<ul><ul><li>Business strategies and the Internet – different debates and viewpoints  </li></ul></ul><ul><ul><li>Formulatin...
Business strategies and the Internet <ul><li>The debates and viewpoints </li></ul><ul><ul><li>Michael Porter - operational...
Formulating strategies - contribution by different scholars <ul><li>Boisot’s approach: </li></ul><ul><ul><li>Use data to t...
<ul><li>Porter recommended: </li></ul><ul><ul><li>Create unique activities </li></ul></ul><ul><ul><li>Make choices between...
Hamel’s Business Concept  Innovation <ul><li>Core strategy - the way the firm uses to compete </li></ul><ul><li>Strategic ...
 
Building bridges between business components <ul><li>Through BCI, a company achieves: </li></ul><ul><ul><li>improved custo...
Some other views <ul><li>Dyer et al </li></ul><ul><ul><li>the co-existence of competition and collaboration (sometimes ref...
CGEY report - a study of financial institutions <ul><li>Businesses need to take risks to create new products, and market a...
Baker  Hoque <ul><li>In the international arena one of three approaches can be used: </li></ul><ul><ul><li>Predict and pre...
Strategy development for knowledge management <ul><li>Different approaches: </li></ul><ul><ul><li>Democratisation vs. cent...
Steps of strategy formulation
Tools for analysing strategic potential <ul><li>SWOT analysis </li></ul><ul><li>Value chain </li></ul><ul><li>Critical suc...
SWOT analysis <ul><li>The internal component - attempts to assess a firm’s competencies, readiness and strength to face th...
Value chain <ul><li>Value-chain analysis assesses  </li></ul><ul><ul><li>how e-commerce can influence the value added at e...
Critical Success Factors <ul><li>CSFs are the critical aspects of business processes, technology and management skill. The...
Examples of typical CSFs <ul><li>The commitment of the top management levels </li></ul><ul><li>The relationship with custo...
Return On Investment <ul><li>ROI is the cost benefit ratio which can be measured by: </li></ul><ul><ul><li>using the balan...
Preparing for E-Commerce <ul><li>The simple rules model </li></ul><ul><ul><li>How to rules </li></ul></ul><ul><ul><li>Boun...
Need for policies <ul><li>A firm should have policies on how to deal with: </li></ul><ul><ul><li>Technology infrastructure...
Implementation of E-Commerce <ul><li>An inter-enterprise e-commerce architecture comprises  </li></ul><ul><ul><li>backend ...
 
 
Infrastructure building <ul><li>An effective infrastructure includes </li></ul><ul><ul><li>An all-encompassing service for...
Developing E-Commerce initiatives <ul><li>In-house development requires time and expertise but produces tailor-made system...
Approaches to systems development <ul><li>Traditional approach  </li></ul><ul><ul><li>hard and formal  </li></ul></ul><ul>...
Stepwise refinement <ul><li>Iterative design and implementation advocated by the soft systems methodology </li></ul><ul><l...
Managing change <ul><li>Two approaches  </li></ul><ul><ul><li>E (for economic value) which uses hard measures  </li></ul><...
 
Questions <ul><li>What are the debates surrounding strategies and strategy formulation? </li></ul><ul><li>How do they rela...
Case studies <ul><li>Edmunds.com </li></ul><ul><li>Charles Schwab </li></ul><ul><li>Lloyds TSB </li></ul><ul><li>Autodesk ...
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Chapter 10 (60KB)

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Chapter 10 (60KB)

