10 rules of e-business

10 Rules of E-Business,[object Object],Chapter – 1,[object Object],Moving from e-Commerce to e-Business,[object Object]

Ten Rules of E-business,[object Object]

Ten Rules of E-business: Rule 1,[object Object],Technology is no longer an afterthought in forming business strategy, but the actual cause and driver,[object Object],Conventional, risk-averse businesses cannot ignore e-business,[object Object],E-commerce poses most significant challenge since advent of computing,[object Object],Most execs unaware of impact of these changes,[object Object],Need to see business differently; maintaining status quo not a viable option,[object Object]

Ten Rules of E-business: Rule 2,[object Object],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,[object Object],Core driver of structural transformation of business,[object Object],Few companies have info-centric business designs for continuous business change and innovation,[object Object],Changing info flow requires changing product mix and ecosystem,[object Object],DEC’s demise,[object Object],Most companies unable to cannibalize existing business structures, reallocate assets to compete with startups,[object Object]

Ten Rules of E-business: Rule 3,[object Object],Inability to overthrow the dominant, outdated business design often leads to business failure,[object Object],CompuServe & Prodigy Vs. AOL,[object Object],Not the earliest adopters, but the most serious, eventually prevail,[object Object],AOL outlasted, outwit, and outsmart competition,[object Object],Often in the early phase, there is an “arms race” between competitors,[object Object],Need to convert technology advantage to process advantage to business model advantage,[object Object],Deeply-embedded innovations are difficult to implement – but also to copy!,[object Object]

Rule 3 -Value Chain Disaggregation and Reaggregation,[object Object],Disaggregation to separate means, or products, from ends, or customer needs,[object Object],Value of a business in the needs it serves, not in products it offers,[object Object],Intel with continuous innovation in chip design and manufacturing,[object Object],Requires identifying, valuing, and nurturing core of business: the underlying needs satisfied by company ,[object Object],Reaggregationto lower cost or enhance differentiation from competitors,[object Object],Streamlines entire value chain,[object Object],Success dependent on well-integrated enterprise apps,[object Object],Amazon.com Vs. Barnes and Nobles,[object Object]

Rule 3 -The Road Ahead: Steps to a New Beginning,[object Object],Six steps of disaggregation and reaggregation,[object Object],What is the new industry structure?,[object Object],Configuration,[object Object],What does the digital consumer want?,[object Object],Value in terms of experience and expectations,[object Object],What are the new economics?,[object Object],How to convert value creation into revenue?,[object Object],How do you engineer the end-to-end value stream?,[object Object],How do we reorganize our business?,[object Object],Right partnerships,[object Object],Where is the value?,[object Object],Integration,[object Object],How do we implement change?,[object Object],New generation leaders who understand how to create,[object Object], digital future by design and intent, not by accident,[object Object]

Rule 3 -Challenging Traditional Definitions of Value,[object Object],Customers need businesses to improve,[object Object],Speed of service,[object Object],Convenience,[object Object],Personalization,[object Object],Price,[object Object],Managers should ask how they can use technology to create new value proposition for the customer,[object Object],Domino’s Pizza, Dell, Amazon.com,[object Object],Ability to view world from customers’ perspective prevents visionary companies from starting in wrong place and ending up at wrong destination,[object Object],Market segmentation analysis difficult to execute in turbulent environment,[object Object]

Rule 3 -Changing the Notion of Value: E-commerce,[object Object],Web and ecommerce have accelerated value innovation in speed, convenience, personalization and price dimensions of a service,[object Object],Changed underlying value proposition,[object Object],Customer’s looking for cheapest, most familiar, or best quality product,[object Object],A product or service that is 98 percent as good, unfamiliar or costs 50 cents more will not survive,[object Object],Companies following such middle-of-the-road strategies will underperform,[object Object]

Ten Rules of E-business: Rule 4,[object Object],E-commerce is enabling companies to listen to their customers and become either “the cheapest,” “the most familiar,” or “the best”,[object Object],“The cheapest” not synonymous with inferior quality,[object Object],Southwest’s “No Frills Flying”,[object Object],Wal-Mart’s “Everyday Low Prices”,[object Object],“The most familiar” means customers know what to expect,[object Object],McDonald’s, Coca-Cola took decades to build brand,[object Object],AOL and Yahoo carved out strong identities in only a few years using technology,[object Object]

