Pearson/Prentice Hall & Dr. Chen, Dr. Chen, Electronic Commerce Electronic Commerce Chapter 14 E-Commerce Strategy and Global EC
Mar 26, 2015
Pearson/Prentice Hall & Dr. Chen, Dr. Chen, Electronic CommerceElectronic Commerce
Chapter 14E-Commerce Strategy
and Global EC
Pearson/Prentice Hall & Dr. Chen, Dr. Chen, Electronic CommerceElectronic Commerce
Learning Objectives
1. Describe the strategic planning process.2. Describe the purpose and content of a business plan.3. Understand how e-commerce impacts the strategic
planning process.4. Understand how to formulate, justify, and prioritize EC
applications. 5. Describe strategy implementation and assessment,
including the use of metrics.6. Evaluate the issues involved in global EC.7. Analyze the impact of EC on small and medium-sized
businesses.
Pearson/Prentice Hall & Dr. Chen, Dr. Chen, Electronic CommerceElectronic Commerce
Planning is everything ...
Products,Services
Customers,market,
competition
Vision
guide
Strategy
create
develop
Tactic
N
Pearson/Prentice Hall & Dr. Chen, Dr. Chen, Electronic CommerceElectronic Commerce
14.1 Organizational Strategy: Concepts and Overview
• Strategy: A broad-based formula for how a business is going to compete, what its goals should be, and what plans and policies will be needed to carry out those goals
• Strategy is also about making strong decisions about what not to do
Pearson/Prentice Hall & Dr. Chen, Dr. Chen, Electronic CommerceElectronic Commerce
Organizational Strategy (cont.)
• Profitability and economic value is determined by establishing a unique value proposition
• Strategy is focused on questions about:– organizational fit– profitability– value
Pearson/Prentice Hall & Dr. Chen, Dr. Chen, Electronic CommerceElectronic Commerce
Organizational Strategy: Concepts and Overview
• Strategy and the Web Environment– e-commerce strategy (e-strategy)
The formulation and execution of a vision of how a new or existing company intends to do business electronically
Pearson/Prentice Hall & Dr. Chen, Dr. Chen, Electronic CommerceElectronic Commerce
Organizational Strategy: Concepts and Overview
• Strategy and the Web Environment– strategic information systems planning
(SISP)
A process for developing a strategy and plans for aligning information systems (including e-commerce applications) with the business strategies of an organization
Pearson/Prentice Hall & Dr. Chen, Dr. Chen, Electronic CommerceElectronic Commerce
StrategyInitiation
(section 14.4)
StrategyInitiation
(section 14.4)
StrategyAssessment(section 14.7)
StrategyAssessment(section 14.7)
StrategyImplementation(section 14.6)
StrategyImplementation(section 14.6)
StrategyFormulation
(section 14.5)
StrategyFormulation
(section 14.5)
Exhibit 14.1 The Strategic planning Process
Organizational Strategy
Pearson/Prentice Hall & Dr. Chen, Dr. Chen, Electronic CommerceElectronic Commerce
Systems Development Life Cycle (SDLC)
Systems ImplementationProduct:
Operational System
Systems ImplementationProduct:
Operational System
Systems InvestigationProduct:
Feasibility Study
Systems InvestigationProduct:
Feasibility Study
Systems AnalysisProduct:
Functional Requirements
Systems AnalysisProduct:
Functional Requirements
Systems DesignProduct:
System Specifications
Systems DesignProduct:
System Specifications
Systems MaintenanceProduct:
Improved System
Systems MaintenanceProduct:
Improved System
Understand theBusinessProblem orOpportunity
Develop anInformationSystemSolution
Implementthe InformationSystemSolution
Pearson/Prentice Hall & Dr. Chen, Dr. Chen, Electronic CommerceElectronic Commerce
Strategic planning process
• Strategy initiation: The initial phase of strategic planning in which the organization examines itself and its environment
– Value proposition: The benefit that a company’s products or services provide to customers; the consumer need that is being fulfilled
Pearson/Prentice Hall & Dr. Chen, Dr. Chen, Electronic CommerceElectronic Commerce
Value propositions1. Business model
2. Core competencies
competition structure/culture
Strategic intent
Finance M
anagemen
t Process
H/
R Technolog
y
… Strategy
•Positioning on product/market
•Differentiation/choice of competitive advantage
•Competitive postureIndustry characteristics ,
Market growth ,Demand characteristics ,
Barrier of entry , etc.
fulfill
IT Role?N
Consistent
Essentials for a Successful Enterprise
Analysis(Porter, SWOT)
Corporate strategy
Business strategy
Functional strategy
Business landscapeInternal/External
future positioning
Positioning
3. Execution
Pearson/Prentice Hall & Dr. Chen, Dr. Chen, Electronic CommerceElectronic Commerce
Strategic planning process (cont.)
