E-Business Strategy Formulation

E-Business Strategy

• Business scope involves identifying where the company wants to compete online, including products, market segments, and geographies
• Unique competencies involve positioning and differentiating the company in terms of e-business products and services
• Values provide an emotional element, indicating what inspires the e-business initiative

Effective Use of Information

• Adds value to customers through better quality products and services
• Enables a better understanding of customer needs and characteristics
• Helps sense and respond to market trends, competitor products, and demand

Benefits of Information

Reduce Cost

• Makes business processes more efficient
• Uses information to source, create, market, and deliver services with fewer resources

Manage Risks

• Risk management is a well-established use of information within an organization

Create New Reality

• Uses information and new technologies to innovate and create new products and services

E-Business Strategy Options

• Transactional e-commerce site
• Online catalogue facility
• E-CRM system
• Lead generation system
• Customer service management
• Personalization of content for users
• E-procurement system
• Social networks
• Partner relationship management extranet for distributors and agents

Competitor Analysis

• Organizations need to define how to best position their online services relative to competitors based on four main variables: product quality, service quality, price, and fulfilment time

Revenue Generation

• Involves generating revenue, identifying product offerings, value-added services, revenue sources, and target customers

Decision-Making

Decision 5: Marketplace Restructuring

• Reviews options for disintermediation, reintermediation, and countermediation within the marketplace

Decision 6: Supply-Chain Management Capabilities

• Involves three strategic decisions:
  • Integrating with suppliers
  • Supporting materials and interactions with suppliers through e-procurement
  • Participating in online marketplaces to reduce costs

Decision 7: Internal Knowledge Management Capabilities

• Reviews internal e-business capabilities, including how knowledge is shared and processes are developed, and intranet management issues

Decision 8: Organizational Resourcing and Capabilities

• Determines how the organization needs to change to achieve e-business priorities