to let consulting partners or IT functions to “bet-the-company” app infrastructure in isolation
        • Decisions should be participatory
        • LOB managers, marketing execs, and corporate leaders should join IT professionals in tech review and decision-making process
  • 21. e-Blueprint Facilitation: Making a Business Case for Action
    • Key elements of an e-Business case
    How? (will we get there) Why? (will we win) Where? (are we going) When? (will we get there)
    • Idea
    • Customer selection
    • Value proposition
    • Technology selection
    • Scope selection
    • Project Selection
    • Channel selection
    • Partner selection
    • Supplier selection
    • Differentiation
    • Metrics
  • 22. e-Blueprint Facilitation: Making a Business Case for Action
    • Changing a firm’s business strategy tantamount to committing money and HR in face of business risk and uncertainty
      • Preliminary assessment of scope can mitigate concerns
    • Elements of preliminary scope
      • Organizational
      • High-level app architecture
      • High-level project plan
      • Resource requirements
    • Detailed feasibility analysis next
      • Financial
      • Organization and cultural
      • Technical
      • Suppliers, partners, customers
  • 23. e-Blueprint Facilitation: Making a Business Case for Action
    • E-Business business case checklist
      • Setting business direction should be preceded by realistic look at the marketplace and at a company’s circumstances
      • After that, responsible mgrs must follow these guidelines
        • Develop a goal statement
        • Set measurable goals
        • Set objectives
        • Develop short- and long-term action plans
        • Gain approval
  • 24. The Serious Business of e-Blueprint Planning
    • Aligning strategy with e-business execution a serious undertaking
    • E-blueprint necessary
      • Builds creative work environment in which steady stream of high-potential ideas can emerge and be manifested through enterprise’s infrastructure and strategy
    • Top mgmt should play strong role in the blueprint-planning process
      • Blueprint decisions among most important company decisions
      • Cuts across several product lines or divisional boundaries
      • Frequently requires resolution of cross-functional conflict
  • 25. Alignment in Today’s Environment 75% of e-commerce projects are bound to fail because of a lack of good business planning and unreal expectations of what new technologies can do for their business . [Gartner Group] Primary Cause of Misalignment 40% of IT purchasing decisions are made by Line of Business Managers (e.g., heads of marketing). The CIO and IT staff are then responsible for implementing the technology to fulfill that department’s business goal.
  • 26. Communicate, Communicate, Communicate
    • Create an elevator pitch
    • Create a cross-functional e-blueprint team
    • Take baby steps
    • Clearly communicate plans and benefits of the new e-blueprint
    • Document success and publish results
  • 27. The Problem of Leadership
    • Lack of consistent sponsorship from top mgmt the single biggest impediment to e-business blueprint planning
    • Bad planning due to overdelegation
    • Some responsibilities cannot be delegated
      • Sitting on the blueprint committee
      • Approving strategic direction and corporate vision it supports
      • Setting project’s goals
      • Participating in deployment process
      • Personally reviewing performance against strategic goals
  • 28. Questions on Executive Commitment
    • Is senior-mgmt involved in e-business decision-making?
    • Is top mgmt selling value of integration to decision makers?
    • Has the company recognized that improving e-business investment mgmt is a long-term process and should be planned accordingly?
    • Has the company ensured that e-business investment decisions are strongly linked to strategic business objectives?
    • Has the company built a shared e-business vision through various mgmt levels?
  • 29. Why e-Business Initiatives Fail
    • Design app blueprint on your own, in your own dept
    • Don’t do homework or auditing of company problems
    • Don’t bother learning from other companies
    • If you assemble a task force, meet several times in private
    • Don’t seek outside help and if you do, hire a brand-name guru who knows nothing about technology or blueprint management
    • When mgrs have questions, get defensive, rail at these “cynics” and “negative thinkers” who don’t get it
  • 30. Why e-Business Initiatives Fail
    • Don’t worry about communicating
    • Blueprint doc is 3 binders thick, full of checklists and spreadsheets
    • Don’t bother with process or project mgmt
    • Don’t waste time taking baby steps to execute
    • Don’t factor in periodic feedback as an opportunity for course correction
    • Don’t factor in existing projects
  • 31. E-Business Strategies, Inc. www.ebstrategy.com [email_address] 678-339-1236 x201 Fax - 678-339-9793