Chapter Four
Chapter Four
Thinking E-Business
Design: More Than
Technology
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Introduction
Introduction
3 interlocking layers of e-business
e-Business Design
–
What business design can make your customers’ shopping
and service experiences unique and memorable?
–
What capabilities and competencies create rich customer
experiences?
–
In the quest for efficiency, how do you structure your
organization for efficiency?
e-Business App Infrastructure
–
Supports design by providing s/w functionality
–
Strong app infrastructure foundation necessary from which to
deploy e-business apps
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Introduction
Introduction
e-Business Infrastructure
–
structural foundation supporting the app layer
–
is a balance of structure and flexibility
–
harnesses, safeguards, manages, and permits use of
information in ways that are fast, safe and simple
–
comprises the tech, utilities, and services needed for
uninterrupted flow of e-commerce
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3 interlocking layers of e-business
3 interlocking layers of e-business
E-Business
E-Business
InfoStructure
InfoStructure
Scalability
Scalability
Reliability
Reliability
Hosting
Hosting
Storage
Storage
Servers
Servers
Databases
Databases
Middleware
Middleware
Routers
Routers
Site Security
Site Security
Data Security
Data Security
Transaction Security
Transaction Security
E-Business
E-Business
Design
Design
Business Model Scope
Business Model Scope
Customer Selection
Customer Selection
Value Creation
Value Creation
Strategic Control
Strategic Control
Organizational Systems
Organizational Systems
E-Business
E-Business
Infrastructure
Infrastructure
CRM
CRM
e-Procurement
e-Procurement
ERP
ERP
Supply Chain
Supply Chain
Financials
Financials
Selling Chain
Selling Chain
Business Intelligence
Business Intelligence
Portals
Portals
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The Race to Create Novel e-Business
The Race to Create Novel e-Business
Designs
Designs
Getting it right the first time very important
–
right strategy accelerates market penetration and
minimizes cost
–
wrong strategy can cause years of repercussion
Truly great companies use state-of-the-art e-
commerce processes to transform themselves
–
redefine value for customers
–
build powerful e-business designs to outperform
competition
–
understand customer priorities
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The Race to Create Novel e-Business
The Race to Create Novel e-Business
Designs
Designs
Focus no longer limited to process
improvement; focus of change initiatives shifted
to business redesign
–
Retail drug industry
Success depends on how quickly a company can
formulate novel business designs and adapt
them to its markets
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Step 1: Self Diagnosis
Step 1: Self Diagnosis
Assess impact of recent customer, business and
technological trends
–
Has the recent wave of tech innovation created new ways of
doing business and reorganizing priorities within your firm?
–
Is your company responding to changing customer
expectations?
–
Is your company willing to question and change countless
industry assumptions to take advantage of new opportunities
while also preserving investments in people, apps and data?
–
Is your company successful at lowering operating costs while
making complex business apps adaptive and flexible to
change under the relentless pressure of time to market?
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Step 1: Self Diagnosis
Step 1: Self Diagnosis
Innovator or market leader: All answers yes
Early adopter or visionary: Most answers yes
–
Charles Schwab
Silent majority: Few answers yes
–
Pragmatists, Old-guard Conservatives, and Die-
hard Skeptics
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Step 2: Reverse the Value Chain
Step 2: Reverse the Value Chain
Greatest challenge in e-business: linking
emerging tech to new business design
Managers find creating new business designs
difficult with emerging technologies and
customer needs
–
trained to concentrate on improving products,
increasing market share, and growing revenues
–
distinction between products and services blur in e-
business world
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Step 2: Reverse the Value Chain
Step 2: Reverse the Value Chain
Successful companies invent value, not just add
value
–
outside in vs. inside out
–
customer requirement important in outside in
approach
–
Starbucks invented value where traditional
companies did not by creating business around
gourmet coffee
Outside-in, customer centric approach essential
in times of great structural transition in economy
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Step 2: Reverse the Value Chain
Step 2: Reverse the Value Chain
In-house
Core
Competencies
Rigid
Infrastructure/
Processes
Products/
Services
Channels Customers
Traditional Business Design
Outsourced/
In-house Core
Competencies
Flexible
Infrastructure/
Processes
Products/
Services
Integrated
Channels
Customers
Needs
e-Business Design
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Step 3: Choose a Focus
Step 3: Choose a Focus
Service excellence
–
Delivering what customers want with hassle-free
service and superior value
Operational excellence
–
Delivering high-quality products quickly, error free,
and for reasonable price
Continuous-innovation excellence
–
Delivering products and services that push
performance boundaries and delight customers