Post on 21-Jan-2016
Assess the environment for better adaptationIllustration to m-business
Conference MBA/MBIFebruary 27, 2003
HEC Lausanne
Yves PigneurHEC Lausanne
yves.pigneur@unil.ch(+41 21) 692.3416
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Agenda
• Roles of information systems– Information, decision and coordination
1. Alignment with business– Business model
2. Alignment with environment– Market Scorecard
3. Alignment with evolution– Scenario
• Conclusion
CustomerCustomer
InnovationInnovation
FinanceFinance
InfrastructureInfrastructure
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Information systems LEVEL 0
INFORMATIONINFORMATION
DECISIONDECISION
COORDINATIONCOORDINATION
TeamworkTeamwork
Inter-organizationalInter-organizational
OrganizationOrganization
MIS
ERPDSS
BSC
CSCW
workflow SCM
CRM
0.1
0.2
0.3
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ENVIRONMENTENVIRONMENT
STRATEGYSTRATEGY
BUSINESSBUSINESS TECHNOLOGYTECHNOLOGY
Scenarios
3 levels of adaptation
EVOLUTION
Marketscorecard
Businessmodel
1
23
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STRATEGYSTRATEGY
BUSINESSBUSINESS TECHNOLOGYTECHNOLOGY
Alignment with business LEVEL 1
STRATEGIC FIT AUTOMATION LINKAGE
FUNCTIONAL INTEGRATION
INT
ER
NA
LE
XT
ER
NA
L
BUSINESS STRATEGY I/T STRATEGY
ORGANIZATIONAL INFRASTRUCTUREAND PROCESSES
IS INFRASTRUCTURE AND PROCESSES
BUSINESSSCOPE
DISTINCTIVE COMPETENCIES
BUSINESSGOVERNANCE
BUSINESSSCOPE
TECHNOLOGYSCOPE
I/TGOVERNANCE
PROCESSES
ARCHITECTURES
SKILLSSKILLS
ADMINISTRATIVE INFRASTRUCTURE
PROCESSES
[Venkatraman, 1993]
Business
model
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e-Business Model Framework (eBMF)
Customerrelationship
Customerrelationship
Productinnovation
Productinnovation
FinancialAspects
FinancialAspects
Infrastructureoperation
Infrastructureoperation
Capability
Configuration
Partnership
Channel
Customer
Proposition
Cost
Revenue
Relationship
Profit
Business model
Browsing in price lists Online booking Transportation
(low flight fares)
explanation
The customer can navigate on the Website and check-
out prices for flights on different dates and at
different times
The customer can book flights directly on the
easyJet.com Website by using his credit card
The customer buys a transportation service from easyJet.com that is similar
to competitor offers but cheaper because there is no in-flight service and no seat
reservation
reasoning
This service essentially reduces the risk of not choosing the cheapest
convenient flight
This service reduces the customer’s effort of having
to go to a travel agency
nature of value element
Value creation: The customer individually
chooses the flight that fits him best
Value appropriation: This service concerns the buying
process
Value consuming: The main product is transportation
from A to B
value measure me-too me-too me-too
price free free highly attractive
HOW?
WHO?
WHAT?
HOW MUCH?
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Value Proposition Illustration
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Distribution channel Illustration
Advertising of new mobile phone models
Mobile phone catalogue
Advertising of new Nokia and other mobile
phones
Phone subsidies by operators, in store sales
force
Promotion of state-of-the art Nokia equipment
Mobile phone catalogue Only Nokia USA Support, games, cartoons, ring tones
Profile evaluator, phone comparison, product
catalogue
Support, games, cartoons, ring tonesNokia.com
Nokia.xy(Country
websites)
Telecom operators
Club Nokia(Web site
per nation)
Nokia Concept
Stores
CHANNEL Awareness Evaluation Purchase After sales
Nokia Snowboard World cup, Beach volleyball
Nokia Events
Personalized support, games, ring tones,
editors
Qualified Nokia sales personnel
In store sales of Nokia equipment
In store sales of Nokia and other
equipment
Promotion of state-of-the art Nokia equipment
Courses on the use of Nokia phone features
Advertising of new mobile phone
technology & models
Advertising of new mobile phone
technology & models
Purchase of games, images, ring tones
Support
Support, games, SMS, MMS, ring
tones
Nokia Academy
C U S T O M E R B U Y I N G C Y C L E
R A
N G
E
O F
C
H A
N N
E L
S
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Illustration
uploadimages
Print ofimages
Deliveryof items
Marketingof product
services
Printinginfrastructure
Packingstaff
ColorMailerWebsite
enablesvalue forACTIVITIES
CAPABILITIES
PARTNERS
Infrastructure management
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Balanced scorecard (BSC) & Intangible Assets Monitor
Customerperspective
Customerperspective
Innovationperspective
Innovationperspective
Financialperspective
Financialperspective
Internalperspective
Internalperspective
How do the customers perceive us?
