CONFIDENTIAL Copyright © 2003 by Marketspace LLC Chapter 7 Lecture Slides Strategy Implementation Rayport, Jaworski Intro ...
Implementation — Today’s Objective <ul><li>To introduce the firm-specific infrastructure that must be created and configur...
Chapter 7:  Implementation <ul><ul><li>Implementation framework </li></ul></ul><ul><ul><li>Human assets </li></ul></ul><ul...
Exhibit 7–1: Framework for Implementation Business Model Human Assets Processes Organizational Structure Systems Culture L...
Exhibit 7–2: Why Does Implementation Matter? Source:  Modified version of materials in Thomas V. Bonoma,  The Marketing Ed...
Chapter 7:  Implementation <ul><ul><li>Implementation framework </li></ul></ul><ul><ul><li>Human assets </li></ul></ul><ul...
Supporting Slide 7 -- A:  Built to Last or Built to Rebuild? P.242 <ul><ul><li>Built to Last </li></ul></ul><ul><ul><li>Gr...
Supporting Slide 7 – B:  Human Assets  Recruitment Searching for employees Selection Making hiring decisions and formal jo...
Chapter 7:  Implementation <ul><ul><li>Implementation framework </li></ul></ul><ul><ul><li>Human assets </li></ul></ul><ul...
Supporting Slide 7 -- D:  Processes <ul><li>Resource-allocation processes </li></ul><ul><li>Human resources management pro...
Chapter 7:  Implementation <ul><ul><li>Implementation framework </li></ul></ul><ul><ul><li>Human assets </li></ul></ul><ul...
Exhibit 7–4: Single Organization versus Dual Organization CEO of company <ul><li>Company strategy  </li></ul><ul><li>Human...
Chapter 7:  Implementation <ul><ul><li>Implementation framework </li></ul></ul><ul><ul><li>Human assets </li></ul></ul><ul...
Supporting Slide 7—E:  Information Technology Systems Information Technology CRM Systems ERP Systems
Supporting Slide 7--F:  Requirements of Evaluation and Compensation Systems <ul><li>Evaluation and compensation systems sh...
Exhibit 7–5: Four Types of Supply Chains Found Online B2C - Business to Consumer <ul><ul><li>Stock it yourself. </li></ul>...
Chapter 7:  Implementation <ul><ul><li>Implementation framework </li></ul></ul><ul><ul><li>Human assets </li></ul></ul><ul...
Chapter 7:  Implementation <ul><ul><li>Implementation framework </li></ul></ul><ul><ul><li>Human assets </li></ul></ul><ul...
Chapter 7:  Implementation <ul><ul><li>Implementation framework </li></ul></ul><ul><ul><li>Human assets </li></ul></ul><ul...
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  1. 1. CONFIDENTIAL Copyright © 2003 by Marketspace LLC Chapter 7 Lecture Slides Strategy Implementation Rayport, Jaworski Intro to e-Commerce, 2 nd Ed Exhibits and Tables
  2. 2. Implementation — Today’s Objective <ul><li>To introduce the firm-specific infrastructure that must be created and configured to go to market and achieve the firm’s strategic goals </li></ul>How will the business win? How can the business go to market? Chapter 4 Chapter 7
  3. 3. Chapter 7: Implementation <ul><ul><li>Implementation framework </li></ul></ul><ul><ul><li>Human assets </li></ul></ul><ul><ul><li>Processes </li></ul></ul><ul><ul><li>Organizational structures </li></ul></ul><ul><ul><li>Systems </li></ul></ul><ul><ul><li>Culture </li></ul></ul><ul><ul><li>Leadership </li></ul></ul><ul><ul><li>Partnerships </li></ul></ul>
  4. 4. Exhibit 7–1: Framework for Implementation Business Model Human Assets Processes Organizational Structure Systems Culture Leadership Partnerships
