MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE Strategic Planning for EC.

MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE

Strategic Planning for EC


The strategic Planning Cycle Industry & Competitive Analysis Strategy Formulation Implementation Performance Assessment, Strategy

reassessment


Industry & Competitive Analysis Monitor, evaluate and disseminate information

from external and internal environments Identify critical factors that will determine

success SWOT analysis MATRIX


Strategy Formulation Examine\Redefine the corporate mission

Develop strategies Set Implementation Guidelines


Examine\Redefine the corporate mission by specifying achievable objectives

measurable what does the company intend to achieve?


Develop strategies Must be clear and not superficial People, organisation, processes and

technology


Develop strategies (cont) A value chain approach Relationship Marketing ROI & Risk Analysis Critical Success Factors Four EC Scenarios Competitive v’s Cooperative Competitive Intelligence on the Internet


A value chain approach Clarify Value Chain Statements

Create New Values


Clarify Value Chain Statements Can I realise significant margins by

consolidating parts of the value chain? Can I create significant value for customers by

reducing the number of entities they have to deal with in the value chain?

What additional skills do I need to develop in order to take over the functions of others in my value chain?

Will I be at a a competitive disadvantage if someone else moves first to consolidate the value chain?


Create New Values Can I offer additional information regarding transaction

services to my existing customer base? Can I address the needs of new customer segments

by repackaging my current information assets or by creating new business propositions using the Internet?

Will my current business be significantly harmed by other businesses providing some of the value that I currently offer?

Will my current business be significantly hared by other companies providing some of the value I currently offer on an a la carte basis?


Relationship Marketing Differentiation by superior service at the point

of contact with the customer customer acquisition customer retention customer extension customer selection


ROI & Risk Analysis ROI = ratio of cost of resources required to the

benefits generated Includes both quantifiable and non-quantifiable

items Non-quantifiable items

effective marketing channel increased sales increased customer service competitive advantage organisational design organisational learning


ROI & Risk Analysis (Cont) Risks

technological inherent in business reorganisation demographic changes


Critical Success Factors Top Management support cross functional teams technical infrastructure customer acceptance user friendly web interface Integration with legacy systems


Critical Success Factors (cont.) security and control of the EC system pilot project corporate knowledge promotion and internal communication cost level of trust between buyers and sellers


Critical Success Factors (cont.) Specific product or services traded

Does the business have a product that is a good candidate for EC?

Can the business develop new products for EC?

How can I use the information I have about individual customers to make it easier for them to do business with me?


Critical Success Factors (cont.) Specific product or services traded (cont.)

What help can I give customers by using the experience of other customers or the expertise of my employees?

Will I be at a significant disadvantage if my competitors provide these capabilities to customers before I do?


Four EC Scenarios Open Global Commerce Scenario Members Only Subnets Scenario Electronic Middlemen Scenario New Consumer Marketing Channels Scenario


Competitive v’s Cooperative A competitive strategy assumes fighting

against all competitors for the purpose of survival and to win

A cooperative strategy plans for working together with specific competitors to gain advantage against other competitors.


Competitive Strategies Frontal assault

attacks competitor in all areas the attacker must have superior resources

and a willingness to persevere Flanking manoeuvre

attacks where the competitor is weak attacker must be patient and willing to

carefully expand


Competitive Strategies (cont.) Raise structural barriers

full product lines switching costs low entry costs

Lower the inducement for attack lower the expectation of profits by attackers


Cooperative strategies Joint venture

pooling of resources new, separate entity formed involves loss of control

Value chain partnership


Steps to maximise success Education and Training Review Current Distribution and Supply Chain

Models Understand What Your Customers and

Partners Expect From the Web Re-evaluate the Nature of Your Products and

Services Give A New Role to Your Human Resources

Department Cross Functional Job Descriptions Establish Corporate Intranet \ Internet Policies


Steps to maximise success (cont.) Extend Your Current Systems to the Outside Track New Competitors and Market Shares Develop A Web-centric Marketing Strategy Participate in the Creation and Development of

Virtual Market Places Instil EC Management Style Constant environmental scanning


Competitive Intelligence on the Internet Review Competitors Web Sites Analyse Related News Groups Examine Publicly Available Financial

Documents Corporate Research Companies Solicit Opinions in Chat Rooms Interactive Customer Questionnaires Avoid Over Reliance Push V’s Pull Information Technology


Set Implementation Guidelines Pilot Project Uncover Specific EC Opportunities and

Applications Create Web Team Evaluate Outsourcing Web site design Assessment


Uncover Specific EC Opportunities Brainstorming Consultants Vendors Review Competitors Literature


Create Web Team Transformational Leadership Define Roles Assign Functional Skills to Subprojects Cross Functional Staffing Documentation


Evaluate Outsourcing Cost Expertise Benchmarking against vendors other clients Loss of control Core competencies


Assessment Measure Collect information Re-evaluate Recommence planning cycle


Collect information Staff Customers Suppliers


Re-evaluate Did it deliver what it was supposed to Is it still viable in an ever changing

environment Reassess initial strategy to learn from

mistakes and strengthen advantages Identify failing projects ASAP and determine

reasons for failure Identify control and administrative issues


Change Management


Need for Change Management Environment is always changing Change is Natural 70% of IT projects fail


Change does not occur in isolation

Technology People

Task

Structure


Stages of Change Unfreeze Present Behaviour

Creating motivation and readiness for change

Change the organisational system Enabling people to see things differently and

react differently in the future

Re-freeze Ensuring that the new behaviour will be

secure against reversion


The Managing Change Model (Siegal)

Evaluating Change

Managing the people side of

change

Managing the organisation side of change

Planning change

Individual response to change General nature of change


Critical Success Factors Executive Support Transformational Leadership

Communicating the Vision Inspiring

Sound Implementation Strategy Transition Management Team

Moral authority Legal authority


Critical Success Factors (cont.) Trust Communication Recognise Resistance Normal

Understand sources and motives May derive benefits from the dysfunction Maintain personal homeostasis Reflects poorly upon past performance


Critical Success Factors (cont.) Ownership Empowerment Monitoring Feedback

MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE Strategic Planning for EC.

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