Mobilizing the Organization: Tactical Execution Chapter Fourteen Chapter Fourteen www.ebstrategy. com 2 - © e-Business Strategies, Inc. Introduction Introduction Visionary companies consistently out-execute competition – GE, Wal-Mart – Combine winning strategy, talent and execution to support strategy, and integrated transition from old to new ways of doing things This chapter’s focus: Execution – How, What and When Fast turnaround of e-business projects will separate winners from also-rans – Financial costs of delays or mismanagement huge – Lost opportunity costs of being late to market even higher – Kmart and example of bad e-business execution www.ebstrategy. com 3 - © e-Business Strategies, Inc. Roadmap to Tactical Execution Roadmap to Tactical Execution E-Business design and software projects must be closely intertwined – e-Business requires well integrated processes that are built on software, not traditional foundation of people – Do the tactical efforts support the business model? – Do the tactical efforts reflect changes in thinking about the business model? E-Business Roadmap Vision & Strategy Blueprint Planning Tactical Execution Adoption Management www.ebstrategy. com 4 - © e-Business Strategies, Inc. E-Business Tactical Execution E-Business Tactical Execution Technology and Application Capabilities Organizational Capabilities and Limitations e-Business Blueprint Tactical e-Project Management Architecture and Implementation Plan e-Business Infostructure Adoption Management e-Business Development Measurement for Evergreen Strategy www.ebstrategy. com 5 - © e-Business Strategies, Inc. Tactical e-Project Management Tactical e-Project Management • Transition to e-Business needs tightly coordinated approach – Caveat: Traditional app execution characterized by number of groups working on various aspects of an issue but not talking • e-Project mgmt to bring order to chaos • Different from traditional project mgmt because of new challenges – Speed – Resources – Requirements – Release cycles – Technology • Do the projects reflect changes in thinking about the business model? www.ebstrategy. com 6 - © e-Business Strategies, Inc. Process Overview Process Overview Define and Organize the Project Execution and Close Down Plan the Project Establish project team Determine project objective Assemble the project definition document Get project approval Develop work breakdown structure Develop project schedule Gather detailed project requirements Analyze resources Prepare cost analysis Collect project status data Complete project closing activities Planning and Managing Projects Conduct post project review Maintain, Monitor and Control www.ebstrategy. com 7 - © e-Business Strategies, Inc. The Intangibles: Continuous Project The Intangibles: Continuous Project Communication Communication A project communication plan necessary for a project to function like a well-oiled machine – to keep mgmt, customers, and team members informed of project’s status and milestones at risk of being missed – Identifies all persons concerned with the project and develops follow-up activities to keep them involved – Assigns communication responsibilities and process for keeping everyone informed www.ebstrategy. com 8 - © e-Business Strategies, Inc. e-Development Process e-Development Process Opportunity Generation Solution Evaluation Customer Requirements Resource Mobilization Scope/ Feasibility Requirements Prototyping e-Process Redesign Implementation Maintenance/ Support www.ebstrategy. com 9 - © e-Business Strategies, Inc. Opportunity Generation: What Customer Opportunity Generation: What Customer Pain Are We Solving? Pain Are We Solving? Projects must be built around opportunities for addressing customer needs – Classify: Pain killer or vitamin? – Most significant opportunities also simple: transactions in everyday life that could be simplified – Opportunities for relieving customer pain may be collected passively, but firms should also generate opportunities actively Many ways to identify opportunities – Annual mgmt brainstorming retreat – Let employees develop opportunities – Strategic document outlining opportunities: “slots” – Survey of customers by consulting firm Few execs take customer’s perspective – Trying to reduce pain for themselves www.ebstrategy. com 10 - © e-Business Strategies, Inc. Solution Evaluation: How Can We Alleviate Solution Evaluation: How Can We Alleviate the Customer Pain? the Customer Pain? Element Questions What • Which customer processes are involved? • What is wrong? •What is the opportunity in terms of customer problems, competitive pressures, internal inefficiencies, lack of new features in products, or unmanageable complexity in processes? Where/When •Where do we observe the problem? • Are there any service or infrastructure implications? •Under what conditions do we observe the problem? How big • How big is the problem/opportunity? •What is the cost of these problems in terms of lost revenue, expenses, speed, or morale? • How will we measure it? •Will the solution require the customer to change process or culture? [...]