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Chapter 2

Chapter 2. Preparing the Online Business. Agenda. Competition analysis The new channel New paradigms New system creation Discussion. Agenda. Competition analysis The new channel New paradigms New system creation Discussion. Competition Analysis.

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Chapter 2

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  1. Chapter 2 Preparing the Online Business

  2. Agenda • Competition analysis • The new channel • New paradigms • New system creation • Discussion

  3. Agenda • Competition analysis • The new channel • New paradigms • New system creation • Discussion

  4. Competition Analysis • Identify and investigate your competitors on the web • Conducting business • Contacting customers • Collect information • Survey • Purchase (Dun & Bradstreet) • Research & development (patents) • Develop strategies - exploit competitors’ weakness and undermine their strength

  5. Agenda • Competition analysis • The new channel • New paradigms • New system creation • Discussion

  6. The New Channel • Old channels: linear • Face-to-face • Mail • Phone • New channel: direct contact between customers and every partner in value chain • Internet • Channel conflict

  7. Channel Conflicts • Clear market segmentation for all channel partners: decide who sells what to whom • Solutions • Market check • Channel strategy: reconstructing the value chain (selling products and providing service supports) • Conflict documentation • Time limit

  8. Agenda • Competition analysis • The new channel • New paradigms • New system creation • Discussion

  9. New Paradigms • One-to-one enterprise (mass customization) • Dynamic trade: Waverly Deutsch of Forrester Research “ leveraging technology to satisfy current demand with customized response” • Buyer-selected not seller-selected • Market decides the price • Added value: services • More fast and exact production • Customers’ preferences database

  10. Business Process Re-engineeringBPR • Proposed by James Champy and Michael Hammer • BPR • Question existing processes, rules and structures • Replaces the old ones with completely new processes, rules and structures • Increase the revenues or effectiveness by factors

  11. Business Process Re-engineeringBPR • Customer – centric way • Hyperarchical organization structure • Reorganization • Employee • Structure • Combination • Example • Just in time • Manufacturing resources planning systems • Material requirement planning systems

  12. Agenda • Competition analysis • The new channel • New paradigms • New system creation • Discussion

  13. New System Creation • Analysis • Plan • Design • Development • Implementation strategies

  14. Analysis • Product identification • Soft goods • Software or information • Sales and distribution channel • Hard goods • Digitizing the value chain and orders • Service providers • Translation or advertising • IT evaluation • In house or outsource or combination

  15. Analysis • Goals • Lowest product price • Highest service • Cost reduction • Sales • Location • Own internet connection • ISP

  16. Analysis • Shopping • Ease to use • Attractive • Customer profile • Tracking visits & navigation • Customer database • Public relation • Advertise and promote

  17. Analysis • Payment • Methods • Security • Laws • National • International • Culture

  18. Plan • E-business strategy in enterprise strategy • Which portion of the business • Business partners considerations • Channel conflict • Management & employee preparation • Effective marketing Campaign

  19. Plan • Performance review method • Services & products fit into customer’s need and expectation • Information Technology • E-mail, Intranet, Extranet, hardware, software • Heterogeneous systems architectures • System integration (new and old ones) • Back up plan (web server, connection) • Security plan • Project team

  20. Design • Process requirements • Web design: strategy & creativity • Security • Customer database • Marketing techniques

  21. Development • IT selection: hardware, software • Methods • In- house • Outsource • Combination

  22. Implementation Strategies • Management involvement • Plan for constant change • Pilot • Test (bugs, errors) • Feedback (performance) • Scalability • Integration

  23. Implementation Strategies • Training, maintenance and support • Measure productivity • Prepare for resistance • Company culture and personal culture • Start from e-mail

  24. Agenda • Competition analysis • The new channel • New paradigms • New system creation • Discussion

  25. Discussion - I • What kind of impact will be on the old traditional business due to dynamic trading? • Is it necessary to conduct a business re-engineering before implementing an e-business or any new way of doing business?

  26. Discussion - II • What are the differences between the training of employees in the old systems and e-business systems? • What are the differences between the security consideration in the old systems and e-business systems? • Can you improve the development steps in creation of new e-business?

  27. Points to Remember • Competition analysis • The new channel • New paradigms • New system creation • Discussion

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