Chapter 5 Ebusiness Strategy

1
Chapter 5E-business Strategy
2
Learning objectives

• Follow an appropriate strategy process model for
  e-business
• Apply tools to generate and select e-business
  strategies
• Outline alternative strategic approaches to
  achieve e-business.

3
Issues for managers

• How does e-business strategy differ from
  traditional business strategy?
• How should we integrate e-business strategy with
  existing business and IS strategy?
• How should we evaluate our investment priorities
  and returns from e-business?

4
Michael Porter on the Internet

• The key question is not whether to deploy
  Internet technology companies have no choice if
  they want to stay competitive but how to deploy
  it.

Porter, M. (2001) Strategy and the Internet,
Harvard Business Review, March 2001, 6278.
5
Different forms of organizational strategy
Figure 5.1  Different forms of organizational
strategy
6
Relationship between e-business strategy and
other strategies
Figure 5.2  Relationship between e-business
strategy and other strategies
7
A generic strategy process model
Figure 5.3  A generic strategy process model
8
Dynamic e-business strategy model
Figure 5.4  Dynamic e-business strategy
model Source Adapted from description in
Kalakota and Robinson (2000)
9
Elements of strategic situation analysis for the
e-business
Figure 5.5  Elements of strategic situation
analysis for the e-business
10
What happens where there is no e-business
strategy?

• Missed opportunities for additional sales on the
  sell-side and more efficient purchasing on the
  buy-side
• Fall behind competitors in delivering online
  services may become difficult to catch up, e.g.
  Tesco, Dell
• Poor customer experience from poorly integrated
  channels

11
Adoption steps of e-business services
Figure 5.6  Adoption steps of e-business services
12
Summary applications portfolio analysis for the
B2B Company
Figure 5.7  Summary applications portfolio
analysis for The B2B Company
13
SWOT analysis for the B2B company
Figure 5.8  SWOT analysis for The B2B Company
14
Customer demand for e-marketing services for The
B2B Company
Figure 5.9  Customer demand for e-marketing
services for The B2B Company
15
Competitive threats acting on the e-business
Figure 5.10  Competitive threats acting on the
e-business
16
Porters five forces
17
Activity Impact of Internet

• For one of the industries below, assess how the
  Internet has changed the competitive forces, e.g.
  has it increased or decreased power of suppliers
  and customers?
• Industries
• Banking
• Supermarkets
• Oil industry
• Rail industry

18
Elements of strategic objective setting for the
e-business
Figure 5.11  Elements of strategic objective
setting for the e-business
19
Direct and indirect Internet contributions for
fast growth companies in the US
Figure 5.12  Direct and indirect Internet
contributions for fast-growth companies in the
USA Source PricewaterhouseCoopers (2000)
20
Grid of product suitability against market
adoption for transactional e-commerce (online
purchases)
Figure 5.13  Grid of product suitability against
market adoption for transactional e-commerce
(online purchases)
21
Elements of strategy definition for the
e-business
Figure 5.14  Elements of strategy definition for
the e-business
22
Strategic options for a company in relation to
the importance of the Internet as a channel
Figure 5.15  Strategic options for a company in
relation to the importance of the Internet as a
channel
23
Assessment of risk for market and product
development for the B2B company
Figure 5.16  Assessment of risk for market and
product development for The B2B Company
24
New product development Smile online banking
(www.smile.co.uk)
25
Dabs.com (www.dabs.com)
Figure 5.18  Dabs.com (www.dabs.com)
26
Elements of strategy implementation for the
e-business
Figure 5.19  Elements of strategy implementation
for the e-business