slide 1.1 tawfik jelassi and albrecht enders, strategies for e-business, 2 nd edition, © pearson...

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Tawfik Jelassi and Albrecht Enders, Strategies for e-Business, 2nd edition, © Pearson Education Limited 2008

Strategies for e-Business

Teaching Slides for the Conceptual Part of the Book

Creating Value through Electronic and Mobile Commerce

Thinking strategicallyThinking technologyThinking strategically about byproducts of technologyIt’s not (only) e-commerce – It’s e-businessAlmost all business has some component of e-business now….

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Table of contents (I)

1. Key terminology and evolution of e-business

2. The e-business strategy framework

3. External analysis: the impact of the Internet on the macro-environment and on the industry structure of e-business companies

4. Internal analysis: e-business competencies as sources of strengths and weaknesses

5. Strategy options in e-business markets

6. Sustaining a competitive advantage over time

7. Exploiting opportunities of new market spaces in e-business

8. Creating and capturing value through e-business strategies — the value process framework

Strategies for e-business: creating value through electronic and mobile commerce

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Table of contents (II)

9. Choosing the appropriate strategy for the internal organisation of e-business activities

10. Choosing the appropriate strategy for interaction with suppliers

11. Choosing the appropriate e-business strategy for interacting with users

12. Moving from wired e-commerce to mobile e-commerce

13. A roadmap for e-business strategy implementation

14. Building e-business competence through concepts and cases

15. Synopses of case studies

Strategies for e-business: creating value through electronic and mobile commerce

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Chapter 1: Key terminology and evolution of e-business

After this session you should be able to:

Understand what the terms of ‘e-business’, ‘electronic commerce’ and ‘mobile e-commerce’ mean;

Define the concept of strategy and recognise the different levels of strategy development;

Describe the life cycle of technological revolutions and illustrate it through different examples; and

Recognise the four main periods of the e-business evolution over the past decade and explain the peculiar characteristics of each period.

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e-business

Mobile e-commerce

Electronic commerce

Source: Adapted from D. Chaffey, 2002, p. 9.

Exhibit 1.1 Electronic business includes electronic commerce and mobile electronic commerce

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Business unit A

Business unit B

Business unit C

Corporation

R&D Production Etc.

Corporate-level strategy

Business unit strategy

Operational strategy

Exhibit 1.2 The focus of the cases is on corporate level and business unit strategy

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• Long-term direction of the firm (corporate-level strategy)• Plan development (business-level strategy)• Plan deployment (operational strategy)

To achieve…Unique positioning vis-à-vis competitorsAchieving sustainable competitive advantage

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Irruption

Frenzy(‘gilded age')

Synergy(‘golden age')

Maturity

Previous great surge

DEPLOYMENT PERIODINSTALLATION PERIOD

Next great surge

Next big bang

Big bang

Time

Deg

ree

of

dif

fusi

on

of

the

tech

no

log

ical

rev

olu

tio

n

2

1

Crash3

4

5

Exhibit 1.3 Technological revolutions move through different stages as their diffusion increases

Source: Adapted from C. Perez, 2002, p. 48.

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Technological revolution

(core country)

The Industrial Revolution(Britain)

Age of steam and railways(Britain, then spreading to Continental Europe and the USA

Age of steel, electricity, and heavy engineering(USA and Germany overtaking Britain)

Age of oil, automobiles and mass-production(US, then spreading to Europe)

'Irruption'

1770s and early 1780s

1830s

1875–1884

1908–1920

'Frenzy'

late 1780s and early 1790s

1840s

1884–1893

1920–1929

'Crash'

crash in 1797

crash in 1847

crash in 1893

crash in 1929

'Synergy'

1798–1812

1850–1857

1895–1907

1943–1959

'Maturity'

1813–1829

1857–1873

1908–1918

1960–1974

21 43 5

DEPLOYMENT PERIODINSTALLATION PERIOD

Timeline

Exhibit 1.4 Major technological revolutions during the past two centuries show similar patterns of evolution

Source: Adapted from C. Perez, 2002, p. 57.

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'Stock market crash'

0

500

1000

1500

2000

2500

3000

3500

4000

4500

5000

Year1995 1996 1997 1998 1999 2000 2001 2002 20031994

Points

Launch of Amazon.com

'Synergy''Grassroots of e-business' 'Rise of the Internet'

321

– 45%

2004 2005 2006

4

2007

Source: NASDAQ quotes taken from Factiva.com.

Exhibit 1.5 During the past decade, e-business companies have passed through four distinct periods, as is reflected in the evolution of the NASDAQ

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There are various definitions of strategy

… the direction and scope of an organization over the long-term, which achieves advantage for the organization through its configuration of resources within a changing environment to the needs of markets and fulfill stakeholder expectations.Gerry Johnson and Kevan Scholes

… the determination of the basic long-term goals and objectives of an enterprise, and the adoption of courses of action and the allocation of resources necessary for carrying out these goals.Alfred Chandler

… the deliberate search for a plan of action that will develop a business’s competitive advantage and compound it.Bruce Henderson

… the strong focus on profitability not just growth, an ability to define a unique value proposition, and a willingness to make tough trade-offs in what not to do.Michael Porter

Strategy is:

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• Other information and communication technologies such as EDI (Electronic data interchange), IOS (inter-organizational systems)

• High-cost of set-up• Proprietary infrastructures• Highly customized to companies• Number of companies using them was low• Not compatible with other infrastructures• “Islands of technology”

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• Post 1995• Internet ventures – stock market bubble• Connectivity• Database capabilities• Data mining• CRM, SCM• First mover advantages

– Amazon.com

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Among other things…Open StandardsCross PlatformsEase of Use = minimal training of usersLow Cost = reduction in software costsEase of installation and maintenance

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• March, 2000• Reason: Artificial inflation

– Novelty wore off in consumer buying– Excessive subsidies for consumer buy-in– Inflated revenues from stock market– Unrealistic cost estimates

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• Knowledge of industry structure• Knowledge of value creation• Business models • Strategy formulation

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Throughout this book, we focus on the following key characteristics of strategy

•

•

• •

Strategy is concerned with the long-term direction of the firm.

Strategy deals with the overall plan for deploying the resources that a firm possesses.

Strategy entails the willingness to make trade-offs, to choose between different directions and between different ways of deploying resources.

Strategy is about achieving unique positioning vis-à-vis competitors.

The central goal of strategy is to achieve sustainable competitive advantage over rivals and thereby to ensure lasting profitability.

Source: See also G. Johnson and K. Scholes (2002), pp. 39-46.

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Strategy and the use of technology go hand-in-handNew/modified strategies needed for e-business

slide 1.1 tawfik jelassi and albrecht enders, strategies for e-business, 2 nd edition, © pearson...

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