ProjectWorld 2001 Workshop Presenter: Yogi Schulz

e-Business Projects

Managing e-Business Projects: Risks, Issues & Solutions

Case Studies
Yogi Schulz

June 2001
File: case_studies.PPT

E-tail: Gleaming Storefronts with Nothing Inside

Case Study
e-Business Projects

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

Yogi Schulz

What would you recommend as a project manager?

File: case_studies.PPT

E-tail Case Study Major Issues/Difficulties

e-Business Projects

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

Hype raises consumer expectations excessively

Yogi Schulz

Flawed business model

File: case_studies.PPT

E-tail Case Study Suggested Solutions

e-Business Projects

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
File: case_studies.PPT

H & R Block Case Study

e-Business Projects 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

What would you recommend as a project manager?

File: case_studies.PPT

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

e-Business Projects

Inadequate data confidentiality

able to see other peoples tax returns

Site outages/availability lapses

inadequate infrastructure

Software bugs
inaccurate results little or no software testing

Undermine consumer confidence and trust

Slow to poor performance

inadequate capacity/scalability

Yogi Schulz

Missing functionality
couldnt handle some states
File: case_studies.PPT

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

e-Business Projects

No online help/support call center

able to see other peoples 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

Yogi Schulz

Inadequate backup/recovery
took days to recover from a problem
File: case_studies.PPT

H & R Block Case Study Strategic Issues

e-Business Projects

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 years head start

threatens H R Blocks traditional market share

Yogi Schulz

Inability to promote related products

will slow revenue growth and profitability of mortgage and financial services
File: case_studies.PPT

H & R Block Case Study Suggested Solutions - 1

e-Business Projects

Strengthen the infrastructure:

capacity to improve response time security/privacy

Improve the tax software:

fix bugs widen the scope to meet needs

Rebuild consumer confidence and trust

Expand the business

Build services:
mortgage online trading real-time quotes stock and mutual fund research portfolio and retirement planning

Yogi Schulz

File: case_studies.PPT

H & R Block Case Study Suggested Solutions - 2

e-Business Projects

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
File: case_studies.PPT

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Holt Renfrew Case Study

e-Business Projects 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

What would you recommend as a project manager?

File: case_studies.PPT

11

Holt Renfrew Case Study Major Issues/Difficulties

e-Business Projects

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

Some products not suited to Web

Yogi Schulz

Product characteristics:
need for touch/feel in buying process need to fit/adjust product
File: case_studies.PPT

12

Holt Renfrew Case Study Suggested Solutions

e-Business Projects

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
File: case_studies.PPT

13

Emulex Corp. Case Study

e-Business Projects 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

What would you recommend as a project manager?

File: case_studies.PPT

14

Emulex Corp. Case Study Major Issues/Difficulties

e-Business Projects

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

Yogi Schulz

No personnel exit process

user id still active

Fraud difficult to detect/ counteract

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File: case_studies.PPT

Emulex Corp. Case Study Suggested Solutions

e-Business Projects

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

Yogi Schulz

Improved IW authenticity verification process

File: case_studies.PPT

16

Boo.com Case Study

e-Business Projects Form into groups

Read the Business Week Online article

June 12, 2000

Read the E-Business article

July 2000

List major issues/difficulties:

tactical strategic

Yogi Schulz

What would you recommend as a project manager?

solve immediate problems strengthen the product/service offering
File: case_studies.PPT

17

Boo.com Case Study Major Issues/Difficulties

e-Business Projects

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

Online experience difficult to execute

Yogi Schulz

Mis-read customer profile:

impatient young female desire for social aspect to shopping
File: case_studies.PPT

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Boo.com Case Study Suggested Solutions

e-Business Projects

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

Yogi Schulz

Plan for business profitability Build a bricks component to the business plan
File: case_studies.PPT

19

Nike - i2 Case Study

e-Business Projects

Form into groups Read the InternetWeek article

March 1, 2001

List major issues/difficulties:

tactical strategic

Brainstorm solutions to:

strengthen e-commerce software package implementation projects

Yogi Schulz

What would you recommend as a project manager?