• Outcomes from strategy initiation phase– Company analysis (including value
proposition)– Core competencies– Forecasts– Competitor (industry) analysis
Pearson/Prentice Hall & Dr. Chen, Dr. Chen, Electronic CommerceElectronic Commerce
Strategic planning process (cont.)
• Strategy formulation: The development of strategies to exploit opportunities and manage threats in the business environment in light of corporate strengths and weaknesses
• Specific activities and outcomes from strategy formulation phase:– Business opportunities– Cost-benefit analysis– Risk analysis, assessment, and management
Pearson/Prentice Hall & Dr. Chen, Dr. Chen, Electronic CommerceElectronic Commerce
Strategic planning process (cont.)
• Strategy implementation: The development of detailed, short-term plans for carrying out the projects agreed on in strategy formulation
• Specific activities and outcomes from strategy implementation phase:– Business planning– Resource allocation– Project management
Pearson/Prentice Hall & Dr. Chen, Dr. Chen, Electronic CommerceElectronic Commerce
Strategic planning process (cont.)
• Strategy assessment: The continuous evaluation of progress toward the organization’s strategic goals, resulting in corrective action and, if necessary, strategy reformulation
Specific measures called metrics are used to assess the progress of the strategy
Pearson/Prentice Hall & Dr. Chen, Dr. Chen, Electronic CommerceElectronic Commerce
Strategic planning tools
1. SWOT analysis: A methodology that surveys external opportunities and threats and relates them to internal strengths and weaknesses
Pearson/Prentice Hall & Dr. Chen, Dr. Chen, Electronic CommerceElectronic Commerce
Strategic planning tools (cont.)
• 2. Competitor analysis grid: A strategic planning tool that highlights points of differentiation between competitors and the target firm
• 3. Scenario planning: A strategic planning methodology that generates plausible alternative futures to help decision makers identify actions that can be taken today to ensure success in the future
Pearson/Prentice Hall & Dr. Chen, Dr. Chen, Electronic CommerceElectronic Commerce
Strategic planning tools (cont.)
• 4. Balanced scorecard: An adaptive tool that assesses organizational progress toward strategic goals by measuring performance in a number of different areas
• 5. (extra) Return on investment (ROI): A ratio of required costs and perceived benefits of a project or an application
Pearson/Prentice Hall & Dr. Chen, Dr. Chen, Electronic CommerceElectronic Commerce
A Marketing Strategy –showing the 4 P’s of a Marketing Mix
PlaceProduct
Price Promotion
C
Pearson/Prentice Hall & Dr. Chen, Dr. Chen, Electronic CommerceElectronic Commerce
Overview of Marketing Strategy Planning Process
PlaceProduct
Price Promotion
C
External Market EnvironmentTechnologies Political and Legal Cultural and Social Economic
Narrowing down to focused strategy with quantitative and qualitative screening criteria
CustomersNeeds and other
SegmentingDimensions
CompanyObjectives
&Resources
CompetitorsCurrent
&Prospective
Segmentation &Positioning
Segmentation &Targeting
S.W.O.T.
Pearson/Prentice Hall & Dr. Chen, Dr. Chen, Electronic CommerceElectronic Commerce
14.2 Business Planning in E-Commerce
• business plan
A written document that identifies the company’s goals and outlines how the company intends to achieve those goals
Pearson/Prentice Hall & Dr. Chen, Dr. Chen, Electronic CommerceElectronic Commerce
Business Planning in E-Commerce
• Outline of a business plan– Executive Summary– Business Description– Operations Plan– Financial Plan– Marketing Plan– Competitor Analysis
Pearson/Prentice Hall & Dr. Chen, Dr. Chen, Electronic CommerceElectronic Commerce
Business Planning in E-Commerce
• Business Plan Fundamentals– Purposes for business plan
• To acquire funding• To acquire nonfinancial resources• To obtain a realistic approach to the business
• business caseA business plan for a new initiative or large, new project inside an existing organization
Pearson/Prentice Hall & Dr. Chen, Dr. Chen, Electronic CommerceElectronic Commerce
14.3 E-Commerce Strategy:Concepts and Overview
Pearson/Prentice Hall & Dr. Chen, Dr. Chen, Electronic CommerceElectronic Commerce
IT Planning: The Relationship Between Business, IS,and IT Strategies
Business Strategy
• Business Decisions • Objectives and Direction• Change
Supportsbusiness
Direction for business
IS Strategy
• Business Based• Demand Orientated• Application Focused
IT Strategy
• Activity Based• Supply Orientated• Technology Focused
Where is the business going andwhy
What is required
How it can be delivered
Needs andpriorities
InfrastructureAnd services
ITImpact and potential
Pearson/Prentice Hall & Dr. Chen, Dr. Chen, Electronic CommerceElectronic Commerce
14.4 E-Strategy Initiation
• Issues in E-Strategy Initiation– Be a First Mover or a Follower?– Born-on-the-Net or Move-to-the-Net?– Determining Scope– Have a Separate Online Company?– Have a Separate Online Brand?
