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lxv
About the Editor
In Lee is an associate professor in the Department of Information Systems and Decision Sciences
in the College of Business and Technology at Western Illinois University. He received his PhD from
University of Illinois at Urbana-Champaign. He is a founding editor-in-chief of the International Journal
of E-Business Research. He has published his research in such journals as Communications of the ACM,
IEEE Transactions on Systems, Man, and Cybernetics, IEEE Transactions on Engineering Management,
International Journal of Production Research, Computers and Operations Research, Computers and
Industrial Engineering, Knowledge and Process Management, Business Process Management Journal,
Journal of E-Commerce in Organizations, and International Journal of Simulation and Process Modeling.

His current research interests include e-commerce technology development and management, investment
strategies for computing technologies, and telecommunications planning and management.
Section I
Fundamental Concepts
and Theories
This section serves as the foundation for this exhaustive reference tool by addressing crucial theories es-
sential to the understanding of human-computer interaction. Chapters found within these pages provide
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science and technology. Individual contributions provide overviews of ubiquitous computing, cognitive
LQIRUPDWLFVDQGVRFLRWHFKQLFDOWKHRU\ZKLOHDOVRH[SORULQJFULWLFDOVWXPEOLQJEORFNVRIWKLV¿HOG:LWKLQ
this introductory section, the reader can learn and choose from a compendium of expert research on the
elemental theories underscoring the research and application of human-computer interaction.
1
Copyright © 2009, IGI Global, distributing in print or electronic forms without written permission of IGI Global is prohibited.
Chapter 1.1
Identifying E-Business Options
Albert Boonstra
University of Groningen, The Netherlands
Bert de Brock
University of Groningen, The Netherlands
INTRODUCTION
The past few years, many organizations have been
using the Internet in quite arbitrary and experi-
mental ways. This phase, which can be considered
as a period of learning and experimentation, has
created a need for a more systematic approach
WRWKHLGHQWL¿FDWLRQWKHRUGHULQJDQGWKHDVVHVV-
ment of e-business options. It is the objective of
this paper to address this need by presenting a
methodology that aims at supporting management

in using alternative e-business applications in the
¿UVWVWDJHRIWKHdecision-making process.
Figure 1 shows how a systematic decision-mak-
ing process can be organized by using e-business
options. The steps are based on Simon’s intel-
ligence, design, and choice trichotomy (Simon,
1960). First, alternative e-business options have
WREHLGHQWL¿HGDQGRUGHUHG7KHQWKHSRVVLEOH
options have to be assessed and selected. After
this stage the selected opportunities have to be
VSHFL¿HGDQGGHVLJQHG1H[WLPSOHPHQWDWLRQ
operation, maintenance, and evaluation may
IROORZ,Q)LJXUHWKLVLVFDOOHGWKH³IRUPDOOLIH
F\FOH´:HZLOODSSO\WKHZRUG³HEXVLQHVVRSWLRQ´
referring to the possibility to use an electronic
network for a business purpose. An e-business
RSSRUWXQLW\LVGH¿QHGKHUHDVDQDVVHVVHGDQG
selected e-business option.
In practice, different intermediate feedback
activities, interrupts, delays and adjustments
are often necessary to reconsider earlier steps
(Mintzberg, Raisinghani, & Théorêt, 1976). This
is—among other reasons—because decision-mak-
ing processes of this kind take place in dynamic
environments and decisions are made in political
contexts (Pettigrew, 2002). Moreover, participants
in decision-making processes are often lacking the
necessary information to make well-considered
decisions right from the start (Miller, Hickson,
& Wilson, 1996). In Figure 1 these activities are

FDOOHG³LQWHUPHGLDWHIHHGEDFN´
2
Identifying E-Business Options
The methodology presented in this article
IRFXVHVPDLQO\RQWKH¿UVWVWDJHRIWKHGHFLVLRQ
making process: the LGHQWL¿FDWLRQRIHEXVLQHVV
options and the ordering of these options. Further,
the focus is only on e-business options in the
context of an organization and its current or new
external stakeholders.
The methodology helps identify e-business
options, describe them in a global way by speci-
fying each option in six dimensions, and order
them according to organization- dependent pri-
orities. Only after management has assessed and
VHOHFWHGDQRSWLRQFDQ WKLVRSWLRQEHVSHFL¿HG
more precisely in order to design an application
(see also Figure 1).
This methodology aims at contributing to
practice as well as to theory. Practitioners, such
as (e-business) managers and (e-business) con-
sultants, can use the methodology to identify and
order e-business options in a systematic rather
than an intuitive, imitating or precedent-based
way. This methodology can also be used to chal-
lenge certain e-business strategies or to consider
unconventional alternatives.
The contribution to theory is based on the fact
that many existing e-business frameworks are
directed at the assessment of certain e-business

