Preparing For E Business

3 May 2023 www.ecommerce-consulting.net.au Slide 1

Preparing for E-business: Avoiding the Pitfalls, Planning

With Confidence

Kenneth Mortimer

If the Dot.Coms Didn’t Get it Right – What Chance Do we Have?


Goal and Objective

• Our goal is to provide some basic rules when approaching the ecommerce world and put the dot.com crash into perspective

• Establish what the dot.coms did wrong?

• How enterprises, large & small, should plan their approach to ecommerce?


Registrant Survey• Is a business plan most important when

planning for E-Business?• Are business processes most important

when planning for E-Business?• Is an IT&T strategy most important

when planning for E-Business?• Is a governance structure most

important when planning for E-Business?

• Is a vision statement most important when planning for E-Business?

• How ready is your enterprise for E-Business?

• What attention do you give to E-Business Commonwealth legislation?


Registrant Survey

Is a Business Plan Most Important When Preparing for E-Business?

Unanswered4%

Most Important32%

Very Important35%

Moderate Important

4%

Lesser Importance

14%

Least Important11%

Unanswered

Most Important

Very Important

Moderate Important

Lesser Importance

Least Important


Registrant Survey

Are Business Processes Most Important When Preparing for E-Business?

Unanswered0%

Most Important37%

Very Important22%

Moderate Important

19%

Lesser Importance

7%

Least Important15%

Unanswered

Most Important

Very Important

Moderate Important

Lesser Importance

Least Important


Registrant Survey

Is a IT&T Strategy Most Important When Preparing for E-Business?

Unanswered0%

Most Important44%

Very Important26%

Moderate Important

11%

Lesser Importance

19%

Least Important0%

Unanswered

Most Important

Very Important

Moderate Important

Lesser Importance

Least Important


Registrant Survey

Is a Governance Structure Most Important When Preparing for E-Business?

Unanswered4%

Most Important15%

Very Important33%

Moderate Important

22%

Lesser Importance

7%

Least Important19% Unanswered

Most Important

Very Important

Moderate Important

Lesser Importance

Least Important


Registrant Survey

Is a Vision Statement Most Important When Preparing for E-Business?

Unanswered0%

Most Important40%

Very Important22%

Moderate Important

15%

Lesser Importance

19%

Least Important4%

Unanswered

Most Important

Very Important

Moderate Important

Lesser Importance

Least Important


Registrant Survey

How Ready is Your Enterprise to Launch into E-Business?

Completely26%

Nearly There26%

Half Way There15%

Underway11%

Thinking22% Completely

Nearly There

Half Way There

Underway

Thinking


Registrant Survey

Is the Level of Attention that you give to Commonwealth Legislation Proportionate to the

level of Penalties you Might Incur?

Not at all19%

To a small degree19%

To a medium degree36%

Significantly19%

Very significantly

7%Not at all

To a small degree

To a medium degree

Significantly

Very significantly


911 – New York• B2B freight exchange network TransCore played a

material role in speeding aid to victims of the New York Trade Centre disaster

• Urgent request to find 500 refrigerated vans (40-foot trailers) to be used in disaster relief efforts in New York City

• TransCore directed the request to Web Exchange customers east of the Mississippi and also posted it on load monitors at truck stops within a 200-mile radius of New York

• Within two hours or so, FEMS had the responses needed and more, something like 700 refrigerated vans

• TransCore is a form of portal


What are Portals & Vortals?

