Roadmap for e-business implementation in Extended Enterprises
e-volution – Road map for ebusiness implementation in
Extended Enterprises
Training material for e-volution
methodology
Project funded by the European Community under the ‘Competitive and Sustainable Growth’ Programme (1998-2002)
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Roadmap for e-business implementation in Extended Enterprises
Table of content
Introduction
Methodology Module 1: Definition of Business
Objective System
Methodology Module 2: Organisation Analysis
Methodology Module 3: Market Analysis
Methodology Module 4: E-business Strategy and
Roadmap Formulation
Project funded by the European Community under the ‘Competitive and Sustainable Growth’ Programme (1998-2002)
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Roadmap for e-business implementation in Extended Enterprises
Introduction
Project funded by the European Community under the ‘Competitive and Sustainable Growth’ Programme (1998-2002)
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Roadmap for e-business implementation in Extended Enterprises
The e-volution concept - successful implementation of e-business in Extended
Enterprises
Based on approved models, e-volution
offers an e-business road mapping
methodology that fulfils the
requirements of a systematic and goaloriented planning of e-business
implementation.
e-business road
mapping methodology
Software tools
The methodology is the starting point for
the use of phase specific, supporting
software tools.
The e-volution training package is for
transfer and teaching how to apply the ebusiness road mapping model, methods
and tools.
The e-volution Content Service
disseminates the e-business road
mapping model with its methods and
tools but also know-how about ebusiness.
Training package
Content Service
Project funded by the European Community under the ‘Competitive and Sustainable Growth’ Programme (1998-2002)
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Roadmap for e-business implementation in Extended Enterprises
Methodology
 Concept
 Thematic modules
 Methods
 Instruments
Purpose
 Enabling methodology for implementation, adaptation and
optimisation of e-business strategies for Extended
Enterprises, covering the whole supply chain
 Consolidation of existing and new know-how, methods and
instruments, and expertise from science and consulting
praxis for e-business strategy development in an integrative
approach
 Framework for integration, processing and coordination of
e-business related management activities
Fields of application
 Strategic e-business planning inside EE constellation as
enabler for the EE business concept
 Preparation of e-business related decision making
Project funded by the European Community under the ‘Competitive and Sustainable Growth’ Programme (1998-2002)
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Roadmap for e-business implementation in Extended Enterprises
Software tool-kit
WEB
Purpose
 Integrated software suite to support and enable
efficient methodology application (e-volution tool-kit)
 Interactive tools for use within workshops, individual
or remote working sessions
 Data and information processing, documentation and
reporting
Fields of application
 Data and information processing
 Management decision support
 Data warehousing
Project funded by the European Community under the ‘Competitive and Sustainable Growth’ Programme (1998-2002)
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Roadmap for e-business implementation in Extended Enterprises
Objectives and benefits of the training concept
• Development of overall understanding about
the e-volution concept and how to use the
methodology and software tool-kit in practice
• Development of skills for method and
software tool application by target groups in
practice
Project funded by the European Community under the ‘Competitive and Sustainable Growth’ Programme (1998-2002)
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Roadmap for e-business implementation in Extended Enterprises
Agenda: Training on Methodology Module 1
Step 1: Introduction
– Purpose and objectives, structure, positioning
– Practical application environment
Step 2: Methodological approach
Step 3: Tool-kit support
Project funded by the European Community under the ‘Competitive and Sustainable Growth’ Programme (1998-2002)
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Roadmap for e-business implementation in Extended Enterprises
Module 1 purpose and objectives
Module purpose
• development of a common and homogeneous
understanding about the enterprise, its high-level
business objectives and strategies
• analysis, description and presentation of hierarchy of
business objectives for the Extended Enterprise as
well as the single enterprise
• Provision of:
1. decision support regarding solution alternatives
2. transparency about the position of an entity
resp. its contribution to the organisation’s
success
3. communication of changing framework
conditions in an entity
Project funded by the European Community under the ‘Competitive and Sustainable Growth’ Programme (1998-2002)
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Roadmap for e-business implementation in Extended Enterprises
Module 1 purpose and objectives
Field of application
•
•
•
•
•
strategic enterprise positioning
strategic enterprise planning
development of corporate enterprise identity
business model specification
enterprise presentation and business purpose
communication
Project funded by the European Community under the ‘Competitive and Sustainable Growth’ Programme (1998-2002)
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Roadmap for e-business implementation in Extended Enterprises
Module 1 structure
Definition of strategic
business objectives
Enterprise
business
vision definition
Enterprise
business
mission definition
Enterprise
business
objective definition
Project funded by the European Community under the ‘Competitive and Sustainable Growth’ Programme (1998-2002)
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Roadmap for e-business implementation in Extended Enterprises
Relationships to other methodology modules
Module 2: Organisation Analysis
• Detailed analysis about the EE
organisation from structural,
competence and ability points of
view
Module 4: e-business strategy
formulation
• Strategy development and
assessment
• Roadmap definition
Module 3: Market Analysis
• Detailed analysis about markets
segments, position, competitors
and customers
Project funded by the European Community under the ‘Competitive and Sustainable Growth’ Programme (1998-2002)
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Roadmap for e-business implementation in Extended Enterprises
Agenda: Training on Methodology Module 1
Step 1: Introduction
– Purpose and objectives, structure, positioning
– Practical application environment
Step 2: Methodological approach
Step 3: Tool-kit support
Project funded by the European Community under the ‘Competitive and Sustainable Growth’ Programme (1998-2002)
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Roadmap for e-business implementation in Extended Enterprises
Module 1 practical application environment
Organisation
• Intra- or inter-enterprise workshops or online session
• Definition of key personnel participants (max. 20
participants) from different entities
Demands on participants
• Knowledge about enterprise, direct enterprise environment,
market, and general business environment
Time need
• Central workshop approach: 1-2 workshops
• Decentralised web-based online sessions: predefined
period of time
Project funded by the European Community under the ‘Competitive and Sustainable Growth’ Programme (1998-2002)
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Roadmap for e-business implementation in Extended Enterprises
Module 1 practical application environment
Preparation of
coordinator/moderator
Workshop
• In-advance information and invitation of participants
• Presentation material
• Moderation methods and instruments (e.g. Flipchart,
Overhead, Beamer, Meta-Plan)
• Documentation and minutes
Web-based online sessions
• Platform configuration and preparation
• In-advance information (purpose, objectives, benefits,
participants, organisation)
• Invitation (access information, time schedule)
• Reporting
Project funded by the European Community under the ‘Competitive and Sustainable Growth’ Programme (1998-2002)
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Roadmap for e-business implementation in Extended Enterprises
Agenda: Training on Methodology Module 1
Step 1: Introduction
– Purpose and objectives, structure, positioning
– Practical application environment
Step 2: Methodological approach
Step 3: Tool-kit support
Project funded by the European Community under the ‘Competitive and Sustainable Growth’ Programme (1998-2002)
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Roadmap for e-business implementation in Extended Enterprises
Module 1 overview
Definition of strategic
business objectives
Enterprise
business
vision definition
Enterprise
business
mission definition
Enterprise
business
objective definition
Project funded by the European Community under the ‘Competitive and Sustainable Growth’ Programme (1998-2002)
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Roadmap for e-business implementation in Extended Enterprises
Enterprise business vision/mission definition
Fundamentals
• enduring statement that distinguishes one enterprise
from other similar enterprises
• important to
• insure unanimity of purpose,
• arouse positive feelings about the enterprises,
• provide direction,
• provide a basis for objectives and strategies,
• serve as a focal point,
• create consensus on specific strategies and
objectives,
• resolve divergent views among managers
Project funded by the European Community under the ‘Competitive and Sustainable Growth’ Programme (1998-2002)
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Roadmap for e-business implementation in Extended Enterprises
Enterprise business vision definition
Writing the business vision for the enterprise
Visualisation, discussion and assessment
of individual business visions
Decision about vision statement of the enterprise
Formulation and publication of business vision
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Roadmap for e-business implementation in Extended Enterprises
Enterprise business vision definition
Purpose
"What does the enterprise want to become?"
• first step in strategic business planning
• clear vision provides the foundation for development
of a comprehensive mission statement
• direction of all business actions toward this vision
Content
• enterprise's sense of future direction
• dream for an ideal state
• concise declaration of the direction that an enterprise
is planning to take into the future
Project funded by the European Community under the ‘Competitive and Sustainable Growth’ Programme (1998-2002)
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Roadmap for e-business implementation in Extended Enterprises
Enterprise business vision definition
Design guidelines
•
•
•
•
•
short
preferably
meaningful
one sentence
Instigation and inspiration for action and achievement
among employees
• Integration of motivation
• Integration of changing aspects or motivation
Project funded by the European Community under the ‘Competitive and Sustainable Growth’ Programme (1998-2002)
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Roadmap for e-business implementation in Extended Enterprises
Enterprise business mission definition
Writing the business vision for the enterprise
Visualisation, discussion and assessment
of individual business mission
Decision about mission statement of the enterprise
Formulation and publication of business mission
Project funded by the European Community under the ‘Competitive and Sustainable Growth’ Programme (1998-2002)
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Roadmap for e-business implementation in Extended Enterprises
Enterprise business mission definition
Purpose
• Enterprise definition in a concise and clear manner
• Provision of vivid picture of what is unique about the
enterprise to the reader
• Alignment of every program and activity in the
enterprise to the mission
Design guidelines
• less than 200 words
• longer than a phrase or sentence, but not a two page
document
• not be too specific (can alienate managers and stifle
creativity)
• Inspiring
• enduring though not cast in stone
Project funded by the European Community under the ‘Competitive and Sustainable Growth’ Programme (1998-2002)
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Roadmap for e-business implementation in Extended Enterprises
Enterprise business mission definition
Content
•
•
•
•
•
•
•
•
•
Customers and target markets
Products/Services for customers
Geographic markets
Technology
Concern for Survival/Growth/Profits
Philosophy (values, ethics, beliefs)
Public Image
Employees
Distinctive competence and Unique Selling Position
(USP)
Project funded by the European Community under the ‘Competitive and Sustainable Growth’ Programme (1998-2002)
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Roadmap for e-business implementation in Extended Enterprises
Enterprise business objective definition
Information of participants
Definition and collection of business problems
and objectives by means of creativity methods
Clustering of business objectives
Presentation and completion of clustered
business objectives
Systems Thinking of business objectives
Priority definition and presentation of business
objectives
Project funded by the European Community under the ‘Competitive and Sustainable Growth’ Programme (1998-2002)
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Roadmap for e-business implementation in Extended Enterprises
Need for business objectives
Different objectives ...
Common objectives ...
... result in different priorities
for actions
... align all entities to the same
business objectives
No wind is good for someone who does not
know where he wants to sail to.
