Chapter Twelve
Chapter Twelve
Developing the
e-Business Design:
Strategy Formulation

www.ebstrategy.
com
2 -
© e-Business Strategies,
Inc.
Introduction
Introduction
E-business requirement
–
Simultaneous melding of business strategy,
enterprise apps, and technology implementation
–
None by itself sufficient
Traditional corporations gullible of the “legacy
effect”
–
Refusal to change can mean stagnation and losing
ability to generate new value through innovation
e-Business not a silver bullet; simply another
technique for reinventing business
–
Intel

www.ebstrategy.
com

are and what the customer is looking for
–
Be conscious of own abilities and limitation
Includes
–
Knowledge building
–
Capability evaluation
–
e-Business design

www.ebstrategy.
com
5 -
© e-Business Strategies,
Inc.
The Process of e-Business Strategy
The Process of e-Business Strategy
Formulation
Formulation
Three approaches to e-business strategic plan
–
Top-down analytical planning
–
Bottom-up tactical planning
–
Continuous planning with feedback
Important question to ask
–
What result do I want?

Serves well under stable business conditions; e-
world is anything but stable
–
It’s single greatest problem: Separation of strategy
formulation and implementation
•
The never-seen-again strategic plan
•
The no-goals strategic plan
•
The no-feedback strategic plan

www.ebstrategy.
com
7 -
© e-Business Strategies,
Inc.
The Process of e-Business Strategy
The Process of e-Business Strategy
Formulation
Formulation
Bottom-Up, “Just Do It” Planning
–
Frontline force taking on new importance in today’s
environment with awareness of changes in customer needs
–
Organizations with hierarchical structures have few
mechanisms in place for ensuring insights of front-line staff
reach strategy makers
–