Project World 2001 Workshop Presenter Yogi Schulz e-Business

Project. World 2001 Workshop Presenter: Yogi Schulz e-Business Projects Managing e-Business Projects: Risks, Issues & Solutions Case Studies Yogi Schulz June 2001 File: case_studies. PPT 1

E-tail: Gleaming Storefronts with Nothing Inside Case Study e-Business Projects r Read the Business Week article – May 1, 2000, pages 97 - 98 r Consider major issues/difficulties: – tactical – strategic r Brainstorm solutions to: – solve immediate marketing/operational problems – strengthen the brand/product/service offering r What would you recommend as a project manager? Yogi Schulz File: case_studies. PPT 2

E-tail Case Study Major Issues/Difficulties e-Business Projects r Ordinary/boring/pedestrian web sites – print/TV ad expectations not met by web sites r Lavish spending on promotion – excessive customer acquisition cost r Over-emphasis on growth – neglect of profitability r Poor order fulfillment – neglect of back office infrastructure r Yogi Schulz Hype raises consumer expectations excessively Flawed business model File: case_studies. PPT 3

E-tail Case Study Suggested Solutions e-Business Projects r Improve web sites: – deliver a superior customer experience r Reduce promotional expenses: – reduce print/TV advertising – increase Internet marketing r Invest in back-office infrastructure: – warehouses – inventory management systems – order fulfillment capability Yogi Schulz File: case_studies. PPT 4

H & R Block Case Study e-Business Projects r Form into r groups Read the Business Week article – April 17, 2000, page 200 r List major issues/difficulties: – tactical – strategic r Brainstorm solutions to: – solve immediate problems – strengthen the product/service offering r Yogi Schulz What would you recommend as a project manager? File: case_studies. PPT 5

H & R Block Case Study Major Issues/Difficulties - 1 e-Business Projects r Inadequate data confidentiality – able to see other people’s tax returns r Site outages/availability lapses – inadequate infrastructure r Software bugs – inaccurate results – little or no software testing r Slow to poor performance Undermine consumer confidence and trust – inadequate capacity/scalability Yogi Schulz r Missing functionality – couldn’t handle some states File: case_studies. PPT 6

H & R Block Case Study Major Issues/Difficulties - 2 e-Business Projects r No online help/support call center – able to see other people’s tax returns r Rush to market – late to market r Poor user interface – users became confused & abandoned tax preparation r Inadequate operational monitoring – users called in to report seeing tax returns of others r Yogi Schulz Inadequate backup/recovery – took days to recover from a problem File: case_studies. PPT 7

H & R Block Case Study Strategic Issues e-Business Projects r Me-too web strategy – reactive to Intuit; trying to keep up – not a unique/differentiated strategy r Franchisees wary of cannibalizing their business – slowed development of the Web alternative – involve Franchisees in Web initiatives r Intuit - competitor with a year’s head start – threatens H R Block’s traditional market share r Yogi Schulz Inability to promote related products – will slow revenue growth and profitability of mortgage and financial services File: case_studies. PPT 8

H & R Block Case Study Suggested Solutions - 1 e-Business Projects r } Strengthen the infrastructure: – capacity to improve response time – security/privacy r Improve the tax software: – fix bugs – widen the scope to meet needs r Yogi Schulz Build services: – – – mortgage online trading real-time quotes stock and mutual fund research portfolio and retirement planning Rebuild consumer confidence and trust Expand the business File: case_studies. PPT 9

H & R Block Case Study Suggested Solutions - 2 e-Business Projects r Develop a distinct strategy. Consider: – a separate brand for the web initiative – active support/participation of the franchisees r Create a call center – consider directing calls to local franchisees r Consider a more modest web start: – tax information/help pages – tax information/help chat room – appointment booking service for franchisees Yogi Schulz File: case_studies. PPT 10

Holt Renfrew Case Study e-Business Projects r Form into r groups Read the Globe & Mail article – September 13, 2000 r List major issues/difficulties for: – Holt Renfrew – its customers – its competitors r Brainstorm solutions to: – selling through the web – providing superior customer service Yogi Schulz r What would you recommend as a project manager? File: case_studies. PPT 11

Holt Renfrew Case Study Major Issues/Difficulties e-Business Projects r Inadequate cost/benefit: – expensive site – poor rating – mixed customer reaction r Customer profile: – high fashion/service expectations – urban residence; near store – price is not a significant consideration r Yogi Schulz Some products not suited to Web Product characteristics: – need for touch/feel in buying process – need to fit/adjust product File: case_studies. PPT 12