(Montaigne)
Project funded by the European Community under the ‘Competitive and Sustainable Growth’ Programme (1998-2002)
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Roadmap for e-business implementation in Extended Enterprises
Information of participants
Information
by Moderator
overall aim, purpose and approach
by management
enterprise vision, mission, guidelines
Participants
Enterprise(s)
management, head of departments, works council,
employees
Moderator
Discussion leader and assistants
Project funded by the European Community under the ‘Competitive and Sustainable Growth’ Programme (1998-2002)
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Roadmap for e-business implementation in Extended Enterprises
Fundamentals
Sicherung der Arbeitsplätze durch
Umsatzsteigerung von 10% pro Jahr
Business
strategy
Serves the purpose of definition of high-level
business objectives and of general framework for
long term enterprise development.
Tactics
are mid term specifications of the business strategy
in the sense of selection and assessment of
relevant business activities
Functional
activities
Are for short term realisation of business strategy in
practice by means of business activities defined by
tactics
Gewinnsteigerungneue Produkte und
von 6 auf 10%
Leistungen in alten
Märkten
Flexibilität
ZeitInnovationsfähigkeit
Ökonomie
Ökologie
Qualität
Qualität
SOL
L
IST
Zeit
- 100% Qualität
Source: Kreikebaum 1989; Pfeiffer/Randolph 1981; Steinmann/Schreyögg 1990;
Zäpfel 1989; -> Planungssysteme
Project funded by the European Community under the ‘Competitive and Sustainable Growth’ Programme (1998-2002)
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Roadmap for e-business implementation in Extended Enterprises
Business objective definition process
Strategic
objectives
Vision

Mission

Tactic
objectives
Functional
objectives
Sicherung der Arbeitsplätze durch
Umsatzsteigerung von 10% pro Jahr
Gewinnsteigerungneue Produkte und
von 6 auf 10%Leistungen in alten
Märkten
Flexibilität
ZeitInnovationsfähigkeit
Ökonomie
Qualität
Strategy formulation
Business structure
design
Zeit
- 100% Qualität
Qualität
Ökologie
Project funded by the European Community under the ‘Competitive and Sustainable Growth’ Programme (1998-2002)
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Roadmap for e-business implementation in Extended Enterprises
Definition of business objectives
Shorter
delivery
times
Higher
productivity
Better
coordination
Better
delivery
quality
Closer
customer
relationships
Staff
training
Less process
interfaces
Work time
concepts
Suitable creativity methods
• Open discussion
• Brainstorming
• Feedback method
• …
Instruments and tools
• Flipchart
• Pin wall
• Empty sheet of paper
• …
WEB
Tools
• Web-based discussion and
communication platform
Project funded by the European Community under the ‘Competitive and Sustainable Growth’ Programme (1998-2002)
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Roadmap for e-business implementation in Extended Enterprises
Clustering of business objectives
e.g. Balanced Scorecard (BSC) concept
e.g. Main business objectives
Time/Costs/Quality/Flexibility/Ecology/…
internal
external
Product
Information
Reklamationsquote
Qualität der
Unterlagen
Anforderungsgerechtes Produkt
Übersichtliche
Kataloge
...
...
Service
Marketing
Ständige
Ansprechbarkeit
Kundenservice
Verbindliche
Zusagen
...
...
Liefertreue
Kundengerechte
Verpackung
Reklamationsbearbeitung
Reaktion auf
Kundennachfragen
...
...
...
Source: Kaplan, R. S.; Norton, D. P.: Balanced Scorecard, 1997
Project funded by the European Community under the ‘Competitive and Sustainable Growth’ Programme (1998-2002)
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Roadmap for e-business implementation in Extended Enterprises
Cause effect analysis of business objectives
e.g. System Thinking and System Dynamics
Definition of interactions
and dependencies of
business objectives and
identification of system
impact and control variables
Impact
reactive
Elements don‘t have to
be observed, represent
only impacts but no
cause
uncritical
These elements have
to be observed
marginally, elements
only have weak
influence
critical
The right appraisement
of efforts for the
observation of elements
is fundamental here
active
Observation of elements
in any case
Early indicators
Influence
Project funded by the European Community under the ‘Competitive and Sustainable Growth’ Programme (1998-2002)
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Roadmap for e-business implementation in Extended Enterprises
Costs
Innovation
Flexibility
Ecology
Quality
Total assessment
Priority definition by means of one-by-one comparison
2
1
0
2
2
7
0
0
2
2
4
0
2
2
7
2
2
10
1
1
… than
...
...
0 less important
1 Same importance
2 More important
Time
Time
Time
Costs
...
...
Quality
...
...
Costs
0
Innovation
1
2
Flexibility
2
2
2
Ecology
0
0
0
0
Quality
0
0
0
0
1
1
Objective clusters are prioritised by
means of one-by-one comparison
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Roadmap for e-business implementation in Extended Enterprises
Presentation of business objectives by means of pyramid of
objectives
Saving jobs by annual turnover increase of 10%
Starting point for strategic
organisation and market
analysis
Profit increase from New products and
von 6 auf 10%
services in existing
Fleximarkets
bility
Time Innovation
Costs
Guidelines for process and
organisation design
Quality
Ecology
Project funded by the European Community under the ‘Competitive and Sustainable Growth’ Programme (1998-2002)
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Roadmap for e-business implementation in Extended Enterprises
Agenda: Training on Methodology Module 1
Step 1: Introduction
– Purpose and objectives, structure, positioning
– Practical application environment
Step 2: Methodological approach
Step 3: Tool-kit support
Project funded by the European Community under the ‘Competitive and Sustainable Growth’ Programme (1998-2002)
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Roadmap for e-business implementation in Extended Enterprises
OrganisationAnalyser
General features
• features the resource based strategic business situation analysis in an
EE regarding mainly qualitative aspects of an organisation
• based on an interview approach
• provides a set of basic, interview and questionnaire templates
• open for individual configuration
• runs as a web application on Windows 95/98/2000/NT/XP systems
• The OM tool features identification of EE partners goal system (mission,
vision, goals), competences and e-abilities as basis for strength
and weakness analysis
The OM software tool is:
Analysis of EE partners system of
business objectives (mission,
vision, objectives)
• Interactive: The user is provided with appropriate questionnaires for
data and information input, inputs are recorded, information is
assimilated, analyses are performed, and results are displayed for the
user
• Participative: The tool provides a network environment for collaboration
between different users. Users complete the process and all of their
responses are combined and analysed as a group to accurately account
for all individuals and to effectively represent the collective knowledge of
all participants
• Configurable: The tool provides functionalities for customisation or
development of user specific analyses
Project funded by the European Community under the ‘Competitive and Sustainable Growth’ Programme (1998-2002)
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Roadmap for e-business implementation in Extended Enterprises
OrganisationAnalyser
General Features
 Data acquisition and analysis software for inquires
 Web-based for decentralize, time independent processing
 Online (Internet and Intranet) and offline (local) applicable
 Project oriented user management
 Inquiry management
 numeral inquire methods
 Free configurable inquire possibilities
 Free scaling (number of users and inquires)
 Analysis- and documentation function
e-volution Features
 Analysis instrument for specific EE levels
 Strategic level (goal system)
 Socio-informal level (competencies and skills)
 Information level (competencies and IT-infrastructure)
Project funded by the European Community under the ‘Competitive and Sustainable Growth’ Programme (1998-2002)
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Roadmap for e-business implementation in Extended Enterprises
Administration
User roles and rights
• Administrator: user management
• Interview manager: interview management (design,
invitation, processing, analysis)
• User: registration, interview processing
Project funded by the European Community under the ‘Competitive and Sustainable Growth’ Programme (1998-2002)
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Roadmap for e-business implementation in Extended Enterprises
Interview processing
• Structure: Interview\questionnaire\question
• By going step by step the user will be introduced to
the structure
• Fixed structure, designed by interview manager
• There can be numerous questions to different
topics
• Each question has its own evaluation
• No need to do answer questions at, multi-session
option
Project funded by the European Community under the ‘Competitive and Sustainable Growth’ Programme (1998-2002)
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Roadmap for e-business implementation in Extended Enterprises
Interview analysis
• Analysis by Interview manager
• Standard analysis and report options: diagrams, lists
• Export function to MS-Excel
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Roadmap for e-business implementation in Extended Enterprises
Agenda: Training on Methodology Module 2
Step 1: Introduction
– Purpose and objectives, structure, positioning
– Practical application environment
Step 2: Methodological approach
Step 3: Tool-kit support
Project funded by the European Community under the ‘Competitive and Sustainable Growth’ Programme (1998-2002)
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Roadmap for e-business implementation in Extended Enterprises
Module 2 purpose and objectives
Module purpose
•
identification and analysis of organisational aspects which have
affects on the development of an e-business strategy and how they
affect the decision making process
• Methodological approach and supporting software tool for resource
based EE analysis
• Identification of e-business use, practices and potentials based on
organizational ‘hard’ and ‘soft’ facts
• Identification of organization related strengths and weaknesses as
basis for e-business strategy development within the scope of EE
concept realisation
 Provision of:
1. decision support regarding solution alternatives
2. transparency about the position of an entity resp. its
contribution to the organisation’s success
3. communication of changing framework conditions in an
entity
Project funded by the European Community under the ‘Competitive and Sustainable Growth’ Programme (1998-2002)
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Roadmap for e-business implementation in Extended Enterprises
Module 2 purpose and objectives
Field of application
• Business objective system definition
• analysis of organisational, technological and human
e-competences
• strategic forecasting and early warning analysis
• core competence analysis, the life-blood of the EE, as
basis for realisation of extended, more competitive
products and services
• collaborative and transparent EE benefit definition
Project funded by the European Community under the ‘Competitive and Sustainable Growth’ Programme (1998-2002)
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Roadmap for e-business implementation in Extended Enterprises
Module 2 structure
Start
Organisational
module
e-business
ability analysis
EE benefit
analysis
e-business
ability analysed
EE benefit
analysed
Core
competence
analysis
Core
competence
analysed
Need for SEWS
Analysis
identified
Strategic Early
Warning System
analysis
SEWS
analysed
Market analysis
Project funded by the European Community under the ‘Competitive and Sustainable Growth’ Programme (1998-2002)
Strength-Weakne
ss definition
Strengths-Weakn
esses defined
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Roadmap for e-business implementation in Extended Enterprises
Relationships to other methodology modules
Module 4: e-business strategy
formulation
• Organizational analysis is basis
for identification of interfaces for
the roadmap definition
Module 1: Business Objectives
Analysis
• Create common understanding of
EE business objectives
• Basis for targeted e-business
strategy formulation
Module 3: Market Analysis
• Detailed analysis about markets
segments, position, competitors
and customers
Project funded by the European Community under the ‘Competitive and Sustainable Growth’ Programme (1998-2002)
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Roadmap for e-business implementation in Extended Enterprises
Agenda: Training on Methodology Module 2
Step 1: Introduction
– Purpose and objectives, structure, positioning
– Practical application environment
Step 2: Methodological approach
Step 3: Tool-kit support
Project funded by the European Community under the ‘Competitive and Sustainable Growth’ Programme (1998-2002)
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Roadmap for e-business implementation in Extended Enterprises
Module 2 practical application environment
Organisation
• Intra- or inter-enterprise workshops or online session
• Definition of key personnel participants (max. 20
participants) from different departments
• No need for different EE-partners at one point of time
Demands on participants
• Knowledge about enterprise, certain departments, financial
situation, strategic background and purpose, e-business
