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InterEconomic bridge


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InterEconomic Bridge (IEB) defines a model which allows businesses to be rebuilt as its Digital Replication. In this context, entities are said to belong to the "old" or "new" economy, in according with their pertaining practices. The methodology includes 5 phases to a comprehensive re-enactment of the current business. These phases are described in this document (Paper in progress).

IEB's main purpose is to bridge the gap between the Old and New Economy, by providing businesses with the means to turn themselves into its digital homologues. The business digital projection imbues current knowledge and business practices which become and adjuvant environment that does not resist the new Electronic Domain Technologies. IEB quicken the enactment of a mirror digital entity of the mother company, which ingrains the current (New Economy) practices and Infrastructure without losing the capabilities of the mother company. IEB provides an innovative framework to soften the path and lower the uncertainty inherent to the sort of transformations intrinsic to business restructuring.

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InterEconomic bridge

  1. 1. PROFILE © Septiembre 2002 José Payano, MBA Santo DomingoRepública Dominicana
  2. 2. Agenda• Part I.............Knowing about it.• Part II............Eliciting Some Benefits.• Part III..........Building the Bridge.
  3. 3. Part IWhat is it?
  4. 4. A prelude!Imagine how the market would have appreciated Barnes&Noble Should be their idea.... A perfect Digital Hologram for Barnes&Noble!
  5. 5. Definition• The InterEconomic Bridge is an infrastructure-based Strategic Model.• Its main purpose is to bridge the gap between the Old and New Economy, by providing businesses with the means to turn themselves into its digital homologues.• The Business’ Digital Hologram (BDH) is a mirror digital implementation, in which all current business content is sifted into its digital homologue.• The Bridge right side belongs to the BDH. The left side represents the Original Business Unit (OBU).• The Bridge defines the Integration between both worlds.
  6. 6. Assumption (I)• Even confronted with the approval of e-signatures and the general acceptance of e-commerce and e- business practices as valuable strategies to assure the future value of the company, most businesses will not radically change their current practices in the foreseen short or longterm.• This is due to the close-knit culture, internal, external relationships, the general state of the Enterprise Knowledge, power structure, paradigms, tools and processes.
  7. 7. Assumption (II)• Vendors are missing the point in trying to sell to their constituents markets by resorting to convenient strategic frameworks to “match” their technology.• In so doing they are addressing the wrong problem in the wrong context.• Contextual Displacement: Change the context and the real issues begin to surface.• Vendors are preaching strategic alignment: But they, understandably, bank more on the sales wing than on the business development issues.
  8. 8. Foresight! “No one sews a patch of unshrunk cloth on an old garment, for the patch will pull away from the garment, making the tear worse”.“Neither do men pour new wine into old wineskins. If they do, the skins will burst, the wine will run out and the wineskins will be ruined. No, they pour new wine into new wineskins, and both are preserved” Matthew 9:16-17
  9. 9. Inhibitors• The current business environment, its practices, processes, internal and external relationships.• Huge base of Capital Assets preempts the business managers from taking agressive expansive pathways.• The Human Factor refrains inexorably the magnitude of change that is admissible to the bussiness.• The Generational Factor implies the current business top level executives and board of directors outlive an internet obsolesced era.
  10. 10. Catalyzers• Legal Framework: E-signatures laws has been promulgated in most countries, potentially enabling the digital realm of business.• Current State of Knowledge: Five years ago launching an e-business initiative was an act of faith. Today, experience has contributed to sift right from wrong doing in the field.• Technological Maturity: E-Business technologies were child-play in the hands of some visionaries prophets. Today, it means powerful tools to enable the business to survive the hallway of a new age.• Real Options Posture: The strategic morale means choosing your seat: In front, in second or last row...But your strategic posture will inevitably have an “edge effect” in your company’s market standing.
  11. 11. So what should be done?• What we are missing is a comprehensive strategic framework to: – Fill in the gap between the Old and New Economy, re-building the business in a digital environment. – Protect the mother company from the risks involved in such kind of transformation. – Leverage core competencies, market position, products, services, practices, knowledge and intellectual assets. – Incubate an environment adyuvant to the Electronic Domain Technologies. – Define the new business in terms of value created for the diverse groups of stakeholders. – Present clear-cut phases of execution to (re)build the current business into its digital homologue.
  12. 12. ...Bridge the Gap! Statement of Direction to start moving the E-Vision business to its future digital homologue. Content Opportunity Matrix and digital E-Assessment business requirements. Business Digital Hologram: Original E-Hologram Company’s Digital Homologue. Controlled re-building of the Old BusinessE-Consolidation into its Digital Hologram. Final launch of the Digital Hologram as the E-Company mainstream business.
  13. 13. The Concept• The InterEconomic Bridge is a comprehensive set of New Economy technologies and practices.• Its main purpose is to bridge the gap between the Old and New Economy, by providing businesses with the means to turn themselves into its digital homologue.• The Business’ Digital Hologram (BDH) is a digital mirror implementation, in which all current business content is sifted into its digital homologue.• The Bridge right side belongs to the BDH. The left side represents the Original Business Unit (OBU).• The Bridge defines the Integration between both worlds.
