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Chapter 5 E-business strategy 289

Table 5.6 Objectives, strategies and performance indicators for an example B2B company (in order of priority

Objectives Strategies to achieve goals Key performance indicators (critical
success factors)

1 Develop revenue from new 1 Create e-commerce facility for 1 Achieve combined revenue of £1m by
geographical markets standard products and assign year-end. Online revenue contribution
2 Increase revenue from smaller-scale agents to these markets of 70%
purchases from retailers 2 Create e-commerce facility for 2 Increase sales through retailers from
3 Ensure retention of key account standard products 15% to 25% of total by year 2.
customers 3 Attain soft lock-in by developing Online revenue contribution of 30%
4 Improve efficiency of sourcing raw extranet facilities and continued 3 Retain five key account customers.
materials support from sales reps Online revenue contribution of 100%
5 Reduce time to market and costs 4 Develop e-procurement system from these five
for new product development 5 Use collaboration and project 4 Reduce cost of procurement by 5%
6 Protect and increase efficiency of management tools by year-end, 10% by year 2.
distributor and partner network 6 Create partner extranet and aim for Achieve 80% of puchasing online
paperless support 5 Reduce cost and time to market by
average of 10% by year 3
6 Reduce cost of sales in each of five
main geographical markets by 30%

Some examples of sell-side e-commerce SMART performance indicators of an online flower
business are shown in Mini Case Study 5.2.

Mini Case Study 5.2 Arena Flowers controls its growth through key performance indicators

Figure 5.13 Arena Flowers (www.arenaflowers.com)