1 / 30

Chapter Four

Chapter Four. Thinking E-Business Design: More Than Technology. Introduction. 3 interlocking layers of e-business e-Business Design What business design can make your customers’ shopping and service experiences unique and memorable?

scarlet-clemons
Download Presentation

Chapter Four

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Chapter Four Thinking E-Business Design: More Than Technology

  2. Introduction • 3 interlocking layers of e-business • e-Business Design • What business design can make your customers’ shopping and service experiences unique and memorable? • What capabilities and competencies create rich customer experiences? • In the quest for efficiency, how do you structure your organization for efficiency? • e-Business App Infrastructure • Supports design by providing s/w functionality • Strong app infrastructure foundation necessary from which to deploy e-business apps www.ebstrategy.com

  3. Introduction • e-Business Infrastructure • structural foundation supporting the app layer • is a balance of structure and flexibility • harnesses, safeguards, manages, and permits use of information in ways that are fast, safe and simple • comprises the tech, utilities, and services needed for uninterrupted flow of e-commerce www.ebstrategy.com

  4. Business Model Scope Customer Selection Value Creation Strategic Control Organizational Systems E-Business Design E-Business Infrastructure CRM e-Procurement ERP Supply Chain Financials Selling Chain Business Intelligence Portals Servers Databases Middleware Routers Site Security Data Security Transaction Security Scalability Reliability Hosting Storage E-Business InfoStructure 3 interlocking layers of e-business www.ebstrategy.com

  5. The Race to Create Novel e-Business Designs • Getting it right the first time very important • right strategy accelerates market penetration and minimizes cost • wrong strategy can cause years of repercussion • Truly great companies use state-of-the-art e-commerce processes to transform themselves • redefine value for customers • build powerful e-business designs to outperform competition • understand customer priorities www.ebstrategy.com

  6. The Race to Create Novel e-Business Designs • Focus no longer limited to process improvement; focus of change initiatives shifted to business redesign • Retail drug industry • Success depends on how quickly a company can formulate novel business designs and adapt them to its markets www.ebstrategy.com

  7. Step 1: Self Diagnosis • Assess impact of recent customer, business and technological trends • Has the recent wave of tech innovation created new ways of doing business and reorganizing priorities within your firm? • Is your company responding to changing customer expectations? • Is your company willing to question and change countless industry assumptions to take advantage of new opportunities while also preserving investments in people, apps and data? • Is your company successful at lowering operating costs while making complex business apps adaptive and flexible to change under the relentless pressure of time to market? www.ebstrategy.com

  8. Step 1: Self Diagnosis • Innovator or market leader: All answers yes • Early adopter or visionary: Most answers yes • Charles Schwab • Silent majority: Few answers yes • Pragmatists, Old-guard Conservatives, and Die-hard Skeptics www.ebstrategy.com

  9. Step 2: Reverse the Value Chain • Greatest challenge in e-business: linking emerging tech to new business design • Managers find creating new business designs difficult with emerging technologies and customer needs • trained to concentrate on improving products, increasing market share, and growing revenues • distinction between products and services blur in e-business world www.ebstrategy.com

  10. Step 2: Reverse the Value Chain • Successful companies invent value, not just add value • outside in vs. inside out • customer requirement important in outside in approach • Starbucks invented value where traditional companies did not by creating business around gourmet coffee • Outside-in, customer centric approach essential in times of great structural transition in economy www.ebstrategy.com

  11. Step 2: Reverse the Value Chain Traditional Business Design In-house Core Competencies Rigid Infrastructure/ Processes Products/ Services Channels Customers e-Business Design Flexible Infrastructure/ Processes Outsourced/ In-house Core Competencies Customers Needs Integrated Channels Products/ Services www.ebstrategy.com

  12. Step 3: Choose a Focus • Service excellence • Delivering what customers want with hassle-free service and superior value • Operational excellence • Delivering high-quality products quickly, error free, and for reasonable price • Continuous-innovation excellence • Delivering products and services that push performance boundaries and delight customers www.ebstrategy.com

  13. Service Excellence www.ebstrategy.com

  14. Service Excellence • Involves selecting a few high-value customer niches and then making a concerted effort to serve them well • Requires commitment to CRM • Operating principles of service excellence • prepare for the unforeseen • gather and maintain all up-to-date, accurate business and economic information you need, where and when you need it • user customer contact mgmt • develop corporate philosophy about customer service www.ebstrategy.com

  15. Operational Excellence www.ebstrategy.com

  16. Operational Excellence • Involves providing lowest-cost goods and services possible while simultaneously minimizing problems for customer • Key principles • efficient leveraging of assets • mgmt of efficient transactions • mgmt of sales intelligence • dedication to measurement systems • mgmt of customer expectations www.ebstrategy.com

