1. Introduction
2. Definition of Electronic Commerce
3. The Technologies of Electronic Commerce
4. Differences Between Electronic and Other Forms of Commerce
5. Business Drivers for Increased Use of Electronic Commerce in Small- and Medium-Sized Manufacturers
6. Identifying Targets of Opportunity
7. Determining Technological Feasibility
8. Beyond Targets of Opportunity: A System-Level View of EC in SMEs
9. Implementation: A Life Cycle Approach

This section is intended to provide a brief overview of

• what electronic commerce (EC) is,
• why it is important,
• how it might be used, and
• methods for its implementation.

It is intended for people who need a sense of the boundaries and content of EC, or who need help in explaining EC to others. Much of the information in this Primer appears in greater depth in other parts of the Web site. Whenever this is the case a cross-reference is provided.

Another intention is to help people recognize an EC issue when they see one. A sharp vision here is important because questions involving EC can be posed in either business or technological terms. Technological questions overtly mention some form of EC, while business questions may not mention any technology at all. No matter what the form, both the business and the technological implications of the question should be addressed. For example a company might ask the technical question: "How can I advertise on the Web?" Or they may pose a business question: "Business is slow. Are there any efficient ways to open new markets or find more customers?" Addressing the question in technical terms may get the company onto the Web, but it may not address the fundamental problem, i.e. getting more business. On the other hand the best answer to the question posed in its business guise may be a well designed Web presence.

Virtual enterprises are business arrangements in which trading partners separated by geography and expertise are able to engage in complex joint business activities, as if they were a single enterprise. One example would be true supply chain integration, where planing and forecast data are transmitted quickly and accurately throughout a multi-tier supply chain. Another example would be non-competing suppliers with a common customer using EC to allow that customer to do "one stop shopping" with the assurance that a single phone call will bring the right materials to the right location at the right time.

Electronic commerce is the application of communication and information sharing technologies among trading partners to the pursuit of business objectives. In the real world of business four distinct types of EC mingle and interact:

Information access provides search and retrieve capability for public domain and proprietary data archives. The most common example of this type of EC is information services (e.g. Dialog, Nexus - Lexus, and ABI Informs) that maintain a data base and charges for access. Another example would be a large manufacturer communicate engineering change notices to suppliers via dial-up access to a centralized database.

Interpersonal communication services provide methods for parties with mutual interests to exchange information, "discuss" ideas, and improve their cooperation. Examples include customer and supplier design groups jointly working out product specifications, updated files being sent by a publisher to a printer, and a purchasing agent using electronic mail to negotiate an expediting schedule with a supplier.

Shopping services allow people to seek and purchase goods or services though electronic networks. This form of EC for retail sales is what comes most readily to mind when one hears the term "electronic commerce". But this genre of EC can be extended in many other directions. As examples, it can apply to the purchase of used industrial equipment, commodities, or freight capacity.

Virtual enterprises are business arrangements in which trading partners separated by geography and expertise are able to engage in complex joint business activities, as if they were a single enterprise. One example would be true supply chain integration, where planing and forecast data are transmitted quickly and accurately throughout a multi-tier supply chain. Another example would be non-competing suppliers with a common customer using EC to allow that customer to do "one stop shopping" with the assurance that a single phone call will bring the right materials to the right location at the right time.

Common questions about electronic commerce

While many technologies can fit within the definition of "electronic commerce," the most important are:

• electronic data interchange (EDI)
• bar codes
• electronic mail
• Internet
• World Wide Web
• product data exchange
• electronic forms

Electronic Data Interchange (EDI)

EDI is the computer-to-computer exchange of structured business information in a standard electronic format. Information stored on one computer is translated by software programs into standard EDI format for transmission to one or more trading partners. The trading partners’ computers, in turn, translate the information using software programs into a form they can understand.

Common questions about EDI

Bar Codes

Bar codes are used for automatic product identification by a computer. They are a rectangular pattern of lines of varying widths and spaces. Specific characters (e.g. numbers 0-9) are assigned unique patterns, thus creating a "font" which computers can recognize based on light reflected from a laser.

The most obvious example of bar codes is on consumer products such as packaged foods. These codes allow the products to be scanned at the check out counter. As the product is identified the price is entered in the cash register, while internal systems such as inventory and accounting are automatically updated.

The special value of a bar code is that objects can be identified at any point where a stationary or hand held laser scanner can be employed. Thus the technology carries tremendous potential to improve any process requiring tight control of material flow. Good examples would be shipping, inventory management, and work flow in discrete parts manufacturing.

