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e-Business 2.0: Roadmap for Success

Book Description

Revolutions begin with attacks on the language. Today's managers are bombarded with an alphabet soup of technology acronyms such as CRM, ERP, and SCM. Managers must manage in the fog of this technology revolution. Kalakota and Robinson's book provides a lens for managers who want to understand the terminology and take action--to grasp the opportunities or defend against the invading virtual competitors. When the history of e-business is written--perhaps sooner than we think--this book will go down as a management landmark that helped clear the fog of mumbo jumbo and provided a beacon through which managers could chart their course.
--Michael Quinn, eStrategy Director, B2B Commerce Ltd.

To survive and succeed in today's complex business world, all companies--from established industry leaders to feisty upstarts--must develop a strategy that allows them to take maximum advantage of the latest trends in technology. Successful companies have implemented focused e-business strategies to build cutting-edge enterprises that serve and retain customers, manage suppliers, and integrate selling chains better than ever before. Others, unfortunately, are lured into ill-fated ventures by the ever-changing roster of buzzwords, fads and analogies.

A timely follow-up to the best-seller on this crucial topic, e-Business 2.0 reveals how managers are rewiring the enterprise to take maximum advantage of e-business. Ravi Kalakota and Marcia Robinson present an innovative application framework that guides the migration from a traditional business model to an e-business model. Drawing on their extensive personal experience working with leading businesses, they provide a clear picture of the benefits and challenges that e-business companies face and identify the fundamental design principles for building a successful e-business blueprint.

This new edition incorporates the latest strategies and techniques gained from the experiences of the first generation of e-businesses. In addition to updated information on application framework design, the book now features more detail on strategy and e-business execution. e-Business 2.0 shows how e-commerce has evolved into e-business and identifies the 20 key e-business trends that are shaping today's economy. It then addresses core application frameworks--customer relationship management, selling chain management, enterprise resource planning, supply chain management, e-procurement, and business intelligence--and shows how each forms the foundation of an e-business strategy.


Table of Contents