  17. Continuous-Innovation Excellence www.ebstrategy.com

  18. Continuous-Innovation Excellence • Involves not only providing best-possible products and services but also offering customer more exciting features and benefits than competitor • Microsoft, Sun Microsystems and Nike • Downfall of AT&T, Eastman Kodak, Sears and GM due to lack of technological innovation • Key principles • risk-oriented mgmt style • growth by mergers and acquisitions • market-education style • encouraging innovation www.ebstrategy.com

  19. Step 4: Execute Flawlessly • How can you move from where you are today to where you want to be? • How do you integrate and tailor your legacy infrastructure to meet new e-business requirements? • Execs must be willing to cut losses and abandon important current projects that do not support the goals of the e-business design www.ebstrategy.com

  20. Service Excellence at American Express • Business transformation of the mid 1990s resulted in new e-business design concentrating on mgmt of customer relationships • In era of limited personal time, customers concerned about quality service, esp. its simplicity, flexibility and consistency • Combine detailed customer knowledge with service flexibility • CustomExtras enables custom discounts and other deals directly on card members’ bills • Investing $1 billion annually in the construction of a sophisticated service infrastructure • Within financial services industry, this can provide means to develop competitive advantage and raise barriers to entry www.ebstrategy.com

  21. Service Excellence at American Express The Way It Was The New Way Online Travel Services Travel Services Credit Cards Membership Rewards Integrated Financial Services Financial Planning Life Path Planning Private Banking Banking www.ebstrategy.com

  22. Operational Excellence at Dell • Build-to-order e-business design • low-cost manufacturing and fast-cycle product development • Integration of customer demand from the direct-sales channel with back-end supply chain • enables cost-effective selling directly to customers, bypassing resellers and their markups • Computer distributors that once controlled PC business went bankrupt because of Dell’s direct sales model • CHS Electronics, MicroAge, InaCom www.ebstrategy.com

  23. Dell launches an FTP site for customers to download files June www.dell.com site launched with technical support content and e-mail gateway Dell Online History • November • $3 Million/day • 36 countries • 200+ Premier Pgs. • 400k users/wk Late 1980s 1994 1995 1996 1997 1998 January $1 Million/day February Marketing content added to site July • Dell starts selling systems online • 80,000 online user sessions per week • Focus efforts on Corporate customer • $4 M/day • Focus on value- added services March • Asian/European Internet site launched • 225,000 online user sessions per week OctoberConfigurator generating online quotes is launched www.ebstrategy.com

  24. The Dell eCommerce System Integrated customer experience Value proposition Shopping and buying Service and support Loyalty/ relationship Order status Premier services Product services Price Direct model Dell Configuration and shopping Trouble- shooting Electronic orders Personalized experience Value-added services www.ebstrategy.com

  25. Continuous Innovation at Cisco Systems • At Cisco, business design centers on the core belief in what continuous innovation demands from organizations attempting it • build on change, not stability • organize around networks, not a rigid hierarchy based on interdependencies of partners - not self-sufficiency • construct operations on tech advantage, not old-fashioned bricks n mortar • Continuous innovation via acquisitions • Acquisitions cornerstone of its business strategy, to survive larger competitors • Identify companies that help enhance product line and keep up with changing marketplace • Make sure the acquisition is assimilated quickly • Extended Enterprise model to support the innovation-excellence model • Focus on core competencies and form partnerships with suppliers that provide other key capabilities www.ebstrategy.com

  26. “Full Service” Internet Commerce on CCO Pricing Configuration Order Placement Order Status Service Order Invoice www.ebstrategy.com

  27. Installation and Configuration Documentation Operation Support Software Library Problem Detection:CiscoWorks Problem Identification: Bug Navigator Problem Notification: Bug Alerts Problem Resolution: Open Forum, Troubleshooting Engine Reseller Care Cisco Connection Online www.ebstrategy.com

  28. Satisfaction 4.17 June 1998 Satisfaction 4.1 Total Logins/Month • Over 70% questions handled on line • Dramatic growth—over 1.1million logins per month • 25% higher customer satisfaction • 98% accurate, on-time repair shipments • Annual savings of $365 m • Headcount $75 m • Software download $250 m • Document publication $40 m Satisfaction 3.4 Satisfaction 3.4 1995 1996 1997 1998 Customer Care Results www.ebstrategy.com

  29. Lessons from e-Business Design • Be customer focused • Value creation a continuous process • Transform business processes into digital form • Decentralize management but centralized coordination • Create an e-business app architecture addressing three critical requirements • interface • integration • innovation • Integrate but plan for continuous growth and change • start small • build on success • build, launch, learn www.ebstrategy.com

  30. E-Business Strategies, Inc. www.ebstrategy.com contact@ebstrategy.com 678-339-1236 x201 Fax - 678-339-9793

More Related