E-Business Opportunities, First Mover Advantages Lecture 4 - Agenda Transformation of business to e- business SWOT Analysis First Mover Advantages Şule Özmen - Week 4

Transformation of business, redefinition of business to e-business starts with SWOT analysis.....continues with setting objectives and formulating strategies and then

Transformation of business.... E-Business is not about changing the way you do one thing, it is about changing the way of performing managerial activities. That is changing the way of planning, executing control

redefinition of business E-Business is not about changing the way you do one thing, it is about redefining the PROCESSES PRODUCTS AND SERVICES (offers) MARKETS (buyers & suppliers) RELATIONSHIPS

.....to e-business..... Starts with SWOT analysis Consider that transformation to e-business has both Managerial aspects Technical aspects

Importance of e-business strategies Many e-business efforts have failed due to lack of strategy and management. They are like trucks carening down a highway with no drivers, no road maps, no real destinations in mind. Digital TRANSFORMATION Patel;Mc Charthy;2000;Mc Graw Hill

e-business opportunities Opportunity to operate efficiently and effectively – reduced costs Advantages offered to consumers-ease, convenience, increase in customer satisfaction Opportunity to access to global markets and revenue enhancement

e-business opportunity: reduced costs Operating costs and expenses decrease Ordering costs Transaction costs Cost of goods sold General and administrative expenses decrease Marketing and selling expenses decrease

e-business opportunity: efficiency Efficiency: Increased efficiency in resource utilization. Fast and efficient information flow- near real time decision making. Elimination of errors like order processing errors Time: Faster time to market Reduced order – to – delivery cycle time in procurement

e-business opportunities for satisfying customers E- Commerce offers distinct advantages to consumers that traditional business can not easily match Improved customer satisfaction- CRM

e-business opportunities for selling more Access to global market Selling to new buyers Revenue enhancement New markets, new customers,

e- business threats Lack of technical knowledge and experience Lack of support from senior management Technology- user friendly interfaces, fast access and speedy transactions Security concerns Ignoring e-commerce – threat of losing competitive position

....continues with setting objectives and formulating strategies E-Business objectives and strategies together with the possible weaknesses and strengths will be discussed next week

First Mover Advantages “ First” and “different ” Capturing most profitable customers Higher margin, higher market share Exploit the value of their brands early Pick the best partners, participants before competitors enter Different isn’t always better, but the best is always different Net Ready by Hartman & Sifonis; 2000;Mc Graw Hill

First Mover Advantages “ First” and “different ” Attract most talented and innovative human resource Media and academic coverage – referring the first movers as examples of e-business winners Building trust - security You can be a first mover without having to invent something new. Offer differentiated services with greater convenience and lower cost

Market Adoption Sequence: Traditional and Internet Life Cycles

What is next? Assignment What about the results of explosion in dot.com start ups? Is it probable that they are all successful Discussion “Business requirements rather than IT requirements always have the priority and the transformation process should never left to IT (Information Technology) people alone.” What do you think about the claim. Do you think that IT people can never alone be sufficient in dot.comming a business