situation for the whole enterprise and strategic objectives,
as well as about direct enterprise environment
Time need
• Central workshop approach: 2-3 workshops
• Followed by decentralised web-based online sessions:
predefined period of time
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Roadmap for e-business implementation in Extended Enterprises
Module 2 practical application environment
Preparation of
coordinator/moderator
Workshop
• In-advance information and invitation of participants
• Presentation material to prepare online session
• Moderation methods and instruments (e.g. Flipchart,
Overhead, Beamer, Meta-Plan)
• Documentation and minutes
Web-based online sessions
• Platform configuration and preparation
• In-advance information (purpose, objectives, benefits,
participants, organisation)
• In-advance need for information collection from the
participants side – scripts handed over at workshop
• Invitation (access information, time schedule)
• Reporting
Project funded by the European Community under the ‘Competitive and Sustainable Growth’ Programme (1998-2002)
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Roadmap for e-business implementation in Extended Enterprises
Agenda: Training on Methodology Module 2
Step 1: Introduction
– Purpose and objectives, structure, positioning
– Practical application environment
Step 2: Methodological approach
Step 3: Tool-kit support
Project funded by the European Community under the ‘Competitive and Sustainable Growth’ Programme (1998-2002)
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Roadmap for e-business implementation in Extended Enterprises
Module 2 structure
Start
Organisational
module
e-business
ability analysis
EE benefit
analysis
e-business
ability analysed
EE benefit
analysed
Core
competence
analysis
Core
competence
analysed
Need for SEWS
Analysis
identified
Strategic Early
Warning System
analysis
SEWS
analysed
Market analysis
Project funded by the European Community under the ‘Competitive and Sustainable Growth’ Programme (1998-2002)
Strength-Weakne
ss definition
Strengths-Weakn
esses defined
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Roadmap for e-business implementation in Extended Enterprises
Input data from Module 1
Business vision definition
• enduring statement that distinguishes one enterprise from
other similar enterprises
• enterprise's sense of future direction
Business mission
definition
• Enterprise definition in a concise and clear manner
Business objectives
definition
•
•
•
•
Basis for strategy development
Definition of all objectives
Clustering of objectives
Prioritising of goals (e.g. with BSC)
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Roadmap for e-business implementation in Extended Enterprises
EE benefit analysis
Objectives
 Definition of expected performance potentials of EE
members
 Possible benefit potentials are complex
 can be divided into four main categories: resources, risks,
costs, and results
 Independent assignment
Results
 Overview of benefits for all independent and interdependent
enterprises
 Results should be used for the OM analysis
 Results should be pointed out and used in the ongoing
analysis
Project funded by the European Community under the ‘Competitive and Sustainable Growth’ Programme (1998-2002)
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Roadmap for e-business implementation in Extended Enterprises
EE benefit analysis
RESOURCE benefit
 balancing of partners’ resource deficits
 Development of resource compound effect (synergy),
addition and/or supplementation
RISK benefit
 error adjustment due to the availability of increased partner’s
know-how within areas such as development, production or
marketing.
COST benefit
 Cost digression can be reached because of size advantages
with the help of determined merging activities and a resulting
better use of technical and human resources
RESULT benefit
 broader utilization spectrum of single performances and/or
products by the combination of the product and service
spectrum, which are brought by the partner into co-operation,
to complete performance, which makes the development of
the extended and quantitatively attractive field of application
possible
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Roadmap for e-business implementation in Extended Enterprises
E-business ability analysis
Objectives
Start
ICT
Infrastructure
requirement
analysis
ICT
Infrastructure
requirement
analysed
Machinery
infrastructure
requirement
analysis
Machinery
infrastructure
requirement
analysed
Human capability
requirement
analysis
Human capability
requirement
analysed
 Identification used e-applications in each organization regarding the
processes
 Identification of processes where e-applications are used most
 Evaluation of product employee competencies regarding the eapplications
 Additional questions regarding the awareness and the importance
of e-abilities in the screened organization
Results
 Overview about existing bought or self-made e-applications, there
importance to the enterprise and the importance given to eapplications and e-abilities at all
 Information should be used for the following:
 Interface design between EE partners (compatibility analysis)
 Intra- und inter-enterprise strengths and weaknesses analysis regarding
e-abilities and e-business strategy development
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Roadmap for e-business implementation in Extended Enterprises
E-business ability analysis
Identification of currently already IT-supported business
operations
identification of used applications
specification of e-business application type
assessment average user qualification
regarding e-business application type
analysis of additional issues
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Strategic Early Warning System Analysis
Locating
the position
harbour
ICEBERG
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Sequence of methods - FInd, FIlter, FOrmat, FOcus
approx.100 trends
FIND
FILTER
Trends
relevant
max. 20
FORMAT
FOCUS
• find all trends linked to a enterprise‘s future. What are the trends in society, business, economy and
technology with relevance to our enterprise? Methods used to help this process are Brainstorming and writing or so called ‘trend-workshops‘.
• filter all strategic issues. The result of the first step are sometimes between 70 to 100 trends. There is no
way to handle this amount of information, the number has to be reduced.
• format all strategic issues. This includes an analysis and search for drivers of the situation, the
identification of links between the drivers, the reconfiguration of links and the definition of easy scenarios.
• focus on practical actions: When does a enterprise has to react immediately on strategic issues and how
can it monitor future developments with indicators? Monitoring allows a continuous focusing on important
aspects.
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Trend Finding
Kick-off
• Define aims
• Know-how
required
• Define
participants
• Check for
external experts
• Design workshop
1. Trend brainstorming
• Invitation
• Search for
experts
• internal/external
investigation
• Market and
customer
analysis
• Moderation
• Initial Lecture
• Global Trends
• Clustering and
consolidation
• if needed further
internal/ external
investigation or
market and
customer analysis
2. Trend brainstorming
• Presentation of
results
• Discussion,
moderation
• conclusion
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The trend 3 Layer-model
3 Layer-model
economy
population
new generation
of managers
technology
global environment
enterprise specific
environment
European
integration
ecology
politics
Tele work
Home Office
enterprise
culture
law
household
R&D
distributors
region
corecompetencies
products/solutions
enterprise structure
branch
region
customers
suppliers
competitors
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Filter with the 3 Layer-Model
Workshop „Construction 3
Layer-Model“
• Sort Trends
• if needed: Analysis of the
characteristics, core competencies
or strength and weaknesses
• if needed: Presentation of global
trends
• Moderation, discussion
Workshop „3 Layer-Model“
• Complete Model with
global trends
• Construction of the 3
Layer-Model
• Work with the Model
• Identification of strategic
options based on trends and
competences
• Discussion, clustering and
consolidation of the strategic
options
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Format by Sytem Thinking/Dynamics approach
„Network-Workshop“
Format-Workshop
• Identification of trends linked
to the strategic option
• Computer based modeling
• Analysis of the network
• Defining the strength and the
correlation of impact
• Presentation of the network
and analysis results
• if needed: online simulation
• Building the network
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Example: Formatting of a strategic option for action
Question on networking:
Which trends affect the
strategic option for action XY?
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Focussing: Analysis of the network
Impact
Aim of analysis: Which trends
have a huge impact in the
network?
Result: Identification of the
active influencing factors
reactive
Elements don‘t have to be
observed, represent only
impacts but no cause
uncritical
These elements have
to be observed marginally,
elements only have weak
influence
critical
The right appraisement of
efforts for the observation of
elements is fundamental here
active
Observation of elements
in any case
Early indicators
Exertion of influence
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Focussing: Analysis of the network
example: producer of
office furniture
Observation of the indicator:
„How important is the trend?“
6
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Results and benefits
Results
Benefit
– Presentation of the enterprise
with trends and strengths or
weaknesses
– Reduction of efforts for observation and
improvement of ability for early detection
at the same time
– Evaluation of trends
– Visualisation and thus clarification of the
developments
– Deduction of strategic problems
and Identification of options for
action
– Identification of Indicators
– Gain of knowledge about trends
– Stimulation of creativity in order to use
opportunities of external developments
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E-business core competency analysis
Start
Competence
identification
Competences
identified
Definition of
basic
competences
Basic
competences
defined
Definition of core
competences
Core
competences
defined
Objectives
 Selection of basic competencies from set of competences by means of
assessment due to factors like
 Organization
 Technique
 Human Resource
 Analysis of balanced, critical, over valuated and basic competencies
from set of competencies
Results
 Overview of core competencies of each EE partner, the trends, the
competitive relevance and the degree of mastery
 Information should be used further regarding the following concerns:
Strategic Early
Warning System
use
SEWS
used
 Evaluation and visualization of companies situation
 Determining core competencies as a starting point for new products and new
target markets
 Determine core competencies as a starting point for resource development in
the enterprise
Definition of core
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Community under the ‘Competitive and Sustainable Growth’ Programme (1998-2002)
competence
development
strategy
Core
competence
development
strategy defined
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Core competence analysis
1. Identification of organisations abilities along the value
chain
 E-ability analysis is input
 Separation due to human, technological and
organizational aspects
2. Identification of organisation's product and service
abilities
 Identification and evaluation due to the uniqueness/
USP of the product/ service
3. Summary
 Information should be aggregated for the next step
 Done by an external person who is more objective
 Filter main aspects and double counts
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Core competence analysis
4. Identification of competences from abilities
 Each ability is assessed due to the question to figure
the competencies out
 Each ability needs to be assessed due to the three
next points:
 Potential door opener to a variety of markets
 Significant contributor to customer benefit
 Difficult to imitate by competitor
 Done on a scale from 1-5 (1 means not correct, 5
correct)
5. Summary
 Abilities should get a value between 3 and 15
 Threshold value of 10 → all abilities scoring 10 or
higher should be included in the further analysis
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Core competence analysis
2 21
3
4
5
14
6
1
17
high
18
10
22
13
24
28
15
25
19
basiscompetences
7
low
26
very low
competetive relevance
very high
12
critical
competences
8
20
11
27
16
23
balanced
competences
very low
9
6. Competence assessment
 The competencies that have been identified during the
previous steps are assessed and evaluated concerning
two evaluation criteria: competitive relevance and
degree of mastery by the organisation
 Depending on the answers given by the users, the
strengths or competences may be labelled core
competences or not
Over valued
competences
low
high
very high
degree of mastery
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Core competence analysis
2 21
3
4
5
14
6
1
17
high
18
10
22
13
24
28
15
25
19
basiscompetences
7
low
26
very low
competetive relevance
very high
12
critical
competences
8
20
11
27
16
23
balanced
competences
very low
9
Over valued
competences
low
high
degree of mastery
very high
7. Core competence definition
 Depending on where (in which quadrant) the
competence is positioned, different types of
competences can be identified.
