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Strategic planning of electronic services

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Strategic planning of electronic services

The competitive environment that exists today, and the constant use of Internet-based Information Technology (e-technology) has led companies to develop new business strategies to achieve a competitive advantage. The combination of Internet-based information technologies and business processes have given rise to new business concepts with an electronic approach, that is, "e-concepts". Then, new Internet-based services ("e-services") emerged that companies use both inside and outside their business to achieve differentiation in the market. The implementation of these services have had a strong impact on companies because they modify business processes.It is therefore important to carry out a strategic planning of the "e-technologies" that will support a company to achieve the desired competitive advantage. This article proposes a model for the strategic planning of «e-services».

1. introduction

The competitive environment that exists today has been generated largely by the constant use of Information Technologies based on Internet.

net (e-technology). This has led companies to develop new business strategies, not only to adapt to this environment, but to achieve a competitive advantage in this environment.

To achieve this adaptation, companies have been forced to carry out exhaustive analyzes in order to combine "e-technologies" with business processes. These analyzes and modifications have generated innumerable trends such as reengineering among others. On the other hand, the combination of "e-technologies" with business processes have originated new electronic concepts (e-concepts) that are handled in the electronic environment, which are immersed in electronic business (e-business, e-commerce, business-to-business, etc.), non-profit companies and non-governmental organizations.

The need arises then to adapt the "e-technologies" and the "e-concepts" according to the needs and issues of each company. The way in which companies have managed to involve "e-technologies" with these needs is through new Internet-based services ("e-services") that they use both inside and outside their business, to achieve a differentiation in the market.

The implementation of "e-services" has had a strong impact on companies because sometimes companies are not prepared for a change in their business processes. Therefore, it is important to previously carry out a strategic planning of the "e-services" that will support a company to achieve the desired competitive advantage.

2. Strategic Planning of «e-services»

The intervention of the Internet in the environment has modified the traditional way of doing business, and at the same time the way in which information must move. Therefore, companies are faced with the need to develop new service strategies in order to stand out, and not only meet the needs required by their customers, but also the needs that arise within the company itself.

However, companies have realized that the implementation of "e-services" is not an easy task, they have encountered numerous obstacles caused by a lack of knowledge of the impact that these will cause throughout the business. Then a new need arises, that of strategically planning the incursion of an "e-service" within the business.

Today, strategic planning has been a tool that has evolved, ranging from process planning and situational analysis to enter new markets to the implementation of "e-technologies" and "e-services".

Within a Strategic Planning of "e-service", it must be determined what should be done, how it is going to be done and how a company can realize, if the "e-services" meets or not the desired and established objectives.

Where a genuine "e-service" strategy involves the involvement of all business processes, likewise their readjustment (reengineering). This process begins with an analysis of the current situation of the company, evaluating the understanding of the strategy, the operational processes and the acceptance of "e-service" within the organization, continuing with the necessary modifications to adapt to the "e-service", and the infrastructure of "e-technology" required, this in order to improve the efficiency and productivity of the company. And this is how companies begin to devise a way to improve their services that will give them a differentiation from their competitors.

Once this process has been carried out, the information architecture is designed that identifies the global information needs of the company, developing an «e-technology» model that aims to transform business strategies into a technological strategy. Subsequently, the architecture is built, the key elements, its essential characteristics (hardware and software, etc.) are defined, and the detailed design of the "e-services" operation models continues, which describe the operation of the computer area. Finally, a planning model is elaborated, where the priorities for the implementation of the «e-technology» for the «e-service» and the operational processes are established. An action plan is defined taking into account the risks and the order of development of the projects,and the return on investment of said implementation.

Within a strategic planning model of "e-technologies" an administration of the same is visualized, where these are initially planned to achieve a competitive advantage. This is carried out by establishing the desired business strategy, focusing on the current review of the company and establishing the point or goal where you want to go and the elements that will intervene to achieve your objective.

3. Strategic Planning Model for «e-services».

By mixing e-technologies with traditional business concepts, the traditional business structure is affected. In response to this impact, countless e-technology strategic planning models have emerged, facilitating their implementation. Strategic planning models have allowed organizations to align their business strategies to a competitive environment, and have allowed them to develop a competitive advantage.

The Strategic Planning Model for "e-services" proposed in this article was born from the need to create a model that involves strategic planning in general, strategic planning of information technologies, the factors involved in an electronic environment and the different existing business models today.

The "Strategic Planning Model for E-Services" aims to guide the company through the set of ordered steps that comprise it, culminating in the development and execution of a Business Plan for the implementation of an "e-services". The model is provided with 4 phases based on the fact that the «e-service» comes from an electronic idea or concept (e-concept) to be implemented. The following table explains the elements involved in this model.

PHASE 1 Strategic formulation of the «e-concept» PHASE 2 Competitive Environment PHASE 3 Implications of the «e-concept» in Business Alignment. PHASE 4: Feasibility of implementation
  • Current business description Key business processes Definition of the e-concept to be analyzed
  • Behavior of the «e-costumer» Industrial competitive environment
  • Way in which the e-concept will positively impact the business Factors that will implement the e-concept according to the impact.
  • Specification of the infrastructure of the «e-concept» Necessary work team Legal aspects Financial planning Business plan.