... difficulty of execution the constraints of human behavior Bottom Line Top Line Growth Process Change Automate Transaction s © e-Business Strategies, E-Business Evolution in Corporations E-Business Strategies, Inc www.ebstrategy.com contact@ebstrategy.com 67 8-3 3 9-1 236 x201 Fax - 67 8-3 3 9-9 793 ... for companies with rapidly changing IT needs that don’t require highly customized software solutions – Startup companies – Large corporations because of time-to-market issues, lack of development resources, and a desire to lower maintenance costs © e-Business Strategies, Infostructure Management Production infostructure least understood areas of e-business – How to provide alwayson-service and performance?... synergy of people, processes and technology © e-Business Strategies, Measurement for Learning and Improvement How does a company know it is doing well post implementation? What are some key measures important to a new e-business process What should my company measure? – – – – – Risk Financial Loyalty Fulfillment Customer satisfaction © e-Business Strategies, Key Take-Aways Technology changes, but NOT Sustainability... Jam Cracker, LoudCloud – Group a company’s apps together on dedicated servers in state-of-the-art NOCs © e-Business Strategies, Capacity Planning Online customer impatient Predicting demand levels for network services difficult Complexity of today’s networks make it difficult to isolate the driving force of demand for a particular service Continuous, ongoing capacity planning process necessary – Assess... necessary to solve these issues © e-Business Strategies, Availability Availability is accessibility of e-business operation: 24 hours a day, 7 days a week, 365 days a year Techniques for maximum uptime – Clustering and replication – Process and business practices – Monitoring service deployments Modularity of infostructure critical to attaining continuous availability © e-Business Strategies, Security... asked for yet Customer-driven, “requested” requirements Technology-driven “Feature complete” requirements to add bells and whistles © e-Business Strategies, Getting Detailed Requirements Right Market Trends Purchase/Interaction Occasion Front end Prototyping To Avoid Surprises Competitor Benchmarking Market Research Customer Pain Customer Anger Buyer Behavior Functional Needs Systems Economics © e-Business. .. for upfront activities, as strategy formulation – But underestimate for downstream activities © e-Business Strategies, Business Strategy Infrastructure Internal New (Tools, Apps, Staff & Application Software) Consultants Development Supplier/ Partner Integration Strategy Formulation Blueprint Planning & Project Management Prototype Implementation Production Rollout, Maintain, Enhance and Change Effort... monitor traffic regularly to verify business model – Use business model for long-range scenario planning In capacity planning, don’t think just Web transactions – Think about how rich content affects capacity © e-Business Strategies, Scalability • Impacts both the # of simultaneous users that can be supported and the service-level performance that users experience • Hardware scaling vs Indirect techniques... blocks of each process • Identify all key inputs - information, data, or products - of each major activity Ask “which of these are absolutely critical to the process?” • Identify all key dependencies of each activity Ask “Is this dependency impacting the smooth flow of the process? What-if we removed/modified it?” • Diagram the entire process into a high-level map Web Development: Prototype Validation... and have a plan for addressing each one – September 11, 2001 © e-Business Strategies, Adoption Management Three behavioral responses to overcome when introducing changes: Denial, Anger or Acceptance Successful adoption needs – Communication plan – Transition mgmt plan • Samsonite had conversion problems when implementing its new financial, manufacturing, and distribution apps – Key performance indicators . of bad e-business execution www.ebstrategy. com 3 - © e-Business Strategies, Inc. Roadmap to Tactical Execution Roadmap to Tactical Execution E-Business. Execution Adoption Management www.ebstrategy. com 4 - © e-Business Strategies, Inc. E-Business Tactical Execution E-Business Tactical Execution Technology and