bs3912 week 3 1 managing e-business & high tech. (3) l last week »e-business reading: chaffey...
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BS3912 Week 3 1
Managing e-Business & High Tech. (3)
Last week» e-Business
Reading: Chaffey et al: E-Business and E-Commerce Management (2007) Ch.2
» Brain-storming assignment ideas
This Week – the challenges for managers(Chaffey, Chapter 10 – Change Management)» Identify the changes needed» Develop Outline Plan» Understand impacts on the organization structure
and on individuals within it
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eBusiness: The Challenges for Managers
Key Factors Scale of Change Planning & Prototyping HR Requirements Structures Managing HR Aspects of Change Culture Knowledge Management Risk Management
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Managing Risk
“What we anticipate seldom occurs: what we least expect generally happens.” (Disraeli (1880).
Endymion)
Prudent measures for a company entering eBusiness:» Anticipate necessary changes» By learning lessons from eBusiness Pioneers
– Applying Best Practice,– Adopting Risk Management
It’s possible to be Proactive and to Manage Change Successfully
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Think about impact of B2C introduction on
Marketing Manager
Warehouse Manager
IS Manager
Call-centre employee
HR Manager
(consider legitimate fears and hopes for each individual)
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Marketing Manager
Hopes » Potentially larger budget» Can use new channel to enhance existing ones
Fears» Need to become visible in the B2C channel
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Warehouse Manager
Hopes » More responsibility => more staff, equipment
Fears» Greater throughput gives pressure on buffer stock» Warehouse capacity under pressure» Capacity of supply-chain may be inadequate» Threat to just-in-time processes» Underresourced
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Information Services Manager
Hopes » Increased importance for IS» Experience of new tools and technologies» Justification for Business continuity location
Fears» More risk» Availability becomes critical 24*7
Also» Direct interaction with customers requires
understanding of user demographic
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Call Centre Employee
Hopes » New role of providing customer assistance» Job enrichment
Fears» Reduction of sales through Call Centre» Fear of redundancy» Perceived as overhead rather than revenue earner
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Human Resources Manager
Hopes » Training and development role enhanced» Good for the CV
Fears» May not have skills required to select e-Commerce
technical staff» Potential redundancies to manage in existing channel –
even unjustified fears of operations staff need managing» Resources may not keep up with added responsibility
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Challenge 1 – Scale: How Big?
Large or Small Scale Change(s)? (BPR versus BPI)
Caution in achieving change
Don’t go too far too fast!
Always take care you’re not just doing the wrong thing faster
Staged approach usually best (Davenport 1993)
What are these?
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Challenge 2 – Planning
First we must have a Specification of:» Objectives, strategy and tactics of proposed system» Clear definition of what the final processes should be
Next plan how to roll out the changes needed» Detailed system design – may involve prototypes» Enumeration of activities needed, and estimate of cost
(Work breakdown)» Resource allocation
– Elapsed time– Effort time (staffing × length of time used)– Critical path
Monitoring and Control – manage this as a project
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Prototyping
During prototyping – Prototype web pages only viewable by Company Staff
Key Stages: » analysis» design» development» test / review
Types: throwaway, evolutionary, incremental» Make sure you know which type you’re using
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Challenge 3 – HR Requirements
Staff Recruitment (skills needed)» Web Designer» Web Developer» Webmaster» Online Marketer» Project Manager
Staff Retention» Job Characteristics Model (Hackman & Oldman)
Outsourcing? » Search-engine optimization
Consultant
See Chaffey 2001 p.391 for some ideas on text for the advertisements (3rd edition assumes you know how to do it)
Don’t ignore the value of those who understand your company culture
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Challenge 4 – Company Structures
How do with manage the venture within the company?a. No formal structureb. Separate committeec. Separate business unitd. Separate operating company
The Hierarchy:» Of the venture itself –
Shallow structures may improve chance of success!» Of reporting to the original company
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Chaffey 2001, p.396
How do these map to points a-d on previous slide?
More detail 3rd edition p.480
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Challenge 5 – Managing the Human Aspects
Achieving Management Commitment
Achieving Staff Commitment
Changing the Corporate Culture
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Conclusions
There are many formulae for failure, few for success!
Best approach is to start with the absolute requirements of the new model, then» Work out what must be done to deliver them» You may not need to stir up unaffected areas
Define the parts of the current system that:» Have to change» Shouldn’t change» Needn’t change but would give benefit if they did
Decide on what should change, andPlan the work needed to achieve this
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Assignment 1: Due 9 May
Assignment takes the form of an initial business proposal for one of the following: » a start up e-business company, » introduction of a high-technology product or » introduction of e-business to an existing company
Register your choice to avoid duplication You will need to come up with a suitable innovation:
» Write enough to explain what is proposed» Analyse the opportunity, risks and capital requirement» May consult banks’ business plan pro-formas
Tests your ability to analyse the business-case, not the quality of the innovative idea itself
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Examples from Previous Years
Developments Tablet PCs in Fire prevention Restaurant ordering on-line Touch-screen kiosks Crop sprayer B2C Server consolidation Roadwork maps: on-line service
to minimize disruption & waste Document Management system
in Local Government Storage integration Analysis of Thos Cook on-line
commerce, with new proposal New info system for schools
Start Up Surgeons-Net: software to
assist hospital surgeons Customized T-shirts justifying
premium price Cricket equipment B2C Marine incident emergency
service B2C Online optician IBP Photo albums
New Services Homelink Library service Cross-border trading Contact Centre Bus pass printing Info terminal for enhancing
service in health-food store
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Assignment 2: Due 6 June 2011 You need to prepare and write a detailed plan for
deploying the change you proposed, into the same existing or start up e‑business company» Will include Critical Path Analysis
Assessment criteria concentrate on your understanding of the issues involved in managing high-technology ventures, and the logic and clarity of your analysis
If you are not around to hand in the assignment in person, please submit over the Learning Network, or make sure you use recorded delivery and that the package is postmarked on or before the due date
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Marking Scheme
Assignment 1(5 elements: equal weight) Executive Summary Introduction Market analysis and/or
SWOT Costings Analysis
Assignment 2 (5 elements: equal weight) Executive Summary Introduction and update to
part 1 Deployment planning Completeness of coverage Analysis