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Chapter I. Innovation and Change Managem... > E-Business Change Management Issues

E-Business Change Management Issues

The issues discussed in the following section include variables that can be modified, adjusted and combined so that they can be practically applied to organisations of different sizes, and are particularly relevant to those operating as traditional businesses adopting new information technologies to become ’bricks and clicks’.

Identifying the Strategic Opportunities of E-Business Innovation

E-business in organisations is linked with the Internet and the growth in the use and application of computers. The identification and establishment of strategic opportunities of e-business for the firm will lead to an understanding of the innovation and its justification for improved business, competitiveness and customer service. Hackbarth and Kettinger (2000) suggest a four stage ’strategic breakout’ model addressing initiation, diagnosis of the industry environment, breakout to establish a strategic target and transition or plotting a migration path, emphasising the need to innovate away from traditional strategic approaches by using the term ’breakout’ to show the need for new marketplace structures and business revenue models. UK Institute of Directors (2000) illustrates the difference between traditional business strategy and e-business strategy by suggesting a short planning horizon for e-business projects, an iterative strategic planning cycle to incorporate the pace of technological change, an informational power base for access, control and manipulation of critical information instead of a positional power base and the core focus to be on customers rather than the factory and production of goods. Deise et al. (2000) emphasise that the focus of e-business strategy will vary according to the evolutional stage of e-business, suggesting that the focus will transform from selling channels (sell-side e-commerce) to value-chain integration (buy-side e-commerce) and creation of value networks. Venkataraman’s (2000) ’dot-com strategy’ for existing businesses looking to make use of digital media include five questions: What is your strategic vision?; How do you govern dot-com operations?; How do you allocate key resources for the dot-com operations?; What is your operating infrastructure for the dot-com operations?; and Is your management team aligned for the dot-com agenda?


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