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282 Part 2 Strategy and applications

2
Strategic objectives

• Vision • Objectives
• Mission

Objectives
Vision
• SMART objectives
• Replace vs Complement • Online revenue contribution
• Extent of adaptability needed • Customer value targets
• Balanced scorecards

E-business specific techniques
• Vision about capability to change, to reinvent
• Online revenue contribution

Figure 5.11 Elements of strategic objective setting for the e-business

significance of an e-business initiative to employees and partners. Note that objective setting
typically takes place in parallel with strategic analysis, defining a vision and strategy for
e-business as part of an iterative process.
Figure 5.11 highlights some of the key aspects of strategic objective setting that will be
covered in this section.

Defining vision and mission

Corporate vision is defined in Lynch (2000) as ‘a mental image of the possible and desirable

future state of the organization’. A clear vision provides a summary for the development of
purpose and strategy of the organization. Defining a specific company vision for e-business
is helpful since it contextualizes e-business in relation to a company’s strategic initiatives
(business alignment) and its marketplace. It also helps give a long-term emphasis on
e-business transformation initiatives within an organization.
Vision or mission Vision or mission statements for e-businesses are a concise summary defining the scope
statement and broad aims of digital channels in the future, explaining how they will contribute to the
A concise summary organization and support customers and interactions with partners. Jelassi and Enders
defining the scope and
broad aims of an (2008) explain that developing a mission statement should provide definition of:
organization’s digital
channel in the future, Business scope (where?). Markets including products, customer segments and geographies
explaining how they will where the company wants to compete online.
contribute to the
organization and support Unique competencies (how?). A high-level view of how the company will position and
customers and differentiate itself in terms of e-business products or services.
interactions with partners.
Values (why?). Less commonly included, this is an emotional element of the mission state-
ment which can indicate what inspires the organization or its e-business initiative.
Many organizations have a top-level mission statement which is used to scope the ambition
of the company and to highlight the success factors for the business. Some examples are
shown in Box 5.3.