Common questions about bar codes

Electronic Mail

Messages composed by an individual and sent in digital form to other recipients via the Internet.

Common questions about e-mail

Internet

The Internet is a decentralized global network of millions of diverse computers and computer networks. These networks can all "talk" to each other because they have agreed to use a common communications protocol called TCP/IP. The Internet is a tool for communications between people and businesses. The network is growing very, very fast and as more and more people are gaining access to the Internet, it is becoming more and more useful.

Common questions about the Internet

World Wide Web

The World Wide Web is a collection of documents written and encoded with the Hypertext Markup Language (HTML). With the aid of a relatively small piece of software (called a "browser"), a user can ask for these documents and display them on the user’s local computer, although the document can be on a computer on a totally different network elsewhere in the world. HTML documents (or "pages," as they are called) can contain many different kinds of information such as text, pictures, video, sound, and pointers which take users immediately to other web pages. Because Web pages are continually available through the Internet, these pointers may call up pages from anywhere in the world. It is this ability to jump from site to site that gave rise to the term "World Wide Web." Browsing the Web (or "surfing the Net") can be a fascinating activity, especially to people new to the Internet. The World Wide Web is by far the most heavily used application on the Internet.

Common questions about the WWW

Product Data Exchange

Product data refers to any data that is needed to describe a product. Sometimes that data is in graphical form, as in the case of pictures, drawings and CAD files. In other cases the data may be character based (numbers and letters), as in the case of specifications, bills of material, manufacturing instructions, engineering change notices and test results.

Product data exchange differs from other types of business communications in two important ways. First, because graphics are involved users must contend with large computer files and with problems of compatibility between software applications. (The difficulty of exchanging CAD files from one system to another is legendary.) Second, version control very quickly gets very complicated. Product designs, even late in the development cycle, are subject to a great deal of change, and because manufacturing processes are involved, even small product changes can have major consequences for getting a product into production.

Common questions about product data exchange

Electronic Forms

Electronic forms is a technology that combines the familiarity of paper forms with the power of storing information in digital form. Imagine an ordinary paper form, a piece of paper with lines, boxes, check-off lists, and places for signatures. To the user an electronic form is simply a digital analogue of such a paper form, an image which looks like a form but which appears on a computer screen and is filled out via mouse and keyboard. Behind the screen, however, lie numerous functions that paper and pencil cannot provide. Those extra functions come about because the data from electronic forms are captured in digital form, thus allowing storage in data bases, automatic information routing, and integration into other applications. As an example, a supplies form may filled out by the requester and automatically sent to a supervisor for approval. Once approved, the actual order may be input into an EDI translator, and go to the vendor by means of a structured X12 EDI transaction.

Common questions about electronic forms

These methods of doing business differ from traditional commerce in the extent to which electronic commerce combines information technology, telecommunications technology, and business process to make it practical to do business in ways that could not otherwise be done. To illustrate, let’s draw on some examples. In each of these cases technology and business process must work together if EC is to be successful.

5. Business Drivers for Increased Use of Electronic Commerce in Small- and Medium-Sized Manufacturers

This section is based on the virtual focus group on EC in manufacturing.

EC is being implemented because it is an excellent method of dealing with forces that are increasingly presenting SMEs with new problems and new opportunities. Grouped into nine categories, those forces are:

Global marketplace

• Foreign competition for SME's traditional markets will increase.
• SMEs will have more opportunity to sell into overseas markets in both industrialized and industrializing countries.

Manufacturing supply chain

• Suppliers, including SMEs, will be asked to provide more (and more complex) sub-assemblies rather than individual components.
• Demands on suppliers to provide design and engineering services will increase. There will be a corresponding decrease in demand for simply manufacturing to customer specifications.
• Manufacturers both large and small will outsource more of their non-core capabilities.
• Customers will demand more electronic communication for functions like bidding and ordering. As large customers make these demands, there will be a ripple effect down supply chains.
• Customers will demand that their suppliers provide more inventory management services such as warehousing and order management.
• Manufacturers will continue to decrease the total number of their suppliers.
• Linkages among companies in supply chains will become tighter as JIT and related systems proliferate.

Government regulation

• All manufacturers will face increased regulatory reporting pressures at federal, state, and local levels, as, for example, in the case of environmental management.

Internal operations and process control

• Communication and coordination within companies will improve as a result of more use of networking, information technology, and systems integration.
• There will be more use of automated manufacturing technology, presenting greater opportunity for integrating external data into internal operations, e.g. the integration of EDI and MRP systems. Hiring will be kept to a minimum, placing greater workloads on employees.
• Overhead and administrative functions will be especially lean as efforts are made to reduce operating and overhead costs.

