launching a successful online business and ec projects - Prentice Hall

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W12.12 Part 7: Applications and Site Development ◗ M-commerce. Many companies are embarking on wireless applications inside the organization and on selling and advertising via m-commerce technologies. ◗ Enterprise social networks and Web 2.0 tools. Many large companies now offer blogs and wikis; others (e.g., Toyota, Coca-Cola, Wells Fargo Bank) operate enterprise social networks. Organizations may consider other types of EC initiatives, following the business models presented in Chapter 1. For example, Qantas (qantas.com.au) sells tickets online directly from its Web site and from a B2B exchange; it buys supplies and services from its e-procurement site as well as from several exchanges; it provides e-training for its employees; operates several corporate portals; offers online banking services to its employees; provides e-CRM and e-PRM; manages its frequent flyer program; supports a wireless notification system to customers; and so on. Large companies, such as GE and IBM, have hundreds of active EC projects. TRANSFORMATION TO AN E-BUSINESS As the brick-and-mortar organization implements more EC projects, it becomes a clickand-mortar organization, and eventually an e-business. Being an e-business does not imply that the organization is a pure-play company; it just means that it conducts as many processes as possible online. A rapid or large-scale change from brick-and-mortar to e-business involves organizational transformation. For planning such a transformation, see Basu and Muylle (2007), who outline a detailed process for such a transformation. What Is Organizational Transformation? Organizational transformation is a comprehensive concept that implies a major organizational change. According to McKay and Marshall (2004), a transformation is not only a major change, but also a sharp break from the past. The key points in understanding organizational transformation are as follows: ◗ The organization’s ways of thinking and vision will fundamentally change. ◗ There will be revolutionary changes to the process and context involved in creating a new organizational vision and rethinking business models and business strategy. ◗ The change must involve a substantial break from previous ways of acting. It will likely involve discovering and developing new opportunities and new ways of doing things. ◗ The change must permeate through and impact on the behavior of a majority of organizational members. ◗ The change will involve creating new systems, procedures, and structures that not only enable and dictate how new processes function, but that will also impact on the deeply embedded business models and understandings that drive the organization. An e-business transformation is not solely about technology. Technologies must be integrated with possible changes in business strategy, processes, organizational culture, and infrastructure. How an Organization Can Be Transformed into an E-Business Transforming an organization, especially a large company, into an e-business can be a very complex endeavor. For an organization to transform itself into an e-business, it must
Chapter Twelve: Launching a Successful Online Business and EC Projects W12.13 transform several major processes, such as procurement, sales, CRM, and manufacturing, as well as deal with change management. Such a transformation involves several strategic issues. Lasry (2002) raised several of these issues in an investigation of the rate at which brick-and-mortar retail firms adopt the Web as an additional sales channel. He examined organizational strategies, such as internal restructuring, the formation of joint ventures, and outsourcing. He concluded that implementing EC requires a disruptive and potentially hazardous change in core features. He suggests that companies spin off EC activities as part of the transformation process. Müller-Lankenau et al. (2006) provide a comprehensive description of the transformation to e-business, describing both the internal and external processes supported by IT, as shown in Exhibit 12.1. They then show the support of IT at each stage. Finally, they describe the necessary change management activities. Baseline EXHIBIT 12.1 Road Map to Transformation IT sophistication to support external business process IT sophistication to support internal business process Informational Basic Web Site Effective Individual Interactive Site Effective Team Transactional Sites Effective Enterprise External Process Collaborative Sites Stages in Becoming an E-Business Convergence New Process Internal Process EC Initiatives e-procurement e-CRM Storefront e-training C-commerce Social computing Source: Ginige, A., et al. “A Road Map for Successfully Transforming SMEs into E-Business.” Cutter IT Journal (May 2001). Used with permission of the author.
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launching a successful online business and ec projects - Prentice Hall

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