Web Business Engineering: Using Offline Activities to Drive Internet Strategies

by Nick Flor

As a Web development professional, you have significant knowledge of Internet and Web technologies, but what do you know about business strategy? You can produce a Web site that incorporates... This description may be from another edition of this product.

• Format: Paperback
• Language: English
• ISBN: 020160468X
• ISBN13: 9780201604689
• Release Date: October 2000
• Publisher: Addison Wesley Longman
• Length: 224 Pages
• Weight: 1.10 lbs.
• Dimensions: 0.7" x 7.4" x 9.2"

Customer Reviews

Excellent book with with tons of insightful knowledge

This book is an excellent resource for anyone interested in creating websites with great business value. As a server-side applications developer, I've been mainly concerned with exploiting the web as a technological medium. This book opened my eyes to the web as an information medium, strategically used to improve a company's bottom line. It truly delivers on its claim -- [serving as] "a bridge from technical understanding to business savvy".The book is extremely well-organized and has tons of practical knowledge and insight. Furthermore, all the principles are illustrated using easy to follow, real life examples. Excellent throughout -- highly recommended!

Build Websites Anchored in Business Reality

Building effective business systems and web applications requires an understanding of not only technology, but also the organization and the processes in which it will be implemented.Nick Flor, a Professor of Information Systems at Carnegie Mellon's Graduate School of Industrial Administration, argues that to create high-value business web sites requires business as well as technical knowledge. He draws a distinction between a mere web site, which he says, exchanges information and a business web site, which exchanges value - it generates significant revenues and/or drastically pares expenses.He says three skills are required is proposed for systematically molding the Web to the specific requirements of the specific business. 1. General Business Knowledge. 2. An ability to analyze and diagnose business activities.3. An ability to design Web treatments to address those activities.To equip Web entrepreneurs and consultants with these requisite skills, Flor organizes his book into four sections:1. Web Business 101 - This section covers the first business skill - the big picture. This general business primer includes a discussion of Return on Investment, Net Present Value, Payback, Internal Rate of Return, production, distribution and the effects of competition.2. Web Business Engineering - Using the knowledge acquired in the first section, the book proposes a methodology that links technical knowledge with business specific knowledge.3. Case Studies Putting Offline Activities Online 4. Case Studies Applying Web Business Engineering to Online ActivitiesStick with the book until you reach the case studies. They add value to the first two sections.This well-written book sheds important light on web development. By focusing on the author's definition of "value", managers and development teams will avoid aping successful online companies, building instead, systems that address what companies should be doing online based on their offline activities.

The way it should be done!

Until reading this book I thought I had a good understanding of what it took to design the underlying strategy and processes supporting commercial web sites. After reading this book I clearly saw how wrong I was.The approach set forth in this incredible book is straightforward and focused solely on business imperatives. I suspect that the author and publisher realized that the title would attract IT professionals and consultants, which accounts for the inclusion of business 101. I almost skipped over this part and am glad I didn't. Even here what I thought I knew about business turned out to be superficial. The education you will receive in Business 101 goes well beyond the basics and I recommend that everyone read this regardless of whether you are an IT professional or have a business background. You might just discover that you've been misapplying common techniques such as NPV, IRR and ROI, or using the results in erroneous ways. In other words, the section titled "Business 101" is much, much more.I loved the author's approach to value chain analysis, which is straightforward and based on a simple, but effective, notational language. Here, like in every other chapter, I learned techniques that will serve me well in general consulting assignments outside of web business engineering. The web business engineering methodology itself is one of the leanest, most effective processes that I've ever encountered. I can only describe it as elegant. It's a blueprint for success when success is measured by how well a system is aligned to business strategy and goals. If you follow the method and resist the temptation to take shortcuts you will be rewarded with a system that meets all of your requirements and objectives whatever they may be - and you'll know exactly what the value of that system is to your organization.A few observations about this book: (1) Give yourself plenty of time to read through this book and work through each example. It took me four times as long as it would for a book of approximate page count and topic complexity. If you're unwilling to make this commitment, perhaps you should pass this book up. (2) I fully agree with the author and a previous reviewer that web systems projects should be managed by business instead of IT. (3) If you're an IT professional get this book and read it from cover to cover - even if you never work on a web project you'll receive an incredible education in business factors and requirements analysis that will serve you well on *any* project. As a fellow IT professional I will assure you that this book will change your outlook.This book is among the best I've read on any topic or subject and should be required reading for anyone who is assigned to a web project. It's also, in my opinion, one of the most important books published in the past few years.

