R. MANOHARAN
Microsoft Certified Professional
Professor & Head – Department of Computer Applications
MCA, M.Phil(CS), MCP, MBA, M.COM, GDMM(IIMM), PGDCA, ADCA,DSADP,CIC,
(Ph.D, ME)
SNS COLLEGE OF TECHNOLOGY
Coimbatore – 641 035
Abstract: The intention of this paper is to materialize the process of an e-business creation
from the initial idea identification to implementation. Numerous decisions that have to be
taken along the way have been discussed and the subsequent steps of implementation is
highlighted.
Only the last approach will offer the opportunity to proactively create significant value and
not exclusively focus on the protection of an existing franchise.
Idea identification: e-business idea are countless and multiplying. They develop out of the
desire to create value for both customers and shareholders through an e-business initiative.
When every organization hopes to identify the next ‘killer application’, what looks an
ingenious process of developing breakthrough ideas has much more to do with the careful
examination of an opportunity space, the assessment of existing assets to be leveraged and
the identification of a market opportunity. It is also evident that only part of the answer is
contained in company specific and market characteristics; but another key lies with in the
company’s risk appetite, sense of competitive urgency, and strategic ambitions. These latter
factors need to assessed as thoroughly as the former ones to determine the optimum e-
business strategy for a particular company.
Opportunity space: Opportunity space is the set of possible option introduce e-strategies in a
corporate environment. Thereby an organization is seeking to leverage the potential of new,
networked and Internet-based technologies to create additional value by either improving
franchise or building new business.
New Business
Development
Asset Leverage : At the initial starting point for a new business the existing assets of the
incumbent organization – be it customer base, physical assets such as production and
distribution facilities, company-specific know-how and the existing relationship network –
need to be evaluated carefully. In many cases of mature bricks-and-mortar industries this
might be non-trivial undertaking, requiring a creative translation of existing assets into a
clear competitive advantage.
Market Opportunities: While the issue leverage is solely based on internal competencies,
an external view needs to be included as a starting point of e-business initiative. Thorough
industry comprehension combined with continuous and systematic market scanning activity
will continuously generate opportunities. With the inherent knowledge of an industry the
viability of these opportunities can be matched against market realities and a subsequent
business proposal can be drafted. Thus this window on outside opportunities might have
been institutionalized merely for purposes of competitive intelligence, but will now also
serve as a systematic opportunity identification tool.
Design: A parallel view of the long and short term is the best approach to e-business design.
That is, developing a longer term (that is, three to six years out) view of what industry could
look like, how value will be created and what the desired positioning within the landscape
would be. In parallel developing a more tactical, highly iterative near-term action plan
focused on placing targeted ‘bets’ by ‘testing and learning’ with an iterative approach to
positioning, value proposition, business model, financial modeling and corporate design –
guided by the longer term view.
Positioning:
E-business game board
Key segments
Front end Back end
* Internet service * Portal * Action sites c C2C
Provider (ISP) * Community * Classifieds
* Secure payment
service provider * Product Information Intermediation
* Application (Brochure ware) * Portal
service provider * Product innovation * Hub B2C
(ASP) expertise * B2C verticals/horizontals
Infrastructure oriented Product & Content oriented Customer & Supplier oriented
E-business positioning option
Productivity
INPUT OUTPUT
Waste Control
Cost Control
Cost Reduction
E
Education Choice Comparison Price Execution Service
What do you What could you What do you How much do What worries What will make
want, need, have ? value ? you want to you ? this work ?
have know ? pay ?
Business Model: The business model determines in which way an e-business is aiming to be
remunerated and create value for its shareholders through a specific combination of revenue
and cost models. We can distinguish into three generic models.
The above business models are closely linked to the three orientation of building an e-
business – infrastructure, product or customer orientation – described above.
Corporate Design: From organizational perspective, one are of concern has been the
compatibility of organizational cultures between the existing corporate and the new
established e-business. Skill sets and motivation schemes which are very different from
corporate standards may be required. This divergence in requirements may well offset the
synergy potential and warrant a more autonomous, that is, dot-com, design. Taking into
account these strategic, financial and organizational elements will allow a sensible decision
on the corporate design for any e-business project.
Execution :
Execution
Implementation
After the idea identification and design phase, a rigorous execution completes the process of
materializing an e-business (above fig-4). In the execution phase the most critical elements
are the detailing of the value proposition, a successful customer acquisition and retention
process, the thorough understanding of organizational and cultural implications as well as
partnership development. A first step requires a breakdown of the value proposition into a
system of sub-value proposition. Within each of these the Unique Selling Point (USPs) are
delineated. And based on these USPs the key content features and actual functionalities need
to be defined to facilitate operational implementation. This means defining key features and
describing each functionality at a very detailed level. Only through application of this top-
down approach paired with rigorous project management can a successful implementation be
achieved.
Online business logic : The market is providing disproportionate returns to first movers. This
reflects the importance of becoming one of the very recognized leaders in a category and
managing to build up quickly a large base customer. It is therefore, vital to practice an online
business logic that reflects the following customer acquisition and retention mechanism.
• Attract visitors to the site
• Transform visitor into prospects and subsequently into clients
• Generate loyalty with visitors and clients
• Continually attempt to differentiate your product and service offering from that of
your competitors.
Conclusion :
The above track might lead
Digital to Digital Economy
as expected as
“Emerging Global Digital Economy”
Reference
• Mr.Stephen, Mr,Bornhem - “ E-road mapping”