Roadmap to Tactical ExecutionE-Business design and software projects must be closely intertwined – e-Business requires well integrated processes that are built on software, not traditi
Trang 1Mobilizing the
Organization: Tactical Execution
Chapter Fourteen
Trang 2This chapter’s focus: Execution
– How, What and When
Fast turnaround of e-business projects will separate
winners from also-rans
– Financial costs of delays or mismanagement huge
– Lost opportunity costs of being late to market even higher– Kmart and example of bad e-business execution
Trang 3Roadmap to Tactical Execution
E-Business design and
software projects must be
closely intertwined
– e-Business requires well
integrated processes that
are built on software, not
traditional foundation of
people
– Do the tactical efforts
support the business
Tactical Execution
Adoption Management
Trang 4E-Business Tactical Execution
Technology and
Application Capabilities
Organizational
Capabilities and
Limitations
e-Business Blueprint
Tactical e-Project Management Architecture and Implementation
Plan
e-Business Infostructure
Adoption Management
e-Business Development
Measurement for Evergreen Strategy
Trang 5Tactical e-Project Management
•Transition to e-Business needs tightly coordinated
approach
– Caveat: Traditional app execution characterized by number of groups working on various aspects of an issue but not talking
•e-Project mgmt to bring order to chaos
•Different from traditional project mgmt because of new
Trang 6Process Overview
Define and Organize the Project
Execution and Close Down Plan the Project
Establish project team
Determine project objective
Assemble the project definition document
Get project approval
Develop work breakdown structure
Develop project schedule
Gather detailed project requirements
Analyze resources
Prepare cost analysis
Collect project status data
Complete project closing activities
Planning and Managing Projects
Conduct post project review Maintain, Monitor and Control
Trang 7The Intangibles: Continuous Project
Communication
A project communication plan necessary for a project to function like a well-oiled machine
– to keep mgmt, customers, and team members
informed of project’s status and milestones at risk
of being missed
– Identifies all persons concerned with the project and develops follow-up activities to keep them
involved
– Assigns communication responsibilities and
process for keeping everyone informed
Trang 8e-Development Process
Opportunity
Generation
Solution Evaluation
Customer Requirements
e-Process
Maintenance/
Support
Trang 9Opportunity Generation: What Customer
Pain Are We Solving?
Projects must be built around opportunities for
addressing customer needs
– Classify: Pain killer or vitamin?
– Most significant opportunities also simple: transactions in
everyday life that could be simplified
– Opportunities for relieving customer pain may be collected passively, but firms should also generate opportunities actively
Many ways to identify opportunities
– Annual mgmt brainstorming retreat
– Let employees develop opportunities
– Strategic document outlining opportunities: “slots”
– Survey of customers by consulting firm
Few execs take customer’s perspective
– Trying to reduce pain for themselves
Trang 10Solution Evaluation: How Can We Alleviate the Customer Pain?
Where/When •Where do we observe the problem?
•Are there any service or infrastructure implications?
•Under what conditions do we observe the problem?
How big •How big is the problem/opportunity?
•What is the cost of these problems in terms of lost revenue, expenses, speed, or morale?
•How will we measure it?
•Will the solution require the customer to change process or culture?
Trang 11Getting Detailed Requirements Right
Successful e-business strategies fueled by deep
understanding of the customer processes and pain
points
– “Lack of attention at this step will cause problems
downstream that result in project derailment.”
Failed strategies fueled by a lack of ability to see below the surface
– Technology changes quickly but underlying customer needs
do not
Categories of customer requirements
– Strategic, “forward thinking” that market has not asked for yet– Customer-driven, “requested” requirements
– Technology-driven
– “Feature complete” requirements to add bells and whistles
Trang 12Detailed Requirements Specifications
Getting Detailed Requirements Right
Front end Prototyping
To Avoid Surprises
Scope & Priorities
Requirements Prototyping
& Elicitation
Customer Priorities
Market Trends
Purchase/Interaction
Occasion
Competitor Benchmarking
Trang 13Setting Scope
Determining scope and narrowing focus first, most
important step in project
– Understanding scope essential to managing its development– Requires communication with customer to ensure correct interpretation of the defined need and unambiguous wording
of the responsive requirement
– Scope of many e-business projects fuzzy
Partition big problems into manageable chunks when
scope too grandiose to overcome resistance
– Keeps team focused and interested
– Achieve early victories to sustain momentum
– Realize achievements and internalize at faster rate
Scope can be rigid or flexible
Trang 14Garnering Resources: Mobilize, Mobilize,
Consultants
Strategy Formulation
Production Rollout, Maintain, Enhance and Change Effort
Infrastructure (Tools, Apps, Software)
New Application Development
Supplier/ Partner Integration
Well-budgeted by most enterprises Costs underbudgeted
by 20% to 40%
Costs underbudgeted
Business Strategy
Blueprint Planning
& Project Management
Prototype Implementation
Trang 15E-process Redesign
• Identify the major processes (e.g., Order Fulfillment) that provide value
Take the customer viewpoint
• Identify key support processes (e.g., Content Management)
• Map processes across functional boundaries.
