A01 chaf6542 06 se fm indd

Level

Strategy process 

and performance 

improvement

Structure: Location 

of e‑commerce

Senior 

management 

buy‑in

Marketing 

integration

Online marketing 

focus

1 Unplanned

Limited

Online channels not 

part of business 

planning process. 

Web analytics 

data collected, 

but unlikely to 

be reviewed or 

actioned

Experimentation

No clear centralised 

e‑commerce 

resources in 

business. Main 

responsibility 

typically within IT

Limited

No direct 

involvement in 

planning and little 

necessity seen for 

involvement

Poor integration

Some interested 

marketers may 

experiment with 

e‑communications 

tools

Content focus

Creation of online 

brochures and 

catalogues. 

Adoption of first 

style guidelines

2 Diffuse 

management

 Low-  level

Online referenced 

in planning, 

but with limited 

 channel‑  specific 

objectives. Some 

campaign analysis 

by interested staff

Diffuse

Small central 

e‑commerce group 

or single manager, 

possibly with steering 

group controlled by 

marketing. Many 

separate websites, 

separate online 

initiatives, e.g. 

tools adopted and 

agencies for search 

marketing, email 

marketing. 

E‑communications 

funding from brands 

or businesses may 

be limited

Aware

Management 

becomes aware of 

expenditure and 

potential of online 

channels

Separate

Increased 

adoption of 

e‑communications 

tools and growth 

of separate sites 

and microsites 

continues. 

Media spend still 

dominantly offline

Traffic focus 

Increased 

emphasis on 

driving visitors to 

site through  pay‑ 

 per‑  click  search 

marketing and 

affiliate marketing

Table 5.11

Capability maturity model of e‑commerce adoption based on E‑consultancy (2008a) research

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Chapter 5  Digital business strategy

Level

Strategy process 

and performance 

improvement

Structure: Location 

of e‑commerce

Senior 

management 

buy‑in

Marketing 

integration

Online marketing 

focus

3 Centralised 

management

Specific

Specific channel 

objectives set. 

Web analytics 

capability not 

integrated to give 

unified reporting 

of campaign 

effectiveness

Centralised

Common platform 

for content 

management and 

web analytics. 

 Preferred‑ 

 supplier list of 

digital agencies. 

Centralised, 

independent 

e‑commerce 

function, but with 

some   digital‑  specific 

responsibilities by 

country, product or 

brand

Involved

Directly involved in 

annual review and 

ensures review 

structure involving 

senior managers 

from Marketing, 

IT, operations and 

finance

Arm’s-length

Marketing and 

e‑commerce 

mainly work 

together during 

planning 

process. Limited 

review within 

campaigns. Senior 

e‑commerce 

 team‑  members 

responsible for 

encouraging 

adoption of 

digital marketing 

throughout 

organisation

Conversion 

and customer 

experience focus

Initiatives 

for usability, 

accessibility 

and revision 

of content 

management 

system (including 

search engine 

optimisation) are 

common at this 

stage

4 Decentralised 

operations

Refined

Close cooperation 

between 

e‑commerce and 

marketing. Targets 

and performance 

reviewed monthly. 

Towards unified 

reporting. Project 

debriefs

Decentralised Digital 

marketing skills 

more developed 

in business with 

integration of 

e‑commerce 

into planning 

and execution at 

business or country 

level. E‑retailers 

commonly adopt 

 direct‑  channel 

organisation of which 

e‑commerce is one 

channel. Online 

channel profit and 

loss accountability 

sometimes 

controlled by 

businesses or 

brands, but with 

central budget 

for continuous 

e‑communications 

spend (search, 

affiliates, 

e‑communications)

Driving

Performance 

Involved in review 

at least monthly

Partnership

Marketing and 

e‑commerce work 

closely together 

through year. 

Digital media 

spend starts to 

reflect importance 

of online channels 

to business and 

consumers

Retention focus

Initiatives 

on analysis 

of customer 

purchase 

and response 

behaviour and 

implementation 

of   well‑  defined 

touch strategies 

with emphasis on 

email marketing. 

Loyalty drivers 

well known and 

managed

5 Integrated 

and optimised

Multichannel 

process

The interactions 

and financial 

contribution of 

different channels 

are well

Integrated

Majority of digital 

skills within 

business and 

e‑commerce 

team commonly 

positioned

Integral

Less frequent 

in‑depth 

involvement 

required. 

Annual planning 

and   six‑  monthly

Complete

Marketing has 

full complement 

of digital marketing 

skills, but calls 

on specialist 

resource from

Optimisation 

focus

Initiatives 

to improve 

acquisition, 

conversion and 

retention

Table 5.11

Continued

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Part 2  Strategy and applications

 Level 

 Strategy  process 

and performance 

improvement 

 Structure:  Location 

of e‑commerce 

 Senior 

management 

buy‑in 

 Marketing 

integration 

 Online  marketing 

focus 

 understood 

and resourced 

and improved 

accordingly 

 within marketing or 

direct 

 sales  operation. 

‘ Front‑  end’  systems 

development skills 

typically retained in 

e‑commerce team 

 or  quarterly 

review 

 agencies or central 

e‑commerce 

resource as 

required. Online 

potential not 

constrained 

by traditional 

budgeting 

processes 

 according  to 

developments in 

access platform 

and customer 

experience 

technologies. 

May use 

temporary 

multidisciplinary 

team to drive 

performance 

Table 5.11

Continued

  

● 

   Structure.  Location of e-commerce and the technological capabilities through the soft -

ware, hardware infrastructure used and staff  skills.  

  

● 

   Senior management buy-in.  Digital business strategies are transformational, so require 

senior management sponsorship.  

  

● 

   Marketing integration.  We have stressed the importance of integrated customer and part-

ner communications through  right-  channelling. Staff  members responsible for technol-

ogy and marketing need to work together more closely to achieve this.  

  

● 

   Online marketing focus.  Strategic initiatives will focus on the three core activities of cus-

tomer acquisition (attracting site visitors), conversion (generating leads and sales) and 

retention (encouraging continued use of digital channels).  

  

● 

   Partnering with other organisations.  Some services will be best delivered through partner-

ing with other companies.   

 Within a business there are many issues for changing internal capabilities; these options are 

considered in more depth in  Chapter   10   , ‘Change management’. 

 

  

  Strategy  implementation 

  

Strategy implementation

  includes all tactics used to achieve strategic objectives. The main 

tactics and actions required are summarised in  Figure   5.21   . These actions are described in 

more  detail  in  the  remainder  of   Part   2     and  in   Part   3   ,  as  indicated  in  the  figure.    

 

  Chapter   10    focusses on approaches to managing the change associated with digital busi-

ness implementation.  Figure   10.2    summarises different implementation marketing activities 

that need to be completed by an online retailer structured according to customer acquisition, 

conversion and retention activities.