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E-BUSINESS PRESENTATION

Group Members:
Mubashir Hayat 12
Saif Ullah 08
Hazrat Bilal 00
Fazlur Rehman 11
Asad Ullah 00
Submitted To:

Sir Muhammad Bilal


E-BUSINESS STRATEGY
Evaluation
KEY ISSUES

• Evaluation Process
• Organizational Control And Evaluation
• Financial Evaluation
• Technology Evaluation
• HR Evaluation
• Website Evaluation
• Business Model Evaluation
• E-Business Strategy Evaluation
EVALUATION PROCESS

• Evaluation:
“ The making of a judgement about the amount, number, or value of something; assessment”.

Evaluation Process:
After implementation, the strategic process includes the evaluation of
the performance of the chosen strategy. The actions that are implemented need to be
monitored, assessed and evaluated to determine the effectiveness and efficiency of the
strategy (Coulter, 2002). The evaluation should reveal whether or not the organization’s
strategy is achieving the stated objectives. The most common feature of evaluation is
comparing set targets with performance achieved.
Feedback

Adjust standards Adjust performance

Set objectives Set standards Measure Compare Performance Modify Or


Performance With Set Standards Change
Strategy

Maintain The
Status Quo
Feedback
ORGANIZATIONAL CONTROL AND
EVALUATION
• Organizational Control:
“Organizational control is a systematic process that allows
managers to regulate internal activities and match their performance with set targets”.

 The control function within an organization is dependent on the information


generated on performance standards and performance achieved. Consequently, it is
necessary for managers to determine what information is required, how it is to be
generated and the appropriate response to the outcomes based on analysis of the
information.
There are three main ways of looking at the control process in
organization.

Feedforward Control Concurrent Control Feedback Control

Anticipates and
Solves problems Solves problems
pre-empts problems
as they occur after they occur
• Feedforward Control:
Feedforward control refers to controlling human,
material and financial resources flowing into the organization. The focus is
on anticipating problems.
For Example:
In e-recruitment where firms use the internet to set tests for
a large number of prospective employees. This filters the applicants’ skills,
qualifications and experience and reduces the number of final interviews
to manageable proportions. E-recruitment testing prevents problems
associated with the costs of administering and interviewing non-suitable
applicants.
• Concurrent Control:
“Concurrent control is another type of control
process. This type attempts to solve problems as they happen”.

For Example:
Concurrent control may focus on monitoring the activities of
employees to ensure that they consistently match set standards. The
monitoring of activities of operators in call centers is an example of
concurrent control.
• Feedback Control:
“ Feedback control is used as a basis for
matching actual performance against set targets”.

 The feedback information helps managers make decisions and


undertake the appropriate course of action to ensure the organization
achieves its objectives.

 In e-business, targets may include financial, customer satisfaction, sales,


quality, number of ‘hits’ on the website, advertising revenue, or number of
new customers.
FINANCIAL EVALUATION
• One of the first measures that managers look at to evaluate the performance of their
e-business are figures contained in the financial reports. This gives an immediate
overview of the health of the organization and tells the managers if their current
strategy is paying dividends in the form of increasing returns on investment and
profitability. Most e-businesses struggle to make money in the start-up phase and
therefore cash flow is an important measure for determining if the business can stay
afloat. The finances of any business are part of the control function and it is vital that
managers keep monitoring and assessing the financial health of their organization.
• The main elements of financial control include:

 Cash flow: The level of short-term working capital or liquidity


that the firm has to ensure it can operate on a day-to-day basis.
Assets: Refers to short- and long-term assets.
Customers accounts: Refers to credit control, terms of credit
and payment control.
Suppliers: Controlling the risks associated with the supply
chain.
Stock: Methods of controlling and monitoring stock levels.
There are two main financial statements that provide the basic financial information
for control and evaluation of performance.
These are the “Balance sheet” and the “Income statement”.

Balance Sheet:
The balance sheet is a financial statement that outlines the
organization’s financial position by focusing on assets and liabilities at a given point in time.
Three types of information comprise the balance sheet.
Assets
Liabilities
Owner Equities
 INCOME STATEMENT:
The income statement is a summary of an organization’s financial
performance over a given period of time. This is sometimes referred to as
the profit and loss account.

 Evaluating the financial position of an organization can be achieved by


calculating some simple financial ratios.
HUMAN RESOURCE EVALUATION:

Many firms who have engaged in e-business seek to employee fewer


but more specialize workers.
The evaluation of e-business is undertaken at 4 different levels. These
are:
▶ The evaluation of human resource policy
▶The evaluation of the recruitment process
▶The evaluation of human resource performance against set targets
▶The evaluation of feedback from human resource
1) EVALUATING HUMAN RESOURCE POLICY
AND PLANNING:

• Type of skills and expertise that the organization needs.


• The type of skills and expertise sought by the firm in e-business are:
• Web Design, Web Developer, Web Master, Computer Technician, Online
Marketer, Network Manager , Project Manager, Logistics Manager.
2) EVALUATING THE RECRUITMENT
PROCESS:
• Recruitment refers to all activities that help to define the characteristics of
applicants for specific jobs.
• Aim of recruitment process is to find right people for the right job.
• In e-business firms need to address some strategically important
issues. Key issues to be addressed include:
• How many seniors managers will be required
• How many new workers will be required
• What type of skills and experience will be required over the period
• What organizational structure will support the new working
environment .
3) EVALUATING HUMAN RESOURCE
PERFORMANCE:

• When organization recruit staff they expect return in their investment.

PERFORMANCE APPRAISAL:
• It is a process of observation, evaluation, recording outcomes and
providing feedback to workers.
4)EVALUATING FEEDBACK FROM HUMAN
RESOURCE:

• Part of the responsibility of the staff is to feedback all relevant


information to senior managers.

