00FMEvans.F 10/16/01 6:24 PM Page i Business Agility Strategies for Gaining Competitive Advantage through Mobile Business Solutions 00FMEvans.F 10/16/01 6:24 PM Page ii 00FMEvans.F 10/16/01 6:24 PM Page iii Business Agility Strategies for Gaining Competitive Advantage through Mobile Business Solutions Nicholas D. Evans Prentice Hall PTR One Lake Street Upper saddle Rivber, NJ 07458 00FMEvans.F 10/16/01 6:24 PM Page iv CIP data to come Editorial/Production Supervision: William P. Mara Acquisitions Editor: Jim Boyd Marketing Manager: Manufacturing Manager: Cover Design Director: Jerry Votta Cover Design: Interior Design: Meg Van Arsdale © 2002 Prentice Hall PTR Prentice-Hall, Inc. Upper Saddle River, NJ 07458 Prentice Hall books are widely used by corporations and government agencies for training, marketing, and resale. The publisher offers discounts on this book when ordered in bulk quantities. For more information, contact: Corporate Sales Department, Phone: 800-382-3419; Fax: 201-236-7141; E-mail: [email protected]; or write: Prentice Hall P T R, Corp. Sales Dept., One Lake Street, Upper Saddle River, NJ 07458. All rights reserved. No part of this book may be reproduced, in any form or by any means, without permission in writing from the publisher. Printed in the United States of America 10 9 8 7 6 5 4 3 2 1 ISBN 0-13-066837-0 Prentice-Hall International (UK) Limited, London Prentice-Hall of Australia Pty. Limited, Sydney Prentice-Hall Canada Inc., Toronto Prentice-Hall Hispanoamericana, S.A., Mexico Prentice-Hall of India Private Limited, New Delhi Prentice-Hall of Japan, Inc., Tokyo Pearson Education Asia P.T.E., Ltd. Editora Prentice-Hall do Brasil, Ltda., Rio de Janeiro 00FMEvans.F 10/16/01 6:24 PM Page v Acknowledgments This book owes a great deal of thanks to the people that have inspired me as leaders in their respective industries and professions. The exec- utives and venture capitalists who have expressed interest and enthu- siasm for this project and who helped me with success stories, manu- script review, and in validating my vision for Business Agility. In particular, I’d like to thank (in alphabetical order by company): Mark Sherman (Battery Ventures), Randy Chappel and Craig Thomas (Goff Moore Strategic Partners), and Rob Miles (Vortex Partners). I’d like to thank Jim Boyd, Executive Editor at Financial Times Prentice Hall, for his interest in bringing my idea to fruition and for our many conversations (often highly amusing) during the course of the project. I’d also like to thank Crissy Statuto for the initial referral to the folks at FTPH, and Wil Mara, Nina Scuderi, and Ronnie Bucci for their great work on the production side. For their help in providing case studies and company insights, I’d like to thank (in alphabetical order by company): Theresa Enebo and Chuck Grothaus (ADC Telecommunications), Joe Lacik and Jim Park 00FMEvans.F 10/16/01 6:24 PM Page vi vi >> Business Agility (Aviall), Scott Heintzeman and Carol Nissen (Carlson Companies), Nancy Liberman and Tom Svrcek (EnvoyWorldWide), Susan Burud (FT Interactive Data), Laura Rippy (Handango), Petri Karppinen (More Magic), Dennis Andruskiewicz, Kevin Conklin and Lauren Garvey (Office Depot), Simon Gawne (Red-M), Jeff Cummings (Rental Service Corporation), Amir Alon, Nick Howarth and Nick Ward (Sirenic), Paul Reddick (Sprint PCS), and many others. Thank you all for taking the time to talk with me and for sharing your thoughts and successes. Finally, I’d like to thank my wife, Michele, and my two sons, Andrew and David, for their patience with me and for allowing me to take family time on evenings and weekends in order to put this book together. Without your encouragement and support, this book would not have been possible. Readers who would like to correspond with the author can contact him at [email protected]. 00FMEvans.F 10/16/01 6:24 PM Page vii Contents Foreword xiii 1 Introduction 1 Formula for Business Agility 4 Principles of Business Agility 5 Principle #1: The Digital Economy Demands Business Agility 5 Principle #2: Business Agility Involves Shaping Technology Around Ourselves 8 Principle #3: Business Agility Is Achieved Via M-Business 9 Principle #4: Every Business Will Become an M-Business 9 Principle #5: M-Business Will Drive Both Business and Technical Transformation 14 Principle #6: Industry Convergence Creates New Threats and Opportunities 15 Action Items for Business Agility 16 Step #1: Make M-Business Part of Your Business Strategy 16 Step #2: Make the IT Department a Strategic Partner 17 Step #3: Pursue a Holistic M-Business Strategy 18 Step #4: Exploit and Defend Your Position in the New M-Business Value Chain 19 00FMEvans.F 10/16/01 6:24 PM Page viii viii >> Contents Step #5: Design Business Processes to Take Advantage of M-Business 21 Step #6: Design Technical Architectures to Take Advantage of M-Business 21 Step #7: Design for Rapid Change in Process and Technology 22 Step #8: Focus on User Acceptance and Training 23 Step #9: Measure the Results of M-Business Initiatives 24 2 The M-Business Evolution 27 Global Trends 29 Searching for the Killer Application 32 Evolution to 3G Networks 32 Applications by Region 33 Drivers and Barriers to Adoption 36 Barriers to Adoption 38 Regulatory Environment 40 Telecom Environment 43 Wireless Data Services 45 M-Commerce Services 46 Wireless Application Service Provider Platforms 50 IT Environment 51 Wireless Internet Value Chain 53 Value Chain for Enterprise Wireless Data 54 Value Chain for Consumer Wireless Data 55 Key Applications 61 Wireless Enablement of Employees 62 Wireless Enablement of Customers 64 Wireless Enablement of Partners and Suppliers 64 3 Design of an M-Business 69 M-Business Flexibility 70 The Dynamic Value Proposition 70 00FMEvans.F 10/16/01 6:24 PM Page ix Contents >> ix M-Business for Employees 74 Tradeoff Between Enterprise Standards and User Roles 75 Focus on User Adoption and Long-Term Management 75 M-Business for Customers 76 A New Time-Slice for Customer Loyalty 76 Context- and Location-Specific Loyalty 77 Preference-Driven Commerce 78 Wireless Advertising 79 M-Business for Partners 79 Alliance Value Chain 80 Alliance Life Cycle 82 4 Process Models and Applications for M-Business Agility 85 Process Models for M-Business Agility 86 M-Business Opens New Process Possibilities 87 Using M-Business to Improve Existing Processes 88 Applications for M-Business Agility 88 Executive Dashboard and Business Intelligence 89 Sales Force Automation 95 Field Force Automation 101 Customer Relationship Management 105 M-Business CRM for Customers 106 Increasing Complexity of Customer Interactions 106 Providing Intelligent Customer Service 107 M-Business CRM for Employees 108 Supply Chain Management 111 “Wireless”Versus “Mobile”Applications in the Supply Chain 112 5 Industry Examples 119 Communications and Content 120 High Tech 124
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