Pearson/Prentice Hall & Dr. Chen, Dr. Chen, Electronic CommerceElectronic Commerce
When to Perform Activities
• First Movers
Advantages Disadvantages
•Build brand recognition•Control scarce resources•Establish networks•Early Economies-of-Scale
•Newer technology•Higher development costs•Reverse engineering by competitors
Pearson/Prentice Hall & Dr. Chen, Dr. Chen, Electronic CommerceElectronic Commerce
Winners vs. Losers• What separates winners from losers in creating
(ultimate) strategic competitive advantage is neither bleeding-edge technology nor “timing for market entry.”
• It is from “value innovation”
FirmFirmprice
utility
cost
Innovation ValueInnovation
ValueInnovation
align
Pearson/Prentice Hall & Dr. Chen, Dr. Chen, Electronic CommerceElectronic Commerce
14.5 E-Strategy Formulation
• Selecting EC Opportunities– Incorrect approaches to EC strategy selection:
1. Indiscriminately funding many projects and hoping for a few winners
2. Betting it all in a single, high-stakes initiative
3. “Trend-surfing”
– Productive approaches to EC strategy selection1. Problem-driven strategy
2. Technology-driven strategy
3. Market-driven strategy
4. E-business maturity model
Pearson/Prentice Hall & Dr. Chen, Dr. Chen, Electronic CommerceElectronic Commerce
E-Strategy Formulation
• Determining an Appropriate EC Application Portfolio Mix– The BCG model– An Internet portfolio map for selecting
applications
Pearson/Prentice Hall & Dr. Chen, Dr. Chen, Electronic CommerceElectronic Commerce
Sellproject
Sellproject
RejectprojectRejectproject
AdoptprojectAdoptproject
Redesignproject
Redesignproject
Company FitCompany Fit
Via
bil
ity
of
Pro
ject
Exhibit 14.6 Internet Portfolio Map
Low
High
High
E-Strategy Formulation
Pearson/Prentice Hall & Dr. Chen, Dr. Chen, Electronic CommerceElectronic Commerce
E-Strategy Formulation
• Risk Analysis and Management– e-commerce (EC) risk
The likelihood that a negative outcome will occur in the course of developing and operating an electronic commerce strategy
– Security issues
Pearson/Prentice Hall & Dr. Chen, Dr. Chen, Electronic CommerceElectronic Commerce
E-Strategy Formulation• Issues in Strategy Formulation
– How to handle channel conflict
– How to handle conflict between the off-line and online businesses
– Pricing strategy• Price comparison is easier
• Buyers sometimes set the price
• Online and off-line goods are priced differently
• Differentiated pricing can be a pricing strategy– versioning
Selling the same good, but with different selection and delivery characteristics
Pearson/Prentice Hall & Dr. Chen, Dr. Chen, Electronic CommerceElectronic Commerce
14.6 E-Strategy Implementation
• Create a Web Team– project champion
The person who ensures the EC project gets the time, attention, and resources required and defends the project from detractors at all times
• Start with a Pilot Project• Allocate Resources• Manage the Project
Pearson/Prentice Hall & Dr. Chen, Dr. Chen, Electronic CommerceElectronic Commerce
14.6 E-Strategy Implementation
• Strategy Implementation Issues– Application development– Partners’ strategy
• outsourcing
The use of an external vendor to provide all or part of the products and services that could be provided internally
Pearson/Prentice Hall & Dr. Chen, Dr. Chen, Electronic CommerceElectronic Commerce
EC Strategy Implementation Issues (cont.)
