Electronic Business: Concepts, Methodologies, Tools, and Applications (4-Volumes) P11 ppsx

34
Managing E-Business Change
BACKGROUND
In trying to bring about e-business change: “man-
agers would do well to recognise the complemen-
tary nature of technology, business models, and
e-business readiness throughout the value chain
from their suppliers to their customers” (Barua,
Konana, Whinston, & Yin, 2001, p. 39).
Theoretical Framework
The study used an established theoretical frame-
work (Figure 1) from business process change
case-based research (Guha et al., 1997), for
identifying and examining the facilitators and
inhibitors of successful e-business projects. The
model represented by Figure 1 was adapted from
previous research on business process change by
Guha et al. (1997, p. 121) to include e-business
change. Also it acknowledges the existences of
inter-relationships between components, as sug-
gested by Kaplan and Norton in developing their
Balanced Scorecard (2000, p. 168, 2004, p. 55).
Research Approach
The research proposed three questions:
1. Which components of eBC framework fa
-
cilitate and/or inhibit success of e-business
projects?
2. What are the critical success factors of e-
Business projects?
Figure 1. Model of e-business change (Adapted from Guha et al., 1997, p. 121)

35
Managing E-Business Change
3. Is the eBC framework appropriate for iden-
tifying patterns of change?
Embedded multiple case study analysis was
chosen to investigate the research questions con-
cerning the complex phenomenon of e-business
change projects, in eight organisations (Yin, 1989).
Embedded approaches enlist the use of multiple
units of analysis: (1) the company (strategy),
(2) the project team, and (3) the project. This
triangulation attempts to validate primary data
(Eisenhardt, 1989).
The case study selection criterion required a
major e-business project, which had organisational
implications. Also, as the focus was on studying
antecedents to organisational performance, a set
of projects having a range of B2B initiatives with
variance across cases, but with the same outcome
measures was required: cost reductions, respon-
siveness and customer satisfaction, shareholder
value, and other e-business metrics (Venkatraman
& Henderson, 1998, p. 34).
Case information for this study was gathered
from three data sources:
1.
Primary Data: From interviews using an
established semi-structured questionnaire
with questions that map the eBC items in
Table 1, conducted between June and July

2000.
2.
Secondary Data: From company documents
collected or sent via e-mails in 2001.
3. Tertiary Data: From case articles written
by authors and other researchers in 2002.
Data-collection methods included a semi-
structured case protocol as; (1) a qualitative
interview questionnaire, (2) multiple documents
and archival records, and (3) telephone inter-
views. Such triangulation reduces bias and is
recommended in case research (Kean & Parent,
1998, p. 308).
Case Selection
Eight cases were used for an initial assessment of
WKHFRPSRQHQWVRIWKHH%&IUDPHZRUN$³6XP-
mary of Comments” table was constructed for each
case by identifying key comments captured from
case interviews. In each case, the components were
DVVHVVHGIRUWKHLUFRQWULEXWLRQRULQÀXHQFHWRWKH
project success, using a 3-point scale.
Four cases out the eight that participated
were selected to provide the detailed content for
analysis against the eBC model. Halliburton is
the representative of the four cases that exhibited
little or no inter-organisational focus; that is with
‘nil’ B2B interaction:
• Case 1, Halliburton: [nil] business-to-em
-
SOR\HH%(³Employee Tracking”

• Case 2, British Biotech: [low] business-to-
VXSSOLHU%6³B2B Procurement”
• Case 3,
Fujitsu-Siemens: [mod] business-
WRFXVWRPHU%&³Online Sales”
 &DVH'HOO/6,>KLJK@%6%&³
B2B
E-Commerce Integration”
CASE SUMMARIES
Case 1
)RU+DOOLEXUWRQWKHSULPDU\EHQH¿FLDULHVZHUH
the offshore project managers who needed access
to the HR employee tables for personnel manage-
ment and gained this through the innovative use
of web-based technology. The result was one of
considerable cost savings and improvement of staff
resourcing through improved decision making by
the project managers when working off shore.
The intrinsic motivation and self-management of
autonomous knowledge within the development
team played an important role in the successful
implementation. The emphasis was much more
on collective performance rather than individual,
36
Managing E-Business Change
but at the same time, development and mainte-
nance of personal and professional reputations
ZDVDVLJQL¿FDQWGULYHU,QWHUHVWLQJO\ZKLOHWKH
project was rated highly successful there was
strong opposition from their partner operations