Refreshing, Business-focused and Candid

The author provides a business-oriented (and technology-free) approach to engineering an on-line presence that is effective and should set the standard for a methodology for how to go about such projects. This is embodied in a framework that is defined by four principles (1) work is a combination of physical and informational activities, (2) informational work is accomplished by propagating content, (3) valuable and innovative content can be found in existing manual methods, and (4) an on-line strategy should be based on off-line advantages. These principles are simple, yet powerful. They are also not as easy to adhere to as they seem, which becomes apparent when you begin mapping activities in subsequent chapters.There are so many things I like about this book, so I'll stick with the highlights. First, the differences between the way IT/IS and business units approach projects are carefully examined. Understanding these differences will make or break a web project, and as an IT professional I fully agree with the author that IT is the wrong organizational unit to lead and manage web projects. Their role should be relegated to that of support.Second, the author leads you through the basics of value chain analysis, business factors and financial analysis. This is an excellent refresher for business professionals and is essential reading for IT professionals, especially those who claim to be business analysts. I learned a great deal from the discussion on ROI, NPV and IRR. These are not new knowledge areas for me, but learning about the fallacies and pitfalls inherent in each approach that can trap you or lead you to bad decisions was priceless.What I learned the most from was the Quick Primer on Diagnosing Problems and Opportunities. As in the rest of the book the author uses case studies to reinforce the concepts and principles. In this case you are led through a mailing cost analysis and some of the results are surprising. For example, after all of the cost drivers are mapped out on a spreadsheet you play with some variables and discover that commonsense properties of the model do not necessarily act in commonsense ways. Doubling productivity (assuming it is possible to coax such a thing from humans) only yielded a 2.5% reduction in costs. Using cheaper labor actually cost more in the particular model. As an aside, the model was not contrived to create these counter-intuitive results - it is a plain vanilla cost model that you would commonly encounter or build. In this chapter you are introduced to a step-by-step process that shows how to effectively perform a cost analysis and find the true drivers that can be changed to reduce or avoid costs.A caveat about this book: it can be easily read, but is merely interesting unless you take the time to carefully step through each case. If, however, you take your time and work through the problems and trace the value chains--a tedious task--you will find that this book has many chapters

Web business success by applying business basics

In the arguments about taxation of Internet sales, I am firm in believing that they should be taxed. For some time, I have thought that the only protection that net companies needed was from themselves. Launched without a great deal of forethought, market research or even a viable plan, many of them are now crashing. Business on the Internet is no different that any other business, and since that is the foremost point of this book, it is indeed one that could have made a significant difference if it had been published and read two years ago. The author, a Professor of Information Systems at Carnegie Mellon, was one of the first professors at a top-ranked school to teach the business uses of the Web. The approach in this book is all business, with Return On Investment (ROI), Net Present Value (NPV) and Internal Rate of Return (IRR) equations being used to make the points. There is not one word of hype in this entire book. If there is one thing that has been so clearly lacking in the explosion of dot-com companies, it has been this lack of management by equation. Guerrilla marketing and fancy ads will get you noticed, but only a positive balance sheet will keep you alive long enough for it to matter. The remainder of the book covers the modeling of a business constructed on the web using two that he has created, www.datingexpert.com and www.yesnomaybe.com. Both deal with online dating/meeting services and the models of need, perceived value and potential revenue points are "classic" studies in how to plan and execute a business model based on user-generated information. One of the most valuable pointers which shows how much the author truly manages the sites are the data points about how people find the site. For example, on page 177 there is the caption, "Only 1.3 percent of my Web sites' traffic is due to users guessing the site's address." I did find myself wishing that he had shared more information as to how this data was acquired. While the business models used on the Web are different in degree from those offline, they are not different in kind. The basic rules of business still apply and as the author repeats so many times, it is what you do offline that matters. Lose sight of the business equations and the points where you add value and your company will be another dot.com Titanic.