 balanced competences (these are positioned along
a diagonal axis, where the degree of mastery
equals the relevance of the competence)
 overrated competences (where the degree of
mastery is much higher than the relevance)
 critical competences (where the degree of mastery
is not as high as the relevance)
 basic competences (where the degree of mastery
and the relevance or both very high)
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Core competence analysis
8. Strategic forecasting
 need for strategic core competences derives from the comparison of
current competences with future requirements
 Early recognition in strategic management as systematic process for
getting and processing information
 used for early data collection of environmental changes, which threat or
support current and future potentials
 aims at the guarantee of sufficient reaction time for developing or
implementing adapted strategies
 Method: Find Filter Format Focus (FiFiFoFo) analysis
9. Definition of core competency development strategy
 Depending on the position in the evaluation graph, different actions
should be taken for different outcomes
 competences are ideally positioned in the diagonal sector of the
balanced competences → may be very important to increase the level of
mastery for critical competences, while for overrated competences no
efforts should be taken and investments should be cut
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Focus on the indicators of active trends
Indicator-Workshop
• Computer based
network analysis
• Set up of matrix
• if needed: Further
investigation
• Analysis of elements
behind the active trends
• Building a Mind maps
• Discussion, moderation
• Search for leading
indicators for the
observation of the active
trends
• Definition of appropriate
measurement units
• Development of a
indicator report system
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or integration in BSC
Presentation
• Presentation of the
defined indicators
• Definition of the
research sources
• Definition of
responsibilities
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Strength and weakness definition
TOWS-Analysis
Module 2
Results of enterprise
internal, resource based
analyses
Results of enterprise external,
market based analyses
(Module 3)
Use of chances by
strengths
Strengths
Strengths
Opportunities
Weaknesses
Weaknesses
Reduce weaknesses
or change into strengths
Threats
Minimise or avoid
threats
Strategies to improve current
situation
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Agenda: Training on Methodology Module 2
Step 1: Introduction
– Purpose and objectives, structure, positioning
– Practical application environment
Step 2: Methodological approach
Step 3: Tool-kit support
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OrganisationAnalyser
General Features
 Data acquisition and analysis software for inquires
 Web-based for decentralize, time independent processing
 Online (Internet and Intranet) and offline (local) applicable
 Project oriented user management
 Inquiry management
 numeral inquire methods
 Free configurable inquire possibilities
 Free scaling (number of users and inquires)
 Analysis- and documentation function
e-volution Features
 Analysis instrument for specific EE levels
 Strategic level (goal system)
 Socio-informal level (competencies and skills)
 Information level (competencies and IT-infrastructure)
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Example: e-business ability analysis in the OrganisationAnalyser
Objective
 Partner spanning analysis of the value chain from
the IT-resource point of view
 Organization
 Human
 Information technique
 Evaluation of the current situation and projection on
the reference side
Results
 Mapping of EE-partner abilities and Gap-Analysis
 Identification of interfaces
 Strengths- and Weakness Analysis
 Goal and provision formulation
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Agenda: Training on Methodology Module 3
Step 1: Introduction
– Purpose and objectives, structure, positioning
– Practical application environment
Step 2: Methodological approach
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Module 3 purpose and objectives
Module purpose
• Identification of customer requirements regarding products
and services that could have an impact on the e-business
strategy
• General product, market, customer and competitor analysis
as basis for realisation of competitive business model and
realisation of results benefits from the EE by use of
collaborative e-business model
• e-business related opportunity and threat analysis on
enterprise and EE level by comparison with competitors as
basis for e-business strategy development
• enabling a collaborative philosophy (if EE partners withhold
critical market data those farther away from the end user
customer cannot make intelligent decisions)
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Module 3 purpose and objectives
Field of application
• Market and product assessment
• Market attractiveness
• Product attractiveness
• Consumer analysis
• Competitor analysis
• Target market search
• Opportunity and Threat analysis
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Module 3 structure
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Relationships to other methodology modules
Module 1: Business Objectives
Analysis
• Create common understanding of
enterprise and its objectives
• Basis for organizational analysis
Module 2: Organizational
analysis
• As the counterpart to the market
analysis here the internal
environment is reviewed
Module 4: e-business strategy
formulation
• The market analysis is the basis
for the SWOT/TOWS analysis
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Agenda: Training on Methodology Module 3
Step 1: Introduction
– Purpose and objectives, structure, positioning
– Practical application environment
Step 2: Methodological approach
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Module 3 practical application environment
Organisation
• Intra- or inter-enterprise workshops or online session
• Definition of key personnel participants (max. 10
participants) from sales and marketing departments
• No need for different EE-partners at one point of time
Demands on participants
• Knowledge about enterprise, certain departments, financial
situation, strategic background and purpose, e-business
situation for the whole company and future goals, as well as
about enterprise markets
Time need
• Central workshop approach
• Followed by decentralised web-based online sessions:
predefined period of time
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Module 3 practical application environment
Preparation of
coordinator/moderator
Workshop
• In-advance information and invitation of participants
• Presentation material to prepare online session
• Moderation methods and instruments (e.g. Flipchart, Overhead,
Beamer, Meta-Plan)
• Documentation and minutes
Web-based online sessions
• Platform configuration and preparation
• In-advance information (purpose, objectives, benefits, participants,
organisation)
• In-advance need for information collection from the participants
side – scripts handed over at workshop
• Invitation (access information, time schedule)
• Reporting
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Agenda: Training on Methodology Module 3
Step 1: Introduction
– Purpose and objectives, structure, positioning
– Practical application environment
Step 2: Methodological approach
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Module 3 structure
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Market segmentation
Objectives
 detailed specification and verification of the existing market
segment definitions
 realisation of a common working basis for the application of
the e-volution concept inside a company or EE
Results
 Definition of:
 product/market combinations
 customer groups
 and / or product groups
 The market segments are the basis for market segment
assessment
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Market segmentation approach
1. Customer description
2. Identification and definition of homogeneity
criteria
3. Development of homogeneous customer
groups and grouping of similar homogeneity
profiles
4. Combination of similar groups into economic
market segment
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Leading questions concerning market segmentation
1. Initial situation: What is the initial situation?
• Customer groups, product groups, distribution channels,
• distribution regions worksheet: initial situation
2. Product/client criteria: What is the difference concerning the
customer groups?
• Customer groups criteria, product groups criteria,
characteristics
• worksheets: Customer groups criteria, product groups criteria,
characteristics
3. Segmentation: Which homogenous customer groups does
the company have?
• Testing of product and customer group combination by criteria
and determination of homogenous combinations
4. Segmentation: Is it possible to process product-market
combinations economically?
• Testing and delimitation of product and group combinations to
turn over power and strategic importance.
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Detailed description of components
Description of initial situation
• main products / product groups and customer groups and their
importance/priority for turnover are defined
• Afterwards sales channels are distinguished between direct and indirect
sales (resellers, sales partners) and the relevant sales markets/regions are
identified
• Then, the connections between products / product groups and the market are
defined
• products / product groups are ranked and prioritised by its turnover
importance (e.g. A, B and C)
Differentiation of customer groups
and identification of homogeneous
customer groups
• Several criteria are used to differentiate customers and therefore identify
groups of customers with the same characteristics
• E.g. Purchased volume and trends, sales channel, e-solution description
• By using such criteria, customers with similar characteristics are identified
and therefore merged to form homogeneous customer groups
• Assignment to product/ market groups
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Market segmentation
1. Customer description - description of initial situation
Customers
Deutschland gesamt
EU
x
x
x
x
x
x
x
x
x
x
x
x
x
x
A Druckschreiber
B
Hackenzähleinrichtung
x
x x
x
C BdAT
x
x
x
x
x x
Systemintegration
x
x
Kooperationen
x
Direkt
Norddeutschland
A Kühlwächter
Ing.-Büros
Sequence
1. Products
2. Customers
3. Trade channel
4. Geographic regions
Händler
Products
Region
Kühlager
Pflanzenproduktion
Heizung/Sanitär
Rohrleitungsbau
Baugewerbe
Anlagenüberwachung,
-steuerung
Wasser-, Boden
verbände
...
Turnover priority
Criteria
Trade channel
x
...
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Market segmentation
2. Identification of homogeneity criteria
Relevant criteria and its characteristics for classification of customers into homogeneous
customer groups
Distinctive features of the customer groups
Criteria selection, resp.
completion
Key question:
Different customer
demands on products
regarding ...
Key question:
Different customer demands on marketing and
sales activities regarding …
x Product performance
Product use
Innovation
Design
Costs
...
...?
x
Turnover relevance
Region
Strategic relevance
Ecologic issues
Image
Demographic characteristics
Decision maker
cultural characteristics
Consulting needs
x After Sales Service
x Customer specifics
Quality needs (TQM)
x Ordering
advertisement
x Competition
Costs
Faith
x Acquisition
Delivery time / Flexibility
…
Logistic features
...
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Market segmentation
2. Identification of homogeneity criteria
Criteria selection according to its relevance according to segmentation objectives:
- Market development (advertisement, distribution, costs, products)
- Enterprise strategy (development of enterprise functions)
Criteria description and characteristics
Criteria
Characteristics
Product performance
+ high
o medium
- low
Decision maker
+ Technician
o Buyer
- Buying Centre
After Sales Service
+ yes
Ordering
+ periodically
o irregular
- one time
Customer specifics
+ high
o medium
- low
Acquisition
+ long-time
o medium-time - short-time
Competition
+ low
o medium
- no
- high
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Pflanzenproduktion
Heizung/Sanitär
o
+
-
o
Decision maker
+
-
+
+
+
Ordering
-
-
+
o
Customer specifics
-
-
o
Acquisition
-
-
o
Reason for combination
+
+
+
+
-
-
o
o
o
-
-
-
-
-
-
+
+
-
-
-
-
+
+
verbände
Wasser-, Boden
-
-steuerung
-
...
Kühllogistik
-
Baugewerbe
Medizin. Einricht.
Product performance
Rohrleitungsbau
Kühlager
Homogeneous customer groups
Anlagenüberwachung,
Market segmentation
3. Development of homogeneous customer groups and grouping of similar
homogeneity profiles - Differentiation by customer groups
Reason for division
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Guidelines for segment definition
Definition of market
segments
• Check-up and validation of identified product/market
combinations is done with reference to the criteria adopted
and the requirements of the market segments:
• identification and analysis of strategic issues for
product-market-combinations
• check-up if product/market combinations are
homogeneous internally and among each other
• analysis of timely stability of market segments
• analysis of turnover potentials of product/market
combinations for economic market development
• If these criteria are not fulfilled, customer groups with similar
or only slightly different characteristics of segmentation
criteria are integrated into the market segments until checkup criteria are fulfilled
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Market segmentation
4. Combination of similar groups into economic market segments
x
x
x
x
x
A Kühlwächter III
A Druckschreiber
B
Hackenzähleinrichtung
C BdAT
x
x
x
x
x
x
x
x
x
x
x
x
x x
x
EU
x
A Kühlwächter II
Deutschland gesamt
x
Systemintegration
x
x
Kooperationen
x
x
Direkt
x
Region
Norddeutschland
A Kühlwächter I
Ing.-Büros
Products
Händler
Criteria
Trade channel
Medizin
Kühlager
Kühllogistik
Pflanzenproduktion
Heizung/Sanitär
Rohrleitungsbau
Baugewerbe
Anlagenüberwachung,
-steuerung
Wasser-, Boden
verbände
...