to implement the same system. This came from
the counterpart HR staff who had not been ex-
posed to the participative development process.
The organisational management was luke-warm
in their support initially, viewing the proposed
system as a threat to a strongly centralised control
FXOWXUH2QFHWKHEHQH¿WVEURNHGRZQWKHLULQLWLDO
reluctance, management assumed responsibility
for the success and leadership for global imple-
mentation.
We are very proud of our Web-based Personnel
reporting system. (SAP project manager)
Case 2
British Biotech is a research and development
stage pharmaceutical company based in the
UK. Its mission is to create partnerships with
pharmaceutical companies to complete the
development and marketing of its compounds.
The B2B Procurement project was able to ease
the workload of the company’s procurement
department by automating the old, paper-bound
purchasing process. The next step of the project
was to negotiate more favourable conditions
with the slimmed-down vendor base and build
up closer business relationships with each one.
$SDUWIURPPRUHHI¿FLHQWSXUFKDVLQJSURFHGXUHV
the company’s buyers have a more interesting job.
Biotech’s scientists should be relieved of routine
p a p e r w or k , e na b l i ng t he m t o c o n c e n t r a t e m o r e o n
research. B2B Procurement is expected to broaden

day-to-day task base (Shaw, 2003).
They’ll have more time to spend on nurturing
relationships and working on optimisation of
projects and other duties. (manager of SAP B2B
project)
Case 3
Fujitsu-Siemens Computers (FSC) showed how
a computer technology division within a large
global organisation succeeded in making the
sell-side e-business processes available over the
Internet. An order and request (extranet) system
was developed as an appropriate online sales
system by leveraging the power of graphics and
Internet technology, thus extending the reach for
FURVVGLYLVLRQDOXVHUV7KHHI¿FLHQF\JDLQVFDPH
from speed, accuracy and security of order trans-
DFWLRQV7KHSULPDU\EHQH¿FLDULHVZHUHWKHRWKHU
business partners (divisions) and independent
partners. The result was one of considerable cost
saving and greatly improved online sales, through
any time, anywhere access (Siemens, 1999).
Interestingly, while the project was rated
moderately successful the opposition came from
the partner reluctance to implement the same sys-
WHPGXHWRWKHFRQÀLFWRIWKHHVWDEOLVKHGRIÀLQH
sales channels. Further, the lack of a coordinated
corporate wide strategy by the parent company
was viewed as the main obstacle for uptake of the
system by the business partners.
The lessons learned were two fold; (1) the use

of a common platform needs the agreement of all
functions, (2) The internal and external market-
ing of the facility is essential to the acceptance of
divisional business network and to foster end-user
acceptance of the technological change in business
S U DF W LF H 2 QF H WK H L Q L W LD O E H Q H ¿W V E U R N H G RZ Q X V H U 
UHOXFWDQFHPDQDJHPHQW³DVVXPHG´UHVSRQVLELOLW\
and leadership for a new global strategy. It high-
lights the need to evolve a coordinated corporate
VWUDWHJ\DQGHQFRXUDJHVWKHEDODQFLQJRIFRQÀLFW-
ing organisational knowledge when contemplating
the adoption of e-business solutions.
We are beginning to recognise the potential
EHQH¿WVRIOHYHUDJLQJRXUHEXVLQHVVSURFHVVHV
and functionality through the new Web-based
environment. (SBS manager)
37
Managing E-Business Change
Case 4
,Q'HOOSLRQHHUHGLWV¿UVW%%³HEXVLQHVV
integration” with an established customer compa-
ny, LSI. This case demonstrates a comprehensive
approach to inter-enterprise computing. This is
an example of an integration architecture made
possible through a variety of backend systems and
procurement systems. LSI, was able to leverage
its existing backend system and SAP business
connector supported by Web technology to com-
municate directly with Dell’s e-business system.
The integration between LSI’s SAP system and

