Developing a Model for Transition

DEVELOPING A MODEL FOR TRANSITION

Adoption of an e-business strategy is not just a technological change. Not only has the company itself, which initiated the e-business implementation, but possibly the whole industry around it needed re-evaluation. E-business initiatives need to be carried on the level of the CEO, not just on the level of the CIO. Recent history has shown that lack of strategic vision or wrong vision could be disastrous for the company adapting e-business. However, not participating in the e-business transformation now could be a strategic mistake.

Existing models are not appropriate for the whole process of e-business adoption by SMEs. An appropriate model would require both the definition of the strategy as well as the deployment of the e-business solution. To guarantee continuity the model should also stimulate reiteration. A new model based on these criteria has been developed which consists of a chronological set of steps that need to be taken when a SME is planning to adopt e-business. It contains a feedback loop, because e-business, like business in general, is a continuous changing process. The steps in the model are represented in Below:

Business Architecture and Infrastructure

In order to make a transition from business to e-business, it is important to start with obtaining a clear view on the current Business Architecture and Infrastructure of the company. This view should not be limited to the company alone, but needs to include suppliers and partners. The company’s place in a value chain could be very important. This information will provide a basis for the transition to the target architecture. The following components of the Business Architecture should be described for the current and new situation: Customers (the customer value); Supply; Resources; Processes; Partners; Engines (profit and growth).

Strategy and Model

The e-business initiative must result from the target business architecture and infrastructure defined in the previous step. The level of the e-business initiative needs to be evaluated against the ladder of e-business initiatives. Because SMEs are relatively small it can be expected that a disruptive initiative, level 4, will be rare but not impossible. Thus, initiatives will likely be of level 1 through 3. It would be recommended to already define a goal at a higher level to get a proper perspective. The strategy will make sure the implementation to that level will be incremental, although the original design might have been radical. The reason for this is that e-business initiatives could span more than just the initiating company. It could be wise to already to determine the position of the company is a bigger perspective, like the industry or value Chain/business web.

Technical