• It requires an effective communication system where workers can easily


and efficiently feedback relevant information on regular basis
TECHNOLOGY EVALUATION:

Technology is one of the key drivers of e-business so it is important for


organization's to understand their current position regarding the stage of
technology adoption and what can be achieved from it.
There are various different levels of e-business applications and organization's
will adopt those that help achieve their objectives within the constraints of
finance and skills.
The information technology infrastructure of an e-business comprises of
hardware and software.
The key to a successful IT strategy is for managers to understand exactly what
technology is required for helping the organization achieve its objectives.
STAGE MODEL OF E-BUSINESS ADOPTION:

Stage#1 Electronic information search


and creation

Stage#2 Electronic transactions

Stage#3 Complex electronic transactions

Stage#4 Electronic collaboration in product design,


distribution and logistics
FACTORS INVOLVED IN EVALUATION
PROCESS:
 The main factors comprising an evaluation process for computer hardware
include
1. Capability:
The capability of computer hardware will determine the scope of use
that it is put to. Capability includes speed, capacity and throughput.
2. Cost:
The cost of acquiring and installing the technology influences the
decision about what type of technology is appropriate within the set IT budget.
CONTINUED…

3. Reliability:
The performance of the hardware is constantly monitored and any
malfunctions noted.

4. Risk:
Technology in e-business plays a vital role in determining how successful
organization will be. The greater the benefits of installing a new technology
infrastructure the greater will be the associated risks
WEBSITE EVALUATION:
In e business it is the website that generates interest from customers and
drives the business model
The design and application of the website is of vital importance to
organization to engaged in e business and e commerce
There are some steps to develop a website which attract customers
 To ensure the design which attractive to browsers, the design has to
capture the attention of users
 The design has to be easily navigated , the user quickly move on
 The website has to offer fast access to information required by internet
users
 The website need to offer 24 hours access and security
• Overloading and overcrowding products and different brand promotions
can slow down the website processes and make the website more
complicated for customers to use
• This failing to establish a customer base
• Failing to attract new customers
• Losing loyalty of existing customers
FLETCHER ET AL (2004) WEBSITE DESIGN
PRINCIPLES:
• keeping graphs to a minimum
• Offering visual pictures of products
• Keeping the loyalty design simple
• Simplifying navigation
• Limiting or dispensing with banner advertisement
HOSTING:
Hosting is the physical location where an organization ‘s website is stored. There
are several options available to e businesses regarding hosting. Some are follows,
o Self hosting : the organization operates and manages the website;
o Co location: the organization operates and manages the website but physically
locates its systems in a hosting company’s facilitates’
o Dedicated hosting: the organization outsources the management of its system
and support activities to its third party;
o Shared hosting: similar to dedicated hosting except that the website resides on a
shared server;
HOSTING DECISION FACTORS WHICH ARE
RELEVANT TO THE WEBSITE PERFORMANCE
(PLANT 2000):
• Performance: the long term investment in systems
• Scalability: capability of a system to grow in size to service increasing
demand
• Availability: the capability for meeting a continuous demand
• Reliability: the technological robustness of a system
• Simplicity: ease of navigation and usability
• Integration: extent to which the systems are linked with other systems
• Security: protection against criminal or malevolent attacks
WEBSITES PERFORMANCE INDICATORS :
• The number of hits on website by potential customers;
• The length of time the potential customer stayed with the website;
• Which types of products or services viewed by the potential customers :
• The number of hits transformed into actual sales;
• The value of sales made;
• The types of products and services sold;
• The number of repeat customers;
BUSINESS MODEL EVALUATION:

The business evaluation model means the type activities that an e


business undertakes to achieve a competitive advantage ;
The purpose of creating business model is to generate revenue so that
the e business can survive and grow ;
An e business will set targets for income generation over a set of period
of time and compare with actual income received .
E-BUSINESS STRATEGY EVALUATION:

The final part of evaluation should focus on the longer-term aspirations


of the e-business. An evaluation of e-business strategy should determine
whether or not the organization is heading in the right direction to
achieve stated objectives.

Factors:
Factors that make evaluating an e-business strategy
distinct from evaluating the strategy of traditional firms. These
distinctions include:
• The need for a full understanding of the capabilities and attributes of the internet
when applied to business functions;
• The need to change the internet architecture in order to measure relevant
criteria;
• The need to clearly define business processes as a distinct E business activity;
• The need to recognize that workgroups do not operate in isolation, but have to
recognize their impact on other groups within a network organization;
• The need to recognize that the impact of the internet extends beyond the internal
environment.
FINAL PHASE OF E-BUSINESS STRATEGY:

• Where the organization is currently positioned;

• Where the organization can be positioned given current resources and


capabilities;
• The benefits of adopting different levels of e-business;
• The position that the organization should aspire to;
• The practical steps for implementing a new strategy to achieve
competitive advantage.
THE EVALUATION OF THE PERFORMANCE
OF AN E-BUSINESS STRATEGY:

• Targets for increasing market share (either overall or in a market segment);

• Becoming the technological leader in the industry sector (e.g. Apple’s strategy
for technological leadership in browser applications);
• Acquiring the best skills (Microsoft maintain their competitive advantage
partly through their ability to attract key workers with key skills);
• Setting profit targets (the phase of existing on investor goodwill has passed
and now more and more e-businesses set specific annual profit targets);
• Developing a range of new products or services (Yahoo! build their
business model around researching what customers want and delivering
it);
• Targets for customer satisfaction (US dot-coms have a benchmark of
80.8% set by the American Customer Satisfaction Index for e-commerce);
• Targets for delivery times of products (Tesco.com guarantee delivery
within set parameters).