E Business Planning, Strategy & Management part 2

Summary

This video lecture introduces strategic management in e-business, focusing on the strategic process, internal analysis, and tools like SWOT and value chain analysis. It outlines various strategic process models, emphasizing the importance of understanding a company's strengths, weaknesses, opportunities, and threats. The lecture also discusses e-business capabilities, development stages, and strategic importance through models, providing a foundation for strategic decision-making in the digital era.

Takeaways

• 📈 Strategic process involves a series of decisions and actions aimed at achieving long-term goals through internal and external analysis.
• 🔍 SWOT analysis is introduced as a tool to identify an organization's strengths, weaknesses, opportunities, and threats.
• 🌐 The importance of analyzing both internal and external factors is highlighted, with tools like the value chain for internal analysis and PEST analysis for external factors.
• 📊 Various strategic process models are presented, including business strategic framework, corporate strategy model, and sequential marketing strategy model.
• 🏭 Internal analysis is crucial for understanding an organization's strengths and weaknesses, and for identifying resources and core competencies.
• 💡 E-business capabilities are discussed in terms of technological infrastructure, applications, and the necessary financial and human resources.
• 📈 Stage models are used to assess the maturity of a company's use of ICT in its processes, with examples given for e-commerce and buy-side e-commerce.
• 📊 Propensity analysis helps assess the current information system's capabilities and informs future strategy, with quadrants based on current and future strategic importance.
• 🔑 The value chain analysis is explained, focusing on how organizations can add value to their products or services through different activities.
• 🔄 Value Network and Value Shop models are introduced as alternatives to the value chain, suitable for different types of business operations.
• 🔍 The lecture concludes with questions for the viewer to consider, such as describing SWOT analysis and the stages of business development.

Q & A

What are the key elements of the strategic process?

The strategic process key elements include internal and external analysis. The internal analysis helps to understand the organization's strengths and weaknesses, while the external analysis looks at opportunities and threats.

What does SWOT analysis stand for?

SWOT analysis stands for Strengths, Weaknesses, Opportunities, and Threats. It is a tool used to help organizations analyze their internal resources and match them against the external environment.

What are the four strategies derived from a SWOT analysis?

The four strategies derived from a SWOT analysis are Strength-Opportunity Strategy, Weakness-Opportunity Strategy, Strength-Threat Strategy, and Weakness-Threat Strategy.

What is the purpose of the Value Chain analysis?

The purpose of the Value Chain analysis is to focus on configuring and coordinating resources on those activities that produce the product most efficiently.

What are the two main ways of adding value according to the Value Chain analysis?

The two main ways of adding value according to the Value Chain analysis are differentiating the product or service so that customers perceive added value, and reducing the cost of producing the product below that of competitors.

What are the primary activities in the Value Chain model?

The primary activities in the Value Chain model include Inbound Logistics, Operations, Outbound Logistics, Marketing and Sales, and Service.

What are the support activities in the Value Chain model?

The support activities in the Value Chain model include Procurement, Technology Development, Infrastructure, and Human Resource Management.

What is the significance of the stage model in observing eBusiness development?

The stage model is significant in observing eBusiness development as it helps review how advanced a company is in its use of information and communication technology resources to support its processes.

What are the stages of the e-commerce model described in the script?

The stages of the e-commerce model are Email Marketing, Brochure Websites, Interactive Sites, Online Ordering, Relationship Building, and Site Optimization.

What are the stages of the buy-side e-commerce model described in the script?

The stages of the buy-side e-commerce model are RW Suppliers, Stock Availability, Online Catalogs, Online Ordering, Integrated Databases, and Supply Chain Optimization.

What is the difference between Value Chain and Value Network models?

The Value Chain model is suitable for manufacturing businesses where value is added through a series of activities. The Value Network model is for firms that create value by creating networks to their customers or linking different types of customers.

Outlines

00:00

📈 Strategic Process and Analysis Models

This paragraph introduces the strategic process in e-business planning, which involves a series of decisions and actions aimed at achieving long-term goals. It emphasizes the importance of both internal and external analysis, forming the basis for SWOT analysis (Strengths, Weaknesses, Opportunities, and Threats). The paragraph also mentions other analytical tools such as the value chain for internal analysis and PEST analysis for external factors. Various strategic process models are briefly outlined, including a business strategic framework, corporate strategy model, and sequential marketing strategy model. The focus is on understanding an organization's competitive advantage through internal analysis and identifying resources and core competencies. The discussion also covers e-business capabilities, which involve the integration of technology, applications, infrastructure, and human resources to support business processes efficiently.

