file: case_studies.ppt 1 yogi schulz e-business projects projectworld 2001 workshop presenter: yogi...

File: case_studies.PPT 1

Yogi Schulz

e-Business Projects

ProjectWorld 2001 Workshop Presenter: Yogi Schulz

CaseStudies

June 2001

Managing e-Business Projects:Risks, Issues & Solutions


Yogi Schulz

e-Business Projects

E-tail: Gleaming Storefronts with Nothing InsideCase Study

Read the Business Week article– May 1, 2000, pages 97 - 98

Consider major issues/difficulties:– tactical

– strategic

Brainstorm solutions to:– solve immediate marketing/operational problems

– strengthen the brand/product/service offering

What would you recommend as a project manager?


Yogi Schulz

e-Business Projects

Hyperaises

consumerexpectationsexcessively

E-tail Case Study Major Issues/Difficulties

Ordinary/boring/pedestrian web sites– print/TV ad expectations not met by web sites

Lavish spending on promotion– excessive customer acquisition cost

Over-emphasis on growth– neglect of profitability

Poor order fulfillment– neglect of back office infrastructure

Flawed business model


Yogi Schulz

e-Business Projects

E-tail Case StudySuggested Solutions

Improve web sites:– deliver a superior customer experience

Reduce promotional expenses:– reduce print/TV advertising

– increase Internet marketing

Invest in back-office infrastructure:– warehouses

– inventory management systems

– order fulfillment capability


Yogi Schulz

e-Business Projects

H & R BlockCase Study

Form into groups

Read the Business Week article– April 17, 2000, page 200

List major issues/difficulties:– tactical

– strategic

Brainstorm solutions to:– solve immediate problems

– strengthen the product/service offering



Yogi Schulz

e-Business Projects

H & R Block Case Study Major Issues/Difficulties - 1

Inadequate data confidentiality– able to see other people’s tax returns

Site outages/availability lapses– inadequate infrastructure

Software bugs– inaccurate results

– little or no software testing

Slow to poor performance– inadequate capacity/scalability

Missing functionality– couldn’t handle some states

Undermineconsumer

confidenceand trust


Yogi Schulz

e-Business Projects

H & R Block Case Study Major Issues/Difficulties - 2

No online help/support call center– able to see other people’s tax returns

Rush to market– late to market

Poor user interface– users became confused & abandoned tax preparation

Inadequate operational monitoring– users called in to report seeing tax returns of others

Inadequate backup/recovery– took days to recover from a problem


Yogi Schulz

e-Business Projects

H & R Block Case StudyStrategic Issues

Me-too web strategy– reactive to Intuit; trying to keep up

– not a unique/differentiated strategy

Franchisees wary of cannibalizing their business– slowed development of the Web alternative

– involve Franchisees in Web initiatives

Intuit - competitor with a year’s head start– threatens H R Block’s traditional market share

Inability to promote related products– will slow revenue growth and profitability of mortgage and financial