Ten Rules of E-business: Rule 4,[object Object],Being “the best” ,[object Object],Reinventing service processes to enhance quality,[object Object],Turning company on a dime to move in more profitable directions,[object Object],Raising relationships with customers and suppliers to unprecedented levels of cooperation and trust,[object Object],Amercian Express’ Return Protection Plan,[object Object]

Ten Rules of E-business: Rule 5,[object Object],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,[object Object],Amazon.com in the book retailing industry identified new source of customer value by streamlining consumers’ buying experience,[object Object],Microsoft anticipated changing customer experiences and reengineered several value chains: Travel (Expedia), Automotive (CarPoint), Real Estate (HomeAdvisor), Finance (Investor),[object Object]

Ten Rules of E-business: Rule 5,[object Object],CEOs must understand the threat posed by value migration,[object Object],Is there an Amazon.com that can squeeze margins in your business? ,[object Object],If not, can you create one -- “destroy your business” initiative at GE?,[object Object],Are any new entrants in your industry leveraging Web to rewire customer experience and change service expectations?,[object Object],CEOs must understand how to manage in,[object Object], a fast-moving environment,[object Object]

Ten Rules of E-business: Rule 6,[object Object],The business design of the future increasingly uses reconfigurable e-business community models to best meet customers’ needs,[object Object],Competition no longer between companies but between Business Webs (BWs),[object Object],Auto-By-Tel vs. Big Three in the car industry,[object Object]

Cost,[object Object],Delivery,[object Object],Flexibility,[object Object],Quality,[object Object],Rule 6,[object Object]

Rule 6 -Harvesting Outsourcing: E-business Core Competencies,[object Object],3rd Gen:,[object Object],Need advice, contacts,[object Object],and Web savvy,[object Object],2nd Gen:,[object Object],Cannot go,[object Object],at it alone,[object Object],Process Outsourcing,[object Object],Investment,[object Object],Partnerships,[object Object],1st Gen:,[object Object],Cannot do everything well,[object Object],Contract,[object Object],Manufacturing,[object Object],Co-create ,[object Object],critical tasks,[object Object],Focus: ,[object Object],Market position via ,[object Object],ease of doing business (e.g, GE in India),[object Object],Administration,[object Object],HR,[object Object],Accounting,[object Object],IT,[object Object],Outsource,[object Object],critical tasks,[object Object],Focus: Time-to-market, ,[object Object],Market position via ,[object Object],ease of doing business,[object Object],Do not outsource,[object Object],core competence,[object Object],Focus: efficiency,[object Object],and cost reduction,[object Object]

Rule 6 -Creating the New Technoenterprise: Integrate, Integrate, Integrate,[object Object],Strategy Process,[object Object],App integration key to e-business,[object Object],Not easy, requires major app overhaul for integrated front-end/back-end infrastructure,[object Object],Integrated app architecture critical with advent of e-commerce,[object Object],Threat of losing customers looming large with advent of new market entrants,[object Object],Customer Needs,[object Object],Corporate Strategy,[object Object],Process Strategy,[object Object],Application Integration Decisions ,[object Object]

Ten Rules of E-business: Rule 7,[object Object],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,[object Object],E-business enabled outsourcing a big deal,[object Object],Pressure by shareholders for double-digit revenue growth,[object Object],CEOs have already reengineered, downsized and cut costs; now looking at technology to transform business model and deliver results,[object Object]

Ten Rules of E-business: Rule 8,[object Object],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,[object Object],Decision to adopt e-business architecture is a business, not technical, decision,[object Object],The lack of attention to the back-office systems and process side of E-business is the primary reason for many project failures. ,[object Object]

Ten Rules of E-business: Rule 9,[object Object],The ability to plan an e-business infrastructure course swiftly and to implement it ruthlessly are key to success; ruthless execution is norm,[object Object],Most e-business strategies in dire straits even before they start,[object Object],Managers often don’t understand complexity of converting strategy into a working architecture,[object Object],The goal of every successful e-business strategy is help the firm either save or make money.,[object Object]

Ten Rules of E-business: Rule 10,[object Object],The tough task for management is to align business strategies, processes, and applications fast, right, and all at once; Strong leadership is imperative,[object Object],Many managers good at planning strategy and looking at things strategically but not at implementing strategy,[object Object],Implementation takes leadership, commitment and backbone,[object Object],“Creative destruction” or breaking free from habits of past necessary,[object Object]

10 rules of e-business

10 rules of e-business

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10 rules of e-business