• Portal has an ancient Latin origin meaning gateway to a city

• The ancient city had streets, quarters, aqueducts, sewers, etc

• In Internet terms a portal is an “information city” with many gateways to a variety of information, processes & transactions in a horizontal context

• Vortal is a portal focusing on any form of vertical market, I.e. B2B freight exchange



• The British-based Butler Group’s survey on corporate portals found that 65% of UK & European enterprises were considering implementing a Corporate Portal within the next 12-18 months

• Butler Group forecasts the Corporate Portal market will grow to $4 billion by end-2004



• Australia’s best known and most widely visited portal is NineMSN owned jointly by Microsoft and the None Network

• Brisbane’s most visible portal is probably www.ourbrisbane.com that went live in mid-July 2001 for the Brisbane City Council and wider Brisbane community

http://www.ourbrisbane.com/


www.ourbrisbane.com

The community initiativeThe centrepiece of ourbrisbane.com is the site you're visiting now but there are seven ourbrisbane.com companion programs to help get Brisbane online. These include free Internet training, help for small businesses and community groups to get online and plans for cheap computer and Internet access deals. Click on these links to find out what the ourbrisbane.com programs can offer you: Communities OnlineBusinesses OnlineElectronic GovernmentHave Your Say OnlineLearning and DevelopmentAffordable AccessTechnology Region

http://www.ourbrisbane.com/about/ourbris/communities.htm

http://www.ourbrisbane.com/about/ourbris/communities.htm

http://www.ourbrisbane.com/about/ourbris/business.htm

http://www.ourbrisbane.com/about/ourbris/electgovt.htm

http://www.ourbrisbane.com/about/ourbris/have.htm

http://www.ourbrisbane.com/about/ourbris/learning.htm

http://www.ourbrisbane.com/about/ourbris/affordable.htm

http://www.ourbrisbane.com/about/ourbris/technology.htm



• Are you suffering from –– Increasing procurement costs due to

excessive safety stock & shrinkage issues? – Numerous order fulfilment problems

resulting in increased expediting costs? – Loss of market share because of stock outs? – Decreasing customer loyalty due to missed

delivery dates? – Increasing operational costs and slimmer

margins due to procurement, production, and logistics problems?

• Then an e-Procurement portal/vortal may prove to be a solution



• The collapse of revenue from Optus's business division in the 3rd quarter has raised doubts about Optus's $100 million e-commerce strategy.Over the past two years, Optus has spent more than $100 million establishing its e-commerce and application service provider businesses, according to sources, but the big returns have failed to materialise.

• Optus joined the "global trading web". The strategy was to encourage companies to shift their purchasing decisions online. Two years after its launch, Optus can point to few wins in companies signing up.



• In the final analysis portals and vortals look like far more sophisticated web sites

• All of these are the graphical front-end of enterprises or communities on the Internet

• They are also the “tips of icebergs”

• So what makes up the other 70-80% of the iceberg?



• No magic bullets as to choice or best option for portal or vortal

• The outputs from your business planning encompassing the new paradigms of e-Business should point to the way forward, not only for portal or vortal but also all the various aspects of E-Business


Enterprise Portal: Basic Architecture


Enterprise Portal Benefits

Source: “Corporate Portals Today: The 2000 Market Survey” Delphi Group, Sept. 22, 2000


After Portals? Web Services?

• When unlikely bedfellows Microsoft (NASDAQ: MSFT) and IBM (NYSE: IBM) announced their union last week within the Web Services Interoperability Organization (WS-I), visions of divorce came immediately to mind.

• More than 50 WS-I member companies -- including rivals SAP (NYSE: SAP) and Oracle (NASDAQ: ORCL) -- have committed to a common goal: developing standards and best practices for Web services interoperability.

http://www.ecommercetimes.com/perl/story/16215.html

http://www.ws-i.org/

http://www.ws-i.org/


After Portals? Web Services?• Web services implementations will allow

business partners' enterprise applications to exchange data dynamically over the Internet regardless of platform, application or programming language.

• According to the WS-I white paper "additional work is necessary for message extensibility, binary attachments, routing, correlation, guaranteed message exchange, signatures, encryption, transactions, process flow, inspection and discovery."


After Portals? Web Services?

• Interoperability challenges within vast multinational companies such as Boeing and British Telecom make them ideal proving grounds for Web services.

• But if you want to add medium-scale evidence to your hype-free case study folder, take a look at Dollar Rent A Car (NYSE: DTG).

