ProjectWorld 2001 Workshop Presenter: Yogi Schulz

1. ProjectWorld 2001 Workshop Presenter: Yogi Schulz Managing e-Business Projects: Risks, Issues & Solutions Case Studies June 2001

2. E-tail: Gleaming Storefronts with Nothing InsideCase Study • Read the Business Week article • May 1, 2000, pages 97 - 98 • Consider major issues/difficulties: • tactical • strategic • Brainstorm solutions to: • solve immediate marketing/operational problems • strengthen the brand/product/service offering • What would you recommend as a project manager?

3. E-tail Case Study Major Issues/Difficulties Hype raises consumer expectations excessively • Ordinary/boring/pedestrian web sites • print/TV ad expectations not met by web sites • Lavish spending on promotion • excessive customer acquisition cost • Over-emphasis on growth • neglect of profitability • Poor order fulfillment • neglect of back office infrastructure • Flawed business model

4. E-tail Case StudySuggested Solutions • Improve web sites: • deliver a superior customer experience • Reduce promotional expenses: • reduce print/TV advertising • increase Internet marketing • Invest in back-office infrastructure: • warehouses • inventory management systems • order fulfillment capability

5. H & R BlockCase Study • Form into groups • Read the Business Week article • April 17, 2000, page 200 • List major issues/difficulties: • tactical • strategic • Brainstorm solutions to: • solve immediate problems • strengthen the product/service offering • What would you recommend as a project manager?

6. H & R Block Case Study Major Issues/Difficulties - 1 Undermine consumer confidence and trust • Inadequate data confidentiality • able to see other people’s tax returns • Site outages/availability lapses • inadequate infrastructure • Software bugs • inaccurate results • little or no software testing • Slow to poor performance • inadequate capacity/scalability • Missing functionality • couldn’t handle some states

7. H & R Block Case Study Major Issues/Difficulties - 2 • No online help/support call center • able to see other people’s tax returns • Rush to market • late to market • Poor user interface • users became confused & abandoned tax preparation • Inadequate operational monitoring • users called in to report seeing tax returns of others • Inadequate backup/recovery • took days to recover from a problem

8. H & R Block Case StudyStrategic Issues • Me-too web strategy • reactive to Intuit; trying to keep up • not a unique/differentiated strategy • Franchisees wary of cannibalizing their business • slowed development of the Web alternative • involve Franchisees in Web initiatives • Intuit - competitor with a year’s head start • threatens H R Block’s traditional market share • Inability to promote related products • will slow revenue growth and profitability of mortgage and financial services

9. H & R Block Case Study Suggested Solutions - 1 } • Strengthen the infrastructure: • capacity to improve response time • security/privacy • Improve the tax software: • fix bugs • widen the scope to meet needs • Build services: • mortgage • online trading • real-time quotes • stock and mutual fund research • portfolio and retirement planning Rebuild consumer confidence and trust Expand the business

10. H & R Block Case Study Suggested Solutions - 2 • Develop a distinct strategy. Consider: • a separate brand for the web initiative • active support/participation of the franchisees • Create a call center • consider directing calls to local franchisees • Consider a more modest web start: • tax information/help pages • tax information/help chat room • appointment booking service for franchisees

11. Holt RenfrewCase Study • Form into groups • Read the Globe & Mail article • September 13, 2000 • List major issues/difficulties for: • Holt Renfrew • its customers • its competitors • Brainstorm solutions to: • selling through the web • providing superior customer service • What would you recommend as a project manager?

12. Holt Renfrew Case Study Major Issues/Difficulties Some products not suited to Web • Inadequate cost/benefit: • expensive site • poor rating • mixed customer reaction • Customer profile: • high fashion/service expectations • urban residence; near store • price is not a significant consideration • Product characteristics: • need for touch/feel in buying process • need to fit/adjust product

13. Holt Renfrew Case StudySuggested Solutions • Marketing; not sales oriented web site: • showcase products • advertise new offerings • design a custom product • offer customer registration for e-mail notification • offer e-mail which contains a specific page link • Strengthen bricks & mortars: • upgrade customer service staff

14. Emulex Corp.Case Study • Form into groups • Read the National Post articles • September 2 and 4, 2000 • List major issues/difficulties for: • Emulex • Internet Wire • investors • Brainstorm solutions to: • react to crises caused by fraud, mis-information • minimize likelihood of a re-occurrence • What would you recommend as a project manager?

