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Chapter 16 EC Strategy and Implementation


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Title: Chapter 16 EC Strategy and Implementation

Chapter 16EC Strategy and Implementation
Learning Objectives
  • Describe the importance and essentials of
    business and EC strategies
  • Describe the strategy planning process fro EC
  • Understand the strategy formulation process
  • Understand how EC applications are discovered and

Learning Objectives (cont.)
  • Describe the role of CSFs and justification of EC
  • Describe strategy implementation
  • Understand how to reassess EC strategy
  • Describe the role of metrics in EC
  • Understand EC failures and lessons for success

IBMs E-Business Strategy
  • Following four goals
  • Lead IBMs strategy to transform itself into
  • Act as a catalyst to help facilitate that
  • Help business units become more effective in
    their use of the Internet/intranet
  • Internally
  • With their customers

IBMs E-Businesss Strategy (cont.)
  • Establish a strategy for the corporate Internet
  • Including definition of how it should look,
    feel and be navigated
  • Create an online environment most conducive to
    customers doing business with IBM
  • Leverage the wealth of e-business
    transformational case studies within IBM to
    highlight the potential of e-business to IBMs

IBMs E-Business Strategy (cont.)
  • IBM focused on key initiatives
  • E-commerceselling more goods via the Web
  • E-care for customersproviding all kinds of
    customer support online
  • E-care for business partnersdedicated services
    providing faster, better information for these
    important groups

IBMs E-Business Strategy (cont.)
  • E-care for employeesimproving the effectiveness
    of IBMers by making the right information and
    services available to them
  • E-procurementworking closely with IBM's
    customers and suppliers to improve the tendering
    process and to better administer the huge number
    of transactions involved
  • E-marketing communicationsusing the internet to
    better communicate IBMs marketing stance

Need for a Strategy
  • Cases of e-strategy
  • Click-and-mortar companies that use several EC
  • Click-and-mortar companies that use only one or
    two EC applications
  • Click-and-mortar companies that use one EC
    application that fundamentally changes all their
  • Pure-play EC companies

Need for a Strategy (cont.)
  • Why does a company need an e-strategy?
  • Fast changes in business and technology means
    opportunities and threats can change in a minute
  • Company must consider EC strategy that includes
    contingency plans to deal with changes
  • May be too costly not to have one

Essentials of a Business Strategy
  • Strategysearch for revolutionary actions that
    will significantly change the current position of
    a company, shaping its future
  • Finding the position in marketplace that best
    fits the firms skills
  • Companys choice of new position that must be
    driven by its ability to find new trade-offs and
    leverage a new system of complementary activities
    into sustainable advantage

Essentials of a Business Strategy (cont.)
  • Types of strategy
  • Strategic planning
  • Strategic response
  • Strategic innovation
  • Levels of strategy
  • Corporate (or organizational) strategy
  • IT strategy
  • EC strategy
  • EC functional strategies
  • These are interrelated

Figure 16-1EC Strategy Alignment
Essentials of a Business Strategy (cont.)
  • Strategy landscape
  • Strategy initiation
  • Strategy formulation
  • Strategy implementation
  • Strategy assessment
  • Four major steps
  • Basis for chapter organization
  • Elements of a strategy
  • Forecasting
  • Resource allocation
  • Core competency
  • Strategy formulation
  • Environmental analysis
  • Company analysis

Figure 16-2The Landscape of EC Strategy

Essentials of a Business Strategy (cont.)
  • Information technology (IT) strategystrongly
    correlated with EC strategy because
  • IT provides much of the infrastructure for EC
  • EC applications must be integrated with IT
  • EC applications may replace or improve existing
    IT applications
  • EC organization may report to CIO
  • Employees in IS department work on EC applications

Strategy Initiation
  • First step is to review the organizations
    business and IT vision and mission
  • Then, a vision and mission for EC can be
  • Although these statements are usually very vague,
    they provide a springboard for generating more
    specific goals and objectives
  • Begin with industry and competitive analysis

Industry Analysis
  • Analyze position of the company in its industry
    and the competition
  • Required for assessing the changes that EC
    project may introduce and its chances for success

Industry Assessment
  • What industry is the EC initiative related to?
  • Who are the customers?
  • What are the current practices of selling and
  • Who are the major competitors? (How intense is
    the competition?)
  • What e-strategies are used, by whom?
  • How is value added throughout the value chain?
  • What are the major opportunities and threats?
  • Are there any metrics or best practices in place?
  • What are the existing and potential partnerships
    for EC?