05:00

🌐 Stages of E-Business Development

The second paragraph delves into the stages of e-business development, starting with web presence and moving through e-commerce, integrated e-commerce, to full e-business pool integration. It discusses the transformation of organizational scope and strategy over these stages. The paragraph introduces the Proprietary Network application and its analysis, which assesses the current information system's capabilities and informs future strategy. It uses a quadrant analysis to categorize信息系统 based on current and future strategic importance. The SWAT analysis is also explained in detail, highlighting how it helps organizations align their internal strengths and weaknesses with external opportunities and threats. The paragraph concludes with a discussion on value chain analysis, focusing on how organizations can add value to their products or services through differentiation or cost leadership strategies.

10:03

🔍 Value Chain and Network Models

The final paragraph explores the value chain model in detail, explaining the primary and support activities that contribute to a firm's competitive advantage. It describes the functions of inbound logistics, operations, outbound logistics, marketing and sales, and service activities. The paragraph also introduces alternative value models for non-manufacturing businesses, such as the value network model, which focuses on creating networks to connect different types of customers, and the value shop model, aimed at firms offering expertise to solve problems. The support activities for these models are also discussed, including network promotion, contact management, service provisioning, and network infrastructure. The lecture concludes with a set of questions to reinforce the key concepts covered in the video.

Keywords

💡Strategic Process

The strategic process refers to a series of decisions and actions that an organization takes to achieve long-term goals. It involves careful analysis of both internal and external factors to formulate strategies. In the video, the strategic process is mentioned as a key element that includes internal and external analysis, which forms the basis for SWOT analysis. The process is critical for developing a strategic plan that aligns with the organization's mission and objectives.

💡SWOT Analysis

SWOT Analysis is a strategic planning tool used to identify a company's Strengths, Weaknesses, Opportunities, and Threats. It helps in matching the company's internal resources with the external environment. In the video, SWOT is introduced as a simple yet powerful tool for analyzing an organization's internal resources and aligning them with external opportunities and threats, which is crucial for strategic decision-making.

💡Internal Analysis

Internal analysis involves examining the organization's internal factors such as resources, competencies, and core competencies. It aids in understanding the organization's strengths and weaknesses. The video mentions that internal analysis helps to evaluate the effectiveness of value-adding activities and the performance of products or services, which is essential for strategic planning.

💡External Analysis

External analysis looks at factors outside the organization that could affect its operations, such as market trends, competition, and regulatory changes. The video briefly mentions PEST analysis as a part of external analysis, which is used to evaluate political, economic, social, and technological factors that can influence business strategy.

💡Value Chain Analysis

Value Chain Analysis is a business strategy model that divides a company into its product or service activities to identify the primary and support activities that create value. The video explains that this analysis helps focus on configuring and coordinating resources on activities that produce products most efficiently, which is crucial for competitive advantage.

💡E-Business Capabilities

E-Business capabilities refer to the degree to which a company utilizes appropriate technological and application infrastructures, along with financial and human resources, to support its operations. The video emphasizes that these capabilities are essential for e-business, as they must be harnessed together to give efficient business processes.

💡Stage Models

Stage models are frameworks that help organizations assess their current state of development and plan for future growth. The video provides examples of stage models for e-commerce development, illustrating how companies can progress from basic web presence to fully integrated e-business.

💡Strategic Formulation

Strategic formulation is the process of developing strategies based on the analysis of internal and external factors. It involves setting objectives and choosing the best course of action to achieve them. The video discusses this concept as part of the strategic process, highlighting its importance in aligning organizational goals with strategic actions.

💡Resource Allocation

Resource allocation involves distributing a company's resources to different parts of the business to achieve strategic objectives. The video touches on this concept in the context of the sequential marketing strategy model, where resources are allocated after strategic formulation to support the implementation of strategies.

💡Competitive Advantage

Competitive advantage refers to the unique attributes that allow a company to outperform its competitors in the market. The video mentions that internal analysis helps identify resources and competencies that can be exploited to achieve a competitive advantage, which is a central goal of strategic management.

💡Value Network Model

The Value Network Model is a business strategy model that focuses on creating value by creating networks for customers or linking different types of customers. The video explains that this model is suitable for firms whose main activities involve creating networks, such as retail banks, and it has different structures of support activities compared to the traditional value chain model.

Highlights

Introduction to strategic process, internal analysis, process analysis, SWOT analysis, and other analysis tools in business planning.

Explanation of the strategic process as a series of decisions and actions to achieve long-term aims.

Emphasis on the importance of both internal and external analysis in the strategic process.

SWOT analysis is introduced as a framework for identifying Strengths, Weaknesses, Opportunities, and Threats.

