ProjectWorld 2001 Workshop
Presenter: Yogi Schulz
e-Business Projects
Managing e-Business Projects:
Risks, Issues & Solutions
Case
Studies
Yogi Schulz
June 2001
File: case_studies.PPT
1
E-tail: Gleaming Storefronts with Nothing Inside
Case Study
e-Business Projects

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?
Yogi Schulz
File: case_studies.PPT
2
E-tail Case Study
Major Issues/Difficulties
e-Business Projects

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
Yogi Schulz
Hype
raises
consumer
expectations
excessively
Flawed business model
File: case_studies.PPT
3
E-tail Case Study
Suggested Solutions
e-Business Projects

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
Yogi Schulz
File: case_studies.PPT
4
H & R Block
Case Study
e-Business Projects
 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

Yogi Schulz
What would you recommend as a project manager?
File: case_studies.PPT
5
H & R Block Case Study
Major Issues/Difficulties - 1
e-Business Projects

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

Undermine
consumer
confidence
and trust
Slow to poor performance
– inadequate capacity/scalability
Yogi Schulz

Missing functionality
– couldn’t handle some states
File: case_studies.PPT
6
H & R Block Case Study
Major Issues/Difficulties - 2
e-Business Projects

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

Yogi Schulz
Inadequate backup/recovery
– took days to recover from a problem
File: case_studies.PPT
7
H & R Block Case Study
Strategic Issues
e-Business Projects

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

Yogi Schulz
Inability to promote related products
– will slow revenue growth and profitability of mortgage and
financial services
File: case_studies.PPT
8
H & R Block Case Study
Suggested Solutions - 1
e-Business Projects

Strengthen the infrastructure:
– capacity to improve response time
– security/privacy

Improve the tax software:
– fix bugs
– widen the scope to meet needs

Yogi Schulz
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
File: case_studies.PPT
9
H & R Block Case Study
Suggested Solutions - 2
e-Business Projects

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
Yogi Schulz
File: case_studies.PPT
10
Holt Renfrew
Case Study
e-Business Projects
 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
Yogi Schulz

What would you recommend as a project manager?
File: case_studies.PPT
11
Holt Renfrew Case Study
Major Issues/Difficulties
e-Business Projects

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

Yogi Schulz
Some
products
not suited
to Web
Product characteristics:
– need for touch/feel in buying process
– need to fit/adjust product
File: case_studies.PPT
12
Holt Renfrew Case Study
Suggested Solutions
e-Business Projects

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
Yogi Schulz
File: case_studies.PPT
13
Emulex Corp.
Case Study
e-Business Projects
 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
Yogi Schulz

What would you recommend as a project manager?
File: case_studies.PPT
14
Emulex Corp. Case Study
Major Issues/Difficulties
e-Business Projects

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
Yogi Schulz
No personnel exit process
– user id still active
Fraud
difficult
to
detect/
counteract
File: case_studies.PPT
15
Emulex Corp. Case Study
Suggested Solutions
e-Business Projects

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
Yogi Schulz
File: case_studies.PPT
16
Boo.com
Case Study
e-Business Projects
 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

Yogi Schulz
What would you recommend as a project manager?
– solve immediate problems
– strengthen the product/service offering
File: case_studies.PPT
17
Boo.com Case Study
Major Issues/Difficulties
e-Business Projects

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

Yogi Schulz
Online
experience
difficult
to
execute
Mis-read customer profile:
– impatient young female
– desire for social aspect to shopping
File: case_studies.PPT
18
Boo.com Case Study
Suggested Solutions
e-Business Projects

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
Yogi Schulz
File: case_studies.PPT
19
Nike - i2
Case Study
e-Business Projects

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

Yogi Schulz
What would you recommend as a project manager?
File: case_studies.PPT
20
Nike - i2
Major Issues/Difficulties
e-Business Projects

Highly customized
implementation

Production use before testing
is complete

Inadequate vendor knowledge
of customer and/or industry
Software
packages
can be
demanding
to
implement
Yogi Schulz
File: case_studies.PPT
21
Nike - i2
Suggested Solutions
e-Business Projects

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
Yogi Schulz
File: case_studies.PPT
22
Future Shop
Case Study
e-Business Projects
 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