• Ask the “What-If” question (e.g., what if we changed the way we fulfilled the customer order?)
• Identify key points of contact with the customer for each process.
• Identify customer pain associated with each key process.
• Identify process variations that influence final output (customer expectations).
• Ask “Are final outputs relevant? Is the customer looking for something different?”
• Ask “What is preventing us from meeting or exceeding customer expectations?”
• Identify the major activities or building blocks of each process.
• Identify all key inputs - information, data, or products - of each major activity Ask “which of these are absolutely critical to the process?”
• Identify all key dependencies of each activity Ask “Is this dependency impacting the smooth flow of the process? What-if we removed/modified it?”
• Diagram the entire process into a high-level map.
Trang 16Web Development: Prototype Validation and Implementation
• Detailed requirements prototyping
• Detailed architecture design
• Application development
• Quality assurance and testing
• Field testing
• Release management
Trang 17Managing Outsourced Web Development
Trang 18Application Service Providers
IT managers seeking development solutions to relieve
stress of too few qualified personnel to meet too many
development needs
Enter ASPs, ex Corio, Breakaway, US Internetworking
– Provide power of large app frameworks as ERP
– Maintain apps themselves
– Growth due to better delivery of apps via IP networks
– Offer everything from office essentials to massive apps
– Large servers host apps in data centers, accessed via VPN
Attractive for companies with rapidly changing IT needs that don’t require highly customized software solutions
– Startup companies
– Large corporations because of time-to-market issues, lack of development resources, and a desire to lower maintenance costs
Trang 20Internet Data Centers
Internet creates unpredictable load on network services
– Newly introduced software can be ten times as
popular as predicted
– New data-driven apps can increase storage
system use beyond all projections
Data centers need adequate capacity available for 24x7x365, while minimizing capital outlay
Enter collocation firms
– Exodus, Jam Cracker, LoudCloud
– Group a company’s apps together on dedicated servers in state-of-the-art NOCs
Trang 21Capacity Planning
Online customer impatient
Predicting demand levels for network services difficult
Complexity of today’s networks make it difficult to
isolate the driving force of demand for a particular
service
Continuous, ongoing capacity planning process
necessary
– Assess current physical infrastructure’s capacity
– Measure and monitor traffic regularly to verify business
model
– Use business model for long-range scenario planning
In capacity planning, don’t think just Web transactions
– Think about how rich content affects capacity
Trang 22• Impacts both the # of simultaneous users that
can be supported and the service-level
performance that users experience
• Hardware scaling vs Indirect techniques
• Lot of hardware capacity may not solve
problems with rich multimedia content
• Caching and Replication necessary to solve
these issues
Trang 23Availability is accessibility of e-business
operation: 24 hours a day, 7 days a week, 365 days a year
Techniques for maximum uptime
– Clustering and replication
– Process and business practices
– Monitoring service deployments
Modularity of infostructure critical to attaining continuous availability
Trang 24Security and Risk Management
Prevention of security threats far easier and less costly than responding
– Yahoo!, CNN, Amazon attacked in early 2000
Execs must pay attention to their companies’ network security
Execs must understand what their firms’ development organizations and hosting vendors are doing to identify and solving potential security problems
Security and disaster recovery plans go hand in hand
– Important to think through various disaster scenarios and have a plan for addressing each one
– September 11, 2001
Trang 25– Key performance indicators
Large projects affect change in three stages
– Stage 1: Jobs redefined, new procedures established, apps fine tuned, and users learn benefits
– Stage 2: New skills executed, business structure changes,
processes integrated, add on technologies implemented
– State 3: New tools and processes become almost second
nature to users; synergy of people, processes and technology
Trang 26Measurement for Learning and Improvement
How does a company know it is doing well post implementation?
What are some key measures important to a
new e-business process
What should my company measure?
Trang 27Key Take-Aways
Technology changes, but NOT
and strategy
behavior
Automate
Transactions
Process Change
Top Line Growth
Bottom Line
Sustainability
E-Business Evolution in
Corporations
Trang 28E-Business
Strategies, Inc.
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