  1. 1. <ul><ul><li>Business strategies and the Internet – different debates and viewpoints </li></ul></ul><ul><ul><li>Formulating strategies – contribution by different scholars </li></ul></ul><ul><ul><li>The tools for analysing the strategic potential of EC </li></ul></ul><ul><ul><li>Preparing for EC </li></ul></ul><ul><ul><li>Implementing EC – the steps to follow </li></ul></ul><ul><ul><li>Managing change </li></ul></ul>Strategic Implementation of E-Commerce
  2. 2. Business strategies and the Internet <ul><li>The debates and viewpoints </li></ul><ul><ul><li>Michael Porter - operational effectiveness and strategic planning </li></ul></ul><ul><ul><li>Mintzberg -plan, ploy, pattern, position and perspective </li></ul></ul><ul><ul><li>Gary Hamel - business concept innovation </li></ul></ul><ul><ul><li>Szulanski et al - strategy making as an art </li></ul></ul><ul><ul><li>Eisenhardt et al - strategy as simple rules </li></ul></ul>
  3. 3. Formulating strategies - contribution by different scholars <ul><li>Boisot’s approach: </li></ul><ul><ul><li>Use data to turn strategies into plans </li></ul></ul><ul><ul><li>Allow those at operational level to take action </li></ul></ul><ul><ul><li>Tackle challenge at local level </li></ul></ul><ul><ul><li>Use collective initiative to create a mission to reflect long-term strategy. </li></ul></ul>
  4. 4. <ul><li>Porter recommended: </li></ul><ul><ul><li>Create unique activities </li></ul></ul><ul><ul><li>Make choices between what to do and what not to </li></ul></ul><ul><ul><li>Create activities that interlock (fit) </li></ul></ul><ul><ul><li>Reconnect with strategy by finding distinct and profitable products, and </li></ul></ul>
  5. 5. Hamel’s Business Concept Innovation <ul><li>Core strategy - the way the firm uses to compete </li></ul><ul><li>Strategic resources - how it utilises its resources </li></ul><ul><li>Customer interface - how it interacts with customers </li></ul><ul><li>Value network - its coalition with partners and competitors. </li></ul>
  6. 7. Building bridges between business components <ul><li>Through BCI, a company achieves: </li></ul><ul><ul><li>improved customer benefit </li></ul></ul><ul><ul><li>a configuration that can support its mission </li></ul></ul><ul><ul><li>a clear boundary between what can be done internally and what should be outsourced. </li></ul></ul>
  7. 8. Some other views <ul><li>Dyer et al </li></ul><ul><ul><li>the co-existence of competition and collaboration (sometimes referred to as co-opetition) </li></ul></ul><ul><li>Ghosh </li></ul><ul><ul><li>pirate an industry’s value-chain and become a powerful new force </li></ul></ul><ul><ul><li>becoming a customer magnet through a process of taking small steps </li></ul></ul>
  8. 9. CGEY report - a study of financial institutions <ul><li>Businesses need to take risks to create new products, and market and sell them </li></ul><ul><li>They must provide an infrastructure by becoming one of the following: </li></ul><ul><ul><li>commodity provider </li></ul></ul><ul><ul><li>infrastructure provider </li></ul></ul><ul><ul><li>market maker </li></ul></ul><ul><ul><li>superior performer </li></ul></ul><ul><ul><li>innovator </li></ul></ul><ul><ul><li>or a relationship manager. </li></ul></ul>
  9. 10. Baker Hoque <ul><li>In the international arena one of three approaches can be used: </li></ul><ul><ul><li>Predict and prepare - the cautious route </li></ul></ul><ul><ul><li>Use power to limit damage </li></ul></ul><ul><ul><li>Build internal capacity by broadening scope </li></ul></ul><ul><li>To build an e-enterprise </li></ul><ul><ul><li>create a vision by bringing the firm’s physical- and virtual- strengths together, </li></ul></ul><ul><ul><li>then build business and technology architectures based on that vision </li></ul></ul><ul><ul><li>review, refine and recycle continually. </li></ul></ul>
  10. 11. Strategy development for knowledge management <ul><li>Different approaches: </li></ul><ul><ul><li>Democratisation vs. centralisation of information </li></ul></ul><ul><ul><li>Technology-based vs. human-based knowledge management. </li></ul></ul>
  11. 12. Steps of strategy formulation
  12. 13. Tools for analysing strategic potential <ul><li>SWOT analysis </li></ul><ul><li>Value chain </li></ul><ul><li>Critical success factors </li></ul><ul><li>Return of investment. </li></ul>
  13. 14. SWOT analysis <ul><li>The internal component - attempts to assess a firm’s competencies, readiness and strength to face the new market, legislative issues and customer needs. </li></ul><ul><li>The external element - assesses the position of the competitors, market trends and scope for extension, risk of substitute products and the possibility of new relationships with customers. </li></ul>
