Module 9: E-business Planning2 Agenda E-business development step-by-step E-business strategy Implementation Planning Regional Training Workshop for Enterprise Support Agencies to Promote E-business for SMEs in the Greater Mekong Subregion (GMS), 26-28 June 2006, Bangkok 3 E-business development step-by-step Planning Implementation Operation Regional Training Workshop for Enterprise Support Agencies to Promote E-business for SMEs in the Greater Mekong Subregion (GMS), 26-28 June 2006, Bangkok 26-28 June 2006.Operation STEP 3 . Bangkok .Implementation STEP 2 ± Implementation plan STEP 1 ± e-Business strategy Operation Implementation Planning Regional Training Workshop for Enterprise Support Agencies to Promote E-business for SMEs in the Greater Mekong Subregion (GMS).4 E-business development step-by-step What are the steps to success ? STEP 4 . 5 E-Business Strategy Fundamental questions «. 26-28 June 2006.. Bangkok «.and answers. Implementation plan E-business strategy . How to develop ebusiness ? What type of ebusiness? Why you want to develop that type of e-business ? Regional Training Workshop for Enterprise Support Agencies to Promote E-business for SMEs in the Greater Mekong Subregion (GMS). 26-28 June 2006.6 E-Business strategy What is strategy ? Competition Inequalities Now Environment $$$ Family Future Regional Training Workshop for Enterprise Support Agencies to Promote E-business for SMEs in the Greater Mekong Subregion (GMS). Bangkok . Assess your current situation (internal/external) 3. Bangkok . 26-28 June 2006. Propose you future situation 2.7 E-Business strategy Now Future $$$ Environment 1. Choose your strategy Regional Training Workshop for Enterprise Support Agencies to Promote E-business for SMEs in the Greater Mekong Subregion (GMS). 26-28 June 2006.8 E-Business strategy Propose you future situation Should be specific (time and figures) Profit oriented ³Increase revenue by 30% in 2 years´ Market ³Increase market share by 50% in 1 year´ Cost oriented ³Reduce cost by 20% in 1 year´ Efficiency Client oriented ³Increase client satisfaction by 50% in 2 years´ Improve customer services Regional Training Workshop for Enterprise Support Agencies to Promote E-business for SMEs in the Greater Mekong Subregion (GMS). Bangkok . Bangkok .9 E-Business strategy Assess your current situation Internal factors Strengths Weaknesses External factors Opportunities Threats Regional Training Workshop for Enterprise Support Agencies to Promote E-business for SMEs in the Greater Mekong Subregion (GMS). 26-28 June 2006. 26-28 June 2006.10 E-Business strategy To conduct the SWOT Analysis you should consider: What is your business sector? Who are the customers? What are the current practices of selling and buying? Who are the major competitors? (How intense is the competition?) What e-strategies are used. by whom? What are the major opportunities and threats? What are the existing and potential partnerships for developing e-Business? Regional Training Workshop for Enterprise Support Agencies to Promote E-business for SMEs in the Greater Mekong Subregion (GMS). Bangkok . Bangkok . 26-28 June 2006.11 E-Business strategy SWOT Analysis Internal factors Strengths External factors Original product Opportunities Popular product External market High quality New trend Weaknesses B2B market places Lack of IT expertise Threats No WEB presence Competitors Regional Training Workshop for Enterprise Support Agencies to Promote E-business for SMEs in the Greater Mekong Subregion (GMS). Bangkok . 26-28 June 2006.12 SWOT Diagram INTERNAL FACTORS EXTERNAL FACTORS Opportunities (O) External market New trend B2B market places Strengths (S) Original product Popular product High quality SO Strategies Generate strategies here that use strengths to take advantages of opportunities ST Strategies Generate strategies here that use strengths to avoid threats Weaknesses (W) Lack of IT expertise No WEB presence WO Strategies Generate strategies here that take advantage of opportunities by overcoming weaknesses WT Strategies Generate strategies here that minimize weaknesses and avoid threats Threats (T) Competitors Regional Training Workshop for Enterprise Support Agencies to Promote E-business for SMEs in the Greater Mekong Subregion (GMS). 13 Issues in e-Business Strategy To be a first mover or a follower? Disadvantages Advantages Cost of developing initiative is usually very high Chance to capture large markets Chance of failure is high Establishing a brand System may be obsolete as name compared to second wave arrivals Exclusive strategic alliances No support services are available at the beginning Regional Training Workshop for Enterprise Support Agencies to Promote E-business for SMEs in the Greater Mekong Subregion (GMS). Bangkok . 