• Partners’ strategyOutsourcing: The use of a third-party vendor to provide all or part of the products and services that could be provided internally
• Two drivers
– focus on core business
– value shareholder
Pearson/Prentice Hall & Dr. Chen, Dr. Chen, Electronic CommerceElectronic Commerce
When to Outsourcing?
• Which IS activities are strategic to our company's business?
• Will outsourcing save us at least 15 percent? • Does our firm have access to the needed
technology and expertise?– If not, outsourcing may be the answer to acquiring
these resources.
• Does outsourcing increase our firm's flexibility?
Dr. Chen, Managing IT Reos. Thru Strategic Partnerships; A Portoflio Approach to IT Development TM -37
Pearson/Prentice Hall & Dr. Chen, Dr. Chen, Electronic CommerceElectronic Commerce
Going Offshore for IS Development • When the MIS organization uses contractor services, or
even builds its own data center in a distant land, it is engaged in offshoring, which is short for outsourcing offshore.
• The types of tasks that are outsourced are usually those that can be well-specified; however, nowadays, the functions sent offshore range from routine IT transactions to increasingly higher end, knowledge-based processes.
• Countries such as India, the Philippines, etc, offer “offshoring”, an alternative to in-house systems development
• It raises the issue of what to send offshore, and what to keep within your enterprise MIS organization.
Pearson/Prentice Hall & Dr. Chen, Dr. Chen, Electronic CommerceElectronic Commerce
Strategic Grid forDecisions on Outsourcing
Strategic Importance
Y
Y
N
N
Com
petitive Advantage
Pearson/Prentice Hall & Dr. Chen, Dr. Chen, Electronic CommerceElectronic Commerce
Strategic Importance
Y
Y
N
N
Com
petitive Advantage
Insourcing
StrategicAlliance
Outsourcing
Leverage(K-How to partners)
Strategic Grid forDecisions on Outsourcing
Pearson/Prentice Hall & Dr. Chen, Dr. Chen, Electronic CommerceElectronic Commerce
Summary: Factors driving outsourcing1. Cost savings2. Qualified IT staff are difficult to find and retain3. By bringing in outside expertise, management
needs to focus less on IS operations and more on the information itself.
4. Outsourcers are specialists, should understand how to manage IS staff more effectively.
5. Outsourcers may have larger IS resources that provide greater capacity on demand.
6. Outsourcing can help a company overcome inertia to consolidate data centers that could not be consolidated by an internal group, or following a merger or acquisition.
Pearson/Prentice Hall & Dr. Chen, Dr. Chen, Electronic CommerceElectronic Commerce
E-Strategy Implementation
• Business alliances and virtual corporationsvirtual corporation (VC)
– An organization composed of several business partners sharing costs and resources for the production or utilization of a product or service
– co-opetition
Two or more companies cooperate together on some activities for their mutual benefit, even while competing against each other in the marketplace
Pearson/Prentice Hall & Dr. Chen, Dr. Chen, Electronic CommerceElectronic Commerce
EC Strategy Implementation Issues (cont.)
A Virtual Corporation (VC) is an Organization Composed of several Business Partners that Uses
Information Technology to Link/Share People, Assets, Ideas, Costs, and Resources
for the purpose of producing a product or service.
Virtual Companies are Adaptable and Opportunity-Exploiting Organizations Providing World-Class
Excellence in Their Competencies and Technologies.
A Virtual Corporation (VC) is an Organization Composed of several Business Partners that Uses
Information Technology to Link/Share People, Assets, Ideas, Costs, and Resources
for the purpose of producing a product or service.
Virtual Companies are Adaptable and Opportunity-Exploiting Organizations Providing World-Class
Excellence in Their Competencies and Technologies.
