• Create BookmarkCreate Bookmark
  • Create Note or TagCreate Note or Tag
  • PrintPrint
Share this Page URL

Chapter 9. Internet Strategy Effectiveness—A Scorecard Approach

Chapter 9. Internet Strategy Effectiveness—A Scorecard Approach

As illustrated in previous chapters, creating a successful e-commerce strategy is a complex and intricate process. The strategy can vary from "let's start fresh—close all the bricks-and-mortar stores, and go online" to "we aren't going to sell online, but we want our site to reinforce our brand." The problem faced by executives whose organizations have yet to go online is "where on this spectrum should I position my organization's e-commerce strategy?" The executive whose enterprise is already online faces the question, "How do I evaluate the success of my organization's online strategy and our positioning of that strategy?"

This chapter tries providing some guidelines on how to approach these issues in a concrete and substantive manner. The approach advocated is based on three phases:

  1. Determination of the forces both internal and external to the organization that influence the organization's e-commerce strategy formulation.

    In the first analysis stage, an organization must consider exactly which sectors of its business are most applicable to the e-commerce environment and whether these businesses will function as model B2C, B2B, or B2G. Furthermore, the options associated with the creation and execution of these business models need to be explored. This includes the possible development of partnering models or e-consortia models.

    This macro-level analysis is based on the creation of models from the methodology presented in the earlier chapters of this book with the goal of finding a suitable overall strategy, one that balances out the four areas identified earlier as vital to a successful e-commerce strategy: brand, technology, market, and service.

    Having completed this analysis, executives then have to formulate a set of e-commerce strategic goals based on the opportunities identified. These are the value criteria through which the effectiveness of the business plan, in the form of the operational system, is ultimately judged.

  2. Create a metrics program based on the use of value criteria in the form of an Internet effectiveness scorecard.

    In order to determine the success of the system against the value criteria, the stakeholders must consider their e-commerce strategy from an activity-based ROI analysis. This is the objective of the second analysis stage, which encourages executives to develop and complete an Internet strategy effectiveness scorecard based on the value criteria.

    The scorecard provides jumping-off points for group discussion and reflection. A sample scorecard is presented in this chapter that organizations can use to develop their own scorecards, using fresh, innovative questions tailored for their own organizational situations. The scorecard provides the user with a framework from which a SWOT[1] analysis can be performed and the results used to improve the business.

    [1] The strategic e-commerce strengths, weaknesses, opportunities, and threats of the marketspace are compared and contrasted with those of the organization.

  3. Determine the effectiveness of the value criteria at the ownership levels, the process levels, and the transactional levels.

    The third level of analysis is based upon a second framework: the e-value map. This tool enables the e-commerce strategist to map out the issues surrounding each of the processes affected by the transition to Internet-based e-commerce or since the previous system iteration. Since each organization has a different set of procedures and associated process goals, the framework presented here is generic in nature, but can be effectively applied to most situations.

These three phases will now be considered in more detail.



Not a subscriber?

Start A Free Trial

  • Creative Edge
  • Create BookmarkCreate Bookmark
  • Create Note or TagCreate Note or Tag
  • PrintPrint