  14. 14. The Concept• The Business Digital Hologram rebuilds the current business: – Leveraging current business market position, products, services, knowledge, technology, operations and core competencies. – Embedding this knowledge into a new core infrastructure and embodying the whole into a new business DNA. – BDH is materialized in a series of unambiguous phases, each one accelerating the Digital Economy uptake. – The resulting enterprise ingrains all current business practices and technologies from the outset.
  15. 15. The Concept• The Service Delivery System: – A Multimodal collaborative channel management strategy serves as the value delivery system. – The appropriate customer strategy will provide the necessary customer management platform. – Customer centric processes guarantee the value proposition. – Subscriptions and entitlements manage anticipated customer events. – Personalization goes to the linked-benefits type offerings assuring customer centricity.
  16. 16. Part II ElicitingSome Benefits
  17. 17. Shareholders• Nothing is more valuable than assuring continuous value creation: – Best practices in EVA models suggest growth investments mandatory to CEO. – Best practices in GROWTH models suggest bearing in mind the different requirements of running the current business and “keeping the pipeline full” of new options for the future. – Growing new business out of the resources provided by the current one is the best way to assure continuous wealth creation. – Capturing new markets value is a necessary growth strategy for the industry leader or those challenging it.
  18. 18. Software Vendors• The implementation is a perquisite of the vendor: – Consulting is a comprehensive Value Proposition. – Service include re-enacting the Business. – Software should be imbued as Service. – Complimentary offer should include the technology. – Full package would include end-to-end implementation. – Be prepare to “outsource” the “problem”. – Infrastructure Sw Vendors are poised to be Winners. – Only Have-To: Formerly Win the Contextual Change (e-vision phase).
  19. 19. The Business• Capture Real Options embracing the New Economy without disrupting current operations: – Cash-flow business is protected from the risks. – Focus preserve competitive advantage at both ends. – Investment are made according to macro plan. – The new “way” is imbued in controlled environment. – Savvy consultants assure best practice implementation. – Backoffice operations become “content providers”. – The Bridge becomes a non-stop link.
  20. 20. Focus! To maintain operations in a core business and do e-business--we tried that initially, but it just didn’t allow people to focus on either side. So webroke off the ebusiness team but linked them back to the mother company to keep us connected. - Delta Airlines
  21. 21. The Business• Resource Provisioning Mode: – The BDH re-use all mother company business support units and legacy systems as service providers. – The last two phases of the nascent e-company provide means to streamline processes in the service units. – During the e-company phase, the service units may become self-sustained satellite units and provide service to the vertical market or other industries. – Ultimately this could generate a rippling effect to the whole economy triggering new levels of market efficiency.
  22. 22. The Customer• Convenient access and packaged solutions becomes the norm and not the exception: – Service available 24x7x365. – Multimodal: Multichannel/Multidevice. – Reliable. – Personalized, solution-based offerings. – Collaborative actions permeate channels. – Anytime, anywhere. – Secure connection. – Service design according to needs. – Adaptive, customer “pull” model.
  23. 23. Part IIIBuilding the Bridge
  24. 24. Avoiding Cannibalization• The new business should not cannibalize the old one: – Digital services are provided by the BDH. – BackOffice service is provided by OBU. – Both entities coexist in uncompetitive domains. – They share the same customers. – They have their own channels, but provide complimentary services. – Branding the channel will do the Job. – Coalescing the overall customer strategy will maintain the necessary unicity of vision.
  25. 25. Implementation• IEB is also a Strategy Consultancy Service to enable businesses to be re-built by bridging the gap between current and proposed new business practices.• Five stages define the path to rebuilding a business.• IEB is an evolving concept where other practitioners are contributing with insight into their practices.
  26. 26. E-HOLOGRAM Five Stages to IEB E-CONSOLI- E-VISIÓN E-ASSESMENT E-HOLOGRAM E-COMPANY DATIONACTIVITIES: ACTIVITIES: ACTIVITIES: ACTIVITIES: ACTIVITIES: Provide Insigt Assess Current Appraise and Consolidate Establish A into the Business Select Operation. Target Date. concepts. Practice. Technologies. Demonstrate Plan the Create Content Build IEB Value Creation. OverTake. Awareness. Matrix. Infrastructure. Migrate Other Resource Brainstorm Process/Value Launch New Areas. Provisioning Board of Matrix. Business Communicate mode should Directors. Initiative. Successes. be operational. Functional Gain Analysis Communicate Transitional Commitment. to mother DELIVERY: Projects. DELIVERY: company.. DigitalDELIVERY: DELIVERY: Opportunity DELIVERY: Hologram Statement of Matrix The e- Direction for Digital emulating Company Business the e-company. Hologram. Mother overtake Requirements Company
  27. 27. In short• The InterEconomic Bridge initiative provides the means for businesses to re-conceive themselves for the New Economy, without losing its background knowledge.• In these two counterpoised elements rests the innovative force of the concept: (a) On one hand, business domain strengths are preserved, while (b) On the other, businesses are given a unique opportunity to rethink themselves in terms of the new practices and technologies available. Contextual displacement accelerates New Economy uptake. A standard procedure would favour IT sales in all domains. Big companies don’t ever have to lose ground to nimble new competitors anymore.
  28. 28. Who? Jose PayanoExperienced Banking Innovation strategist, with recent engagement inMobile Financial Services, Financial Inclusion Model development,Automatic Teller Machines Innovation undertaking, Cash Managementand Contact Center design...I devise innovative financial/banking services with a customer-focusedvantage point. I have devised a "Customer Value Model" along thisline.I am currently charting my last undertaking: The "Future of Bankingand Business" (FoB) model! Full profile:
  29. 29. The End