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E-Business Strategies and Development
Prof.Dr. Yang DehuaSchool of Economics and ManagementTongji University
Outlines
Competition Strategies Planning Fundamentals Implementation of Changes Developing Business Solutions Implementation of e-Business Information S
ystems
Competition Strategies
Pressures Being Faced by Enterprise 3Cs/4Cs
Rapid Development of the Internet technologies
Agile Companies and Virtualization The New Economy
Business Strategies—Ends/Means
Vision - Ends Mission - Means Goals/objectives - Ends Policies – Elements of guidance Business rules – Elements of guidance Environmental analysis - Influences Courses of action - Means
Strategic Use of IT
Strategic Uses of Information Technology Strategic Information Systems The Main Lever in Modern Enterprises Examples
Planning Fundamentals
Organizational Planning Team building,modeling, and consensus Evaluating what an organization has accomplish
ed and the resources they have acquired Analyzing the environment(PESTEL) Anticipating and evaluating the impact of future
development
Components of Organizational Planning
Building a Shared Vision Deciding on What Goals They Want to Achi
eve Making Strategies Deciding What Actions to Take to Achieve
Their Goals
Components of Organizational Planning
Analyze the organization’s Environm
ent
Forecast Internal & external Developm
ents
Analyze accomplishments and resour
ces
Team building,modeling, and
consensus
Establish: Vision Mission Goals O
bjectives
Articulate the organizational plan
Develop Implementation methods
& controls
Develop Strategies Policies& Tacti
cs
Methodologies of Organizational Planning
The Scenario Approach Virtual world exercises Environment development(trends):
Technology Competitive imperatives Deregulation Customer sophistication/expectations Others
Methodologies of Organizational Planning
SWOT Analysis External Internal
Business Models Conceptual framework that expresses the underl
ying economic logic and system that prove how an enterprise can deliver value to customers at an appropriate cost and make money
Business Models
Components of Business Models Customer value Scope Pricing Revenue resource Connected activities Capabilities Sustainability
Business/IT Planning
Business/IT Planning Alignment
Customer and Business Value Visioning
Business Strategies and Models
Business/IT Strategies and Architecture
Business Application Development and Deployment
Key Insights Key Objectives Priorities
Feedback/Impact
Information Technology Architecture
IT Architecture Technology platform Data resources Application architecture IT organization
Identifying Business/IT Strategies
External D
rivers
Internal Drivers
Global Market Penetration
Product and Service Transformation
Cost and Efficiency Improvements
Performance Improvement in Business Effectiveness
Identifying Business/IT Strategies
Examples Market creator Transaction intermediary Informediary Self-service innovator Supply chain innovator Channel mastery
Identifying Business/IT Strategies
Description of the Model One axis shows the market share relative to the industry l
eader which is always the leftmost circle.The other axis shows market growth rate for the industry.A circle is drawn for each competitor. The size of each circle represents that company's dominance.
Characterize Your EnterpriseThe expert system will position your enterprise on the chart based upon your description of:
Identifying Business/IT Strategies
share of market condition of the market You can trace through t
he supporting analysis and its conclusions, adjusting your input until you are satisfied your description accurately characterizes your enterprise.
Identifying Business/IT Strategies
Stars High growth
High shareBusiness is likely to generate enough cash to be self sustaining. Recommended tactics:
promote aggressively expand your product or service invest in R & D
Identifying Business/IT Strategies
Cash Cows Low growth
High share Business can be used to support other business u
nits. defend & maintain
Identifying Business/IT Strategies
Question Marks High growth
Low share Business requires a lot of cash to maintain mark
et share. invest more cash or, divest
Identifying Business/IT Strategies
Dogs Low growth
Low share Business is a cash trap. focus on short term avoid risky project limited future
Identifying Business/IT Strategies
Importance of P
lanned IS
Importance of Current IS
Transform Strategic
Support Factory
McFarlan and McKenney’s Model
Identifying Business/IT Strategies
Nolan Technology Development
Failure Initiation
Contagion
Decline Control
Maturity
Applications
Time
Business Application Planning
Business Application Planning IT proposals for addressing strategic business pr
oblems Business case for investing in e-business project
s Planning for application development and imple
mentation
Business/IT Architecture Planning
Repository
Business Models
Application Components
E-Business Strategies: SWOT, Goals, Requirements, Constraints
E-Business Processes: Internal & Inter-enterprise, Organizational, Process & Data Models
E-Business Application Architecture: e-Business, e-Commerce,Component-based Applications
Technology Infrastructure: IT Architecture,Component Development Methodology
Implementation Challenges
Implementing Information Technology Impact introduced by implementation User resistance Business continuity management Business process reengineering
Impact Introduced by Implementation
New Business Initiatives
Best Practices
Model Best Practices
Improve Efficiency
Level of Changes
Scope of Business Ch
ange(Examples)Single Fu
nctionCore Proc
essesSupply Ch
ainExtended Sup
ply Chain
Improve Efficiency
Process Reengineering
Redefine Core Business
Change Management
Technology Process People
Operational
StrategicIm
pact on Business
Level of Difficulty/Time to Resolve
High
High
Low
Low
Enterprise Architecture Supplier Partnership System Integrato
rs Outsourcing
Technology Selection Technology Support Installatio
n Requirements
Ownership Design Enterprise
wide Processes Inter-enterprise Proc
esses
Change Control Implementation Management Support Pr
ocesses
Change Leaders Loose/Tight Controls Executive Sponsorship & Support Aligning on Conditi
ons of Satisfaction
Recruitment Retention Training Knowledge Transf
er
The System Approach
The System Approach System Thinking
Input
Poor Sales Management
Inadequate Selling Effort?
Out-of-Date Sales Procedures?
Poor Sales Performance?
OutputProcessing
Control
System Development Cycle
System Development Cycle Systems investigation Systems analysis Systems design Systems implementation Systems maintenance
Information Systems Development Methodologies
Life-Cycle Based Model Requirements Analysis Design Implementation Testing Maintenance
Information Systems Development Methodologies
Prototyping Model Identify the end users’ business requirements Develop business system prototypes
[Prototyping Cycle] Revise the prototypes Use and maintain the accepted business system
[Maintenance Cycle]
Systems Analysis
Systems Analysis Organizational analysis Present systems analysis Functional requirements analysis
Systems Design User interface design Data design Process design
System Specifications
System specifications User interface Database Software Hardware and network Personnel
Implementing Business Systems
Implementation Activities Acquisition of Hardware, Software, and Service
s Software Development or Modification End User Training System documentation System conversion
Hardware Evaluation
Hardware Evaluation Factors Performance Cost Reliability Compatibility Technology Ergonomics Connectivity
Software Evaluation
Software Evaluation Factors Quality Efficiency Flexibility Security Connectivity Language Documentation
Other Implementation Activities
Other Implementation Activities Testing Documentation Training Conversion methods