Value chain analysis for internal factors and PEST analysis for external factors are mentioned.

Overview of alternative strategic process models, including business strategic framework, corporate strategy model, and sequential marketing strategy model.

Discussion on internal analysis helping managers understand organizational strengths and weaknesses.

Importance of identifying resources, competencies, and core competencies for competitive advantage.

Evaluation of organizational effectiveness and performance of products or services.

Resource analysis in e-business, focusing on technological and application infrastructures.

Capabilities as the ability to use resources effectively to support value creation.

Stage models for observing e-Business development, with examples of salite e-commerce and buy-side e-commerce.

Explanation of the two-dimensional stage model for business development, including web presence, e-commerce, integrated e-commerce, and e-business pool integration.

SORP analysis used to assess current information system capabilities and inform future strategy.

SWOT analysis in e-business context, combining corporate, marketing, supply chain, and information system aspects.

Four strategies derived from SWOT analysis: SO (Strength-Opportunity), WO (Weakness-Opportunity), ST (Strength-Threat), and WT (Weakness-Threat) strategies.

Value chain analysis focuses on activities that add value to products or services.

Differentiation and cost leadership strategies as ways of adding value.

Primary and support activities in the value chain model.

Value Network model for firms creating value by creating networks or linking different types of customers.

Value Shop model for firms offering expertise to solve problems.

Final questions for the audience to consider regarding SWOT analysis, stage models, and value chain activities.

Transcripts

thank you very much for watching the

second parts of video lectures on E

business planning strategy and

management in this video we will discuss

strategic process internal analysis

process analysis stage model swats

analysis and other analysis in this

lectures I don't discuss the detail this

analysis just introduction to each you

can learn them in detail in the

textbooks or Strategic Management

textbooks if you are

interested the Strategic process

strategy is a series of decisions and

actions designed to achieve stated

long-term aims decision of course are

made after carefully analysis of the

Strategic process key elements includes

internal and external analysis the

spectors internal externals form the is

for swort analysis strengths weaknesses

opportunities and threats there are some

other details analysis to look at

internal or external factors such as

value chain for internal analysis and P

poses analysis for external

[Music]

analysis this table shows some

alternative of strategic process models

let us look at briefly one by one a

business strategic framework composed of

s analy es missions and objective

develop strategic formulation and

strategic implementation parallel

corporate strategy Model start with

strategic analysis and then strategic

choice and strategic implementation

sequential marketing strategy Model

start with situation review can use SW

analysis to do this and then goal

setting strategic formulation and

resource allocation and sour Tech an

alternative sequential marketing

strategy Model start with situation

analysis objective setting strategy

tactics actions and

control an internal analysis helps

manager understand the strengths and

weaknesses of the organizations and from

that gives an indication of

organization's ability to achieve a

competitive Advantage internal analysis

also helps to identify resources

competencies and core competencies to be

exploited evaluate the effectiveness of

the organization of value adding

activities evaluate the performance of

products or Services evaluate the

performance of functional area of the

business resource analysis for E

business is primarily concerned with its

e business capabilities that is the

degree to which a company place the

appropriate technological and

applications infrastructures and

financial and human resources to sport

it these resources must be harnessed

together to give efficient business

process resources are the tangibles and

intangible assets which can be used in

value creation tangible resources

including it infrastructures bricks and

mortars and financial Capital intangible

resource include a company's brand and

credibility employee knowledge licenses

and patents capabilities represent the

ability of a firm to use resource

effectively to support value creation

they are dependent on the structures and

processes used to manage e business for

example the process to plan review and

enhance E channel performance through

web

analytics using stages model to observe

e Business Development stages models are

helpful in reviewing how advanced a

company is in its use of information and

communication technology resources to

support its processes stage models have

traditionally been popular in the

analysis of the current application of

business information system within

organization this figure is an examples

of stage model apply for salite

e-commerce and buy side e-commerce

salite e-commerce stage one is using

email marketing stage two brocher webs

sites using the web stage three three

interactive sites stage four order

online ordering stage five relationship

building and Stage six site optimization

while buy side e-commerce stage one is

RW suppliers stage two stock

availability stage three online

cataloges stage four online ordering

stage five integrated databases and

stage five supply chain

optimizations this is a stage mod model

to observe a business development it has

two Dimensions the column is a stage of

development first stage is web presence

second stage is e-commerce third stage

is integrated e-commerce and the fourth

stage is e business pool integration the

rule is dation of surface organization

scope transformation and strategy for

examples the surface availability for

first stage is only brw or inter

interaction with product cataloges and

customer service for the second stage is

transactional e-commerce on buy site or

sell site for the third stage is a buy

and sell site integrated with enterprise

resource planning Erp or Legacy system

for the final stage is stage four is a

full integration between all internal

organizational process and elements of

value

[Music]

