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274 Part 2 Strategy and applications

5 Cross-channel integration and brand development. Integrating online sales and service with
customer communications and service interactions in physical channels such as traditional
advertising, phone and in-store touchpoints.
6 Digital channel governance. Issues in managing e-commerce services such as structure and
resourcing including human resources and the technology infrastructure such as hardware
and networking facilities to deliver these applications.

Organizational and IS SWOT analysis
SWOT analysis SWOT analysis is a relatively simple yet powerful tool that can help organizations analyse
Strengths, weaknesses, their internal resources in terms of strengths and weaknesses and match them against the
opportunities and threats.
external environment in terms of opportunities and threats. In an e-business context, a
SWOT analysis of e-business-specific issues can combine SWOT related to corporate, market-
ing, supply chain and information systems, or a separate SWOT can be performed for each.
SWOT analysis is of greatest value when it is used not only to analyse the current situation,
but also as a tool to formulate strategies. To achieve this it is useful once the strengths, weak-
nesses, opportunities and threats have been listed to combine them as shown in Figure 5.8.
This format of SWOT is recommended over a typical four-box SWOT since it can be used to
develop strategies to counter the threats and take advantage of the opportunities and can
then be built into the e-business strategy.
Figure 8.6 gives an example of an e-marketing SWOT using the approach shown in Figure 5.8.

Human and financial resources
Resource analysis will also consider these two factors:
1 Human resources. To take advantage of the opportunities identified in strategic analysis the
right resources must be available to deliver e-business solutions. The importance of having
a human resources approach that enables the recruitment and retention of staff is exam-
ined in Chapter 10, ‘Change management’. The need for new structures and cultures to
achieve e-business is also covered.
2 Financial resources.Assessing financial resources for information systems is usually conducted
as part of investment appraisal and budgeting for enhancements to new systems which we
consider later in the chapter.

The organisation Stengths – S Weaknesses – W
1. Existing brand 1. Brand perception
2. Existing customer base 2. Intermediary use
3. Existing distribution 3. Technology/skills
4. Cross-channel support
Opportunities – O SO strategies WO strategies
1. Cross-selling Leverage strengths to Counter weaknesses through
2. New markets maximise opportunities exploiting opportunities
3. New services = Attacking strategy = Build strengths for
4. Alliances/co-branding attacking strategy

Threats – T ST strategies WT strategies
1. Customer choice Leverage strengths to Counter weaknesses and
2. New entrants minimise threats threats
3. New competitive products = Defensive strategy = Build strengths for
4. Channel conflicts defensive strategy

Figure 5.8 SWOT analysis