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e-volution – Road map for e-business implementation in Extended EnterprisesTraining material for e-volution methodology

Table of content Introduction Methodology Module 1: Definition of Business Objective System Methodology Module 2: Organisation Analysis Methodology Module 3: Market Analysis Methodology Module 4: E-business Strategy and Roadmap Formulation

Introduction

The e-volution concept - successful implementation of e-business in Extended Enterprises e-business road mapping methodology Software tools Based on approved models, e-volution offers an e-business road mappingmethodology that fulfils the requirements of a systematic and goal-oriented planning of e-business implementation. The methodology is the starting point for the use of phase specific, supporting software tools. Training package Content Service The e-volution training package is for transfer and teaching how to apply the e-business road mapping model, methods and tools. The e-volution Content Service disseminates the e-business road mapping model with its methods and tools but also know-how about e-business.

Methodology Purpose • Enabling methodology for implementation, adaptation and optimisation of e-business strategies for Extended Enterprises, covering the whole supply chain • Consolidation of existing and new know-how, methods and instruments, and expertise from science and consulting praxis for e-business strategy development in an integrative approach • Framework for integration, processing and coordination of e-business related management activities Fields of application • Strategic e-business planning inside EE constellation as enabler for the EE business concept • Preparation of e-business related decision making • Concept • Thematic modules • Methods • Instruments

Software tool-kit Purpose • Integrated software suite to support and enable efficient methodology application (e-volution tool-kit) • Interactive tools for use within workshops, individual or remote working sessions • Data and information processing, documentation and reporting Fields of application • Data and information processing • Management decision support • Data warehousing WEB

Objectives and benefits of the training concept • Development of overall understanding about the e-volution concept and how to use the methodology and software tool-kit in practice • Development of skills for method and software tool application by target groups in practice

Agenda: Training on Methodology Module 1 • Step 1: Introduction • Purpose and objectives, structure, positioning • Practical application environment • Step 2: Methodological approach • Step 3: Tool-kit support

Module 1 purpose and objectives Module purpose • development of a common and homogeneous understanding about the enterprise, its high-level business objectives and strategies • analysis, description and presentation of hierarchy of business objectives for the Extended Enterprise as well as the single enterprise • Provision of: • decision support regarding solution alternatives • transparency about the position of an entity resp. its contribution to the organisation’s success • communication of changing framework conditions in an entity

Module 1 purpose and objectives Field of application • strategic enterprise positioning • strategic enterprise planning • development of corporate enterprise identity • business model specification • enterprise presentation and business purpose communication

Module 1 structure

Relationships to other methodology modules • Module 2: Organisation Analysis • Detailed analysis about the EE organisation from structural, competence and ability points of view • Module 4: e-business strategy • formulation • Strategy development and assessment • Roadmap definition • Module 3: Market Analysis • Detailed analysis about markets segments, position, competitors and customers

Module 1 practical application environment Organisation • Intra- or inter-enterprise workshops or online session • Definition of key personnel participants (max. 20 participants) from different entities Demands on participants • Knowledge about enterprise, direct enterprise environment, market, and general business environment Time need • Central workshop approach: 1-2 workshops • Decentralised web-based online sessions: predefined period of time

Module 1 practical application environment Preparation of coordinator/moderator • Workshop • In-advance information and invitation of participants • Presentation material • Moderation methods and instruments (e.g. Flipchart, Overhead, Beamer, Meta-Plan) • Documentation and minutes • Web-based online sessions • Platform configuration and preparation • In-advance information (purpose, objectives, benefits, participants, organisation) • Invitation (access information, time schedule) • Reporting

Module 1 overview

Enterprise business vision/mission definition Fundamentals • enduring statement that distinguishes one enterprise from other similar enterprises • important to • insure unanimity of purpose, • arouse positive feelings about the enterprises, • provide direction, • provide a basis for objectives and strategies, • serve as a focal point, • create consensus on specific strategies and objectives, • resolve divergent views among managers

Enterprise business vision definition Writing the business vision for the enterprise Visualisation, discussion and assessment of individual business visions Decision about vision statement of the enterprise Formulation and publication of business vision

Enterprise business vision definition Purpose • "What does the enterprise want to become?" • first step in strategic business planning • clear vision provides the foundation for development of a comprehensive mission statement • direction of all business actions toward this vision Content • enterprise's sense of future direction • dream for an ideal state • concise declaration of the direction that an enterprise is planning to take into the future

