Presentation on theme: "Strategy and the Internet INBS 640 by Margaret Walsh."— Presentation transcript:
Strategy and the Internet INBS 640 by Margaret Walsh
Strategy and the Internet Internet commerce is a business direction and requires a thorough analysis of its place in the overall business strategy It is essential that the Internet planning process is not divorced from the corporate management process, but rather integrated into each stage of the existing strategy
Strategy and the Internet New technology continues to provide business opportunities and, in some cases, the potential to revolutionize whole industries E-business should be driven by business strategy, however, and not the implementation of technology
Strategy and the Internet Many pioneers of Internet business (dot- coms and established companies) violated nearly every precept of good strategy
Strategy and the Internet The Internet can be used strategically as a transformation agent to radically change the nature of the business Senior management must prepare for changes and plan in a proactive way to benefit from them
Strategy and the Internet The key to successful exploitation of Internet strategy is to find innovative ways to add value for existing customers or provide solutions for new clients
Strategy and the Internet Today the major competitors come from startups or those exploiting new technologies or innovatively leveraging the power of the Internet
Strategy and the Internet Internet strategy myths: First-mover advantage Virtual companies outpower traditional companies Multiplying rewards of network effects.
Strategy and the Internet Many industries have been reshaped by the Internet, particularly in the US : Computer software and hardware Financial Services Travel News Automobile Sales Auctioning The revolution has only just begun!
Strategy and the Internet There are two main interdependent strategic processes: 1) “Where we could place ourselves” 2) “Where we are – where we want to be”
Strategy and the Internet The Internet has caused shifts in thinking about the nature of industries, competition, marketing, customer offerings, etc. Pre-Internet Thinking Post-Internet Thinking Information must be paid for Information can be virtually given away Business arena has little collaboration Many opportunities for “win win” alliances Focus on localized markets Global markets Success breeds success Previous success may lead to failure (from following rules which are changing) Inward focused systems Outward focused systems Supplier designs product Customer designs product 9-5 Business 24 hr business Customer loyalty can be cultivated Customer choice prevails
Strategy and the Internet Internet commerce is a business direction and requires a thorough analysis of its place in the overall business strategy Four types of strategic business change: Process change Value chain Process-reengineering Transformation
Strategy and the Internet Strategic Planning Stage
Strategy and the Internet The Internet provides a technological platform reinforcing existing business strategies Originally, business executives dismissed the Internet as a fringe technology with limited business potential Internet strategies have, however, fundamentally changed companies and industries
Strategy and the Internet Web sites were originally used exclusively as marketing tools Today, strategic emphasis on Web sites is also on building customer or supplier loyalty; reducing the costs of doing business; providing new virtual products; running an virtual global organization.
Strategy and the Internet Today, companies expect Internet projects to provide the same real return expected of their traditional business investments Management structure for the evolution of Internet commerce is recommended since the systems are continually changing
Strategy and the Internet Web Strategies : Web sites should deliver compelling content and value to engage visitors and create response Identify opportunities for further online revenue-generating activities Identify opportunities for improved or additional functionality Define points of sale or interaction where you could increase conversion rates Evaluate your current use of online marketing and public relations strategies Develop an overall approach to Web strategy that maximizes competitive edge
Strategy and the Internet More Web Strategies: Identify all current and potential online markets (these may be different from traditional audiences) Make the best use of targeted promotional techniques to attract high quality traffic Provide appropriate and engaging content to draw visitors deep into your site Include compelling calls to action that generate leads and produce results Maximize revenue-generating and cost-savings opportunities to ensure optimum return on investment Decode traffic reports to optimize return on Web investment
Strategy and the Internet Search Engine Optimization (SEO) gains Web site visibility SEO is presently the most commonly used tool to strategically exploit the Internet. Definition: The strategic planning of a Web site to improve the likelihood of being selected for a top ranking in search engines, with an ultimate goal of incremental traffic to the Web site and increased revenues. 48% of US customers use Search Engines to research a purchase 84.4% of Internet users find Web sites through search engines With statistics like these, a business cannot afford NOT to optimize their Web site!
Strategy and the Internet Strategic Internet applications are developed by business execs by completing a series of steps : Understand the potential of the Internet Analyzing its potential impact on their industry Reviewing company strategies Develop Internet strategies and implementation plans expected to deliver return on investment and give competitive advantage
Strategy and the Internet Corporate Internet Strategy focuses on the potential the Internet holds for a company : Analyzing new customers and markets that the Internet can deliver New products and services the Internet has made possible Re-engineering potential the Internet holds for one’s business processes Cost-savings; with opportunities for reaching out to suppliers, customers, and even competitors.
Strategy and the Internet What’s next? As all companies embrace the Internet, the Internet itself will become neutralized as a source of advantage
Strategy and the Internet Summary: The Internet affects all business strategic thinking and is required no matter what type of company. The real winners are those who understand how the Internet changes the way businesses interact with customers and stakeholders.