InterEconomic Bridge (IEB) defines a model which allows businesses to be rebuilt as its Digital Replication. In this context, entities are said to belong to the "old" or "new" economy, in according with their pertaining practices. The methodology includes 5 phases to a comprehensive re-enactment of the current business. These phases are described in this document (Paper in progress). IEB's main purpose is to bridge the gap between the Old and New Economy, by providing businesses with the means to turn themselves into its digital homologues. The business digital projection imbues current knowledge and business practices which become and adjuvant environment that does not resist the new Electronic Domain Technologies. IEB quicken the enactment of a mirror digital entity of the mother company, which ingrains the current (New Economy) practices and Infrastructure without losing the capabilities of the mother company. IEB provides an innovative framework to soften the path and lower the uncertainty inherent to the sort of transformations intrinsic to business restructuring.

1. PROFILE
©
Septiembre 2002
José Payano, MBA
Santo Domingo
República Dominicana

2. Agenda
• Part I.............Knowing about it.
• Part II............Eliciting Some Benefits.
• Part III..........Building the Bridge.

3. Part I
What is it?

4. A prelude!
Imagine how the market would have
appreciated Barnes&Noble Should
Amazon.com be their idea....
A perfect Digital Hologram for
Barnes&Noble!

5. Definition
• The InterEconomic Bridge is an infrastructure-based
Strategic Model.
• Its main purpose is to bridge the gap between the Old and
New Economy, by providing businesses with the means to
turn themselves into its digital homologues.
• The Business’ Digital Hologram (BDH) is a mirror
digital implementation, in which all current business
content is sifted into its digital homologue.
• The Bridge right side belongs to the BDH. The left side
represents the Original Business Unit (OBU).
• The Bridge defines the Integration between both worlds.

6. Assumption (I)
• Even confronted with the approval of e-signatures
and the general acceptance of e-commerce and e-
business practices as valuable strategies to assure
the future value of the company, most businesses
will not radically change their current practices in
the foreseen short or longterm.
• This is due to the close-knit culture, internal,
external relationships, the general state of the
Enterprise Knowledge, power structure,
paradigms, tools and processes.

7. Assumption (II)
• Vendors are missing the point in trying to sell to their
constituents markets by resorting to convenient strategic
frameworks to “match” their technology.
• In so doing they are addressing the wrong problem in the
wrong context.
• Contextual Displacement: Change the context and the real
issues begin to surface.
• Vendors are preaching strategic alignment: But they,
understandably, bank more on the sales wing than on the
business development issues.

8. Foresight!
“No one sews a patch of unshrunk cloth on an old garment,
for the patch will pull away from the garment, making the
tear worse”.
“Neither do men pour new wine into old wineskins. If they do,
the skins will burst, the wine will run out and the wineskins
will be ruined. No, they pour new wine into new wineskins,
and both are preserved”
Matthew 9:16-17

9. Inhibitors
• The current business environment, its practices,
processes, internal and external relationships.
• Huge base of Capital Assets preempts the business
managers from taking agressive expansive pathways.
• The Human Factor refrains inexorably the
magnitude of change that is admissible to the
bussiness.
• The Generational Factor implies the current
business top level executives and board of directors
outlive an internet obsolesced era.

10. Catalyzers
• Legal Framework: E-signatures laws has been promulgated
in most countries, potentially enabling the digital realm of
business.
• Current State of Knowledge: Five years ago launching an
e-business initiative was an act of faith. Today, experience has
contributed to sift right from wrong doing in the field.
• Technological Maturity: E-Business technologies were
child-play in the hands of some visionaries prophets. Today, it
means powerful tools to enable the business to survive the
hallway of a new age.
• Real Options Posture: The strategic morale means
choosing your seat: In front, in second or last row...But your
strategic posture will inevitably have an “edge effect” in your
company’s market standing.

11. So what should be done?
• What we are missing is a comprehensive strategic
framework to:
– Fill in the gap between the Old and New Economy, re-building the
business in a digital environment.
– Protect the mother company from the risks involved in such kind
of transformation.
– Leverage core competencies, market position, products, services,
practices, knowledge and intellectual assets.
– Incubate an environment adyuvant to the Electronic Domain
Technologies.
– Define the new business in terms of value created for the diverse
groups of stakeholders.
– Present clear-cut phases of execution to (re)build the current
business into its digital homologue.

12. ...Bridge the Gap!
Statement of Direction to start moving the
E-Vision
business to its future digital homologue.
Content Opportunity Matrix and digital
E-Assessment
business requirements.
Business Digital Hologram: Original
E-Hologram
Company’s Digital Homologue.
Controlled re-building of the Old Business
E-Consolidation
into its Digital Hologram.
Final launch of the Digital Hologram as the
E-Company
mainstream business.

13. The Concept
• The InterEconomic Bridge is a comprehensive set of
New Economy technologies and practices.
• Its main purpose is to bridge the gap between the Old and
New Economy, by providing businesses with the means to
turn themselves into its digital homologue.
• The Business’ Digital Hologram (BDH) is a digital
mirror implementation, in which all current business
content is sifted into its digital homologue.
• The Bridge right side belongs to the BDH. The left side
represents the Original Business Unit (OBU).
• The Bridge defines the Integration between both worlds.

14. The Concept
• The Business Digital Hologram rebuilds the
current business:
– Leveraging current business market position, products,
services, knowledge, technology, operations and core
competencies.
– Embedding this knowledge into a new core
infrastructure and embodying the whole into a new
business DNA.
– BDH is materialized in a series of unambiguous phases,
each one accelerating the Digital Economy uptake.
– The resulting enterprise ingrains all current business
practices and technologies from the outset.