26-28 June 2006. 14 Issues in e-Business Strategy E-Business Awareness / Owner commitment Senior managers tend to: Know the whole spectrum of business Possess knowledge and authority to lead the e-business adoption Regional Training Workshop for Enterprise Support Agencies to Promote E-business for SMEs in the Greater Mekong Subregion (GMS). Bangkok . 26-28 June 2006. 15 Issues in e-Business Strategy Should you join an e-Business Portal? Several benefits Costs and limitations E-Marketing sell-side and buy-side infrastructure Which Portal to join? Regional Training Workshop for Enterprise Support Agencies to Promote E-business for SMEs in the Greater Mekong Subregion (GMS). 26-28 June 2006. Bangkok . Use ISP to host website Regional Training Workshop for Enterprise Support Agencies to Promote E-business for SMEs in the Greater Mekong Subregion (GMS). B2B e-business 2. 26-28 June 2006. Bangkok . Develop own website and joint an B2B Portal 4.16 E-Business strategy 1. Target external market 3. Bangkok .17 E-Business strategy How to know if the strategy will achieve the proposed result? ³Increase revenue by 30% in 2 years´ Regional Training Workshop for Enterprise Support Agencies to Promote E-business for SMEs in the Greater Mekong Subregion (GMS). 26-28 June 2006. 18 Business Case Business case is used to: Provide justification for investments Provides bridge between plan and the execution Clarifies how the organization will use resources to accomplish the e-strategy Regional Training Workshop for Enterprise Support Agencies to Promote E-business for SMEs in the Greater Mekong Subregion (GMS). 26-28 June 2006. Bangkok . Bangkok .19 Cost-Benefit and Risk Analysis 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 Costs Implementation and operation costs Recover the investment Should be able to recover the investment in up to 3 years Regional Training Workshop for Enterprise Support Agencies to Promote E-business for SMEs in the Greater Mekong Subregion (GMS). 26-28 June 2006. 20 E-Business Strategy Outputs: Where you want to be in the future Why e-business What type of e-business (Estimated Scope) Business case Estimated Time Estimated Cost Regional Training Workshop for Enterprise Support Agencies to Promote E-business for SMEs in the Greater Mekong Subregion (GMS). 26-28 June 2006. Bangkok . 26-28 June 2006. Bangkok .21 Implementation planning Start Estimated scope Estimated time Estimated cost End Planned Activities Planned schedule Human resources Planned procurement Planned budget Manage Risks How to implement e-business Regional Training Workshop for Enterprise Support Agencies to Promote E-business for SMEs in the Greater Mekong Subregion (GMS). Bangkok . 26-28 June 2006.22 Implementation planning Refine Scope Break the outputs in small pieces (WBS) Identify Activities Identify Resources Develop Schedule Plan procurement Plan Budget Manage Risks Project Plan Regional Training Workshop for Enterprise Support Agencies to Promote E-business for SMEs in the Greater Mekong Subregion (GMS). etc Regional Training Workshop for Enterprise Support Agencies to Promote E-business for SMEs in the Greater Mekong Subregion (GMS). the company itself. 26-28 June 2006. 2. Bangkok . 3. history Tax and Shipping: calculated before purchase? Payment options: credit cards. Try to get the details Building an Order: shopping cart size. purchase orders Priorities 1. Must have Nice to have Maybe in the future These priorities are also influenced by budget. and contact information.23 Refining Scope Example: One initial page with the basic information regarding the company and links to other pages with further information on its products. development time. Bangkok . 26-28 June 2006.24 Work Breakdown Structure (WBS) e-business e-business web site Off-line infrastructure Web site layout Web site Content Web service infrastructure Internal capacity on e-business operation Internal capacity on communications with foreign clients Web site text ready Product µs images ready Network ready Web server ready Intermal capacity on maintenance of web content Intermal capacity on maintenance of web service Hardware installed Webserver installed Regional Training Workshop for Enterprise Support Agencies to Promote E-business for SMEs in the Greater Mekong Subregion (GMS). Bangkok . 