B2B e-procurement application to Dell catalogues
automated the procurement of Dell products via
the Internet (Dell, 2000).
:HDUHEHJLQQLQJWRUHFRJQLVHWKHSRWHQWLDOEHQH¿WV
of leveraging our partners SAP R/3 business pro-
cesses and functionality through B2B e-Commerce
integration. (Dell’s B2B project manager)
FINDINGS AND IMPLICATIONS
7KHRYHUDOO¿QGLQJVVKRZWKH'HOO&RUSRUDWLRQ
achieved most success, Fujitsu-Siemens Comput-
ers achieved moderate success, while Halliburton
was least successful. Assuming these ratings
UHÀHFWWKHSUHVHQFHRIIDFLOLWDWRUVDQGLQKLELWRUV
WKHQWKHLQLWLDO¿QGLQJVLQGLFDWHWKDWDVXFFHVVIXO
project should have facilitators in all components,
including the business environment and project
management, (e.g., Dell). Further there is the
implication that the least successful e-business
projects will have inhibitors in the areas of cul-
tural readiness and change management practice,
(e.g., Halliburton).
Evaluation of E-Business Project
Success
Table 1 summarises the data captured on each
construct. Consistent with the research objec-
WLYHVVSHFL¿FSUREHVZHUHPDGHFRQFHUQLQJWKH
constructs of each component of eBC. In addi-
tion, any construct that had a positive or negative
LQÀXHQFH RQ FRQGXFWLQJ H%& RU RYHUDOO H%&
effectiveness, was documented with either a plus

(+) or a minus (–) sign. These positive or negative
LQÀXHQFHVZHUHLGHQWL¿HGDQGFURVVYDOLGDWHGHL-
ther through direct statements by the respondents
during the interview or from other data sources.
In some cases, both positive and negative (+ &
–) contributions were found from one component
variable. For Halliburton leadership was found to
exhibit (+ & –) contributions.
Table 1 is especially useful in separating those
constructs that have variance across the range
B2B Interactions and those that have none. For
stimuli all four case were the same, proactive but
reacted very differently to stimuli. To be success-
ful, eBC management must support a proactive
way the organisation reacts to the stimuli. While
most successful organisations had positive char-
acteristics, not all characteristics were seen to be
HTXDOO\LPSRUWDQWRULQGHHGWRGLUHFWO\LQÀXHQFH
success. Some constructs such as cross-functional
cooperationZHUHVHHQDV³VDWLV¿FLQJ´IDFWRUVWKDW
is, they needed to be present but not necessary
to be excellent. These involve components other
than strategy and cultural readiness.
Lessons Learned
In Table 1, Dell is rated as the most successful
project consistently showing positive facilitators
in all components of the eBC model. In contrast,
FSC acknowledged many inhibitors, and is rated
moderately successful. Inhibitors to eBC were
clustered in the areas of cultural readiness and

change management.
7KHVHUHVXOWVFRQ¿UPWKDWWKHPRUHVXFFHVV-
ful projects were found to have facilitators in all
components of the eBC framework, including the
change environment and project management.
Further, there is the implication that the least suc-
cessful e-business projects will have inhibitors in
38
Managing E-Business Change
7DEOH'HWDLOHG¿QGLQJVIRUHDFKFRQVWUXFWZLWK±LGHQWL¿HG
eBC Components
constructs
Case #1
Halliburton
Case #2
Biotech
Case #3
FSC
Case #4.
a
Dell & LSI
b