Figure 16-3Company Analysis
Source Hackbarth and Kettinger (2000), p. 85.
Reprinted with permission of William J. Kettinger.
Industry and Competitive Analysis
  • Monitoring, evaluating, disseminating of
    information from the external and internal
  • SWOT Analysis
  • Strengths
  • Opportunities
  • Weaknesses
  • Threats

Figure 16-4 SWOT Diagram
Strengths (S)
Weaknesses (W)
SO Strategies Generate strategies here that use
strengths to take advantages of opportunities
WO Strategies Generate strategies here that take
advantage of opportunities by overcoming
Opportunities (O)
ST Strategies Generate strategies here that use
strengths to avoid threats
WT Strategies Generate strategies here that
minimize weaknesses and avoid threats
Threats (T)
Competitive Intelligence on the Internet
  • Internet can play a major role as a source of
    competitive information (competitive
  • Review competitors Web sites
  • Analyze related newsgroups
  • Examine publicly available financial documents
  • Ask the customersaward prizes to those who best
    describe your competitors strengths and

Competitive Intelligenceon the Internet (cont.)
  • Information delivery services
  • Find out what it published on the Internet
  • Newsgroups
  • Information about your competitors and their
  • Known as push technologies
  • Corporate research companies provide information
    about your competitors
  • Risk analysis
  • Stock market analysts reports
  • Examine chat rooms

Competitive Intelligenceon the Internet (cont.)
  • Evolving experiences, need to be treated with
  • Overreliance on such information can be dangerous
  • Using publicly available search engines is free,
    but may produce lots of irrelevant information
  • Use specialty-build agents to search the
    overwhelming amount of information available

Customized Competitive Intelligence
  • Current company information is available in their
    press releases and information published on their
    Web sites
  • Push technology services used to keep companies
    up-to-date by finding information for them
  • Searches should not replace in-depth background
  • Business intelligence companies offer packaged
    competitive analysis

Issues in Strategy Initiation
  • To be a first mover or a follower?
  • Disadvantages
  • Cost of developing EC initiative is usually very
  • Chance of failure is high
  • System may be obsolete as compared to second wave
  • No support services are available at the
  • Advantages
  • Chance to capture large markets
  • Establishing a brand name
  • Exclusive strategic alliances

What Do You Need an EC For?
  • Enhancing the sell channel by advertisement and
  • Enhancing the buy (procurement channel)
  • Enhancing the customer service channel
  • Going global
  • Facilitating value-chain integration
  • Providing for new products and services
  • Going into specialty markets
  • Going to mass customization

Should You Have a SeparateOnline Company or Not?
  • Advantages
  • Reducing or eliminating internal conflicts
  • Providing more freedom to management in pricing,
    advertising, etc.
  • Can create new brands quickly
  • Take the e-business to an IPO and make a fortune
  • Disadvantages
  • May be very costly and risky
  • Collaboration with off-line business may be
  • Lose expertise of business functions unless you
    use close collaboration

Strategy Formulation
  • Strategy formulation
  • Development of long-range plans
  • Organizations mission
  • Purpose or reason for the organizations
  • 3 main reasons for establishing Web site
  • Products with good fit for EC
  • Shipped easily or transmitted electronically
  • Targets knowledgeable buyers
  • Price falls within certain optimum ranges

EC Critical Success Factors
  • Special products or services traded
  • Top management support
  • Project team representing various functional
  • Appropriate technical infrastructure
  • Must have customer acceptance
  • User-friendly Web interface
  • Integration with the corporate legacy systems

EC Critical Success Factors (cont.)
  • Security and control of the EC system
  • Competition and market situation
  • Conduct pilot project and capture corporate
  • Use promotion and internal communication
  • Cost of the EC project must be reasonable
  • Need sufficient level of trust between buyers and

EC Opportunities
  • 3 common mistakes in allocating EC investment
  • Let a thousand flowers bloomfund many projects
  • Bet it allput everything on a single high-stake
  • Trend-surffollow the crowd toward the next big
  • All of the above can be risky and costly

EC Opportunities (cont.)
Approaches to finding individual EC initiatives
  • Problem-drivenattempt to solve a problem such
  • Excess inventory
  • Delivery delays
  • Technology-driventrying to use existing
  • Find problems no one knew existed
  • Used by first movers

