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Chapter 5 E-business Strategy

Chapter 5 E-business Strategy. Learning objectives. Follow an appropriate strategy process model for e-business; Apply tools to generate and select e-business strategies; Outline alternative strategic approaches to achieve e-business. Issues for managers.

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Chapter 5 E-business Strategy

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  1. Chapter 5E-business Strategy

  2. Learning objectives • Follow an appropriate strategy process model for e-business; • Apply tools to generate and select e-business strategies; • Outline alternative strategic approaches to achieve e-business.

  3. Issues for managers • How does e-business strategy differ from traditional business strategy? • How should we integrate e-business strategy with existing business and IS strategy? • How should we evaluate our investment priorities and returns from e-business?

  4. ‘The key question is not whether to deploy Internet technology – companies have no choice if they want to stay competitive – but how to deploy it.’ Michael Porter on the Internet Porter, M. (2001) Strategy and the Internet, Harvard Business Review, March 2001, 62–78.

  5. Different forms of organizational strategy Figure 5.1 Different forms of organizational strategy

  6. Relationship between e-business strategy and other strategies Figure 5.2 Relationship between e-business strategy and other strategies

  7. A generic strategy process model Figure 5.3A generic strategy process model

  8. Dynamic e-business strategy model Figure 5.4 Dynamic e-business strategy model Source: Adapted from description in Kalakota and Robinson (2000)

  9. Elements of strategic situation analysis for the e-business Figure 5.5Elements of strategic situation analysis for the e-business

  10. What happens where there is no e-business strategy? • Missed opportunities for additional sales on the sell-side and more efficient purchasing on the buy-side • Fall behind competitors in delivering online services – may become difficult to catch up, e.g. Tesco, Dell • Poor customer experience from poorly integrated channels

  11. Adoption steps of e-business services Figure 5.6Adoption steps of e-business services

  12. Summary applications portfolio analysis for the B2B Company Figure 5.7Summary applications portfolio analysis for The B2B Company

  13. SWOT analysis for the B2B company Figure 5.8SWOT analysis for The B2B Company

  14. Customer demand for e-marketing services for The B2B Company Figure 5.9Customer demand for e-marketing services for The B2B Company

  15. Competitive threats acting on the e-business Figure 5.10Competitive threats acting on the e-business

  16. Threat ofsubstitutes Porter’s five forces

  17. Activity – Impact of Internet • For one of the industries below, assess how the Internet has changed the competitive forces, e.g. has it increased or decreased power of suppliers and customers? • Industries: • Banking • Supermarkets • Oil industry • Rail industry

  18. Elements of strategic objective setting for the e-business Figure 5.11 Elements of strategic objective setting for the e-business

  19. Direct and indirect Internet contributions for fast growth companies in the US Figure 5.12 Direct and indirect Internet contributions for fast-growth companies in the USA Source: PricewaterhouseCoopers (2000)

  20. Grid of product suitability against market adoption for transactional e-commerce (online purchases) Figure 5.13Grid of product suitability against market adoption for transactional e-commerce (online purchases)

  21. Elements of strategy definition for the e-business Figure 5.14 Elements of strategy definition for the e-business

  22. Strategic options for a company in relation to the importance of the Internet as a channel Figure 5.15 Strategic options for a company in relation to the importance of the Internet as a channel

  23. Assessment of risk for market and product development for the B2B company Figure 5.16Assessment of risk for market and product development for The B2B Company

  24. New product development – Smile online banking (www.smile.co.uk)

  25. Dabs.com (www.dabs.com) Figure 5.18 Dabs.com (www.dabs.com)

  26. Elements of strategy implementation for the e-business Figure 5.19Elements of strategy implementation for the e-business

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