1. Translating e-Business Strategy into Action: E-Blueprint Formulation
Chapter Thirteen
Translating e-Business Strategy into Action: E-Blueprint Formulation
The E-Business material shall at all times remain the property of E-Business Strategies, Inc. No license under any trade secrets, copyrights, or other rights is granted by this Agreement or any disclosure of Confidential Information hereunder. Any such permitted copies will be considered Confidential Information. Confidential Information of E-Business Strategies, Inc. may not be copied or reproduced by the Recipient without E-Business Strategies, Inc. prior written consent.

2. e-Commerce Value Proposition e-Business Application Foundation
Introduction
E-Business blueprints the missing link between strategy and execution
An e-Business blueprint is the whole fabric of applications, processes, and services that shape and sustain customer value
e-Commerce Value Proposition
e-Business Application Foundation
What applications are needed to facilitate value creation?
What is the customer looking for?
Strategy Formulation
e-Blueprint Planning

3. Setting Stage for e-Blueprint Planning
Today’s e-business efforts
Vague ideas substitute for cohesive management and well-developed plan
Intuition, not reason, directs development of new plans
With rising tech spending, e-blueprint planning more important and difficult
Tech investments not linked to definable e-strategy
Difficult to make tech-related decisions
Analysis and implementation of tech projects meeting stated objectives rare
Confusion about tech due to high market activity
Strategic alignment between business models and decisions on tech spending seen necessary

4. Focusing on e-Blueprints, Not Single Projects
Today, e-business projects being treated the same as any other initiative
Each e-effort undertaken as one project at a time
No forethought of achieving economies of scale and scope or shared resources
No shared strategic vision in place
Mergers and acquisitions compounding problems
Causing serious app infrastructure problems
E-business blueprint planning hurdles
Lack of political will
Departmental resistance giving precedence to individual projects over enterprise-wide need
Microsoft alternative to single-project mentality highly successful

5. Focusing on e-Blueprints, Not Single Projects
Work backwards
Time
Thinking Ahead Approach
An e-Blueprint combines a clear understanding of where you need to be with what needs to be done.
Goal
Where do we need to be 3 years from now?
Where should we
be next year?
You are here
And next year?
Incremental Approach
An incremental approach to application development will not work in the e-Business world.
Why some companies stagnate...
Why some companies grow...

6. Beginning the e-Blueprint Journey
Technology/Innovation Strategy
Customer Drivers
Technology Drivers
Individual Application Framework Projects
Corporate Goals & Objectives
e-Business Aggregate Blueprint
e-Business Design
Organizational Drivers
Business Drivers
Customer/Market Strategy

7. Beginning the E-Blueprint Journey
Approaches for e-blueprint planning
Short-term
Patch together an e-blueprint plan incorporating the company’s existing apps
Long-term
Start over with an entirely new group of apps as the core piece of its e-blueprint plan

8. To Patch or Not to Patch
Three challenges when deciding to patch or not to patch existing infrastructure
Integration of existing infrastructure
Building seamless infrastructure on a fragmented app base
Front-end experience for customers must be a seamless, well-integrated service delivery platform
Knowing when to walk away and start over

9. Evaluating Your Company’s e-Business Blueprint Process
Red flags indicating e-blueprint process in trouble
Platform projects take too long
Many substandard projects in pipeline for years
All projects being implemented are long-term, multibillion dollar, big bang efforts
Almost all projects reinventing the wheel
Too much procrastination when making decisions
Project interdependence difficult to manage
Lack of communication and business side buy in

10. Basics of e-Blueprint Planning
How should you invest in framework integration?
What framework projects are high, medium and low priority?
What set of framework projects do we need to initiate?
e-Blueprint Creation
Create a Prioritization Framework
Key Objectives
Feedback
Who develops the framework business case?
How can frameworks be aligned to achieve business goals?
Can we make a compelling case to decision makers about the need for change?
e-Blueprint Facilitation
Make a Business Case for Action
Action Plan
Feedback
What is our chosen path?
Are we following our plan?
How do we keep the plan relevant?
e-Blueprint Execution
Tactical Implementation

