estrategy Toolkit

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e-strategy Toolkit

• An introduction and overview of the e-strategy
  Toolkit, version 2.0

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Content

• What are the opportunities and threats of
  eCommerce?
• What is the purpose of developing an e-strategy?
• What is the e-strategy Toolkit?
• What are the different phases in the e-strategy
  work?
• 1. Describe the Situation
• 2. Develop Strategy
• 3. Describe Projects
• 4. Implement Projects and Evaluate Results

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eCommerce is causing the established structures
and rules in the business to change. It
introduces new participants and ways of working
together that your company must relate to

• Some opportunities
• On the market side, the Internet and eCommerce
  can lead to the following opportunities
• Increased access to new sales- and distribution
  channels as well as new markets. By offering
  goods and services through the Internet, you will
  gain access to new geographically dispersed
  markets.
• Opportunity to establish closer bonds with the
  customer. By using the Internet, you can get
  access to better information about your
  customers. This means more focused marketing and
  provides the company with the opportunity of
  giving the customer better service.
• The opportunity to establish new business models
  and to take on a different position in the value
  chain. Your company can possess competence which
  may be used better and in other settings than the
  way it is currently used.
• The Internet can also lead to opportunities on
  the supply side
• Your company can reduce purchasing costs. More
  suppliers are available through the Internet and
  the Internet makes it easier to do
  price/product/service comparisons.
• Your company has the opportunity to radically
  simplify purchasing administration and other
  support activities.

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eCommerce is causing the established structures
and rules in the business to change. It
introduces new participants and ways of working
together that your company must relate to, cont.

• Some threats
• On the market side, the Internet and eCommerce
  can lead to the following threats
• Increased competition. Your customers are able to
  purchase products from more suppliers than before
  by using the Internet. The Internet will also
  mean that your customers have access to more
  suppliers covering a larger geographical area.
• Increased price pressure. The Internet causes a
  simplification in the comparison of price and
  product features. This can lead to increased
  pressure on prices and margins, even for the part
  of the sales which happens through other channels
  than the Internet.
• The Internet can also bring threats from the
  supply side
• Your suppliers can become your competitors. Some
  of your suppliers can sell their goods and
  services directly to your customers through
  direct sales and different market places on the
  Internet.
• Your company becomes less important to your
  suppliers. Through the Internet, the suppliers
  gains access to more customers. This can become
  critical for your company if the demand for your
  suppliers product is larger than the supply.

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Content

• What are the opportunities and threats of
  eCommerce?
• What is the purpose of developing an e-strategy?
• What is the e-strategy Toolkit?
• What are the different phases in the e-strategy
  work?
• 1. Describe the Situation
• 2. Develop Strategy
• 3. Describe Projects
• 4. Implement Projects and Evaluate Results

6
eCommerce creates a new uncertainty which must be
handled by the company. The work on e-strategy is
a systematic approach to answering questions like

• What is e-Business?
• What opportunities does e-Business create for
  our company? What can we gain from e-Business?
• How will e-Business change our market?
• What are our competitors doing? Some of them
  already have a website, what else can be done?

eCommerce and Internet is often referred to as
something completely new, and many people
perceive the challenges of starting up e-Commerce
activities as bigger than they actually are. A
large part of this perception is caused by the
experience that the issues from the Internet and
e-Commerce are new and different compared to the
current reality for the company
-Consultant, e-Strategy
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The purpose and starting point of e-strategy is
the business
Business strategy

• Choose and implement solutions and activities
  which
• Uses the opportunities and gains of e-Commerce in
  the best possible way
• Faces threats from e-Commerce effectively

e-strategy
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Innhold

• What are the opportunities and threats from
  e-Commerce?
• What is the purpose of developing an e-strategy?
• What is the e-strategy Toolkit?
• What are the different phases in the e-strategy
  work?
• 1. Describe the Situation
• 2. Develop Strategy
• 3. Describe Projects
• 4. Implement Projects and Evaluate Results

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The Toolkit provides a process aid in the
development of an e-strategy for SMEs

• The Toolkit offers a process and work aid for
  small and medium sized entreprises development of
  strategies and actions, which in the best
  possible way uses the opportunities and takes
  into consideration the threats which Internet and
  e-Commerce represents.
• The Toolkit is one of several elements in the
  Norwegian VeRDI-Programmet (the Value
  Programme), a part of the e-Norway plan. Its
  overall purpose is to strengthen the
  competitiveness and profitability of Norwegian
  SMEs, by stimulating and progressing the use of
  e-Commerce.