EC Opportunities (cont.)
Approaches to finding individual EC initiatives
  • All can fail
  • Market-drivenwaiting to see what the competitors
    will do
  • Fear or greed-driven
  • Afraid if they do not practice EC they will be
    big losers
  • Think they can make lots of money going into EC

Figure 16-5Approaches for Finding EC
Uncovering Specific ECOpportunities and
  • Understand
  • How digital markets operate
  • How Internet customers behave
  • How competition is created and what
  • is needed
  • What the dynamics of EC are
  • Map opportunities that match current competencies
    and markets
  • Many opportunities to create new products and

Uncovering Specific ECOpportunities and
Applications (cont.)
  • Opportunities for EC businesses
  • Matchmakingmatching buyers needs from seller
    without a prior knowledge of either one
  • Aggregation of servicescombines several existing
    services to create a new service
  • Bid/ask enginecreates a demand/supply floating
    pricing system
  • Notification servicetells you when the service
    becomes available, or when it becomes cheaper

Uncovering Specific ECOpportunities and
Applications (cont.)
  • Smart needs adviserif you want , then you
  • Negotiationprice, quantity, or features are
  • Up-sellsuggests an additional product or service
  • Consultative adviserprovide tips on using the

Methods for Finding IT Applications
  • Brainstorming by a group of employees
  • Soliciting the help of experts, such as
  • Review what the competitors are doing
  • Ask the vendors to provide you with suggestions
  • Read the literature to find out whats going on
  • Use analogies from similar industries or business
  • Use a conventional IS requirement analysis

Determining an AppropriateEC Application
Generic approaches
  • Find the most appropriate portfolio in order to
    share limited resources
  • Combine long-term speculative investments in new
    potentially high-growth business
  • With short-term investments in existing,
    profit-making businesses
  • Boston Consulting Groups matrix
  • Cash cows Questionable projects
  • Starts Dogs

EC Application Portfolio
  • An EC-specific method
  • Tjans portfolio strategyInternet portfolio map
  • Strategy based on company fit (assessed by five
    levels from high to low)
  • Projects viabilityassessed by 4 criteria
  • Market value potential
  • Time to positive cash flow
  • Personal requirements
  • Funding requirements

Which Business Model to Use?
  • Case Schubb and casualty
    insurance company
  • Typical choice of EC model at Schubb Corp.
  • Create a new business model with EC as a major
    driverdiscarded because they had a successful
    business model with products matching
    distribution systems
  • Spawn a secondary business model around EC go
    directly to consumersdid not want to interrupt
    their relationships with agents and brokers

Case Schubb Corp. (cont.)
  • Use EC as a tool within the existing business
    model (the selected model)
  • Helped Schubb further differentiate products and
    services by providing superb customer service
    over the Internet
  • Opened several Web sitesone for each specialty
    group (e.g., for wine collectors)
  • Enables superb communication with agents and
    business partners
  • Allows business expansion into 20 countries

Cost-Benefit and Risk Analysis
  • Business case for EC approach for garnering
    funding for projects used to
  • Provide justification for investments
  • Provides bridge between EC plan and the execution
  • Provides foundation for tactical decision making
    and technology risk management
  • Clarifies how the organization will use resources
    to accomplish the e-strategy

Cost-Benefit and Risk Analysis (cont.)
  • Content of an E-business case
  • Strategic justificationwhere are we going?
  • Generational justificationhow will we get
  • Technical justificationwhen will we get there?
  • Financial justificationwhy will we win?

Cost-Benefit and Risk Analysis (cont.)
  • How to conduct an
  • e-business case
  • Develop goal statement
  • Set measurable goals
  • Develop short- and long-term action plans
  • Gain approval and support
  • Revenue model
  • Properly planned revenue model is a critical
    success factor
  • Revenues from sales depend on customer
    acquisition cost and advertisement
  • Must be figured into the analysis

Cost-Benefit and Risk Analysis (cont.)
  • It is difficult to justify EC investment due to
    many intangible variables
  • Methods used for analysis
  • Value analysis and proposition
  • Rate of return of investment (ROI) and/or
    discounted cash flow
  • Real options valuation and analysis
  • Management by maxim
  • Information economics

Value Analysis and Proposition
  • A Value Analysis Approach
  • Value chaina series of activities a company
    performs to achieve its goal(s)
  • Value added
  • Contributes to profit and enhances the asset
    value as well as the competitive position of the
    company in the market
  • To create additional value using EC channels, a
    company should consider the competitive market
    and rivalry in order to best leverage its EC
  • (Customers value proposition)

Value Analysis and Proposition (cont.)
  • Value Analysis Questions
  • Representative Questions for Clarifying Value
    Chain Statements
  • Can I realize significant margins by
    consolidating parts of the value chain to my
  • Can I create significant value for customers by
    reducing the number of entities they have to deal
    with in the value chain?

