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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

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 DQH[FHOOHQWIUDPHZRUNLQZKLFKWRSRVLWLRQKXPDQFRPSXWHULQWHUDFWLRQZLWKLQWKH¿HOGRILQIRUPDWLRQ science and technology Individual contributions provide overviews of ubiquitous computing, cognitive LQIRUPDWLFVDQGVRFLRWHFKQLFDOWKHRU\ZKLOHDOVRH[SORULQJFULWLFDOVWXPEOLQJEORFNVRIWKLV¿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.

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

WRWKHLGHQWL¿FDWLRQWKHRUGHULQJDQGWKHDVVHVV-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

¿UVWVWDJHRIWKHdecision-making process

Figure 1 shows how a systematic

decision-mak-ing process can be organized by usdecision-mak-ing e-business

options The steps are based on Simon’s

intel-ligence, design, and choice trichotomy (Simon,

1960) First, alternative e-business options have

WREHLGHQWL¿HGDQGRUGHUHG7KHQWKHSRVVLEOH

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)LJXUHWKLVLVFDOOHGWKH³IRUPDOOLIH F\FOH´:HZLOODSSO\WKHZRUG³HEXVLQHVVRSWLRQ´ referring to the possibility to use an electronic network for a business purpose An e-business RSSRUWXQLW\LVGH¿QHGKHUHDVDQDVVHVVHGDQG 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 FDOOHG³LQWHUPHGLDWHIHHGEDFN´

The methodology presented in this article

IRFXVHVPDLQO\RQWKH¿UVWVWDJHRIWKHGHFLVLRQ

making process: the LGHQWL¿FDWLRQRIHEXVLQHVV

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-LQJWKHLGHQWL¿FDWLRQRIHEXVLQHVVRSWLRQVIURP 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 SODFHDIWHUWKHLGHQWL¿FDWLRQRIRSWLRQVZKLFKLV the focus of this article

fo rm a l life c yc le in te rm e d ia te

f e e d b a c k

Im p lem e n tin g , o p e ra tin g ,

m a in ta in in g a n d e va lu a tin g

e -b u s in e s s o p p o rtu n itie s

A ss e s s in g a n d s e le c tin g

e -b u s in e s s o p tio n s

S p e c ifyin g a n d d e sig n in g

e -b u s in e s s o p p o rtu n itie s

Ide ntifying a nd o rd erin g

e -b us i n es s o p tion s

F o c u s o f t h e a rtic le

Figure 1 Focus of the article in the light of the desicionmaking context

3

Barua, Konana, Whinston, and Yin, (2001)

introduce an e-business value model that supports

management in determining where to deploy

RUJDQL]DWLRQDOUHVRXUFHVE\KLJKOLJKWLQJVSHFL¿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

$QVRIIZKRLGHQWL¿HVSURGXFWPDUNHWDUHDV

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

they should merely focus on existing products and

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 ¿UVWRUGHU VHFRQGRUGHU

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

ZLOOEHLGHQWL¿HGH[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/serproduct/ser-vice 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-WLRQVLWKDVWREHLGHQWL¿HGZLWKZKLFKSDUWLHV

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 WKLVRXWVLGHZRUOGKDVEHHQLGHQWL¿HGWKHZD\RI 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

Toward the Integrated Virtual Organization and Business Process Automation...

on their existing markets and customers or also

on new markets and customers, and (2) whether

they should merely focus on existing products and

services or also on the... Group Publishing.

Malone, T.W., Yates, J., & Benjamin, R.I (1987) Electronic markets and electronic hierarchies

Com-munications of the ACM, 30(6), 484-497.