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File: case_studies.PPT 1
Yogi Schulz
e-Business Projects
ProjectWorld 2001 Workshop Presenter: Yogi Schulz
CaseStudies
June 2001
Managing e-Business Projects:Risks, Issues & Solutions
File: case_studies.PPT 2
Yogi Schulz
e-Business Projects
E-tail: Gleaming Storefronts with Nothing InsideCase Study
Read the Business Week article– May 1, 2000, pages 97 - 98
Consider major issues/difficulties:– tactical
– strategic
Brainstorm solutions to:– solve immediate marketing/operational problems
– strengthen the brand/product/service offering
What would you recommend as a project manager?
File: case_studies.PPT 3
Yogi Schulz
e-Business Projects
Hyperaises
consumerexpectationsexcessively
E-tail Case Study Major Issues/Difficulties
Ordinary/boring/pedestrian web sites– print/TV ad expectations not met by web sites
Lavish spending on promotion– excessive customer acquisition cost
Over-emphasis on growth– neglect of profitability
Poor order fulfillment– neglect of back office infrastructure
Flawed business model
File: case_studies.PPT 4
Yogi Schulz
e-Business Projects
E-tail Case StudySuggested Solutions
Improve web sites:– deliver a superior customer experience
Reduce promotional expenses:– reduce print/TV advertising
– increase Internet marketing
Invest in back-office infrastructure:– warehouses
– inventory management systems
– order fulfillment capability
File: case_studies.PPT 5
Yogi Schulz
e-Business Projects
H & R BlockCase Study
Form into groups
Read the Business Week article– April 17, 2000, page 200
List major issues/difficulties:– tactical
– strategic
Brainstorm solutions to:– solve immediate problems
– strengthen the product/service offering
What would you recommend as a project manager?
File: case_studies.PPT 6
Yogi Schulz
e-Business Projects
H & R Block Case Study Major Issues/Difficulties - 1
Inadequate data confidentiality– able to see other people’s tax returns
Site outages/availability lapses– inadequate infrastructure
Software bugs– inaccurate results
– little or no software testing
Slow to poor performance– inadequate capacity/scalability
Missing functionality– couldn’t handle some states
Undermineconsumer
confidenceand trust
File: case_studies.PPT 7
Yogi Schulz
e-Business Projects
H & R Block Case Study Major Issues/Difficulties - 2
No online help/support call center– able to see other people’s tax returns
Rush to market– late to market
Poor user interface– users became confused & abandoned tax preparation
Inadequate operational monitoring– users called in to report seeing tax returns of others
Inadequate backup/recovery– took days to recover from a problem
File: case_studies.PPT 8
Yogi Schulz
e-Business Projects
H & R Block Case StudyStrategic Issues
Me-too web strategy– reactive to Intuit; trying to keep up
– not a unique/differentiated strategy
Franchisees wary of cannibalizing their business– slowed development of the Web alternative
– involve Franchisees in Web initiatives
Intuit - competitor with a year’s head start– threatens H R Block’s traditional market share
Inability to promote related products– will slow revenue growth and profitability of mortgage and financial
services
File: case_studies.PPT 9
Yogi Schulz
e-Business Projects
H & R Block Case Study Suggested Solutions - 1
Strengthen the infrastructure:– capacity to improve response time
– security/privacy
Improve the tax software:– fix bugs
– widen the scope to meet needs
Build services:– mortgage
– online trading
– real-time quotes
– stock and mutual fund research
– portfolio and retirement planning
Rebuildconsumer
confidenceand trust
Expandthe business}
File: case_studies.PPT 10
Yogi Schulz
e-Business Projects
H & R Block Case Study Suggested Solutions - 2
Develop a distinct strategy. Consider:– a separate brand for the web initiative
– active support/participation of the franchisees
Create a call center– consider directing calls to local franchisees
Consider a more modest web start:– tax information/help pages
– tax information/help chat room
– appointment booking service for franchisees
File: case_studies.PPT 11
Yogi Schulz
e-Business Projects
Holt RenfrewCase Study
Form into groups
Read the Globe & Mail article– September 13, 2000
List major issues/difficulties for:– Holt Renfrew
– its customers
– its competitors
Brainstorm solutions to:– selling through the web
– providing superior customer service
What would you recommend as a project manager?
File: case_studies.PPT 12
Yogi Schulz
e-Business Projects
Someproductsnot suited
to Web
Holt Renfrew Case Study Major Issues/Difficulties
Inadequate cost/benefit:– expensive site
– poor rating
– mixed customer reaction
Customer profile:– high fashion/service expectations
– urban residence; near store
– price is not a significant consideration
Product characteristics:– need for touch/feel in buying process
– need to fit/adjust product
File: case_studies.PPT 13
Yogi Schulz
e-Business Projects
Holt Renfrew Case StudySuggested Solutions
Marketing; not sales oriented web site:– showcase products
– advertise new offerings
– design a custom product
– offer customer registration for e-mail notification
– offer e-mail which contains a specific page link
Strengthen bricks & mortars:– upgrade customer service staff
File: case_studies.PPT 14
Yogi Schulz
e-Business Projects
Emulex Corp.Case Study
Form into groups
Read the National Post articles– September 2 and 4, 2000
List major issues/difficulties for:– Emulex
– Internet Wire
– investors
Brainstorm solutions to:– react to crises caused by fraud, mis-information
– minimize likelihood of a re-occurrence
What would you recommend as a project manager?
