Class 7
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This document outlines the key components of an e-business plan, including a mission statement, analysis of competition and the team's experience, market opportunities and goals, financial projections, resource requirements, risks and rewards, and implementation planning. The implementation planning section describes defining the project scope, activities, resources, schedule, risks, procurement, and budget. It provides guidance on developing an e-business strategy, implementation plan, and ongoing operations to achieve success.
Class 7
- 2. Mission Statement CLEARLY STATE YOUR COMPANY’S LONG TERM MISSION. TRY TO USE WORDS THAT WILL HELP DIRECT THE GROWTH OF YOUR COMPANY, BUT BE AS CONCISE AS POSSIBLE.
- 3. Competition • Summarize the competition. • Outline your company’s competitive advantage.
- 4. The Team • List CEO and key management by name. • Include previous accomplishments to show that these are people with a record of success. • Summarize number of years of experience in this field.
- 5. Market Summary • Summarize your market in the past, present, and future. – Review those changes in market share, leadership, players, market shifts, costs, pricing, or competition that provide the opportunity for your company’s success.
- 6. Opportunities • Identify problems and opportunities. – State consumer problems and define the nature of product/service opportunities that are created by those problems.
- 7. Business Concept • Summarize the key technology, concept, or strategy on which your business is based.
- 8. Goals and Objectives • List five-year goals • State specific, measurable objectives for achieving your five-year goals. – List market-share objectives. – List revenue/profitability objectives.
- 9. Financial Plan • Outline a high-level financial plan that defines your financial model and pricing assumptions. – This plan should include expected annual sales and profits for the next three years. – Use several slides to cover this material appropriately.
- 10. Resource Requirements • List requirements for the following resources: – Personnel – Technology – Finances – Distribution – Promotion – Products – Services
- 11. Risks and Rewards • Summarize the risks of the proposed project and how they will be addressed. • Estimate expected rewards, particularly if you are seeking funding.
- 12. Key Issues • Near term – Identify key decisions and issues that need immediate or near-term resolution. – State consequences of decision postponement. • Long term – Identify issues needing long-term resolution. – State consequences of decision postponement. • If you are seeking funding, be specific about any issues that require financial resources for resolution.
- 13. E-business development Planning Implementation Operation
- 14. E-business development What are the steps to success ? STEP 1 – e-Business strategy STEP 2 – Implementation plan STEP 3 - Implementation STEP 4 - Operation Planning Implementation Operation
- 15. E-Business Strategy Fundamental questions ….. How to develop e- business ? What type of e- business? Why you want to develop that type of e-business ? E-business strategy ….and answers. Implementation plan
- 16. What is strategy ? Family Inequalities Environment $$$ Now Future Competition 1.Propose you future situation 2.Assess your current situation (internal/external {SWOT}) 3.Choose your strategy
- 17. Implementation planning How to implement e-business • Start – Estimated scope – Estimated time – Estimated cost • End • Planned Activities • Planned schedule • Human resources • Planned procurement • Planned budget • Manage Risks
- 18. Implementation planning Refine Scope Break the outputs in small pieces (WBS) Identify Activities Identify Resources Develop Schedule Manage Risks Plan procurement Plan Budget Project Plan
- 19. Work Breakdown Structure (WBS) e-business e-business web site Off-line infrastructure Web site layout Web site Content Web service infrastructure Network ready Web server ready Hardware installed Webserver installed Web site text ready Product ‘s images ready Internal capacity on e-business operation Internal capacity on communications with foreign clients Intermal capacity on maintenance of web content Intermal capacity on maintenance of web service
- 20. Identify Activities Outcomes Activities Web site layout - Develop web site layout Web site text ready - Develop content of web site Product’s images ready - Obtain images of green cooperative’s products - Process the images to post in the web site Network ready - Install Internet access Hardware installed - Install web server (Hardware) Web server installed - Install web server software Internal capacity on maintenance of web content - Install software for content management - Develop internal capacity on maintenance of web content Internal capacity on maintenance of web service - Develop internal capacity on maintenance of web service Internal capacity on communications with foreign clients - Develop procedures for communications with foreign clients - Develop templates for communications with foreign clients - Develop internal capacity to deal with foreign clients
- 21. Identify Resources Tasks Resources Required skills - Develop web site layout - External - Web design - Develop content of web site - 1 Internal staff – 2 hours per day, for up to 3 months - English language, cooperative’s history, products and services. - Obtain images of green cooperative’s products - 1 Internal staff - Photo shooting - Process the images to post in the web site - External - Web design - Install Internet access - External - Data Network - Install web server (Hardware) - External - Hardware installation - Install web server software - External - Web server installation and configuration - Install software for content management - External - Content management configuration
- 22. Develop Schedule # Activity Predecess or Months 1 2 3 4 5 6 7 8 9 10 11 12 1 Develop content of web site 2 Obtain images of green cooperative’s products 3 Process the images to post in the web site 2 4 Develop web site layout 5 Install Internet access 6 Install web server 7 Install web server software 6 8 Install software for content management 6
- 23. The Building Blocks Suppliers: -Extranet -E-Procurment -Supply Chain Integration E-Business uses Information Technology based business practices to create competitive and distinctive advantages Customers: -Internet -Databases -Distribution System -Business Model The Company: -Intranet -Tech Know - Management -Business Focus -Cross functional teams
- 24. Developing the Plan • An e-Business Plan should be a realistic expectation of changes in Customer Behaviour -The technology environment -The business/Industry environment -New business and work practices due to technology, • Finally, the plan must address the use of information technology at all stages of the business.
