1. TODAY’S CLASS “Practitioners Perspective on
5:00-6:00 Discussion: Implementation
6:00-6:15 Break
6:15-7:40 Don Hazell, BEA Systems
“Practitioners Perspective on
Implementing e-Business
Solutions”

2. Homework due next session
Prepare Case: Chapter 8
Prepare Crossfire - Valuation of e-Businesses
Prepare Amazon.com
Supporting articles:
“Disciplined Decisions,”
“Investment Opportunities as Real Options,” and
“A General Manager’s Guide to Valuation,”

3. Innovation is the mainspring of the new economy.
Ideas are critical…
Innovation is the mainspring of the
new economy.
But as more and more companies compete in
ideas, the game changes to competing in the
implementation of the ideas.
In this next stage of competition:
Getting an idea gives way to getting it done!

4. Marketspace Evolution and Need for Continuous Innovation
Brand Promise
Branding
Marketing communications
Customer interface
Implementation
Objectives
Achieve strategic goals
Adjust product offering and delivery system to rapidly changing marketspace environment
Delivery
System
Innovation
Process
Deliver on the promised experience
Renew/innovate the
customer experience
Source: Monitor Analysis

5. Two Integral Components of Implementation
Objectives
Deliver the promised customer experience
Turn strategic intent/concepts into results
Build the
infrastructure to deliver on the brand promise
Objectives
Maintain fit between marketspace evolution and the company’s delivery system and product offering
Innovate/Renew the customer experience
Source: Monitor Analysis

6. Why Does Implementation Matter?
Strategy
Appropriate
Inappropriate
Success
All that can be done to ensure success has been done
Roulette
Good execution can mitigate poor strategy, forcing management to success or
Same good execution can hasten failure
Good
Implementation
Trouble
Poor execution hampers good strategy -- management may never become aware of strategic soundness because of execution inadequacies
Failure
Difficult to diagnose -- bad strategy masked by poor execution
More difficult to fix -- two things are wrong
Poor
Source: Modified version of materials in Thomas V. Bonoma, The Marketing Edge, The Free Press, 1985

7. From Built to Last to Built to Rebuild
Sources: Frederick P. Brooks, Built to Last, Harper Business
Smart Way to Start, 10 Principles of the New Economy, Business 2.0, March, 2000

8. The Delivery System Needs to Support and Reinforce the Resource System
Mapping the Resource System
People
Supply
Chains
Processes
Systems
Assets
Source: Clayton M. Christensen, Meeting the Challenge of Disruptive Change, Harvard Business Review 78, no. 2, March-April 2000
Monitor Company ©1999 — Confidential

9. The Offline Innovation Process Was Internal to the Firm
Innovation by Doodling
Innovation by Design
Innovation by Direction

10. Offline Innovation Process vs. Online Innovation Process
Offline Trade-Offs/Principles Supporting Funnel Approach
Online
Principles
Investments required to launch new innovation very high
Limited resources force tradeoffs/choices about which innovations to pursue or not
Tradeoffs/choices are made inside the organization before product hits the market
Time-to-market/first-mover imperative needs to be traded off with extensive time required to gather customer input
Launching early increases risk of flops and flops need to be avoided at all times:
Costs of flow very high
Significant damage to brand equity
Investments required to launch new products and services very moderate
Choices about future of new innovations can easily be made by markets, no need to make these choices internally
First-mover imperative can be aligned with gathering (more) customer input
Launching beta versions allows for revisioning/customization, actually benefiting innovator
Keys drivers determining success of innovation/implementation are:
Customer base
Customer data analysis
Knowledge management

11. Integrating New Technology with Customer Preferences
Evolution of Technical Possibilities
Beta 1
Initial
Input
Product
Release
Beta 2
Beta 3
Evolution of Customer Preferences
Source: Marco Iansiti and Alan McCormack, New product development on the Internet, Sense & Respond, Harvard Business School Press, 1998

12. Change Without Pain HBR, July 2000
- Reward Shameless Borrowing
- Appoint a Chief Memory Officer
- Tinker and Kludge Internally First
- Hire Generalists

13. Lessons from HelloAsia.com (Fast Company, June 2000)
- Don’t move until you know where you’re going
- Strategize globally, but plan locally
- Don’t make a move until all your people know
their places
- Write it down
- The best-laid plans need to change