Tài liệu E-business 2.0: Roadmap for Success! pdf

Visionary Firms and E-business Visionary companies understand current business designs are inadequate for doing business in the e- commerce era – Can buy a $999 built-to-order PC from De

Moving from E-commerce to E-business

Why Study E-business?

Promise:

Streamlined Business

Network Infrastructure Adaptive Supply Chains

Process Automation

Lack of Framework

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Consequences of not Studying E-business?

Poorly Designed Business Processes

Persistent Channel Conflicts & Cross- Department Tensions

Locally Optimized Business Processes

Order Fulfillment

ERP CRM

Procurement

Incompatible Projects

Resistance

to Changes

Need for a Robust Framework

E-business Course

Goals

Rationalize buzzwords

Recognize commonalties across business environments

Framework for designing more effective new systems

Information Technology (IT) changes, but

management principles persist!

What are the key ideas

of e-business strategies and how do they

translate into business design to align

e-IT with business needs?

Framework for Book

Key Take-Aways

The goal of e-commerce is to reduce transaction costs

Labor & Capital

Customer Feedback

for control

E-business

Network of activities

Flow Units (Raw material, people,

information, etc.) Resources

Process Analysis & Management

Processes

A business process is a network of activities that takes one or more inputs and creates an output

of value to customer

E-Business E-business: Linking Today’s Business with

E-business in third phase today:

– Psychology of first two phases: technology would trump experience; future would belong to upstarts

as eToys– Psychology of this phase: experience, distribution, margins are worth something

Key Take-Aways

E-business is Changing All Industries

Insurance Petrochemical/ Process

Transportation

Manufacturing

Health Care Retail Consumer/ Services Entertainment/ Hi-Tech

What differentiates the e-business efforts of leading

companies from the pack?

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Visionary Firms and E-business

Visionary companies understand current business designs are inadequate for doing business in the e- commerce era

– Can buy a $999 built-to-order PC from Dell online but not a customized $3000 color copier from Xerox

– Cisco can overhaul its product line every 2 years, but Kodak cannot seem to deliver rapid innovations to meet changing customer requirements

Visionary companies have integrated operations to support changing customer requirements

– E-customers’ needs, tastes, and expectations transforming shape of the enterprise

Necessary: fusion of business designs, processes, apps, and systems on an unprecedented scale

Visionary Firms and E-business

Management at leading companies often ask:

– How will ecommerce change our customer priorities?

– How can we construct a business design to meet these new customer priorities?

– What kind of new apps infrastructure do we need

to orchestrate the new business design?

– What short-term and long-term investments in people, partners, and tech must we make to survive, let alone thrive, in the new economy?

– E.g., United Parcel Service (UPS)

Systems-based

– Capacities that are broad-based involving the entire supply chain and provide advantages of short lead times and customization.

– E.g., Dell Computer

Organization-based

– Capacities that are difficult to replicate and provide abilities to master new technologies

– E.g., Cisco Systems

Let’s look at a few visionary companies….

Founded in 1907 to become world’s largest express and package delivery firm

– 13.2 million packages per day, 3 billion/year – 344,000 employees; $29.8 billion revenue – 11th largest airline; Largest cellular user in the world

Initially a laggard in use of IT In 1980s and throughout the 90s, spent billions of dollars putting in place

– Tracking and tracing technology – Frontline handheld technology – E-commerce capabilities

– Huge customer databases

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Dell - Build to Order E-channel

– More efficient, lower-cost sales cycle

Cisco Systems

Most successful “New Economy” firm with

“Old Economy” discipline and operational excellence

Cisco has propagated IT throughout the organization, in every major function

Significant investments in back office ERP ($30M) and Internet/Intranet ($100M)

Almost $400M annual savings from use of technology

E-business use is a major competitive long-term strategy for Cisco

Made it very difficult for slow-moving, traditional companies (Lucent, Nortel) to catch up

Fit among strategy, business model, systems

Key Take-Aways

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Ten Rules of E-business

Rule 1 Technology is no longer an afterthought in forming business

strategy, but the actual cause and driver

Rule 2 The ability to streamline the structure, influence, and control of

the flow of information is dramatically more powerful and effective than moving and manufacturing physical products

cost-Rule 3 Inability to overthrow the dominant, outdated business design

often leads to business failure

Rule 4 E-commerce is enabling companies to listen to their

customers and become either “the cheapest,” “the most familiar,” or “the best”