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The e-Strategy toolkit is a tool/workbook which
is meant to support the e-Strategy work
The toolkit is made up of phases, specific work
steps, templates and activities, which are meant
to support the e-Strategy work from start to
finish. The toolkit supports all parts of the
e-Strategy work. From the description and
understanding of the conditions which influences
the selection of an e-Strategy to implementation
and follow up on the selected e-solutions.
4. Implement
(The Toolkit consists of four phases.)
3. Describe Projects
1. Describe the
Phases
2. Develop Strategy
Projects and Evaluate
Situation
Results
(Each phase consists of work steps which should
be done in sequence)
Work steps
1. Analyse Internal
2. Analyse External
3. Recapitulate the
Conditions
Conditions
Analysis
I Describe important
issues
(Within each work step, there are activities to
be done. The activities can be documented in
excel-templates. (In order to be able to use
the templates, you need to download the Toolkit
to your own PC)
Activities
II. Describe the business
Model of the company
III. Analyse value creating
activities
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What the Toolkit is and is not

• The Toolkit
• Supports the e-strategy work by providing phases,
  work steps and activities on how to proceed.
• .but it does NOT give.
• An overview of specific market / competitive
  factors which influences your company. This
  information needs to be collected by the company
  itself.
• Overview or recommendations on specific strategy
  choices or actions which are relevant for your
  company. The strategic choices is something your
  company develops through the work, which the
  Toolkit supports.
• A guaranty that you make successful strategy
  selection and that the company achieves the set
  goals. But proper use of the Toolkit can
  contribute a higher probability of making a
  rational strategic choice and thereby achieve the
  goals.
• A tool for developing an IT-strategy, but rather
  a tool for developing an e-strategy which is
  based upon the business strategy.

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Content

• What are the opportunities and threats from
  e-Commerce?
• What is the purpose of developing an e-strategy?
• What is the e-strategy Toolkit?
• What are the different phases in the e-strategy
  work?
• 1. Describe the Situation
• 2. Develop Strategy
• 3. Describe Projects
• 4. Implement Projects and Evaluate Results

13
The e-strategy Toolkit is divided into four
phases, which in a logical way aids you through
the entire e-Strategy work
1. Describe the Situation The purpose of
describing the current situation is to understand
the trends and conditions in the market, the
competitors and the internal setting before
choosing an e-strategy. The conclusions and the
understanding in this analysis is the foundation
for the rest of the e-strategy work. 2. Develop
Strategy The purpose of this phase is to develop
a strategy which is aligned with the other
strategies in the company, and which utilises the
opportunities and challenges which the Internet
and e-Commerce represents. 3. Describe
Projects The purpose of this phase is to detail
the action plan which realises the e-strategy.
4. Implement Projects and Evaluate Results The
purpose of this phase is to secure that the
company reaches its goals through implementing
the e-strategy. This includes follow up, updates
and revisions of the e-strategy.
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Important elements in the four phases of
e-strategy development
Identify and choose e-solutions
Follow up on objectives and strategies
Identify possible strategic choices
Ongoing follow up on current projects
Understand the current business model
Assess productivity in the value creation
Assess the importance of e to the business
Develop project plans for the chosen e-solutions
Assess market position and preferences of the
customers
Develop business plan with profitability analysis
Identify and choose business model (what the
company does, and how it creates value to
customers, stakeholders, etc)
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Content

• What are the opportunities and threats from
  e-Commerce?
• What is the purpose of developing an e-strategy?
• What is the e-strategy Toolkit?
• What are the different phases in the e-strategy
  work?
• 1. Describe the Situation
• 2. Develop Strategy
• 3. Describe Projects
• 4. Implement Projects and Evaluate Results

16
Phase 1 Describe the Situation purpose and
results
1. Describe the Situation
3. Describe Projects
2. Develop Strategy
4. Implement Projects and Evaluate Results
Phases
1. Analyse Internal Conditions
2. Analyse External Conditions
3. Recapitulate the Analysis
Work steps

• The purpose of describing the current situation
  is to understand the trends and conditions in the
  market, the competitors and the internal setting
  before choosing an e-Strategy. The conclusions
  and the understanding in this analysis is the
  foundation for the rest of the e-strategy work.
• Most important results from this phase
• The company will have identified the strategic
  options, based on
• Assessment of the influence of e on the
  business, market and value chain
• Assessment of market and customer preferences,
  and how customers are satisfied
• Assessment of the productivity of the company
• Comparison with competitors