In which process do we have to prove excellence?
How to improve our services and our quality?
How do shareholder perceive us?
CUSTOMER
Goals Measures
& initiatives
INNOVATION
Goals Measures
& initiatives
FINANCE
Goals Measures
& initiatives
PROCESSES
Goals Measures
& initiatives
MEASURE[Kaplan, 1992]
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Alignment with environment LEVEL 2
CAPTURE
VISUALIZE
Multi-perspective
MODEL
DATAWAREHOUSE
GRAPHICS
WIRELESSLANDSCAPE
CustomerMarket
CustomerMarket
Productinnovation
Productinnovation
Financialaspects
Financialaspects
InfrastructureIndustry
InfrastructureIndustry
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Market Scorecard (MSC)
MARKETperspective
MARKETperspective
Innovationperspective
Innovationperspective
Financialperspective
Financialperspective
INDUSTRYperspective
INDUSTRYperspective
ACTORS
supply demand
APPLICATIONSISSUES
ACCOUNTS
Disruptivetechnology
NEW
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Applications (products and services)
APPLICATIONS[Durlacher, 2001]
m-business
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Market survey
Market survey and adoption[Durlacher, 2001]
TheFeature.com
Gartner group
m-business
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Application portfolio
Application analysis[Ward, , 2002]
STRATEGIC
Applicationsthat are criticalto sustaining future
KEY OPERATIONAL
Applicationsthat are essentialfor success
HIGH POTENTIAL
Applicationsthat may be importantIn achieving the future
SUPPORT
Applicationsthat are valuablefor success
High STRATEGIC IMPACT OF IT low
Hig
h
I
MP
OR
TA
NC
E O
F I
T A
PP
LIC
AT
ION
S
low
EMERGING
GROWTH
DECLINE
MATURITY
12
43
McFarlan
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Actors and stakeholders
Network Device
ServiceContent
Needs
ACTORS
Device maker
Device retailer
Equipment vendor
Technology enabler
Network operator
ISP
Virtual operator
Venue (WLAN)
Content provider
Portal
Content aggregator
Application providerUser
Car manufacturer
Travel/transportation
Logistics
Government
Regulation authority
Standardization group
Customer union
Payment agent
Billing party
Bank/FSP
PKI provider
m-business
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Actor/actor analysis
Competitive analysis
competitorscompetitors
Substituteproducts(services)
Substituteproducts(services)
Customers(channels)
Customers(channels)
Newentrants
Newentrants
SuppliersSuppliers
Bargaining power Bargaining power
threats
threats
Rivalries among the
Barriers to entries
[Porter, 2001]
Competitive
forces
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Issues, conflicts and challenges
Network Device
ServiceContent
Needs
- Application development- Billing and pricing- Gaming Vs office
- GSM Vs WLAN Vs ad hoc- network interoperability- infrastructure sharing
- Phone Vs PDA Vs laptop- Dedicated Vs generalized- Multi-modality
- Spectrum availability- Safety & health- Security & privacy- Digital divide
ISSUES
Integration
GeneralizationCentralization
Killer app.