Rule 5 Don’t use technology just to create the product; use it to

innovate, entertain, and enhance the entire experience surrounding the product, from selection and ordering to receiving and service

Ten Rules of E-business

Rule 6 The business design of the future increasingly uses

reconfigurable e-business community models to best meet customers’ needs

Rule 7 The goal of new business designs is for companies to create

flexible outsourcing alliances that not only off-load costs but also make customers ecstatic

Rule 8 For urgent e-business projects its easy to minimize

application infrastructure needs and to focus on the glitzy front end apps The oversight can be costly in more ways than one

Rule 9 The ability to plan an e-business infrastructure course swiftly

and to implement it ruthlessly are key to success; ruthless execution is norm

Rule 10 The tough task for management is to align business

strategies, processes, and applications fast, right, and all at once; Strong leadership is imperative

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Ten Rules of E-business: Rule 1

Technology is no longer an afterthought in forming business strategy, but the actual cause and driver

– Conventional, risk-averse businesses cannot ignore e-business

– E-commerce poses most significant challenge since advent of computing

– Most execs unaware of impact of these changes– Need to see business differently; maintaining status quo not a viable option

Ten Rules of E-business: Rule 2

The ability to streamline the structure, influence, and control of the flow of information is dramatically more powerful and cost-effective than moving and

manufacturing physical products

– Core driver of structural transformation of business – Few companies have info-centric business designs for continuous business change and innovation

– Changing info flow requires changing product mix and ecosystem

• DEC’s demise – Most companies unable to cannibalize existing business structures, reallocate assets to compete with startups

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Ten Rules of E-business: Rule 3

Inability to overthrow the dominant, outdated business design often leads to business failure

– CompuServe & Prodigy Vs AOL

Not the earliest adopters, but the most serious, eventually prevail

– AOL outlasted, outwit, and outsmart competition

Often in the early phase, there is an “arms race” between competitors

Need to convert technology advantage to process advantage to business model advantage

Deeply-embedded innovations are difficult to implement – but also to copy!

E-Business Value Chain Disaggregation and

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The Road Ahead: Steps to a New Beginning

Six steps of disaggregation and reaggregation

– What is the new industry structure?

• Configuration – What does the digital consumer want?

• Value in terms of experience and expectations – What are the new economics?

• How to convert value creation into revenue?

• How do you engineer the end-to-end value stream?

– How do we reorganize our business?

• Right partnerships – Where is the value?

• Integration – How do we implement change?

• New generation leaders who understand how to create digital future by design and intent, not by accident

Challenging Traditional Definitions of Value

Customers need businesses to improve

– Speed of service – Convenience – Personalization – Price

Managers should ask how they can use technology to create new value proposition for the customer

– Domino’s Pizza, Dell, Amazon.com

Ability to view world from customers’ perspective prevents visionary companies from starting in wrong place and ending up at wrong destination

– Market segmentation analysis difficult to execute in turbulent environment

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Changing the Notion of Value: E-commerce

Web and ecommerce have accelerated value innovation in speed, convenience,

personalization and price dimensions of a service

– Changed underlying value proposition

Customer’s looking for cheapest, most familiar,

or best quality product

– A product or service that is 98 percent as good, unfamiliar or costs 50 cents more will not survive– Companies following such middle-of-the-road strategies will underperform

Ten Rules of E-business: Rule 4

E-commerce is enabling companies to listen to their customers and become either “the

cheapest,” “the most familiar,” or “the best”

– “The cheapest” not synonymous with inferior quality

• Southwest’s “No Frills Flying”

• Wal-Mart’s “Everyday Low Prices”

– “The most familiar” means customers know what

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Ten Rules of E-business: Rule 4

– Being “the best”

• Reinventing service processes to enhance quality

• Turning company on a dime to move in more profitable directions

• Raising relationships with customers and suppliers to unprecedented levels of

cooperation and trust

• Amercian Express’ Return Protection Plan

Ten Rules of E-business: Rule 5

Don’t use technology just to create the product; use it to innovate, entertain, and enhance the

entire experience surrounding the product, from selection and ordering to receiving and service

– Amazon.com in the book retailing industry identified new source of customer value by streamlining consumers’ buying experience– Microsoft anticipated changing customer experiences and reengineered several value chains: Travel (Expedia), Automotive (CarPoint), Real Estate (HomeAdvisor), Finance (Investor)

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Ten Rules of E-business: Rule 5

CEOs must understand the threat posed by value migration

– Is there an Amazon.com that can squeeze margins in your business?

