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E-Business Value Matrix

1. The document presents an e-business value matrix that evaluates initiatives based on two dimensions: practice innovation and business criticality. Businesses should strive for initiatives that are high on both dimensions. 2. The matrix quadrants - new fundamentals, rational experimentation, breakthrough strategies, and operational excellence - are defined based on their relationship to the economy, attributes, and risk characteristics. Initiatives in the upper halves of the matrix tend to display or capture competitive advantage. 3. The matrix can be used to assess initiatives by partners and competitors, perform gap analyses, allocate resources among initiatives based on risk and return, and monitor the evolution of initiatives over time.

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Naveen Pandey
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946 views8 pages

E-Business Value Matrix

1. The document presents an e-business value matrix that evaluates initiatives based on two dimensions: practice innovation and business criticality. Businesses should strive for initiatives that are high on both dimensions. 2. The matrix quadrants - new fundamentals, rational experimentation, breakthrough strategies, and operational excellence - are defined based on their relationship to the economy, attributes, and risk characteristics. Initiatives in the upper halves of the matrix tend to display or capture competitive advantage. 3. The matrix can be used to assess initiatives by partners and competitors, perform gap analyses, allocate resources among initiatives based on risk and return, and monitor the evolution of initiatives over time.

Uploaded by

Naveen Pandey
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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E-Business Value Matrix

A strategic planning technique


Research has shown that the two most important
dimensions in respect to driving competitive
advantage in e-business. 
1. Practice Innovation
2. Business Criticality
The businesses should strive for initiatives high on
both dimensions. 
Generally, each discipline can be evaluated in terms
of the level of risk an organization is willing to take
on, as well as the level of reward it hopes to secure.
Quadrant Relationship Definition Attributes; Risk
with E- Characteristics
conomy

New Rule Taker The “Web-ified” versions of Cost Savings


Fundamentals existing applications are lower Web-ification
risk, less critical, and have more
modest returns. Experience Building
Low Risk
Rational Rule Shaker The firm attempts to breakaway New Market Segments
Experimentation from existing business model. Business Model Shift
Initiatives attempt to create new
markets and revenue growth. New Revenue Source
Low/Moderate Risk
Breakthrough Rule Breaker Emphasis on processes and Market Creation
Strategies initiatives that impact New Business Model
competitive advantage. 
Shift Industry Dynamics
High Risk
Operational Rule Maker Internet initiatives focus on Reengineering
Excellence transforming mission critical Leveraging Strength
processes and product features
for sustained competitive Efficiency Focused
advantage. High Risk
By mapping the roles of rule makers, rule breakers, rule
takers, and rule shakers against the E-business Value
Matrix, certain conclusions about the characteristics of
these roles are revealed:
Market dominant players tend not to be rule breakers,
because they are usually more risk averse and see no
incentive in disturbing a business model that is perceived
to work.
Rule breakers are usually born on the Web.
Rule shakers are second- or third-tier companies or
companies in tangential markets, because these
companies have less to lose.
Rule makers, who tend to be early adopters, usually end
up with higher market share and higher margins.
Companies that play in the upper half of the
matrix tend to display or capture a
competitive advantage.  Although market
forces exert a counter clockwise pressure, the
matrix reinforces the notion that mapped e-
business strategies are not static and
“versioning” or constant innovation are critical
in keeping firms competitive in the new
economy.
Business managers can use the E-Business Value Matrix to
assess initiatives by partners and competitors.  This function
helps the firm perform a gap analysis to keep pace and
leapfrog ahead.  

The matrix also assists in resource allocation among possible


initiatives by reinforcing the fact that the higher an initiative is
on the matrix, the higher the corresponding risk and return. 

The matrix helps in one final forward-looking way – it allows


managers to monitor the evolution of e-business initiatives
over time.
Thank You

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