1. MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE Strategic Planning for EC

2. MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE The strategic Planning Cycle  Industry & Competitive Analysis  Strategy Formulation  Implementation  Performance Assessment, Strategy reassessment

3. MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE Industry & Competitive Analysis  Monitor, evaluate and disseminate information from external and internal environments  Identify critical factors that will determine success  SWOT analysis MATRIX

4. MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE Strategy Formulation  Examine\Redefine the corporate mission Develop strategies  Set Implementation Guidelines

5. MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE Examine\Redefine the corporate mission  by specifying achievable objectives  measurable  what does the company intend to achieve?

6. MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE Develop strategies  Must be clear and not superficial  People, organisation, processes and technology

7. MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE Develop strategies (cont)  A value chain approach  Relationship Marketing  ROI & Risk Analysis  Critical Success Factors  Four EC Scenarios  Competitive v’s Cooperative  Competitive Intelligence on the Internet

8. MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE A value chain approach  Clarify Value Chain Statements  Create New Values

9. MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE Clarify Value Chain Statements  Can I realise significant margins by consolidating parts of the value chain?  Can I create significant value for customers by reducing the number of entities they have to deal with in the value chain?  What additional skills do I need to develop in order to take over the functions of others in my value chain?  Will I be at a a competitive disadvantage if someone else moves first to consolidate the value chain?

10. MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE Create New Values  Can I offer additional information regarding transaction services to my existing customer base?  Can I address the needs of new customer segments by repackaging my current information assets or by creating new business propositions using the Internet?  Will my current business be significantly harmed by other businesses providing some of the value that I currently offer?  Will my current business be significantly hared by other companies providing some of the value I currently offer on an a la carte basis?

11. MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE Relationship Marketing  Differentiation by superior service at the point of contact with the customer  customer acquisition  customer retention  customer extension  customer selection

12. MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE ROI & Risk Analysis  ROI = ratio of cost of resources required to the benefits generated  Includes both quantifiable and non-quantifiable items  Non-quantifiable items  effective marketing channel  increased sales  increased customer service  competitive advantage  organisational design  organisational learning

13. MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE ROI & Risk Analysis (Cont)  Risks  technological  inherent in business reorganisation  demographic changes

14. MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE Critical Success Factors  Top Management support  cross functional teams  technical infrastructure  customer acceptance  user friendly web interface  Integration with legacy systems

15. MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE Critical Success Factors (cont.)  security and control of the EC system  pilot project  corporate knowledge  promotion and internal communication  cost  level of trust between buyers and sellers

16. MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE Critical Success Factors (cont.)  Specific product or services traded  Does the business have a product that is a good candidate for EC?  Can the business develop new products for EC?  How can I use the information I have about individual customers to make it easier for them to do business with me?

17. MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE Critical Success Factors (cont.)  Specific product or services traded (cont.)  What help can I give customers by using the experience of other customers or the expertise of my employees?  Will I be at a significant disadvantage if my competitors provide these capabilities to customers before I do?

18. MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE Four EC Scenarios  Open Global Commerce Scenario  Members Only Subnets Scenario  Electronic Middlemen Scenario  New Consumer Marketing Channels Scenario

19. MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE Competitive v’s Cooperative  A competitive strategy assumes fighting against all competitors for the purpose of survival and to win  A cooperative strategy plans for working together with specific competitors to gain advantage against other competitors.

20. MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE Competitive Strategies  Frontal assault  attacks competitor in all areas  the attacker must have superior resources and a willingness to persevere  Flanking manoeuvre  attacks where the competitor is weak  attacker must be patient and willing to carefully expand

21. MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE Competitive Strategies (cont.)  Raise structural barriers  full product lines  switching costs  low entry costs  Lower the inducement for attack  lower the expectation of profits by attackers

22. MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE Cooperative strategies  Joint venture  pooling of resources  new, separate entity formed  involves loss of control  Value chain partnership

23. MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE Steps to maximise success  Education and Training  Review Current Distribution and Supply Chain Models  Understand What Your Customers and Partners Expect From the Web  Re-evaluate the Nature of Your Products and Services  Give A New Role to Your Human Resources Department  Cross Functional Job Descriptions  Establish Corporate Intranet \ Internet Policies

24. MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE Steps to maximise success (cont.)  Extend Your Current Systems to the Outside  Track New Competitors and Market Shares  Develop A Web-centric Marketing Strategy  Participate in the Creation and Development of Virtual Market Places  Instil EC Management Style  Constant environmental scanning

25. MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE Competitive Intelligence on the Internet  Review Competitors Web Sites  Analyse Related News Groups  Examine Publicly Available Financial Documents  Corporate Research Companies  Solicit Opinions in Chat Rooms  Interactive Customer Questionnaires  Avoid Over Reliance  Push V’s Pull Information Technology

26. MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE Set Implementation Guidelines  Pilot Project  Uncover Specific EC Opportunities and Applications  Create Web Team  Evaluate Outsourcing  Web site design  Assessment

27. MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE Uncover Specific EC Opportunities  Brainstorming  Consultants  Vendors  Review Competitors  Literature

28. MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE Create Web Team  Transformational Leadership  Define Roles  Assign Functional Skills to Subprojects  Cross Functional Staffing  Documentation

29. MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE Evaluate Outsourcing  Cost  Expertise  Benchmarking against vendors other clients  Loss of control  Core competencies

30. MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE Assessment  Measure  Collect information  Re-evaluate  Recommence planning cycle

31. MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE Collect information  Staff  Customers  Suppliers

32. MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE Re-evaluate  Did it deliver what it was supposed to  Is it still viable in an ever changing environment  Reassess initial strategy to learn from mistakes and strengthen advantages  Identify failing projects ASAP and determine reasons for failure  Identify control and administrative issues

33. MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE Change Management

34. MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE Need for Change Management  Environment is always changing  Change is Natural  70% of IT projects fail

35. MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE Change does not occur in isolation TechnologyPeople Task Structure

36. MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE Stages of Change  Unfreeze Present Behaviour  Creating motivation and readiness for change  Change the organisational system  Enabling people to see things differently and react differently in the future  Re-freeze  Ensuring that the new behaviour will be secure against reversion

37. MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE The Managing Change Model (Siegal) Evaluating Change Managing the people side of change Managing the organisation side of change Planning change Individual response to changeGeneral nature of change

38. MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE Critical Success Factors  Executive Support  Transformational Leadership  Communicating the Vision  Inspiring  Sound Implementation Strategy  Transition Management Team  Moral authority  Legal authority

39. MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE Critical Success Factors (cont.)  Trust  Communication  Recognise Resistance  Normal  Understand sources and motives  May derive benefits from the dysfunction  Maintain personal homeostasis  Reflects poorly upon past performance

40. MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE Critical Success Factors (cont.)  Ownership  Empowerment  Monitoring  Feedback