services


Yogi Schulz

e-Business Projects

H & R Block Case Study Suggested Solutions - 1

Strengthen the infrastructure:– capacity to improve response time

– security/privacy

Improve the tax software:– fix bugs

– widen the scope to meet needs

Build services:– mortgage

– online trading

– real-time quotes

– stock and mutual fund research

– portfolio and retirement planning

Rebuildconsumer

confidenceand trust

Expandthe business}


Yogi Schulz

e-Business Projects

H & R Block Case Study Suggested Solutions - 2

Develop a distinct strategy. Consider:– a separate brand for the web initiative

– active support/participation of the franchisees

Create a call center– consider directing calls to local franchisees

Consider a more modest web start:– tax information/help pages

– tax information/help chat room

– appointment booking service for franchisees


Yogi Schulz

e-Business Projects

Holt RenfrewCase Study

Form into groups

Read the Globe & Mail article– September 13, 2000

List major issues/difficulties for:– Holt Renfrew

– its customers

– its competitors

Brainstorm solutions to:– selling through the web

– providing superior customer service



Yogi Schulz

e-Business Projects

Someproductsnot suited

to Web

Holt Renfrew Case Study Major Issues/Difficulties

Inadequate cost/benefit:– expensive site

– poor rating

– mixed customer reaction

Customer profile:– high fashion/service expectations

– urban residence; near store

– price is not a significant consideration

Product characteristics:– need for touch/feel in buying process

– need to fit/adjust product


Yogi Schulz

e-Business Projects

Holt Renfrew Case StudySuggested Solutions

Marketing; not sales oriented web site:– showcase products

– advertise new offerings

– design a custom product

– offer customer registration for e-mail notification

– offer e-mail which contains a specific page link

Strengthen bricks & mortars:– upgrade customer service staff


Yogi Schulz

e-Business Projects

Emulex Corp.Case Study

Form into groups

Read the National Post articles– September 2 and 4, 2000

List major issues/difficulties for:– Emulex

– Internet Wire

– investors

Brainstorm solutions to:– react to crises caused by fraud, mis-information

– minimize likelihood of a re-occurrence



Yogi Schulz

e-Business Projects

Frauddifficult

todetect/

counteract

Emulex Corp. Case Study Major Issues/Difficulties

Fraud/deception is easy to perpetrate

Fraudulent press release panicked investors– investor confidence undermined

Poor authenticity verification processes:– obvious text quality problems not corrected

– pressure to issue news quickly

Legal precedents unclear– potential for defamation liability

No personnel exit process– user id still active


Yogi Schulz

e-Business Projects

Emulex Corp. Case StudySuggested Solutions

Define Emulex crisis response plan:– assign crisis leader

– orient staff about plan contents

– prepare communication templates

Improve IW wire service processes:– verify authenticity through confirmation

– change passwords regularly

– implement certificates/encryption

– institute an employee exit process

Improved IW authenticity verification process


Yogi Schulz

e-Business Projects

Boo.comCase Study

Form into groups

Read the Business Week Online article– June 12, 2000

Read the E-Business article– July 2000


– strategic

What would you recommend as a project manager?– solve immediate problems

– strengthen the product/service offering

Be prepared to share analysis & solutions orally


Yogi Schulz

e-Business Projects

Boo.com Case StudyMajor Issues/Difficulties

Too much promotional spending– TV, radio and fashion magazines

– cash consumption rate too fast

Technical glitches:– innovative 3D product photography slow

– multi-lingual, multi-currency ambitions not delivered

– slow performance; high expectation of client workstation capability

Mis-read customer profile:– impatient young female

– desire for social aspect to shopping

Onlineexperience

difficultto

execute


Yogi Schulz

e-Business Projects

Boo.com Case StudySuggested Solutions

Build understanding of customer expectations

Promote via the web

Design for fast response

Contain scope:– begin with few languages; currencies

– begin with targeted/limited product line

Plan for business profitability

Build a bricks component to the business plan


Yogi Schulz

e-Business Projects

Nike - i2Case Study

Form into groups

Read the InternetWeek article– March 1, 2001


– strategic

Brainstorm solutions to:– strengthen e-commerce software package implementation projects



Yogi Schulz

e-Business Projects

Nike - i2 Major Issues/Difficulties

Highly customized implementation

Production use before testing is complete

Inadequate vendor knowledge of customer and/or industry

Softwarepackages

can bedemanding

toimplement


Yogi Schulz

e-Business Projects

Nike - i2 Suggested Solutions

Implement software packages with minimal customization for first release

Production use starts after User Acceptance Test sign-off

Support project team/software vendor in achieving customer/industry understanding


Yogi Schulz

e-Business Projects

Future ShopCase Study

Form into groups

Read the Network World article– July 14, 2000

List major issues/difficulties for:– Future Shop

– its customers

Brainstorm solutions to:– react to crises caused by fraud, mis-information

– minimize likelihood of a re-occurrence



Yogi Schulz

e-Business Projects

Hoaxesdifficultto defuse

Future Shop Case Study Major Issues/Difficulties

Undermined customer confidence

Hoax panicked customers– undermines customer confidence

Sensitive customer data managed poorly– mass-mailing vendor not in control

– not managing outsourcing relationship

Slow crisis response:– customer service notified well after incident

– time zone differences created difficulties

– timing of bank notification unclear

– correcting E-mail sent 2 days later


Yogi Schulz

e-Business Projects

Future Shop Case StudySuggested Solutions

Improve outsource vendor selection:– assess vendor stability/capability

– review business process and security infrastructure

Manage outsource vendor relationship:– test security measures

– include phony names; forwarded to Future Shop staff

Provide some customer restitution

Define crisis response plan:– assign crisis leader

– orient staff about plan contents

– prepare communication templates


Yogi Schulz

e-Business Projects

Future ShopGuaranteed Safe Shopping


Yogi Schulz

e-Business Projects

You Know You`re Taking Computers Too Seriously When...

You’ve never bought one of the "dummies" books.

You refuse to delete programs off your hard drive that you haven`t used in two years.

You buy 50 new floppies rather than go through the 300 used ones you have and delete the files on them.

You get in the elevator and double-click the button for the floor you want.

You consider reading in the bathroom to be Multi-tasking.


