Flexible Business design

creating novel e-business design

• Jack Welch , CEO of General Electric, once said,

“When the rate of change in the market place exceeds the rate of change in the organization , the end is in sight.”

• Choosing a right strategy accelerates market penetration and minimizes cost.

• Choosing a wrong strategy can years of damage in cost, quality, customer satisfaction etc

Conti….

• Why do some companies always seem to be in the right place at the right time with right strategy? (like AE, Dell, Cisco etc )

• Because they do the following 3 things well:1. They redefine the value for their customers.2. They build powerful e-business designs.3. They understand customer priorities and

raise customer expectations to new heights.

Steps to create novel e-business design

• Step 1 : Self Diagnosis• Step 2 : Reverse the value chain• Step 3 : Choose a focus• Step 4 : Execute flawlessly

Step 1 : Self Diagnosis

• First assess the impact of recent customer, business and technological trends by asking following questions:

1. Has the new innovations created new ways of doing business?

2. Has your company responding to changing customer expectations?

3. Is your company willing to question and change countless industry assumptions?

4. Is your company successful at lowering costs?

Step 2:Reverse the chain

• The greatest challenge in e-business is linking emerging technology to a company’s new business design.

• “Technology alone cannot make a business design dynamic, but it can make a dynamic design a real dynamo.”

• Successful companies no longer just add value; they invent it.

Step 2:Reverse the chain

In house core

competencies

Rigid infrastructure/process

es

Products /

Services

Channels

Customers

Customer

needs

Integrated channels

Products /

Services

Flexible

infrastructure/proc

sses

Outsource

/inhou

se

core competenc

ies

Step 3 : Choose a focus

• A successful firm chooses one of the following types of focused excellence:

1. Service excellence: Delivering what customers want with hassle-free service and superior value.

2. Operational excellence: Delivering high quality products quickly, error-free and for a reasonable price.

3. Continuous-innovation excellence: Delivering products and services that push performance boundaries and delight customers.

Shifting Customer Service Expectations

PRESENT1.Excellent support2.Quality products3.Service Orientation

PAST1.Ease of use2.Reliabilty3.Basic Functionality

FUTURE1.Self-Service2.one-to-one marketing3.Value

Shifting Operational Expectations

PRESENT1.Delivery2.High Quality 3.PricePAST

1.Low Cost2.Functional Efficiency3.Minimum quality threshold

FUTURE1.Customized solutions2.Outsourcing3.End-to-End Process Effectiveness

Shifting Innovation Expectations

PRESENT1.Acquisitions of new ideas2.Changing the rules3.Squeeze the risk

PAST1.Inhouse research2.Steady Improvement3.Risk Averse

FUTURE1.Culture of Innovation2.Market Education3.Constantly delight the Customer

Step 4 : Execute flawlessly

• Once you have made the tough decisions required to gather these business processes.

• U must then figure out how to change your company and how to implement the decisions you have made.

• How can you move from where you are today to where you want to be?

• How do you integrate and adapt your old existing infrastructure to meet new e-business requirements?

The Way It was The New Way

Integrated Financial Services

Credit cards

Financial Planning

Banking

TravelServices

Membership Rewards

Online Travel Services

Life Path Planning

Private Banking

• Web has four main functions: e-business, entertainment, information, and communication.

• Communication is Web’s most popular function.• Firms use e-mail to communicate with customers, suppliers, and other

partners.• Online Communities: Internet forums, newsgroups, electronic bulletin boards,

and Web communities that appeal to people who share common interests. • Spam is junk e-mail.

Using the Web’s Communication

Function

• Blog - short for Web log, an online journal written by a blogger.• May incorporate wikis, a Web page that anyone can edit.• Some incorporate podcasts, video & audio recordings. Feedburner services

more than 200,000 podcasts.• Corporate blogs can help build brand trust.

– Example: Apple’s iLounge builds the iPod brand and gives Apple ideas for product improvement.

• Employee blogs may present ethical issues.

Web Communication

Blogs

• Banner Ads – messages placed on frequently visited websites• Pop-up Ads – ads that appear in separate windows• Pre-roll Video Ads – advertisements that roll as soon as a page is loaded• Search marketing – companies pay for top visibility in search results

Some companies, such as

ValPak Marketing Systems, offer virtual, searchable coupons.

Web Communication

Web Based Promotion

Future growth of many companies is linked to a global strategy that incorporates e-business.

U.S. leads world in Internet users but ranks only 5th in Internet penetration. E-Bay may dominate most markets, but Chinese company Alibaba.com has 83% of

the auction business in China. Three of four Web pages are written in English. E-business can heighten competition in the global marketplace...

Global Environment of E-

Business

World Internet Statistics

Developing a Successful Website

It is easier to create a bad website than a good one. Organizations must think about:

Planning and PreparationContent and ConnectionsCosts and Maintenance

• Click-through rate - percentage of people presented with a Web banner ad who click on it.

• Conversion rate - percentage of visitors to a website who make a purchase.

Managing a Website