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M05_CHAF9601_04_SE_C05.QXD:D01_CHAF7409_04_SE_C01.QXD 16/4/09 11:12 Page 296

296 Part 2 Strategy and applications

3.
Strategy definition

Option Option Option
generation evaluation selection

Eight key e-business strategic decisions
• Decision 1: E-business channel priorities
• Decision 2: Market and product development
• Decision 3: Positioning and differentiation strategies
• Decision 4: Business and revenue models
• Decision 5: Marketplace restructuring
• Decision 6: Supply-chain management capabilities
• Decision 7: Internal knowledge management capabilities
• Decision 8: Organizational resourcing and capabilities

Figure 5.16 Elements of strategy definition for the e-business

Selection of e-business strategy options
When reviewing e-business strategy options, there will be a range of possible strategies and
e-business service alternatives to be evaluated. Limited resources will dictate that only some
applications are practical. For example, typical alternative e-business strategy options for an
organization which has a brochureware site might be to implement:
transactional e-commerce facility;
online catalogue facility;
e-CRM system – lead generation system;
e-CRM system – customer service management;
e-CRM system – personalization of content for users;
e-procurement system for office supplies;

partner relationship management extranet for distributors and agents;
social network or customer forum.

Portfolio analysis (introduced in the section on resource and process analysis) can be used to
select the most suitable e-business projects from candidates. For example, Daniel et al.
(2001) suggest that potential e-commerce opportunities should be assessed for the value of
the opportunity to the company against its ability to deliver. Similarly, McDonald and
Wilson (2002) suggest evaluations should be based on a matrix of attractiveness to customer
against attractiveness to company, which will give a similar result to the risk–reward matrix.
Tjan (2001) also suggested a matrix approach of viability (return on investment) against
fit (with the organization’s capabilities) for Internet applications. He presents the following
metrics for assessing viability of each application. For ‘fit’ these are:
Alignment with core capabilities
Alignment with other company initiatives
Fit with organizational structure
Fit with company’s culture and value
Ease of technical implementation.