Chapter 2 Preparing the Online Business
Agenda • • • Competition analysis The new channel New paradigms New system creation Discussion
Agenda • • • Competition analysis The new channel New paradigms New system creation Discussion
Competition Analysis • Identify and investigate your competitors on the web – Conducting business – Contacting customers • Collect information – Survey – Purchase (Dun & Bradstreet) – Research & development (patents) • Develop strategies - exploit competitors’ weakness and undermine their strength
Agenda • • • Competition analysis The new channel New paradigms New system creation Discussion
The New Channel • Old channels: linear – Face-to-face – Mail – Phone • New channel: direct contact between customers and every partner in value chain – Internet • Channel conflict
Channel Conflicts • Clear market segmentation for all channel partners: decide who sells what to whom • Solutions – Market check – Channel strategy: reconstructing the value chain (selling products and providing service supports) – Conflict documentation – Time limit
Agenda • • • Competition analysis The new channel New paradigms New system creation Discussion
New Paradigms • One-to-one enterprise (mass customization) • Dynamic trade: Waverly Deutsch of Forrester Research “ leveraging technology to satisfy current demand with customized response” – – – Buyer-selected not seller-selected Market decides the price Added value: services More fast and exact production Customers’ preferences database
Business Process Re-engineering BPR • Proposed by James Champy and Michael Hammer • BPR – Question existing processes, rules and structures – Replaces the old ones with completely new processes, rules and structures – Increase the revenues or effectiveness by factors
Business Process Re-engineering BPR • Customer – centric way • Hyperarchical organization structure • Reorganization – Employee – Structure – Combination • Example – Just in time – Manufacturing resources planning systems – Material requirement planning systems
Agenda • • • Competition analysis The new channel New paradigms New system creation Discussion
New System Creation • • • Analysis Plan Design Development Implementation strategies
Analysis • Product identification – Soft goods • Software or information • Sales and distribution channel – Hard goods • Digitizing the value chain and orders – Service providers • Translation or advertising • IT evaluation – In house or outsource or combination
Analysis • Goals – Lowest product price – Highest service – Cost reduction – Sales • Location – Own internet connection – ISP
Analysis • Shopping – Ease to use – Attractive • Customer profile – Tracking visits & navigation – Customer database • Public relation – Advertise and promote
Analysis • Payment – Methods – Security • Laws – National – International • Culture
Plan • E-business strategy in enterprise strategy – Which portion of the business • Business partners considerations – Channel conflict • Management & employee preparation • Effective marketing Campaign
Plan • Performance review method – Services & products fit into customer’s need and expectation • Information Technology – – – E-mail, Intranet, Extranet, hardware, software Heterogeneous systems architectures System integration (new and old ones) Back up plan (web server, connection) Security plan • Project team
Design • • • Process requirements Web design: strategy & creativity Security Customer database Marketing techniques
Development • IT selection: hardware, software • Methods – In- house – Outsource – Combination
Implementation Strategies • Management involvement • Plan for constant change • Pilot – Test (bugs, errors) – Feedback (performance) – Scalability – Integration
Implementation Strategies • Training, maintenance and support • Measure productivity • Prepare for resistance – Company culture and personal culture – Start from e-mail
Agenda • • • Competition analysis The new channel New paradigms New system creation Discussion
Discussion - I • What kind of impact will be on the old traditional business due to dynamic trading? • Is it necessary to conduct a business reengineering before implementing an ebusiness or any new way of doing business?
Discussion - II • What are the differences between the training of employees in the old systems and e-business systems? • What are the differences between the security consideration in the old systems and e-business systems? • Can you improve the development steps in creation of new e-business?
Points to Remember • • • Competition analysis The new channel New paradigms New system creation Discussion
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