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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
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:
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
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)
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Managing E-Business Change
3. Is the eBC framework appropriate for iden- Case Selection 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
Eight cases were used for an initial assessment of WKHFRPSRQHQWVRIWKHH%&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 DVVHVVHGIRUWKHLUFRQWULEXWLRQRULQÀXHQFHWRWKH 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:
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:
• Case 1, Halliburton: [nil] business-to-em-SOR\HH%(³Employee Tracking”
• Case 2, British Biotech: [low] business-to-VXSSOLHU%6³B2B Procurement”
• Case 3, Fujitsu-Siemens: [mod] business-WRFXVWRPHU%&³Online Sales”
&DVH`HOO /6,>KLJK@%6%&³B2B E-Commerce Integration”
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.
CASE SUMMARIES
Case 1
)RU+DOOLEXUWRQWKHSULPDU\EHQH¿FLDULHVZHUH the offshore project managers who needed access to the HR employee tables for personnel manage-ment and gained this through the innovative use
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).
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,
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Managing E-Business Change
but at the same time, development and mainte-nance of personal and professional reputations ZDVDVLJQL¿FDQWGULYHU,QWHUHVWLQJO\ZKLOHWKH 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 FXOWXUH2QFHWKHEHQH¿WVEURNHGRZQWKHLULQLWLDO 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. $SDUWIURPPRUHHI¿FLHQWSXUFKDVLQJSURFHGXUHV the company’s buyers have a more interesting job. Biotech’s scientists should be relieved of routine paperwork, enabling them to concentrate more on 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 FURVVGLYLVLRQDOXVHUV7KHHI¿FLHQF\JDLQVFDPH from speed, accuracy and security of order trans-DFWLRQV7KHSULPDU\EHQH¿FLDULHVZHUHWKHRWKHU 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-WHPGXHWRWKHFRQÀLFWRIWKHHVWDEOLVKHGRIÀLQH 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 SUDFWLFH2QFHWKHLQLWLDOEHQH¿WVEURNHGRZQXVHU UHOXFWDQFHPDQDJHPHQW³DVVXPHG´UHVSRQVLELOLW\ and leadership for a new global strategy. It high-lights the need to evolve a coordinated corporate VWUDWHJ\DQGHQFRXUDJHVWKHEDODQFLQJRIFRQÀLFW-ing organisational knowledge when contemplating the adoption of e-business solutions.
We are beginning to recognise the potential EHQH¿WVRIOHYHUDJLQJRXUHEXVLQHVVSURFHVVHV and functionality through the new Web-based environment. (SBS manager)
36
Managing E-Business Change
Case 4
,Q`HOOSLRQHHUHGLWV¿UVW%%³HEXVLQHVV 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).
:HDUHEHJLQQLQJWRUHFRJQLVHWKHSRWHQWLDOEHQH¿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
7KHRYHUDOO¿QGLQJVVKRZWKH`HOO&RUSRUDWLRQ achieved most success, Fujitsu-Siemens Comput-ers achieved moderate success, while Halliburton was least successful. Assuming these ratings UHÀHFWWKHSUHVHQFHRIIDFLOLWDWRUVDQGLQKLELWRUV WKHQWKHLQLWLDO¿QGLQJVLQGLFDWHWKDWDVXFFHVVIXO 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-
WLYHVVSHFL¿FSUREHVZHUHPDGHFRQFHUQLQJWKH constructs of each component of eBC. In addi-tion, any construct that had a positive or negative LQÀXHQFHRQFRQGXFWLQJH%&RURYHUDOOH%& effectiveness, was documented with either a plus (+) or a minus (–) sign. These positive or negative LQÀXHQFHVZHUHLGHQWL¿HGDQGFURVVYDOLGDWHGHL-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\LPSRUWDQWRULQGHHGWRGLUHFWO\LQÀXHQFH success. Some constructs such ascross-functional cooperationZHUHVHHQDV³VDWLV¿FLQJ´IDFWRUVWKDW 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.
7KHVHUHVXOWVFRQ¿UPWKDWWKHPRUHVXFFHVV-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
37
Managing E-Business Change
7DEOH`HWDLOHG¿QGLQJVIRUHDFKFRQVWUXFWZLWK ±LGHQWL¿HG
eBC Components constructs
Strategic Initiatives stimuli
formulation scope
decision making
strategy led Cultural Readiness
change agents risk aversion
extent of open communictn.
Case #1 Halliburton
+ pro-active? incremental
autocratic (centralised) eventually
+ & -welcomed +
Case #2 Biotech
+ pro-active incremental
+ champion emergence onset
+ leadership welcomed +
Case #3 FSC
+ pro-active revolutionary
- autocratic
-onset
- leadership cautious -? ?
Case #4. aDell & LSIb
+ apro-activeb + aincremental, revolutionaryb + achampion emergenceb + aonsetb +
a+ leadership + awelcomedb +
+
Learning Capacity
improve efficiency learn by doing adaptation + learning from
others
learning type double-loop
external information use boundary spanners
declarative knowledge knowledge base
learn by doing response to IT change
+ double-loop
technology gate keeper
R&D resources IT
learn by doing response to IT change
single-loop
boundary spanners, customers + R&D resources IT, knowledge-base
+ alearn by doingb + alearning from others response to ITb + adouble-loop single-loopb + +aboundary spanners,
technol. keeperb + afocus on core competenciesb
eBC Components constructs
Case #1 Halliburton
Case #2 Biotech
Case #3 Case #4. FSC aDell & LSIb
IT Leveragability
role of IT +enabling & socio-technical
use Internet technology + superior
dominant factor
+ adequate
dominant factor
+ adequate
+ aenablingb +
+ asuperiorb +
Network relationships inter-organisational
linkages cross-functional
cooperation
+ cooperative
adequate
+ cooperative
+ superior
cooperative
adequate
+ acooperativeb+
+ aadequateb +
Change Mgt Practice mgt’s. readiness to change
pattern of change scope of change
managed change
participative
+ improvement
alleviation of dissatisfaction
committed - participative
+ -radical change improvement
+ a well managed a vision for change process change, a well
managed change
+ acommitted, participativeb + a aimprovement,
radical changeb + aevolutionary, revolutionary change tacticsb +
e-Bus. Mgt Practice
e-business measures
use of e-business tools and techniques
use of team structure
improvement feedback loop + adequate
+
improvement feedback loop adequate
+
e-business info. capture
+ superior
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