Value Analysis and Proposition (cont.)
  • Value Analysis Questions (cont.)
  • Representative question for creating new values
  • Can I offer additional information of transaction
    services to my existing customer base?
  • Can I use my ability to attract customers to
    generate new sources of revenue, such as
    advertising or sales of complementary products?

Return on Investment (ROI)
  • Return on Investment and Risk Analysis
  • A ratio of resources required and benefits
    generated by an EC project
  • Includes both quantifiable items (cost of
    resources, computed monetary savings) and
  • Non-quantifiable items (intangibles)
  • Some intangible benefits
  • Effective marketing channel
  • Increased sales
  • Improved customer service

Return on Investment and Risk Analysis
  • IT values
  • Financial valuesmeasurable to some degree
  • Strategic valuescompetitive advantage in the
    market and benefits generated by business
  • Stakeholder valuesreflections of organizational
    redesign, organizational learning, empowerment,
    information technology architecture of a company,

Return on Investment and Risk Analysis (cont.)
  • IT risks risks
  • Competitive strategy riskexternal, due to joint
    venture, alliances or demographic changes among
  • Organizational risk and uncertaintyinternal to

Figure 16-7Real Option Analysis
Source Rayport and Jaworski (2001) Exhibit 8-8
pg. 304.
Risk Analysis
  • Risk analysis program should
  • Identify all potential risks
  • Assess potential damage
  • Evaluate possibility of protection (insurance)
  • Evaluate cost of protection vs. benefits
  • E-business risks
  • Strategic risks (e.g., competitive environment,
    wrong strategic direction)
  • Financial risks (e.g., currency management and
    changes, unclear tax situations)
  • Operational risks (e.g., technological changes
    and use of poor technology, security)

EC Scenarios
  • Scenario planning is a methodology used in
    planning situations that involve much
    uncertainty, like that of EC (what-if)
  • Several different scenarios are created
  • A team compiles several future events as possible
    influences on the outcome
  • Securities are assessed and future projections
    are made
  • Scenarios are compared

EC Scenarios (cont.)
  • Four scenarios described by Hutchinson
  • Open, global commerce scenarioremoval of
    intermediaries flattens the value chain
  • Members-only subnet scenarioapplies mostly to
    B2B EC
  • Electronic middlemen scenariobusiness and
    consumer market suppliers can make
    products/services available through independent
    third-party distribution channels

EC Scenarios (cont.)
  • 4 scenarios described by Hutchinson (cont.)
  • Consumer marketing channels scenariotraditional
    methods collapse into a unified consumer-centric
    EC medium on the Internet
  • Broadcasting
  • Advertising
  • Consumer telephony

Strategic Planning Framework
  • EC appears in three levels
  • Level 1 Basic presencecompany uses the Internet
    to feature company information and provide
  • Level 2 Prospectingfeatures added
  • Search engine
  • Extensive product information
  • Links to services
  • Ability to interact with the company
  • Basic customer service

Strategic Planning Framework (cont.)
  • Level 3 Business integrationmore features added
  • EC transaction capabilities
  • Customization and personalization services
  • Tools fostering creation of a community
  • Level 4 Business transformationsupplier and
    customer integration added
  • Multichannel integration
  • Advanced customization and configuration
  • Superb customer service

Strategic Planning Framework (cont.)
  • Generic competitive strategy vs. cooperarative
  • Competitive strategy assumes fighting against all
    competitors for the purpose of survival and
  • Cooperarative strategy plans for working together
    with specific competitors to gain advantage
    against other competitors

Generic Competitive Strategies
  • Defensive strategies takes place in the firms
    own current market position as a defense against
    possible attack by a rival
  • Raise structural barriers
  • Lower the inducement for attack
  • Offensive strategy usually takes place in an
    established competitors market
  • Frontal Assault attacker must have superior
    resources and willingness to persevere
  • Flanking Maneuver attack a part of the market
    where the competitor is weak

