Preparing the Online Business

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-engineeringBPR

• 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

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Business Process Re-engineeringBPR

• 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

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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

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Analysis

• Goals
• Lowest product price
• Highest service
• Cost reduction
• Sales
• Location
• Own internet connection
• ISP

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Analysis

• Shopping
• Ease to use
• Attractive
• Customer profile
• Tracking visits navigation
• Customer database
• Public relation
• Advertise and promote

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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

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Plan

• Performance review method
• Services products fit into customers 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?

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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