STRATEGIC OUTLOOK OF DIGITAL BUSINESS

Todays Lecture
E-commerce v/s e-business Going digital for traditional business Leading a company toward a new and

prosperous digital future

Steps to e-business success Successfully integrating digital projects into the

overall business model

Electronic Commerce
Buying, selling, or exchanging products, services, and information, via computer networks such at the Internet.

Delivery of goods, services, information, or payments over computer networks or by any other electronic means.
Reducing customer search and switching costs

Electronic Business
Marketing, buying, selling, delivering, servicing, and paying for products, services, and information across networks linking an enterprise and its prospects, customers, agents, suppliers, competitors, allies, and complementors. Conduct of business and business processes over computer networks based on nonproprietary standards.

E-commerce v/s E-business

E-commerce Deals with using the Internet, digital communications, and IT applications to enable the buying/selling process E-business Involves the continuous optimization of an organizations value proposition and valuechain positions through the adoption of digital technology and the use of the Internet as the primary communications medium

E-commerce v/s E-business

Three alternative denitions of the relationship between e-business and e-commerce

E-commerce v/s E-business

E-Commerce is what you doE-Business is what you are

E-Business
Enterprise designed for success in the Information Age Creates new sources of shareholder value E-Commerce Building customer loyalty Marketing Optimizing business process Selling Creating new products and services Buying of products Managing risk and compliance and services on Reaching new markets the Internet Enhancing human capital Harnessing technology Achieving market leadership

The Emerging Digital Firm

Why E-Business? Why Now?

Demand Pull The New Economy Information economy - Information content over 60% New economics of information Technological Push the ICTs Revolution Convergence of computing, telecom & media Exponential growth of the Internet Mobile communications Rapid development of the Internet Mass, public infrastructure Individuality, interactivity, mobility & consumer

experiences
Government Initiatives & Targets

E-Business (contd.)
Revolution, Revolution ... The e-Business revolution is impossible to ignore. It is transforming businesses in virtually every

industry and reshaping the global economy.

The e-Business revolution is as fundamental a

change to current society as the industrial revolution was to its preceding agrarian society.

E-Business (contd.)
The heart of e-business is interconnectivity and

interaction.
The ability to reach more people while sharing

information of increasing richness creates new opportunities for value creation in areas such as marketing, customer service, and operations.

E-Business (contd.)
In this new world, status quo is not an option.

Companies have to reinvent themselves to survive.

Given the fast pace of e-business change,

actions that once took years to accomplish must now be done in months or weeks.

Digital Economy
It is the global network of economic and social

activities, enabled by information and communications technologies, such as the internet, mobile and sensor networks.
It consists of the computers, mobile phones

and other devices.

Digital Economy
As the world continues to digitize and grow in

complexity, virtually every enterprise will need to have a great digital business model, one that creates value by engaging customers digitally.
The digital marketplace is redefining customer

relationships, the way employees work, and how companies build and exploit internal and external capabilities.

Digital Economy
Digital economy is entering a new age.

In addition to customer experience and channels,

digital technologies influence all areas of the corporation, from delivering enhanced productivity and efficiency in the core operations to substantial improvement in the way people interact and collaborate within an organization
This unprecedented change will present new

transformation challenges for CEOs regardless of industries and geographical locations.

Going Digital
Amazon. Foursquare. Facebook. iTunes. Throughout the business world, these companies

find themselves mentioned with admiration every day in an incalculable number of meetings, whether about product marketing, or customer service, or the overall digital experience.
Theres a reason: These are all category-leading

businesses built on a purely digital model.

Going Online For Traditional Businesses

Whether moving fully online or taking advantage of

this increasingly popular consumer channel for the first time can be daunting.
Not every business is ready for it and not every

business owner sees the potential benefits and savings.

The majority of businesses that are

not yet online in some format often quote many of the reasons below.

Going Online For Traditional Businesses

Traditional businesses are often held back by

fear of failure and the inability to move quickly, while many great digital businesses have been built on a cultural bedrock of innovation.
Digital businesses have advanced the notion that

fearlessness and experimentation are often strategic necessities.

However, digital innovation must be a part of

your total brand experience including employee engagement, supply chain management, and

E-Business Functions

Take things slowly

Its un-advisable to go in at the deep end with any

business, but consider your companys strengths and build your online brand slowly.
With the right advice, the right strategies, and

some good old fashioned common sense, going online may the best business decision the company has made yet!

Path Forward
Great businesses, whether theyre digital or not,

are born through innovation, creativity and smarts.

Digital businesses are simply using technology to

transform how businesses function.

The question is how traditional companies can

adopt best practices from digital ones.

Transition to New and Successful Digital Future

There are two approaches to making the transition to e-business
Take an evolutionary approach

Use new technology to enhance your current

business model
Take a transformational approach Reconfigure your business and value

propositions with the technology to reconfigure and reinvent your business

Implications of E-Business:
Evolutionary & Transformational Approach
New strategy & business models New organisational designs

New inter-organisational relations

New work organisation and new ways of

Working

Steps to E-Business Success

Seven-step Process ...

The following seven-step process can help guide

a company through its e-Business transformation.

Cover the gamut of e-business activities, from

conception to operation

Seven-step Process
1. Start High 2. Think Fresh 3. Know Your Market 4. Set Vision 5. Define Strategy 6. Create 7. Refresh Regularly

Seven-step Process
1.