File: case_studies.PPT 15
Yogi Schulz
e-Business Projects
Frauddifficult
todetect/
counteract
Emulex Corp. Case Study Major Issues/Difficulties
Fraud/deception is easy to perpetrate
Fraudulent press release panicked investors– investor confidence undermined
Poor authenticity verification processes:– obvious text quality problems not corrected
– pressure to issue news quickly
Legal precedents unclear– potential for defamation liability
No personnel exit process– user id still active
File: case_studies.PPT 16
Yogi Schulz
e-Business Projects
Emulex Corp. Case StudySuggested Solutions
Define Emulex crisis response plan:– assign crisis leader
– orient staff about plan contents
– prepare communication templates
Improve IW wire service processes:– verify authenticity through confirmation
– change passwords regularly
– implement certificates/encryption
– institute an employee exit process
Improved IW authenticity verification process
File: case_studies.PPT 17
Yogi Schulz
e-Business Projects
Boo.comCase Study
Form into groups
Read the Business Week Online article– June 12, 2000
Read the E-Business article– July 2000
List major issues/difficulties:– tactical
– strategic
What would you recommend as a project manager?– solve immediate problems
– strengthen the product/service offering
Be prepared to share analysis & solutions orally
File: case_studies.PPT 18
Yogi Schulz
e-Business Projects
Boo.com Case StudyMajor Issues/Difficulties
Too much promotional spending– TV, radio and fashion magazines
– cash consumption rate too fast
Technical glitches:– innovative 3D product photography slow
– multi-lingual, multi-currency ambitions not delivered
– slow performance; high expectation of client workstation capability
Mis-read customer profile:– impatient young female
– desire for social aspect to shopping
Onlineexperience
difficultto
execute
File: case_studies.PPT 19
Yogi Schulz
e-Business Projects
Boo.com Case StudySuggested Solutions
Build understanding of customer expectations
Promote via the web
Design for fast response
Contain scope:– begin with few languages; currencies
– begin with targeted/limited product line
Plan for business profitability
Build a bricks component to the business plan
File: case_studies.PPT 20
Yogi Schulz
e-Business Projects
Nike - i2Case Study
Form into groups
Read the InternetWeek article– March 1, 2001
List major issues/difficulties:– tactical
– strategic
Brainstorm solutions to:– strengthen e-commerce software package implementation projects
What would you recommend as a project manager?
File: case_studies.PPT 21
Yogi Schulz
e-Business Projects
Nike - i2 Major Issues/Difficulties
Highly customized implementation
Production use before testing is complete
Inadequate vendor knowledge of customer and/or industry
Softwarepackages
can bedemanding
toimplement
File: case_studies.PPT 22
Yogi Schulz
e-Business Projects
Nike - i2 Suggested Solutions
Implement software packages with minimal customization for first release
Production use starts after User Acceptance Test sign-off
Support project team/software vendor in achieving customer/industry understanding
File: case_studies.PPT 23
Yogi Schulz
e-Business Projects
Future ShopCase Study
Form into groups
Read the Network World article– July 14, 2000
List major issues/difficulties for:– Future Shop
– its customers
Brainstorm solutions to:– react to crises caused by fraud, mis-information
– minimize likelihood of a re-occurrence
What would you recommend as a project manager?
File: case_studies.PPT 24
Yogi Schulz
e-Business Projects
Hoaxesdifficultto defuse
Future Shop Case Study Major Issues/Difficulties
Undermined customer confidence
Hoax panicked customers– undermines customer confidence
Sensitive customer data managed poorly– mass-mailing vendor not in control
– not managing outsourcing relationship
Slow crisis response:– customer service notified well after incident
– time zone differences created difficulties
– timing of bank notification unclear
– correcting E-mail sent 2 days later
File: case_studies.PPT 25
Yogi Schulz
e-Business Projects
Future Shop Case StudySuggested Solutions
Improve outsource vendor selection:– assess vendor stability/capability
– review business process and security infrastructure
Manage outsource vendor relationship:– test security measures
– include phony names; forwarded to Future Shop staff
Provide some customer restitution
Define crisis response plan:– assign crisis leader
– orient staff about plan contents
– prepare communication templates
File: case_studies.PPT 27
Yogi Schulz
e-Business Projects
You Know You`re Taking Computers Too Seriously When...
You’ve never bought one of the "dummies" books.
You refuse to delete programs off your hard drive that you haven`t used in two years.