File: case_studies.PPT

20

Nike - i2 Major Issues/Difficulties

e-Business Projects

Highly customized implementation Production use before testing is complete Inadequate vendor knowledge of customer and/or industry

Software packages can be demanding to implement

Yogi Schulz
File: case_studies.PPT

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Nike - i2 Suggested Solutions

e-Business Projects

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
File: case_studies.PPT

22

Future Shop Case Study

e-Business Projects 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

What would you recommend as a project manager?

File: case_studies.PPT

23

Future Shop Case Study Major Issues/Difficulties

e-Business Projects

Undermined customer confidence Hoax panicked customers

undermines customer confidence

Sensitive customer data managed poorly

mass-mailing vendor not in control not managing outsourcing relationship

Hoaxes difficult to defuse

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

File: case_studies.PPT

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Future Shop Case Study Suggested Solutions

e-Business Projects

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

Yogi Schulz

Provide some customer restitution

Define crisis response plan:

assign crisis leader orient staff about plan contents prepare communication templates

File: case_studies.PPT

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Future Shop Guaranteed Safe Shopping

e-Business Projects

Yogi Schulz
File: case_studies.PPT

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

e-Business Projects

Youve 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.
File: case_studies.PPT

Yogi Schulz 27

MSN Home Page

e-Business Projects

Yogi Schulz
File: case_studies.PPT

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One Minute e-Business Strategy

e-Business Projects

Stakeholders:
audience sponsor publishers builders/developers infrastructure support

Personalization:
personal data to collect features to offer

Promotion:
media web mail

Goals:
sell inform influence

Operation:
collecting, managing & publishing content software maintenance infrastructure operations

Yogi Schulz

Content:
domain components

File: case_studies.PPT

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Elements of an e-Business Strategy - 1

e-Business Projects

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
File: case_studies.PPT

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Elements of an e-Business Strategy - 2

e-Business Projects

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 Reid Professor of business strategy Queen'sUniversity School of Business http://itworld.ca/rx.cfm?v=J,H,20011780023&S=108297
File: case_studies.PPT

Yogi Schulz

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One Minute e-Business Security

e-Business Projects

Potential Threats:

Actions:

External & internal sabotage:

denial of service viruses malicious hacking

Physical access control Userid management Security consciousness of:

partners suppliers employees

Fraud:
credit card assumed identity

Tracking suspicious actions:

high surfing activity high return rate high credit denial

Application security vulnerabilities Lax physical access

Yogi Schulz

Attack recovery plan

File: case_studies.PPT

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Web Privacy Policy Development Considerations

e-Business Projects

Policy Inclusions:
type of info collected plan for info re-sell/give intent for info customer rights takeover/bankruptcy consequences problem resolution process

Information collected:
personal identification personal profile credit profile purchase history view/click history correspondence history

Information access:
display update/correct remove/delete userid/password
File: case_studies.PPT

Yogi Schulz

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Traditional vs. Collaborative Project Management

Traditional e-Business Projects Project Management

Collaborative Project Management External and distributed Fluid plans

Internal and local Fixed plans

Yogi Schulz

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

Results
Interactions and knowledge management

High uncertainty and risk

High speed High change

Diverse project teams

DistributedFile: decision-making 34 case_studies.PPT

Definition: Application Service Provider - ASP

e-Business Projects

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
File: case_studies.PPT

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The last of the Computer Viruses list

e-Business Projects

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.
File: case_studies.PPT

Yogi Schulz

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Managing e-Business Projects: Risks, Issues & Solutions

e-Business Projects

Yogi Schulz

Management Consultants

700, 400 - 5th Ave. S.W. Calgary, Alberta Canada T2P 0L6 Phone/Fax: (403) 249-5255 E-mail: YogiSchulz@corvelle.com Web: www.corvelle.com

President of Corvelle Management Consultants Information technology related management consulting

Project management and systems development

Computing Canada & Calgary Herald columnist
Yogi Schulz
File: case_studies.PPT

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