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Kevin and Debra Rollins Center for eBusiness - e-Business Roadmap for Success
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Kevin and Debra Rollins Center for eBusiness

e-Business Roadmap for Success

e-Business Roadmap for Success

Dr. Ravi Kalakota and Marcia Robinson

A book review by D. Richard Dance, CPA and Principal of SoftResources LLC

April 2001

The purpose of this book is to examine the e-business blueprint and offer step-by-step guidance in choosing and implementing the right strategies to survive the e-commerce onslaught and succeed. The focus of the book is practical; first Kalakota and Robinson focus on design and strategy, then on e-commerce applications.

A. Introduction
The purpose of this book is to examine the e-business blueprint and offer step-by-step guidance in choosing and implementing the right strategies to survive the e-commerce onslaught and succeed. The focus of the book is practical; first Kalakota and Robinson focus on design and strategy, then on e-commerce applications.

B. Mind Map of the Book's Contents.
This table charts the book's approach.

Preface  
Various e-Business Design Elements Chapter 1. From e-Commerce to e-Business
Chapter 2. E-Business Trend Spotting
Chapter 3. Think e-Business Design, not Just Technology
Chapter 4. Constructing the e-Business Architecture
Enterprise Application Discussions
 Chapter 5. Customer Relationship Management (CRM): Integrating Processes to Build Relationships
Chapter 6. Selling-Chain Management (SCM): Transforming Sales into Interactive Order Acquisition
Chapter 7. Enterprise Resource Planning (ERP): The e-Business Backbone
Chapter 8. Supply Chain Management (SCM): Inter-enterprise Fusion
Chapter 9. E-Procurement: The Next Wave of Cost Reduction
Chapter 10. Knowledge-Tone Applications: The Next Generation of Decision Support Systems
Challenges in Moving to an
e-Business Firm		 Chapter 11. Developing the e-Business Design
Chapter 12. Translating e-Business Strategy into Action
Endnotes  
Index

Each chapter follows this outline:

What to Expect A couple of paragraphs about the chapter.
Chapter Body Chapter contents are covered here.
Memo to the CEO A couple pages of questions for strategic integration.

C. Definitions

One of the key purposes of the book is to show that e-business and e-commerce is much more than the buying and selling of goods on the Internet. Therefore, the definitions provided are instructive.

Their Definition of e-Commerce
E-commerce is buying and selling over digital media.

Their Definition of e-Business
e-Business, in addition to encompassing e-commerce, includes both front- and back-office applications that form the engine for modern business. e-Business is not just about e-commerce transactions; it's about redefining old business models with the aid of technology, to maximize customer value. e-Business is the overall strategy, and e-commerce is an extremely important facet of e-business.

D. The Main Message
Kalakota and Robinson believe that visionary firms realize the next wave of customer-centric innovation requires integration of processes, applications, and systems on an unprecedented scale. They think businesses should ask themselves three questions:

1) How will e-commerce change our customer priorities?
2) How can we construct a business design to meet these new customer priorities?
3) What technology investments in applications must we make to survive, let alone thrive?

Another key message the authors impart is that the implementation of application clusters represents a total overhaul of enterprise systems that must be done for e-business success. What are these clusters that form the body of content in the book?

E. Pleasant Surprises Found in the Book
This table shows the page number and idea presented that represented an expected and pleasant surprise of information:

