Minseok Pang KAIST Graduate School of Management

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A Benchmarking-Based Requirement Analysis
Methodology for Improving Websites A Case of
Investor Relations
Min-seok Pang (KAIST Graduate School of
Management) Woojong Suh (Inha University, School
of Business Administration) Jong-ho Kim (Samsung
SDS) Heeseok Lee (KAIST Graduate School of
Management) Nov.25.2005
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Table of Contents
1. Introduction 2. Benchmarking for Website
Improvement 3. Methodology and a Real-Life
Case 4. Conclusion
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1. Introduction
???? ????
If you know your enemy and know yourself, you
need not fear the result of hundreds of battles.
From the Art of War written by Sun Tzu
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1. Introduction
Research Motivations

• Due to highly competitive and dynamic Web
  environment, it is particularly important
• not only to build an attractive website
• but to continuously improve the website

• Even though benchmarking is an effective tool for
  improving websites and it has been adopted
  frequently in many website projects,
• the previous research shed little light on the
  website benchmarking.

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1. Introduction
Research Objectives

• To suggest the definition of the website
  benchmarking and clarify its purpose and role
• To propose a benchmarking-based requirement
  analysis methodology for improving websites
• Based on Goal-Driven Requirement Analysis
  Approach

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2. Benchmarking for Website Improvement
Definition of Benchmarking

• An activity
• to evaluate the existing website and
  competitors best websites,
• to find out their strengths and weaknesses,
• to analyze the gap between the former and the
  latter, and
• to generate improvement requirements that can be
  adopted in actual implementation,
• for the purpose of making websites more
  competitive

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2. Benchmarking for Website Improvement
Roles of Benchmarking

• To find sources for improvements and new ways of
  constructing websites outside an organization
  (Anderson and Petterson 1996)
• To concretize users vague requirements and
  address the volatility of requirements (Lowe
  2003)
• To accumulate knowledge and practices of website
  administrators and developers (Vorhies et. al
  2005, Zairi and Hutton 1995)

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3. Methodology and a Real-Life Case
Goal-Driven Requirement Analysis Approach

• Goal is defined as the objective and target of
  achievement for a system (Anton 1996)
• Goal-driven Approach focuses on why systems are
  constructed and what provides the motivation and
  rationale to justify software requirements (Lee
  et al. 2001)

Benefits of Goal-Driven Approach (Lee et al. 2001)

• Help to acquire requirements by elaborating what
  requirements are needed to support the goals
• Make easy the justification and explanation of
  the presence of requirements in a progressive way
• Provide the information for detecting and
  resolving conflicts that arise from multiple
  viewpoints among agents

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3. Methodology and a Real-Life Case
Definitions of Concepts
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3. Methodology and a Real-Life Case
Steps of Methodology
Problem Recognition
Stakeholder Goal Identification
Benchmarking Target Selection
Goal List
Goal Prioritization
Benchmarking Target List
Goal List with Priority
Goal Decomposition
Sub-Goal List
Goal-Quality Deployment
Goal-Quality Relationship Table
Current Website Analysis
Target Websites Analysis
Analysis of Target Website
Analysis of Current Website
Improvement Requirements Generation
Improve Requirements List
Design Implementation
Operation
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3. Methodology and a Real-Life Case
A Real-Life Case IR Website of H Telecom

• H Telecom the second largest telephone and
  broadband Internet service provider in South
  Korea
• Investor Relation(IR) is a strategic management
  responsibility
• that integrates finance, communication,
  marketing and securities law compliance
• to enable the most effective two-way
  communication between a company, the financial
  community, and other constituencies,
• which ultimately contributes to a company's
  securities achieving fair valuation (NIRI 2003)

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3. Methodology and a Real-Life Case
Problem Recognition

• The importance of use of Internet and websites
  in IR is keeping increasing.
• Internet facilitates access for a large number
  of individual investors to IR materials that was
  only available to institutional investors in the
  past. (Brennan and Kelly 2000)
• Internet offers the possibility of interactive
  user-provider communication, and allows real-time
  communication, thus enhancing timeliness of
  financial information. (Xiao et al. 2002)
• H Telecom recognized that its current IR website
  could not follow this trend and decided to
  undertake the improvement of the website.

• 0) Problem Recognition
• 1) Stakeholder Goal
• Identification
• 2) Benchmarking Target
• Selection
• 3) Goal Prioritization
• 4) Goal Decomposition
• 5) Goal-Quality Deployment
• 6) Current Website Analysis
• 7) Target Website Analysis
• 8) Improvement Requirement
• Generation

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3. Methodology and a Real-Life Case
Stakeholder and Goal Identification
Stakeholders Individual Investors (S1),
Institutional Investors (S2), Potential Investors
(S3)

• 0) Problem Recognition
• 1) Stakeholder Goal
• Identification
• 2) Benchmarking Target
• Selection
• 3) Goal Prioritization
• 4) Goal Decomposition
• 5) Goal-Quality Deployment
• 6) Current Website Analysis
• 7) Target Website Analysis
• 8) Improvement Requirement
• Generation

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3. Methodology and a Real-Life Case
Benchmarking Target Selection

