Similar questions

Explain the elements of a generic strategic process model.

The main elements of e-business strategy include:

1. Analysis:

   Strategic analysis or situation analysis involves review of:

   i. The internal resources and processes of the company to assess its e-business.

   ii. The immediate competitive environment (micro-environment), including customer demand and behaviour, competitor activity, marketplace structure and relationships with suppliers, partners and intermediaries.

   iii. The wider environment (macro-environment) in which Strategic a company operates; this includes economic development and regulation by governments in the form of law and taxes together with social and ethical constraints such as the demand for privacy. These macro environment factors, including the social, legal, economic, political and technological factors.

1. Strategic Objectives:

   1. Defining and communicating an organization’s strategic objectives is a key element of any strategy process model since:

      i. The strategy definition and implementation elements of strategy must be directed at how best to achieve the objectives.

      ii. The overall success of e-business strategy will be assessed by comparing actual results against objectives and taking action to improve strategy

      iii. Clear, realistic objectives help communicate the goals and significance of an e-business initiative to employees and partners.

   2. Vision or mission statements for e-businesses are a concise summary defining the scope and broad aims of digital channels in the future, explaining how they will contribute to the organization and support customers and interactions with partners.

   3. From a sell-side e-commerce perspective, a key aspect of vision is how the Internet will primarily complement the company’s other channels or whether it will replace other channels. Whether the vision is to complement or replace it is important to communicate this to staff and other stakeholders such as customers, suppliers and shareholders.
   4. The value of the objectives can be tested using the widely used SMART mnemonic, i.e. are they specific, Measureable, Achievable, Realistic and time constrained.
   5. Online Revenue Contribution can be defined as direct or indirect contribution of the Internet to sales, usually expressed as a percentage of overall sales revenue.
   6. Balanced scorecards can be defined as a framework for setting and monitoring business performance. Metrics are structured according to customer issues, internal efficiency measures, financial measures and innovation.

1. Strategy Definition:

1. Strategy Implementation:

   i. After strategy development, enactment of strategy occurs as strategy implementation.

   ii. Strategy implementation includes all tactics used to achieve strategic objectives.

   iii. Supply chain management includes coordination of all supply activities of an organization from its suppliers and partners to its customers.

   iv. E-marketing involves marketing objectives through use of electronic communications technology.

   v. Managing process, structural, technical, staff and cultural change within an organization is called as change management.

   vi. Analysis and design involves analysis of system requirements and design for creation of system.

   vii. Implementation involves creation of system modules by coding, scripting, module integration, testing and changeover to the live system.