E-Business Strategies and Development Prof.Dr. Yang Dehua School of Economics and Management Tongji University

Outlines  Competition Strategies  Planning Fundamentals  Implementation of Changes  Developing Business Solutions  Implementation of e-Business Information Systems

Competition Strategies  Pressures Being Faced by Enterprise  3Cs/4Cs  Rapid Development of the Internet technologies  Agile Companies and Virtualization  The New Economy

Business Strategies—Ends/Means  Vision - Ends  Mission - Means  Goals/objectives - Ends  Policies – Elements of guidance  Business rules – Elements of guidance  Environmental analysis - Influences  Courses of action - Means

Strategic Use of IT  Strategic Uses of Information Technology  Strategic Information Systems  The Main Lever in Modern Enterprises  Examples

Planning Fundamentals  Organizational Planning  Team building,modeling, and consensus  Evaluating what an organization has accomplished and the resources they have acquired  Analyzing the environment(PESTEL)  Anticipating and evaluating the impact of future development

Components of Organizational Planning  Building a Shared Vision  Deciding on What Goals They Want to Achieve  Making Strategies  Deciding What Actions to Take to Achieve Their Goals

Components of Organizational Planning Analyze the organization’s Environment Forecast Internal & external Developments Analyze accomplishments and resources Team building,mode ling, and consensus Establish: Vision Mission Goals Objectives Articulate the organizational plan Develop Implementation methods & controls Develop Strategies Policies& Tactics

Methodologies of Organizational Planning  The Scenario Approach  Virtual world exercises  Environment development(trends):  Technology  Competitive imperatives  Deregulation  Customer sophistication/expectations  Others

Methodologies of Organizational Planning  SWOT Analysis  External  Internal  Business Models  Conceptual framework that expresses the underlying economic logic and system that prove how an enterprise can deliver value to customers at an appropriate cost and make money

Business Models  Components of Business Models  Customer value  Scope  Pricing  Revenue resource  Connected activities  Capabilities  Sustainability

Business/IT Planning  Business/IT Planning Alignment Customer and Business Value Visioning Business Strategies and Models Business/IT Strategies and Architecture Business Application Development and Deployment Key InsightsKey Objectives Priorities Feedback/Impact

Information Technology Architecture  IT Architecture  Technology platform  Data resources  Application architecture  IT organization

Identifying Business/IT Strategies External Drivers Internal Drivers Global Market Penetration Product and Service Transformation Cost and Efficiency Improvements Performance Improvement in Business Effectiveness

Identifying Business/IT Strategies  Examples  Market creator  Transaction intermediary  Informediary  Self-service innovator  Supply chain innovator  Channel mastery

Identifying Business/IT Strategies  Boston Consulting Group Matrix

Identifying Business/IT Strategies  Description of the Model One axis shows the market share relative to the industry leader which is always the leftmost circle. The other axis shows market growth rate for the industry. A circle is drawn for each competitor. The size of each circle represents that company's dominance.  Characterize Your Enterprise The expert system will position your enterprise on the chart based upon your description of:

Identifying Business/IT Strategies  share of market  condition of the market You can trace through the supporting analysis and its conclusions, adjusting your input until you are satisfied your description accurately characterizes your enterprise.

Identifying Business/IT Strategies  Stars  High growth High shareBusiness is likely to generate enough cash to be self sustaining. Recommended tactics:  promote aggressively  expand your product or service  invest in R & D

Identifying Business/IT Strategies  Cash Cows  Low growth High share  Business can be used to support other business units.  defend & maintain

Identifying Business/IT Strategies  Question Marks  High growth Low share  Business requires a lot of cash to maintain market share.  invest more cash  or, divest

Identifying Business/IT Strategies  Dogs  Low growth Low share  Business is a cash trap.  focus on short term  avoid risky project  limited future

Identifying Business/IT Strategies Importance of Planned IS Importance of Current IS Transform Strategic SupportFactory McFarlan and McKenney’s Model

Identifying Business/IT Strategies  Nolan Technology Development Failure Initiation Contagion Decline Control Maturity Applications Time

Business Application Planning  Business Application Planning  IT proposals for addressing strategic business problems  Business case for investing in e-business projects  Planning for application development and implementation

Business/IT Architecture Planning Repository Business Models Application Components E-Business Strategies: SWOT, Goals, Requirements, Constraints E-Business Processes: Internal & Inter- enterprise, Organizational, Process & Data Models E-Business Application Architecture: e- Business, e-Commerce,Component- based Applications Technology Infrastructure: IT Architecture,Component Development Methodology

Implementation Challenges  Implementing Information Technology  Impact introduced by implementation  User resistance  Business continuity management  Business process reengineering

Impact Introduced by Implementation New Business Initiatives Best Practices Model Best Practices Improve Efficiency Level of Changes Scope of Business Change(Examples ) Single Function Core Processes Supply Chain Extended Supply Chain Improve Efficiency Process Reengineering Redefine Core Business

Change Management  Change Management  Technology  Process  People  Operational  Strategic

Change Management TechnologyProcess People Operational Strategic Impact on Business Level of Difficulty/Time to Resolve High Low Enterprise Architecture Supplier Partnership System Integrators Outsourcing Technology Selection Technology Support Installation Requirements Ownership Design Enterprise wide Processes Inter- enterprise Processes Change Control Implementation Management Support Processes Change Leaders Loose/Tight Controls Executive Sponsorship & Support Aligning on Conditions of Satisfaction Recruitment Retention Training Knowledge Transfer

Systems Development  Development Models  Development Methodologies  Implementation Issues

The System Approach  The System Approach  System Thinking Input Poor Sales Management Inadequate Selling Effort? Out-of-Date Sales Procedures? Poor Sales Performance? OutputProcessing Control

System Development Cycle  System Development Cycle  Systems investigation  Systems analysis  Systems design  Systems implementation  Systems maintenance

Information Systems Development Methodologies  Life-Cycle Based Model  Requirements  Analysis  Design  Implementation  Testing  Maintenance

Information Systems Development Methodologies  Prototyping Model  Identify the end users’ business requirements  Develop business system prototypes [Prototyping Cycle]  Revise the prototypes  Use and maintain the accepted business system [Maintenance Cycle]

Starting Systems Development  Feasibility Study  Organizational  Technical  Economic  Operational

Systems Analysis  Systems Analysis  Organizational analysis  Present systems analysis  Functional requirements analysis  Systems Design  User interface design  Data design  Process design

System Specifications  System specifications  User interface  Database  Software  Hardware and network  Personnel

End User Involvement  End User Involvement  Users requirements  End user computing

Implementing Business Systems  Implementation Activities  Acquisition of Hardware, Software, and Services  Software Development or Modification  End User Training  System documentation  System conversion

Hardware Evaluation  Hardware Evaluation Factors  Performance  Cost  Reliability  Compatibility  Technology  Ergonomics  Connectivity

Hardware Evaluation  Scalability  Software  Support

Software Evaluation  Software Evaluation Factors  Quality  Efficiency  Flexibility  Security  Connectivity  Language  Documentation

Software Evaluation  Hardware  Cost  Others(Hardware evaluation factors)

Other Implementation Activities  Other Implementation Activities  Testing  Documentation  Training  Conversion methods

Conversion Methods  Conversion methods  Parallel  Pilot  Phased  Plunge

Maintenance  System Maintenance  Trouble shooting  New functions  Adapting to new businesses