  5. 5. Exhibit 7–2: Why Does Implementation Matter? Source: Modified version of materials in Thomas V. Bonoma, The Marketing Edge (New York: The Free Press, 1985). <ul><li>Success </li></ul><ul><ul><li>All that can be done to assure success has been done. </li></ul></ul><ul><li>Roulette </li></ul><ul><ul><li>Good execution will either mitigate poor strategy or hasten failure because strategy is not sound. </li></ul></ul><ul><li>Trouble </li></ul><ul><ul><li>Poor execution hampers good strategy. Managers may never become aware of strategic soundness because of execution inadequacies. </li></ul></ul><ul><li>Failure </li></ul><ul><ul><li>Bad strategy is difficult to diagnose because it is masked by poor execution. </li></ul></ul><ul><ul><li>Two things are wrong, making problems more difficult to fix. </li></ul></ul>Poor Good Appropriate Inappropriate Strategy Implementation
  6. 6. Chapter 7: Implementation <ul><ul><li>Implementation framework </li></ul></ul><ul><ul><li>Human assets </li></ul></ul><ul><ul><li>Processes </li></ul></ul><ul><ul><li>Organizational structures </li></ul></ul><ul><ul><li>Systems </li></ul></ul><ul><ul><li>Culture </li></ul></ul><ul><ul><li>Leadership </li></ul></ul><ul><ul><li>Partnerships </li></ul></ul>
  7. 7. Supporting Slide 7 -- A: Built to Last or Built to Rebuild? P.242 <ul><ul><li>Built to Last </li></ul></ul><ul><ul><li>Growth is largely organic </li></ul></ul><ul><ul><li>Firm scales up over a period of years and repeatedly leverages it brand in the marketplace </li></ul></ul><ul><ul><li>Brand assets and equity take many years to build and must be carefully nurtured over a long period of time </li></ul></ul><ul><ul><li>These companies are often not led by visionary leaders with strong personalities </li></ul></ul><ul><ul><li>Built to Rebuild </li></ul></ul><ul><ul><li>No time for elaborate planning and analysis in the online world—firms must act very quickly </li></ul></ul><ul><ul><li>While growth can be organic, it is just as likely to be from acquisitions of competitors and complementary </li></ul></ul><ul><ul><li>Challenge is not finding opportunity, but having a leader who can choose the right opportunity </li></ul></ul>
  8. 8. Supporting Slide 7 – B: Human Assets Recruitment Searching for employees Selection Making hiring decisions and formal job offers Development Plan to use work and training to achieve goals Retention Ability of a company to keep the top performers
  9. 9. Chapter 7: Implementation <ul><ul><li>Implementation framework </li></ul></ul><ul><ul><li>Human assets </li></ul></ul><ul><ul><li>Processes </li></ul></ul><ul><ul><li>Organizational structures </li></ul></ul><ul><ul><li>Systems </li></ul></ul><ul><ul><li>Culture </li></ul></ul><ul><ul><li>Leadership </li></ul></ul><ul><ul><li>Partnerships </li></ul></ul>
  10. 10. Supporting Slide 7 -- D: Processes <ul><li>Resource-allocation processes </li></ul><ul><li>Human resources management processes </li></ul><ul><li>Manufacturing and distribution processes </li></ul><ul><li>Payment and billing processes </li></ul><ul><li>Customer support/handling processes </li></ul>
  11. 11. Chapter 7: Implementation <ul><ul><li>Implementation framework </li></ul></ul><ul><ul><li>Human assets </li></ul></ul><ul><ul><li>Processes </li></ul></ul><ul><ul><li>Organizational structures </li></ul></ul><ul><ul><li>Systems </li></ul></ul><ul><ul><li>Culture </li></ul></ul><ul><ul><li>Leadership </li></ul></ul><ul><ul><li>Partnerships </li></ul></ul>