Holt Renfrew Case Study Suggested Solutions e-Business Projects r Marketing; not sales oriented web site: – – – r showcase products advertise new offerings design a custom product offer customer registration for e-mail notification offer e-mail which contains a specific page link Strengthen bricks & mortars: – upgrade customer service staff Yogi Schulz File: case_studies. PPT 13

Emulex Corp. Case Study e-Business Projects r Form into r groups Read the National Post articles – September 2 and 4, 2000 r List major issues/difficulties for: – Emulex – Internet Wire – investors r Brainstorm solutions to: – react to crises caused by fraud, mis-information – minimize likelihood of a re-occurrence Yogi Schulz r What would you recommend as a project manager? File: case_studies. PPT 14

Emulex Corp. Case Study Major Issues/Difficulties e-Business Projects r Fraud/deception is easy to perpetrate r Fraudulent press release panicked investors – investor confidence undermined r Poor authenticity verification processes: – obvious text quality problems not corrected – pressure to issue news quickly r Legal precedents unclear – potential for defamation liability r Yogi Schulz No personnel exit process – user id still active Fraud difficult to detect/ counteract File: case_studies. PPT 15

Emulex Corp. Case Study Suggested Solutions e-Business Projects r Define Emulex crisis response plan: – assign crisis leader – orient staff about plan contents – prepare communication templates r Improve IW wire service processes: – – r Yogi Schulz verify authenticity through confirmation change passwords regularly implement certificates/encryption institute an employee exit process Improved IW authenticity verification process File: case_studies. PPT 16

Boo. com Case Study e-Business Projects r Form into r groups Read the Business Week Online article – June 12, 2000 r Read the E-Business article – July 2000 r List major issues/difficulties: – tactical – strategic r Yogi Schulz What would you recommend as a project manager? – solve immediate problems – strengthen the product/service offering File: case_studies. PPT 17

Boo. com Case Study Major Issues/Difficulties e-Business Projects r Too much promotional spending – TV, radio and fashion magazines – cash consumption rate too fast r Technical glitches: – innovative 3 D product photography slow – multi-lingual, multi-currency ambitions not delivered – slow performance; high expectation of client workstation capability r Yogi Schulz Online experience difficult to execute Mis-read customer profile: – impatient young female – desire for social aspect to shopping File: case_studies. PPT 18

Boo. com Case Study Suggested Solutions e-Business Projects r Build understanding of customer expectations r Promote via the web r Design for fast response r Contain scope: – begin with few languages; currencies – begin with targeted/limited product line r Plan for business profitability r Build a bricks component to the business plan Yogi Schulz File: case_studies. PPT 19

Nike - i 2 Case Study e-Business Projects r Form into groups r Read the Internet. Week article – March 1, 2001 r List major issues/difficulties: – tactical – strategic r Brainstorm solutions to: – strengthen e-commerce software package implementation projects r Yogi Schulz What would you recommend as a project manager? File: case_studies. PPT 20

Nike - i 2 Major Issues/Difficulties e-Business Projects r Highly customized implementation r Production use before testing is complete r Inadequate vendor knowledge of customer and/or industry Software packages can be demanding to implement Yogi Schulz File: case_studies. PPT 21

Nike - i 2 Suggested Solutions e-Business Projects r Implement software packages with minimal customization for first release r Production use starts after User Acceptance Test sign-off r Support project team/software vendor in achieving customer/industry understanding Yogi Schulz File: case_studies. PPT 22

Future Shop Case Study e-Business Projects r Form into r groups Read the Network World article – July 14, 2000 r List major issues/difficulties for: – Future Shop – its customers r Brainstorm solutions to: – react to crises caused by fraud, mis-information – minimize likelihood of a re-occurrence r Yogi Schulz What would you recommend as a project manager? File: case_studies. PPT 23

Future Shop Case Study Major Issues/Difficulties e-Business Projects r Undermined customer confidence r Hoax panicked customers – undermines customer confidence r Sensitive customer data managed poorly Hoaxes difficult to defuse – mass-mailing vendor not in control – not managing outsourcing relationship r Yogi Schulz Slow crisis response: – – customer service notified well after incident time zone differences created difficulties timing of bank notification unclear correcting E-mail sent 2 days later File: case_studies. PPT 24

Future Shop Case Study Suggested Solutions e-Business Projects r Improve outsource vendor selection: – assess vendor stability/capability – review business process and security infrastructure r Manage outsource vendor relationship: – test security measures – include phony names; forwarded to Future Shop staff r Provide some customer restitution r Define crisis response plan: Yogi Schulz – assign crisis leader – orient staff about plan contents – prepare communication templates File: case_studies. PPT 25

