how to develop an e business plan
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How to Develop an E-Business Plan
Francis Stevens GeorgeFounder & President
ETradeAFRica Consulting
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Clarification
E-Business is about interaction. It represents a more focused and comprehensive involvement of the organisation. The platform is attitude shift.
E-commerce is about transaction. It represents on aspect of E-Business. The platform is hardware and software.
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Introduction
Developing an e-Business Plan calls for the recognition of Information Technology as part of a business’s overall Value Chain.
Developing such a plan is not an easy tasks.Several reasons:
Technology in infancy Not enough historical data A long term proposition Requires a fundamental shift in management & organisation culture. Requires constant attention to technology, customers and to competition.
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Basics
Plan with needs of the customer in MIND Do not try to replicate offline processes online. Be fully aware of the changes/trends within your
industry. Be prepared to shift your attitude Encourage a culture of entrepreneurship, learning
and adaptability.
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Suppliers:-Extranet
-E-Procurment-Supply Chain
Integration
E-Business uses InformationTechnology based business practices to create competitive and distinctive advantages
Customers:-Internet
-Databases-Distribution System
-Business Model
The Company:-Intranet
-Tech Know Management
-Business Focus-Cross functional
teams
The Building Blocks
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InboundLogistics
Extranets:
Lower costs,Increase speed
Production
ERP Software:Lower costs. Customized production:Provides differentialAdvantage.
Management
Leadership:Focuses direction.Intranets:Lower costs,Facilitates betterCommunications:Innovation:Generates speed, flexibilityNew ideas.
MarketingSales
E-commerce:Lower costs,Allow new entry.Databses:Meet Market needs Better, facilitatesBetter decisions.
Customer Support
Internet:Lower costs,Speeds service
CompetitiveAdvantageThrough StrongerCustomer Relationships
Source: Strategic Electronic Marketing:Brad Kleindl
The E-Business Value Chain-Do not forget it.
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Developing the Plan-Introduction-I
An e-Business Plan should be a realistic expectation of changes in-Customer Behaviour-The technology environment-The business/Industry environment-New business and work practices due to technology,
Finally, the plan must address the use of information technology at all stages of the business.
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Developing the Plan-Introduction-II
Managers must understand the technology that underpins e-Business
-Infrastructure-Internet Protocols-Telecommunication Standards-World wide web protocols-Wireless-The future of the WWW
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Planning Stages
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Planning Stage-I
Clearly define your Vision, Mission and Business Objectives.
Clearly define your market/marketsClearly define your product or service
Assess your SWOT Determine your distinctive competences
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Planning Stage-II
Identify and describe your distinctive advantges
Remember in e-business,low cost is not a distinctiveadvantage.What is?
Differentiation
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Planning Stage-III
Clearly define the technology to realise your Vision, Accomplish your Mission, and reach your Objectives.
You must asked the following questions*Is the technology proprietary?*Are there competing technology?*Does the technology has multiple applications?
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Planning Stage-IV
The EnvironmentCompetitive Arena.Who is else is doing this?What are the barriers to entry?High/Low switching costs?
Market/Economic Arena: What is/are the market structure, First Mover already, Second Follower, Niche, Is there a Brand already? Is the market readyfor us?
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Planning Stage-V
Describe your Marketing &Operational Plan
Your Operational Plan describes how you will manage the different elements of your e-Business.Will you Outsource, Partner ?
Your Marketing Plan describes how you willSell your e-Business to its audience.Here you can mention Strategic Alliances,Partnerships if any or intending.
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Planning Stage-VI
Describe Critical SuccessFactors
INTERNAL-We are the best-We have customers already-We are serious-We know something they do notknow!
EXTERNAL-The Economy is good/Bad-There is a demand for our services-The law has changed-A competitor is bankrupt!
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Planning Stage-VII
Financial- Give a Sensible level of detailnumbers
Funding:How much will your business need?What is investment and what are costs?
Income:Where is the money?Remember E-business opens new revenue models.
HAVE A TIME FRAME: 1yr ++
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Planning Stage-VIII
The Team
EducationWork Experience
Network
Entrepreneurship
Technical Knowledge
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THERE ARE NO FAST RULES. BUT WE SUGGEST THE FOLLOWING:
-Executive Summary-Objectives-Mission-Key to Success
-Company Summary
-Product & Services
-Market Analysis Summary
-Strategy & Implementation-Marketing & Operational Plan
-Management Team
-Financial Plan
-Appendix & Attachments
Recommended length at least 20 pages
The Layout
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Keep in Mind
Evolving Technologies. Plan should not be watertight. Realistic but flexible enough to modify
BroadBand. Will open up new opportunities for new services
Wireless. In Africa, we believe this will impact WWW access far greater than the internet. Development in technologies such as WAP, Bluetooth and GPRS will open new opportunities
Legislation/Security/Privacy issues
Changing environment-competition, customers, trends, health, social issues, globalisation.
Finally, keep in mind that a Business Plan is the end result of a careful and extensive research and development projectwhich must be completed before serious writing begins.
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What comes Next?
Develop the Business ModelThis is the basic process flow indicating how the business will operate. It also shows how the business functions will be linked together.
Develop the Web Plan
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Managerial Issues
Consider the strategic value of EB Consider the risks Integration Pilot projects ROI