Definition of single markets
for transparent performance
and activity monitoring and
controlling.
Customers
Turnover priority
Definition of homogeneous
customer groups in respect to
marketing and enterprise
specifics.
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
...
Market segments with different background colours.
 Analysis of strategic business units (SBU) in case of need for
more in depth information for product-market combinations
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Market segmentation
4. Check
Testing identified customer groups concerning
market segments demands
 Are there any questions concerning the identified customer
groups?
 Are the customer groups homogenous themselves and
inhomogeneous to each other?
 Are the differences time-stable?
 Are the sales potentials into the customer groups sufficient
for an economical market processing?
If need be unit customer groups with similar or
insignificant different characteristics in the homogeneity
criteria to market segments, which fulfil the test criteria.
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Customer purchase criteria analysis
Objectives
 A consumer's purchasing criteria are the criteria
(conscious or unconscious) on which the consumer bases
his decision to purchase a product or service and
supplier:
 Satisfying the consumer's purchasing criteria are
therefore crucial to the company's/EE’s revenues.
 Understand how the EE and its competitors satisfy the
consumers' purchasing criteria
Results
 The most important purchase criteria of the EE’s
customers
 The features of purchase criteria
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Customer purchase criteria analysis
Gather information about customers' purchasing criteria,
and about why the company/EE satisfies these
purchasing criteria
Document the results from the research
Assess how the three main competitors satisfy
customers purchasing criteria
Assess the company's/EE’s opportunities and
threats according to the investigation of
consumers' purchasing criteria
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Competitor analysis
Objectives
 describe the most important competitors and gain an
understanding of their strengths and weaknesses,
compared to your company (Often, this can be realised by
using information that already exists in the company/EE)
 Supplement is obtained by gathering information
externally e.g. by using the Internet, networks etc.
 gain a good understanding of the aspects of the competitors
that constitute an opportunity or a threat for the
company/EE (both in relation to "e" and relating to the
business in general)
Results
 Description of most important competitors
 Information for OT-analysis
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Competitor analysis
Description and assessment of the
most important competitors
Conclusion drawing based on the
description and the assessment of the
competitors - opportunities and threats
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Competitor analysis
Competitor's position in
the market and
competitive advantages
Assessment of competitor's
value creating activities –
S.W.
–P/M areas served by the
competitor
– Competitor's market
position and market share
Description of competitors’
current e-solution
– Information (one way)
– Communication (two way)
– Trade/e-Commerce
– Business Integration
Intermediate OT
Analysis
– Based on the description and
the assessment of main
competitors
–
describe
intermediate OT elements
Prim
aryactivities
Procurem
ent
Strengths
Production
Effectiveon
purchase, large
quantitiesand Verynewthe
hencelow
equipm
ent
prices.
used.
M
arketing/
sales
Excellent at
branding
Som
e
distributorssay
Theproduction
that the
W
eaknesses
m
ewhat salesm
enareto
Project funded by the European Community under the ‘Competitive and Sustainable Growth’ Programme (1998-2002)isso
Uncertain
unstable.
pushing.
Assessm
ent of cost
efficiency
+
+
Distribution
Nonein
particular
Serviceand
support
Areknownas
quickand
friendly
Nonein
particular
0
+
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Competitor analysis
Description of competitors’ current e-solution for each value
creating activities
Thevalue-creatingactivities
Prim
aryactivities
Procurem
ent
Types of eBusiness
-Internet-solutions
Inform
ation
(onew
ay)
C
om
m
unication
(tw
ow
ays)
M
arketing/
sales
Production
Distribution
Serviceand
support
Present theproducts
ontheW
ebsite
D
istributorscanorder
theproductsthrough
theinternet.
Trade/eC
om
m
er
ce
B
usiness
integration
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Market attractiveness assessment
Objectives
 definition of both the competitive position and attractiveness
of each of the company’s or EE’s product/market
combinations for identification of strategic options for
actions as well as opportunities and threats of market
segments
Results
 visualisation of the previous, on basis of which a list of
priorities for development activities can be created, and
which can be also used as a tool for disseminating common
understanding of the qualities of different product/market
combinations within the company or EE
 A by-product is the identification of information gaps about
single market segments
 starting point for market research activities
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Market attractiveness assessment
1. Specify drivers of each dimension/ Identify the critical
internal and external drivers
2. Weight drivers (assign relative importance weights to
drivers)
3. Score SBU‘s each driver
4. Position SBU in Attractiveness-Strength Matrix and
interpretation
5. Specify opportunities and threats, strengths and
weaknesses (SWOT-analysis)
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Step 1a: Specify drivers of each dimension/ Identify the critical internal and
external drivers
Market attractiveness
Market size and growth, e.g.:
• market volume, consumer concentration, number of (potential)
customers, structure of (potential) customers
• Purchasing patterns, investment rate
Market quality, e.g.:
• Industry sector factors (efficiency of branch, profit margin, price
level, clearance for price politic, investment intensity, requirement
for service and distribution, position in the market life-cycle, threat
of substitutes,customer behaviour)
• Economic factors (economies of scale, capital demand, high
investments, currency costs and risks, starting loss, long-term
capital commitment, brand loyalty, quality of existing channels,
access to existing channels, environmental impact, promotion
alternative, transport, dependence on the public attitude,
infrastructure market entry barriers, communication network, power
supply, existence of alternative resources, interference in the
supply of power and resources)
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Step 1a: Specify drivers of each dimension/ Identify the critical internal and
external drivers
Market attractiveness
Market quality, e.g.:
• Technological factors (technological level and innovation potential,
possibility to protect knowledge, differences in fabric size,
differences in performances, different ports, difference in standard,
special needed know-how, know-how competitive edge of the
benchmark, general technological standard, production
technology)
• Political factors (political and legal market entry barriers, political
instability, legal system, legal security, labour law, dependence of
legislation, dependence of the public meaning, risk of state
intervention, tax-, trade- and competitor legal systems, particular
environmental determinations, import quota, import taxes and
custom duty)
• Sociological factors (religious special features, language, cultural
characteristics, social organizations)
• Competition factors (competitor structure, competitor intensity)
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Step 1b: Specify drivers of each dimension/ Identify the critical internal and
external drivers
Competitive strength
Relative market position, e.g.:
• Marketing potential (price advantage, quality advantage, service,
delivery time, technique, range of products, functionality, reliability,
design, customer service, environmental compatibility)
• Financial output (company growth, revenue, turnover development,
profit margin, operating margin, capital turnover)
• Position of the company (financial risk ,USP, cost-performance
ratio, customer loyalty, degree of establishment of the company,
size of financial power of the company, image advantage/
disadvantage, innovation standard, customer relationship)
• Market share and market share development (market share,
market share growth)
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Step 1b: Specify drivers of each dimension/ Identify the critical internal and
external drivers
Competitive strength
Relative enterprise potentials, e.g.:
• Marketing potential (distribution network, customer information,
customer loyalty, consultant know-how, distribution efficiency)
• R&D potential ( innovation potential, fundamental research,
innovation continuity, technical know-how, R&D capacities, patents)
• Production ( action flexibility of machinery, production conditions,
productivity, level of automation, capacities)
• Information (Controlling, reporting, customer data base)
• Logistics & Organisation (cost advantages, terms of a license,
supplier relations, customer service, advantage of location)
• Employee skills (professionalism, power of judgement, cadre,
quality of the management system, know-how, personal capacities,
motivation, culture)
• Finance (financial capacities, participations, investments, return on
investment, own capital, cash flow, savings)
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Step 2 and 3: weight and score drivers by means of value-benefit analysis
(option)
INDICATORS OF MARKET
ATTRACTIVENESS
EVALUATION OF MARKET ATTRACTIVENESS(B)
Low
0
1
Middle
2
3
4
5
WEIGHT
(G)
High
6
7
8
9
10
Market size
- ...
#
- ...
- ...
#
Δ
?
Δ
?
#
Δ
?
Market growth
- ...
#
- ...
Δ
?
#
- ...
#
- ...
#
?
- ...
#
?
#
- ...
- ...
- ...
?
?
#
Total
?
SBU2
SBU3
30%
(0,30)
(1,30)
(2,75)
5%
0,15
0,20
0,45
15%
0,15
0,60
1,50
10%
0,00
0,50
0,80
50%
(1,10)
(3,10)
(3,60)
10%
0,10
0,60
0,80
?
20%
0,40
1,40
1,20
Δ
?
5%
0,15
0,35
0,30
Δ
5%
0,15
0,25
0,40
10%
0,30
0,50
0,90
20%
(0,30)
(0,90)
(1,95)
Δ
2%
0,04
0,10
0,20
5%
0,10
0,25
0,45
Δ
10%
0,10
0,40
1,00
Δ
3%
0,00
0,15
0,30
100%
1,70
5,30
8,30
Δ
?
#
#
SBU1
Δ
Market quality
- ...
B*G
Δ
# - SBU 1
?– SBU 2
Δ – SBU 3
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Step 2 and 3: weight and score drivers by means of value-benefit analysis
(option)
COMPETITION FACTOR
EVALUATION OF
RELATIVE COMPETITION POSITION
WEIGTH
RELATIVE
(SBU 1)
Marketing potential
COMPETITIVE STRENGTH
?
Weak
middle
0
2
1
3
Δ
Production
Δ
Information
Δ
О
Logistics and organization
О
Δ
Employee skills
О
Market share
О
Position of company
О
4
5
Weak
-5
-4
-3
Middle
-2
-1
0
О
1
2
3
4
-0,15
•
5%
-0.10
•
10%
-0.20
5%
-0,05
10%
0,10
10%
0,30
20%
0,40
25%
1,00
10%
0,30
100%
1,50
•
Δ
•
•
Δ
Δ
Total
5
5%
•
Δ
COMPETITIVE
STRENGTH
Powerful
•
О
О
Finance
powerful
О
Δ
R&D potential
(G)
•
•
О – best competitor
Δ – SBU 1
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Step 4: Position Strategic Business Units (SBU) in Attractiveness-Strength
matrix
Option A
Market
size and
growth
Relative market
position
Threat
Unattra
ctive
Ideal
Neutral
Threat
Ideal
Unattra
ctive
Neutral
Market quality
Relative SBU
potential
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Step 4: Guidelines for Strategic Business Units (SBU) in Attractiveness-Strength
matrix
SBU
Market
Call for action/ Option
Option A
Threat
Unalluring
Threat
Control if development of SBU potentials are
justifiable through market attractiveness.
