Chapter Thirteen Chapter Thirteen Translating e-Business Strategy into Action: E-Blueprint Formulation www.ebstrategy. com 2 - © e-Business Strategies, Inc. Introduction Introduction E-Business blueprints the missing link between strategy and execution An e-Business blueprint is the whole fabric of applications, processes, and services that shape and sustain customer value e-Commerce Value Proposition What is the customer looking for? Strategy Formulation e-Business Application Foundation What applications are needed to facilitate value creation? e-Blueprint Planning www.ebstrategy. com 3 - © e-Business Strategies, Inc. Setting Stage for e-Blueprint Planning Setting Stage for e-Blueprint Planning Today’s e-business efforts – Vague ideas substitute for cohesive management and well- developed plan – Intuition, not reason, directs development of new plans With rising tech spending, e-blueprint planning more important and difficult – Tech investments not linked to definable e-strategy – Difficult to make tech-related decisions – Analysis and implementation of tech projects meeting stated objectives rare – Confusion about tech due to high market activity Strategic alignment between business models and decisions on tech spending seen necessary www.ebstrategy. com 4 - © e-Business Strategies, Inc. Focusing on e-Blueprints, Not Single Focusing on e-Blueprints, Not Single Projects Projects Today, e-business projects being treated the same as any other initiative – Each e-effort undertaken as one project at a time – No forethought of achieving economies of scale and scope or shared resources – No shared strategic vision in place – Mergers and acquisitions compounding problems Causing serious app infrastructure problems E-business blueprint planning hurdles – Lack of political will – Departmental resistance giving precedence to individual projects over enterprise-wide need – Microsoft alternative to single-project mentality highly successful www.ebstrategy. com 5 - © e-Business Strategies, Inc. Focusing on e-Blueprints, Not Single Focusing on e-Blueprints, Not Single Projects Projects Work backwards Time Thinking Ahead Approach An e-Blueprint combines a clear understanding of where you need to be with what needs to be done. Goal Where do we need to be 3 years from now? Where should we be next year? You are here And next year? Time Incremental Approach An incremental approach to application development will not work in the e- Business world. Goal Why some companies stagnate . Why some companies grow . And next year? You are here www.ebstrategy. com 6 - © e-Business Strategies, Inc. Beginning the e-Blueprint Journey Beginning the e-Blueprint Journey e-Business Design Customer Drivers Technology Drivers Organizational Drivers Business Drivers e-Business Aggregate Blueprint Individual Application Framework Projects Corporate Goals & Objectives Technology/Innovation Strategy Customer/Market Strategy www.ebstrategy. com 7 - © e-Business Strategies, Inc. Beginning the E-Blueprint Journey Beginning the E-Blueprint Journey Approaches for e-blueprint planning – Short-term • Patch together an e-blueprint plan incorporating the company’s existing apps – Long-term • Start over with an entirely new group of apps as the core piece of its e-blueprint plan www.ebstrategy. com 8 - © e-Business Strategies, Inc. To Patch or Not to Patch To Patch or Not to Patch Three challenges when deciding to patch or not to patch existing infrastructure – Integration of existing infrastructure – Building seamless infrastructure on a fragmented app base • Front-end experience for customers must be a seamless, well-integrated service delivery platform – Knowing when to walk away and start over www.ebstrategy. com 9 - © e-Business Strategies, Inc. Evaluating Your Company’s e-Business Evaluating Your Company’s e-Business Blueprint Process Blueprint Process Red flags indicating e-blueprint process in trouble – Platform projects take too long – Many substandard projects in pipeline for years – All projects being implemented are long-term, multibillion dollar, big bang efforts – Almost all projects reinventing the wheel – Too much procrastination when making decisions – Project interdependence difficult to manage – Lack of communication and business side buy in www.ebstrategy. com 10 - © e-Business Strategies, Inc. Basics of e-Blueprint Planning Basics of e-Blueprint Planning e-Blueprint Creation Create a Prioritization Framework • 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 Facilitation Make a Business Case for Action e-Blueprint Execution Tactical Implementation • What is our chosen path? • Are we following our plan? • How do we keep the plan relevant? • Who 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? Key Objectives Action Plan Feedback Feedback [...]