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Kevin and Debra Rollins Center for eBusiness - Global Digital Business "A Perspective For Creating B2B Value"
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Global Digital Business

Global Digital Business "A Perspective For Creating B2B Value"

Tim R. Wroblewski

A book review by D. Richard Dance, CPA and President/CEO of upChannels
and Ann H. Jenkins, Office Manager of upChannels in Seattle, Washington
Copyright upChannels LLC

March 2002

Tim Wroblewski's main premise is "to become a company in the digital economy, management must develop and act upon a sound Global Digital Business Strategy" Wroblewski defines this Global Digital Business Strategy as "a set of dynamic, integrated business management and e-business decisions, custom tailored to your own firm's prospects for creating global business advantages in the new economy."

Main Premise

Tim Wroblewski's main premise is "to become a company in the digital economy, management must develop and act upon a sound Global Digital Business Strategy" Wroblewski defines this Global Digital Business Strategy as "a set of dynamic, integrated business management and e-business decisions, custom tailored to your own firm's prospects for creating global business advantages in the new economy."

Author's Background and Value

Wroblewski is an IBM executive who is also a teacher at Marguette University, with high-level academic experiences at the University of Chicago Graduate School of Business, the London Business School, and the Stanford Business School Executive Program. Wroblewski brings his educational insights and his ability to explain in a logically organized numbered fashion the basic concepts to the reader. It's well done.

Sections

Wroblewski's book is composed of five basic sections:

Section I-The Bottom Line defines a new e-corporation.
Section II-Global Digital Business Framework discusses the strategic template and infrastructure architecture that he recommends.
Section III-Emerging Business Models and the Generation Economics talks about the drive to B2B and e-markets along with design considerations.
Section IV-Next Generation Technologies and Management as Context for Innovation and Profitability presents information technology trends of the future.
Section V-Appendices include suggested readings and web sites.

Overall, this e-book is short with a little more than 100 pages, is based upon the author's hardcover book entitled "Global Digital Business.com." It is a good buy.

Section I

Key Business Processes
One of the better things Wroblewski does is define for you what he considers are the key business processes for global e-business. It is as good a list as you will find. The nine items are:

  • e-Commerce-selling and purchasing goods and services over the Internet
  • e-Care for customers-nurturing and supporting customers via the Web
  • e-Care for business partners-promoting loyalty and growth through Web-based programs
  • e-Care for influencers-providing Web access to relevant, information and resources for the press, consultants, analysts, and shareholders
  • e-procurement-facilitating alliances with trading partners and streamlining the procurement process through Internet technology
  • e-care for employees-increasing the productivity, efficiency, and skills of employees through Internet technology
  • e-marketing communications-enhancing brand image via the Web
  • e-business intelligence or knowledge management-streamlining the exchanges of information among employees, partners, and customers
  • Business-to-business/e-marketplaces-developing new emerging business-to-business market models for the Internet-aggregators, auctions, and exchanges-that are beginning to change the shape and flow of business trade

He defines these nine processes to make the point "global e-business is not just e-commerce"-something that we heartily agree with.

How To Get Started
Wroblewski's three-step process to get started with global e-business is:
1) Develop a business strategy
2) Develop an IT strategy
3) Develop a global digital business strategy that integrates items 1 & 2

Components of a Business Strategy
A business strategy is typically composed of decisions in the following areas:
1) Marketing
2) Production
3) Financial
4) Research and Development
5) Legal

He also believes that the business objectives important to the strategies include:
1) Profitability
2) Growth
3) Innovation
4) Market Share
5) Social Responsiveness

He believes that results are key and obtaining results comes by converting the strategies to actions through three processes:
1) Developing the right systems
2) Designing the right organizational structure
3) Getting the right people

That is a pretty good short course on business strategy.

IT Strategy
On explaining an IT strategy, Wroblewski is not quite as good. He could put some more depth in here; however, he does state that IT strategy must position the business to:
1) serve customer or end-user requirement needs
2) beat competition
3) meet regulatory requirements
4) satisfy employees
5) pay creditors
6) and provide a return to stakeholders

A Global e-business Strategy
He says that this strategy is about making trade-offs among:
1) customers and markets
2) products and service offerings
3) and Access paths (channels to market)

A global e-business strategy should help a company "identify and rationalize" e-business options relative to key business issues that confront them.