11. E-Blueprint Creation: Defining the Blueprint in Your Company
Five steps of e-blueprint creation
Establish aim of overall e-business design
Establish scope of the effort
Classify and analyze the app frameworks
Prioritize what needs to be done
For each app framework, design the execution plan

12. E-Blueprint Creation: Defining the Blueprint in Your Company
Step 1: Establish aim of overall e-business design

13. E-Blueprint Creation: Defining the Blueprint in Your Company
Step 2: Establish the scope of the effort
Map your ebusiness design into 3 types of improvement
Process improvement
Strategic improvement
Business transformation
Strategic Improvement
Business Transformation
Focus of Change
Build exceptional internal capabilities
Gain unusual insight into the customer and market needs
Skill Development
Distinctive process thinking
Excellent strategic decision making
Implementation Approach
Highly linear
Entrepreneurial
Measuring Progress
Efficiency targets
Market share

14. E-Blueprint Creation: Defining the Blueprint in Your Company
Step 3: Classify and analyze the app frameworks

15. E-Blueprint Creation: Defining the Blueprint in Your Company
Example of App Framework Project: B2B portal
Credit
Availability
Price
Web-based order capture tools
Customer prioritization
Multi sourcing
Multi shipping
Distribution
B2B Portal
Payment
Strategic Profitability analysis
Price management and invoicing
Returns and claims
Service & Warranty

16. E-Blueprint Creation: Defining the Blueprint in Your Company
Step 4: Prioritize what needs to get done
Screen 1
Screen 2
Screen 3
phase 2
phase 3
phase 4
phase 1
Small Wins Rapid Application Module Development and Deployment
Prioritize Specific Projects within Application Framework
Define the Aggregate Blueprint - High-level Design
Define Each Application Framework - Scope and Scale

17. E-Blueprint Creation: Defining the Blueprint in Your Company
Step 5: For each app framework, design execution
Required Capabilities
Driving Forces
Implications
Fast and Responsive
Changing customer expectations; accelerating value migration
Shorter time-to-market cycles
High execution productivity
Scarce resources; wrong moves can destroy company
Make better management decisions about resource allocation and project selection
Flexible configurations
Continuous innovation; changing customer needs
Make architectural decisions that allow flexibility
Innovation
Demanding customers; intense competition
Creativity combined with integrated solutions

18. E-Blueprint Creation: Defining the Blueprint in Your Company
Elements of an execution map
Integration Tactical Plan
Process Reengineering Map
Legacy Integration Map
Application Integration Map
Infostructure Map
Integration Blueprint
Customer Needs Profile Map
People and Critical Skills Map
E-Business Blueprint Execution Plan
Application Framework Map
Vision & Priorities Map
Customer Blueprint
Develop-ment Tactical Plan
Development Blueprint
Customer Experience Tactical Plan0
Technology Map
Product Versioning Map
Project & Applications Map
Adoption Management Map

19. e-Blueprint Facilitation: Making a Business Case for Action
Customer Pain
Legacy
Infrastructure
Evergreen
Projects in
Blueprint
Pipeline
Business Case
New Framework
Execution Target:
Investments
Focused on Customer
Needs and Change
Competition

20. e-Blueprint Facilitation: Making a Business Case for Action
Who develops a business case?
Today, technology influences business design
Blueprint sponsors
CEO, President, COO or GM
CIO
CFO
Operating VPs
Board
Dangerous to let consulting partners or IT functions to “bet-the-company” app infrastructure in isolation
Decisions should be participatory
LOB managers, marketing execs, and corporate leaders should join IT professionals in tech review and decision-making process

21. e-Blueprint Facilitation: Making a Business Case for Action
Key elements of an e-Business case
Idea
Customer selection
Value proposition
Where?
(are we going)
Why?
How?
(will we get there)
(will we win)
Differentiation
Metrics
Channel selection
Partner selection
Supplier selection
When?
(will we get there)
Technology selection
Scope selection
Project Selection