  1. Copyright
    1. Dedication
  2. Foreword
    1. New Business Models and the Creation of Wealth
  3. Preface
    1. What This Book Is About
      1. What Makes This Book Different
      2. Who Should Read This Book
      3. How This Book Is Organized
    2. Acknowledgments
  4. 1. Moving from e-Commerce to e-Business
    1. What to Expect
    2. Are You Ready?
    3. Linking Today's Business with Tomorrow's Technology
    4. Defining e-Business: Structural Transformation
      1. High Transformation Stakes
      2. Value Chain Disaggregation and Reaggregation
      3. The Road Ahead: Steps to a New Beginning
    5. Challenging Traditional Definitions of Value
      1. Changing the Notion of Value: e-Commerce
      2. Learning about Value Innovation: The Book Retailing Industry
      3. Creating New Experiences: The Case of Microsoft
    6. Engineering the End-to-End Value Stream: e-Business Webs
    7. Harvesting the Partnerships: e-Business Core Competencies
    8. Creating the New Technoenterprise: Integrate, Integrate, Integrate
      1. Are You Ready for e-Business Integration?
      2. The New Priority: e-Business Execution Framework
    9. Needed: A New Generation of e-Business Leaders
    10. Memo to the CEO
    11. Endnotes
  5. 2. Spotting e-Business Trends
    1. What to Expect
    2. Trends Driving e-Business
    3. Customer-Oriented Trends
      1. Faster Service: For the Customer, Time Is Money
      2. Self-Service: Empowered Customers
      3. More Product Choices: More Personalization
      4. Integrated Solutions, Not Piecemeal Products
    4. e-Service Trends
      1. Integrated Sales and Service: Customization and Integration
      2. Seamless Support: Consistent and Reliable Customer Service
      3. Flexible Fulfillment and Convenient Service Delivery
      4. Increased Process Visibility
    5. Organizational Trends
      1. Outsourcing Management: Flatten the Organization
      2. Contract Manufacturing: Become Brand Intensive
      3. Virtual Distribution: Become Customer-Centric
    6. Employee Megatrends
      1. Hiring the Best and Brightest
      2. Keeping Talented Employees
    7. Enterprise Technology Trends
      1. Integrated Enterprise Applications: Connect the Corporation
      2. Multichannel Integration: Look at the Big Picture
      3. Middleware: Support the Integration Mandate
    8. General Technology Trends
      1. Wireless Web Applications: m-Commerce
      2. Handheld Computing and Information Appliances
      3. Infrastructure Convergence: Voice, Data, and Video
      4. Application Service Providers (ASPs): Software as Rentable Services
    9. What These 20 Trends Have in Common
    10. Memo to the CEO
    11. Endnotes
  6. 3. Digitizing the Business: e-Business Patterns
    1. What to Expect
    2. e-Business Patterns: The Structural Foundation
      1. Going Digital
      2. Analyzing the Environment
      3. Focusing on the Whole Picture
    3. The e-Channel Pattern
      1. Transaction Enhancement
      2. e-Channel Compression
      3. e-Channel Expansion
      4. e-Channel Innovation
    4. The Click-and-Brick Pattern
      1. Why the Click-and-Brick Pattern?
      2. A C&B Example: Webvan
      3. Management Challenges
    5. The e-Portal Pattern
      1. Eyeball Aggregaters, or Superportals
      2. Auction Portals
      3. Megatransaction Portals
    6. The e-Market Maker Pattern
    7. The Pure-E "Digital Products" Pattern
      1. High-Quality, High-Speed Content to Consumers: Digital Music
      2. New Platforms for Digital-Media Delivery
      3. New Infrastructure Services for Digital-Content Delivery
    8. Memo to the CEO
    9. Endnotes
  7. 4. Thinking e-Business Design: More than Technology
    1. What to Expect