15. Emulex Corp. Case Study Major Issues/Difficulties Fraud difficult to detect/ counteract • Fraud/deception is easy to perpetrate • Fraudulent press release panicked investors • investor confidence undermined • Poor authenticity verification processes: • obvious text quality problems not corrected • pressure to issue news quickly • Legal precedents unclear • potential for defamation liability • No personnel exit process • user id still active

16. Emulex Corp. Case StudySuggested Solutions • Define Emulex crisis response plan: • assign crisis leader • orient staff about plan contents • prepare communication templates • Improve IW wire service processes: • verify authenticity through confirmation • change passwords regularly • implement certificates/encryption • institute an employee exit process • Improved IW authenticity verification process

17. Boo.comCase Study • Form into groups • Read the Business Week Online article • June 12, 2000 • Read the E-Business article • July 2000 • List major issues/difficulties: • tactical • strategic • What would you recommend as a project manager? • solve immediate problems • strengthen the product/service offering • Be prepared to share analysis & solutions orally

18. Boo.com Case StudyMajor Issues/Difficulties Online experience difficult to execute • Too much promotional spending • TV, radio and fashion magazines • cash consumption rate too fast • Technical glitches: • innovative 3D product photography slow • multi-lingual, multi-currency ambitions not delivered • slow performance; high expectation of client workstation capability • Mis-read customer profile: • impatient young female • desire for social aspect to shopping

19. Boo.com Case StudySuggested Solutions • Build understanding of customer expectations • Promote via the web • Design for fast response • Contain scope: • begin with few languages; currencies • begin with targeted/limited product line • Plan for business profitability • Build a bricks component to the business plan

20. Nike - i2Case Study • Form into groups • Read the InternetWeek article • March 1, 2001 • List major issues/difficulties: • tactical • strategic • Brainstorm solutions to: • strengthen e-commerce software package implementation projects • What would you recommend as a project manager?

21. Nike - i2 Major Issues/Difficulties Software packages can be demanding to implement • Highly customized implementation • Production use before testing is complete • Inadequate vendor knowledge of customer and/or industry

22. Nike - i2 Suggested Solutions • Implement software packages with minimal customization for first release • Production use starts after User Acceptance Test sign-off • Support project team/software vendor in achieving customer/industry understanding

23. Future ShopCase Study • Form into groups • Read the Network World article • July 14, 2000 • List major issues/difficulties for: • Future Shop • its customers • Brainstorm solutions to: • react to crises caused by fraud, mis-information • minimize likelihood of a re-occurrence • What would you recommend as a project manager?

24. Future Shop Case Study Major Issues/Difficulties Hoaxes difficult to defuse • Undermined customer confidence • Hoax panicked customers • undermines customer confidence • Sensitive customer data managed poorly • mass-mailing vendor not in control • not managing outsourcing relationship • Slow crisis response: • customer service notified well after incident • time zone differences created difficulties • timing of bank notification unclear • correcting E-mail sent 2 days later

25. Future Shop Case StudySuggested Solutions • Improve outsource vendor selection: • assess vendor stability/capability • review business process and security infrastructure • Manage outsource vendor relationship: • test security measures • include phony names; forwarded to Future Shop staff • Provide some customer restitution • Define crisis response plan: • assign crisis leader • orient staff about plan contents • prepare communication templates

26. Future ShopGuaranteed Safe Shopping

27. You Know You`re Taking Computers Too Seriously When... • You’ve never bought one of the "dummies" books. • You refuse to delete programs off your hard drive that you haven`t used in two years. • You buy 50 new floppies rather than go through the 300 used ones you have and delete the files on them. • You get in the elevator and double-click the button for the floor you want. • You consider reading in the bathroom to be Multi-tasking.

