Chp13 E Blueprint

Chapter ThirteenChapter ThirteenTranslating e-Business Strategy into Action: E-Blueprint Formulation

www.ebstrategy.com- 2 -© e-Business Strategies, Inc.

IntroductionIntroduction

E-Business blueprints the missing link between strategy and execution

An e-Business blueprint is the whole fabric of applications, processes, and services that shape and sustain customer value

e-Commerce Value Proposition

What is the customer looking for?

Strategy Formulation

e-Business Application Foundation

What applications are needed to facilitate value

creation?

e-Blueprint Planning


Setting Stage for e-Blueprint PlanningSetting Stage for e-Blueprint Planning

Today’s e-business efforts– Vague ideas substitute for cohesive management and well-

developed plan– Intuition, not reason, directs development of new plans

With rising tech spending, e-blueprint planning more important and difficult

– Tech investments not linked to definable e-strategy– Difficult to make tech-related decisions– Analysis and implementation of tech projects meeting stated

objectives rare– Confusion about tech due to high market activity

Strategic alignment between business models and decisions on tech spending seen necessary


Focusing on e-Blueprints, Not Single Focusing on e-Blueprints, Not Single ProjectsProjects

Today, e-business projects being treated the same as any other initiative

– Each e-effort undertaken as one project at a time– No forethought of achieving economies of scale and scope

or shared resources– No shared strategic vision in place– Mergers and acquisitions compounding problems

Causing serious app infrastructure problems

E-business blueprint planning hurdles– Lack of political will– Departmental resistance giving precedence to individual

projects over enterprise-wide need– Microsoft alternative to single-project mentality highly

successful


Focusing on e-Blueprints, Not Single Focusing on e-Blueprints, Not Single ProjectsProjects

Work backwards

Time

Thinking Ahead Approach

An e-Blueprint combines a clear understanding of where you need to be

with what needs to be done.

Go

al

Where do we need to be 3 years from now?

Where should webe next year?

You are here

And next year?

Time

Incremental Approach

An incremental approach to application development will not work in the e-

Business world.

Go

alWhy some companies stagnate... Why some companies grow...

And next year?

You are here


Beginning the e-Blueprint JourneyBeginning the e-Blueprint Journey

e-Business Design

Customer Drivers

Technology Drivers

Organizational Drivers

Business Drivers

e-Business Aggregate Blueprint

Individual Application Framework

Projects

Corporate Goals &

Objectives

Technology/Innovation Strategy

Customer/Market Strategy


Beginning the E-Blueprint JourneyBeginning the E-Blueprint Journey

Approaches for e-blueprint planning– Short-term

• Patch together an e-blueprint plan incorporating the company’s existing apps

– Long-term• Start over with an entirely new group of apps as

the core piece of its e-blueprint plan


To Patch or Not to PatchTo Patch or Not to Patch

Three challenges when deciding to patch or not to patch existing infrastructure

– Integration of existing infrastructure– Building seamless infrastructure on a fragmented

app base• Front-end experience for customers must be a

seamless, well-integrated service delivery platform

– Knowing when to walk away and start over


Evaluating Your Company’s e-Business Evaluating Your Company’s e-Business Blueprint ProcessBlueprint Process

Red flags indicating e-blueprint process in trouble

– Platform projects take too long– Many substandard projects in pipeline for years– All projects being implemented are long-term,

multibillion dollar, big bang efforts– Almost all projects reinventing the wheel– Too much procrastination when making decisions– Project interdependence difficult to manage– Lack of communication and business side buy in


Basics of e-Blueprint PlanningBasics of e-Blueprint Planning

e-Blueprint Creation

Create a Prioritization Framework

• How should you invest in framework integration?

• What framework projects are high, medium and low priority?

• What set of framework projects do we need to initiate?

e-Blueprint Facilitation

Make a Business Case for Action

e-Blueprint Execution

Tactical Implementation

• What is our chosen path?

• Are we following our plan?

• How do we keep the plan relevant?

• Who develops the framework business case?

• How can frameworks be aligned to achieve business goals?

• Can we make a compelling case to decision makers about the need for change?

Key Objectives

Action Plan

Feedback

Feedback


E-Blueprint Creation: Defining the Blueprint E-Blueprint Creation: Defining the Blueprint in Your Companyin Your Company

Five steps of e-blueprint creation1. Establish aim of overall e-business design

2. Establish scope of the effort

3. Classify and analyze the app frameworks

4. Prioritize what needs to be done

5. For each app framework, design the execution plan



Step 1: Establish aim of overall e-business design



Step 2: Establish the scope of the effort– Map your ebusiness design into 3 types of

improvement• Process improvement• Strategic improvement• Business transformation

Strategic Improvement Business Transformation

Focus of Change Build exceptional internal capabilities

Gain unusual insight into the customer and market needs

Skill Development Distinctive process thinking Excellent strategic decision making