15. The Concept
• The Service Delivery System:
– A Multimodal collaborative channel management
strategy serves as the value delivery system.
– The appropriate customer strategy will provide the
necessary customer management platform.
– Customer centric processes guarantee the value
proposition.
– Subscriptions and entitlements manage anticipated
customer events.
– Personalization goes to the linked-benefits type
offerings assuring customer centricity.

16. Part II
Eliciting
Some Benefits

17. Shareholders
• Nothing is more valuable than assuring continuous value
creation:
– Best practices in EVA models suggest growth investments
mandatory to CEO.
– Best practices in GROWTH models suggest bearing in mind the
different requirements of running the current business and
“keeping the pipeline full” of new options for the future.
– Growing new business out of the resources provided by the current
one is the best way to assure continuous wealth creation.
– Capturing new markets value is a necessary growth strategy for the
industry leader or those challenging it.

18. Software Vendors
• The implementation is a perquisite of the vendor:
– Consulting is a comprehensive Value Proposition.
– Service include re-enacting the Business.
– Software should be imbued as Service.
– Complimentary offer should include the technology.
– Full package would include end-to-end implementation.
– Be prepare to “outsource” the “problem”.
– Infrastructure Sw Vendors are poised to be Winners.
– Only Have-To: Formerly Win the Contextual Change
(e-vision phase).

19. The Business
• Capture Real Options embracing the New
Economy without disrupting current operations:
– Cash-flow business is protected from the risks.
– Focus preserve competitive advantage at both ends.
– Investment are made according to macro plan.
– The new “way” is imbued in controlled environment.
– Savvy consultants assure best practice implementation.
– Backoffice operations become “content providers”.
– The Bridge becomes a non-stop link.

20. Focus!
To maintain operations in a core
business and do e-business--we tried
that initially, but it just didn’t allow
people to focus on either side. So we
broke off the ebusiness team but linked
them back to the mother company to
keep us connected.
- Delta Airlines

21. The Business
• Resource Provisioning Mode:
– The BDH re-use all mother company business support
units and legacy systems as service providers.
– The last two phases of the nascent e-company provide
means to streamline processes in the service units.
– During the e-company phase, the service units may
become self-sustained satellite units and provide
service to the vertical market or other industries.
– Ultimately this could generate a rippling effect to the
whole economy triggering new levels of market
efficiency.

22. The Customer
• Convenient access and packaged solutions
becomes the norm and not the exception:
– Service available 24x7x365.
– Multimodal: Multichannel/Multidevice.
– Reliable.
– Personalized, solution-based offerings.
– Collaborative actions permeate channels.
– Anytime, anywhere.
– Secure connection.
– Service design according to needs.
– Adaptive, customer “pull” model.

23. Part III
Building the
Bridge

24. Avoiding Cannibalization
• The new business should not cannibalize the old
one:
– Digital services are provided by the BDH.
– BackOffice service is provided by OBU.
– Both entities coexist in uncompetitive domains.
– They share the same customers.
– They have their own channels, but provide
complimentary services.
– Branding the channel will do the Job.
– Coalescing the overall customer strategy will maintain
the necessary unicity of vision.

25. Implementation
• IEB is also a Strategy Consultancy Service to enable
businesses to be re-built by bridging the gap between
current and proposed new business practices.
• Five stages define the path to rebuilding a business.
• IEB is an evolving concept where other practitioners
are contributing with insight into their practices.

26. E-HOLOGRAM
Five Stages to IEB
E-CONSOLI-
E-VISIÓN E-ASSESMENT E-HOLOGRAM E-COMPANY
DATION
ACTIVITIES: ACTIVITIES: ACTIVITIES: ACTIVITIES: ACTIVITIES:
Provide Insigt Assess Current Appraise and Consolidate Establish A
into the Business Select Operation. Target Date.
concepts. Practice. Technologies.
Demonstrate Plan the
Create Content Build IEB Value Creation. OverTake.
Awareness. Matrix. Infrastructure.
Migrate Other Resource
Brainstorm Process/Value Launch New Areas. Provisioning
Board of Matrix. Business Communicate mode should
Directors. Initiative. Successes. be operational.
Functional
Gain Analysis Communicate Transitional
Commitment. to mother DELIVERY: Projects.
DELIVERY:
company.. Digital
DELIVERY: DELIVERY:
Opportunity
DELIVERY: Hologram
Statement of Matrix The e-
Direction for Digital emulating Company
Business
the e-company. Hologram. Mother overtake
Requirements
Company

27. In short
• The InterEconomic Bridge initiative provides the means for
businesses to re-conceive themselves for the New Economy, without
losing its background knowledge.
• In these two counterpoised elements rests the innovative force of the
concept:
(a) On one hand, business domain strengths are preserved, while
(b) On the other, businesses are given a unique opportunity to rethink
themselves in terms of the new practices and technologies
available.
Contextual displacement accelerates New Economy uptake.
A standard procedure would favour IT sales in all domains.
Big companies don’t ever have to lose ground to nimble new
competitors anymore.

28. Who?
Jose Payano
Experienced Banking Innovation strategist, with recent engagement in
Mobile Financial Services, Financial Inclusion Model development,
Automatic Teller Machines Innovation undertaking, Cash Management
and Contact Center design...
I devise innovative financial/banking services with a customer-focused
vantage point. I have devised a "Customer Value Model" along this
line.
I am currently charting my last undertaking: The "Future of Banking
and Business" (FoB) model!
Full profile: http://do.linkedin.com/in/josepayano

29. The End