ICT and e-Business Impact in the Retail Industry - empirica

e-Business in the Retail Sector1.3 Study objectives and methodologyResearch objectivesAs competition in the retail industry is strong and barriers to entry are low, ICT and e-business can take important roles in this industry. Another factor affecting ICT and e-business uptake among retail firms in the EU is the heterogeneous structure (see chapter2) of the industry: micro firms operating in regional markets have different ICT and e-business requirements than globally-operating retail chains. Retail firms trade goods andservice and retail customers are end-consumers of the goods and services. Hence, whilethe retail industry is not a goods-producing industry, opportunities for improving businessprocesses through ICT and e-business are numerous. Indeed, previous e-businessW@tch studies in 2003 and 2004 have shown that ICTs are a major enabler of processefficiency in the industry. It is to be expected that ICT are (increasingly) being used in allsegments of the value chain, notably by the large players. It remains to be seen to whatextent this leads to changes in business models that go beyond process innovation in thesense of improved existing processes.Based on these general assumptions, and on findings of earlier studies conducted on theretail industry, the study addresses the following overall research questions:Dynamics of adoption: Has there been a dynamic adoption of ICT and e-business in the period since 2003/04?Drivers and barriers: What drives e-business adoption, what do companiesperceive as the main challenges and barriers?Impact on firm and sector level: What are the main impacts of ICT adoption onfirm performance and on the industry as a whole (e.g. in terms of productivityeffects and skills requirements)?Impact on international competition: Is there a link between e-businessdevelopments and the scenario for international competition?Policy implications: Do the findings on these research questions above haveimplications for policy, for example in the fields of economic, competition or R&Dand innovation policy?The methodological framework of the SeBW builds upon the methodology established forthe preceding "e-Business W@tch" program. It has been adapted to the new focus ofactivity, enabling the progress from monitoring "e-readiness" and "e-activity" to theevidence-based analysis of "e-impact".Conceptual framework for the retail sector studyWith the overall focus on supply chain management, the retail sector study is based uponthe following conceptual framework. The conceptual framework illustrates the elementsstudied in the retail sector study: upstream supply chain management, supply chaininterfaces, downstream supply chain management, and the impact of firm size on e-supply chain management. The upstream supply chain covers retailers’ activities withsuppliers, especially coordination and collaboration with these business partners. Inhousesupply chain management looks at retailers’ internal systems especially foroperations such as logistics and distribution. The downstream supply chain coversretailing firms’ activities related to selling goods to consumers. The impact of firm size on18