Future Shop Guaranteed Safe Shopping e-Business Projects Yogi Schulz File: case_studies. PPT 26

You Know You`re Taking Computers Too Seriously When. . . e-Business Projects r You’ve never bought one of the "dummies" books. r You refuse to delete programs off your hard drive that you haven`t used in two years. r You buy 50 new floppies rather than go through the 300 used ones you have and delete the files on them. r You get in the elevator and double-click the button for the floor you want. r You consider reading in the bathroom to be Multi-tasking. Yogi Schulz File: case_studies. PPT 27

MSN Home Page e-Business Projects Yogi Schulz File: case_studies. PPT 28

One Minute e-Business Strategy e-Business Projects r Stakeholders: – – – r audience sponsor publishers builders/developers infrastructure support Yogi Schulz Content: – domain – components Personalization: – personal data to collect – features to offer r Promotion: – media – web – mail Goals: – sell – inform – influence r r r Operation: – collecting, managing & publishing content – software maintenance – infrastructure operations File: case_studies. PPT 29

Elements of an e-Business Strategy - 1 e-Business Projects r The right goal – Profitability r A unique value proposition which is defensible against competitors – What can the company do differently that customers will pay for? r A distinctive value chain organization – Must links company functions and partners across major business processes Yogi Schulz File: case_studies. PPT 30

Elements of an e-Business Strategy - 2 e-Business Projects r Trade-offs outlining what the company will and will not do r A fit between the different parts of the organization's activities – Seeing the business as a system of value with activities that reinforce each other r Continuity, even in the face of a fad – This takes leadership and discipline Yogi Schulz Dr. Douglas Reid Professor of business strategy Queen's. University School of Business http: //itworld. ca/rx. cfm? v=J, H, 20011780023&S=108297 File: case_studies. PPT 31

One Minute e-Business Security e-Business Projects Potential Threats: r External & internal sabotage: – denial of service – viruses – malicious hacking r Yogi Schulz r r Physical access control r Userid management r Security consciousness of: – partners – suppliers – employees Fraud: – credit card – assumed identity r Actions: r – high surfing activity – high return rate – high credit denial Application security vulnerabilities Lax physical access Tracking suspicious actions: r Attack recovery plan File: case_studies. PPT 32

Web Privacy Policy Development Considerations e-Business Projects r Policy Inclusions: – – – type of info collected plan for info re-sell/give intent for info customer rights takeover/bankruptcy consequences – problem resolution process r Yogi Schulz r Information collected: – – – personal identification personal profile credit profile purchase history view/click history correspondence history Information access: – – display update/correct remove/delete userid/password File: case_studies. PPT 33

Traditional vs. Collaborative Project Management r Traditional e-Business Project Management r Collaborative Project Management r Internal and local r r Fixed plans r Fluid plans r Tasks and processes r Results r Interactions and knowledge management r Planning and scheduling r Low uncertainty and risk r r r Yogi Schulz r Low-to-moderate speed Low-to-moderate change Uniform project teams Project leader makes decisions External and distributed r High uncertainty and risk r High speed r High change r Diverse project teams r Distributed decision-making 34 File: case_studies. PPT

Definition: Application Service Provider - ASP e-Business Projects r A software vendor that delivers applications over the Internet or a private network r A company that delivers digital data using: – – – software hardware network content services Yogi Schulz File: case_studies. PPT 35

The last of the Computer Viruses list e-Business Projects r Elvis Virus: Computer gets bloated, self destructs, and appears in malls all over America r Schwarzenegger Virus: Terminates whatever you have running, and it will be back r Gallup Virus : 60% of the PC's infected will lose 30% of their data 14% of the time (plus or minus a 3. 5% margin on error) r Sears Virus: Your data won't appear unless you buy new cables, power supply and a set of shocks. Yogi Schulz File: case_studies. PPT 36

Managing e-Business Projects: Risks, Issues & Solutions e-Business Projects r Yogi Schulz Management Consultants 700, 400 - 5 th Ave. S. W. Calgary, Alberta Canada T 2 P 0 L 6 Phone/Fax: (403) 249 -5255 E-mail: Yogi. Schulz@corvelle. com Web: www. corvelle. com r President of Corvelle Management Consultants r Information technology related management consulting r Project management and systems development r Computing Canada & Calgary Herald columnist Yogi Schulz File: case_studies. PPT 37