Presentation on theme: "Translating e-Business Strategy into Action: E-Blueprint Formulation"— Presentation transcript:
1 Translating e-Business Strategy into Action: E-Blueprint Formulation Chapter ThirteenTranslating e-Business Strategy into Action: E-Blueprint FormulationThe 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 IntroductionE-Business blueprints the missing link between strategy and executionAn e-Business blueprint is the whole fabric of applications, processes, and services that shape and sustain customer valuee-Commerce Value Propositione-Business Application FoundationWhat applications are needed to facilitate value creation?What is the customer looking for?Strategy Formulatione-Blueprint Planning
3 Setting Stage for e-Blueprint Planning Today’s e-business effortsVague ideas substitute for cohesive management and well-developed planIntuition, not reason, directs development of new plansWith rising tech spending, e-blueprint planning more important and difficultTech investments not linked to definable e-strategyDifficult to make tech-related decisionsAnalysis and implementation of tech projects meeting stated objectives rareConfusion about tech due to high market activityStrategic 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 initiativeEach e-effort undertaken as one project at a timeNo forethought of achieving economies of scale and scope or shared resourcesNo shared strategic vision in placeMergers and acquisitions compounding problemsCausing serious app infrastructure problemsE-business blueprint planning hurdlesLack of political willDepartmental resistance giving precedence to individual projects over enterprise-wide needMicrosoft alternative to single-project mentality highly successful
5 Focusing on e-Blueprints, Not Single Projects Work backwardsTimeThinking Ahead ApproachAn e-Blueprint combines a clear understanding of where you need to be with what needs to be done.GoalWhere do we need to be 3 years from now?Where should webe next year?You are hereAnd next year?Incremental ApproachAn incremental approach to application development will not work in the e-Business world.Why some companies stagnate...Why some companies grow...
7 Beginning the E-Blueprint Journey Approaches for e-blueprint planningShort-termPatch together an e-blueprint plan incorporating the company’s existing appsLong-termStart over with an entirely new group of apps as the core piece of its e-blueprint plan
8 To Patch or Not to PatchThree challenges when deciding to patch or not to patch existing infrastructureIntegration of existing infrastructureBuilding seamless infrastructure on a fragmented app baseFront-end experience for customers must be a seamless, well-integrated service delivery platformKnowing when to walk away and start over
9 Evaluating Your Company’s e-Business Blueprint Process Red flags indicating e-blueprint process in troublePlatform projects take too longMany substandard projects in pipeline for yearsAll projects being implemented are long-term, multibillion dollar, big bang effortsAlmost all projects reinventing the wheelToo much procrastination when making decisionsProject interdependence difficult to manageLack 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 CreationCreate a Prioritization FrameworkKey ObjectivesFeedbackWho 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 FacilitationMake a Business Case for ActionAction PlanFeedbackWhat is our chosen path?Are we following our plan?How do we keep the plan relevant?e-Blueprint ExecutionTactical Implementation
11 E-Blueprint Creation: Defining the Blueprint in Your Company Five steps of e-blueprint creationEstablish aim of overall e-business designEstablish scope of the effortClassify and analyze the app frameworksPrioritize what needs to be doneFor 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 effortMap your ebusiness design into 3 types of improvementProcess improvementStrategic improvementBusiness transformationStrategic ImprovementBusiness TransformationFocus of ChangeBuild exceptional internal capabilitiesGain unusual insight into the customer and market needsSkill DevelopmentDistinctive process thinkingExcellent strategic decision makingImplementation ApproachHighly linearEntrepreneurialMeasuring ProgressEfficiency targetsMarket 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 portalCreditAvailabilityPriceWeb-based order capture toolsCustomer prioritizationMulti sourcingMulti shippingDistributionB2B PortalPaymentStrategic Profitability analysisPrice management and invoicingReturns and claimsService & Warranty
16 E-Blueprint Creation: Defining the Blueprint in Your Company Step 4: Prioritize what needs to get doneScreen 1Screen 2Screen 3phase 2phase 3phase 4phase 1Small Wins Rapid Application Module Development and DeploymentPrioritize Specific Projects within Application FrameworkDefine the Aggregate Blueprint - High-level DesignDefine Each Application Framework - Scope and Scale