Yogi Schulz
What would you recommend as a project manager?
File: case_studies.PPT
23
Future Shop Case Study
Major Issues/Difficulties
e-Business Projects


Undermined customer confidence
Hoax panicked customers
– undermines customer confidence

Sensitive customer data managed poorly
Hoaxes
difficult
to defuse
– mass-mailing vendor not in control
– not managing outsourcing relationship

Yogi Schulz
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
File: case_studies.PPT
24
Future Shop Case Study
Suggested Solutions
e-Business Projects

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:
Yogi Schulz
– assign crisis leader
– orient staff about plan contents
– prepare communication templates
File: case_studies.PPT
25
Future Shop
Guaranteed Safe Shopping
e-Business Projects
Yogi Schulz
File: case_studies.PPT
26
You Know You`re Taking
Computers Too Seriously When...
e-Business Projects

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.
Yogi Schulz
File: case_studies.PPT
27
MSN
Home Page
e-Business Projects
Yogi Schulz
File: case_studies.PPT
28
One Minute
e-Business Strategy
e-Business Projects

Stakeholders:
–
–
–
–
–

audience
sponsor
publishers
builders/developers
infrastructure support
Yogi Schulz
Content:
– domain
– components
Personalization:
– personal data to collect
– features to offer

Promotion:
– media
– web
– mail
Goals:
– sell
– inform
– influence



Operation:
– collecting, managing &
publishing content
– software maintenance
– infrastructure operations
File: case_studies.PPT
29
Elements of an
e-Business Strategy - 1
e-Business Projects

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
Yogi Schulz
File: case_studies.PPT
30
Elements of an
e-Business Strategy - 2
e-Business Projects

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
Yogi Schulz
Dr. Douglas Reid
Professor of business strategy
Queen'sUniversity School of Business
http://itworld.ca/rx.cfm?v=J,H,20011780023&S=108297
File: case_studies.PPT
31
One Minute
e-Business Security
e-Business Projects
Potential Threats:
Actions:


Physical access control

Userid management

Security consciousness of:
External & internal
sabotage:
– denial of service
– viruses
– malicious hacking

Fraud:
– credit card
– assumed identity

Yogi Schulz
– partners
– suppliers
– employees

Tracking suspicious actions:
– high surfing activity
– high return rate
– high credit denial
Application security
vulnerabilities
Lax physical access

Attack recovery plan
File: case_studies.PPT
32
Web Privacy Policy
Development Considerations
e-Business Projects

Policy Inclusions:
–
–
–
–
–
type of info collected
plan for info
re-sell/give intent for info
customer rights
takeover/bankruptcy
consequences
– problem resolution process

Yogi Schulz

Information collected:
–
–
–
–
–
–
personal identification
personal profile
credit profile
purchase history
view/click history
correspondence history
Information access:
–
–
–
–
display
update/correct
remove/delete
userid/password
File: case_studies.PPT
33
Traditional vs. Collaborative
Project Management
 Traditional
e-Business
Projects Project
Management

Collaborative Project
Management

Internal and local


Fixed plans

Fluid plans

Tasks and processes

Results

Interactions and knowledge
management

Planning and scheduling

Low uncertainty and risk



Yogi Schulz

Low-to-moderate speed
Low-to-moderate change
Uniform project teams
Project leader makes
decisions
External and distributed

High uncertainty and risk

High speed

High change

Diverse project teams

DistributedFile:decision-making
34
case_studies.PPT
Definition:
Application Service Provider - ASP
e-Business Projects

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
Yogi Schulz
File: case_studies.PPT
35
The last of the
Computer Viruses list
e-Business Projects

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.
Yogi Schulz
File: case_studies.PPT
36
Managing e-Business Projects:
Risks, Issues & Solutions
e-Business Projects

Yogi Schulz
Management Consultants
700, 400 - 5th Ave. S.W.
Calgary, Alberta Canada T2P 0L6
Phone/Fax: (403) 249-5255
E-mail: [email protected]
Web: www.corvelle.com
 President of Corvelle Management Consultants
 Information technology related management consulting
 Project management and systems development
 Computing Canada & Calgary Herald columnist
Yogi Schulz
File: case_studies.PPT
37