Unattractive
Further actions in this segment are not profitable.
Neutral
Verifying of SBU potentials. Operating expenses
checking. Detail analysis.
Ideal
Develop the SBU potentials. Checking of operating
expense. Prioritisation.
Threat
Prepare for strategic decisions. (Analysis, costs –
earnings, opportunities and threats)
Unattractive
Further actions in this segment are not profitable.
Neutral
Analysis of further development of market –
Opportunity or flop.
Ideal
Take actions for potential build-up and market
penetration.
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Step 4: Guidelines for Strategic Business Units (SBU) in Attractiveness-Strength
matrix
SBU
Market
Call for action/ Option
Option A
Develop
Ideal
Threat
Analysis of market development. Evaluation of cost
and earnings of market attractiveness.
Unattractive
Analysis of market development (prognosis). If
market development is constant than pull-out.
Neutral
Analysis. Verification of cost/ earnings to market
penetration.
Ideal
Take action for market penetration and market
development.
Threat
Take action to secure the market position.
Unattractive
No further investments. Pull-out.
Neutral
Take action for sales increase.
Ideal
No call for action.
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Step 4: Position Strategic Business Units (SBU) in Attractiveness-Strength
Creation of value
matrix
Option B
Investment- and
growth strategy
Selective strategy
Market attractiveness
high
Zone of
tying resources
Consumption
of resources
middle
Zone of
resource disposal
low
Absorption- or
Divestment strategy
Market size is represented by the size
of the circle. Market share is shown by
using the circle as a pie chart.
low
middle
high
Relative competition strengths
Method: McKinsey Portfolio Analysis
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Step 5: Specify opportunities and threats, strengths and weaknesses (SWOTStrengths
Weaknesses
analysis)
Market
size and
growth
Thre
at
Unattr
active
Relative market
position
Thre
at
Unattr
active
Ideal
Neutral
List of strengths
(1 .. n)
List of weaknesses
(1 .. n)
Opportunities
S/O strategies
W/O strategies
List of opportunities
(1 .. n)
Consolidation of
strengths to realise
opportunities
Overcoming of
weaknesses by
realisation of
opportunities
Threats
S/T strategies
W/T strategies
List of threats
(1 .. n)
Consolidation of
strengths to avoid
threats
Overcoming of
weaknesses and
avoidance of threats
Ideal
Neutr
al
Zone of
tying resources
middle
Zone of
resource disposal
high
low
low
Consumption
of resources
middle
high
Market attractiveness of SBU
Market attractiveness
Relative SBU
potential
Creation of value
low
middle
high
Relative competition strengths
Method: McKinsey Portfolio Analysis
Selective Procedure
•Search for niche
•Specialization
• more of a weakness
Harvesting
•Search for niche
•Specialisation
• more of a weakness
Harvesting
•Absolute weakness
•Get ride of it
low
Selective growth
• Potential for market
leadership
• identify weaknesses
• Build up strengths
Selective Procedure
•Specialization
•selective investments
Harvesting
•Minimize investments
• weakness
Investment and
growth
• Absolute strength
• Aim for market leadership
• invest
Selective growth
• high investments
• strengths
Selective Procedure
•Keep it the way it is
middle
high
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relative(1998-2002)
competition strength of SBU
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Target market search
Objectives
 Identification and evaluation of new products and services for the
single organisation or EE
 Identification of additional demands of present customers for
enlargement of product program
 Identification of new market opportunities by new products
 Evaluation of product ideas by means of market and company
relevant criteria
 Selection of promising product/market combinations for a
detailed analysis as preparatory work for new product
developments.
Results
 Definition of promising product/market combinations, customer
groups and / or product groups for which a more detailed market
analysis can be realised under the following questions:
 Get objective statements concerning market chances and risks
 Determine detailed customer requirements and preferences
 Determine detailed product requirements
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- Zielmarktsuche
Benefits of target market search
• Take over the roll of an “innovator" or of the “early follower"
within a branch.
• Expansion in new markets with new or modified products.
• Improvement of the utilisation of the existing production
capacities through new products.
• Rejuvenation of the product range by settlement of many
products in the last phases (saturation and regeneration)
des product life cycle.
• Search for market niches to avoid direct confrontation with
important competitors on existing markets.
• Systematic and traceable development of product ideas.
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Organisation of target market search
Organisation form
Time demand*
(benchmark)
• Enterprise intern workshops
• max. 10 participants
• Sales management, sales staff (intern + extern,
application engineering, R&D, production
• Idea generation: 1 day
• Idea assessment filter 1: 0,5 days (in addition maybe
research)
• Idea assessment filter 2: 0,5 days
* For the workshop (without preparation time)
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Organisation of target market search
Requirement for
participants
The participants must have knowledge about the
following:
• Information about product and customer groups of
the enterprise
• Knowledge about the buying behaviour of the
purchaser
(buying decision criteria, decision maker,...)
• Revenue distribution of the product and customer
groups
(rough calculation)
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Target market search
Generation of ideas
Identification of core competencies
Evaluation of ideas
Evaluation of ideas regarding market place
opportunities and risks
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Generation
of ideas
Starting point
Products and
services
1st pass
1
2
3
Identification
of search
fields
Search field
specification
(characteristics)
Idea
generation
Customer
groups
2nd pass
Trends in
industrial
sector
Core
competences
or
3rd pass
Products and services
of the enterprise
Customer groups of
the enterprise
Successful products
and services
Core competences of
the enterprise
Strengths of the
enterprise
Definition of enterprise
strengths
Identification of global
and branch trends in
general
Benefits, effects and
functions of products
and services for the
enterprise
Problems in the
product environment
Product environment at
the customer
Special abilities and
competences of the
enterprise
Competences needed
in the future
Identification of
relevant trends for the
enterprise
Identification of
potential target groups,
expected benefits and
application fields
Possible customer
solution based on
products and services
Customer needs
Product ideas
Definition of possible
service offers,
application fields, and
user benefits
Idea
data source
Ideenspeicher
(Idea
description)
(Ideenbeschreibung)
Definition of product
and service strategies
based on trends
Identification of needs
for additional
competences
Product ideas
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Modified products for new customers
Fix searching fields
- starting point -
Which products and services offers the enterprise?
Explain
searching fields
Which benefits, effects and functions offer the products and
services of the enterprise?
Which characteristics has the benefit?
Generate ideas
Who requires which benefits combination? Where could you
use them?
Memory ideas
(description)
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New products for existing customers
Starting point /
fix searching
fields
Which customer groups does the enterprise have? Which
products where successful?
explain
searching fields
Which problems result form the associated product field?
Which near system field surrounds the product at the
customer?
Generate ideas
Which solutions can you efficiently combine in connection with
the product? Which product demands of the customer are also
possible in this connection?
Memory ideas
(description)
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New products for new customers - enterprise abilities
Starting point /
fix searching
fields
Which key abilities does the enterprise have? Which enterprise
powers can you realize? With what was the enterprise
successful in the past?
explain
searching fields
Which specific abilities does the enterprise master? Which
further abilities seam to be interesting for the future?
Generate ideas
Which product and enterprise efforts can you generate out of
this? In which usage fields are advantages (with this abilities)
for the customers possible?
Memory ideas
(description)
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New products for new customers - trends
fix
searching fields
- starting point Explain
searching fields
Generate ideas
Which key abilities does the enterprise have? Which enterprise
powers can you realize?
Which global and branch near trends are there?
Which trends are relevant for the enterprise?
Which products could be successful because of the trends and
could be produced by the enterprise?
Which abilities do you need in addition?
Memory ideas
(description)
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Idea summary
Leading
questions:
Which characteristics can be combine efficiently?
Who could require this combination? Where are they used?
New customer/new products
X
features
requirements
X
X
X
X
demands
abilities
X
X
Synergies between criteria
characteristics prove new
products and/or new customers
X
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Approach of Idea assessment and selection
Assessment content
Pre filter
Filter level 1
Assessment of
the enterprise
potentials
Filter level 2
Assessment of
Market potential
Audit of ideas:
• Reality closeness
• manifestness
• Goal conformity
Qualitative assessment of
abilities and input for the
realisation of the product ideas in
major departments of
the enterprise.
Qualitative assessment of
opportunities and risks
of the goal market
Assessment technique
Positive assessment of ideas
is precondition for
a success promising
product (K.O. - criteria)
Weighted criteria to make
a differentiated assessment
of the enterprise
Potentials possible
( utility value analyse)
Positioning of correlating
Ideas as selection
support
After assessment
remaining ideas
> 20
about 7-10
max. 2-3
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Workshop 2: evaluation of ideas (enterprise abilities)
enterprise abilities
manufacturing-Know-how
manufacturing efforts
development-Know-how
development efforts
Resources (staff, finances)
F I L T E R 1
F I L T E R 2
Market situation
sales potential
competition situation
Detail analyse
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Example: filter level 1
Assessment of enterprise potentials
Goal: Ordering of
product ideas considering the
utility value Nj =  (Bi;j x Wi;j)
Weight Wi;j
Product
development
Product idea j
Ability
W1;j=5
Assessment B1;j,3;j
0... Not existing
1... Partly existing / upgradeable
3... existing

Product
Assessment B2;j,4;j Assessment B5;j
0... high
1... justifiable
3... low
0... low
1... middle
3... high
3
Manufacturing Effiutility
ciency value Nj
Ability
Input
W2;j= 3 W3;j= 5
3
3
Input
W4;j= 1
1
W5;j= 7
1
47
x
P1
3
3
3
3
1
49
x
P2
1
1
3
1
1
31
x
P3
3
1
3
1
3
55
x
P4
0
0
3
0
1
22
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Workshop 2: evaluation of ideas (market chances)
enterprise abilities
manufacturing-Know-how
manufacturing efforts
development-Know-how
development efforts
Resources (staff, finances)
Market situation
sales potential
competition situation
F I L T E R 1
F I L T E R 2
Detail analyse
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Estimation of success probability of product ideas
low
B) Translation of the position
of the product idea in the strength
diagram in success probabilities
for the product ideas
Competitor intensity
A) Positioning of
product ideas in the
strength diagram
x
Legend:
Success probability
high
x
high
low
low
high
Demand of the market
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Turnover und realizing time
Previously listed products
Short description of idea Turnover
category
Turnover category
A
B) How long will it take
under positive
circumstances until the
the product is salable?
B
C
D
E
Realizing time
frame
A) Which idea is
regarding the possible
turnover comparable
with the existing
product?
Or: Relative assessment
of ideas among themselves.