17 E-Blueprint Creation: Defining the Blueprint in Your Company Step 5: For each app framework, design executionRequired CapabilitiesDriving ForcesImplicationsFast and ResponsiveChanging customer expectations; accelerating value migrationShorter time-to-market cyclesHigh execution productivityScarce resources; wrong moves can destroy companyMake better management decisions about resource allocation and project selectionFlexible configurationsContinuous innovation; changing customer needsMake architectural decisions that allow flexibilityInnovationDemanding customers; intense competitionCreativity combined with integrated solutions
18 E-Blueprint Creation: Defining the Blueprint in Your Company Elements of an execution mapIntegration Tactical PlanProcess Reengineering MapLegacy Integration MapApplication Integration MapInfostructure MapIntegration BlueprintCustomer Needs Profile MapPeople and Critical Skills MapE-Business Blueprint Execution PlanApplication Framework MapVision & Priorities MapCustomer BlueprintDevelop-ment Tactical PlanDevelopment BlueprintCustomer Experience Tactical Plan0Technology MapProduct Versioning MapProject & Applications MapAdoption Management Map
19 e-Blueprint Facilitation: Making a Business Case for Action Customer PainLegacyInfrastructureEvergreenProjects inBlueprintPipelineBusiness CaseNew FrameworkExecution Target:InvestmentsFocused on CustomerNeeds and ChangeCompetition
20 e-Blueprint Facilitation: Making a Business Case for Action Who develops a business case?Today, technology influences business designBlueprint sponsorsCEO, President, COO or GMCIOCFOOperating VPsBoardDangerous to let consulting partners or IT functions to “bet-the-company” app infrastructure in isolationDecisions should be participatoryLOB 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 caseIdeaCustomer selectionValue propositionWhere?(are we going)Why?How?(will we get there)(will we win)DifferentiationMetricsChannel selectionPartner selectionSupplier selectionWhen?(will we get there)Technology selectionScope selectionProject 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 uncertaintyPreliminary assessment of scope can mitigate concernsElements of preliminary scopeOrganizationalHigh-level app architectureHigh-level project planResource requirementsDetailed feasibility analysis nextFinancialOrganization and culturalTechnicalSuppliers, partners, customers
23 e-Blueprint Facilitation: Making a Business Case for Action E-Business business case checklistSetting business direction should be preceded by realistic look at the marketplace and at a company’s circumstancesAfter that, responsible mgrs must follow these guidelinesDevelop a goal statementSet measurable goalsSet objectivesDevelop short- and long-term action plansGain approval
24 The Serious Business of e-Blueprint Planning Aligning strategy with e-business execution a serious undertakingE-blueprint necessaryBuilds creative work environment in which steady stream of high-potential ideas can emerge and be manifested through enterprise’s infrastructure and strategyTop mgmt should play strong role in the blueprint- planning processBlueprint decisions among most important company decisionsCuts across several product lines or divisional boundariesFrequently 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 Misalignment40% 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 pitchCreate a cross-functional e-blueprint teamTake baby stepsClearly communicate plans and benefits of the new e-blueprintDocument success and publish results
27 The Problem of Leadership Lack of consistent sponsorship from top mgmt the single biggest impediment to e-business blueprint planningBad planning due to overdelegationSome responsibilities cannot be delegatedSitting on the blueprint committeeApproving strategic direction and corporate vision it supportsSetting project’s goalsParticipating in deployment processPersonally 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 deptDon’t do homework or auditing of company problemsDon’t bother learning from other companiesIf you assemble a task force, meet several times in privateDon’t seek outside help and if you do, hire a brand-name guru who knows nothing about technology or blueprint managementWhen 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 communicatingBlueprint doc is 3 binders thick, full of checklists and spreadsheetsDon’t bother with process or project mgmtDon’t waste time taking baby steps to executeDon’t factor in periodic feedback as an opportunity for course correctionDon’t factor in existing projects
31 E-Business Strategies, Inc. x201FaxThe 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.