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Phase 1 Describe the Situation overview of
activities
1. Describe the Situation
3. Describe Projects
2. Develop Strategy
4. Implement Projects and Evaluate Results
Phases
Check list for describing the situation
1. Analyse Internal Conditions
2. Analyse External Conditions
3. Recapitulate the Analysis
Work steps
I. Sum up the analysis
I. Describe important issues
Activities
II. Describe the business model of the company
III. Analyse value creating activities
IV. Analyse accounts
V. Describe cost distribution
VI. Analyse the e-situation
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Phase 1 Describe the Situation Work step 1
Analyse Internal Conditions
1. Analyse Internal Conditions
2. Analyse External Conditions
3. Recapitulate the Analysis
I. Describe important issues
To identify the most important issues of your
business - questions to be answered in the
situation analysis and the development of an
e-strategy.
To obtain a point of departure for e-strategy
work. The business model constitutes the main
aspect of today's strategy and is important to
know before embarking on the development of an
e-stragey
II. Describe the business model of the company
To understand the way value is created in your
business today, including the strengths and
weaknesses of this process.
III. Analyse value creating activities
IV. Analyse accounts
To obtain a general overview of your business'
present and past economic situation. This tells
you how your business is doing and how it has
developed over time.
V. Describe cost distribution
To obtain an overview of how costs are
distributed over the different value creating
activities, and identifying the strengths and
weaknesses of the methods of production and
business.
VI. Analyse the e situation
To obtain an insight in the current 'e'-situation
of your business, from strategic e-competence and
skills to which solutions are being utilised at
present.
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Phase 1 Describe the Situation Work step 2
Analyse External Conditions
To understand which product or market areas which
are the most important to the company and which
of these areas has the greatest potential for
development in relation to "e".
To understand how your business and your
competitors satisfy the customers' buying
criteria.
To obtain an overview of the strengths and
weaknesses of your primary competitors - compared
to your company.
To compare your company to your competitors in
relation to the satisfaction of customer
demands, productivity and e-solutions.
To obtain an overview of suppliers and other
partners and their initiatives and maturity in
relation to "e". This is important when you are
later going to develop an e-strategy because you
will then need to consider these.
To understand the possibilities and threats that
eCommerce represents to your company. This will
contribute to finding new business models and
e-solutions later in the e-strategy work.
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Phase 1 Describe the Situation Work step 3 Sum
up the analysis
1. Describe the Situation
3. Describe Projects
2. Develop Strategy
4. Implement Projects and Evaluate Results
Check list for Describing the Situation
1. Analyse Internal Conditions
2. Analyse External Conditions
3. Recapitulate the Analysis
(The checklist is the last activity and is meant
to be your own control on the work and results of
the situational analysis)
Recapitulate all the analyses you have made,
according to strengths, weaknesses, opportunities
and threats identified
I. Sum up the analysis
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Content

• What are the opportunities and threats from
  e-Commerce?
• What is the purpose of developing an e-strategy?
• What is the e-strategy Toolkit?
• What are the different phases in the e-strategy
  work?
• 1. Describe the Situation
• 2. Develop Strategy
• 3. Describe Projects
• 4. Implement Projects and Evaluate Results

22
Phase 2 Develop Strategy purpose and results
Phases
Work steps

• The purpose of this phase is to develop an
  e-strategy, projects, and plans of action
  utilising the opportunities created by the
  Internet and eCommerce, and also meeting the
  challenges of these developments. The e-strategy
  must be aligned with the traditional strategy of
  the company.
• Most important results from this phase
• The company has made an informed choice about
  what the company will offer and how it will
  create value to its customers and owners (the
  business model of the company)
• The company has made an informed selection of
  e-solutions and activities
• The company has made a business plan / action
  plan and assessed the profitability of the
  selected e-solutions