  14. 15. Value chain <ul><li>Value-chain analysis assesses </li></ul><ul><ul><li>how e-commerce can influence the value added at each stage of the chain and </li></ul></ul><ul><ul><li>how the company can improve it by taking over some of the tasks </li></ul></ul><ul><li>by asking a number of questions. </li></ul>
  15. 16. Critical Success Factors <ul><li>CSFs are the critical aspects of business processes, technology and management skill. They can operate at many levels: </li></ul><ul><ul><li>industry-wide </li></ul></ul><ul><ul><li>organisation-wide </li></ul></ul><ul><ul><li>within a business unit and </li></ul></ul><ul><ul><li>at management level. </li></ul></ul>
  16. 17. Examples of typical CSFs <ul><li>The commitment of the top management levels </li></ul><ul><li>The relationship with customers </li></ul><ul><li>The quality of the website </li></ul><ul><li>The competition in the market </li></ul><ul><li>The integration of corporate backend information systems with e-commerce applications </li></ul><ul><li>The communications infrastructure </li></ul><ul><li>The security controls </li></ul>
  17. 18. Return On Investment <ul><li>ROI is the cost benefit ratio which can be measured by: </li></ul><ul><ul><li>using the balanced scorecard method to ascertain growth in revenue </li></ul></ul><ul><ul><li>customer retention and acquisition rate </li></ul></ul><ul><ul><li>the quality of internal activities </li></ul></ul><ul><ul><li>cultural aspects such as the growth in learning of employees. </li></ul></ul>
  18. 19. Preparing for E-Commerce <ul><li>The simple rules model </li></ul><ul><ul><li>How to rules </li></ul></ul><ul><ul><li>Boundary rules </li></ul></ul><ul><ul><li>Priority rules </li></ul></ul><ul><ul><li>Timing rules </li></ul></ul><ul><ul><li>Exit rules </li></ul></ul>
  19. 20. Need for policies <ul><li>A firm should have policies on how to deal with: </li></ul><ul><ul><li>Technology infrastructure </li></ul></ul><ul><ul><li>Security and privacy </li></ul></ul><ul><ul><li>Unforeseen problems </li></ul></ul><ul><ul><li>Human resources problems </li></ul></ul><ul><ul><li>The assessment of its effectiveness. </li></ul></ul>
  20. 21. Implementation of E-Commerce <ul><li>An inter-enterprise e-commerce architecture comprises </li></ul><ul><ul><li>backend IT and business processes </li></ul></ul><ul><ul><li>customer-facing systems and </li></ul></ul><ul><ul><li>the value-chain relating to these. </li></ul></ul><ul><li>It needs technology and people to complete the picture </li></ul><ul><li>it responds to the ecosystem of other businesses. </li></ul>
  21. 24. Infrastructure building <ul><li>An effective infrastructure includes </li></ul><ul><ul><li>An all-encompassing service for customers </li></ul></ul><ul><ul><li>An integrated value-chain </li></ul></ul><ul><ul><li>Integrated back-end information systems and business processes </li></ul></ul><ul><ul><li>An infrastructure to support widespread communication </li></ul></ul><ul><ul><li>An effective human support system for employees. </li></ul></ul>
  22. 25. Developing E-Commerce initiatives <ul><li>In-house development requires time and expertise but produces tailor-made systems </li></ul><ul><li>Outsourcing has many advantages but can cause conflicts of control </li></ul><ul><li>Component-based development using object-oriented software tools can be used to build standardised systems without the need for exceptional technical skills. </li></ul>
  23. 26. Approaches to systems development <ul><li>Traditional approach </li></ul><ul><ul><li>hard and formal </li></ul></ul><ul><ul><li>did not allow much user involvement or ‘fuzzy’ specifications. </li></ul></ul><ul><li>Contemporary approach </li></ul><ul><ul><li>‘soft’ systems methodologies </li></ul></ul>
  24. 27. Stepwise refinement <ul><li>Iterative design and implementation advocated by the soft systems methodology </li></ul><ul><li>Initially, only a limited number of applications </li></ul><ul><li>Improvements and additions made in stages based on user feedback </li></ul>
  25. 28. Managing change <ul><li>Two approaches </li></ul><ul><ul><li>E (for economic value) which uses hard measures </li></ul></ul><ul><ul><li>O (for organisational capability) based on developing human capability to accept change. </li></ul></ul><ul><li>The sequencing of the two approaches is recommended. </li></ul>
  26. 30. Questions <ul><li>What are the debates surrounding strategies and strategy formulation? </li></ul><ul><li>How do they relate to real-life business functions? </li></ul>
  27. 31. Case studies <ul><li>Edmunds.com </li></ul><ul><li>Charles Schwab </li></ul><ul><li>Lloyds TSB </li></ul><ul><li>Autodesk </li></ul><ul><li>NSPCC </li></ul>

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