Customer service

• Manufacturers will try to decrease their time to market for new products and services.
• Manufacturers will try to keep prices as low as possible.
• Product quality will receive greater emphasis.
• Suppliers will find it necessary to provide better and faster information on order status (e.g., place in the production schedule).
• Improved warranty and repair service will take on added importance.

Vendor base for electronic commerce products and services

• Competition will increase among vendors of information and telecommunication services.
• The variety of information and telecommunication services offered to manufacturers will increase.
• New (and presently undefined) EC products and services will be introduced.

Human resources and work structure

• Computer literacy will increase within the workforce.
• Despite rising levels of computer literacy, SMEs will have difficulty hiring employees with computer automation skills.

Information as a business asset

• Information itself will become significant commodity for sale. (e.g. data bases on product history.)
• More of companies' internal data will be accessible for use in decision making.
• Through networking, manufacturers will have more and better access to a wider variety of useful business and technical information.

Business prospects

• SMEs will use networks to gain greater access to a wider variety of potential customers. (e.g., through the use of bulletin boards, home pages, commercial services such as CompuServe, or U.S. government electronic bidding systems.)
• Aggregate demand from federal, state and local governments will remain constant. Demand from state and local governments is likely to grow, while the federal government’s shrinks.
• The economy will remain either stable or will grow. Thus demand from the commercial sector will not decrease. It may increase, but not very much.

The question of how to identify a target of opportunity for electronic commerce is as broad and difficult to answer as any general question about making a business more competitive. How for instance would you answer the familiar question: How can I generate more business? Brainstorming and inspiration are useful methods for answering this question, but the best solution will come from combining these methods with a systematic approach. As an example it would make sense to try to complete two matrices:

The more unfamiliar the territory, the greater the importance of system over inspiration. Thus to help answer the question about using EC to benefit your business we offer a systematic approach based on our virtual focus group on trends in electronic commerce. The key to discovering how EC can help your business is to answer two questions.

How can my business benefit from changes in how information
flows between me and my trading partners?

Which of the changes should I implement?

A useful way to answer these questions is to place your list of possible changes within the following table.

What kinds of business activities can be classified in this way? Consider the following examples.

1. X-12 based EDI is used to send traditional purchase orders faster and with less expense. Without EDI purchase orders would still flow, but not as quickly and at greater expense.
2. Your company uses the Web to search for commodity items and used equipment that are listed in on-line catalogues. This makes shopping easier and faster, but paper catalogues are available and more than adequate for most tasks.
3. Engineering change notices, complete with graphics, are sent via mail or over a network. As with purchase orders the information would get be sent anyway, but is transmitted more quickly (and perhaps in a more usable form) through a network.
4. Evaluated receipts settlement, a system that pays on the bases of "evaluating" documents such as purchase orders and shipping receipts, and thus does away with a formal invoicing process.
5. The introduction of large-scale just-in-time production systems.
6. Concurrent engineering among your design teams and your customers’.
7. Vendor-managed inventory based on point of sale data capture.
8. Groups of non-competing suppliers form "one stop shopping" systems for mutual customers.

By placing each of these examples into the matrix we end up with:

	Primary Business Impact			Implementation
Product/Process	Operations	Existing customers	Developing new markets	ability to foresee benefits	risk of failure	potential payoff
Improve established process	1 2 3				low	low
Enable a new process to be established	4 5 6	5 6			moderate	moderate
Allow new type of product or service to come into existence			7 8		high	high

Added to the original table is a second section, "Implementation" In its whole the table provides a way to organize EC possibilities in terms of what product or process they affect, what part of the business might be changed, and the benefits and risks of implementation.

We recommend an approach that oscillates between the systematic and the inspirational. As ideas are generated they can be placed within the table, thus providing a sense of value and risk. Working from the table, it becomes possible to decide on an acceptable level of benefit and risk, and to then search your business environment for possibilities that fit your comfort level.

As business needs are determined, it is necessary to establish the technological feasibility of various EC plans which could meet those needs. The starting point should be a clear sense of what functions each EC technology can provide to improve business functioning. We summarize these in Table 1.

EC functionality and the previously developed business needs can then be entered into an analysis that follows the logic of the following graphic.

An effort is needed to hone business objectives and technological reality against each other. The process can begin with either technology or business objectives, as long as the business objectives are truly relevant to the company. As an example, an SME may decide that its primary objective is to make it easier for customers to do business with the company, and that a good way to do that would be to use a web-based form which potential customers could use to provide specifications upon which the SME could bid. Its a great idea, but is it feasible? Perhaps not, as the following "feasibility analysis" table shows.