(continued)

Start High
E-business is more than developing a fancy website E-business is a business rather than a technical

endeavor
Radical change (BPR) E-business initiatives may also cut across corporate

boundaries, shifting organizational structures, redefining job descriptions, and upsetting established processes.
Only corporate executives can marshal the forces and

commitment to launch an e-business program and respond the concerns of internal and external

Seven-step Process
2. Think Fresh

(continued)

The Internet revolution is radically changing the business

game.
Start with a fresh viewpoint and assume that everything is

open to question and change.

What your customers are really buying from you? Is how you deliver your product more important than the product

itself? Porters model (commodities vs. differentiation from competitor, e.g., DELL)

New ways of pricing your products and services.

Seven-step Process
3. Know Your Market

(continued)

Assess your companys current market Needs of your customers, partners, and suppliers How you can meet or exceed their needs through e-business

capabilities.
Expand upon this market awareness by identifying possible new

products, services, and business lines

Encroaching competition from existing and unknown sources Formulate your e-business vision and strategy Knowing your market means exploring your: Branding, customers, competition, supply chain, demand

chain

Seven-step Process
4. Set Vision business world
The vision defines What a company wants to do, What it wants to be.

(continued)

A long-term vision to guide your company as it enters the e-

Do not rush to strategies, actions, and results Vision <--- mission <--- goals/objectives <--- strategies <---

tactics
Complete executive buy-in is essential; executives must

promote the vision and make it part of the corporate culture therefore, employees will be imbued with new corporate vision

Seven-step Process
5. Define Strategy

(continued)

Define, select, and prioritize the initiatives needed to implement

the companys e-business vision

The strategy defines

How the company is going to get there.

Incremental actions are not enough Expect high potential returns and advantages Other factors to consider: Process change, organizational change, technical

architectures, creative needs, fit within overall vision

Seven-step Process
6. Create

(continued)

A company transforms itself through a set of coordinated

initiatives that implement that needed organization, technology, and process changes
The most difficult part of an e-business transformation is

changing the underlying business model (but does not mean to undercut the importance of technology nor underestimate the complexity of the implementation)
When building e-business site, consider: Design, content, promotion, legacy integration, development (SDLC), organizational change implementation, training

Seven-step Process
7. Refresh Regularly

(continued)

To be viable, a company must continually review,

reexamine, and revise its vision, strategies, and implementations.

Speed, innovation, and change are implicit parts of the e-

business world
Survey customers continually to learn if it is meeting their

needs and goals - making money, reaching prospects, satisfying stakeholders - in order to know when and what to change
Keep companys website design and content fresh and

exciting to attract new visitors and to keep them coming

Seven-step Process
7. Refresh Regularly (continued)

(continued)

launch promotional campaigns to drive traffic to its Website. Products, and services; to maintain and enhance its brand identity; and to garner a greater share of a market where switching costs are low or nonexistent
E-Business promises lower prices and

better selection for consumers, and unlimited opportunities for new businesses.

Successfully Integrating Digital Projects Into The Overall Business Model

Enterprises define and build powerful business models

that will facilitate their ability to compete in the global digital economy. Revitalizing Your Digital Business Model will help senior managers address the following issues:
What is the source of competitive advantage for your

digital business model? How can you manage business complexity in the global digital economy? How do you design your organization to ensure ongoing development and exploitation of internal and externally available business capabilities? How can you ensure that every employee uses the growing availability of data to contribute to the enterprises business objectives?

E-business Framework
E-Business does not affect an organizations fundamental goals, rather it provides a new ways to achieve them:
E-business adoption strategy and direction

Vision must be communicated to all stakeholders

The interaction among stakeholders

Smaller network, more flexible organizations, shifting priorities and roles

Information system and technology infrastructure

Mechanism to improve, enrich, change, and deepen relationships with key stakeholders
Culture

Need to adapt the new way, will impact on rules, belief,

E-Business Development Model

E-Business Planning Model

Successfully Transformed Digital Organisation

So, Time To Bust A Few Misconceptions.

My product is so popular that I dont need to go online If your product is that popular, there are thousands of customers searching for it online already. If you have a great thriving business, going online doesnt have to mean going completely virtual think of the Internet as an additional marketing tool. Be warned, the only area of sales that has consistently grown throughout the recession is the online retail world. It really is the place to be. My customers dont use the Internet The Internet demographic can no longer be described by the term those nerdy kids. Its used by one and all

So, Time To Bust A Few Misconceptions.

My product isnt suitable You can buy coffins, wives, a pint of milk, pet food online. I dont understand the Internet The main thing that any business needs to understand is that, for business purposes at least its just another form of advertising. Virtual shops are easier to manage and cheaper than the non-virtual kind, but ultimately its just a cunning way of getting your products into peoples homes. There are a range of sources of information and help available for businesses looking to enter the virtual world, including a massive range of advice and information from organizations such as Business Link.

Reinvention Is The Mother Of Necessity

While reinvention isnt a new idea in and of itself, its only in the

last 15 years or so that the process has moved businesses from the tangible to the intangible, from the physical to digital.
Digital technology allows for greater cost savings, scale, access,

and flexibility.
Music was transformed from one tangible medium to another for

more than 100 years until Apple leveraged its digitization, taking the music industry in a new direction via iTunes and the iPod.
Apples contribution isnt the creation of digital music itself; its the

seizing of the opportune moment to innovate within an emerging space.

So while timing isnt everything, digital has made it matter a lot

more.
Being first isnt as important now compared to ensuring that the

THANK YOU