- 25. Developing the Plan • Managers must understand the technology that underpins e-Business -Infrastructure -Internet Protocols -Telecommunication Standards -World wide web protocols -Wireless -The future of the WWW
- 26. Planning Stage-I • Clearly define your Vision, Mission and Business Objectives. • Clearly define your market/markets Clearly define your product or service • Assess your SWOT • Determine your distinctive competences
- 27. Planning Stage-II Identify and describe your distinctive advantges Remember in e-business, low cost is not a distinctive advantage. What is? Differentiation
- 28. Planning Stage-III • Clearly define the technology to realise your Vision, Accomplish your Mission, and reach your Objectives. • You must asked the following questions *Is the technology correct? *Are there competing technology? *Does the technology has multiple applications?
- 29. Planning Stage-IV The Environment Competitive Arena. Who is else is doing this? What are the barriers to entry? High/Low switching costs? Market/Economic Arena: What is/are the market structure, First Mover already, Second Follower, Niche, Is there a Brand already? Is the market ready for us?
- 30. Planning Stage-V Describe your Marketing & Operational Plan Your Operational Plan describes how you will manage the different elements of your e- Business. Will you Outsource, Partner ? Your Marketing Plan describes how you will Sell your e-Business to its audience. Here you can mention Strategic Alliances, Partnerships if any or intending.
- 31. Planning Stage-VI Describe Critical Success Factors INTERNAL -We are the best -We have customers already -We are serious -We know something they do not know! EXTERNAL -The Economy is good/Bad -There is a demand for our services -The law has changed -A competitor is bankrupt!
- 32. Planning Stage-VII Financial- Give a Sensible level of detail numbers Funding: How much will your business need? What is investment and what are costs? Income: Where is the money? Remember E-business opens new revenue models. HAVE A TIME FRAME: 1yr ++
- 33. Ways to Fund Your Online Business
- 34. Bootstrapping • Bootstrapping means you rely on your own efforts and resources. • You have 100-percent control of what happens with your business. The downside is equally obvious: Finding the cash for your business is hard work, and can take some time.
- 35. Friends and family • Gaining capital through friends and family seems to be a popular route for small business start-ups. • These are the folks who know you best and are the most likely to want to see you excel in your pursuit.
- 36. Network funding • A fundraising tool that is currently in beta can be found at Bolstr.com, which is designed to help merchants build a campaign around their business by inviting people they know to view the information in a private setting. • This financial management tool allows you to remain engaged with your investors and keep them updated on the progress of your business
- 37. Crowd funding • Crowd funding gives the ability to raise large amounts of money for your idea (sometimes through presales of a product), receive feedback from the market all the way through your fundraising campaign, • And start your project in the knowledge that you already have the money at the bank and some customers that have bought into what you are creating
- 38. Bank loans • Banks offer a variety of loans for start-up and emerging businesses. • Before you apply for a bank loan, do a little homework regarding loan terms and secured versus unsecured loans. • Loan types include consumer loans, working capital lines of credit, and short-term or longer- term commercial loans.
- 39. Cash advance • Funding is supplied by experienced investors and is targeted at the small online business selling on eBay, Amazon, Etsy, Shopify and Yahoo.
- 40. Venture capital and angel investors • Venture capital usually comes from wealthy investors and financial institutions that want to place their money in high-risk ventures that could produce above-average returns • If you believe your business idea is amazing, and it has a high-growth potential, then you may need a large investment from these “angel investors” to get it going.
- 41. Grants • It’s difficult to find federal grants that fit your small business goals. However, many states offer grants aimed toward local economic development.