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1. EC Strategy andEC Strategy and
ImplementationImplementation
Chapter 9Chapter 9

2. Planning FundamentalsPlanning Fundamentals
 Information technology has created a seismicInformation technology has created a seismic
shift in the way companies do business.shift in the way companies do business.
– Just knowing the importance and structure ofJust knowing the importance and structure of
e-business is not enoughe-business is not enough
– You must create and implement anYou must create and implement an action planaction plan thatthat
allows you to make the transition from an oldallows you to make the transition from an old
business design to a new e-business designbusiness design to a new e-business design
 E-business is the latest organizational change,E-business is the latest organizational change,
E-business is fourth major changeE-business is fourth major change

3. Components ofComponents of
Organizational PlanningOrganizational Planning

4. Strategic Planning forStrategic Planning for
ECEC
 Determination of a suitable EC strategy begins withDetermination of a suitable EC strategy begins with
identification of the opportunities and risks.identification of the opportunities and risks.
 Available OptionsAvailable Options
– Not to go for ECNot to go for EC
– Do only passive advertisementDo only passive advertisement
– Open additional online storeOpen additional online store
– Establish online divisionEstablish online division
– Dissolve regular business and go for cyber spaceDissolve regular business and go for cyber space
 Choice dependencies :-Choice dependencies :-
– Nature of businessNature of business
– Internal and external available resourcesInternal and external available resources
– Changing customer and environmentChanging customer and environment
 One approach to use generic methodology………One approach to use generic methodology………

5. Strategic Planning forStrategic Planning for
ECEC
 Industry and competitive analysisIndustry and competitive analysis
– SWOTSWOT
 Strategy formulationStrategy formulation
– Strategy formulation is the development ofStrategy formulation is the development of
long-range and strategic plans for the effectivelong-range and strategic plans for the effective
management of environmental opportunitiesmanagement of environmental opportunities
and threats, in the light of cooperative strengthand threats, in the light of cooperative strength
and weaknesses.and weaknesses.
 ImplementationImplementation
– Implementation planImplementation plan
– Pilot projectPilot project
 Performance reassessmentPerformance reassessment
– Feedback and corrective actionsFeedback and corrective actions

6. Strategy FormulationStrategy Formulation
 Three basic reasons for businessThree basic reasons for business
establish website.establish website.
– Marketing or passive advertisementsMarketing or passive advertisements
– Customer support /web based callCustomer support /web based call
centerscenters
– Sales (existing traditional products andSales (existing traditional products and
entire new range of products)entire new range of products)

7. Strategy FormulationStrategy Formulation
 Critical success factors of EC initiativesCritical success factors of EC initiatives
– Product or service offeredProduct or service offered
– Management supportManagement support
– Project teamProject team
– Technical infrastructure availableTechnical infrastructure available
– Customer responsivenessCustomer responsiveness
– User interfaceUser interface
– Security and controlSecurity and control
– Competition and market situationCompetition and market situation
– Cost of the projectCost of the project
– TrustTrust

8. Strategy FormulationStrategy Formulation
 Value analysis approachValue analysis approach
– When a company initiate a EC venture it formsWhen a company initiate a EC venture it forms
competitive edgecompetitive edge
– Creating value for customer and partnersCreating value for customer and partners
 Return on investment and risk analysisReturn on investment and risk analysis
– calculate the benefitscalculate the benefits
 Its include both quantifiable or non quantifiable benefitsIts include both quantifiable or non quantifiable benefits
– Uncertainty and risks needs to be examinedUncertainty and risks needs to be examined
 EC scenarios (Table 9.2)EC scenarios (Table 9.2)

9. Strategy FormulationStrategy Formulation
 Competitive strategies: fighting against all for winCompetitive strategies: fighting against all for win
– Head to head frontal assaultHead to head frontal assault
 Attack to Competitors with superior resourcesAttack to Competitors with superior resources
 costlycostly
– Flanking maneuverFlanking maneuver
 Defensive strategyDefensive strategy
 Attack a part where the competitor is weakAttack a part where the competitor is weak
 Long term profitabilityLong term profitability
– Raise structural barriersRaise structural barriers
 Low price, high service etc.Low price, high service etc.
 Cooperative strategies :working togetherCooperative strategies :working together
– joint venturingjoint venturing
– Value chain partnershipValue chain partnership

10. EC Strategy in ActionEC Strategy in Action
 Steps to successful EC programsSteps to successful EC programs
– Conduct education and trainingConduct education and training
– Review current distribution modelsReview current distribution models
– Understand customer expectation from theUnderstand customer expectation from the
webweb
– Revaluate nature of product and serviceRevaluate nature of product and service
– Give a new role to HR dept.Give a new role to HR dept.
– Extend your current systemExtend your current system
– Track new competitionTrack new competition
– Develop new marketing planDevelop new marketing plan
– Participate in creation of marketplaceParticipate in creation of marketplace
– Encourage EC management styleEncourage EC management style

11. Competitive IntelligenceCompetitive Intelligence
on the Interneton the Internet
 Internet as a source of information forInternet as a source of information for
strategic decisionsstrategic decisions
 Review competitors websitesReview competitors websites
 Analyze related newsgroupAnalyze related newsgroup
 Examine publicly available financialExamine publicly available financial
documentsdocuments
 Conduct surveyConduct survey
 Use information delivery servicesUse information delivery services
 ask for opinion in chat roomsask for opinion in chat rooms

12. Implementation plan andImplementation plan and
executionexecution
 Implementation plan and execution normally startsImplementation plan and execution normally starts
with establishing web team:-with establishing web team:-
 Pilot projectsPilot projects
 EC leadership (a small company can be a leader)EC leadership (a small company can be a leader)
 Uncovering new opportunities and applicationsUncovering new opportunities and applications
 Assigning functional tasks to webmastersAssigning functional tasks to webmasters
 Evaluating outsourcing and hosting choicesEvaluating outsourcing and hosting choices
 Content managementContent management
 Security and controlSecurity and control

13. Project and StrategyProject and Strategy
AssessmentAssessment
 Many companies plan really well…..Many companies plan really well…..
– Yet few translate strategy into actionYet few translate strategy into action
 Need for assessment during and afterNeed for assessment during and after
 FinalizationFinalization