alternatives, but that general approaches address-
LQJWKHLGHQWL¿FDWLRQRIHEXVLQHVVRSWLRQVIURP
scratch, are still scarce. This argument will be
explained in the next section.
BACKGROUND
Although Chung-Shing Lee’s contribution (2001)
of providing a framework to evaluate e-commerce
business models is useful, evaluation can only take
SODFHDIWHUWKHLGHQWL¿FDWLRQRIRSWLRQVZKLFKLV
the focus of this article.
formal life cycle intermediate
feedback
Implementing, operating
,
m
aintaining and evaluati
ng
e-business opportunities
Assessing and selecting
e-business options
Specifying and designin
g
e-business opportunitie
s
Identifying and ordering
e-business options
F
ocus of the article
Figure 1. Focus of the article in the light of the desicionmaking context
3

Identifying E-Business Options
Barua, Konana, Whinston, and Yin, (2001)
introduce an e-business value model that supports
management in determining where to deploy
RUJDQL]DWLRQDOUHVRXUFHVE\KLJKOLJKWLQJVSHFL¿F
areas of opportunity. Barua et al. also emphasize
that organizations should not merely concentrate
on the existing products or services. They sug-
gest that the Internet may open up opportunities
to reach new customers and to introduce new
products or services.
The ideas of Barua are in line with those of
$ QV R I I    Z K R L G H Q W L ¿H V S U RG X F W P D U NHW D U H D V 
to be focused on by organizations. Ansoff suggests
that two important strategic questions of organi-
zations are: (1) whether they should focus only
on their existing markets and customers or also
on new markets and customers, and (2) whether
t h e y s h o u ld m e r e l y fo c u s o n e x i s t i n g p r o d u c t s a n d
services or also on the development of new ones.
With respect to e-business these two fundamental
questions are highly relevant, since the Internet
makes many organizations rethink their product-
market combinations fundamentally. Therefore,
these two questions are addressed in the approach
as described in this article.
Straub and Klein (2001) build on these ideas
by stating that e-commerce can produce three
FDWHJRULHV RI HIIHFWV ¿UVWRUGHU VHFRQGRUGHU
and third-order effects. First-order effects in-

volve reducing costs and increasing productivity.
Second-order effects concern the pursuit of new
markets and improving services, and third order
effects lead to far-reaching transformations af-
fecting goods and services, ways of targeting as
well as distribution (Andal, Cartwright, & Yip,
2003). These issues are also addressed in the
methodology as described in this article; they
ZLOOEHLGHQWL¿HGH[SOLFLWO\
We can conclude that there are already a
considerable number of models that can be used
to assess and evaluate current e-business applica-
tions and measure their readiness for the future.
However, there seems to be a lack of approaches
that can help analysts generate options and fu-
ture directions regarding utilizing the Internet.
The approach as described in this article aims at
making suggestions with respect to how such a
methodology could take form.
METHODOLOGY
Dimensions and Elements
Organizations can use the Internet as a means of
communication with the outside world in different
ways. These different ways can be analyzed by
distinguishing among the following dimensions:
stakeholders groups, stakeholders’ statuses, chan-
nel strategies, communication modes, product/ser-
vice groups and product/service statuses.
These dimensions are derived from the elemen-
tary notion that organizations can be perceived

as open systems. In order to survive, good rela-
tions have to be established with parties in the
outside world. For that reason, organizations
exchange information to relevant parties in that
outside world. These communications may lead
to transactions. See Figure 2.
In order to generate potential e-business op-
WLRQVLWKDVWREHLGHQWL¿HGZLWKZKLFKSDUWLHV
in the outside world the organization intends to
exchange information. These can be current or
new parties, since electronic networks can also be
used to extend the reach of organizations. When
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using electronic networks has to be considered.
Here we can identify communication modes, chan-
nel strategies and (current or new) products and
services. These dimensions are further explained
in the next paragraph.
Dimension #1:
(External) Stakeholders Groups
Organizations exchange information and com-
municate with all external stakeholders, who
can be divided in business partners and other