To create innovative business designs that deliver value, we must first answer some questions:-

First answer the question; What business design do we need to make our customers’ experiences unique and memorable? i.e. a good way to outdo competition is to please customers in new ways. E-Business uses technology and e-commerce processes to build better customer relationships and create new value propositions. This can be achieved, for instance, by providing good service which is important because it is what a customer expects.

Next answer the question, What capabilities and competencies do we need to create rich experiences? Here we define capabilities needed to match customers’ most important priorities e.g. good service. These decisions determine what the customer sees when interacting with an e-business design. For instance, value according to Dell Computer translates into convenience of purchasing a high-quality product at a low cost. By enabling web-based sales, they have reduced the hassle as well as the cost of purchasing for a customer. The Dell is not only innovative in how it sells, but also in how customers purchase computers.

Now, answer these questions: How much does your company manufacture internally and how much does it outsource? How do you structure your organization for efficiency? Are you function or process oriented? How do you sell to the customer – through a sales force, reseller channels or a call center (direct)? How do you distribute your product?

Once these tough decisions required to coordinate processes are made, we must then figure out how to change our company in the desired manner (e.g. to gain desired profitability). We must decide to integrate and tailor legacy infrastructure to meet new requirements.