Strategic Initiatives
stimuli + pro-active? + pro-active + pro-active +
a
pro-active
b
+
formulation scope incremental incremental revolutionary

a
incremental,
revolutionary
b

decision making autocratic
(centralised)
+ champion
emergence
- autocratic +
a
champion
emergence
b

strategy led eventually onset -onset +
a
onset
b
+
Cultural Readiness
change agents + & - + leadership - leadership
a
+ leadership
risk aversion welcomed welcomed cautious -? +
a
welcomed
b
+
extent of open communictn. + + ? +

Learning Capacity
improve efficiency learn by doing learn by doing learn by doing +
a
learn by doing
b

adaptation + learning from
others
response to IT
change
response to IT
change
+
a
learning from
others

response to IT
b

learning type double-loop + double-loop single-loop +
a
double-loop
single-loop
b
+
external information use boundary
spanners
technology gate
keeper

boundary
spanners,
customers +
+
a
boundary
spanners,
technol. keeper
b

declarative knowledge knowledge base R&D resources
IT
R&D resources
IT, knowledge-
base
+
a
focus on core
competencies
b

eBC Components
constructs
Case #1
Halliburton
Case #2
Biotech
Case #3
FSC
Case #4.

a
Dell & LSI
b

IT Leveragability
role of IT +enabling &
socio-technical
dominant factor dominant factor +
a
enabling
b
+
use Internet technology + superior + adequate + adequate +
a
superior
b
+
Network relationships
inter-organisational
linkages
+ cooperative + cooperative cooperative +
a
cooperative
b
+
cross-functional
cooperation
adequate + superior adequate +
a
adequate

b
+
Change Mgt Practice
mgt’s. readiness to change participative committed - participative +
a
committed,
participative
b

pattern of change + + - +
a

scope of change improvement radical change improvement
a
improvement,
radical change
b

managed change alleviation of
dissatisfaction
+ a well managed
change process
a vision for
change, a well
managed change
+
a
evolutionary,
revolutionary
change tactics

b
+
e-Bus. Mgt Practice
e-business measures improvement
feedback loop
improvement
feedback loop
e-business info.
capture
+
a
use e-bus metrics,
audit
b

use of e-business tools and
techniques
+ adequate adequate + superior +
a
superior,
adequate
b

use of team structure + + + +
a

Key: + = facilitator, - = inhibitor, + & - = facilitator and inhibitor, ? = unknown
39
Managing E-Business Change
both dimensions, especially in the area of cultural

readiness and change management (Farhoomand,
Markus, Gable, & Khan, 2004).
The cases highlight the need to evolve a co-
ordinated corporate strategy and encourage the
EDODQFLQJRIFRQÀLFWLQJRUJDQLVDWLRQDONQRZOHGJH
when contemplating the adoption of e-business
solutions. While this research found an important
role for IT in support of eBC, the message from
these case studies is that IT should not drive e-
business projects.
$ OW K RXJ K D OOIRX UFD V H VUH S RU WH GD³SURD F W LYH´ 
response to the strategic stimuli construct, each
reacted very differently to stimuli. In manag-
ing eBC, the organisation needs be proactive in
reacting to stimuli. While the most successful
organisation had positive characteristics in all
components, not all characteristics were seen to
EHHTXDOO\LPSRUWDQWRULQGHHGWRGLUHFWO\LQÀX-
ence success (Markus, Axline, Petrie, & Tanis,
2000). This is viewed as a satisfying condition
for success.
A MODEL FOR MANAGING
E-BUSINESS CHANGE
:KLOHWKHVWXG\XVHGDÀDWPRGHORIH%&ZKHUH
all constructs in Table 1 were considered anteced-
ents to success, the results from the case analyses
VXJJHVW D PRUH VRSKLVWLFDWHG FRQ¿JXUDWLRQ RI
interrelated components. A dynamic model for
managing eBC is proposed for future studies
where the focus is on inter-relationships between