You buy 50 new floppies rather than go through the 300 used ones you have and delete the files on them.
You get in the elevator and double-click the button for the floor you want.
You consider reading in the bathroom to be Multi-tasking.
File: case_studies.PPT 29
Yogi Schulz
e-Business Projects
One Minute e-Business Strategy
Stakeholders:– audience
– sponsor
– publishers
– builders/developers
– infrastructure support
Goals:– sell
– inform
– influence
Content:– domain
– components
Personalization:– personal data to collect
– features to offer
Promotion:– media
– web
Operation:– collecting, managing &
publishing content
– software maintenance
– infrastructure operations
File: case_studies.PPT 30
Yogi Schulz
e-Business Projects
Elements of ane-Business Strategy - 1
The right goal– Profitability
A unique value proposition which is defensible against competitors– What can the company do differently that customers will
pay for?
A distinctive value chain organization– Must links company functions and partners across major
business processes
File: case_studies.PPT 31
Yogi Schulz
e-Business Projects
Elements of ane-Business Strategy - 2
Trade-offs outlining what the company will and will not do
A fit between the different parts of the organization's activities– Seeing the business as a system of value with activities that
reinforce each other
Continuity, even in the face of a fad– This takes leadership and discipline
Dr. Douglas ReidProfessor of business strategyQueen'sUniversity School of Businesshttp://itworld.ca/rx.cfm?v=J,H,20011780023&S=108297
File: case_studies.PPT 32
Yogi Schulz
e-Business Projects
One Minute e-Business Security
Potential Threats:
External & internal sabotage:– denial of service
– viruses
– malicious hacking
Fraud:– credit card
– assumed identity
Application security vulnerabilities
Lax physical access
Actions:
Physical access control
Userid management
Security consciousness of:– partners
– suppliers
– employees
Tracking suspicious actions:– high surfing activity
– high return rate
– high credit denial
Attack recovery plan
File: case_studies.PPT 33
Yogi Schulz
e-Business Projects
Web Privacy PolicyDevelopment Considerations
Policy Inclusions:– type of info collected
– plan for info
– re-sell/give intent for info
– customer rights
– takeover/bankruptcy consequences
– problem resolution process
Information access:– display
– update/correct
– remove/delete
– userid/password
Information collected:– personal identification
– personal profile
– credit profile
– purchase history
– view/click history
– correspondence history
File: case_studies.PPT 34
Yogi Schulz
e-Business Projects
Traditional vs. CollaborativeProject Management
Traditional Project Management
Internal and local
Fixed plans
Tasks and processes
Planning and scheduling
Low uncertainty and risk
Low-to-moderate speed
Low-to-moderate change
Uniform project teams
Project leader makes decisions
Collaborative Project Management
External and distributed
Fluid plans
Results
Interactions and knowledge management
High uncertainty and risk
High speed
High change
Diverse project teams
Distributed decision-making
File: case_studies.PPT 35
Yogi Schulz
e-Business Projects
Definition:Application Service Provider - ASP
A software vendor that delivers applications over the Internet or a private network
A company that delivers digital data using:– software
– hardware
– network
– content
– services
File: case_studies.PPT 36
Yogi Schulz
e-Business Projects
The last of theComputer Viruses list
Elvis Virus: Computer gets bloated, self destructs, and appears in malls all over America
Schwarzenegger Virus: Terminates whatever you have running, and it will be back
Gallup Virus : 60% of the PC's infected will lose 30% of their data 14% of the time (plus or minus a 3.5% margin on error)
Sears Virus: Your data won't appear unless you buy new cables, power supply and a set of shocks.
LAPD Virus: It claims it feels threatened by the other files on your PC and erases them in "self defense".
Prozac Virus: Scrambles your RAM and your processor and doesn't really care
Politically Correct Virus: rephrases the "Abort, Retry, Fail" prompt as "Choice, Retry, Success-Impaired".
Consultant Virus: Type in a question, and it responds "What would you like the answer to be?"
Freudian Virus: Your computer becomes obsessed with the motherboard
PBS Virus: Your computer interrupts the program you are running and starts making passive-aggressive pleas ("If you don't help, I guess I just won't be here anymore") asking for money every 55 minutes
AT&T Virus: Every 3 minutes it tells you what great performance you are getting
MCI Virus: Every 3 minutes it reminds you that you're paying too much for the AT&T virus
Bureaucratic Virus: Divides your hard disk into hundreds of little units, each of which does practically nothing, but all of which claim to be the most important part of your computer.
File: case_studies.PPT 37
Yogi Schulz
e-Business Projects
700, 400 - 5th Ave. S.W.Calgary, Alberta Canada T2P 0L6
Phone/Fax: (403) 249-5255E-mail: [email protected]
Web: www.corvelle.com
President of Corvelle Management Consultants
Information technology related management consulting
Project management and systems development
Computing Canada & Calgary Herald columnist
Managing e-Business Projects:Risks, Issues & Solutions
Yogi Schulz
Management Consultants