26-28 June 2006.Install software for content management .Install Internet access .Install web server (Hardware) .Develop internal capacity on maintenance of web content .Develop internal capacity to deal with foreign clients Regional Training Workshop for Enterprise Support Agencies to Promote E-business for SMEs in the Greater Mekong Subregion (GMS).Process the images to post in the web site .25 Identify Activities Outcomes Web site layout Web site text ready Product¶s images ready Network ready Hardware installed Web server installed Internal capacity on maintenance of web content Internal capacity on maintenance of web service Internal capacity on communications with foreign clients Activities .Develop templates for communications with foreign clients .Develop web site layout .Develop content of web site .Develop internal capacity on maintenance of web service .Install web server software .Obtain images of green cooperative¶s products .Develop procedures for communications with foreign clients . 1 Internal staff ± 2 hours per day. 26-28 June 2006. cooperative¶s history.Install web server software .Install Internet access . for up to 3 months .Process the images to post in the web site .External .Obtain images of green cooperative¶s products .Web design .External .Install software for content management Regional Training Workshop for Enterprise Support Agencies to Promote E-business for SMEs in the Greater Mekong Subregion (GMS).Hardware installation .External .Develop content of web site Resources .English language.Web server installation and configuration .External Required skills .Install web server (Hardware) . products and services.26 Identify Resources Tasks .External .Web design .External .Data Network .Develop web site layout . Bangkok . .Photo shooting .1 Internal staff .Content management configuration . 27 Develop Schedule # Activity Predecess or Months 1 1 2 3 4 5 6 7 8 Develop content of web site Obtain images of green cooperative¶s products Process the images to post in the web site Develop web site layout Install Internet access Install web server Install web server software Install software for content management 6 6 2 2 3 4 5 6 7 8 9 10 11 12 Regional Training Workshop for Enterprise Support Agencies to Promote E-business for SMEs in the Greater Mekong Subregion (GMS). Bangkok . 26-28 June 2006. It includes things such as current technologies and possible companies to contract. To plan the procurement you should know basically what to purchase and when to purchase Regional Training Workshop for Enterprise Support Agencies to Promote E-business for SMEs in the Greater Mekong Subregion (GMS).28 Procurement Plan Conduct your own research to be prepared to purchase. Bangkok . 26-28 June 2006. Bangkok . 26-28 June 2006.29 Budget Plan Add costs of internal and external resources Estimate the monthly expenditure Regional Training Workshop for Enterprise Support Agencies to Promote E-business for SMEs in the Greater Mekong Subregion (GMS). activities. schedule. e-market Portal. Bangkok . budget) Mitigate Reduce impact Reduce probability Regional Training Workshop for Enterprise Support Agencies to Promote E-business for SMEs in the Greater Mekong Subregion (GMS). Web developers Financial What to do? Avoid Revise planning (scope. 26-28 June 2006.30 Manage Risk Identify risks ISP. Make sure that the project is implemented according to the plan but also conduct the on-going planning and update the project plan to reflect the changes. It is a good practice to keep the baselines regarding time (initial schedule). It describes how the project will be implemented and it should be used is a guidding tool. cost (Budget plan). Regional Training Workshop for Enterprise Support Agencies to Promote E-business for SMEs in the Greater Mekong Subregion (GMS). They will be useful tools to monitoring the implementation of the project. and scope (Scope statement).31 Project Plan The project plan is the compilation of all planning documents developed. Bangkok . 26-28 June 2006. Should not be considered a static document. 32 Summary Planning. 26-28 June 2006. implementing and operating Planning = strategy + implementation plan Strategy = Future. choices Strategy will reach the target? Business case Implementation plan Scope Activities Resources Schedule Procurement Risks Project Plan Regional Training Workshop for Enterprise Support Agencies to Promote E-business for SMEs in the Greater Mekong Subregion (GMS). Bangkok . now (internal/external). 26-28 June 2006.33 Conclusion Q&A Regional Training Workshop for Enterprise Support Agencies to Promote E-business for SMEs in the Greater Mekong Subregion (GMS). Bangkok .