Given these circumstances the decision to proceed is questionable. It's still a good idea, and the company could probably do it. On the other hand costs would be higher than expected, there is risk because success depends on putting other systems in place, and a fair amount of training would be needed for personnel. In this situation the company would probably do best by returning to the "business - technology" stage, and deciding if some other plan might be preferable.

It is important that "feasibility assessment" not be highly detailed because concentrating on detail would interfere with the iterative strategic planning theme of the exercise. The idea is to work at a level of detail that will provide a general sense of feasibility, and also allow time for many iterations through the system.

The decision point before "feasibility analysis" is important because the exercise is likely to generate new ideas about the use of EC. As an example: "Now that we realize what e-mail and the Web can do, maybe we should think in terms of expanding into international sales".

To summarize. Chapter 6 provided a guide for helping SMEs develop EC objectives. Those objectives do not have to be the starting point for developing specific EC plans, but they must be an integral part of whatever planning process is used. This chapter presented one way of conducting that planning process.

Money, time, personnel, and expertise are all scarce and overloaded resources in SMEs. As a result small companies concentrate their efforts on solving immediate problems, particularly with issues other than manufacturing technology. Even so consultants to SMEs need a system level view of EC. Such a view is important because:

• Too much opportunistic problem solving, like tunnel vision, can lead to long-term negative consequences. As a minimum consultants need to recognize when this danger may occur, and be able to help their clients understand the issue.

• Sometimes a company is willing to take a more than fire-fighting view of EC. At these times the consultant is likely to see a lot of unconnected but very creative ideas coming from a client. The consultant's job is to help his or her client forge their ideas into a powerful, coherent EC plan.

Four simple principles can be used to guide systematic EC planning within an SME:

1. The process can begin at any part of the system - business or technology, systematic planning, or specific opportunity. While one company may ask how to deal with excess inventory, another may ask why their EDI translator won't work, while a third might ask for an EC strategy to improve customer service. Because planning can start anywhere, consultants can capitalize on whatever momentum for change already exists within a company.
2. Systematic planning can also start at different time periods during EC implementation. Certainly earlier is better than later, but good planning can take place even when a company has already made quite a few decisions about their EC systems and strategies.
3. The value of any proposed implementation of EC must be assessed in terms of both business consequences and technological feasibility. Appropriate trade-offs between the two is a business decision that a company must make. One company may be sure of its markets but unsure of its ability to implement new technology and new business process. A second company may want to rely on its proven ability to change as a way of meeting fierce new competition. While low risk, low payoff may be a proper decision for the first company, the second may do well to take a riskier course.
4. Because many business practices are interconnected, the consequences of proposed changes should be traced through the system. So doing will provide maximum value and minimum disruption for the company. The key is to consider sets of possibilities, and to set EC priorities with respect to an overall cost/benefit view of what will serve the business best.

Pictorially the situation can be described as follows:

Chapters six and seven provide guides for assessing EC with respect to business, technology, and the interactions between them. The systems view calls for combining those analytical perspectives. To see how the systems perspective might operate we present the case of Acme Printing, a composite of a variety of companies we have worked with.

Acme Printing case study

1. Description of the company
2. Multiple Starting Points and Time Periods
3. Starting With Existing Technology
4. Starting With Business Analysis of EC Innovation
5. Start Times for Systems-View Planning
6. Interplay of Business and Technological Issues

Description of the Company

Acme Printing, a company of 300 employees, manufactures books, Acme provides the production function of the publication process; they set sets type, shoots plates, reproduce images, adds covers, cuts paper to size, and glues bindings. They specialize in work that has tight deadlines such as conference proceedings. Acme's activities are isolated from the rest of the publication process. They do not recruit authors, work with writers on content or style, consult on layout, publicize books, or negotiate sales deals.

About 40% of Acme's business is a core group of return customers, e.g., associations that have used Acme for years to publish their meeting materials. Competition is growing; however, and Acme cannot take this business for granted. For the other 60% of its business Acme's hit rate on bids has hovered at about 30% over the last few years. The percentage has dipped a bit in the past six months, but Acme can't tell if that is normal variation or if their market is changing.

Responding to bids is highly formularized. Acme has a great deal of experience and knows precisely what effects customer specifications will have on its costs. Only rarely does Acme have to bid on a job where they have to do some research before quoting a price.

Occasionally Acme has to reprint the same material a second time, as in cases where sections of a book are reprinted from previous editions. At these times Acme dips into its own records to get the original camera-ready copy. It does so to save time and as a service to its return customers, who often do not save good quality, camera-ready copies of previously submitted materials.