the components of eBC within three core levels
of business activity: strategy, development and
management.
Figure 2 represents a new conceptual frame-
work for managing eBC distilled from the case
¿QGLQJV,WLOOXVWUDWHVKRZVWUDWHJ\GULYHVGHYHO-
opmental and management activity, management
supports developments in e-business, which in
turn provides feedback to strategic planning
(Kaplan & Norton, 2004; Kaplan & Sawhney,
2000).
Strategy/Planning Level
Strategic Initiatives
7KHUH WHQGV WR EH VWUDWHJLF ³VWLPXOL´ UDQJLQJ
from competitive pressures, continued market
leadership, customer expectations, employee dis-
VDWLVIDFWLRQDQGRUJDQLVDWLRQLQHI¿FLHQFLHVWKDW
trigger managers to undertake eBC:
 $FFRUGLQJWRWKHVH¿QGLQJVPDQDJHPHQW
of eBC does not have to be proactive to be
successful, but rather by the way the organi-
s a t i o n re a c t s t o t h e s t i m u l i . T h is i s v i e we d a s
DVDWLV¿FLQJFRQGLWLRQIRUPDQDJLQJH%&
• Incremental eBC can work but appears to be
appropriate when risk aversion is welcomed.
Also incremental projects were perceived as
revolutionary in nature.
• Successful eBC projects establish an objec
-
tive and unbiased team or individual cham-

pion that continues to push the organisation
DQGJURXSVWR¿QGQHZLQQRYDWLYHSURFHVVHV
Figure 2. A model for managing e-business
change
40
Managing E-Business Change
These champions must be empowered to
implement the changes within a culture of
e-business readiness (Segev & Gebauer,
2001).
Cultural Readiness
To address complexities of change, each com-
ponent must be aligned, along with the enabling
technology, to the strategic initiatives (Hester-
brink, 1999):
• An organisation attempting to change per
-
formance radically seems to require some
³VHQVHRIXUJHQF\´LQWKHLUEXVLQHVVVLWXD-
tion, which translates in turn into a compel-
ling vision that is espoused throughout the
organisation (Farhoomand et al., 2004).
• To overcome pockets of reluctance to change,
an organisation’s vision for change must
provide an atmosphere of communication
where individual concerns are not seen
negatively but rather welcomed (Craig &
Jutla, 2000)
• An important ingredient in the right cultural
m i x f o r s u c c e s s f u l e B C i s l e a d e r s h i p f ro m t h e

top and initiatives from employees, together
w i t h a n a t m o s p h e r e o f o p e n c o m m u n ic a t io n ,
participation, committed cross-functional
access to experts, and committed inter-
organisational focus (Farhoomand et al.,
2004).
Development Level
1. Learning Capacity: Successful eBC proj-
ects are enabled in organisations that:
• have a propensity to learn from best
practice and customer needs,
• exhibit learning whereby employees
LQGLYLGXDOO\ DQG FROOHFWLYHO\ UHÀHFW
on their past experiences, modify their
course when necessary, and discover
new opportunities, a new culture of
the learning organisation.
2. Relationship Building: Successful eBC
projects require commitment between
partner organisations to use common IT
platforms and sharing of corporate informa-
tion (Oliver et al., 2003).
3.
Knowledge Capability: Successful eBC
projects are enabled in organisations that
leverage external information and experts,
and focus on core competencies.
4.
IT Leveragability: Successful eBC involves
the coalescence of ‘IT’ and e-business best

