Value Creation from E-Business Models (eBook)

Cover 1
Contents 6
List of Figures 8
List of Tables 12
Preface 14
Part One: e-Business Model Ontologies and Taxonomies 20
1 Value-creation from e-Business models: issues and perspectives 22
1.1 Organization of the book 25
References and Further Reading 28
2 Business models and their relationship to strategy 30
Abstract 30
2.1 Introduction 30
2.2 Perspective 1: business models as abstractions of strategy 32
2.2.1 The Harvard school’s latest conceptualization of strategy 33
2.2.2 Business models as abstractions of Porter’s (1996, 2001) conceptualization of ‘strategy’ 37
2.3 Perspective 2: competitive focus versus firm specificity matrix 46
2.3.1 Classifying ‘Harvard school’ conceptualizations of strategy 48
2.3.2 Classifying conceptualizations of business models 49
2.4 Conclusion 51
References and Further Reading 52
3 A framework for codifying business models and process models in e-Business design 54
Abstract 54
3.1 Introduction 54
3.2 Strategy perspective 57
3.2.1 Emergent strategy formulation 57
3.2.2 Environmental models of competitive advantage 59
3.2.3 Resource-based view 59
3.3 Organizational, economic and technical factors 61
3.3.1 Organizational arrangement and factors 61
3.3.2 Economic arrangement and factors 63
3.3.3 Technology arrangement and factors 65
3.4 Business models for e-Business 66
3.4.1 Components of the business model for e-Business 66
3.4.2 Description of the business models for e-Business 67
3.4.3 Business model strategic conceptual framework 68
3.5 A generic framework for e-Business fulfilment modelling 70
3.6 A triple pair interpretation of Weill and Vitale’s business models 74
3.6.1 A triple pair representation of the direct-to-customer model 75
3.6.2 A triple pair representation of the full-service-provider model 77
3.7 Conclusion 80
References and Further Reading 82
4 An ontology for e-Business models 84
4.1 Introduction 84
4.2 Definitions and taxonomies 85
4.3 e-Business model ontology 87
4.3.1 Product innovation and value proposition 89
Mini case: easyMoney.com 92
4.3.2 Customer relationship 92
Target customers 93
Distribution channels 94
Customer equity 97
Mini case: Customer relationships at Orange Switzerland 100
4.3.3 Infrastructure management 101
Capabilities and resources 101
Activities 103
Mini case: Value configuration at ColorPlaza 106
Partnerships 106
4.4 Conclusion 111
References and Further Reading 112
5 e-Business value modelling using the e[sup(3)]-value ontology 117
Abstract 117
5.1 Introduction 117
5.2 Why an e-Business model ontology? 118
5.2.1 Reaching a better understanding 119
5.2.2 Analysing an e-Business model 120
5.3 The e[sup(3)]-value ontology 120
5.3.1 The global actor viewpoint 122
Actor 122
Value object 124
Value port 125
Value offering 125
Value interface 126
Value exchange 127
Value transaction 127
Market segment 129
Summary 130
5.3.2 The detailed actor viewpoint 130
Composite actor and elementary actor 132
Value exchange revisited 133
Summary 134
5.3.3 The value activity viewpoint 134
Value activity 134
Value exchange revisited 136
Summary 136
5.4 The e[sup(3)]-value ontology and operational scenarios 136
5.4.1 UCMs 136
5.4.2 An ontology for UCMs 138
Dependency element 138
Connection element 139
Stimulus element 140
AND and OR continuation elements 140
Value interface 140
5.5 Profitability sheets 140
5.6 Related enterprise ontologies 142
5.6.1 AIAI enterprise ontology 142
5.6.2 TOVE 142
5.6.3 REA 143
5.6.4 Osterwalder and Pigneur ontology 143
5.7 Conclusion and further research 144
References and Further Reading 145
Part Two: e-Business Markets and Strategies 148
6 A causal network analysis of e-market business models 150
Abstract 150
6.1 Introduction 150
6.2 Research methodology 154
6.2.1 Data collection and analysis 154
6.3 Case studies 155
6.3.1 Process description of business models 156
6.3.2 Themes emerging from the interviews 156
6.3.3 Business model, market conditions and user acceptance 156
6.4. Causal network analysis 159
6.4.1 Limitations and further research 161
6.5 Discussion and conclusion 161
6.5.1 Q1: How is the business performance of an EM influenced by the nature of the EM business model? 163
6.5.2 Q2: Does acceptance of EM technology by potential customers of the EM moderate an EMs business performance? 164
Appendix 6A: Structured interview schedule 165
Appendix 6B 168
Appendix 6C: Causal network analysis 168
References and Further Reading 174
7 Knowledge management and e-Commerce: when self-service is not the sensible solution 177
7.1 Introduction 177
7.2 e-Commerce 178
7.3 Knowledge management 182
7.3.1 Different approaches to knowledge management 183
7.3.2 Contingency versus ‘best practice’ 187
7.4 Linking e-Commerce and knowledge management 188
7.4.1 The knowledge demands of the task 189