• The company built a Web service that allows travellers who purchase tickets from Southwest Airlines to add on a car rental without leaving Southwest's Web site.

http://www.dollarcar.com/

http://www.southwestairlines.com/


Web Services in Australia

• Allette built a system for a customer who syndicates financial data to clients which functions exactly like a web service.

• Allette started designing it 12 months ago and implemented it 6 months ago, and did not use the now standard SOAP/UDDI/WSDL structures.

• The architecture is quite amazing to work with.

• The previous system replicated a large database to all the different clients every night.


Web Services in Australia

• This processes an XML-formatted query, then delivers back an XML result which gets formatted by XSLT/java on the client's server - which then hands HTML back to the browser.

• It used to take 4-6 weeks for Allette’s developers to bring a new client online but with the new system, the client's developers have been bringing themselves online in 2-4 days without formal training.


Today’s Situation

• The London Business School conducted the World IT Strategy Census 2001

• The survey quizzes CEOs of 201 major global corporations from Europe, the US, Canada and Australia, on the influence of e-business on strategy formulation

• The survey found 67 per cent of respondent companies have a formal e-business strategy


Today’s Situation

• When asked to rate the major challenges in e-business strategy formulation, achieving successful return on investment came in at number one (15 per cent of respondents)

• After that, the major challenges listed were, among others:• Delivering customer benefits while educating

customers on the advantages of e-business;• Achieving alignment between systems and

software; and• Dealing with rapid technological change.


Today’s Situation

• Only 8% of the 166 respondents to the CGEY Australia survey said they were involved with e-commerce to the extent that it had become pervasive and was affecting their entire business

• Most (51%) had just set up a Web site and/or an intranet, while a further 41% had this plus one or two point solutions for specific business applications

• What is clear is that no business should feel smug at just ticking the "yes" box on a strategy survey


How Did We Get There?

• Ex-prime ministers were making paper millions in just days; top corporate executives resigned their blue chip posts to head the new-economy revolution companies

• Seafood Online was placed into administration in February after chewing up all but $10,000 of the $16 million of capital raised a year earlier.– Grand plans to wholesale fish online to Asia

failed spectacularly.– Despite forecasting revenues of $16.3

million for the 2000-01 financial year, not one fish was ever sold.



“We are seeing the passing of an era in which we did some grand experiments. The net (Internet) bubble has burst with a vengeance. We had forgotten one very important thing – you need a business plan to survive”

Dr David FarberFormer Chief TechnologistUS Federal Communications CommissionReported in the AFR 7 September 2001



• Paul Anderson CEO of BHP was at a conference with Microsoft’s Bill Gates, struggling understand what he was saying to a business like mining

• Gates said:• “Do you guys have any information flows

within the company?”• “Do you interact with your customers?”• “Do you have databases, general ledgers and

stuff like that to do purchasing?”• “Yes” Anderson replied• Gates said. “Either you don’t

understand e-commerce or you don’t understand your business.”



• Gates’ rebuke was Anderson’s epiphany, and started a process that will radically transform a traditional Australian old economy company

• Clearing a purchase order the old way varies from $25-100 an order

• “Over the Internet, we think that number looks like about 50 cents to a dollar

• The next challenge is to restructure the company around the new business models including the mining industry portal


How Did We Get Here?

• Too much attention to hype• Investors with a good track

record being transfixed by the soaring stock market values of dot com ventures

• Total blindness to the basic business fundamentals, e.g. One.Tel invested in by the Packer and Murdoch families did not have a reliable billing system!



• The London Business School survey quizzes CEOs of 201 major global corporations from Europe, the US, Canada and Australia, questioning executives on the influence of e-business on strategy formulation. The survey found 67 per cent of respondent companies have a formal e-business strategy

• Professor Michael Earl of London Business School suggests companies are treating e-business as a separate business project rather than an integral part of their entire business strategy



• Michael Porter of Harvard argues, the Internet provides a better technological platform than previous generations of IT.

