自考电子商务英语Unit3TextA.docVIP

Unit 3 Text AThe imperatives for e-business success (part I)V. Frick, A. LillThe rules of business in the new economy have changed and will continue to do so. However, garter analysts have assembled the top 10 imperatives from recent e-business experience. 1. Never plan further than 24 months out. While it is still imperative to have a business strategy directing overall activities, a five-year panning horizon typical of traditional strategic plans is no longer feasible. Largely because of changes in the business environment brought about by the Internet, the pace of business change has reached the point where no more than 24 months is reasonable for a plan. Beyond 24months, it is reasonable to assume that the business environment will be sufficiently different that a new strategy will be required. In addition, the speed with which strategies must be executed must increase. A strategy that requires more than 12 months to execute is also unlikely to succeed.2. Do not attempt to develop an e-business strategy independent of the full business strategy. Executives are pushed for the rapid development of an “e-business strategy” independent of the business unit (BU) business strategy. In many cases, this is driven by a desire for speedy reaction to the “new economy” and rapid introduction of e-business. There is an implicit assumption that developing a full business strategy is a cumbersome and time-consuming process, and therefore, to wait until a business strategy is developed would cause the e-business strategy to fail. In fact, the reverse is true. First business strategies can be developed in short periods of time. Second, an e-business initiative developed without understanding how it will affect existing distribution channels and the business in general can cause the business strategy to fail. For brick-and-mortar enterprises, e-business strategies created as distinct approaches to a “new economy” in isolation from the business strategy are counterproductive and almost certain to fail. 3. Use separate strategies according to industry, geography and culture. There is often internal pressure to create an enterprise wide e-business strategy. This approach is effective only in smaller enterprises that are focused on a single buying center. From business process re-engineering (BPR) and customer relationship management (CRM) , we have learned that the most effective business strategies are those that focus on a particular market segment. While an enterprise wide strategic technical architecture should be developed, business strategies should be developed for individual Bus that are focused on the clearly defined market segments. The market segmentation should take into account all factors that affect buyer behavior and needs. Such factors would include industry, geography and culture. Industry clearly has a major impact on buyer needs. Geography and culture can be closely related. While some aspects of geography impact cost and logistics, in some cases geography can be used as a surrogate for culture. Cultural differences will affect how buyers wish to interact with the e-business model. Even for buyers with similar demographics and needs, separate strategies may be necessary to account for the cultural differences that are responsible for different buyer behaviors.4. During analysis, give equal weight to the internal and external processes. There is a tendency for enterprises new to e-business to focus on the impact the Internet has on either internal or external processes. The tendency is reflected in the popular terms “business-to -business” (B2B) and “business-to consumer” (B2C). While B2B and B2C are generally treated as separate business models, they actually refer to the supply side and the demand side of the same value chain. When the term B2C is used, the focus is normally on the distribution channels and how a business will sell its products to end users. When the term B2B is used, even though external suppliers are involved, the focus tends to be on internal costs, particularly for procurement. An effective strategy should take into account how e-business can be used to improve internal operations and to create more effective external relations.5. Obtain total buy-in from the board. Obtaining buy-in from the board typically focuses on getting approval for the substantial cost involved. While that is certainly important, the understanding needed at the board level goes well beyond that. Introducing e-business often means significantly increasing the complexity of the business model. It may also mean establishing a market presence on the internet (B2C or B2B) where none previously existed. Implementing the new business model and establishing a new market presence may take a significant amount of time. The board needs to understand the time frames required and the metrics that will be used to measure progress toward the strategic objectives (which could involve metrics other than traditional financial measures such as earnings per share or return on investment).6. Deliberately execute alternatives to buy, spin off or transform business model. When preparing to establish an e-business presence, enterprises should explicitly consider alternative ways to attain the strategic objectives. In some cases, it may be desirable (for independence or financial reasons) to create an internal e-business unit and then spin off the unit as a separate legal entity. In other cases, there m