Enterprise business vision definition Design guidelines • short • preferably • meaningful • one sentence • Instigation and inspiration for action and achievement among employees • Integration of motivation • Integration of changing aspects or motivation

Enterprise business mission definition Writing the business vision for the enterprise Visualisation, discussion and assessment of individual business mission Decision about mission statement of the enterprise Formulation and publication of business mission

Enterprise business mission definition Purpose • Enterprise definition in a concise and clear manner • Provision of vivid picture of what is unique about the enterprise to the reader • Alignment of every program and activity in the enterprise to the mission Design guidelines • less than 200 words • longer than a phrase or sentence, but not a two page document • not be too specific (can alienate managers and stifle creativity) • Inspiring • enduring though not cast in stone

Enterprise business mission definition Content • Customers and target markets • Products/Services for customers • Geographic markets • Technology • Concern for Survival/Growth/Profits • Philosophy (values, ethics, beliefs) • Public Image • Employees • Distinctive competence and Unique Selling Position (USP)

Enterprise business objective definition Information of participants Definition and collection of business problems and objectives by means of creativity methods Clustering of business objectives Presentation and completion of clustered business objectives Systems Thinking of business objectives Priority definition and presentation of business objectives

Need for business objectives Different objectives ... Common objectives ... ... align all entities to the same business objectives ... result in different priorities for actions No wind is good for someone who does not know where he wants to sail to. (Montaigne)

Information of participants Information by Moderator overall aim, purpose and approach by management enterprise vision, mission, guidelines Participants Enterprise(s) management, head of departments, works council, employees Moderator Discussion leader and assistants

Flexi- bilität ZeitInnovations- fähigkeit Ökonomie Qualität Ökologie Qualität SOLL IST Zeit - 100% Qualität Fundamentals Business strategy Serves the purpose of definition of high-level business objectives and of general framework for long term enterprise development. Sicherung der Arbeitsplätze durch Umsatzsteigerung von 10% pro Jahr Gewinnsteigerung neue Produkte und von 6 auf 10% Leistungen in alten Märkten Tactics are mid term specifications of the business strategy in the sense of selection and assessment of relevant business activities Functional activities Are for short term realisation of business strategy in practice by means of business activities defined by tactics Source: Kreikebaum 1989; Pfeiffer/Randolph 1981; Steinmann/Schreyögg 1990; Zäpfel 1989; -> Planungssysteme

Vision Mission Strategic objectives Tactic objectives Functional objectives Flexi- bilität Sicherung der Arbeitsplätze durch Umsatzsteigerung von 10% pro Jahr Gewinnsteigerung neue Produkte und von 6 auf 10% Leistungen in alten Märkten Zeit Innovations- fähigkeit Qualität Ökonomie Zeit - 100% Qualität Qualität Ökologie Business objective definition process   Business structure design Strategy formulation

Definition of business objectives • Suitable creativity methods • Open discussion • Brainstorming • Feedback method • … • Instruments and tools • Flipchart • Pin wall • Empty sheet of paper • … Shorter delivery times Staff training Better delivery quality Higher productivity Less process interfaces Closer customer relationships Work time concepts Better coordination • Tools • Web-based discussion and communication platform WEB

Clustering of business objectives e.g. Balanced Scorecard (BSC) concept e.g. Main business objectives Time/Costs/Quality/Flexibility/Ecology/… Information Product Service Marketing Reklamations-quote Anforde-rungsgerech-tes Produkt ... Qualität der Unterlagen Übersichtliche Kataloge ... Ständige Ansprechbar-keit Kundenservice ... Verbindliche Zusagen Liefertreue ... external Reklamations-bearbeitung ... Kundenge-rechte Verpackung ... Reaktion auf Kundennach-fragen ... internal Source: Kaplan, R. S.; Norton, D. P.: Balanced Scorecard, 1997

Impact reactive critical The right appraisement of efforts for the observation of elements is fundamental here Elements don‘t have to be observed, represent only impacts but no cause uncritical active These elements have to be observed marginally, elements only have weak influence Observation of elements in any case Early indicators Influence Cause effect analysis of business objectives e.g. System Thinking and System Dynamics Definition of interactions and dependencies of business objectives and identification of system impact and control variables

Time … than Ecology Time Costs Innovation Flexibility Quality Total assessment . . . . . . 0 less important 1 Same importance 2 More important Costs Time 7 2 1 0 2 2 . . . . . . 4 Costs 0 0 0 2 2 Innovation 7 1 2 0 2 2 Flexibility 10 2 2 2 2 2 Quality Ecology 1 1 . . . . . . 0 0 0 0 Quality 1 1 0 0 0 0 Priority definition by means of one-by-one comparison Objective clusters are prioritised by means of one-by-one comparison

