1. Chapter 2 Preparing the Online Business

2. Agenda Competition analysis The new channel New paradigms New system creation Discussion

3. Agenda Competition analysis The new channel New paradigms New system creation Discussion

4. Competition Analysis Identify and investigate your competitors on the web –Conducting business –Contacting customers Collect information –Survey –Purchase (Dun & Bradstreet) –Research & development (patents) Develop strategies - exploit competitors’ weakness and undermine their strength

5. Agenda Competition analysis The new channel New paradigms New system creation Discussion

6. The New Channel Old channels: linear –Face-to-face –Mail –Phone New channel: direct contact between customers and every partner in value chain –Internet Channel conflict

7. Channel Conflicts Clear market segmentation for all channel partners: decide who sells what to whom Solutions –Market check –Channel strategy: reconstructing the value chain (selling products and providing service supports) –Conflict documentation –Time limit

8. Agenda Competition analysis The new channel New paradigms New system creation Discussion

9. New Paradigms One-to-one enterprise (mass customization) Dynamic trade: Waverly Deutsch of Forrester Research “ leveraging technology to satisfy current demand with customized response” –Buyer-selected not seller-selected –Market decides the price –Added value: services –More fast and exact production –Customers’ preferences database

10. Business Process Re-engineering BPR Proposed by James Champy and Michael Hammer BPR –Question existing processes, rules and structures –Replaces the old ones with completely new processes, rules and structures –Increase the revenues or effectiveness by factors

11. Business Process Re-engineering BPR Customer – centric way Hyperarchical organization structure Reorganization –Employee –Structure –Combination Example –Just in time –Manufacturing resources planning systems –Material requirement planning systems

12. Agenda Competition analysis The new channel New paradigms New system creation Discussion

13. New System Creation Analysis Plan Design Development Implementation strategies

14. Analysis Product identification –Soft goods Software or information Sales and distribution channel –Hard goods Digitizing the value chain and orders –Service providers Translation or advertising IT evaluation –In house or outsource or combination

15. Analysis Goals –Lowest product price –Highest service –Cost reduction –Sales Location –Own internet connection –ISP

16. Analysis Shopping –Ease to use –Attractive Customer profile –Tracking visits & navigation –Customer database Public relation –Advertise and promote

17. Analysis Payment –Methods –Security Laws –National –International Culture

18. Plan E-business strategy in enterprise strategy –Which portion of the business Business partners considerations –Channel conflict Management & employee preparation Effective marketing Campaign

19. Plan Performance review method –Services & products fit into customer’s need and expectation Information Technology –E-mail, Intranet, Extranet, hardware, software –Heterogeneous systems architectures –System integration (new and old ones) –Back up plan (web server, connection) –Security plan Project team

20. Design Process requirements Web design: strategy & creativity Security Customer database Marketing techniques

21. Development IT selection: hardware, software Methods –In- house –Outsource –Combination

22. Implementation Strategies Management involvement Plan for constant change Pilot –Test (bugs, errors) –Feedback (performance) –Scalability –Integration

23. Implementation Strategies Training, maintenance and support Measure productivity Prepare for resistance –Company culture and personal culture –Start from e-mail

24. Agenda Competition analysis The new channel New paradigms New system creation Discussion

25. Discussion - I What kind of impact will be on the old traditional business due to dynamic trading? Is it necessary to conduct a business re- engineering before implementing an e- business or any new way of doing business?

26. Discussion - II What are the differences between the training of employees in the old systems and e-business systems? What are the differences between the security consideration in the old systems and e-business systems? Can you improve the development steps in creation of new e-business?

27. Points to Remember Competition analysis The new channel New paradigms New system creation Discussion