What is eStrategy?

Definition of eBusiness and eStrategy.

e-Business is the business use of the Internet. The “use” results in a “business benefit” such as higher revenues, reduced costs or reaching an underserved market. “Internet” includes all technologies and applications enabled by the Internet.

e-Strategy is an iterative process to create and/or modify an organization's business model for eBusiness:

  • It is a process not a point in time event
  • It is iterative - success comes after multiple - do and learn – cycles
  • The key is the creation/modification of the business model not designing websites to address business requirements
    • The former focuses on the business
    • The latter focuses on integrating emerging technology; that is the purview of IT Strategy
  • e-Strategy sets direction for the entire organization
    • It is one and the same as the "business" strategy. If one must, then eStrategy is a subset of business strategy
    • It is not "IT Strategy" for the internet. Much like business strategy drives IT Strategy, eStrategy drives IT Strategy
    • eBusiness affects the entire organization so the focus of eStrategy is on the entire business not on creating a new distribution channel or creating a customer portal or targeting a new internet based market segment
    • eStrategy focuses on creating maximum value not on creating revenues or reducing costs through the internet

eStrategy helps create shareholder value. In other words, it helps identify the "new" business model to compete in the "new" world that now includes the internet based ecosystem

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Posted on 10/22/2008 by

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