• 0) Problem Recognition
• 1) Stakeholder Goal
• Identification
• 2) Benchmarking Target
• Selection
• 3) Goal Prioritization
• 4) Goal Decomposition
• 5) Goal-Quality Deployment
• 6) Current Website Analysis
• 7) Target Website Analysis
• 8) Improvement Requirement
• Generation

From IR Global Rankings 2005 (http//www.irglobalr
ankings.com/)
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3. Methodology and a Real-Life Case
Goal Prioritization

• Goals can be prioritized based on
• importance of stakeholders who are related with
  the goals
• goals significance perceived by stakeholders
• the companys strategic considerations, and
• the gaps between the current website and the
  target websites evaluated by stakeholders

• 0) Problem Recognition
• 1) Stakeholder Goal
• Identification
• 2) Benchmarking Target
• Selection
• 3) Goal Prioritization
• 4) Goal Decomposition
• 5) Goal-Quality Deployment
• 6) Current Website Analysis
• 7) Target Website Analysis
• 8) Improvement Requirement
• Generation

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3. Methodology and a Real-Life Case
Goal Decomposition (Anton 1996, Bolchini and
Paolini 2004)

• 0) Problem Recognition
• 1) Stakeholder Goal
• Identification
• 2) Benchmarking Target
• Selection
• 3) Goal Prioritization
• 4) Goal Decomposition
• 5) Goal-Quality Deployment
• 6) Current Website Analysis
• 7) Target Website Analysis
• 8) Improvement Requirement
• Generation

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3. Methodology and a Real-Life Case
Goal-Quality Deployment

• 0) Problem Recognition
• 1) Stakeholder Goal
• Identification
• 2) Benchmarking Target
• Selection
• 3) Goal Prioritization
• 4) Goal Decomposition
• 5) Goal-Quality Deployment
• 6) Current Website Analysis
• 7) Target Website Analysis
• 8) Improvement Requirement
• Generation

? Weak Relationship / ? Moderate Relationship/ ?
Strong Relationship
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3. Methodology and a Real-Life Case
Current Website Analysis
Sub-Goal 1-2 To exhibit trends of stock price
in a variety of forms

• 0) Problem Recognition
• 1) Stakeholder Goal
• Identification
• 2) Benchmarking Target
• Selection
• 3) Goal Prioritization
• 4) Goal Decomposition
• 5) Goal-Quality Deployment
• 6) Current Website Analysis
• 7) Target Website Analysis
• 8) Improvement Requirement
• Generation

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3. Methodology and a Real-Life Case
Target Website Analysis
Sub-Goal 1-2 To exhibit trends of stock price
in a variety of forms

• 0) Problem Recognition
• 1) Stakeholder Goal
• Identification
• 2) Benchmarking Target
• Selection
• 3) Goal Prioritization
• 4) Goal Decomposition
• 5) Goal-Quality Deployment
• 6) Current Website Analysis
• 7) Target Website Analysis
• 8) Improvement Requirement
• Generation

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3. Methodology and a Real-Life Case
Current Website Analysis
lt H Telecom gt Current Stock Price and Chart

• 0) Problem Recognition
• 1) Stakeholder Goal
• Identification
• 2) Benchmarking Target
• Selection
• 3) Goal Prioritization
• 4) Goal Decomposition
• 5) Goal-Quality Deployment
• 6) Current Website Analysis
• 7) Target Website Analysis
• 8) Improvement Requirement
• Generation

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3. Methodology and a Real-Life Case
Target Website Analysis

• 0) Problem Recognition
• 1) Stakeholder Goal
• Identification
• 2) Benchmarking Target
• Selection
• 3) Goal Prioritization
• 4) Goal Decomposition
• 5) Goal-Quality Deployment
• 6) Current Website Analysis
• 7) Target Website Analysis
• 8) Improvement Requirement
• Generation

lt SK Telecom gt Stock Price Analysis and
Comparison with Competitor
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? Not Support ? Partially Support ? Fully
Support
3. Methodology and a Real-Life Case
Improvement Requirement Generation

• 0) Problem Recognition
• 1) Stakeholder Goal
• Identification
• 2) Benchmarking Target
• Selection
• 3) Goal Prioritization
• 4) Goal Decomposition
• 5) Goal-Quality Deployment
• 6) Current Website Analysis
• 7) Target Website Analysis
• 8) Improvement Requirement
• Generation

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4. Conclusion
Comparisons of Development Methodologies
Lee, H., and Suh, W. (2001). "A workflow-based
methodology for developing hypermedia information
systems," Journal of Organizational Computing and
Electronic Commerce Kim, J., Suh, W., and Lee,
H. (2003). "Hypermedia modeling for linking
knowledge to data warehousing system," Expert
Systems with Applications, Park, H., Suh, W.,
and Lee, H. (2004). "A role-driven
component-oriented methodology for developing
collaborative commerce systems," Information and
Software Technology Lee, C., Suh, W., and Lee,
H. (2004). "Implementing a community web site a
scenario-based methodology," Information and
Software Technology
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4. Conclusion
Future Research direction

• Devise detail methods to resolve conflictions
  between stakeholders and goals
• Propose formulations to prioritize goals and
  sub-goals
• Suggest the ways of improvement which are not
  limited to the imitation of others, but enable
  the website to surpass competitors one

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THANK YOU
KAIST Graduate School of Management CIS
Lab. Min-seok PANG noticeme_at_kgsm.kaist.ac.kr Nov.2
5.2005