Implementation Approach Highly linear Entrepreneurial

Measuring Progress Efficiency targets Market share



Step 3: Classify and analyze the app frameworks



Example of App Framework Project: B2B portal• Credit• Availability• Price• Web-based

order capture tools

• Customer prioritization

• Price management and invoicing

• Returns and claims• Service & Warranty

• Payment• Strategic

Profitability analysis

• Multi sourcing• Multi shipping• Distribution

B2B Portal



Step 4: Prioritize what needs to get doneScreen 1

Screen 2Screen 3

phase 1 phase 2 phase 3 phase 4

Small Wins Rapid

Application Module

Development and Deployment

Prioritize Specific Projects within

Application Framework

Define Each Application

Framework - Scope and Scale

Define the Aggregate

Blueprint - High-level Design



Step 5: For each app framework, design execution

Required Capabilities

Driving Forces Implications

Fast and Responsive

Changing customer expectations; accelerating value migration

Shorter time-to-market cycles

High execution productivity

Scarce resources; wrong moves can destroy company

Make better management decisions about resource allocation and project selection

Flexible configurations

Continuous innovation; changing customer needs

Make architectural decisions that allow flexibility

Innovation Demanding customers; intense competition

Creativity combined with integrated solutions



Elements of an execution map

E-Business Blueprint

Execution Plan

Development Blueprint

Customer Blueprint

Integration Blueprint

People and Critical

Skills Map

Technology Map

Project & Application

s Map

Process Reengineering

Map

Infostructure Map

Legacy Integration

MapApplication Integration

Map

Customer Needs Profile Map

Adoption Management

Map

Product Versioning

Map

Vision & Priorities

MapDevelop-

ment Tactical

Plan

Integration Tactical Plan

Customer Experience

Tactical Plan0

Application Framework

Map


e-Blueprint Facilitation: Making a Business e-Blueprint Facilitation: Making a Business Case for ActionCase for Action

Execution Target:Focused on Customer

Needs and Change

Legacy Infrastructure

New Framework Investments

Evergreen

Blueprint

Business Case

Projects in Pipeline

Customer Pain

Competition



Who develops a business case?– Today, technology influences business design– Blueprint sponsors

• CEO, President, COO or GM• CIO• CFO• Operating VPs• Board

– Dangerous to let consulting partners or IT functions to “bet-the-company” app infrastructure in isolation

• Decisions should be participatory• LOB managers, marketing execs, and corporate leaders

should join IT professionals in tech review and decision-making process



Key elements of an e-Business case

How?(will we get there)

Why?(will we win)

Where?(are we going)

When?(will we get there)

Idea Customer selectionValue proposition

Technology selectionScope selection Project Selection

Channel selection Partner selection Supplier selection

DifferentiationMetrics



Changing a firm’s business strategy tantamount to committing money and HR in face of business risk and uncertainty

– Preliminary assessment of scope can mitigate concerns

Elements of preliminary scope– Organizational– High-level app architecture– High-level project plan– Resource requirements

Detailed feasibility analysis next– Financial– Organization and cultural– Technical– Suppliers, partners, customers



E-Business business case checklist– Setting business direction should be preceded by

realistic look at the marketplace and at a company’s circumstances

– After that, responsible mgrs must follow these guidelines

• Develop a goal statement• Set measurable goals• Set objectives• Develop short- and long-term action plans• Gain approval


The Serious Business of e-Blueprint The Serious Business of e-Blueprint PlanningPlanning

Aligning strategy with e-business execution a serious undertaking

E-blueprint necessary– Builds creative work environment in which steady stream of

high-potential ideas can emerge and be manifested through enterprise’s infrastructure and strategy

Top mgmt should play strong role in the blueprint-planning process

– Blueprint decisions among most important company decisions

– Cuts across several product lines or divisional boundaries– Frequently requires resolution of cross-functional conflict


Alignment in Today’s EnvironmentAlignment in Today’s Environment

75% of e-commerce projects are bound to fail because of a lack of good business planning and unreal expectations of what new technologies can do for their business. [Gartner Group]

Primary Cause of Misalignment

40% of IT purchasing decisions are made by Line of Business Managers (e.g., heads of marketing). The CIO and IT staff are

then responsible for implementing the technology to fulfill that department’s business goal.


Communicate, Communicate, CommunicateCommunicate, Communicate, Communicate

• Create an elevator pitch

• Create a cross-functional e-blueprint team

• Take baby steps

• Clearly communicate plans and benefits of the new e-blueprint

• Document success and publish results


The Problem of LeadershipThe Problem of Leadership

Lack of consistent sponsorship from top mgmt the single biggest impediment to e-business blueprint planning

Bad planning due to overdelegation

Some responsibilities cannot be delegated– Sitting on the blueprint committee– Approving strategic direction and corporate vision

it supports– Setting project’s goals– Participating in deployment process– Personally reviewing performance against

strategic goals


Questions on Executive CommitmentQuestions on Executive Commitment

• Is senior-mgmt involved in e-business decision-making?

• Is top mgmt selling value of integration to decision makers?

• Has the company recognized that improving e-business investment mgmt is a long-term process and should be planned accordingly?

• Has the company ensured that e-business investment decisions are strongly linked to strategic business objectives?

• Has the company built a shared e-business vision through various mgmt levels?


Why e-Business Initiatives FailWhy e-Business Initiatives Fail

Design app blueprint on your own, in your own dept

Don’t do homework or auditing of company problems

Don’t bother learning from other companies

If you assemble a task force, meet several times in private

Don’t seek outside help and if you do, hire a brand-name guru who knows nothing about technology or blueprint management

When mgrs have questions, get defensive, rail at these “cynics” and “negative thinkers” who don’t get it


Why e-Business Initiatives FailWhy e-Business Initiatives Fail

Don’t worry about communicating

Blueprint doc is 3 binders thick, full of checklists and spreadsheets

Don’t bother with process or project mgmt

Don’t waste time taking baby steps to execute

Don’t factor in periodic feedback as an opportunity for course correction

Don’t factor in existing projects

E-Business E-Business Strategies, Inc.Strategies, Inc.

www.ebstrategy.comwww.ebstrategy.com

[email protected]@ebstrategy.com

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Chp13 E Blueprint