Strategic Planning Model for «e-services»

1. Strategic formulation of the «e-concept»

The strategic formulation consists of the recognition of strategic statements for the business, specific objectives to be achieved and the necessary movements to understand the future and the stages in which each objective will move. The formulation of the strategy is proposed to frame all the dominant factors of a company with a sequential involvement in it, both business and functional perspectives. The objective of this phase is to define the strategy based on an «e-concept», and its purpose within the business.

3.2 Competitive Environment.

Today the purchasing decision process is basically based on stimuli regarding the customer's reaction and in turn on the characteristics of the customer, the environment that surrounds him, the technology, and the logistics that exist so that he can carry out your purchase. On the other hand, it is also important for companies not only to evaluate the behavior of their customers, but also the competitive environment in which they surround themselves, that is, to know their competitors in order to be successful in their strategy based on "e-technology".

This phase analyzes 2 points based on other support models:

• Behavior of the e-costumer: Currently the consumer or customer represents a key point in the business. The model proposed by Turban (2000), emphasizes its relevance because the future behavior of the seller will be derived from the customer's behavior, that is, the service provider company. This analysis makes an approach of consumer behavior seen electronically (e-costumer)

• Industrial competitive environment: This point refers to the traditional model of Porter (1998), for analysis of competitors. The threat to new competitors, the bargaining power of suppliers, the bargaining power of buyers, and the threats of substitute products.

3.3 Implications of the «e-concept» in business alignment

The feasibility of implementation is a point that involves finances, and the feasibility of carrying out or not a specific project. A company that adopts an "e-concept" as a competitive advantage strategy must know in detail how economically it is possible to carry it out or not. According to Laudon (2001) and O'Brien (2002), the feasibility priorities in an organization are given by:

• Technical feasibility

• Operational feasibility

• Cost / benefit analysis

The proposed model adds complementary factors to these priorities for a more complete analysis of the feasibility of implementing an e-service. Such factors are:

• Specification of the infrastructure of the «e-concept»: This point refers to the technical feasibility surrounding the «e-concept». Hardware and software specifications are analyzed at this point, listing all the necessary requirements to cover what is described in phase 3.

• Necessary work equipment. The implementation always requires a group of people who make the realization of a project possible. This group involves both the company itself and a consulting group and information managers. Sometimes, companies choose a specialist in some areas, and carry out outsourcing.

• Legal aspects. The Internet has caused changes within the legal framework, thus creating issues that are impossible to regulate. When buyers and sellers do not see each other, there can be illegal actions, such as fraud, theft, etc., through the Internet. Some countries have succeeded in establishing regulations and policies for the use, action and implementation of services and technologies on the Internet. It is essential for any company that wants to implement an e-service to know the regulations and the legal status that such implementation involves.

• Financial planning. The feasibility analysis is accompanied by a financing plan for said implementation, taking into account the 3 previous points. Financial planning establishes the cost of the investment in its entirety and the return on the investment.

• Business plan. When the company determines that it is feasible to carry out an e-service implementation project, the final result of a strategic planning is a business plan. In the business plan all the points to follow are mentioned to make the implementation of the «e-concept» possible.

1. Conclusions

Currently, companies with changes in the economy, globalization, and other factors that modify the competitive environment, seek alternative solutions, and identify them as strategies for their business.

Today, "e-technologies" play an important role in this environment, as they facilitate companies in a faster, more efficient and effective way to provide their services through the use of the Internet (e-services) and way to be at the forefront and also to distribute the information generated throughout the company.

The companies that have identified "e-services" as business strategies have been given the task of focusing on developing their own methodologies for strategic planning of "e-services", to adjust them to the needs to which they are exposed, and thus satisfy them and offer better services to their customers. Giving them added value and justifiable investment metrics.

This is why the strategic planning of "e-services" is a useful tool that allows companies to adjust to these changes, where strategic planning must be a process that allows them to align their objectives, mission, vision and business processes. business with defined strategies.

2. References

Clempner, Kerik Julio and Gutiérrez, Tornés Agustín, Administration and Execution of a Strategic Plan for Information Technology, University Digital Magazine, URL: http://www.revista.unam.mx/vol.3/num1/art1/ (Accessed May 12, 2002), Publication in the General Directorate of Academic Computing Services-UNAM. Ciudad Universitaria, Mexico DF March 31, 2002 Vol. 3 No. 1.

HAX Arnoldo C, Majluf Nicolas S., The strategy concept and process, a pragmatic approachs, Second Edition, Prentice Hall, New Jersey, 1996

TURBAN Efraim, Lee Jae, King David, Chung H. Michael, Electronic Commerce, a managerial perspective, Prentice Hall, 2000

PORTER Michael, On Competition, Harvard Business School Publishing, Boston, MA, 1998

LAUDON Kennet C., Laudon Jane Price, Essentials of Management Information Systems, Transforming Business and Management, Prentice Hall, New Jersey, July 2001.

O'BRIEN James A., Management Information Systems. Managing Information Technology in the E-Business Enterprise, Fifth Edition, McGraw-Hill, 2002

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Strategic planning of electronic services