• Gaining competitive advantage does not require a radically new approach to business; it requires building on the proven principles of effective strategy

• This is the key message of tonight’s address - e-business is not something done “on the side” but is integral to future health & wealth


Recommendation

• Ensure your business plan has all the basic components including performance metrics

• Review the completeness and efficiency of your business process model or establish one

• Ensure your IT&T systems are aligned with your business process model

• Ensure full compliance with legislative and regulatory frameworks

www.ecommerce-consulting.net.au3 May 2023

Business Planning Model

EngagementManagement

DataGathering

InformationAnalysis

Development

Delivery

Business FocusCritical Success Factors Mission Vision of the Business

Core Competencies Strengths, Weaknesses, Opportunities, Threats Strategic Intent

Business Direction

Business ObjectivesGoals Strategies/

Critical Success FactorsMeasures & TargetsQualitative Analysis

Benchmarks/ Comparisons

Future DirectionBusiness Issues

Business PerformanceImprovement Opportunities

Business Operations

Organization ViewsFunctions and Processes

Cross Functional ProcessesActivity Based Costs

Physical Location MapsPerformance AssessmentBenchmarks/Comparisons

Business ModelsInformation Views

Location ViewsImprovement Opportunities

Business Resources

Resource InventoryResource Valuation

Resource CompetencyProcess RelationshipsArchitecture Baseline

Benchmark/ Comparisons

Investment AnalysisCompetency&Quality Analysis

Coverage AnalysisImprovement Opportunities

Integrated Programs for ChangeBusiness and Technology Program Identification

Business Value and ImpactBusiness Program & Project Prioritisation

Business ArchitectureMigration Planning

Objectives

Process Model Cross Function

Architecture

Technology

ChangeManagement


Recommendation

• Align your overall IT&T strategy and technology infrastructure encompassing e-business with business strategy ensuring KPIs are achieved

• Develop a governance structure enabling the identification, development, funding and realisation of post implementation benefits of e-business initiatives

• Education & continuing awareness• Identify action items if any rectification

of the above is needed


Recommendation

• What are the essential elements of a business plan?– Mission Statement – where you are– Vision Statement – where you want

to be– Business Objectives – measurable,

that get you to where you want to be & satisfy the needs of stakeholders

– Critical Success Factors – the actions essential to achieving your objectives


Recommendation

• What is a business process model?– It is a model of your business processes

enabling business to occur, e.g. purchasing, selling, enabling compliance with a city, state or federal regulation

– It is organised into core & support processes each with processes at the strategic, tactical & operational levels

– Core & support processes should be “anchored” by IT&T systems that sustain the continuous & consistent achievement of business objectives


Recommendation

• Governance process is required to ensure that e-business initiatives are encouraged & nurtured from ideas through to post implementation benefit measurement

• It should address strategic issues: Image Branding Customers Distribution Customers & Customers’ Customers Business Partners Shareholders Suppliers


Education

The 12 Ecademy E-Principles:1. LEARNING - developing your resources

2. PLANNING— building an E-business strategy3. SYSTEM SOFTWARE—aligning technology to

business goals4. NETWORK EVALUATION— getting the plumbing

right5. SECURITY— protecting your company,

customers and suppliers6. INTERNET PAYMENTS— ensuring payments flow

in both directions


Education

The 12 Ecademy E-Principles: 7. BUYING TOOLS— creating electronic

relationships with suppliers8. SUPPLIER PORTAL— building a community of

suppliers9. INVENTORY & LOGISTICS— optimising the

supply chain10. SELLING TOOLS— developing an effective

selling mechanism11. CUSTOMER COMMUNITY— creating electronic

relationships12. PERSONALISATION— sharing mutual

information for mutual benefit


Internet Based Education

• Ecademy’s mission: provide E-business knowledge for individuals and enterprises, to learn, network and develop their businesses

• Up to date E-business news delivered to your desk top daily

• Ecademy network in South East Queensland• To become an Ecademist and join free, go to:

www.ecademy.com

http://www.ecademy.com/




Thank you for your attendance

Do you have any questions?

Preparing For E Business

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Transcript of Preparing For E Business