INMA_A01.QXD

Based on preliminary findings by Brian Smith, Daniel et al. (2002) have suggested

that planning styles adopted by organisations for e-commerce will be governed by a

combination of market complexity and turbulence. Smith identifies three main modes

of strategy development:

1 Logical rational planning. Uses analytical tools and frameworks to formulate and imple-

ment strategy.

2 Pragmatic incremental. Strategy develops in response to minor adjustments to the

external environment.

3 Subjective visionary. Strategy is the result of a leader, typically dominant or charismatic.

Daniel et al. suggest that in low-complexity high-turbulence markets vision and incre-

mentalism will be dominant, that in high-complexity low-turbulence markets rational

planning approaches are dominant, and that in highly complex, turbulent markets all

three styles may be required.

Kalakota and Robinson (2000) recommend a dynamic, emergent strategy process spe-

cific to e-business. The elements of this strategy approach are shown in Figure 4.5. The

emphasis is on responsiveness with continuous review and prioritisation of investment

in new Internet applications. Clearly, the quality of environment scanning and informa-

tion collection, dissemination and analysis and the speed of response will be key for

organisations following such a responsive, emergent approach. One example of an

approach to collecting this market event data is competitive intelligence orCI.

We will now start reviewing the four main stages of Internet marketing strategy

development.

A GENERIC STRATEGIC APPROACH

Competitive
intelligence (CI)
A process that
transforms
disaggregated
information into
relevant, accurate and
usable strategic
knowledge about
competitors, position,
performance,
capabilities and
intentions.

Figure 4.5 Dynamic e-business strategy model

Source: Adapted from description in Kalakota and Robinson (2000)

Knowledge

building and

capability

evaluation

Feedback Key

insights

Events

E-business

blueprint

(planning

applications)

Priorities Key

objectives

E-business

design

(business

goals)

Applications

development

and

deployment