    2. The Race to Create Novel e-Business Designs
    3. Step 1: Self-Diagnosis
    4. Step 2: Reverse the Value Chain
    5. Step 3: Choose a Focus
      1. Service Excellence
      2. Operational Excellence
      3. Continuous-Innovation Excellence
    6. Step 4: Execute Flawlessly
      1. Case Study: Service Excellence at American Express
        1. Amex Business Overview
        2. Service Strategy Shall Lead the Way
        3. Service Excellence and Application Infrastructure
      2. Case Study: Operational Excellence at Dell Computer
        1. Company Overview
        2. Build-to-Order e-Business Design
        3. Dell's Build-to-Order Operation
        4. Operational Excellence and Application Infrastructure
      3. Case Study: Continuous Innovation at Cisco Systems
        1. Company Overview
        2. Exponential Growth: Playing the Acquisitions Game
        3. Continuous Innovation via Acquisitions
        4. Continuous-Innovation Excellence and Application Infrastructure
    7. Lessons from e-Business Design
    8. Memo to the CEO
    9. Endnotes
  8. 5. Constructing the e-Business Architecture: Enterprise Apps
    1. What to Expect
    2. Trends Driving e-Business Architecture
      1. New Customer-Care Objectives
      2. New Competitive Conditions
      3. Fast-Moving Competitors
    3. Problems Caused by Lack of Integration
    4. The New Era of Cross-Functional Integrated Apps
      1. Customer Relationship Management (CRM) Apps: Charles Schwab
      2. Enterprise Resource Planning (ERP) Apps: Nestlé
      3. Supply Chain Management (SCM) Apps: Visteon
      4. Selling-Chain Management Apps: Whirlpool
      5. e-Procurement Systems Apps: CIBC
      6. Enterprise Application Integration (EAI) Apps: Nortel Networks
      7. Business Intelligence (BI), Decision Support Systems (DSS), and Knowledge Management (KM) Apps
    5. e-Business Architecture = Integrated Application Frameworks
    6. Memo to the CEO
    7. Endnotes
  9. 6. Integrating Processes to Build Relationships: Customer Relationship Management
    1. What to Expect
    2. The Basics of Customer Relationship Management
      1. Defining CRM
      2. Managing the Customer Life Cycle: The Three Phases of CRM
        1. Acquiring New Relationships
        2. Enhancing Existing Relationships
        3. Retaining Customer Relationships
    3. The New CRM Architecture: Organizing around the Customer
      1. Features of the New CRM Architecture
      2. Portfolio of CRM Process Competencies
        1. Sales: TeleSales, Cross-selling and Up-selling
        2. Marketing and Fulfillment
        3. Customer Service and Support
        4. Customer Billing
        5. Field Sales and Service
        6. Loyalty and Retention Programs
    4. Integration Requirements of the Next-Generation CRM Infrastructure
      1. Integration of Customer Content
      2. Integration of Customer Contact Information
      3. Integration of End-to-End Business Processes
      4. Integration of the Extended Enterprise: Interenterprise Customer Care
      5. Integration of Systems: Customer Application Integration
    5. Next-Generation CRM Trends
      1. The Multichannel Integrated Experience
      2. The Rise of the Call Center as a Multipurpose Customer Contact Point
      3. Listening Portals: Next-Generation CRM Capabilities
      4. CRM Portals, Sales Force ASPs, and Hosted Applications
    6. A Roadmap for Managers
      1. How to Build a CRM Infrastructure
      2. Anticipate Organizational Challenges
    7. Memo to the CEO
    8. Endnotes
  10. 7. Transforming Customer Contact into Revenue: Selling-Chain Management
    1. What to Expect
    2. The Basics of Selling-Chain Management
      1. Identifying the Problem: Disconnected Front-Office Systems