Page #
Pleasant Surprises
5 The 8 rules of e-Business are perceptive. I'm not sure if I agree with Rule 4 about outsourcing, but the other seven are pretty good and each rule is explained in various parts of the book.
11 Customers want companies to continuously improve in speed, convenience, personalization, and price.
30-31 Their discussion of the difference between fads and trends is enlightening. Fads come and go. Trends last 5 - 10 years. They then provide 15 major trends grouped into 4 categories.
57 Their 3 steps of e-business design consist of self-diagnosis, reversing the value chain, and choosing a narrow focus.
63 Operational excellence depends upon the following: efficient leveraging of assets, management of efficient transactions, management of sales intelligence.
83 Making application investment decisions is rising to the top of the management agenda. Hey - we sure see that is true in our software selection business.
89-92 The author's treatise on the 6 problems caused by a lack of integration, the problems caused by legacy systems, and the 3-stage evolution of business applications is worth the price of the book itself.
106-107 The five stages of e-business design are before their time. For a book published in 1999, these ideas are just as relevant today.
122 Their 5 types of integration drives the point home about the universal trends that are forthcoming.
131-133 An added bonus is the 12 steps for building a CRM infrastructure. When I read these three pages I wanted to buy the book for every client for which we did CRM software selection.
172 This question for software selection is also worth the price of the book. Companies should be asking "what kind of company do we want to be?" versus what features do we need in a software package.
188 The two pages on the future of ERP applications are pretty accurate, especially for a book published in 1999.
206-210 The explanation of the 5 elements of supply chain planning along with the definitions of PTP, ATP, and CTP are educational, clear, and informative. Coupled with figure 8.6, this is the type of overview I'd give to shop floor personnel to let them see beyond their job into how the whole process works.
233 The distinction between purchasing and procurement is made clear and useful.
245 The 5 integration criteria for supply chain solutions could be a useful roadmap.
279 The authors have correctly identified the three main reasons for Knowledge Management system backlash.
288 Figure 10.5 is a great chart on Knowledge-Tone Architecture as they call it.
292 Figure 10.4 is a reference work on OLAP types and terminology. It defines desktop OLAP, ROLAP, MOLAP and hybrids.
335 The four levels of application in business was insightful.

F. Disappointments Found in the Book
As I was reading the book there were several disappointments where the book didn't meet my expectations.

Page #
Disappointments
2 Writers have a tendency to pick on brand name companies and extol them as though they can do no wrong, or that a fast rise in sales is the only measure of success, or as though they are the only companies to consider. For example, Amazon.com, CISCO, and Microsoft Expedia are mentioned throughout the book. Amazon has and will have its struggles, CISCO will have its downturn, and there are lots of travel internet sites other than Expedia to choose from. We need to be as evenhanded as possible.
113 The author's view of CRM as shown in the diagram on this page, and page 119, is somewhat limited. There is much more to CRM functionality than their view. CRM products are very diverse and don't fit into their shoebox.
137-163 Other than page 152 which had a chart of the order acquisition process, Chapter 6 on Selling-Chain Management seemed to be more filler material than something the authors were enthusiastic about.
174 The authors talk about commercial off-the-shelf packages as COTS, which is rarely heard these days. That was a more fashionable term when businesses wrote a lot of their systems themselves versus buying a software package. Also, throughout the ERP chapter they tend to focus exclusively on the big software firms favorably even though some, such as SSA, have not faired well, while others are thriving in the mid-market space and are not mentioned. Most of the examples in the book are about large firms.
226-227 The eight steps for supply chain success seems a bit too nebulous and academic for me.
256 Same with the e-procurement roadmap. An actual manager or CEO would be hard pressed to complete the steps. There is much more involved than what they portray.

G. Who the Book is Best Suited For, and Not Suited For

Suited For
Not Suited For
Senior management, strategic planners, corporate executives, and IT managers developing and executing strategies of larger firms. This book is not suited for small or mid-sized businesses that work in a manner different from the author's approach.
It is also helpful to consultants and business school students who want some ideas about e-business.

H. Conclusion

The book has some great educational value, but I'm not sure that Chapter 11 "Developing the e-Business Design" sums it up for me in a practical, doable manner. The authors recommend 4 phases:

1. Knowledge Building - 10 steps
2. Capability Evaluation - 2 steps
3. E-Business Design - 3 steps
4. Strategy into Action - 10 steps

It is so academic that I looked to Chapter 12 for how to put this strategy into action. The action steps were not exactly there. The figure 12.3 e-Business Funnel was useful but in the end the authors conclude that "the problem is not technology: the problem is leadership" and then talk about delegation, project prioritization, and business case elements as though they are the answers.

My recommendation - Borrow the book from a library. It is useful, but don't expect it to take you the whole way. Version 2.0, which will be reviewed next month, is the one to spend your money on.

I. Where to Obtain the Book

It can be purchased for $31.96 directly from the following sources:

Amazon.com's web site (www.amazon.com)
Booksamillion web site at (www.bamm.com)
Barnes and Noble web site (www.bn.com)

This book is not available via Contentville due to its publication date. You may also be able to find good used copies.

The suggested retail by Addison-Wesley is $39.95 U.S. and $59.95 Canadian.

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