- KEY ACTION POINTS
1
- EXECUTIVE
SUMMARY
3
- Chapter 1: OVERVIEW
OF ELECTRONIC BUSINESS 7
INTRODUCTION 7
THE BENEFITS 8
A key issue 9
Reducing time and costs 9
Product and process innovation 10
THE MARKETPLACE CONTEXT 10
Niche marketing 10
E-BUSINESS AND SMALLER FIRMS 12
DIFFERENT WAYS OF APPLYING E-BUSINESS TECHNOLOGIES 12
IMPLEMENTATION AND APPLICATION ROAD MAP 13
Understanding application potential 13
Appreciating the barriers to adoption 14
Investigating the strategic dimension 14
Developing knowledge of the costs involved 14
Adopting an assessment and implementation approach 14
Developing a business case 14
- PART I: INTRODUCTORY
MATERIAL FOR EXECUTIVES 15
- Chapter 2: THE
INTERNET 17
INTRODUCTION 17
TO BEGIN AT THE BEGINNING 19
THE IMPORTANCE OF THE INTERNET 21
LOOKING BEYOND THE INTERNET 23
Embedded Microprocessor Systems 23
Smart Cards 24
Multimedia and User Friendly Computing 24
Digital Broadcasting 25
THE INTERNET IS DEFINITELY NOT FOR ME! 25
IS THERE LIFE BEYOND THE DOTCOM BUBBLE? 26
AND SOME DEFINITIONS 28
- Chapter 3: THE
INTERNET NOW AND IN THE FUTURE 29
INTRODUCTION 29
WHAT COMPANIES ARE DOING TODAY 30
Agilent Technologies 30
British Airways 31
Clyde Blowers 31
Dell Computers 32
Electrolux 32
Ford 32
Frigomechanica 33
General Electric 33
GKN 34
Intel 34
Rolls-Royce 34
Rover Group 34
J. Sainsbury plc 35
Styles Precision Components Limited 36
Unipart 36
United Technologies 36
BEYOND THE INTERNET AND THE WEB - THE GRID 37
PEER-TO-PEER NETWORKING 38
SEVEN FUTURE SCENARIOS 40
Picture this #1 41
Picture this #2 41
Picture this #3 42
Picture this #4 42
Picture this #5 43
Picture this #6 43
Picture this #7 44
- Chapter 4: ON-LINE
EXPERIENCES 47
INTRODUCTION 47
SOME SPECIFIC USER EXPERIENCES OF THE ON-LINE WORLD 48
Action Computer Supplies 49
Amazon 50
Argos 50
Barclays On-line Banking 50
Equitable Life Assurance 52
First-e 52
La Redoute 53
Nationwide Building Society 53
W.H. Smiths 54
Tesco 54
ToysRus 54
UK Customs & Excise VAT Return Electronic Submission Pilot
55
Value Direct 55
WHAT THE SURVEYS ARE SAYING 56
- Chapter 5: SURVEY
OF SURVEYS 59
INTRODUCTION 59
GROWTH 59
INDUSTRY TAKE-UP AND AWARENESS OF BENEFITS 63
SECURITY 66
- Chapter 6: THE
NEED FOR AGILITY 69
INTRODUCTION 69
WHAT IS AGILITY? 70
- PART II:
CASE STUDIES 73
- Chapter 7: CASE
STUDY: GENERAL ELECTRIC - THE INTERNET IN A GLOBAL DIVERSIFIED
COMPANY 75
SUMMARY 75
COMPANY BACKGROUND 76
THE BUSINESS ISSUES 77
DESCRIPTION OF ACTIVITIES AND APPROACH 78
Approach 78
Buy Side Activities 80
Sell Side Activities 80
Internet Businesses 82
ANALYSIS AND COMMENT 84
- Chapter 8: CASE
STUDY: J. SAINSBURY - THE INTERNET IN FOOD RETAILING 87
SUMMARY 87
COMPANY BACKGROUND 87
THE BUSINESS ISSUES 88
DESCRIPTION OF ACTIVITIES AND APPROACH 89
Strategic Direction 89
Joint Ventures 91
Supplier Information 92
Trade Exchanges 94
Smaller Suppliers 95
Food Retailing on the Internet 96
ANALYSIS AND COMMENT 98
- Chapter 9: CASE
STUDY: STYLES PRECISION COMPONENTS - THE INTERNET ENABLING VIRTUAL
MANUFACTURING RESOURCES 101
SUMMARY 101
COMPANY BACKGROUND 101
THE BUSINESS ISSUES 102
DESCRIPTION OF GLOBAL RP’s CYBERBUILD SERVICE 103
ANALYSIS AND COMMENT 104
- PART III:STRATEGIC,
BUSINESS AND IMPLEMENTATION ISSUES 107
- Chapter 10:
STRATEGIC MATTERS 109
INTRODUCTION 109
A MODERN STRATEGIC VIEW 110
Interrelationships between strategy and technology 112
Enabling innovation 112
THE STRATEGIC ISSUES 113
THE STRATEGIC NATURE OF THE TECHNOLOGIES 114
THE TECHNOLOGIES USED TO ENABLE NEW STRATEGIES 115