Wroblewski's two guiding principals are:
1) e-Business is a tangible, substantial opportunity
2) e-Business is about making money and therefore must be executable, commercializable, and profitable

The New e-Corporation
Wroblewski sees 10 characteristics of new e-corporations that make them virtually impossible to compete with:
1) They have new, unconventional structures
2) They virtually integrate some or most components of the value chain
3) They buy pieces of the value chain at marginal cost
4) They have virtually no overhead
5) They are flexible (able to change quickly)
6) They gain first mover advantage
7) They thrive on innovation
8) They undertake risky projects
9) They package sets of technologies in a distinguished way, gaining synergy by using technology components as a whole rather than as individual parts
10) They are not easily visible

Four Key Competencies
Wroblewski believes that the new e-corporation builds four core competencies:
1) Virtual integration of the value chain so they can add pieces at marginal cost
2) Good execution
3) Good risk management
4) Great negotiating skills


Section II

Six Emerging e-Technologies
Wroblewski says that it is important to be aware of these six technologies that can improve the performance, ease of use, and integration of your strategies.

1) e-Business innovation and intelligent infrastructure
2) Collaborative e-commerce
3) Telecommunications
4) Digital convergence
5) Pervasive computing
6) e-Sourcing

e-Business Infrastructure
Wroblewski is particularly clear in a short, almost hidden statement he makes about e-business infrastructure. He said that after you have your business strategy laid out that you should focus on the IT side. And the e-business part of the IT side should "focus on the business users by examining the impact of three important layers in the knowledge chain:"
1) Presentation - what and how the end-user sees things on their desktop
2) Functionality - what functionality resides in the software on the server
3) Information - what actual content or data is available

This little nugget of information was actually quite good.

Global Digital Business Strategic Application Template (SAT)
This is the heart of the book and the kernel that is worth the price. It only takes Wroblewski 30 pages to get there before it is unfolded to your view. Mighty useful stuff, we take no exceptions to it.

e-Business Infrastructure
Wroblewski believes that a successful e-business relies on an infrastructure that meets 5 criteria:
1) Flexible
2) Scalable
3) Reliable
4) Manageable
5) Secure

He then goes on to explain the fine logical functions used to develop this infrastructure.

Section III

Business Marketplace
The next section of the book is where Wroblewski discusses the evolution of the supply chain, the emergence of e-markets, how to evaluate e-markets, how to create value and capture revenue, and the manner of setting prices. I found it the least engaging, as many other books have discussed this subject. Wroblewski brings his own insights to the table and I would still recommend digesting it if you haven't read a lot of e-business books lately.

Section IV

Information Technology Trends
In section IV, Wroblewski begins to explain in more depth the six emerging e-technologies that were listed in the beginning of Section II.

Four Major e-Business Phases
We particularly liked Wroblewski including the four major e-business phases that the McKenna Group researched:

Phase 1: e-Business Web Presence
Phase 2: e-Business Transactions
Phase 3: e-Business Integration
Phase 4: e-Business Creation of Value Networks

We believe there are actually more phases, but these four serve as a good basis for most companies.

Management Attributes
Wroblewski talks about the eleven common factors that drive success in becoming a global e-business and summarizes by saying "management must have a mind-set, a commitment, and an approach that are compatible with global business strategy as outlined in this book-a strategy designed to build value that will lead a company into the new digital economy."

Call to Action
After Wroblewski identifies the business case for global e-business, he then issues a 10-step call to action followed by the "five year global digital leadership question." Powerful stuff! That's how he ends the book.

Section V

There is no Section V but the Appendices serve that purpose.

In suggested readings, Wroblewski simply lists 16 books and 1 article to consider as supplemental reading. No annotations to his recommendations.

In recommended web sites, Wroblewski includes 13 annotated recommendations, including IBM sites and his book site. It also gives his e-mail address at twroble@us.ibm.com.

Conclusion

Wroblewski began the book by presenting the question, "what new skills will be demanded of effective managers in the twenty-first century?" The issue for him is management, not technology. And that is precisely what makes this book so good. Wroblewski has tightly coupled business strategy education with IT strategy so effectively that it is beneficial to buy the book today. For the prices listed below how can you refuse?

Where to Obtain the Book

It can be purchased directly from the following sources:

Amazon.com web site (www.amazon.com) Paperback | $20.00 or Digital (download: Adobe Reader) | $8.95
Barnes and Noble web site (www.bn.com) Digital (download: Adobe Reader) | $8.95

Find out more at www.globaldigitalbusiness.com
At Tim Wroblewski web site you can engage in the following activities:

  • Read a Bio of Tim R. Wroblewski
  • Read the Press Release of January 2002
  • Order the book

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