28. MSNHome Page

29. Stakeholders: audience sponsor publishers builders/developers infrastructure support Goals: sell inform influence Content: domain components Personalization: personal data to collect features to offer Promotion: media web mail Operation: collecting, managing & publishing content software maintenance infrastructure operations One Minute e-Business Strategy

30. Elements of ane-Business Strategy - 1 • The right goal • Profitability • A unique value proposition which is defensible against competitors • What can the company do differently that customers will pay for? • A distinctive value chain organization • Must links company functions and partners across major business processes

31. Elements of ane-Business Strategy - 2 • Trade-offs outlining what the company will and will not do • A fit between the different parts of the organization's activities • Seeing the business as a system of value with activities that reinforce each other • Continuity, even in the face of a fad • This takes leadership and discipline Dr. Douglas Reid Professor of business strategy Queen'sUniversity School of Business http://itworld.ca/rx.cfm?v=J,H,20011780023&S=108297

32. Potential Threats: External & internal sabotage: denial of service viruses malicious hacking Fraud: credit card assumed identity Application security vulnerabilities Lax physical access Actions: Physical access control Userid management Security consciousness of: partners suppliers employees Tracking suspicious actions: high surfing activity high return rate high credit denial Attack recovery plan One Minute e-Business Security

33. Policy Inclusions: type of info collected plan for info re-sell/give intent for info customer rights takeover/bankruptcy consequences problem resolution process Information access: display update/correct remove/delete userid/password Information collected: personal identification personal profile credit profile purchase history view/click history correspondence history Web Privacy PolicyDevelopment Considerations

34. Traditional Project Management Internal and local Fixed plans Tasks and processes Planning and scheduling Low uncertainty and risk Low-to-moderate speed Low-to-moderate change Uniform project teams Project leader makes decisions Collaborative Project Management External and distributed Fluid plans Results Interactions and knowledge management High uncertainty and risk High speed High change Diverse project teams Distributed decision-making Traditional vs. CollaborativeProject Management

35. Definition:Application Service Provider - ASP • A software vendor that delivers applications over the Internet or a private network • A company that delivers digital data using: • software • hardware • network • content • services

36. The last of theComputer Viruses list • Elvis Virus: Computer gets bloated, self destructs, and appears in malls all over America • Schwarzenegger Virus: Terminates whatever you have running, and it will be back • Gallup Virus : 60% of the PC's infected will lose 30% of their data 14% of the time (plus or minus a 3.5% margin on error) • Sears Virus: Your data won't appear unless you buy new cables, power supply and a set of shocks. • LAPD Virus: It claims it feels threatened by the other files on your PC and erases them in "self defense". • Prozac Virus: Scrambles your RAM and your processor and doesn't really care • Politically Correct Virus: rephrases the "Abort, Retry, Fail" prompt as "Choice, Retry, Success-Impaired". • Consultant Virus: Type in a question, and it responds "What would you like the answer to be?" • Freudian Virus: Your computer becomes obsessed with the motherboard • PBS Virus: Your computer interrupts the program you are running and starts making passive-aggressive pleas ("If you don't help, I guess I just won't be here anymore") asking for money every 55 minutes • AT&T Virus: Every 3 minutes it tells you what great performance you are getting • MCI Virus: Every 3 minutes it reminds you that you're paying too much for the AT&T virus • Bureaucratic Virus: Divides your hard disk into hundreds of little units, each of which does practically nothing, but all of which claim to be the most important part of your computer.

37. Managing e-Business Projects:Risks, Issues & Solutions • Yogi Schulz 700, 400 - 5th Ave. S.W. Calgary, Alberta Canada T2P 0L6 Phone/Fax: (403) 249-5255 E-mail: YogiSchulz@corvelle.com Web: www.corvelle.com Management Consultants • President of Corvelle Management Consultants • Information technology related management consulting • Project management and systems development • Computing Canada & Calgary Herald columnist