7.4.2 The value proposition of the company 190
7.5 A contingency approach to e-Commerce 192
7.5.1 Low complexity of knowledge and value proposition based on low cost 192
7.5.2 High complexity of knowledge and value proposition based on low cost 193
7.5.3 Low complexity of knowledge and value proposition based on differentiation 193
7.5.4 High complexity of knowledge and value proposition based on differentiation 194
7.6 Conclusions 194
References and Further Reading 195
8 Perceptions of strategic value and adoption of e-Commerce: a theoretical framework and empirical test 197
8.1 Introduction 197
8.1.1 e-Commerce: an overview 198
8.2 Theoretical framework 199
8.2.1 Perceived strategic value of IT 199
Value of IT: investment and firm performance assessment 200
Value of IT: perceptual assessment 201
8.2.2 IT adoption 202
Application programs 202
CASE 203
GSS 203
EDI 203
The Internet/WWW and corporate Web sites 204
e-Commerce 205
8.2.3 Proposed framework 205
8.3 Empirical evidence from the field 208
8.3.1 Subjects 211
8.3.2 Data collection 211
8.3.3 Instrument development 212
8.3.4 General statistical procedure 213
8.4 US and Chile studies 214
8.4.1 The case of US 214
Demographics: Study 1 214
Confirmatory factor analysis: Study 1 214
Canonical analysis: Study 1 216
8.4.2 The case of Chile 217
Demographics: Study 2 217
Confirmatory factor analysis: Study 2 217
Canonical analysis: Study 2 218
8.5 Implications of the two studies 220
8.6 Conclusions and future research 221
8.6.1 Future research 223
References and Further Reading 224
Part Three: e-Business Performance Measurement and Value Creation 230
9 Value creation from corporate Web sites: how different features contribute to success in e-Business 232
9.1 Introduction 232
9.2 Understanding the media characteristics of the Worldwide Web 233
9.2.1 Web features: definitions and practical implementations 233
9.2.2 Literature review 237
IS/IT adoption and the role of ease of use 237
The link between adoption of IS/IT and corporate success 238
The business value of IT 238
The Web features and the quality of Web sites 239
9.3 Research model 239
9.3.1 Research aim and model perspective 239
9.3.2 Conceptualizing corporate success in e-Business 240
9.3.3 Derivation of hypotheses 240
9.4 Method 241
9.4.1 The survey 241
Aggregation of survey data 241
Descriptive analysis 242
Statistical analysis and hypothesis testing 242
9.4.2 Summary of the results 243
9.5 Discussion 243
9.5.1 Explanation of the findings 243
9.5.2 Interpretation of selected results 244
9.6 Future trends and conclusion 245
9.6.1 Research opportunities 245
9.6.2 Implications for managerial practice 245
References and Further Reading 246
10 Evaluating the quality of e-Business implementation with E-Qual 248
10.1 Introduction 248
10.2 The provenance of E-Qual 248
10.2.1 E-Qual 1.0 248
10.2.2 E-Qual 2.0 249
10.2.3 E-Qual 3.0 250
10.2.4 E-Qual 4.0 251
10.2.5 Internet bookstores – it’s not just about the Web site 252
10.3 Applying E-Qual to the FSMKE 254
10.3.1 The e-government context 254
10.3.2 The FSMKE 255
10.3.3 Research design 255
10.3.4 Survey implementation 255
10.4 The FSMKE evaluation 259
10.4.1 Perceptions of importance 259
10.4.2 Weighted scores and the EQI 259
10.4.3 Analysing the differences in the sites 262
10.4.4 Differences in perception among respondent groups 263
10.4.5 Qualitative data 264
Before site redesign 264
After site redesign 266
10.5 Recommendations for the FSMKE for e-Business improvement 267
10.5.1 Further implications 268
10.6 Summary 269
References and Further Reading 269
11 The e-sourcing opportunity: from projects and ASPs to value networks 272
11.1 Introduction 272
11.2 Research background 273
11.2.1 Sourcing Internet implementation capability 274
11.2.2 Sourcing e-development: four routes 275
The in-house development path 276
The ‘cheap-sourcing’ path 278
The outsourcing path 279
The insourcing/partnering path 280
Mixed development paths 280
11.3 e-Sourcing: from projects and technology to strategic partnering 282
11.3.1 Strategic partnering[sup(2)] in the customer resource life cycle 284
11.3.2 Strategic partnering[sup(2)] developments in the supply chain 286
11.3.3 Strategic partnering[sup(2)] towards virtual integration 289
11.4 Bringing IT together: management implications for e-sourcing 292
11.5 Conclusion: developments 294
Appendix 11A 295
Notes 298
References and Further Reading 298
12 Value creation in application outsourcing relationships: an international case study on ERP outsourcing 302
Abstract 302
12.1 Introduction 302
12.2 Theoretical foundation 304
12.2.1 Outsourcing and ERP outsourcing 304
12.2.2 RBV 305
Tangible IT resources 306
Human IT resources 306
IT-enabled intangibles 306
12.2.3 Contracts and SLAs 307
Transaction cost theory 307
Incomplete contract theory 307
12.2.4 RV 308
Relation-specific assets 308