... senior-mgmt involved in e-business decisionmaking? • 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. .. and IT staff are then responsible for implementing the technology to fulfill that department’s business goal © e-Business Strategies, Communicate, Communicate, Communicate • Create an elevator pitch • Create a cross-functional e-blueprint team • Take baby steps • Clearly communicate plans and benefits of the new e-blueprint • Document success and publish results © e-Business Strategies, The Problem...E-Blueprint Creation: Defining the Blueprint in Your Company Five steps of e-blueprint creation 1 2 3 4 5 Establish aim of overall e-business design Establish scope of the effort Classify and analyze the app frameworks Prioritize what needs to be done For each app framework, design the execution plan © e-Business Strategies, E-Blueprint Creation: Defining the Blueprint... don’t get it © e-Business Strategies, Why e-Business Initiatives Fail Don’t worry about communicating Blueprint doc is 3 binders thick, full of checklists and spreadsheets Don’t bother with process or project mgmt Don’t waste time taking baby steps to execute Don’t factor in periodic feedback as an opportunity for course correction Don’t factor in existing projects © e-Business Strategies, E-Business Strategies,... Your Company Step 1: Establish aim of overall e-business design © e-Business Strategies, E-Blueprint Creation: Defining the Blueprint in Your Company Step 2: Establish the scope of the effort – Map your ebusiness design into 3 types of improvement • Process improvement • Strategic improvement • Business transformation Strategic Improvement Business Transformation Focus of Change Build exceptional internal... and decisionmaking process © e-Business Strategies, e-Blueprint Facilitation: Making a Business Case for Action Key elements of an e-Business case Idea Customer selection Value proposition Where? (are we going) Why? How? (will we get there) (will we win) Differentiation Metrics When? (will we get there) Technology selection Scope selection Project Selection © e-Business Strategies, Channel... customers © e-Business Strategies, e-Blueprint Facilitation: Making a Business Case for Action E-Business business case checklist – Setting business direction should be preceded by realistic look at the marketplace and at a company’s circumstances – After that, responsible mgrs must follow these guidelines • Develop a goal statement • Set measurable goals • Set objectives • Develop short- and long-term action... measurable goals • Set objectives • Develop short- and long-term action plans • Gain approval © e-Business Strategies, The Serious Business of e-Blueprint Planning Aligning strategy with e-business execution a serious undertaking E-blueprint necessary – Builds creative work environment in which steady stream of high-potential ideas can emerge and be manifested through enterprise’s infrastructure and strategy... Entrepreneurial Measuring Progress Efficiency targets Market share © e-Business Strategies, E-Blueprint Creation: Defining the Blueprint in Your Company Step 3: Classify and analyze the app frameworks © e-Business Strategies, E-Blueprint Creation: Defining the Blueprint in Your Company Example of App Framework Project: B2B portal • Web-based order capture tools • Credit • Availability • Price • Customer... Strategic Profitability analysis © e-Business Strategies, • Multi sourcing • Multi shipping • Distribution • Price management and invoicing • Returns and claims • Service & Warranty E-Blueprint Creation: Defining the Blueprint in Your Company Step 4: Prioritize what needs to get done Screen 1 Screen 2 Screen 3 phase 1 Define the Aggregate Blueprint - Highlevel Design © e-Business Strategies, phase 2 Define . Chapter Thirteen Chapter Thirteen Translating e-Business Strategy into Action: E-Blueprint Formulation www.ebstrategy. com 2 - © e-Business. creation? e-Blueprint Planning www.ebstrategy. com 3 - © e-Business Strategies, Inc. Setting Stage for e-Blueprint Planning Setting Stage for e-Blueprint