Starting point for strategic organisation and market analysis Guidelines for process and organisation design Presentation of business objectives by means of pyramid of objectives Saving jobs by annual turnover increase of 10% Profit increase from New products and von 6 auf 10% services in existing markets Flexi- bility Time Innovation Costs Quality Ecology

General features • features the resource based strategic business situation analysis in an EE regarding mainly qualitative aspects of an organisation • based on an interview approach • provides a set of basic, interview and questionnaire templates • open for individual configuration • runs as a web application on Windows 95/98/2000/NT/XP systems • The OM tool features identification of EE partners goal system (mission, vision, goals), competences and e-abilities as basis for strength and weakness analysis • The OM software tool is: • Interactive: The user is provided with appropriate questionnaires for data and information input, inputs are recorded, information is assimilated, analyses are performed, and results are displayed for the user • Participative: The tool provides a network environment for collaboration between different users. Users complete the process and all of their responses are combined and analysed as a group to accurately account for all individuals and to effectively represent the collective knowledge of all participants • Configurable: The tool provides functionalities for customisation or development of user specific analyses OrganisationAnalyser Analysis of EE partners system of business objectives (mission, vision, objectives)

OrganisationAnalyser General Features • Data acquisition and analysis software for inquires • Web-based for decentralize, time independent processing • Online (Internet and Intranet) and offline (local) applicable • Project oriented user management • Inquiry management • numeral inquire methods • Free configurable inquire possibilities • Free scaling (number of users and inquires) • Analysis- and documentation function e-volution Features • Analysis instrument for specific EE levels • Strategic level (goal system) • Socio-informal level (competencies and skills) • Information level (competencies and IT-infrastructure)

Administration • User roles and rights • Administrator: user management • Interview manager: interview management (design, invitation, processing, analysis) • User: registration, interview processing

Interview processing • Structure: Interview\questionnaire\question • By going step by step the user will be introduced to the structure • Fixed structure, designed by interview manager • There can be numerous questions to different topics • Each question has its own evaluation • No need to do answer questions at, multi-session option

Interview analysis • Analysis by Interview manager • Standard analysis and report options: diagrams, lists • Export function to MS-Excel

Module 2 purpose and objectives Module purpose • identification and analysis of organisational aspects which have affects on the development of an e-business strategy and how they affect the decision making process • Methodological approach and supporting software tool for resource based EE analysis • Identification of e-business use, practices and potentials based on organizational ‘hard’ and ‘soft’ facts • Identification of organization related strengths and weaknesses as basis for e-business strategy development within the scope of EE concept realisation • Provision of: • decision support regarding solution alternatives • transparency about the position of an entity resp. its contribution to the organisation’s success • communication of changing framework conditions in an entity

Module 2 purpose and objectives Field of application • Business objective system definition • analysis of organisational, technological and human e-competences • strategic forecasting and early warning analysis • core competence analysis, the life-blood of the EE, as basis for realisation of extended, more competitive products and services • collaborative and transparent EE benefit definition

Relationships to other methodology modules • Module 4: e-business strategy • formulation • Organizational analysis is basis for identification of interfaces for the roadmap definition • Module 1: Business Objectives • Analysis • Create common understanding of EE business objectives • Basis for targeted e-business strategy formulation • Module 3: Market Analysis • Detailed analysis about markets segments, position, competitors and customers

Module 2 practical application environment Organisation • Intra- or inter-enterprise workshops or online session • Definition of key personnel participants (max. 20 participants) from different departments • No need for different EE-partners at one point of time Demands on participants • Knowledge about enterprise, certain departments, financial situation, strategic background and purpose, e-business situation for the whole enterprise and strategic objectives, as well as about direct enterprise environment Time need • Central workshop approach: 2-3 workshops • Followed by decentralised web-based online sessions: predefined period of time

Module 2 practical application environment Preparation of coordinator/moderator • Workshop • In-advance information and invitation of participants • Presentation material to prepare online session • Moderation methods and instruments (e.g. Flipchart, Overhead, Beamer, Meta-Plan) • Documentation and minutes • Web-based online sessions • Platform configuration and preparation • In-advance information (purpose, objectives, benefits, participants, organisation) • In-advance need for information collection from the participants side – scripts handed over at workshop • Invitation (access information, time schedule) • Reporting

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