Yogi Schulz

e-Business Projects

MSNHome Page


Yogi Schulz

e-Business Projects

One Minute e-Business Strategy

Stakeholders:– audience

– sponsor

– publishers

– builders/developers

– infrastructure support

Goals:– sell

– inform

– influence

Content:– domain

– components

Personalization:– personal data to collect

– features to offer

Promotion:– media

– web

– mail

Operation:– collecting, managing &

publishing content

– software maintenance

– infrastructure operations


Yogi Schulz

e-Business Projects

Elements of ane-Business Strategy - 1

The right goal– Profitability

A unique value proposition which is defensible against competitors– What can the company do differently that customers will

pay for?

A distinctive value chain organization– Must links company functions and partners across major

business processes


Yogi Schulz

e-Business Projects

Elements of ane-Business Strategy - 2

Trade-offs outlining what the company will and will not do

A fit between the different parts of the organization's activities– Seeing the business as a system of value with activities that

reinforce each other

Continuity, even in the face of a fad– This takes leadership and discipline

Dr. Douglas ReidProfessor of business strategyQueen'sUniversity School of Businesshttp://itworld.ca/rx.cfm?v=J,H,20011780023&S=108297


Yogi Schulz

e-Business Projects

One Minute e-Business Security

Potential Threats:

External & internal sabotage:– denial of service

– viruses

– malicious hacking

Fraud:– credit card

– assumed identity

Application security vulnerabilities

Lax physical access

Actions:

Physical access control

Userid management

Security consciousness of:– partners

– suppliers

– employees

Tracking suspicious actions:– high surfing activity

– high return rate

– high credit denial

Attack recovery plan


Yogi Schulz

e-Business Projects

Web Privacy PolicyDevelopment Considerations

Policy Inclusions:– type of info collected

– plan for info

– re-sell/give intent for info

– customer rights

– takeover/bankruptcy consequences

– problem resolution process

Information access:– display

– update/correct

– remove/delete

– userid/password

Information collected:– personal identification

– personal profile

– credit profile

– purchase history

– view/click history

– correspondence history


Yogi Schulz

e-Business Projects

Traditional vs. CollaborativeProject Management

Traditional Project Management

Internal and local

Fixed plans

Tasks and processes

Planning and scheduling

Low uncertainty and risk

Low-to-moderate speed

Low-to-moderate change

Uniform project teams

Project leader makes decisions

Collaborative Project Management

External and distributed

Fluid plans

Results

Interactions and knowledge management

High uncertainty and risk

High speed

High change

Diverse project teams

Distributed decision-making


Yogi Schulz

e-Business Projects

Definition:Application Service Provider - ASP

A software vendor that delivers applications over the Internet or a private network

A company that delivers digital data using:– software

– hardware

– network

– content

– services


Yogi Schulz

e-Business Projects

The last of theComputer Viruses list

Elvis Virus: Computer gets bloated, self destructs, and appears in malls all over America

Schwarzenegger Virus: Terminates whatever you have running, and it will be back

Gallup Virus : 60% of the PC's infected will lose 30% of their data 14% of the time (plus or minus a 3.5% margin on error)

Sears Virus: Your data won't appear unless you buy new cables, power supply and a set of shocks.

LAPD Virus: It claims it feels threatened by the other files on your PC and erases them in "self defense".

Prozac Virus: Scrambles your RAM and your processor and doesn't really care

Politically Correct Virus: rephrases the "Abort, Retry, Fail" prompt as "Choice, Retry, Success-Impaired".

Consultant Virus: Type in a question, and it responds "What would you like the answer to be?"

Freudian Virus: Your computer becomes obsessed with the motherboard

PBS Virus: Your computer interrupts the program you are running and starts making passive-aggressive pleas ("If you don't help, I guess I just won't be here anymore") asking for money every 55 minutes

AT&T Virus: Every 3 minutes it tells you what great performance you are getting

MCI Virus: Every 3 minutes it reminds you that you're paying too much for the AT&T virus

Bureaucratic Virus: Divides your hard disk into hundreds of little units, each of which does practically nothing, but all of which claim to be the most important part of your computer.


Yogi Schulz

e-Business Projects

700, 400 - 5th Ave. S.W.Calgary, Alberta Canada T2P 0L6

Phone/Fax: (403) 249-5255E-mail: [email protected]

Web: www.corvelle.com

President of Corvelle Management Consultants

Information technology related management consulting

Project management and systems development

Computing Canada & Calgary Herald columnist

Managing e-Business Projects:Risks, Issues & Solutions

Yogi Schulz

Management Consultants

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