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MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE
Strategic Planning for EC
MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE
The strategic Planning Cycle Industry & Competitive Analysis Strategy Formulation Implementation Performance Assessment, Strategy
reassessment
MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE
Industry & Competitive Analysis Monitor, evaluate and disseminate information
from external and internal environments Identify critical factors that will determine
success SWOT analysis MATRIX
MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE
Strategy Formulation Examine\Redefine the corporate mission
Develop strategies Set Implementation Guidelines
MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE
Examine\Redefine the corporate mission by specifying achievable objectives
measurable what does the company intend to achieve?
MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE
Develop strategies Must be clear and not superficial People, organisation, processes and
technology
MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE
Develop strategies (cont) A value chain approach Relationship Marketing ROI & Risk Analysis Critical Success Factors Four EC Scenarios Competitive v’s Cooperative Competitive Intelligence on the Internet
MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE
A value chain approach Clarify Value Chain Statements
Create New Values
MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE
Clarify Value Chain Statements Can I realise significant margins by
consolidating parts of the value chain? Can I create significant value for customers by
reducing the number of entities they have to deal with in the value chain?
What additional skills do I need to develop in order to take over the functions of others in my value chain?
Will I be at a a competitive disadvantage if someone else moves first to consolidate the value chain?
MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE
Create New Values Can I offer additional information regarding transaction
services to my existing customer base? Can I address the needs of new customer segments
by repackaging my current information assets or by creating new business propositions using the Internet?
Will my current business be significantly harmed by other businesses providing some of the value that I currently offer?
Will my current business be significantly hared by other companies providing some of the value I currently offer on an a la carte basis?
MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE
Relationship Marketing Differentiation by superior service at the point
of contact with the customer customer acquisition customer retention customer extension customer selection
MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE
ROI & Risk Analysis ROI = ratio of cost of resources required to the
benefits generated Includes both quantifiable and non-quantifiable
items Non-quantifiable items
effective marketing channel increased sales increased customer service competitive advantage organisational design organisational learning
MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE
ROI & Risk Analysis (Cont) Risks
technological inherent in business reorganisation demographic changes
MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE
Critical Success Factors Top Management support cross functional teams technical infrastructure customer acceptance user friendly web interface Integration with legacy systems
MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE
Critical Success Factors (cont.) security and control of the EC system pilot project corporate knowledge promotion and internal communication cost level of trust between buyers and sellers
MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE
Critical Success Factors (cont.) Specific product or services traded
Does the business have a product that is a good candidate for EC?
Can the business develop new products for EC?
How can I use the information I have about individual customers to make it easier for them to do business with me?
MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE
Critical Success Factors (cont.) Specific product or services traded (cont.)
What help can I give customers by using the experience of other customers or the expertise of my employees?
Will I be at a significant disadvantage if my competitors provide these capabilities to customers before I do?
MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE
Four EC Scenarios Open Global Commerce Scenario Members Only Subnets Scenario Electronic Middlemen Scenario New Consumer Marketing Channels Scenario
MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE
Competitive v’s Cooperative A competitive strategy assumes fighting
against all competitors for the purpose of survival and to win
A cooperative strategy plans for working together with specific competitors to gain advantage against other competitors.
MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE
Competitive Strategies Frontal assault
attacks competitor in all areas the attacker must have superior resources
and a willingness to persevere Flanking manoeuvre
attacks where the competitor is weak attacker must be patient and willing to
carefully expand
MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE
Competitive Strategies (cont.) Raise structural barriers
full product lines switching costs low entry costs
Lower the inducement for attack lower the expectation of profits by attackers
MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE
Cooperative strategies Joint venture
pooling of resources new, separate entity formed involves loss of control
Value chain partnership
MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE
Steps to maximise success Education and Training Review Current Distribution and Supply Chain
Models Understand What Your Customers and
Partners Expect From the Web Re-evaluate the Nature of Your Products and
Services Give A New Role to Your Human Resources
Department Cross Functional Job Descriptions Establish Corporate Intranet \ Internet Policies
MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE
Steps to maximise success (cont.) Extend Your Current Systems to the Outside Track New Competitors and Market Shares Develop A Web-centric Marketing Strategy Participate in the Creation and Development of
Virtual Market Places Instil EC Management Style Constant environmental scanning
MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE
Competitive Intelligence on the Internet Review Competitors Web Sites Analyse Related News Groups Examine Publicly Available Financial
Documents Corporate Research Companies Solicit Opinions in Chat Rooms Interactive Customer Questionnaires Avoid Over Reliance Push V’s Pull Information Technology
MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE
Set Implementation Guidelines Pilot Project Uncover Specific EC Opportunities and
Applications Create Web Team Evaluate Outsourcing Web site design Assessment
MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE
Uncover Specific EC Opportunities Brainstorming Consultants Vendors Review Competitors Literature
MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE
Create Web Team Transformational Leadership Define Roles Assign Functional Skills to Subprojects Cross Functional Staffing Documentation
MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE
Evaluate Outsourcing Cost Expertise Benchmarking against vendors other clients Loss of control Core competencies
MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE
Assessment Measure Collect information Re-evaluate Recommence planning cycle
MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE
Collect information Staff Customers Suppliers
MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE
Re-evaluate Did it deliver what it was supposed to Is it still viable in an ever changing
environment Reassess initial strategy to learn from
mistakes and strengthen advantages Identify failing projects ASAP and determine
reasons for failure Identify control and administrative issues
MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE
Change Management
MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE
Need for Change Management Environment is always changing Change is Natural 70% of IT projects fail
MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE
Change does not occur in isolation
Technology People
Task
Structure
MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE
Stages of Change Unfreeze Present Behaviour
Creating motivation and readiness for change
Change the organisational system Enabling people to see things differently and
react differently in the future
Re-freeze Ensuring that the new behaviour will be
secure against reversion
MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE
The Managing Change Model (Siegal)
Evaluating Change
Managing the people side of
change
Managing the organisation side of change
Planning change
Individual response to change General nature of change
MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE
Critical Success Factors Executive Support Transformational Leadership
Communicating the Vision Inspiring
Sound Implementation Strategy Transition Management Team
Moral authority Legal authority
MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE
Critical Success Factors (cont.) Trust Communication Recognise Resistance Normal
Understand sources and motives May derive benefits from the dysfunction Maintain personal homeostasis Reflects poorly upon past performance
MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE
Critical Success Factors (cont.) Ownership Empowerment Monitoring Feedback