Generic Cooperative Strategies
  • Collusion
  • Active cooperation of firms within an industry
    to reduce output and increase prices in order to
    get around the normal economic law of supply and
    demand (illegal)
  • Strategic Alliance
  • Partnership of two or more corporations or
    business units to achieve strategically
    significant objectives that are mutually

Generic Cooperative Strategies (cont.)
  • Joint Venture
  • A way to temporarily combine the different
    strengths of partners to achieve an outcome of
    value to both
  • Value-Chain Partnership
  • A strong and close alliance in which one company
    or unit forms a long-term arrangement with a key
    supplier or distributor for mutual advantage

Svioklas Strategy
  • What is the right organizational structure?
  • Existing company structures designed to sustain
    existing marketplace model
  • Companies usually need to realign their
    structures to
  • Break functional silos
  • Meet different business needs
  • What is the companys digital business strategy?
  • What is the right value proposition for a new
    business model?
  • EC ventures dont fit neatly into established
    business categories
  • Traditional strategies probably wont fly either

Svioklas Strategy (cont.)
  • What is the correct technology platform?
  • Companies succeed online only with IT designed
    for a digital economy
  • EC technology must integrate seamlessly with
  • Customer call center
  • Billing
  • Shipping systems
  • What is the best capital structure?
  • Capital markets tend to reward innovative capital
  • They are buying the future, not the past
  • Very risky due to overvaluation

Mougayars Approach
  • What questions should a strategic plan answer?
  • How is Electronic Commerce going to change our
  • How do we uncover new types of business
  • How can we take advantage of new electronic
    linkages with customers and trading partners?

Mougayars Approach (cont.)
  • Will intermediaries be eliminated in the process?
    Or do we become intermediaries ourselves?
  • How do we bring more buyers together
    electronically (and keep them there)?
  • How do we change the nature of our products and
  • Why is the Internet affecting other companies
    more than ours?
  • How do we manage and measure the evolution of our

Wares Approach
  • Ware et al.s seven-step model e-strategy asks
    the following basic questions
  • Where are you along the continuum of possible EC
  • Where do you want to go?
  • How are you going to get there?

Wares Approach (cont.)
  • Seven-step model e-strategy
  • Step 1 create a map of scenarios for aligning
    business strategy and Internet initiatives in the
  • Step 2 communicate a vision from top management
    to drive Internet initiatives
  • Step 3 identify and transform key value
    constellations (specifically core practices and

Wares Approach (cont.)
  • Seven-step model e-strategy (cont.)
  • Step 4 develop portfolio of EC initiatives the
    company wants to pursue
  • Step 5 develop year-by-year objectives and plans
    for chosen initiatives
  • Step 6 implement the change
  • Step 7 monitor the overall plan, learn lessons,
    adjust, improve

Strategic E-Breakout Methodology
  • Kettinger and Hackbarth Methodology
  • Diagnosis stage
  • Gathers information about strengths, weaknesses,
    opportunities, and threats
  • Asses company and industry processes
  • Benchmarks e-business technologies
  • Initiation stage
  • Envisions potential strategic change
  • Confirms top management support
  • Determines project schedule

Kettinger and Hackbarth Methodology
  • E-breakout stage
  • Formulates an
  • e-business strategy with objective of breaking
    out of the box
  • Using e-business technology to transform
    processes and people
  • To better compete in dynamic global marketplace
  • Transition stage
  • Recognizes reality that e-breakout may not be
    immediately obtainable because of a companys
    unwillingness to change
  • Serves as a gap strategy that allows incremental
    steps to the e-breakout strategy

Issues in Strategy Formulation
  • EC strategies in small businesses
  • Senior managers tend to
  • Know the whole spectrum of business
  • Possess knowledge and authority to lead EC venture

Issues in Strategy Formulation (cont.)
  • How to handle channel conflicts
  • Let established old-economy-type dealers handle
    e-business fulfillment
  • Sell some products only online
  • Help your intermediaries (e.g., build portals)
  • Sell online and off-line
  • Do not sell online

Issues in Strategy Formulation (cont.)
  • How to handle conflict between off-line and
    online businesses in a click-and-mortar situation
  • Clear support of top management
  • Use of innovative processes that support
  • Clear strategy of what and how

Issues in Strategy Formulation (cont.)
  • Pricing strategy
  • Setting prices lower than off-line business may
    lead to internal conflict
  • Setting prices at the same level may hurt

Issues in Strategy Formulation (cont.)
  • Where to compete
  • Current position
  • Backward or forward in the supply chain
  • Move horizontally to new businesses
  • Play different roles
  • Infomediary
  • Community creator
  • Content provider
  • Portal builder
  • Aggregator

Issues in Strategy Formulation (cont.)
  • Should you get financing from big venture capital
  • VC financing causes loss of control over business
  • Benefit access to various VC experts and get the
    cash you need
  • Should you join an exchange?
  • Several benefits
  • Many costs and limitations
  • Decide earlyexchange may provide sell-side or
    buy-side infrastructure
  • Which exchange to join?

