E-commerce COM380

E-commerce

Lecture 4

Strategy and Applications

E-commerce COM380

E-commerce Strategy

Objectives

By the end of the lecture students should: – Understand alternative strategic approaches for

e-business– Appreciate appropriate strategy process model– Understand the tools which generate e-business

strategies

E-commerce COM380

E-commerce Strategy

Strategy process model• Strategic evaluation

• Strategic objectives

• Strategy definition

• Strategy implementation

E-commerce COM380

E-commerce Strategy

E-business strategy• Corporate strategy

• Business unit strategy

• Operational strategies

• Functional strategies

E-commerce COM380

E-commerce Strategy

Strategy process model• Internal/external environment• Statement of vision and objectives• Strategy development• Strategy implementation• Monitor effectiveness

E-commerce COM380

E-commerce Strategy

Strategy process model• Initiation• Diagnosis• Breakout• Transition• Monitor effectiveness

E-commerce COM380

E-commerce Strategy

Strategy process model• Planning horizon

• Planning cycles

• Power base

• Core focus

E-commerce COM380

E-commerce Strategy

Strategy process modelTen step e-marketing plan

• Situation review

• SWOT analysis

• Summary of key issues

• Statement of future objectives

E-commerce COM380

E-commerce Strategy

Strategy process model• Strategy to achieve them • Marketing mix for delivering strategy • Action plan • Financial forecasts • Control systems• Contingency plans

E-commerce COM380

E-commerce Strategy

Strategy process model• What is your strategic vision?

• How do you govern dot-com operations?

• How do you allocate key resources?• What is your operating infrastructure?

• Is your management team aligned for the dot-com agenda?

E-commerce COM380

E-commerce Strategy

Strategy process model• Technology• Service• Market• Brand

E-commerce COM380

E-commerce Strategy

Strategy process model• Leadership

• Infrastructure

• Organisational learning

E-commerce COM380

E-commerce Strategy

E-business strategy

• Prescriptive strategy

• Emergent strategy

E-commerce COM380

E-commerce Strategy

E-business strategy

• Situation analysis

• Strategic objectives

• Implementation

E-commerce COM380

E-commerce Strategy

Resource and process analysis

• Resource analysis

• Stage models of e-business development

E-commerce COM380

E-commerce Strategy

E-business development• No web site or presence• Basic web presence• Simple static information site• Simple interactive site• Interactive site• Fully interactive site

E-commerce COM380

E-commerce Strategy

E-business development• Transaction e-commerce site

• Service-oriented relationship building web site

• Brand building site

• Portal site

E-commerce COM380

E-commerce Strategy

Process analysis• Application portfolio analysis

• Organisational and IS SWOT Analysis

E-commerce COM380

E-commerce Strategy

Resource analysis • Human resources

• Financial resources

E-commerce COM380

E-commerce Strategy

Competitive environment analysis

• Demand analysis

E-commerce COM380

E-commerce Strategy

Competitive threats • New e-commerce entrants

• New digital products

• New business models

E-commerce COM380

E-commerce Strategy

Sell-side threats • Customer power and knowledge

• Power of intermediaries

E-commerce COM380

E-commerce Strategy

Buy-side threats

• Power of suppliers • Power of intermediaries

E-commerce COM380

E-commerce Strategy

Competitor analysis

• Resource-advantage mapping – Core competencies – Customer value

E-commerce COM380

E-commerce Strategy

Strategic objectives

• Defining vision and mission – Relevance – Change – Value – People

E-commerce COM380

E-commerce Strategy

Objective setting

• Online revenue contribution • Balanced scorecard

E-commerce COM380

E-commerce Strategy

Strategy definition• E-business priorities • Restructuring • Business and revenue models • Marketplace Restructuring • Market and product development strategies• Positioning and differentiation strategies

E-commerce COM380

E-commerce Strategy

Strategic implementation• Business alignment IS strategy

• Business impacting IS strategy

• Elements of IS strategy– Business information strategy

– IS functionality strategy

– IS/IT strategy

E-commerce COM380

E-commerce Strategy

Investment appraisal• Overall levels of spending on information to

support e-business• Decisions about which business applications to

invest in (portfolio analysis)• Assessment if the cost/benefit for individual

applications• Productivity paradox

E-commerce COM380

Introduction to E-commerce

Objectives– Understand alternative strategic approaches for

e-business– Appreciate appropriate strategy process model– Understand the tools which generate e-business

strategies