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E-Transformation

Several trends in the marketplace are already pointing to the signs of e-transformation, all of which are focused on allowing businesses to get to the customer faster, with more velocity and more value. E-transformation involves changes in how a company does business, how it enters new markets, how it communicates across the enterprise, and how it deals with suppliers (Budhwani, 2001). Above all, transformation is about customers—changing the means by which companies find, sell to, service, and communicate with them (Wilder, 1999). In a recent Information Week Research survey of 300 IT executives, the most common “transformational” initiative under way at their companies was interaction with customers (Wilder, 1999). An e-transformed company is a company that has implemented a combination of aggressive deployment of e-business enablers to change business and supply-chain components. Examples of e-transformation are everywhere. Auto manufacturers are bringing on-line processes to a sales culture that has never been before. Many companies are offering on-line access to their products and services and offering self-service applications. Airline industry is bringing IT to bear on virtually every aspect of its customer experience.

E-transformation not only helps companies to hack away at the intermediaries between them and their customers, but also to reward and reinforce the links that are delivering new and different types of values to customers. Companies undertaking e-transformation are concurrently applying value management principles, reengineering their core business processes, and implementing enabling e-technologies -- all with the intent of developing and implementing innovative business models. E-technologies provide the opportunities to build new business models but do not assure their success. To stay ahead, the e-transformed company will need to continue to implement innovation. The e-transformation strategic direction will provide the high-level description of new business concepts and the required modifications to the existing business model, organizational capabilities and infrastructure, and method of interaction with customers and external partners (Schuh, Mueller, & Tockenbuerger, 2002). At its core, e-transformation is about breaking down walls -- internal walls between business and IT and between other company functions -- but even more radically, walls between what is inside and outside the company. The Internet, of course, offers an unprecedented vehicle to do that for customers, suppliers, and business partners. But it is not just about opening doors with extranets and customer self-service web sites. It is about a new mind-set -- opening the company to new partnerships and new ideas from unexpected sources. The Process-Technology-People (P-T-P) approach describes the operational behavior of organizations, in how an organization’s business processes interact with each other, with the processes of its customers and suppliers, and with other external business processes. This simple, yet powerful framework is based on the fact that the processes are performed by people using relevant information systems applications and technologies. The interaction between business processes occurs, in fact, via the interconnection of applications and technologies, and via the cooperation of people. Thus the change management framework is divided into five different dimensions. The e-transformation model based on Process-Technology-People (P-T-P) Model (Sharpe, 1989) is presented in Figure 1.


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