CHAPTER: 9 ELECTRONIC COMMERCE STRATEGY Click to edit Master subtitle style AND IMPLEMENTATION SEMESTER : 10 & 11

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NAMES OF MEMBERS:
1. MUHAMMAD IRFAN 2. MANAL FAZAL 3. FATIMA QAVI 4. IMRAN UDDIN 5. RIMSHA KHALID 6. AFSHAN ANWER 7. ATIF IMTIAZ
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IBMs E-BUSINESS STRATEGY:

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STRATEGIC PLANNING FOR EC

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INDUSTRY AND COMPETITVE ANALYSIS

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STRATEGY FORMULATION

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CRITICAL SUCCESS FACTORS FOR EC

Indispensable business, technology,

human factors
Highly dependant on the company

situation
Some CSF of EC initiatives:

1. Technical infrastructure 2. Competition and market situation

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3. Customer acceptance

A VALUE ANALYSIS APPROACH

A series of activities a company

performs to achieve its goal at various stages of production process

When customers start to use the

internet to conduct business, a new value for the selling company is created
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RETURN ON INVESTMENT AND RISK ANALYSISROI for an EC project is a The rate of

ratio of the cost of resources required
It includes both quantifiable and

non-quantifiable items

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EC SCENARIOS
The members only submit scenarios

applies mostly to B2B EC

The electronic middlemen scenario

shows that business and consumer market can make their products and services available

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STRATEGIC PLANNING FRMAEWORK: COMPETITVE VS COOPERATIVE of scenario, Regardless of the type markets should be STRATEGIES considered first to
address and capitalize customer needs as in EC can be competitive or cooperative
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Business strategies in general as well

Assumes fighting against all

COMPETITIVE STRATEGIES

competitors for the purpose of survival and to win

A competitive strategy can be :

1.Offensive
Frontal assault Flanking maneuver

2. Defensive
Raise structural barriers 12/23/12

Used to gain a competitive

COOPERATIVE STRATEGIES

advantage within an industry by working with other firms.

Strategic alliance is a partnership of

multiple corporations formed to achieve competitive advantages that are mutually beneficial
Major types of strategic alliance are: - Joint venture -12/23/12 chain partnership Value

EC STRATEGY IN ACTION
A company should be able to answer the

following questions at the end of strategic planning: 1.How is EC going to change our business? 2.How do we uncover new type of business opportunities? 3. Do we become intermediaries ourselves? 4. How do we bring more buyers together electronically? 5.How do we change the nature of our 12/23/12

THE STEPS TO SUCCESSFUL EC PROGRAMS the chances of EC In order to maximize

success..
1. Conduct necessary education and training. 2. Review current distribution and supply chain

models.
3. Understand what you customers and

partners expect from the web.

4. Reevaluate the nature of your product and

services.

12/23/12 5. Give a new role to your human resources

THE STEPS TO SUCCESSFUL EC PROGRAMS (CONT..)

6. Extend your current systems to the outside. 7. Track new competitors and market shares. 8. Develop a web centric marketing strategy. 9. Participate in the creation and development

of virtual marketplaces.
10. Instill EC management style.

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WARE ET AL. 7 STEP MODEL

A seven steps strategy for developing EC.
1. Create a map of scenarios for aligning

business strategy.
2. Communicate a vision from top management

to drive internet initiatives. constellations.

3. Identify and transform key value 4. Develop the portfolio of EC initiatives.

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WARE ET AL. 7 STEP MODEL (CONT..)

5. Develop year-by-year objectives and

plans.
6. Implement the change. 7. Monitor the over all plan.

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COMPETITIVE INTELLIGENCE ON THE INTERNET Competitive intelligence is an integral

part of strategic planning and can be conducted by conventional methods and by using the internet.

USING THE INTERNET TO CONDUCT COMPETITVE INTELLIGENCE. USING PUSH TECHNOLOGY FOR COMPETITIVE INTELLGENCE.

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USING THE INTERNET TO CONDUCT COMPETITVE INTELLIGENCE

Internet play a major role as a source of competitive information and an increasingly important role in supporting competitive intelligence. The internet can be used to help a company conduct competitive intelligence easily, quickly, and relatively inexpensively.
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USING PUSH TECHNOLOGY FOR COMPETITIVE Current information about companies can be INTELLGENCE and information found in their press releases
they publish on their web sites. Online databases are good source of information, especially for background research, however they may not be the best source for fresh source of information. In response to the pressure of competition, commercial databases are beginning to incorporate push technology into their offerings. 12/23/12

IMPLEMENTATION: PLANS AND EXECUTION

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A PILOT PROJECT

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EC LEADERSHIP

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UNCOVERING SPECIFIC EC OPPORTUNITIES AND APPLICATIONS

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WHICH BUSINESS MODEL TO USE???

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CREATING A WEB TEAM AND ASSIGNING FUNCTIONAL SKILLS TO In creating a web team, the roles SUB PROJECTS of the team and the responsibilities
leader, user management, web master, and technical staff should be define
Some companies go beyond

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organizing a web team by establishing a completely independent online company

EVALUATING OUTSOURCING

Implementing EC requires access to

the web, building the site, connecting it to the corporate existing information system
Many EC tools comes with catalogue

page templates
Hire a web design house that

specializes in EC design
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WEB CONTENT DESIGN

The web team has to determine the

specific content of the website

Some features that can be

considered in website design are: 1. E-mall 2. audio 3. Security 4. Chat rooms 5. Animation 6. Video 7. File transfer capability 8. Direct order procedures 9. Online catalogues
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Security control must be considered Develop effective security and

SECURITY AND CONTROL IN EC

through out the development process privacy guidelines

Address the internet features that

must be monitored

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PROJECT AND STRATEGY ASSESSMENT

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NEED OF ASSESSMENT

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MEASURING RESULTS

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COLLECTING INFORMATION

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FINALIZATION

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THANK YOU

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