Presentation on theme: "EC Strategy, Globalization, and SMEs"— Presentation transcript:
1 EC Strategy, Globalization, and SMEs Chapter 13EC Strategy, Globalization, and SMEs
2 Learning ObjectivesUnderstand the essentials of online business competition and strategy and how the Internet and EC influence Porter’s Five Forces model.Describe the performance and strategy cycle.Describe the strategy initiation phase.Understand the activities of strategy formulation.Understand the strategy implementation phase.
3 Learning ObjectivesDescribe strategy assessment, including the role of metrics.Describe performance improvements and innovations in e-commerce.Evaluate the issues involved in global EC.Describe how small and medium-sized businesses can use EC.
4 Organizational Strategy: Concepts and Overview Strategy in the Web EnvironmentPorter’s Five Forces Model and Strategies as Influenced by the Internet and ECThreat of entry of new competitorsBargaining power of suppliersBargaining power of customers or buyersThreat of substitute products or servicesRivalry among existing firms in the industryStrategies for Gaining Competitive Advantage
6 Organizational Strategy: Concepts and Overview The Impact of the InternetStrategic Planning for IT and EC
7 The Strategy and Performance Cycle and Tools *Strategy Initiation—GoalsImproved performanceGain of competitive advantageIncreased sales and revenueImproved customer and partner service and relationshipsGeneration of new business models and facilitating innovation
9 The Strategy and Performance Cycle and Tools *Strategy FormulationSpecific activities and outcomes from this phase include:Business opportunitiesCost–benefit analysisRisk analysis, assessment, and managementBusiness plan*Strategy ImplementationThe major specific activities and outcomes from this phase include:Project planningResource allocationProject management
10 The Strategy and Performance Cycle and Tools *Strategy AssessmentPerformance Improvement and InnovationsMajor Tools for Strategic Planning
11 E-Commerce Strategy Initiation Representative Issues in E-Strategy Initiation inE-commerceFirst-Mover AdvantageManaging Channel Conflict and Disintermediation*DisintermediationPrice Conflict and Its ManagementSeparating Online and Offline OperationsBrand IndependenceStrategy in the Web 2.0 Environment and in Social Networking
12 E-Commerce Strategy Formulation Selecting E-Commerce OpportunitiesDetermining an Appropriate EC Application Portfolio MixThe BCG Model and an Internet Portfolio MapThe Viability-Fit ModelRisk Analysis in Strategy Formulation*E-Commerce riskCollaborative Efforts in Strategy Formulation
13 The Internet Portfolio Map Sources: Based on Tjan (2001), Sones (2001); and the authors’ experiences
14 E-Commerce Strategy Formulation Security Issues to Consider During Strategy FormulationOther Issues in E-Commerce Strategy FormulationManaging Conflict Between the Offline and Online BusinessesPricing Strategy*Cost-plusMultichannel StrategyAcquisitions, Partnerships, Joint Venture, and Multi EC Model Strategy
15 E-Commerce Strategy Implementation E-Commerce Strategy Implementation ProcessFind a Champion*Project championStart with a Pilot ProjectAllocate ResourcesManage the ProjectE-Commerce Strategy Implementation IssuesBuild, Buy, or Rent EC ElementsOutsource: What? When? To Whom?*OutsourcingSoftware-as-a-Service
16 E-Commerce Strategy Implementation Redesigning Business Processes: BPR and BPM*Business process reengineering (BPR)*Business process management (BPM)Change Management
17 E-Commerce Performance Assessment The Objectives of AssessmentMeasure the extent to which the EC strategy and projects are delivering what they are supposed to deliver.Determine if the EC strategy and projects are still viable in the current changing business environment.Reassess the initial strategy in order to learn from mistakes and improve future planning.Identify failing or lagging projects as soon as possible, and determine why they failed or lagged to avoid the same problems in the future.
18 E-Commerce Performance Assessment The Performance Assessment ProcessSet up performance metrics.Monitor the performance of the business.Compare the actual performance to the metrics.Conduct an analysis using analytics, including Web analytics.Combine the analysis with the methodology of the Balanced Scorecard.Present the results to management in the form of reports, tables and dashboards.
20 E-Commerce Performance Assessment Establish Metrics*MetricMeasurements in Performance Metrics*Key performance indicator (KPI)Intangible variablesE-Commerce Metrics in ActionPerformance MetricsMonitoring PerformanceMonitoring the Social Media FieldSocial Media Monitoring Tools*The Balanced Scorecard (BSC)
21 E-Commerce Performance Assessment Analyzing Performance DataDefining EC AnalyticsMajor Types of AnalysisWeb Analytics and Its Major Tools*Web analyticsSocial Media Activities*Sentiment Analysis (opinion mining)
22 Performance Improvement and Innovation An Overview of Performance ImprovementDashboards in E-CommerceWhat Is a Dashboard?*Information dashboardInnovation for Performance Improvement
23 Performance Improvement and Innovation Innovative Strategies: Some Illustrative ExamplesTarget CorporationBest BuyTravelzoo Inc.FacebookAppleCars.comGoogle+IBM
24 A Strategy for Global E-Commerce Benefits and Extent of Global OperationsGlobalization and Social NetworkingBarriers to Global E-CommerceCultural DifferencesLanguage TranslationMachine TranslationLegal IssuesGeographic Issues and LocalizationWeb LocalizationPayments in Global EC TradesEconomic and Financial IssuesE-Commerce in Developing Countries
25 A Strategy for Global E-Commerce Breaking Down the Barriers to Global E-CommerceBe strategicKnow your audienceLocalizeThink globally, act consistentlyValue the human touchClarify, document, explainOffer services that reduce trade barriers
26 E-Commerce Strategy for Small and Medium-sized Enterprises If Judy Can- You Can Too!: The Story of Blissful Tones WebstoreGlobalization and SMEsResources to Support SME activities in ECSMEs and Social Networks
28 Managerial IssuesWhat is the strategic value of EC to the organization?How do you relate the EC activities to business objectives and metrics?Should the EC activities in a brick-and-click company be organized as a separate entity?How should the e-business scope evolve?What are the benefits and risks of EC?Why do we need an EC planning process?How can EC go global?How do you manage the EC project?
29 Summary Strategy concepts and competitiveness. The strategy-performance cycle and strategy tools.E-strategy initiation.Strategy formulation.E-strategy implementation.Strategy assessment.Performance improvement and innovation.Issues in global EC.Small and medium-sized businesses and EC.