      2. Defining Selling-Chain Management
        1. Selling-Chain Application Framework Goals
        2. Integrated Selling Infrastructure
    3. Business Forces Driving the Need for Selling-Chain Management
      1. The Rise of the Self-Service Order
      2. The Excessive Cost of Presales Technical Support
      3. The Increasing Cost of Order Errors
      4. The Proliferation of Channels
      5. The Increasing Complexity of Products
      6. The Rise of Deregulation and Mergers and Acquisitions
    4. Technology Forces Driving the Need for Selling-Chain Management
      1. The Selling-Chain Application Continuum
      2. Problems with Existing Sales Force Automation (SFA)
      3. Limited Process Functionality
      4. Limited Sales Effectiveness
    5. The Universal Business Problem: Managing the Order Acquisition Process
    6. Elements of Selling-Chain Infrastructure
      1. Online Sales: Internet Relationship Management (IRM)
      2. Sales Configuration Systems
      3. Product Catalogs and Marketing Encyclopedias
      4. Pricing: Data Maintenance, Distribution, and Configuration
        1. Proposal and Quote Generation
        2. Sales Incentives and Commission Processing
    7. Case Studies in Selling-Chain Management
      1. Custom Foot: Transforming Shoe Sales with Technology
      2. Cisco and Selling-Chain Management
    8. Memo to the CEO
    9. Endnotes
  11. 8. Building the e-Business Backbone: Enterprise Resource Planning
    1. What to Expect
      1. Who Really Uses ERP Suites?
    2. The Basics of Enterprise Resource Planning
      1. The Evolution of ERP
        1. Wave 1: Manufacturing Integration (MRP)
        2. Wave 2: Enterprise Integration (ERP)
        3. Wave 3: Customer-Centric Integration (CRP)
        4. Wave 4: Interenterprise Integration (XRP)
      2. Benefits of ERP Suites
    3. ERP Decision = Enterprise Architecture Planning
      1. ERP Software Decision: Build versus Buy versus Rent
      2. The Capabilities of COTS ERP Solutions
    4. ERP Use in the Real World: Three Case Studies
      1. Microsoft
      2. Owens-Corning
        1. Colgate-Palmolive
    5. ERP Implementation: Catching the Bull by the Horns
      1. Roadmap to Rapid Implementations: The Accelerated ERP Approach
      2. Roadmap to New Leadership Skills
    6. ERP Architecture and Toolkit Evolution
      1. Hosted ASP Models: Hype versus Reality
      2. ERP Application Management and Maintenance: A Big Business
    7. Memo to the CEO
    8. Endnotes
  12. 9. Implementing Supply Chain Management and e-Fulfillment
    1. What to Expect
    2. The Basics of Supply Chain Management
      1. Defining SCM
      2. An e-Supply Chain in Action
      3. Supply Chain Investment Trends
    3. Internet-Enabled SCM
      1. Interenterprise Integration
      2. SCM Planning and Execution
        1. Supply Chain Planning
      3. Supply Chain Execution: e-Fulfillment
    4. e–Supply Chain Fusion
      1. Diagnosing Root Causes of Supply Chain Problems
      2. Fixing the Root Cause
    5. Management Issues in e–Supply Chain Fusion
      1. Determining the Right e–Supply Chain Structure
      2. Enabling Effective Differentiation Capabilities
      3. Facilitating Effective Order-Fulfillment Capabilities
      4. Determining the Right Infrastructure Capabilities
    6. The Continuing Evolution of e–Supply Chains
      1. Integrated Make-to-Stock: Starbucks
      2. Continuous Replenishment: The CVS Pharmacy– McKesson Demand Chain
      3. Build-to-Order: Intel, Solectron, and Ingram Micro
    7. A Roadmap for Managers
    8. Memo to the CEO
    9. Endnotes
  13. 10. Demystifying e-Procurement: Buy-Side, Sell-Side, Net Markets, and Trading Exchanges