Pearson/Prentice Hall & Dr. Chen, Dr. Chen, Electronic CommerceElectronic Commerce
SALES & MARKETING
COMPANY
FINANCE COMPANY
LOGISTICS
COMPANY
DESIGN
COMPANY
MANUFACTURING
COMPANY
VIRTUAL ORGANIZATION
CORE CORE COMPANYCOMPANY
TM -TM -4444
N
Pearson/Prentice Hall & Dr. Chen, Dr. Chen, Electronic CommerceElectronic Commerce
Characteristics of Virtual CorporationsCharacteristics of Virtual Corporations
Borderless
Opportunism
Adaptability
Trust-Based
Excellence
Technology
SixCharacteristics
of VirtualCompanies
NUtilization
Pearson/Prentice Hall & Dr. Chen, Dr. Chen, Electronic CommerceElectronic Commerce
E-Strategy Implementation
– Redesigning business processes• business process reengineering (BPR)
A methodology for conducting a comprehensive redesign of an enterprise’s processes
Pearson/Prentice Hall & Dr. Chen, Dr. Chen, Electronic CommerceElectronic Commerce
E-Strategy Implementation
– business process management (BPM)
Method for business restructuring that combines workflow systems and redesign methods; covers three process categories—people-to-people, systems-to-systems, and systems-to-people interactions
Pearson/Prentice Hall & Dr. Chen, Dr. Chen, Electronic CommerceElectronic Commerce
14.7 E-Strategy and Project Assessment
• The Objectives of Assessment– Measure the extent to which the EC strategy and
ensuing projects are delivering what they were supposed to deliver
– Determine if the EC strategy and projects are still viable in the current environment
– Reassess the initial strategy in order to learn from mistakes and improve future planning
– Identify failing projects as soon as possible and determine why they failed
Pearson/Prentice Hall & Dr. Chen, Dr. Chen, Electronic CommerceElectronic Commerce
E-Strategy and Project Assessment
• Measuring Results and Using Metrics– metric
A specific, measurable standard against which actual performance is compared
– corporate (business) performance management (CPM, BPM)
Advanced performance measuring and analysis approach that embraces planning and strategy
Pearson/Prentice Hall & Dr. Chen, Dr. Chen, Electronic CommerceElectronic Commerce
E-Strategy and Project Assessment
Pearson/Prentice Hall & Dr. Chen, Dr. Chen, Electronic CommerceElectronic Commerce
E-Strategy and Project Assessment
• Web analytics
The analysis of clickstream data to understand visitor behavior on a Web site
Pearson/Prentice Hall & Dr. Chen, Dr. Chen, Electronic CommerceElectronic Commerce
Exhibit 14.8 Blueprint of the Performance Dashboard (P.664)
Step One:Articulate Business
Strategy
Step One:Articulate Business
Strategy
Step Three:Devise MetricsStep Three:
Devise MetricsStep Four:
Link Metrics to leadingAnd lagging indicators
Step Four:Link Metrics to leadingAnd lagging indicators
Step Five:Calculate Current andTarget Performance
Step Five:Calculate Current andTarget Performance
Market opportunity•Opportunity•Competitive environment
Market opportunity•Opportunity•Competitive environment
Business Model•Unique value proportion?•Capabilities vs. competition
Business Model•Unique value proportion?•Capabilities vs. competition
Implementing and Branding•How to develop brand?•How to go to market?
Implementing and Branding•How to develop brand?•How to go to market?
Customer•How to acquire customers?•How will customers change?•How to improve the customer experience?
Customer•How to acquire customers?•How will customers change?•How to improve the customer experience?
Financial•Financial consequences in terms of revenue, profit, cost, and balance sheet?
Financial•Financial consequences in terms of revenue, profit, cost, and balance sheet?
Market Opportunity• Market size and growth• Average age and income•Competitor concentration
Market Opportunity• Market size and growth• Average age and income•Competitor concentration
Business Model•Customer perceived benefit•Exclusive partnerships•$ invested in technology vs. competition
Business Model•Customer perceived benefit•Exclusive partnerships•$ invested in technology vs. competition
Implementation•Customer brand awareness•System uptime percentage•Number of IT staff•% inaccurate orders
Implementation•Customer brand awareness•System uptime percentage•Number of IT staff•% inaccurate orders
Customer•Market share •Purchase/year•Success rate•Service requests/customers
Customer•Market share •Purchase/year•Success rate•Service requests/customers
Financial•Revenue•Profit•Earning per share•Debt to equity ratio
Financial•Revenue•Profit•Earning per share•Debt to equity ratio
•For each metric, determine the metrics that it affects and that affect it.•Map the linked set of•Metrics, indicating leading and lagging indicators.•Ensure that there is a balance between leading and lagging indicator.
•For each metric, determine the metrics that it affects and that affect it.•Map the linked set of•Metrics, indicating leading and lagging indicators.•Ensure that there is a balance between leading and lagging indicator.
•For each metric,calculate the levelof performance.•Determine target level required to meet outcomes described in Step Two.•Ensure that target are consistent with each other.
•For each metric,calculate the levelof performance.•Determine target level required to meet outcomes described in Step Two.•Ensure that target are consistent with each other.
