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Task 2 .2: MARKET MODULE CONCEPT. e-Volution II - Roadmap for e-business implementation in Extended Enterprises. Mr. Roberto Citarella, UNISA Innova Rome , 13 May 2004. MARKET MODULE CONCEPT. PRELIMINARY OT ANALYSIS
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Task 2.2: MARKET MODULE CONCEPT e-Volution II - Roadmap for e-business implementation in Extended Enterprises Mr. Roberto Citarella, UNISA Innova Rome, 13May 2004
MARKET MODULE CONCEPT • PRELIMINARY OTANALYSIS • - Product and Market Assessment- Purchasing criteria analysis- Competitors analysis- Comparison analysis- Influence of e-business on the EE market • 2. OTANALYSIS FOCUSED ON E-SOLUTIONS • - E-sales • - E-procurement
Strategy Development Project Description Project Implementation and Results evaluation Situation Analysis Final Summary Internal Analysis External Analysis 1. Assess Products and markets Summary of the analysis 2. Analyse Purchasing Criteria Check List for Situation Analysis 3. Competitors analysis 4. Comparison with the competitor 5. E-business impact analysis on the market and the EE MARKET ANALYSIS: preliminary approach • P/Massessment, by using Market segmentation analysis and Portfolio matrix; • Purchasing criteria analysis guide customers in their choice during the purchasing process. Theyare identified and prioritised and then assessed by managers who identify the internal value creating processes that most heavily influences them. • This activity aims to describe the most important competitors and gain an understanding of their strengths and weaknesses, compared to the EE under analysis. • The qualitative comparison with the previous analysed competitors, using charts and graphics in order to support the manager to recognise the areas on which improving actions have to be taken. • This step aims to provide understanding about the O.T. that e-business represents for the market environment and for the specific EE. These activities are designed in two step: gathering detailed information together with OT identification and description.
Product and Market assessment P/M area attractiveness • “E” assessment of : • P/M area • Competitive position Matrix portfolio assessment Financial data in the P/M table Product Market table Competitive position in P/M area • Contribution margin analysis • Total assessment • Matrix representation • P/M area choice • Product definition • Market definition Internediate SWOT analysis • SWOT item identification
P/M area attractiveness • “E” assessment of : • P/M area • Competitive position Matrix portfolio assessment Financial data in the P/M table Product Market table Internediate SWOT analysis Competitive position in P/M area • SWOT item identification • Contribution margin analysis • Total assessment • Matrix representation • P/M area choice • Product definition • Market definition PRODUCT – MARKET MATRIX IDENTIFICATION Product and Market assessment
P/M area attractiveness • “E” assessment of : • P/M area • Competitive position Matrix portfolio assessment Financial data in the P/M table Product Market table Internediate SWOT analysis Competitive position in P/M area • SWOT items identification • Contribution margin analysis • Total assessment • Matrix representation • P/M area choice • Product definition • Market definition Product and Market assessment • The values of this matrix will influence the following assessment of the market attractiveness, providing automatic default values for filling in the P/M attractiveness table; • Future financial data are foreseen by using Neural Network algorithm; • TURNOVER • CONTRIBUTION MARGIN • CONTRIBUTION RATIO
P/M area attractiveness • “E” assessment of : • P/M area • Competitive position Matrix portfolio assessment Financial data in the P/M table Product Market table Internediate SWOT analysis Competitive position in P/M area • SWOT items identification • Contribution margin analysis • Total assessment • Matrix representation • P/M area choice • Product definition • Market definition PiLi Pi I = Product and Market assessment • 0. Definition of the scale used on the two axis of the matrix (Attractiveness e Competitive position) • Choice of the most important factors related with the Attractiveness and Competitive position • 2. Evaluation of factors relevance (weighting phase - Pi -) for the Attractiveness and competitive position of each P/M areas • 3. Evaluation of the level (Li) for each analysed factors (Qualitative assessment of predefined questions) • 4. Total assessment determined by Attractiveness and Competitive position index for the specific P/M area, according to the following formula
P/M area attractiveness • “E” assessment of : • P/M area • Competitive position Matrix portfolio assessment Financial data in the P/M table Product Market table Internediate SWOT analysis Competitive position in P/M area • SWOT items identification • Contribution margin analysis • Total assessment • Matrix representation • P/M area choice • Product definition • Market definition M L H H M H M L M H M L M M M M PiLi Pi I = Product and Market assessment P/M ATTRACTIVENESS TABLE COMPETITIVE POSITION TABLE Total evaluation for each P/M areas
P/M area attractiveness • “E” assessment of : • P/M area • Competitive position Matrix portfolio assessment Financial data in the P/M table Product Market table Internediate SWOT analysis Competitive position in P/M area • Contribution margin analysis • Total assessment • Matrix representation • P/M area choice • Product definition • Market definition Product and Market assessment H = High M = Medium L = Low for qualitative answer. Graduation of influence of e-business on attractiveness and EE position on the specific P/M area • SWOT items identification The answers influence directly the position of the second bubble in the following Matrix representation. The 2nd bubble provide a clear picture of the future tendency