    1. What to Expect
    2. Evolution of e-Procurement Models
      1. Pre-Internet Era: EDI Networks
      2. B2E: Purchasing and Requisitioning Applications
      3. Corporate Procurement Portals
      4. Trading Exchanges
        1. First Generation: Communities, Storefronts, and RFP/RFQ Facilitators
        2. Second Generation: Virtual Distributors and Auction Hubs
        3. Third Generation Trading: Collaboration Hubs
      5. Industry Consortiums: Joint-Venture Procurement Hubs
    3. Evolution of Procurement Processes
      1. Reducing Channel Fragmentation
      2. Hands-Free Procurement: Managed by Exception
    4. e-Procurement Infrastructure: Integrating Ordering, Fulfillment, and Payment
      1. Ordering: Self-Service Requisitioning
      2. Fulfillment: Order Management and Supplier Integration
      3. Payment: Invoice Management
    5. e-Procurement Analysis and Administration Applications
    6. Marketplace Enablers
      1. Ariba: Tools for Enabling Marketplaces
      2. FreeMarkets: Auction Enabler
    7. A Roadmap for e-Procurement Managers
      1. Step 1: Clarify Your Goals
      2. Step 2: Construct a Process Audit
      3. Step 3: Create a Business Case for e-Procurement
      4. Step 4: Develop a Supplier Integration Matrix
      5. Step 5: Select an e-Procurement Application
      6. Step 6: Remember: Integration Is Everything
      7. Step 7: Educate, Educate, Educate
    8. Memo to the CEO
    9. Endnotes
  14. 11. Business Intelligence: The Next Generation of Knowledge Management
    1. What to Expect
    2. Evolution of Knowledge Management (KM) Applications
      1. Wave 1: Group Memory Systems
      2. Wave 2: Corporate Intranets and Decision Support Portals
      3. Wave 3: Extranets and Interenterprise Portals
      4. Wave 4: e-Commerce and Click-Stream Analysis
        1. User Click-Stream Analysis
        2. e-Mail Management
        3. Knowledge Portals (KP)
      5. Wave 5: Business Intelligence
    3. Elements of Business Intelligence Applications
      1. Data Organization and Collection
      2. Analysis and Segmentation
      3. Real-Time Personalization
      4. Infrastructure for Broadcast, Retrieval, and Interaction
      5. Performance Monitoring and Measurement
    4. Business Intelligence Applications in the Real World
      1. BI in Telecommunications: Combating Customer Churn
      2. BI in Retail: Capturing and Reporting Sales Data
      3. BI in Healthcare: Employee Benefits Management
    5. Technical Elements of the Business Intelligence Framework
      1. Enabling Technologies: Online Analytical Processing (OLAP)
    6. Core Technologies: Data Warehousing
      1. How Data Warehousing Works
      2. Data Warehouse Components
    7. A Roadmap for Managers
    8. Memo to the CEO
    9. Endnotes
  15. 12. Developing the e-Business Design: Strategy Formulation
    1. What to Expect
    2. Moving Physical to Digital: The Case of OfficeMax
    3. Roadmap to Moving Your Company into e-Business
      1. e-Business Strategy Formulation
      2. The Process of e-Business Strategy Formulation
        1. Top-Down Analytical Planning
        2. Bottom-Up, "Just Do It" Planning
        3. Continuous Planning with Feedback
      3. Knowledge Building
        1. Who Are My Customers?
        2. How Are My Customers' Priorities Changing?
        3. Who Is My Target Customer?
        4. How Can I Add Value for My Target Customer?
        5. How Do I Become My Customer's First Choice?
        6. How Does My Product Reach the Customer?
        7. Do We Understand the Environment and Industry Trends?
        8. Do We Understand Technology Trends?
        9. What Are the Priorities in the Supply Chain?
        10. Who Are My Competitors?
      4. Capability Evaluation
        1. What Is My Objective?
        2. What is the Best Way to Structure Our e-Effort?
        3. What Internal Capabilities Do We Have Today?
        4. What Capabilities and Resources Do We Need to Speed Up Execution?
      5. e-Business Design
        1. Selecting an e-Business Design
        2. e-Business Design Refinement
        3. Clarify the Differentiation Levers
    4. Case Study of e-Business Design in Action: E*TRADE
      1. Customer Assumptions
      2. Customer Segments
      3. Customer Value
      4. Resources and Capabilities
      5. Product and Service Offerings
      6. Future Opportunities: Rethinking Organizational Structure
    5. Memo to the CEO
    6. Endnotes
  16. 13. Translating e-Business Strategy into Action: e-Blueprint Formulation
    1. What to Expect
    2. Setting the Stage for e-Blueprint Planning
      1. Clarifying the e-Blueprint Problem
      2. Focusing on e-Blueprints, Not Single Projects
      3. Beginning the e-Blueprint Journey
      4. To Patch or Not to Patch?
      5. Evaluating Your Company's e-Business Blueprint Process
    3. Basic Phases of e-Blueprint Planning
      1. e-Blueprint Creation: Defining the Blueprint in Your Company
        1. Step 1: Establish the Aim of the Overall e-Business Design
        2. Step 2: Establish the Scope of the Effort
        3. Step 3: Classify and Analyze the Application Frameworks
        4. Step 4: Prioritize What Needs to Get Done
        5. Step 5: For Each Application Framework, Design the Execution Plan
      2. e-Blueprint Facilitation: Making a Business Case for Action
        1. Who Develops the e-Business Case?
        2. Key Elements of an e-Business Case
        3. e-Business Business Case Checklist
    4. Communicate, Communicate, Communicate
    5. The Serious Business of e-Business Blueprint Planning
      1. The Problem of Leadership
      2. Why e-Business Initiatives Fail
    6. Memo to the CEO
    7. Endnotes
  17. 14. Mobilizing the Organization: Tactical Execution
    1. What to Expect
    2. Roadmap to Tactical Execution
      1. e-Business Tactical Execution
    3. Tactical e-Project Management
      1. Process Overview
        1. Define and Organize the Project
        2. Plan the Project
        3. Execution and Closedown
      2. The Intangibles: Continuous Project Communication
    4. e-Development Process
      1. Opportunity Generation: What Customer Pain Are We Solving?
      2. Solution Evaluation: How Can We Allievate the Customer Pain?
      3. Getting Detailed Requirements Right
      4. Setting Scope
      5. Garnering Resources: Mobilize, Mobilize, and Mobilize
      6. e-Process Redesign
      7. Web Development: Prototype Validation and Implementation
        1. Detailed Requirements Prototyping
        2. Detailed Architecture Design
        3. Application Development
        4. Quality Assurance and Testing
        5. Field Testing
        6. Release Management
      8. Managing Outsourced Web Development Projects
      9. Application Service Providers
    5. Infostructure Management
      1. Internet Data Centers
      2. Capacity Planning
      3. Scalability
      4. Availability
      5. Security and Risk Management
    6. Adoption Management
    7. Measurement for Learning and Improvement
    8. Memo to the CEO
    9. Endnotes