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Towards Successful E-Business Strategies: A Hierarchy of Three Management Models

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Abstract:

Although only few managers deny the potential of ebusinesses, many are struggling with the question how their company can best exploit the Internet. Managers need tools that guide them in their quest for effective applications. In this paper, we present three models that provide structure to this search process. Model development was guided by two requirements: the focus of each model should be on delivering superior customer value, and the models should correspond to models managers are familiar with (e.g., process oriented). The Strategic Internet Applications Model (SIAM) details that e-business strategies can focus on current customers, new customers, the product, or the position within the business network. Companies may decide to customise products or services, or to redefine their role within the business network. The Customer Interaction Cycle (CIC) describes the interaction process between a supplier and a customer, and highlights instances where a supplier can provide added value. The third model is the ADOF model, an acronym for Accessibility, Design, Offer, and Fulfillment. This model embraces the metaphor of a funnel, built up of four sequential rings. The model postulates that the degree of operational success of Web sites can be managed by optimizing the combination of the four rings in the funnel.

Keywords: E-BUSINESS; E-COMMERCE; MANAGEMENT SUPPORT; NEW BUSINESS

Document Type: Research Article

DOI: http://dx.doi.org/10.1362/0267257022780615

Publication date: August 1, 2002

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