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Strategic Planning

Strategic Planning. Technology Strategy. Business Strategy. Therefore, MIS folks must understand business, and Management must understand MIS. A1 A2. Q2 Q1. Cost. Cost. IT Capital Cost. Q =1000 Q = 1000. T1 T2. Labor. Size. Size. Production function. Transaction cost.

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Strategic Planning

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  1. Strategic Planning Technology Strategy Business Strategy Therefore, MIS folks must understand business, and Management must understand MIS

  2. A1 A2 Q2 Q1 Cost Cost IT Capital Cost Q =1000 Q = 1000 T1 T2 Labor Size Size Production function Transaction cost Agency administration cost Economic Effects of IT

  3. eBusiness: Trends and Definitions “In the short run, all change is overestimated, but in the long run, the effects of change are always underestimated.” (Arthur C. Clarke)

  4. Time to Reach 50Mil People Years

  5. Facts and FiguresOnline Purchases B2B: 80% $Billion

  6. Common Failure Success and Failure Rates of etail and Dotcom companies %

  7. Book Value:Market Value WHY???

  8. Definitions • Internet • Intranet • Extranet • World Wide Web • Packet-Switching

  9. What is the Internet? Customer/ Supplier Network Intranet Company Network YOU Extranet EDI Customer/ Supplier Network Packet Switching Network Customer/ Supplier Network Internet

  10. eBusiness Myths • Everyone is Doing It! • It’s Easy! • It’s Cheap! • It’s Lucrative! • The Internet Levels the Playing Field • Intermediaries Go Away

  11. eBusiness Myths • Mass Marketing is Over • It’s the Domain of Computers • Product Commoditization is Key • It’s a Fad (the NASDAQ collapse proves it!) • It’s ordering on the Web (B2C) • One World, One Web

  12. Nine eBusiness Rules • Technology is now a driver of business strategy • Controlling information flows is more powerful than controlling product flows • Inability to overthrow outdated business designs leads to failure

  13. Nine eBusiness Rules • New business designs must create flexibility • eBusiness enables organizations to listen to customers • Use technology to innovate and enhance the product experience

  14. Nine eBusiness Rules • Reconfigurable ebusiness communities will be used to meet customer needs • Strong leadership is imperative! • Long-Term Success is a thing of the past (adapted from Kalakota and Robinson, 1999)

  15. eBusiness Trends • Increased Speed of Service • Self-Service • Integrated Solutions • Sales and Service Convergence • Ease of Use

  16. eBusiness Trends • Flexible Fulfillment • Effective Outsourcing • Process Visibility

  17. eBusiness Trends • Integration, Integration, Integration!

  18. Trend Commonalities • Efficiency • Effectiveness • Relationship Management • Integration • Opportunities for Creativity!

  19. Traditional vs New Economy

  20. Traditional vs New Economy (Adapted from BusinessWeek, Aug.21, 2000)

  21. Definitions • B2C (Amazon) • B2B (Freemarkets) • C2B (Priceline) • C2C (eBay, eBid, Napster) • B2E (Mellon) • E2E • G2B, B2G, C2G

  22. OODA • Observe • Orient • Decide • Act

  23. What Really Is eBusiness??

  24. eBusiness vs eCommerce • eCommerce: "Buying and selling over digital media“ • eBusiness: "e-Business is the complex fusion of business processes, enterprise applications, and organizational structure necessary to create a high-performance business model." (Kalakota and Robinson, 1999)

  25. The Dimensions of E-Commerce Source: Choi et al. (1997), p. 18.

  26. eBusiness Opportunities • Supply Chain Efficiency • Decreased Overhead • Reduced Transaction Costs • Market Efficiencies • Increased Inventory Turns • New Markets • Increased Revenues

  27. eBusiness Opportunities • Better Customer Experiences • Community • Customization • Personalization • Entertainment • Access

  28. eBusiness Opportunities • Efficient Markets • Perfect Information • Economic Efficiency • Elimination of Boundaries • Reduced Transaction Costs

  29. eBusiness Is: • Supply Chain Integration Supply Chain Management E R P Intranet Extranet Internet Customers Suppliers EDI EDI The Organization

  30. Web Pages • “Stickiness” • Design • Technical Aspects • Local vs Global

  31. Visibility • Identification of materials as they move through the system • Visibility of suppliers’ production processes • Visibility through to the customer • Identification of where the information is!

  32. Leadership Traits • Passion • Make the dream clear • Speed • Stay ahead of the curve • Humility • You must be willing to explain yourself • Discovery • The future path must be defined (Citrin & Neff, 2000)

  33. Leadership Capabilities • Lead By Example • Develop Solid Business Strategies • Build Great Management Teams • Inspire Employees • Flexibility and Proactive Management • Reward Performance (Citrin & Neff, 2000)

  34. New Leadership Capabilities • Obsessive Focus on Customers • Build Cross-Functional Organizations • Manage with a Business Model (not a Strategic Plan) • Promote the Business Model • Foster Risk-Takers in the Company • Work Extremely Hard (Citrin & Neff, 2000)

  35. The eBusiness Panorama Convergence Industry Transformation Business Value Value-Chain Integration Strategic Change Channel Enhancement Leverage of eBusiness (Deise et al, 2000)

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