22. e-Blueprint Facilitation: Making a Business Case for Action
Changing a firm’s business strategy tantamount to committing money and HR in face of business risk and uncertainty
Preliminary assessment of scope can mitigate concerns
Elements of preliminary scope
Organizational
High-level app architecture
High-level project plan
Resource requirements
Detailed feasibility analysis next
Financial
Organization and cultural
Technical
Suppliers, partners, customers

23. e-Blueprint Facilitation: Making a Business Case for Action
E-Business business case checklist
Setting business direction should be preceded by realistic look at the marketplace and at a company’s circumstances
After that, responsible mgrs must follow these guidelines
Develop a goal statement
Set measurable goals
Set objectives
Develop short- and long-term action plans
Gain approval

24. The Serious Business of e-Blueprint Planning
Aligning strategy with e-business execution a serious undertaking
E-blueprint necessary
Builds creative work environment in which steady stream of high-potential ideas can emerge and be manifested through enterprise’s infrastructure and strategy
Top mgmt should play strong role in the blueprint- planning process
Blueprint decisions among most important company decisions
Cuts across several product lines or divisional boundaries
Frequently requires resolution of cross-functional conflict

25. Alignment in Today’s Environment
75% of e-commerce projects are bound to fail because of a lack of good business planning and unreal expectations of what new technologies can do for their business. [Gartner Group]
Primary Cause of Misalignment
40% of IT purchasing decisions are made by Line of Business Managers (e.g., heads of marketing). The CIO and IT staff are then responsible for implementing the technology to fulfill that department’s business goal.

26. Communicate, Communicate, Communicate
Create an elevator pitch
Create a cross-functional e-blueprint team
Take baby steps
Clearly communicate plans and benefits of the new e-blueprint
Document success and publish results

27. The Problem of Leadership
Lack of consistent sponsorship from top mgmt the single biggest impediment to e-business blueprint planning
Bad planning due to overdelegation
Some responsibilities cannot be delegated
Sitting on the blueprint committee
Approving strategic direction and corporate vision it supports
Setting project’s goals
Participating in deployment process
Personally reviewing performance against strategic goals

28. Questions on Executive Commitment
Is senior-mgmt involved in e-business decision- making?
Is top mgmt selling value of integration to decision makers?
Has the company recognized that improving e- business investment mgmt is a long-term process and should be planned accordingly?
Has the company ensured that e-business investment decisions are strongly linked to strategic business objectives?
Has the company built a shared e-business vision through various mgmt levels?

29. Why e-Business Initiatives Fail
Design app blueprint on your own, in your own dept
Don’t do homework or auditing of company problems
Don’t bother learning from other companies
If you assemble a task force, meet several times in private
Don’t seek outside help and if you do, hire a brand-name guru who knows nothing about technology or blueprint management
When mgrs have questions, get defensive, rail at these “cynics” and “negative thinkers” who don’t get it

30. Why e-Business Initiatives Fail
Don’t worry about communicating
Blueprint doc is 3 binders thick, full of checklists and spreadsheets
Don’t bother with process or project mgmt
Don’t waste time taking baby steps to execute
Don’t factor in periodic feedback as an opportunity for course correction
Don’t factor in existing projects

31. E-Business Strategies, Inc.
x201
Fax
The E-Business material shall at all times remain the property of E-Business Strategies, Inc. No license under any trade secrets, copyrights, or other rights is granted by this Agreement or any disclosure of Confidential Information hereunder. Any such permitted copies will be considered Confidential Information. Confidential Information of E-Business Strategies, Inc. may not be copied or reproduced by the Recipient without E-Business Strategies, Inc. prior written consent.
The E-Business material may not be re-sold. It is intended to be used solely for the purpose of accompaniment of the E-Business 2.0 Roadmap for Success book in an instructional manner.