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Result presentation – discussion and assortment basis
E
Idea filtering through consideration of
- Realisation time [e.g. year quarter]
- Turnover expectation [category A, B, C, D,
5
D
E]
- Success probability
Success probability
C
B
1...x – Product idea
3
2
4
1
A
Legend:
Turnover expectations
(competition situation, demand)
Realization time
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Sensitivity Analysis
Objectives
 provide information about alternative scenarios
related to different values of the input variables
when there is a non negligible level of uncertainty in
the assessment of the needed input market data
 See variation in the output scenario
Results
 Weights
 Assessed strategies or options
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Sensitivity Analysis
Choose field of assessment
Choose question for assessment
Assign a weight
Measure score / Evaluate overall score
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Opportunity-Threat analysis
Objectives
 Opportunities and threats describe relevant external
factors, the environment, of an organisation
 SWOT analysis provides information that are helpful in
matching the organisation's resources and capabilities to
the competitive environment in which it operates
 instrument in strategy formulation and selection.
 SWOT analysis can be used in conjunction with other tools
for audit and analysis, such as PEST analysis and Porter's
Five-Forces analysis
Results
 definition of organisation’s opportunities and threats as an
important part of the strategic e-business planning process
 Input data for SWOT analysis
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Agenda: Training on Methodology Module 4
Step 1: Introduction
– Purpose and objectives, structure, positioning
– Practical application environment
Step 2: Methodological approach
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Module 4 purpose and objectives
Module purpose
• Synthesising of results from market and resource based
strategic business analysis into e-business strategy and
roadmap for the Extended Enterprise
• Output is an e-business roadmap for EE which is based on
an e-business strategy
• The e-business roadmap
• is a time-based plan that defines what the status of
an entity’s e-business is, where it wants to go, and
how it can get there
• denotes space structured by development directions,
milestones and projects to get from current status to
a new one in the future
• are both forecasts of what is possible or likely to
happen, as well as plans that articulate a course of
anticipatory action
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Module 4 purpose and objectives
Field of application
• Extended Enterprise model specification (EE entities,
value chain structure, hierarchy of strategic business
objectives)
• E-Business strategy definition (goals, targets,
measures, resources)
• E-business TOWS Analysis
• E-business strategy alternative definition
• E-business implementation roadmap definition
• E-business roadmap graph
• E-business strategy implementation controlling with
Balance Score Card (BSC)
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Module 4 structure
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Relationships to other methodology modules
Module 2: e-business strategy
formulation
• Basis for identification of
interfaces for the roadmap
definition in Module 4
e-business
roadmap
Module 1: Business Objectives
Analysis
• Create common understanding of
EE business objectives
• Basis for targeted e-business
strategy formulation
Module 3: Market Analysis
• Detailed analysis about markets
segments, position, competitors
and customers
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Agenda: Training on Methodology Module 4
Step 1: Introduction
– Purpose and objectives, structure, positioning
– Practical application environment
Step 2: Methodological approach
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Module 4 practical application environment
Organisation
• Intra- or inter-enterprise workshops or tool-based online
session
• Definition of key personnel participants from management
and specialised departments
• Need for different EE-partners at one point of time
Demands on participants
• Knowledge about enterprise, micro and macro environment,
business strategy, e-business situation for the whole
enterprise and strategic business objectives, etc.
Time need
•
•
•
•
Workshop approach: 3-4 workshops
Online sessions: time to be defined
Basis through Module 1-3
Preparation of participants required
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Module 4 practical application environment
Preparation of
coordinator/moderator
Workshop
• In-advance information and invitation of participants
• Moderation methods and instruments (e.g. Flipchart,
Overhead, Beamer, Meta-Plan)
• Documentation and minutes
Web-based online sessions
• Platform configuration and preparation
• In-advance information (purpose, objectives, benefits,
participants, organisation)
• In-advance need for analysis of data from module 1-3
• Invitation (access information, time schedule)
• Reporting
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Agenda: Training on Methodology Module 4
Step 1: Introduction
– Purpose and objectives, structure, positioning
– Practical application environment
Step 2: Methodological approach
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Module 4 structure
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Input data from Module 1
EE business vision
definition
• Enduring statement that distinguishes the EE
enterprise from others
• EE's sense of future direction
EE business mission
definition
• EE definition in a concise and clear manner
EE business objectives
definition
•
•
•
•
Basis for EE strategy development
Definition of main business objectives
Clustering of business objectives
Priority of business objectives (e.g. with BSC)
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Input data from Module 2
E-ability analysis
• Overview about existing bought or self-made eapplications, there importance to the enterprise and
the importance given to e-applications and e-abilities
at all
• assessment average user qualification regarding ebusiness application type
Core competency
analysis
• Overview of core competencies of each EE partner,
the trends, the competitive relevance and the degree
of mastery
• Evaluation and visualization of companies situation
E-benefit analysis
• Overview of benefits for all independent and
interdependent enterprises
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Input data from Module 3
Market position analysis
• enduring statement that distinguishes one enterprise
from other similar enterprises
• enterprise's sense of future direction
Competitive Strategy
• Enterprise definition in a concise and clear manner
Competitor Analysis
•
•
•
•
Basis for strategy development
Definition of all objectives
Clustering of objectives
Prioritising of goals (e.g. with BSC)
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Module 4: e-business strategy and roadmap formulation
Purpose
 Methodological approach and supporting software tool for synthesis
of results from market and resource based strategic business
analyses for EE e-business strategy and roadmap development
Fields of application
 EE business objective definition
 EE business model specification (EE entities, value chain structure,
hierarchy of strategic business objectives)
 e-business TOWS-analyses
 e-business strategy formulation (goals, targets, measures,
resources)
 traceable e-business strategy assessment and selection
 e-business implementation roadmap definition
 e-business strategy implementation controlling with Balance Score
Card (BSC)
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EE business model specification
Start EE model
formulation
EE business
vision
specification
EE business
vision is
specified
Objectives
 Aggregation of data collected before
 Define overall EE business objectives
 Define hierarchy of business objectives
 Draw special attention to problems and opportunities
EE business
mission
specification
EE business
mission is
specified
EE constellation
specification
Results
 EE business purpose definition
 EE idea formulation
 Draft EE business structure model
EE constellation
is specified
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Hierarchy of business objectives
Hierarchy of objectives defines basis for each
entrepreneurial acting
Means-end-relations
Detailing
Enterprise
mission
Enterprise
philosophy
Enterprise
corporate identity
Profit goals
Business unit objectives
Market objectives
Product unit objectives
Subject objectives
Functional objectives
Higherlevel
objectives
• Higher level objectives
• EE business vision (if any)
• EE business mission (if any, mainly only for
horizontal EE)
• Lower level business objectives
• Profit objectives e.g. business unit objectives
• Market objectives e.g. product unit objectives
• Subject objectives e.g. functional objectives
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EE business vision/mission definition
Fundamentals
• enduring statement that distinguishes one enterprise
from other similar enterprises
• important to
• insure unanimity of purpose,
• arouse positive feelings about the enterprises,
• provide direction,
• provide a basis for objectives and strategies,
• serve as a focal point,
• create consensus on specific strategies and
objectives,
• resolve divergent views among managers
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EE business vision definition
Writing the business vision for the EE
Visualisation, discussion and assessment
of individual views on common business visions
Decision about vision statement of the EE
Formulation and publication of business vision
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EE business vision definition
Purpose
"What does the EE want to become?"
• first step in strategic business planning
• clear vision provides the foundation for development
of a comprehensive mission statement
• direction of all business actions toward this vision
Content
• EE’s sense of future direction
• dream for an ideal state
• concise declaration of the direction that an EE is
planning to take into the future
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EE business vision definition
Design guidelines
•
•
•
•
•
short
preferably
meaningful
one sentence
Instigation and inspiration for action and achievement
among employees
• Integration of motivation
• Integration of changing aspects or motivation
 Important for horizontal EE constellations
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EE business mission definition
Writing the business vision for the EE
Visualisation, discussion and assessment
of individual business mission
Decision about mission statement of the EE
Formulation and publication of business mission
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EE business mission definition
Purpose
• EE definition in a concise and clear manner
• Provision of vivid picture of what is unique about the
EE to the reader
• Alignment of every program and activity in the EE to
the mission
Design guidelines
• less than 200 words
• longer than a phrase or sentence, but not a two page
document
• not be too specific (can alienate managers and stifle
creativity)
• Inspiring
• enduring though not cast in stone
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EE business mission definition
Content
•
•
•
•
•
•
•
•
•
Customers and target markets
Products/Services for customers
Geographic markets
Technology
Concern for Survival/Growth/Profits
Philosophy (values, ethics, beliefs)
Public Image
Employees
Distinctive competence and Unique Selling Position
(USP)
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EE business objective definition (see Module 1)
Information of participants
Definition and collection of business problems
and objectives by means of creativity methods
Clustering of business objectives
Presentation and completion of clustered
business objectives
Systems Thinking of business objectives
Priority definition and presentation of business
objectives
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EE constellation specification
Start EE model
formulation
EE business
vision
specification
EE business
vision is
specified
EE business
mission
specification
EE business
mission is
specified
EE constellation
specification
EE constellation
is specified
• Specification of the organization's value and supply
chain, i.e. the Extended Enterprise constellation in
case of shared and integrated business process along
the value chain
• This specification focuses on three main aspects:
• Business processes
• Value and supply chain partners
• Basic e-business strategies for e-business
processes
• EE value chain specification
• organizations that are involved in the interenterprise value and supply chain processes
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EE e-business strategy formulation
Organisation
analysis
Start e-business
strategy
formulation
Market analysis
Opportunity-Thre
at
defined
Strengths-Weakn
esses defined
TOWS-Analysis
TOWS analysed
basic e-business
strategy
definition
Objectives
 Development and decision about the ebusiness strategies based on the results
of:
 Module 2: Organizational analysis
(strengths (S) and weaknesses (W))
 Module 3: Market analysis
(opportunities (O) and Threats
(T))Aggregation of data collected
before
basic e-business
strategy defined
e-business
strategy
alternative
specification
e-business
strategy
alternative
specified
Results
 Preference e-business strategy
alternatives
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SWOT/TOWS Analysis
Use of chances by
strengths
Strengths
Opportunities
Weaknesses
Reduce weaknesses
or change into strengths
Threats
• Development of SWOT matrix based on results of
• Module 2: strengths (S) and weaknesses (W)
• Module 3: opportunities (O) and Threats (T)
• Combination of S-W-O-T elements: matching the resources
and capabilities to the competitive environment
• S/O combination: organisation should strive to maximise its ebusiness strengths to capitalise on new e-business
opportunities
Minimise or avoid
threats
Strengths
Weaknesses
List of strengths
(1 .. n)
List of weaknesses
(1 .. n)
Opportunities
SO strategies
WO strategies
List of
opportunities
(1 .. n)
SO 1..n:
Consolidation of strengths
to realise opportunities
WO 1..n:
Overcoming of
weaknesses by realisation
of opportunities
Threats
ST strategies
WT strategies
List of threats
(1 .. n)
ST 1..n:
Consolidation of strengths
to avoid threats
WT 1..n: Overcoming of
weaknesses and
avoidance of threats
• S/T combination: organisation should strive to use its ebusiness strengths to parry or minimise threats
• W/O combination: conquer the organisation's e-business
weaknesses by making the most out of any new e-business
opportunities
• W/T combination: defensive strategy, to minimise an
organisation's internal e-business weaknesses and avoid
external threats
• Development of basic e-business strategy types and ebusiness alternatives for further elaboration and
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e-business at a glance
e-government
business-to-administration (b2a)
e-procurement
Business partners/
suppliers
Extranet
e-business
Own
enterprise
Intranet
e-commerce
Internet
Customers
consumer-toconsumer (c2c)
internal business
business-to-business (b2b)
Supply Chain Management
e-organisation
business-toemployee (b2e)
business-to-business (b2b)
business-to-consumer (b2c)
Customer Relationship Management
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Some basic e-business strategy types
What?