THE IMPACT OF E-BUSINESS ON THE ACHIEVEMENT OF BUSINESS OBJECTIVES
118
EXPLOITING STRATEGIC BENEFITS IN THE MARKETPLACE 118
Exploiting lead time reductions 119
Exploiting improved product quality 119
Exploiting improved development productivity 120
Supporting expeditionary marketing 120
STRATEGIC ASPECTS OF ORGANISATIONAL AND CULTURAL CHANGES 121
DEVELOPMENT OF CHANGE COMPETENCIES 122
Operational change competency 124
Tactical change competency 124
Strategic change competency 125
Achieving change competency 126
DEVELOPMENT AND EXPLOITATION OF KNOWLEDGE 126
Knowledge of the customer 126
Knowledge of the technology 127
Process knowledge 127
OTHER STRATEGIC ISSUES – GLOBALISATION AND OTHER INFORMATION
TECHNOLOGIES 127
- Chapter 11:
THE COST DIMENSION 129
INTRODUCTION 129
THE COSTS OF E-BUSINESS 129
Technology development 130
Additional information technology systems 131
Computer hardware and software 131
Integration costs 131
Consultancy support 132
Recruitment and training 132
Organisational and working practice changes 133
New or upgraded utilities 133
Maintenance and repairs 133
Office layout changes 133
E-business services 134
Supply chain development 134
Security 134
Legal Fees and compliance costs 134
Learning curve 135
Health and safety compliance 135
IMPLICATIONS 135
- Chapter 12:
DEVELOPING A BUSINESS CASE 137
INTRODUCTION 137
HOW TO USE THIS CHAPTER 137
UNDERTAKING STRATEGIC ASSESSMENT 138
Technical importance 138
Business importance 139
Competitive advantage 139
QUANTIFYING INTANGIBLE BENEFITS 139
ISSUES TO ADDRESS IN THE BUSINESS CASE DOCUMENT 140
Describe current situation and implications 141
Describe alternative options and recommendation 141
Describe recommended changes to strategy 141
Describe organisational and culture change issues and implications
141
Describe strategic importance 142
Describe the departments where the benefits will be achieved
142
Describe the potential new revenues generated 142
Describe the cost savings that will be achieved 142
Describe the costs 143
Describe the results of the evaluation and selection 144
Other matters 144
- Chapter 13:
ASSESSMENT AND IMPLEMENTATION PROCESS 147
INTRODUCTION 147
HOW TO USE THIS CHAPTER 148
REVIEW OF ISSUES 148
MAJOR FACTORS AFFECTING THE ASSESSMENT AND IMPLEMENTATION 149
Interrelationship between strategy and technology 149
Pace of technological change 150
The wide range of possible applications 150
Complexity of the issues 150
A SUGGESTED ASSESSMENT AND IMPLEMENTATION PROCESS 151
Structure of the process 151
Stage 1 – Initial assessment 152
Gate 1 – First management review and decision point 154
Stage 2 – Detailed assessment 155
Gate 2 – Second management review and decision point 156
Stage 3 – The implementation project 156
Feedback loops – periodic reviews 156
COMMON IMPLEMENTATION MISTAKES 157
Typical implementation deficiencies 157
Typical causes of deficiencies 158
Business benefits of mastering implementation 158
GUIDANCE ON MANAGING TECHNICAL AND ORGANISATIONAL CHANGE 160
CHECKLISTS FOR MANAGING CHANGE 162
Basics 162
Beginning to move beyond the present situation 162
Actions to support change 163
ORGANISATIONAL IMPACTS OF TECHNICAL FEATURES 163
ASSESSING E-BUSINESS SERVICE PROVIDERS FROM A SUPPLY CHAIN MANAGEMENT
PERSPECTIVE 166
TACTICS TO DEAL WITH DIFFICULTIES 168
Demonstration project 169
Using external service providers as a starting point 169
Benchmarking other industries 169
Research and development projects 170
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