Step Two:Translate Strategy
Into Desired Outcome
Step Two:Translate Strategy
Into Desired Outcome
De
fin
e g
oa
ls a
nd
va
lue
pro
po
sit
ion
De
velo
p r
eso
urc
e s
yste
m r
eq
uire
d t
o d
eliv
er
the
str
ate
gy
Pearson/Prentice Hall & Dr. Chen, Dr. Chen, Electronic CommerceElectronic Commerce
14.8 Global E-Commerce
• Benefits and Extent of Operations– The major advantage of EC is the ability to do
business at any time, from anywhere, and at a reasonable cost
Pearson/Prentice Hall & Dr. Chen, Dr. Chen, Electronic CommerceElectronic Commerce
Global E-Commerce
• Barriers to Global EC– Cultural issues– Culture and language translation– Administrative issues– Geographic issues and localization– Economic issues
Pearson/Prentice Hall & Dr. Chen, Dr. Chen, Electronic CommerceElectronic Commerce
Global E-Commerce
• Breaking Down the Barriers to Global EC– Be strategic– Know your audience– Localize– Think globally, act consistently– Value the human touch– Clarify, document, explain– Offer services that reduce barriers
Pearson/Prentice Hall & Dr. Chen, Dr. Chen, Electronic CommerceElectronic Commerce
E-Commerce in Small and Medium-Sized Enterprises
• Advantages and Benefits of EC to Small and Medium-Sized Enterprises– Inexpensive sources of information– Inexpensive ways of advertising and conducting market
research– Competitor analysis is easier– Inexpensive ways to build storefronts– Less locked into legacy technologies– Image and public recognition can be generated quickly– An opportunity to reach worldwide customers
Pearson/Prentice Hall & Dr. Chen, Dr. Chen, Electronic CommerceElectronic Commerce
14.9 E-Commerce in Small and Medium-Sized Enterprises
• Disadvantages and Risks of EC to Small and Medium-Sized Enterprises– Lack of financial resources to fully exploit the Web
– Lack of technical staff or insufficient expertise in legal issues, advertising, etc.
– Less risk tolerance than a large company.
– Products not suitable for online sales
– Reduced personal contact with customers
– Inability to afford the advantages of digital exchanges
Pearson/Prentice Hall & Dr. Chen, Dr. Chen, Electronic CommerceElectronic Commerce
E-Commerce in Small and Medium-Sized Enterprises
• Critical Success Factors for SMES– Product is critical– Payment methods must be flexible– Electronic payments must be secure– Capital investment should be kept to a
minimum– Inventory control is crucial– Logistics services must be quick and reliable
Pearson/Prentice Hall & Dr. Chen, Dr. Chen, Electronic CommerceElectronic Commerce
E-Commerce in Small and Medium-Sized Enterprises
• Critical Success Factors for SMES– Owner support– High visibility on the Internet– Join an online community– A Web site should provide all the services
needed by consumers
• Supporting SMES– Government agencies– Vendor service centers
Pearson/Prentice Hall & Dr. Chen, Dr. Chen, Electronic CommerceElectronic Commerce
The Key to successful business on the Internet ...
• The key to successful business on the Internet is not the formulation of a conceptual strategy but the execution of that strategy -– the content owners must buy into the strategy and
have the confidence of senior executives,– often the decisions the content owners make may
have serious consequences to the organization and its strategy
– Buy-in and open discussions are keys to successRobert Plant, eCommerce: Formulation of Strategy, pp.67, 1999, Prentice Hall
Pearson/Prentice Hall & Dr. Chen, Dr. Chen, Electronic CommerceElectronic Commerce
Ownership Issues
• E-centric Structure + = Success
Content alone is not sufficient for success
Successes come from a balanced business modelthat involves each business area content provider
contributing to the overall business model.
Content is
Knowledge is
Knowledge,
Power.
Content
N
Pearson/Prentice Hall & Dr. Chen, Dr. Chen, Electronic CommerceElectronic Commerce
Managerial Issues
1. What is the strategic value of EC to the organization?
2. Who determines EC strategy?
3. What are the benefits and risks of EC?
4. Why do we need a plan?
5. What metrics should we use?
Pearson/Prentice Hall & Dr. Chen, Dr. Chen, Electronic CommerceElectronic Commerce
Managerial Issues
6. What staffing is required?
7. How can we go global?
8. Should the dot-com activities be spun off as a separate company?
9. Can we learn to love smallness?
10. Is e-business always beneficial?