Mgmt. 298D: Electronic Commerce
Prof. A. Geoffrion
 
Consumer Process Reengineering:
The Champy et al. Strategies
 

 
1. Target a Consumer Process. Target a major consumer process (e.g., a major purchase such as a home, car, boat; enjoying certain kinds of sporting events; planning a vacation; finding a new job) and identify its steps end-to-end (e.g., buying a home requires contacting real estate agents, getting acquainted with neighborhoods, identifying the desired house, obtaining a mortgage and homeowners insurance, inspections, moving in, notifying people and organizations, etc.).

2. Consider Reengineering Opportunities. Determine how to use the Internet to help reengineer the target consumer process by meeting as well as possible 7 fundamental needs shared by most consumer processes:

A. Knowledge. Consumers need to find relevant information for sound decisions: available alternatives, prices, quality, etc.

B. Interaction with Provider. Consumers need to communicate with the providers of goods and services.

C. Networking with Other Consumers. Consumers need to find and communicate with others having similar needs or experiences.

D. Sensory Experience. Consumers often need to sensory experiences to help them make decisions -- sights, sounds, tastes, smells, etc.

E. Ubiquity. Consumers prefer the convenience of having all pertinent information available when they want it, not when providers find it convenient.

F. Aggregation. Consumers prefer the convenience of having all pertinent goods and services in one place, not spread out over space and time.

G. Customization. Consumers prefer goods and services to be tailored to their needs.

 Needs B and C point in the direction of placing an electronic community at the core of the reengineered consumer process. The rest of the needs are fully consistent with this idea.

3. Select the Business Opportunity. There are three main ways in which to participate in the reengineering of a consumer process.

A. Develop the Technology Infrastructure. The infrastructure at issue is whatever it takes to support reengineered consumer process, especially the electronic communities at their core.

B. Stay in a Niche But Redefine Performance Standards. Taking into account how the target consumer process could be reengineered, provide some subset of the goods or services likely to remain important after reengineering. Endeavor to improve in cost, time, and quality so as to remain competitive in the reengineered world.

C. Become a Community Developer. This means attempting to reengineer the target consumer process, including building the electronic community at the core of the new process. Sometimes this will require cannibalizing existing businesses.