  12. 12. Exhibit 7–4: Single Organization versus Dual Organization CEO of company <ul><li>Company strategy </li></ul><ul><li>Human assets </li></ul><ul><li>Operations </li></ul><ul><li>IT infrastructure </li></ul><ul><li>Processes </li></ul><ul><li>Culture </li></ul><ul><li>Online and offline partnerships </li></ul>Single Organization Online CEO <ul><li>Online strategy </li></ul><ul><li>Human assets </li></ul><ul><li>Operations </li></ul><ul><li>IT infrastructure </li></ul><ul><li>Processes </li></ul><ul><li>Culture </li></ul><ul><li>Partnerships </li></ul>Offline CEO <ul><li>Offline strategy </li></ul><ul><li>Human assets </li></ul><ul><li>Operations </li></ul><ul><li>IT infrastructure </li></ul><ul><li>Processes </li></ul><ul><li>Culture </li></ul><ul><li>Partnerships </li></ul>Dual Organization Company CEO
  13. 13. Chapter 7: Implementation <ul><ul><li>Implementation framework </li></ul></ul><ul><ul><li>Human assets </li></ul></ul><ul><ul><li>Processes </li></ul></ul><ul><ul><li>Organizational structures </li></ul></ul><ul><ul><li>Systems </li></ul></ul><ul><ul><li>Culture </li></ul></ul><ul><ul><li>Leadership </li></ul></ul><ul><ul><li>Partnerships </li></ul></ul>
  14. 14. Supporting Slide 7—E: Information Technology Systems Information Technology CRM Systems ERP Systems
  15. 15. Supporting Slide 7--F: Requirements of Evaluation and Compensation Systems <ul><li>Evaluation and compensation systems should: </li></ul><ul><ul><li>Link closely with the company’s strategy </li></ul></ul><ul><ul><li>Expose both the strengths and weaknesses of employees </li></ul></ul><ul><ul><li>Have both monetary and nonmonetary rewards </li></ul></ul><ul><ul><li>Apply to the specific types of employees in the company </li></ul></ul><ul><ul><li>Judge performance consistently </li></ul></ul><ul><ul><li>Heed both upward and downward feedback </li></ul></ul>
  16. 16. Exhibit 7–5: Four Types of Supply Chains Found Online B2C - Business to Consumer <ul><ul><li>Stock it yourself. </li></ul></ul><ul><ul><li>Outsource warehousing </li></ul></ul><ul><ul><li>Drop shipping </li></ul></ul><ul><ul><li>Fulfillment intermediaries </li></ul></ul>B2B - Business to Business <ul><ul><li>Customer centric </li></ul></ul><ul><ul><li>Vertical hubs </li></ul></ul>C2C - Consumer to Consumer <ul><ul><li>Much like a vertical hub (many websites facilitate customer-to-customer sales) </li></ul></ul><ul><ul><li>Provides a forum for buyers and sellers to meet and trade directly </li></ul></ul><ul><ul><li>A global marketplace with a large and interested trading company </li></ul></ul>C2B - Consumer to Business <ul><ul><li>Individual consumers place bids with businesses (such as Priceline) and businesses decide whether to sell </li></ul></ul>
  17. 17. Chapter 7: Implementation <ul><ul><li>Implementation framework </li></ul></ul><ul><ul><li>Human assets </li></ul></ul><ul><ul><li>Processes </li></ul></ul><ul><ul><li>Organizational structures </li></ul></ul><ul><ul><li>Systems </li></ul></ul><ul><ul><li>Culture </li></ul></ul><ul><ul><li>Leadership </li></ul></ul><ul><ul><li>Partnerships </li></ul></ul>
  18. 18. Chapter 7: Implementation <ul><ul><li>Implementation framework </li></ul></ul><ul><ul><li>Human assets </li></ul></ul><ul><ul><li>Processes </li></ul></ul><ul><ul><li>Organizational structures </li></ul></ul><ul><ul><li>Systems </li></ul></ul><ul><ul><li>Culture </li></ul></ul><ul><ul><li>Leadership </li></ul></ul><ul><ul><li>Partnerships </li></ul></ul>
  19. 19. Chapter 7: Implementation <ul><ul><li>Implementation framework </li></ul></ul><ul><ul><li>Human assets </li></ul></ul><ul><ul><li>Processes </li></ul></ul><ul><ul><li>Organizational structures </li></ul></ul><ul><ul><li>Systems </li></ul></ul><ul><ul><li>Culture </li></ul></ul><ul><ul><li>Leadership </li></ul></ul><ul><ul><li>Partnerships </li></ul></ul>
  20. 20. The End

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