Implementation EC Plan
  • Starts with organizing a project team
  • Undertake a pilot project (help discover problems
  • Implementing EC
  • Redesigning existing business processes
  • Back-end processes must be automated as much as
  • Company must set up workflow applications by
    integrating EC into existing accounting and
    financial back-ends

Evaluating Outsourcing
  • Factors to consider
  • Ease of configuration and setup
  • Database and scripting support
  • Payment mechanism
  • Sample storefronts
  • Workflow management
  • Documented database support
  • Integration into existing accounting and
    financial back ends
  • Which services to outsource

Issues in Strategy Implementation
  • Partners strategy
  • Many potential partners, may need several
  • Companies that make B2B e-marketplaces consider
  • Logistics
  • Technology
  • E-payment partners
  • How to coordinate B2B and B2C
  • Selling direct is creating a B2C business
  • Coordination between the two can be done in
    different ways

Strategy and Project Assessment
  • Need for assessment
  • Find out if EC project delivers what it was
    supposed to deliver
  • Adjust plans if necessary
  • Determine if EC project is still viable
  • Reassess initial strategy in order to learn from
    mistakes and improve future planning
  • Identify failing projects as soon as possible and
    determine reasons for failure

Strategy and Project Assessment (cont.)
  • Measuring results watch for
  • Goals may be unrealistic
  • Web server was inadequate to handle demand
  • Expected cost savings were now realized
  • Exploding application requests from various
    functional areas in the company may follow
  • Review requirements and design documents
  • Develop thorough checklist
  • Pose a set of questions to assess impact of EC

Strategy and Project Assessment (cont.)
  • Finalization and adjustments
  • Actual ROI can be computed and compared to the
    projected one
  • If sales expectations were not met, review
    marketing efforts
  • Web assessment based on collected information
  • Corrective steps might be required
  • Product offerings to pricing strategy
  • Web promotion to review software vendors

EC Metrics
  • Metrics include benchmarks in different areas
    related to EC implementation and strategy
  • Define and refine business models
  • Communicate strategy
  • Track performance
  • Increase accountability
  • Align objectives of individuals, departments, and

EC Metrics (cont.)
  • Balanced scorecardmanagers focus on short-term
    financial results and
  • Financeincluding both short- and long-term
  • Customershow the customers view companies
  • Internal business processfinding areas in which
    to excel
  • Learning and growthsustainability to change and

EC Metrics (cont.)
  • Scorecard approach to ECseven sets of metrics
  • Financial
  • Competitive leadership
  • Marketing
  • Technology
  • Service
  • Internet site
  • Brand

EC Metrics (cont.)
  • Performance dashcard
  • Divided into 5 desired outcomes and 5
    corresponding metrics
  • Metrics are mapped with leading and lagging
    indicators of performance, leading to calculated
  • Strategies are then evaluated and reformulated

EC Failures and Lessons Learned
  • E-Tailing failures
  • Lack of funding
  • Incorrect revenue model
  • Exchange failures
  • Revenue growth too slow
  • Need to move to new business model
  • EC initiative failures
  • Other failures

Table 16-3Critical Success Factors for EC
12 Truths About How the Internet Really Works
  • Internet not as disruptive to business as we
  • If it doesnt make cents, it doesnt make sense
  • Time favors incumbents
  • Making a market is harder than it looks
  • There is no such thing as Internet time
  • Branding is not a strategy

12 Truths About How the Internet Really Works
  • Entrepreneurship cannot be systematized
  • Investors are not your customers
  • Internet still changes everything
  • Internet changes your job
  • Distinction between Internet companies and
    non-Internet companies is fading fast
  • Real wealth creation is yet to come

Managerial Issues
  • Considering the strategic value of EC
  • Considering the benefits and risks
  • Integration is critical
  • Metrics are beneficial
  • Pilot projects are useful
  • Implementing policies and strategies must be
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