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Phase 2 Develop Strategy overview of the
activities
Phases
Work steps
I. Describe possible business models
I. Describe possible e-solutions
I. Develop Business plan
Activities
II Choose business model
II. Choose e-solution(s)
II. Conduct profit evaluation of the business plan
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Phase 2 Develop Strategy Work step 1 Identify
and choose business model
1. Describe the Situation
3. Describe Projects
2. Develop Strategy
4. Implement Projects and Evaluate Results
1. Identify and choose business model
2. Identify and choose e-solutions
3. Shape Business plan with Profit Evaluation
To describe how "e" on a high level strategically
may support the current business model of the
company. Also, based on opportunities uncovered
in the situation description, to describe any
alternative business models where "e" plays a
major part.
I. Describe possible business models
The purpose of this activity is to assess which
of the business models are more attractive in
relation to profitability and how easily they may
be implemented. This assessment leads to a choice
of business model for your company.
II Choose business model
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Phase 2 Develop Strategy Work step 2 Identify
and choose e-solutions
1. Describe the Situation
3. Describe Projects
2. Develop Strategy
4. Implement Projects and Evaluate Results
1. Identify and choose business model
2. Identify and choose e-solutions
3. Shape Business plan with Profit Evaluation
To identify and describe specific e-solutions and
actions that may support and strengthen the
chosen business model.
I. Describe possible e-solutions
To evaluate which of the suggested e-solutions is
more attractive, seen in relation to attainment
of the company's goals and easiness of
implementation. This evaluation leads to a choice
of e-solution(s).
II. Choose e-solution(s)
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Phase 2 Develop StrategyWork step 3 Develop
business plan with profitability assessment
1. Describe the Situation
3. Describe Projects
2. Develop Strategy
4. Implement Projects and Evaluate Results
Check list for Develop Strategy
1. Identify and choose business model
2. Identify and choose e-solutions
3. Shape Business plan with Profit Evaluation
(The checklist is the last activity and is meant
as you own control on the work and results from
developing strategy).
To further describe the chosen e-solutions and
the action plans for implementing the e-solutions
I. Develop Business plan
To provide an estimate on profitability when
implementation of the chosen e-solution(s) is done
II. Conduct profit evaluation of the business plan
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Content

• What are the opportunities and threats from
  e-Commerce?
• What is the purpose of developing an e-strategy?
• What is the e-strategy Toolkit?
• What are the different phases in the e-strategy
  work?
• 1. Describe the Situation
• 2. Develop Strategy
• 3. Describe Projects
• 4. Implement Projects and Evaluate Results

28
Phase 3 Describe Projects purpose and results

• The purpose of this phase is to translate the
  action plans which you described in the previous
  phase, into detailed project plans which will
  realise the e-strategy.
• The most important results from this phase
• The company has organised and planned the
  projects for implementing the chosen
  e-solutions

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Phase 3 Describe Projects overview of activities
Phases
Work steps
Activities
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Phase 3 Describe Projects Work step 1 Identify
and Describe Projects
1. Describe the Situation
3. Describe Projects
2. Develop Strategy
4. Implement Projects and Evaluate Results
(The check list is the last activity and is meant
to be your own control to ensure that the project
description is satisfactory (both process of
following the work steps and the results of the
work).
1. Identify and Describe Projects
Checklist for Describe Projects
I. Describe Projects
Project 1
With these activities, you must plan the projects
which are necessary in order to implement the
selected e-solution. The activities have a dual
purpose 1. As a tool in planning projects (phase
3 of the e-strategy work "Describe Projects") 2.
As a tool in following up projects (phase 3 of
the e-strategy work "Implement Projects and
Evaluate Results")
Project 2
Project 3
Project 4
Project 5
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Content

• What are the opportunities and threats from
  e-Commerce?
• What is the purpose of developing an e-strategy?
• What is the e-strategy Toolkit?
• What are the different phases in the e-strategy
  work?
• 1. Describe the Situation
• 2. Develop Strategy
• 3. Describe Projects
• 4. Implement Projects and Evaluate Results

32
Phase 4 Implement Projects and Evaluate Results
purpose and results

• The purpose of this phase is to ensure that the
  company achieves the set goals by implementing
  the e-strategy.
• The most important results from this phase
• The projects are controlled so that they
  contribute in the best possible way towards
  achieving the goals of the business
• Sensible routines for revision and updates of the
  company goals and e-strategy

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Phase 4 Implement Projects and Evaluate
Results overview of activities
Phases
Work steps
Activities
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Phase 4 Implement Projects and Evaluate Results
Work step 1 Implement Projects
1. Describe the Situation
3. Describe Projects
2. Develop Strategy
4. Implement Projects and Evaluate Results
1. Implement Projects
Check list for Implementing Projects and Evaluate
Results
(The checklist is the last activity and the
purpose is to control the implementation and the
gain in completing phase 4. Implement Projects
and Evaluate Results)
The purpose of this step is to establish
responsibility and routines for following up
goals, strategies, projects and the day to day
follow up on the business
I. Implement projects and evaluate results
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Now what ?

• If you think that the Toolkit could be useful
  for you, we suggest that you do the following
• Download the Toolkit to your PC.
• Download the Toolkit which has been completed
  with an example company (The Reference Toolkit).
• Good Luck !