practice, whereby IT plays a supportive, but
n o t a l w a y s c o m m a n d i n g r o l e t h a t i s l i n k e d t o
the business case for eBC. Balanced consid-
eration of the social, technical, and business
value elements should be maintained during
implementation (Hesterbrink, 1999).
Management Level
$ZHOOGH¿QHGWUDQVSDUHQWPDQDJHPHQWDSSURDFK
should include a documented methodology of
FKDQJH XVH REMHFWLYH DQG TXDQWL¿HG PHWULFV
showing the value of change, continuously com-
municate process metrics to senior management,
and possess a well-documented rollout of the
new e-business design (Dell, 2000, Farhoomand
et al., 2004).
To achieve this requires continuous articulation
and recognition of the value of reporting results,
as well as monitoring each individual’s contribu-
tion and accountability to the overall company’s
change effort. At this individual level, concern
should be placed on how the eBC will improve
employee satisfaction and the quality of work life
(Guha et al., 1997).
The nature of change was reported to be
participative change resulting in an evolutionary
FKDQJHWDFWLF7KLVZDVYLHZHGDVD³ZDWHUIDOO´
progression of change, starting with an alleviation
of dissatisfaction by employees and eventually
41
Managing E-Business Change

working towards a well-managed e-business
implementation from: (1) the alleviation of dis-
satisfaction, (2) with a vision for change, (3)
by evolutionary change tactics, and (4) a well-
managed process for change (Guha et al., 1997;
Farhoomand et al., 2004).
FUTURE TRENDS
:KLOHWKHVWXG\XVHGDÀDWH%&PRGHO)LJXUH
1) where all constructs were considered ante-
cedents to success, a new model (Figure 2) was
GHYHORSHGIURPFDVHWKH¿QGLQJV7KLVG\QDPLF
model for managing eBC is recommended for
use in future studies. It suggests an investigation
of inter-relationships between the three levels of
strategic planning, organisational development
and management, as well between the components
embedded within the levels.
The cases presented used an established
research framework for gathering evidence to
identify the factors for success of an e-business
project. This research framework demonstrated its
ability to examine complex phenomena. It is seen
as evolutionary in nature, and was content driven.
It is essentially a diagnostic tool for identifying
factors contributing to success of new e-busi-
QHVVPRGHOV,WVSHFL¿FDOO\XVHIXOIRUH[SORULQJ
the phenomena related to the success of learning
organisations where the key issues remain as
people oriented organisational issues.
CONCLUSION

7KHUHVXOWVFRQ¿UPWKDWDVXFFHVVIXOSURMHFWZDV
found to have facilitators in all components of the
eBC framework, including the change environ-
ment and management practice. Further, there is
the implication that the least successful e-business
projects will have inhibitors in both components,
especially in the area of e-business readiness and
change management.
While broad generalisations from the four case
studies are viewed as premature, various patterns
of constructs were developed as indicators that
have implications for both research and practice.
These patterns represent indicators for: success,
failure, a tendency to mediocrity, and variances
across B2B interaction, where the latter is regarded
DVWKHPRVWVLJQL¿FDQWLQGLFDWRU
The eBC framework (Figure 1) and associated
semi-structured interview protocol was found to
be a useful research tool for exploring the complex
phenomena of eBC. A new model for managing
eBC (Figure 2) is recommended to other research-
ers in exploring the topic further.
REFERENCES
Barua, A., Konana, P., Whinston, A. B., & Yin,
F. (2001, Fall). Driving e-business excellence.
Sloan Management Review, 36-44
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KEY TERMS
Change Management: The coordination and
action by management required to lead the change
of organisational systems and structures in order
to support a new business activity or effort.
Cultural Readiness: The preparedness of an
organisation’s culture of its people and processes
(past and present) to facilitate or inhibit change.
E-Business Change: The processes surround-
ing the effective management of different stages
of online business development and growth.
E-Business Outcomes: E-business forces
change to occur in three corporate domains;
technology, process, and people–at strategic and

operational levels.
E-Business Performance Gains: The im-
provement in; corporate resourcing, employee
work life and customer satisfaction.
43
Managing E-Business Change
E-Readiness or E-Business Readiness: The
preparedness of an organisation’s technology,
processes, and people to facilitate or inhibit e-
business development.
This work was previously published in Encyclopedia of E-Commerce, E-Government, and Mobile Commerce, edited by M.
Khosrow-Pour, pp. 729-735, copyright 2006 by Information Science Reference (an imprint of IGI Global).