Slide 5.1 E- business strategy business strategy Chapter 5 Slide 5.3 Management issues Management issues How does e How does e-business strategy differ from business strategy differ from traditional business strategy? traditional business strategy? How should we integrate e How should we integrate e-business business strategy with existing business and IS strategy with existing business and IS strategy? strategy? How should we evaluate our investment How should we evaluate our investment priorities and returns from e priorities and returns from e-business? business? Slide 5.4 Michael Porter on the Internet Michael Porter on the Internet Porter, M. (2001) Strategy and the Internet, Harvard Business Review, March 2001, 62–78. The key question is not whether The key question is not whether to deploy Internet technology to deploy Internet technology – companies have no choice if companies have no choice if they want to stay competitive they want to stay competitive – but how to deploy it but how to deploy it Slide 5.5 Alternative definitions of strategy Alternative definitions of strategy What is strategy? What is strategy? ‘ Defines how we will meet our objectives Defines how we will meet our objectives’ ‘ Sets allocation of resources to meet goals Sets allocation of resources to meet goals’ ‘ Selects preferred strategic option to Selects preferred strategic option to compete within a market compete within a market’ ‘ Provides a long Provides a long- term plan for the development term plan for the development of the organization of the organization’ Slide 5.7 Sell Sell- side side e-commerce strategy (Chapters 8 commerce strategy (Chapters 8 & 9) or e & 9) or e-marketing / E marketing / E-CRM Strategy CRM Strategy Sell Sell- side e side e- commerce is a commerce is a channel strategy channel strategy Objectives for online contribution percentage Objectives for online contribution percentage should drive our strategy should drive our strategy Our e Our e- commerce strategy defines how we should commerce strategy defines how we should Hit our channel leads and sales targets Hit our channel leads and sales targets Acquisition, Conversion, Retention, Service, Profitability Acquisition, Conversion, Retention, Service, Profitability Communicate benefits of using this channel Communicate benefits of using this channel Prioritize products available through channel Prioritize products available through channel Prioritize audiences targeted through channel Prioritize audiences targeted through channel Select partners for this channel Select partners for this channel Channel strategy thrives on Channel strategy thrives on differentials differentials BUT, need to manage BUT, need to manage channel integration channel integration Slide 5.8 Buy Buy-side side e-commerce strategy (Chapters 6 & 7) commerce strategy (Chapters 6 & 7) or e or e-supply chain management strategy supply chain management strategy Buy Buy-side e side e-commerce strategy is about maximizing commerce strategy is about maximizing operational efficiencies while improving customer service operational efficiencies while improving customer service quality quality Operational efficiency Operational efficiency KPIs KPIs should drive our strategy should drive our strategy Our buy Our buy-side e side e-commerce strategy defines how we should commerce strategy defines how we should Automate internal processes Automate internal processes Link internal resource management systems with Link internal resource management systems with external purchasing systems external purchasing systems Prioritise suppliers / partners collaborating using this Prioritise suppliers / partners collaborating using this channel channel Prioritise applications for E Prioritise applications for E-SCM SCM – create a roadmap create a roadmap Involves selection of appropriate strategic partners Involves selection of appropriate strategic partners