P/M area attractiveness • “E” assessment of : • P/M area • Competitive position Matrix portfolio assessment Financial data in the P/M table Product Market table Internediate SWOT analysis Competitive position in P/M area • SWOT items identification • Contribution margin analysis • Total assessment • Matrix representation • P/M area choice • Product definition • Market definition Product and Market assessment The position of the bubbles in the Matrix quadrants influence the P/M areas choice. High 2nd priority 2nd priority 1.st priority First P/M area P/M area attractiveness Second P/M area Not a priority Not a priority 3rd priority 3rd priority Low Weak Strong EE position in the P/M area
Purchasing criteria analysis 1/4 • Gather information about customers' purchasing criteria, and about the way in which your organisation accomplish them; • Internal workshop by Marketing department • Direct or phone interview • Market research • Research results documentation; • Assess how your main competitors satisfy customers' purchasing criteria and benchmarking; • Conclusion: EE’s SWOT assessment according to the investigation of consumers' purchasing criteria Competitors Purchasing criteria analysis EE Purchasing criteria analysis FINAL SUMMARY Benchmarking between the EE criteria and the competitor n°1 for each specific criterion. Purchasing criteria prioritised Value creating activities’ identification Performance assessment INTERMEDIATE SWOT ANALYSIS • Production • Distribution • ….. • Product quality • Delivery precision • … • Comments • e-solution id. • Qualitative assessment of each internal value creating activities
1. Purchasing Criteria identified & prioritised 2. Value creating activites identification 3. Performance assessment 4. Cause description 5. E-solution contribution Purchasing criteria analysis 2/4
1. Purchasing Criteria identified & prioritised 2. Performance assessment 3. Cause description 4. E-solution contribution Purchasing criteria analysis 3/4 TEMPLATE FOR COMPETITOR ANALYSIS
Purchasing criteria analysis 4/4 Summary: the EE vs competitors These qualitative values are picked from the previously analysed tables.
Competitor analysis 1/2 Competitor's position in the market and competitive advantages Assessment of competitor's value creating activities – S.W. Description of competitors’ current e-solution Intermediate OT Analysis • P/M areas served by the competitor • Competitor's market position and market share • Information (one way) • Communication (two way) • Trade/e-Commerce • Business Integration • Based on the description and the assessment of main competitors – describe intermediate OT elements
Competitor analysis 2/2 Description of competitors’ current e-solution for each value creating activities
Comparison with competitors 1/3 Extended Enterprise Competitors • Summary assessment of how the EE fulfils the customers' purchasing criteria in comparison with its competitors; • Summary assessment of EE’s productivity compared to those of the direct competitors; • Assessment of EE’s current e-solutions (if any) compared with its competitors‘; • Description of strengths, weaknesses, opportunities and threats based on the summaries above. • Purchasing criteria analysis • Value creating act. analysis • E-solution analysis FINAL SUMMARY Benchmarking between the EE and the competitors INTERMEDIATE SWOT ANALYSIS Purchasing criteria comparison
Primary activities Support activities Comparison with competitors (Value creating act. Analysis) 2/3
Comparison with competitors (e-solution) 3/3 • Examples of e-solution • Information (one way) • Communication (two way) • Trade/e-Commerce • Business Integration
E-business impact on the EE market • DESCRIPTION OF OPPORTUNITY • Opportunity definition • Improvement of current business /new business model • Improvement the Opportunity create in term of cost, revenues, market situation • DESCRIPTION OF THREATS • Threats definition • Threats description • Description of how this threat may influence costs, revenues or market position O.T description of EE partners Information gathering • Specific e-business related survey (MM help on line - CSP); • External link by using the Information Selector (CSP - WWW) • EE networks • Trade association
Suppliers Analysis IN CASE OF E-PROCUREMENT ANALYSIS Market requirements Customers Analysis Trend Analysis Competition Analysis Products/services Analysis TREND FINDING TREND FILTERING TREND FORMATTING TREND FOCUSING OT ANALYSIS (based on the ranking algorithm): STEPS and STAGES Three kind of analysis allowed:1. E-SALES 2. E-PROCUREMENT Each analysis is divided in steps and each step is divided in stages. 1. Collecting data2. Ordering data table3. Charts and Histograms4. Ranking Algorithm
Threats • Start from trend analysis: • Country H (rank=12) • Customers analysis: • Customers D (rank=15) • Customers K (rank=22) • Customers E (rank=26) • Opportunities • Start from trend analysis: • Country C (rank=60) • Customer analysis: • Customers G (rank=33) • Customers M (rank=30) • Customers H (rank=29) • Competitors analysis: • Competitor W (rank=10) • Competitor B (rank=13) • Competitor A (rank=22) • Product analysis: • Product T (rank=48) • Product J (rank=37) • Product S (rank=32) • Competitors analysis: • Competitor E (rank=43) • Competitor J (rank=36) • Competitor Q (rank=35) • Product analysis: • Product O (rank=15) • Product C (rank=26) • Product R (rank=27) OT ANALYSIS (based on the ranking algorithm) :FINAL SCENARIOS • At the end of the Market Analysis, four final classifications generated by the system concerning the four stages of analysis (TREND, CUSTOMERS/SUPPLIERS, COMPETITORS, PRODUCTS AND SERVICES). • Possibility of choosing the stage considered the most interesting to start the final scenario from. • Automatic alignment for each of the three elements of other stages having the highest rank for the country/region of the segment selected. OUTPUT OPPORTUNITIES AND THREATS QUANTITATIVE PORTFOLIO GENERATION