ICT and e-Business in the Pulp, Paper and Paper ... - empirica

Pulp, paper and paper products
In many cases, the implementation of e-business processes in a company will constitute
a process innovation in itself. In manufacturing sectors, e-business has triggered
significant innovation inside the companies, notably in supply chain and delivery processes,
such as automatic stock replenishing and improved logistics. In service sectors
such as tourism, the innovative element is more evident in the way that external transactions
are accomplished. For example, if a company starts to sell its services online, this
can imply innovation in the service delivery process and in customer communication.
In some sectors, particularly in ICT manufacturing, consumer electronics and
telecommunications, ICT are also highly relevant for product innovation.
However, as more companies strive to exploit the innovation potential of ICT, it becomes
more difficult for the individual company to directly gain competitive advantage from this
technology. e-Business is becoming a necessity rather than a means to differentiate from
competitors. 16 In addition, the introduction of innovation can cause substantial costs in
the short and medium term, as it may take time before the investments pay off. This
causes challenges in particular for small and medium-sized companies. It is one of the
reasons why e-Business W@tch focuses on such challenges in its sector studies (see
also ‘Policy Background’ in chapter 1.1).
16
Cf. Carr, Nicholas (2003). "IT Doesn't Matter". In: Harvard Business Review, May 2003.
18