– If not, can you create one “destroy your business” initiative at GE?

– Are any new entrants in your industry leveraging Web to rewire customer experience and change service expectations?

CEOs must understand how to manage in a fast-moving environment

Ten Rules of E-business: Rule 6

The business design of the future increasingly uses reconfigurable e-business community

models to best meet customers’ needs

– Competition no longer between companies but between Business Webs (BWs)

• Auto-By-Tel vs Big Three in the car industry

Cost

Quality

DeliveryFlexibility

Manufacturing Administration

HR Accounting

IT

Do not outsource core competence

Focus: efficiency and cost reduction

Outsource critical tasks

Focus: Time-to-market, Market position via

ease of doing business

1 st Gen:

Cannot do everything well

and Web savvy

Co-create critical tasks

Focus:

Market position via ease of doing

business (e.g, GE in India)

Competencies

E-Business Creating the New Technoenterprise:

Integrate, Integrate, Integrate

App integration key to business

e-– Not easy, requires major app overhaul for integrated front-end/back-end

infrastructure– Integrated app architecture critical with advent of e-

commerce– Threat of losing customers looming large with advent of new market entrants

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Ten Rules of E-business: Rule 7

The goal of new business designs is for companies to create flexible outsourcing alliances that not only off-load costs but also make customers ecstatic

E-business enabled outsourcing a big deal

– Pressure by shareholders for double-digit revenue growth

– CEOs have already reengineered, downsized and cut costs; now looking at technology to transform business model and deliver results

Ten Rules of E-business: Rule 8

For urgent e-business projects its easy to minimize application infrastructure needs and

to focus on the glitzy front end apps The oversight can be costly in more ways than one

– Decision to adopt e-business architecture is a business, not technical, decision

The lack of attention to the back-office systems and process side of E-business is the primary

reason for many project failures

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Ten Rules of E-business: Rule 9

The ability to plan an e-business infrastructure course swiftly and to implement it ruthlessly are key to success; ruthless execution is norm

– Most e-business strategies in dire straits even before they start

– Managers often don’t understand complexity of converting strategy into a working architecture

The goal of every successful e-business strategy is help the firm either save or make

money

Ten Rules of E-business: Rule 10

The tough task for management is to align business strategies, processes, and

applications fast, right, and all at once; Strong leadership is imperative

– Many managers good at planning strategy and looking at things strategically but not at

implementing strategy– Implementation takes leadership, commitment and backbone

– “Creative destruction” or breaking free from habits

of past necessary

Key Take-Aways

Current Issues in E-Business

Effectively consolidating the processes and IT operations resulting from mergers

Developing flexible supply chains – physical, information and financial to enable mass customization of

products and services

Managing global supplier, production and distribution networks

The customer oriented integration using technology to combat the increased “commoditization” of

products/services Using self-service to cut internal and external operating costs

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Are You Ready?

Does senior management understand?

– Implementation side of strategy?

– That entire business platform is being transformed

by new technology that tightly integrates internal and external processes?

– The risks, challenges in integrating and implementing enterprise apps necessary for an e-business enterprise?

– What it takes to build inter-enterprise, supported processes, such as SCM, that form backbone of ebusiness?

tech-– Do you have baggage tech-– legacy apps, calcified processes, bureaucratic controls and inflexible business models

Fundamental Questions in Each Phase

• How will e-commerce change our customer priorities?

• What new things do our customers want?

• How can we construct a business design to meet these

new customer priorities?

• What kind of new applications infrastructure do we

need to orchestrate the new business design?

• What short-term and long-term investments in people,

partners, and technology must we make to survive, let alone thrive in this new environment?