Knowledge-sharing routines 309
Complementary resources and capabilities 309
Effective governance 309
12.3 Research approach 310
12.3.1 Research model 310
12.3.2 Case study research 310
12.4 Case study description 312
12.4.1 Capabilities 313
12.4.2 Contracts and SLAs 315
12.4.3 Inter-organizational relationships 315
12.5 Model-based analysis 316
12.5.1 Capabilities 316
IT infrastructure 316
Human IT resources 317
IT-enabled intangibles 318
12.5.2 Contracts and SLAs 318
ERP licences contract 319
ERP hosting contract 319
Information systems hardware contract 319
ERP functional application support contract 320
12.5.3 Inter-organizational relationship 320
Relation-specific assets 320
Knowledge-sharing routines 321
Complementary resources and capabilities 321
Effective governance 321
12.6 Lessons learned 322
12.6.1 Capabilities of the Service Recipient 322
12.6.2 Capabilities of the Service Providers 322
12.6.3 Impact of contracts 323
12.6.4 Impact of inter-organizational relationships 323
12.7 Discussion 324
12.7.1 The impact of market dynamics 324
12.7.2 The introduction of ERP software branch-specific modules 324
12.7.3 ERP software vendor consolidation 324
References and Further Reading 325
Part Four: e-Business Applications and Services 330
13 NHS information systems strategy, planning and implementation of primary service provision 332
13.1 Introduction 332
13.2 IS strategy, planning and implementation within the NHS 333
13.2.1 The problem: delivering value from NHS IS strategy 334
13.2.2 Software-as-a-Service to healthcare 335
13.2.3 Introducing the ASP model within the NHS: opportunity or threat? 336
13.2.4 PSP strategy, planning and implementation 336
13.3 Types of applications and Web service technology 338
13.3.1 Three generations of Internet technology 339
Simple Web server technology 339
Extended Web server technology 340
Advanced object-based Internet applications 341
13.3.2 Key issues and benefits 342
Cost reduction 342
Flexibility and speed 342
Patient care 343
Trust networking and strategic partnerships 343
Organizational impact 343
The future 344
13.3.3 Key suppliers 344
IBM 344
Oracle 344
Sun 345
Microsoft 345
ERP vendors 345
13.4 ASP concerns and risks 345
13.5 Web services applications in the NHS 347
13.5.1 ICRS 347
13.5.2 Delivering manageable applications 349
13.6 Conclusion 350
References and Further Reading 351
14 A framework of integrated models for supply chain e-Management 354
Abstract 354
14.1 Introduction 354
14.2 The concept of supply chain e-Management 356
14.3 SCNs: trends, major issues, and e-Management processes 357
14.3.1 Scalability in SCNs 360
14.4 General framework of supply chain e-Management and supporting technologies 363
14.5 Related research review 369
14.6 Models of problem solving in supply chain e-Management 370
14.6.1 General framework of SCN systems development 371
14.6.2 Taxonomy of domain-independent models 374
14.6.3 Taxonomy of domain-dependent models 376
14.7 Summary and conclusions 380
Appendix 14A A co-operative supply chain system decomposition model 381
Appendix 14B A co-operative supply chain system dynamic process flow model 382
References and Further Reading 384
15 Building out the Web services architecture: the challenge of software applications integration 389
15.1 Introduction 389
15.2 The evolution of software applications: a recent history 391
15.2.1 The xSP landscape 393
15.2.2 ASP 396
Definitions of ASP 396
The ASP market 397
Poor adoption and diffusion of ASP 398
15.2.3 Web services 400
Definitions of Web services 400
The Web services market 400
A new e-Business model or ‘more hype’? 402
15.3 Integration: the challenge for Web services? 406
15.3.1 Web services: a technical overview 406
From object-orientated component computing to Web services 406
EAI, ASP and Web services 407
The promise of Web services 407
The structure of SOAs 408
A comparison between Microsoft’s .NET and Sun’s J2EE platforms 409
15.3.2 Web services: the business benefits 412
Integration: the challenge for Web services? 412
15.4 Integration: two case studies in the financial services industry 414
15.4.1 Firm A 414
15.4.2 Firm B 414
15.4.3 The OMS 414
15.4.4 Complex systems and data 419
15.5 A case study on Web services at Amazon.com 420
15.5.1 Discovery and integration of the online Amazon Web service 420
15.5.2 Lessons learned as Amazon Web services’ client 421
15.6 Conclusion 422
References and Further Reading 423
About the authors 428
Glossary of terms 436
A 436
B 436
C 436
D 436
E 436
F 436
G 437
I 437
J 437
M 437
N 437
O 437
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T 438
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X 438
Index 440
A 440
B 440
C 440
D 441
E 441
F 441
G 442
H 442
I 442
J 442
K 442
L 442
M 442
N 442
O 442
P 443
Q 443
R 443
S 443
T 443
U 443
V 444
W 444
X 444