• Supply Chain Management defines the management of a network of
organisations that are involved, through upstream and downstream linkages,
in the different processes and activities that produce value in the form of
products and services in the hand of the customers
• If these processes are supported by e-business applications, it is called
e-SCM
• Commerce are all transactions (sales and purchases) having the objective of
supplying commodities (goods and services)
• E-commerce is a synonym for all kinds of business that are established
electronically especially over the Internet
• This includes both electronic sale (internet shops) and B2B transactions,
i.e. business between two companies
• Procurement contains functionalities to illustrate internal sourcing processes
for indirect and increasingly also for direct goods, as well as for integration of
cross-plant sourcing and dynamic trade processes, such as auctions or
proposals
• If these processes are supported by e-business applications, it is called
e-Procurement
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Strategy alternatives to realise basic e-business strategy types
1st level content of e-business strategy detailing:
How?
• Specification of e-business strategy on the ICT application
level and justification
• Definition and differentiation between clients, customers, and
users
• Definition of milestones (time) related to ICT application
implementation
• Description of constraints for e-business strategy alternative
implementation
• Description of other relevant facts and assumptions related to
the validity of the specific e-business strategy alternative
2nd level content of e-business strategy detailing
• actions
• responsibilities
• resources
• time
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Definition of actions, initiatives and projects and compilation
• Compilation of single e-business actions with other e-business
actions already running or planned
• evaluation of these projects and initiatives and determination of the
concept to be pursued
• Selection of most feasible and beneficial e-business actions
• a brief brainstorming exercise for each action to provide a
starting point for action planning.
• Main subjects to specify:
• Priorities
• implementation chances, risks and corrective measures
• resource specification: financial, technology, material and
human
• responsibility definition
• investment planning
• mid till long-term implementation plan and timeline
specification
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E-business strategy assessment and selection
• Strategic choice is the decision to select from
alternatives the strategy which will meet best the
enterprise objectives
• The decision involves focussing on a few alternatives,
considering the selected factors, evaluating the
alternatives against these criteria, and making the
actual choice
• Central to the e-business strategy assessment is the
evaluation against three major types of assessment
criteria:
• real business issues
• Intangibles strategy assessment criteria
• generic strategy assessment criteria
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Examples for business related strategy assessment criteria
Criteria
Factors
Corporate business
strategy
–
–
–
Coherence with high level objective orientation
Objective fulfilment potential
realisation time
Current and future
market
–
–
–
–
customer profile and needs
competitors
bargaining power of suppliers
macroeconomic factors
Products and services
–
–
quality of products and services
substitute products
People
–
–
skills and technology mastery
training possibilities
Innovation and change
–
–
–
Innovation degree (short-, mid-, long-term competitive advantage)
Technology sophistication
Technology mastery
Finance and investment
–
–
–
–
design costs
implementation costs
operation costs
fixed and variable costs
Risk, reward, uncertainty
–
–
–
Ease of implementation
Chance to fail
Risk averse
Resource view
–
–
–
status assessment: e.g. hardware, soft skills
competences: internal, external
availability: budget, humans
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Examples for intangible strategy assessment criteria
Criteria
Factors
Relationships
–
–
–
–
–
Scale, scope and liability of distribution network
Bargaining power
Ability to access markets
Ability to work with partners
Excellence in teamwork, networking, and collaboration
Knowledge
–
–
–
–
knowledge on influencing parameters
R&D ability/ product development and market research
Valuable customer benefits
Management abilities
Cultures and values
–
–
–
–
–
Advertisement/ promotion/ PR
Shared aim and purpose
Reward system
Relationship to stakeholders
Lived corporate culture
Reputation and
trust
–
–
–
–
–
–
customer confidence
relationship to suppliers and importance of organization to supplier
delivering on time/ specifications
competitive advantage
customer loyalty
sensitivity in dealing with problems and concerns
Skills and
competences
–
–
–
ability to build and defend niches
training, learning and development opportunities
ability to see problems and opportunities
Processes and
systems
–
–
–
–
–
–
ability to make effective and efficient, and economical use of new design, materials, technologies, and ways of working
continual improvement
fit between production capabilities and market needs
on the job and off the job training
ability to make use of good ideas
control system
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Examples for generic strategy assessment criteria
Criteria
Factors
Tangibility
–
–
–
–
Clearness
Transparency
Coherence
Adequacy
Relevance
–
–
–
Decision support
Orientation
Relevance for different planning processes
Closeness of
content
–
–
–
–
–
–
Flawlessness
Credibility
Completeness
Systematic approach
Development paths (roadmap)
Information contents
Interaction of
strategies
–
–
Difference between strategies
Commonality of information, subjects under consideration
Stability
–
Internal consistency
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Overview of common assessment methods
Focus
Methods for
documentation
and evaluation of
success factors
Cost oriented
assessment
methods
Investmentbased
assessment
methods
Effect and
benefit oriented
assessment
methods
Methods
–
–
–
–
–
–
Checklists
Scoring,
profiling,
portfolio
models
Core
competence
analysis
–
–
Total costs of
ownership
(TCO)
Cost-benefit
analysis
Activity based
costing (ABC)
/ Process
costs analysis
–
–
–
–
–
Discounted
cash flow
(DCF)
Net present
value (NPV)
Return on
Invest (ROI)
Real options
pricing model
(ROPM)
Black Scholes
Model
Wibe 21
–
–
–
Value-benefit
analysis
Balanced
scorecard
(BSC)
Scoring,
profiling,
portfolio
models
Core
competence
analysis
 Value benefit analysis with high practical relevance
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Value benefit analysis method
1. select strategy scenarios to assess
• first of all the strategies must be found and selected following the three
major kinds of assessment criteria (see above)
2. define assessment factors
• which criteria are important for the result of the project
• select those (from a given list and self-given)
3. define weight factors
• not all criteria are as important as others are
• so the assessment factors have to be weighted
• best way to do it is by using percentages which add up to 100
4. scoring of e-business strategy scenario
• score each scenario independent from the other
• point score: 10 (best) up to 1 (poor) – points can be given a couple of
times
5. calculate ideal value and specific strategy scenario value
• score = weight x criteria evaluation
• addition of scores for each scenario = total value
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Value benefit analysis method
6. Define threshold
• Calculate the best possible value
• Calculate a threshold to say which values are allowed to use further
7. Rank strategy scenario
• highest sum gets best ranking
• bring the strategies into an order (1- best … n-worst)
8. Result interpretation
• If cost differences do exist is it important to evaluated them with the ranking
•
Assessment insecurity, consider mistake border line, look for sensitivity
Value benefit analysis
Criteria
weight1
e-business strategy alternatives
Alternative 1
Alternative 2
eva.2
eva.2
score3
Customer focus
15%
10
1.5
Process orientation
20%
10
Cost minimizing
15%
Increase in sales
Success probability
Total
Alternative 3 (Ideal)
score3
eva.2
score3
10
1.5
10
1.5
2
2
0.4
10
2
4
0.6
2
0.3
10
1.5
40%
5
2
4
10
4
10%
8
0.8
0.5
10
1
100%
Ranking
10
5
6.9
2.
6.7
3.
10
1.
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E-business roadmap definition
• Different kinds of roadmaps used in practice:
• Basic ones: technology, product, organisational process
roadmap
• e-business roadmap: combination of technology and
organisational process roadmap, ICT enables and is
means to an end for business process reengineering
• “e-business roadmap” is metaphor for an atlas of enterprise
e-business development
e-business
roadmap
types
Roadmap class I
Roadmap class II
Roadmap class
III
Combination
Reference
object(s)
driving and key
information and
communication
technologies
e-business
application systems
enterprise ebusiness
performances
ICT and/or
application
systems and/or
performance
enterprise ebusiness
performances
Time
Short, mid, and long term
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E-business view
E-business roadmap design principles
Object2
Object4
Attributes2.1
Attributes4.1
Object3
Object1
Attributes3.1
Attributes1.1
time
• time based plan where an entity is, where it wants to go,
and how it can get there
• Graphical presentation of e-business roadmap objects,
its attributes (y-axis) and its combinations over time (xaxis)
• e-business roadmap dimension “time” is fixed →
reference point is the present day (time horizon is
defined by the object with latest realisation date
• e-business roadmap dimension “e-business” is
defined by the chosen attribute to display
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E-business roadmap object attributes
Attribute
Source
Comments
1.Organisation
EE partner specification within the
scope of EE constellation
specification
2. ICT /
application
Specification of e-business
strategy within the scope of Ebusiness strategy formulation
3. business
process
EE business process model
specification within the scope of
EE constellation specification
4. Status (life
cycle)
Definition within this roadmap
design process
ICT / application life cycle
phase specification (idea,
conception, design,
implementation, operation)
5. Type
Definition within this roadmap
design process
ICT / application “make” or
“buy” specification
6. Time
Specification of e-business
strategy within the scope of Ebusiness strategy formulation
Milestone (implementation)
Project funded by the European Community under the ‘Competitive and Sustainable Growth’ Programme (1998-2002)
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Roadmap for e-business implementation in Extended Enterprises
E-business road map framework
• Entities
• Business process
• Time
• ICT
• Status
• Type
•…
E-business view
EE level
EE road map object
attributes:
EE entity road map
object attributes:
...
• Business process
• Time
• ICT
• Status
• Type
•…
E-business view
E-business view
EE entity level
Time
Time
Time
 E-business roadmap of the EE has to be coordinated and harmonised with the
partner roadmaps
Project funded by the European Community under the ‘Competitive and Sustainable Growth’ Programme (1998-2002)
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Roadmap for e-business implementation in Extended Enterprises
Summary of e-business road mapping methodology
User benefits
 Develops effective e-business strategies using analytical
methods and tools
 Bases on discussion and decisions among employees,
managers and business partners
 Obtains commitment to organisation’s business objectives
and strategies
 Anticipates today’s and future situation
 Creates favourable attitude towards change processes
 Develops tactics to implement e-business strategies
 Provides more systematic e-business planning approach
 Ensures improved management performance, e.g. by
software tool support
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