| Sequoia it development methodology |
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Design one or several scenarios
Target scenario: Imagine and choose a target scenario for the new information system
The scenarios description should allow:
to measure the stakes and risks
to evaluate the costs and the planning of the solution.
Choose one (or more)
global (marketing, it & organization) scenario(s)
How e-commerce will be integrated with your existing business processes ? Locate your strategy between these two extreme situations :
Isolate the e-business system from the existing system
In this option, the existing system is not reegineered for the e-commerce purpose.
Typical choices are :
1. information only
define which information to provide
general information : location, CEO speech, reports, ...
marketing information : the visitor is a potential customer
which segments ? which products ?
which tools or informations to make the buying decision easier ?
define how the user will get this information :
- purely static content
- interactive selection and navigation tools
2. simple purchasing processes without interaction with the management software
After having chosen the products in the information-only area, the customer can now buy them online but there is no integration with the management software.
e.g. no stock control, no reservation, the orders need to be re-introduced manually in the management system, no information about the delivery delay nor about the order progress status
Even in these cases, the scope of the study could not be limited to the new web information system.
1. Is the company able to grow if the sales get higher ?
2. As the internet is not restricted to one precise geographic area, are you ready to export ?
Are your delivery and payment collection processes designed to support this expansion ?
Otherway, how will you do to limit your offer ?
By linking the web applications and your management database and processes you will become able to offer new, high value-added products or services.
Examples of complex processes requiring deep integration with the corporate information systems and even the suppliers ones :
1. Sales of products with stock and delivery time control
2. Sales of products or services, and the customer can choose the delivery time
3. Reservation of airplane travels among different companies of many countries
4. Let the customer check his order status : production planned, manufactured, waiting to be delivered, being shipped, ...
Manufacturers and suppliers will have to manage the conflict between distributing through retailers and selling directly to consumers at the same time. Two guidelines :
- perform market segmentation and avoid cannibilization
- product segmentation (e.g. brands)
- territorial segmentation (e.g. only one distributor by area)
- complementary segmentation
- pull-based strategy : make the customers demand your products
- technology-led : be the best
- brand-driven
Build a preliminary
conceptual and functional model for the new business
organization and the new information system
Description of the system applications
think about :existing applications that apparently do not need to be replaced but in fact should (e.g. accounting software because multi-currency is not supported)
interfaces between existing and new applications (e.g. e.g. ordering form to the materials management system)
Conceptual Information Model
Conceptual Functions (processes) Model
Note: you can find the description of these techniques in the preliminary study step.
Do not be too precise at this step ! All you need now is a good inventory: which data and functions will be necessary to answer the businness requirements ? A typical aim at this step is to prepare the criteria for the selection of an e-commerce software package.
automation level
sharing of responsibilities, organization, documents and information flow
search for sketchs of technical solutions: hardware, software, networks, development tools, ...
define the main validation and selection criteria concerning the new hardware, software, development tools, programming techniques, ...
Do a first balance of the various
scenarios in terms of
costs, needed resources
- e-business system costs, including security, availability 24 hours / 24, payment methods
- startup costs
- operation and maintenance recurrent costs
- other costs: internal costs, reorganization
benefits
- cost chain: how this service saves money
- automating processes
- avoiding brochures mailings
- ...
- value chain: how this service earns money
- increasing sales volume
- increasing per-unit value
- new products or services
- ...
planning
risks
- risks of exploiting e-business (risks of the solution)
- sales level decrease in existing distribution channels
- existing retailer customers may cut off distribution
- risks of preserving existing relationship (risks of the non-solution)
- dependence versus the existing distribution channels
- as demand for e-business grows, not in position to exploit it
Key factors:
the requirements that would not find a solution
the possible limits of the solution (never perfect), between others in terms of organization.
At the end of this phase, you should:
(or at least the lowest possible number)
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