IMPLEMENTATION
Framework for Implementation
Why Does Implementation Matter?
*Inappropriate strategy can be partially offset by proper implementation.
*However, poor implementation will usually result in a company performing poorly in the marketplace.
Implementation Challenges for Online Firms
Six implementation challenges of online firms:
1. Higher visibility to errors
– Internet firms are closely monitored by the media, thus mistakes become magnified
2. Lower switching costs
– It costs a consumer very little to switch from one site to another (click of the mouse)
3. More dynamic competitive environment
– Low barriers to entry result in opportunities for competitors and new entrants, when implementation is poorly executed
4. More fluid organizational boundaries
– Increases contact between partnering organizations, but elevates the complexity of the interactions
5. More dynamic market environment
– Companies must implement quickly in order to adjust to the changing marketplace
6. More complex linkages
– Increased linkages result in a more bureaucratic process, thus slowing the decision process
Challenges of Online Implementation
Implementation Mistakes Made by Companies
Six “silent killers” of implementation:
1. Top-down or laissez-faire senior management style
2. Unclear strategy and conflicting priorities
3. Ineffective senior management team
4. Poor vertical communication
5. Poor coordination across functions, business, or borders
6. Inadequate down-the-line leadership skills and development
Human Assets
*Recruitment
– Refers to the formal task of searching for the right employees
*Selection
– Is the process of making hiring decisions and formal job offers
*Development
– Providing the employee a professional development plan to accentuate individual strengths and improve on weaknesses
*Retention
– Constantly evaluating and “ranking” employees to ensure the company provides the best work environment and best total compensation packages
Processes
*Patterns of interaction, coordination, communication, and decision-making that employees use to standardize how work is done.
These must be configured by online firms during implementation:
– Resource-allocation processes
– Human resources management processes
– Manufacturing and distribution processes
– Payment and billing processes
– Customer support/handling processes
Online & Offline Integration
Types of Hybrid organizations:
1. Single-Organization
Advantages:
– Flexibility between channels
– Consistent integration of online and offline customer service
– Managing a consistent brand
– People- employees have option of learning broader set of skills and capabilities
– Taxes
– Valuation
– Systems
2. Dual-organization
Advantages:
– Coordination and cooperation processes
– License to cannibalize
– People- two separate organizations forrecruiting
– Allocations
– Sales Tax exemption for Online sales
Single Organization versus Dual Organization
Online Supply Chains
1.Business-to-Consumer(B2C)
– E-tailer has significant flexibility in its supply chains
*One advantage is online retailers do not have to have the physical product in stock
Four types of B2C supply-chain models:
1. Stock-it-yourself
2. Outsource warehousing
3. Drop shipping
4. Fulfillment intermediaries
2. Business-to-Business(B2B)
– Estimated to be 3 to 10 times larger than the B2C market
Advantages:
– Lower input prices,
– Reduced inventory
– Reduced transaction costs
– Faster delivery
– Better customer service
3. Consumer-to-Business(C2B)
– Organize consumers together to create group-buying power in order to reduce costs
4. Consumer-to-Consumer (C2C)
– Firm facilitates person-to-person interaction (e.g., Ebay)
Generic Organizational Culture Types
Leadership
The Roles of Company Leadership:
– Responsible for building the capacities needed for strategy implementation
– Designing structures and systems
– Setting roles and responsibilities
– Allocating resources
– Assigning managers
The Role of Top Leadership:
– Think strategically
– Communicate persuasively
– Act decisively
– Demonstrate ethical behavior and strong character
– Build a sense of momentum for their firm
Important Abilities for Management Teams of Online Companies:
– Ability to keep the CEO in check
– Ability to communicate the vision of the company
– Experience in startups, online businesses, or catalog businesses
– Experience in technology roles
Partnership Attributes
Getting Things Done: Integrative Resource System
Principle 1: Execution Is Led by Senior Management—Not the Troops
Principle 2: Hold People Accountable for Meeting the Numbers
Principle 3: It Is Not Just About the Numbers; It Is Also About the Process
Principle 4: Continuous Improvement Is Still Relevant and Important
Principle 5: The Customer Is the Starting Point
Principle 6: Hire and Develop the “Doers”
E-COMMERCE 