Disruptivetechnology
Regulation
m-business
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VERYSTRONG
DETERMINAN TS / INFLUENCINGVAR IABLES (explanatory)
KEY / STAKEVARIABLES-Alternative channels-Competing t echnologies
RELAY VARIA BLES(Unstable leverage, taboo)
STRONG
DOMINANT-Network – deviceinterconnectivity-Roaming o f services
MEDIUM /AVERAGE
NEIGHBORING-Increasing mobility-Entry barriers-Conv. Of devices
REGULATING-Availability of funding-Standardisation-Business alliances-Everywhere – reach ofservices-Infrastructure sharing-Network coverage
REGULATING-Always-on connectivity-Implementation of location-based services-Internet usage
REGULATING-Consumers’ willingness topay for m-services-Market competition
OBJECTIVE /TARGET-Development ofapplications and services-Pricing
WEAK
AUTONOMOUS-Backward compatibility-Conv. Of industries-Div. Of devices-Eur. Regulation policy
AUTONOMOUS-Volatility in the Hi-techmarkets-Shortening developmentcycles
REGULATING-Demand for entertainment-Personalisation-Usability-Cultural trends-Everyone – availability ofservices
DOMINATED-Consumer awareness-Advertising and branding-Enterpreneurialism
VERYWEAK
AUTONOMOUS-Shortage of devices-Corporate phone policies-Health/environmental issues-M-applications integratedinto corporate info systems-Trialability-Purchasing power
AUTONOMOUS-Privacy and dataprotection-Enabling technicaldrivers-Guarantees for qualityand speed of m-services
DOMINATED-Profit sharing model betweenoperators and wireless serviceproviders
RESULT / DEPENDENTVAR IABLES (reacting to relay and
determinant variables)
EXCLUDED VAR IABLES MIDDLE CLUSTERVERY WEAK WEAK MEDIUM / AVERAGE STRONG VERY STRONG
Dependency
Infl
uenc
eVERY
STRONGDETERMINAN TS / INFLUENCING
VAR IABLES (explanatory)
KEY / STAKEVARIABLES-Alternative channels-Competing t echnologies
RELAY VARIA BLES(Unstable leverage, taboo)
STRONG
DOMINANT-Network – deviceinterconnectivity-Roaming o f services
MEDIUM /AVERAGE
NEIGHBORING-Increasing mobility-Entry barriers-Conv. Of devices
REGULATING-Availability of funding-Standardisation-Business alliances-Everywhere – reach ofservices-Infrastructure sharing-Network coverage
REGULATING-Always-on connectivity-Implementation of location-based services-Internet usage
REGULATING-Consumers’ willingness topay for m-services-Market competition
OBJECTIVE /TARGET-Development ofapplications and services-Pricing
WEAK
AUTONOMOUS-Backward compatibility-Conv. Of industries-Div. Of devices-Eur. Regulation policy
AUTONOMOUS-Volatility in the Hi-techmarkets-Shortening developmentcycles
REGULATING-Demand for entertainment-Personalisation-Usability-Cultural trends-Everyone – availability ofservices
DOMINATED-Consumer awareness-Advertising and branding-Enterpreneurialism
VERYWEAK
AUTONOMOUS-Shortage of devices-Corporate phone policies-Health/environmental issues-M-applications integratedinto corporate info systems-Trialability-Purchasing power
AUTONOMOUS-Privacy and dataprotection-Enabling technicaldrivers-Guarantees for qualityand speed of m-services
DOMINATED-Profit sharing model betweenoperators and wireless serviceproviders
RESULT / DEPENDENTVAR IABLES (reacting to relay and
determinant variables)
EXCLUDED VAR IABLES MIDDLE CLUSTERVERY WEAK WEAK MEDIUM / AVERAGE STRONG VERY STRONG
Dependency
Infl
uenc
e
[Constantiou, 2001]
Issue/issue analysis
Structural analysis
m-business
MicMac
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Actor/issue analysis[Allas, 2001]
Sou
rce
McQ
inse
y Q
uart
erly
Actor analysis
Mactor
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Application/issue analysis
Disruption analysis[Raffi, 2002]
Sony and Microsoft: the battle of convergence
Source Harvard Business Review
time
perf
orm
ance
marketrupture
New replaces old technology
Market for new technology
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1
2
3
A B
C D?
Clear-enough future
forecast
Traditional toolkit
Alternate futures
Discrete options
Game theoryDecision analysis
True ambiguity
No basis for forecast
analogiesPattern recognition
Range of futures
No natural option
Scenarioplanning
Levels of uncertainty:
[Courtney, 1997]
Alignment with future LEVEL 3
SIMULATE
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Scenario planning m-business
[Flament, 2001] [Sideris, 2002]
Marketchaos
Operatorintegration
Portalsyndication
[Karlson, 2002]
SCENARIO
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Value per user dueto network effects
Total expectedbenefit to a new
adopter
Willingness topay
Market Penetration
-
+
+
R
B
NetworkBenefits
MarketSaturation
Adoption+
+
+
Total expectedbenefit to a new
adopter
Total Revenue TotalInvestment
+
Total Value createdby investments
+
R
Installed BaseRevenue
Adoption
+
+
Switching Costs+
-
B
SlowedAdoption
Slowed Adoption and Installed Base Causal Loops
Market Saturation and Network Benefits Causal Loops
Strategic modeling
Simulation
SIMULATE
[Constance, 2001]
m-business
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Synthesis
3 levels of maturity, adaptability, utility and … complexityfor Information systems
1. IS aligned with the business– Align strategy, business and IT– with Business model
2. IS aligned with the environment– Assess the markets forces– with Market scorecard– and analysis: adoption, application portfolio,
competitive forces, actor/issue, disruption, …
3. IS aligned with the future– Tame the future uncertainty– with Scenarios– and simulation
CustomerCustomer
InnovationInnovation
FinanceFinance
InfrastructureInfrastructure