BS3912 Week 3 1

Managing e-Business & High Tech. (3)

Last week» e-Business

Reading: Chaffey et al: E-Business and E-Commerce Management (2007) Ch.2

» Brain-storming assignment ideas

This Week – the challenges for managers(Chaffey, Chapter 10 – Change Management)» Identify the changes needed» Develop Outline Plan» Understand impacts on the organization structure

and on individuals within it

BS3912 Week 3 2

Key Factors in Achieving Change

Chaffey (2007), p.459

BS3912 Week 3 3

eBusiness: The Challenges for Managers

Key Factors Scale of Change Planning & Prototyping HR Requirements Structures Managing HR Aspects of Change Culture Knowledge Management Risk Management

BS3912 Week 3 4

Managing Risk

“What we anticipate seldom occurs: what we least expect generally happens.” (Disraeli (1880).

Endymion)

Prudent measures for a company entering eBusiness:» Anticipate necessary changes» By learning lessons from eBusiness Pioneers

– Applying Best Practice,– Adopting Risk Management

It’s possible to be Proactive and to Manage Change Successfully

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Think about impact of B2C introduction on

Marketing Manager

Warehouse Manager

IS Manager

Call-centre employee

HR Manager

(consider legitimate fears and hopes for each individual)

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Marketing Manager

Hopes » Potentially larger budget» Can use new channel to enhance existing ones

Fears» Need to become visible in the B2C channel

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Warehouse Manager

Hopes » More responsibility => more staff, equipment

Fears» Greater throughput gives pressure on buffer stock» Warehouse capacity under pressure» Capacity of supply-chain may be inadequate» Threat to just-in-time processes» Underresourced

BS3912 Week 3 8

Information Services Manager

Hopes » Increased importance for IS» Experience of new tools and technologies» Justification for Business continuity location

Fears» More risk» Availability becomes critical 24*7

Also» Direct interaction with customers requires

understanding of user demographic

BS3912 Week 3 9

Call Centre Employee

Hopes » New role of providing customer assistance» Job enrichment

Fears» Reduction of sales through Call Centre» Fear of redundancy» Perceived as overhead rather than revenue earner

BS3912 Week 3 10

Human Resources Manager

Hopes » Training and development role enhanced» Good for the CV

Fears» May not have skills required to select e-Commerce

technical staff» Potential redundancies to manage in existing channel –

even unjustified fears of operations staff need managing» Resources may not keep up with added responsibility

BS3912 Week 3 11

Challenge 1 – Scale: How Big?

Large or Small Scale Change(s)? (BPR versus BPI)

Caution in achieving change

Don’t go too far too fast!

Always take care you’re not just doing the wrong thing faster

Staged approach usually best (Davenport 1993)

What are these?

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Challenge 2 – Planning

First we must have a Specification of:» Objectives, strategy and tactics of proposed system» Clear definition of what the final processes should be

Next plan how to roll out the changes needed» Detailed system design – may involve prototypes» Enumeration of activities needed, and estimate of cost

(Work breakdown)» Resource allocation

– Elapsed time– Effort time (staffing × length of time used)– Critical path

Monitoring and Control – manage this as a project

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Prototyping

During prototyping – Prototype web pages only viewable by Company Staff

Key Stages: » analysis» design» development» test / review

Types: throwaway, evolutionary, incremental» Make sure you know which type you’re using

BS3912 Week 3 14

Chaffey 2007, p.470

Stages in developing e-business solution

BS3912 Week 3 15Chaffey 2001, p.387

BS3912 Week 3 16

Challenge 3 – HR Requirements

Staff Recruitment (skills needed)» Web Designer» Web Developer» Webmaster» Online Marketer» Project Manager

Staff Retention» Job Characteristics Model (Hackman & Oldman)

Outsourcing? » Search-engine optimization

Consultant

See Chaffey 2001 p.391 for some ideas on text for the advertisements (3rd edition assumes you know how to do it)

Don’t ignore the value of those who understand your company culture

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Challenge 4 – Company Structures

How do with manage the venture within the company?a. No formal structureb. Separate committeec. Separate business unitd. Separate operating company

The Hierarchy:» Of the venture itself –

Shallow structures may improve chance of success!» Of reporting to the original company

BS3912 Week 3 18

Chaffey 2001, p.396

How do these map to points a-d on previous slide?

More detail 3rd edition p.480

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Challenge 5 – Managing the Human Aspects

Achieving Management Commitment

Achieving Staff Commitment

Changing the Corporate Culture

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Transition Curve – Reaction of Staff

Chaffey 2004, fig10.7 (after Bocij, 2003)

BS3912 Week 3 21

Conclusions

There are many formulae for failure, few for success!

Best approach is to start with the absolute requirements of the new model, then» Work out what must be done to deliver them» You may not need to stir up unaffected areas

Define the parts of the current system that:» Have to change» Shouldn’t change» Needn’t change but would give benefit if they did

Decide on what should change, andPlan the work needed to achieve this

BS3912 Week 3 22

Assignment 1: Due 9 May

Assignment takes the form of an initial business proposal for one of the following: » a start up e-business company, » introduction of a high-technology product or » introduction of e-business to an existing company

Register your choice to avoid duplication You will need to come up with a suitable innovation:

» Write enough to explain what is proposed» Analyse the opportunity, risks and capital requirement» May consult banks’ business plan pro-formas

Tests your ability to analyse the business-case, not the quality of the innovative idea itself

BS3912 Week 3 23

Examples from Previous Years

Developments Tablet PCs in Fire prevention Restaurant ordering on-line Touch-screen kiosks Crop sprayer B2C Server consolidation Roadwork maps: on-line service

to minimize disruption & waste Document Management system

in Local Government Storage integration Analysis of Thos Cook on-line

commerce, with new proposal New info system for schools

Start Up Surgeons-Net: software to

assist hospital surgeons Customized T-shirts justifying

premium price Cricket equipment B2C Marine incident emergency

service B2C Online optician IBP Photo albums

New Services Homelink Library service Cross-border trading Contact Centre Bus pass printing Info terminal for enhancing

service in health-food store

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Assignment 2: Due 6 June 2011 You need to prepare and write a detailed plan for

deploying the change you proposed, into the same existing or start up e‑business company» Will include Critical Path Analysis

Assessment criteria concentrate on your understanding of the issues involved in managing high-technology ventures, and the logic and clarity of your analysis

If you are not around to hand in the assignment in person, please submit over the Learning Network, or make sure you use recorded delivery and that the package is postmarked on or before the due date

BS3912 Week 3 25

Marking Scheme

Assignment 1(5 elements: equal weight) Executive Summary Introduction Market analysis and/or

SWOT Costings Analysis

Assignment 2 (5 elements: equal weight) Executive Summary Introduction and update to

part 1 Deployment planning Completeness of coverage Analysis

BS9 Week 26

Brainstorming Assignment Topics

Goal is to get a list of topics being covered by each student