Network application and prop analysis is

used to assess the current information

system some capability and to inform

future strategy it has a four quadrants

the column is the current strategic

importance of is the rule is future

strategic importance of information

system or is both has low and high value

the first quadrant low current strategic

import of is and low future strategic

import of is is is only the support

function such as the availability of

human resource systems and finance

system this is called support or in sh

situation second quadrant is high

current strategic important of is but

low fure strategic importance of is this

called key operational or explore the

third quadrants low current strategic

importance of r s but High fure

strategic importance of s this is high

potential or beware be ready for

cordance is the high current strategic

import of I and high future strategic

importance of the quadrant is called a

strategy or attack a business can assess

in which quadrant their positions

cly SWAT analysis SWAT analysis is a

relatively simple yet powerful tools

that can help organization analyze their

internal resources in term of strengths

and weaknesses and match them against

the external environment in term of

opportunity and threats in an e business

context a SWAT analysis of a business

specific issue can combine SWAT related

to corporate marketing supply chain and

information system or a separate SWAT

can be performed for

AG this is examples of SWAT analysis

strength weaknesses opportunity and

threat watch carefully the orange one so

you can have strength opportunity

strategy weak opportunity strategy

strength uh threat strategy weaknesses

strategy so we have four strategies to

handle the

situations the luch change analyses

focuses on how much value an

organization's activities add to its

products or Services compare to the cost

incur in utilizing resources in the

productive process value chain analysis

helps Focus intentions on configuring

and coordinating resources on those

activities that produce the product most

efficiently value change analysis

typically include breakdown of all

activities that undertaken

identification of core activities and

their relationship with current

organization strategy evaluations of the

effectiveness and efficiencies of

individual activities identifications of

linkage between activities for added

values identification of blockage that

make competitive Advantage

elusiv the main question managers have

to address for conducting a billu chain

analysis are what activities should the

firm perform and how what is the

configurations of the firm's activities

that best enables adding value to the

products and allows the firm to compete

in the industries two main ways of

adding value are differentiating the

product or service so that customer

perceive added value in the product

compared to the similar offering from

the competitors and are willing to pay a

higher price to acquire it this is

called differentiation strategy reducing

the cost of producing the product orace

below that of

competitors and this is called cost

leadership

strategy this is delen diagram of

Michael po there are two activities

primary activities and support

activities inil change in a primary

activity you have inbound Logistics

operation

outborn Logistics sales and marketing

and servicing in the software activities

you have administrative Finance

infrastructures Human Resource

Management product and Technology

development and procurement all these

activities is actually is direct to have

value added for competitive

Advantage byan model the primary

activities in B logistic are activities

associated with acquiring storing and

disseminating inputs operations are

activities that help transform input

into outputs outburn Logistics are

activities associated with collecting

storing Distributing the product to

Wholesales retailers or direct to the

customers marketing and sales are

activities associated with promoting and

selling the product or Services surface

are activities associated with providing

pre or after sales service to increase

or maintain the values of the

product support activities of value

chain model procurement relates to

purchasing of resources required to turn

input into output technological

development is the technological support

mechanism for developing new products

improving processes and monitoring

performance infrastructures refer to the

planning Finance technology and

information system and general

management of all the other value adding

activity in the organiz ation and human

resource management is attracting and

recruiting people with the correct

combination of skills capabilities and

attitud that add value to the

organization value Network model value

change is not appropriate to be

implemented if the firm is not

manufacturing type of business there are

two other value models that can be

considered value Network and value

shops value networks is a value

configuration for firms that main

activity ities are aimed to create value

by creating Network to their customers

or linking one type of customer such as

sellers to the other type of customer

such as buyers the structures of support

activities of value network is the same

as the structures of value change it has

three main activities Network promotion

and contact management service

provisioning and network

infrastructure please observe value

Network for retail bank in this figure

yeah B shops is value configuration for

firms that offer expertise to solve

problem such as consultants the

structure of value shop support

activities is basically the same as the

structures of support activities for V

chain its main activities is a cycle of

problems finding problem sing Choice

execution control or evolution and Link

back to the

problem please observe the B shops for a

general practitioner in this

[Music]

V we are reaching toward the end of this

video lectures here are some questions

for you describe briefly SWAT analysis

and the strategy derived from this

analysis describe briefly the for stage

model of a Business

Development what are the activities both

mean and support of value change

describe each of them thank you very

much for watching this video lectures

see you in the next part