Digital Transformation

• Strategic planning is the “process of developing and maintaining a strategic fit between the
organization’s goals and capabilities and its changing market opportunities”
To identify the company’s goals:
Growth. How much can the company reasonably expect to grow in terms of revenues, and how
fast?
involves a thorough understanding of the competition, product life cycles, and market factors
• Competitive position. How should the company position itself against other firms in the
industry? Viable positions are industry leader (Google), price leader (Price- line), quality leader
(Mercedes), niche company (eMarketer), best customer service (Amazon), and so forth.
Geographic scope. Where should the company serve its customers on the continuum of local to
multinational?
Other objectives. Companies often set objectives for the number of industries they will enter,
the range of products they will offer, the types of channels they will use, ways to reduce costs,
and so on
Environment, Strategy, and Performance
 The e-marketing plan is normally a part of an organization's overall marketing plan It
starts with the business environment
 Organizations perform SWOT (strengths, weaknesses, opportunities, threats) analyses
to discover what strengths and weaknesses they have to deploy against threats and
opportunities, leading to e-business and e-marketing strategies
 Organizations select e-business models, and then marketers formulate strategy and
create marketing plans that will help the firm accomplish its overall goals
 The final step is to determine the success of the strategies and plans by measuring
results
 Performance metrics are specific measures designed to evaluate the effectiveness and
efficiency of the e-business and e-marketing operations

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Strategy is the means to achieve a goal. It is concerned with how the company will achieve its objectives

The tactics are detailed plans to implement the strategies

• Starbucks’s aims to improve its product mix by seeking product ideas from consumers. It then
creating the My Starbucks Idea Web site.

• Objective - improve its product mix

• Strategy - product ideas from consumers

From Strategy to electronic Strategy

E-business strategy is the deployment of enterprise resources to capitalize on technologies for reaching
specified objectives that ultimately improve performance and create sustainable competitive advantage

• Thus, when corporate-level business strategies include information technology components

(social media, digital data, data- bases, etc.), they become e-business strategies.

From business models to e-business models

Business model is a method by which the organisation sustains itself in the long term and includes its
value proposition for partners and customers

Critical components appraise the fit of a business model for the company

 Customer value. Does the model create value through its product offerings that is differentiated
in some way from that of its competitors?
 Scope. Which markets does the company serve, and are they growing?
 Price. Are the company’s products priced to appeal to markets
 Revenue sources. Where is the money coming from?
 Connected activities. What activities will the company need to perform to create the value
described in the model?
 Implementation. The company must have the ability to actually make it happen,
 Capabilities. Does the company have the resources
 Sustainability. The e-business model is particularly appropriate if it can create a competitive
advantage over time

E-business models

What makes a business model an e-business model is the use of information technology

E-business model is a method by which the organization sustains itself in the long-term using
information technology

E-business models can capitalise on digital data collection and distribution techniques without using
the internet

Similarly, when these data are available through the company’s proprietary computer network
(intranet), the firm is applying e-marketing without the public internet