Tài liệu Digitizing the Business: e-Business Patterns - Chapter 4 doc

3 interlocking layers of e-business E-Business Scalability Reliability Hosting Servers Databases Middleware Site Security Data Security Transaction Security E-Business Design Business M

Chapter Four

Thinking E-Business Design: More Than Technology

– 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

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

3 interlocking layers of e-business

E-Business Scalability Reliability

Hosting

Servers Databases Middleware

Site Security Data Security Transaction Security

E-Business Design

Business Model Scope Customer Selection Value Creation Strategic Control Organizational Systems

E-Business Infrastructure

CRM e-Procurement ERP Supply Chain Financials Selling Chain Business Intelligence Portals

The Race to Create Novel e-Business

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 statof-thart

e-commerce processes to transform themselves

– redefine value for customers

– build powerful e-business designs to outperform competition

The Race to Create Novel e-Business

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

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?

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 hard Skeptics

Die-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

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

Step 2: Reverse the Value Chain

In-house Core Competencies

Rigid Infrastructure/

Flexible Infrastructure/

Processes

Products/

Services

Integrated Channels

Customers Needs e-Business Design

Step 3: Choose a Focus

– Delivering products and services that push

performance boundaries and delight customers

Service Excellence

Service Excellence

Involves selecting a few high-value customer

niches and then making a concerted effort to

serve them well

– Requires commitment to CRM

Operating principles of service excellence

– prepare for the unforeseen

– gather and maintain all up-to-date, accurate

business and economic information you need,

where and when you need it

– user customer contact mgmt

– develop corporate philosophy about customer

service

Operational Excellence

Operational Excellence

Involves providing lowest-cost goods and

services possible while simultaneously

minimizing problems for customer

Continuous-Innovation Excellence

Continuous-Innovation Excellence

Involves not only providing best-possible

products and services but also offering

customer more exciting features and benefits than competitor

– Microsoft, Sun Microsystems and Nike

– Downfall of AT&T, Eastman Kodak, Sears and GM due to lack of technological innovation

Key principles

– risk-oriented mgmt style

– growth by mergers and acquisitions

– market-education style

Step 4: Execute Flawlessly

• How can you move from where you are today

to where you want to be?

• How do you integrate and tailor your legacy infrastructure to meet new e-business

requirements?

• Execs must be willing to cut losses and

abandon important current projects that do

not support the goals of the e-business design

Service Excellence at American Express

Business transformation of the mid 1990s resulted in

new e-business design concentrating on mgmt of

Investing $1 billion annually in the construction of a

sophisticated service infrastructure

– Within financial services industry, this can provide means to

Service Excellence at American Express

Travel Services

Credit Cards

Banking

Financial Planning

Online Travel Services

Membership Rewards

Private Banking

Life Path Planning

Integrated Financial Services

The Way It Was The New Way

Operational Excellence at Dell

Build-to-order e-business design

– low-cost manufacturing and fast-cycle product

$3 Million/day

36 countries 200+ Premier Pgs

400k users/wk

January

$1 Million/day

March October

July

 Dell starts selling systems online

 80,000 online user sessions per week

June

www.dell.com site launched with technical support content and e-mail gateway

to site

1998

 Focus efforts

on Corporate Dell Online History

The Dell eCommerce System

Integrated customer experience

Value proposition

Shopping and buying

Service and support

Loyalty/

relationship

Product services Price Direct model

Dell

Configuration and shopping

Electronic orders

Order status

shooting Value-added

Trouble-Premier services

Personalized experience

Continuous Innovation at Cisco Systems

At Cisco, business design centers on the core belief in what

continuous innovation demands from organizations attempting it

– build on change, not stability

– organize around networks, not a rigid hierarchy based on

interdependencies of partners - not self-sufficiency

– construct operations on tech advantage, not old-fashioned bricks n mortar

Continuous innovation via acquisitions

– Acquisitions cornerstone of its business strategy, to survive larger

competitors

– Identify companies that help enhance product line and keep up with changing marketplace

– Make sure the acquisition is assimilated quickly

Extended Enterprise model to support the innovation-excellence

Installation and Configuration

Documentation

Customer Care Results

June 1998

• Over 70% questions handled on line

• Dramatic growth—over 1.1million logins per month

• 25% higher customer satisfaction

• 98% accurate, on-time repair shipments

• Annual savings of $365 m Headcount $75 m

Software download $250 m Document publication $40 m

Lessons from e-Business Design

Be customer focused

Value creation a continuous process

Transform business processes into digital form

Decentralize management but centralized coordination

Create an e-business app architecture addressing three

E-Business

Strategies, Inc.

www.ebstrategy.com

contact@ebstrategy.com 678-339-1236 x201

Fax - 678-339-9793