Although Acme usually lives up to its reputation for doing good work under tight deadlines, problems do sometimes occur. One problem is a breakdown in internal coordination between functions such as master preparation, printing, and binding. These breakdowns tend to occur when people are too busy to talk to each other because unexpected problems arise on several rush jobs at the same time. A second, less frequent problem is interruption of supplies, particularly paper. Acme is able to keep a reasonable inventory of the paper it uses most, but sometimes suppliers fail to deliver when Acme has an unexpected need for large quantities, or for a specialty grade. None of Acme’s suppliers is EDI-capable.

Acme is beginning to think about using information and networking technologies. They have not carefully thought out what good the technology can do, but they have a sense that it can be useful. In terms of actual implementation, Acme has installed an internal LAN and established e-mail contact with the external world. They use a commercial e-mail package that handles mime encoded messages pretty well. Technically they have FTP capability, but don't know much about it or understand what it is good for. Acme is setting up a Web site for publicity purposes (everyone seems to be doing it, so they think they should as well). The company has held back a bit because of costs, but they have established a limited capability to print directly from files submitted by customers.

Acme's suppliers are varied in terms of Internet technology. Some have e-mail and Web pages; some do not. Most e-mail users do not have it widely available within their companies. For the most part suppliers' Web pages contain only limited information on pricing or availability.

Acme's information technology infrastructure is maintained by one and a half full time equivalent staff, plus help from four informal assistants. There is a full time "director of information services" who is responsible for all services. He is a bachelors level electrical engineer with twelve years experience implementing and running systems in a variety of companies. His half-time assistant is part way through a bachelors program in computer science. The four informal assistants are computer and networking champions spread throughout the company. Depending on their work load, these people can generally be relied on to lead new initiatives, help with training, and serve on planning and implementation teams.

Acme knows it has to do something with regard to EC, but its not sure what. For help it calls upon a local MEP center that has provided valuable assistance in the past.

It seems quite possible that Acme might begin by asking the consultant one of two questions:

1. We have our e-mail working and its nice to be able to send messages around but how can this technology really help us in our business?
2. We know that information technology can revolutionize our business, and we are worried about being caught short. We have the money to make some changes but we don't have the funding or the personnel to do it all. In any case, we don't know where to start or where we want to end up. What should we do?

The first question fits into the "technology" point of entry. The second is a business question. The consultant has to be ready to address both questions since either could easily be Acme's "presenting problem." How might the consultant answer these questions?

Looking at the existing technology base, our consultant finds two kinds of functions operating: e-mail that is widespread, fully functional and heavily used, and electronic publishing which is in its infancy. Further, the time and cost of developing electronic publishing is considerable compared to whatever minor improvements are needed to develop an almost state-of-the-art e-mail system. This analysis makes it obvious that the quick hits should involve the use of e-mail, which suggests attacking problems where asynchronous communication and file transfer could be useful.

Starting with this orientation, discussion with Acme quickly reveals the "quick hit." Because Acme does a lot of tightly scheduled production work, missing information or last minute changes are extremely problematic. Much of their work involves shooting camera-ready copy, so fax quality originals are unacceptable. Acme could save on overnight delivery costs, lower its customers' costs, and meet schedules better if it made heavy use of FTP and mailers that could handle formatted files. To do so Acme would have to take two actions: first, train its personnel, second, develop an in-house expert to help clients use the FTP capability they may have but not know about.

Acme is worried about its use of information and networking technology in a changing world. To help Acme the consultant leads them through a brainstorming and planning process which lays out the categories of EC innovation (chapter 6), and asks Acme personnel to consider how each category might apply to their business. He then asks them to list the suggestions in priority order, most to least important. The results are shown in the following table.

The immediate decision based on this analysis may very well be the same as that arrived at by starting with technological opportunity, i.e., set up e-mail to reduce expediting costs and communication lag time with customers. The business analysis however, does what the analysis of technological opportunity does not, i.e., it sets the action within an overall plan to use EC to improve Acme's competitive position.

In this case the start point was determined by Acme's question. At other times, however, a consultant may need to size up a situation and create the starting point. As an example a general discussion of Acme's operations may have alerted the consultant to EC related issues, at which point he or she would have to quickly choose which of two questions to pose:

1. I see you just installed e-mail. You have been telling me about some of your coordination problems; could the e-mail help?
2. New electronic technologies can have a big effect on the document production business, but I have not heard you mention that issue in our discussion. Have you considered those lines?

Whether coming from the consultant or from Acme, whether starting from overall business planning or quick technological opportunity, the consultant must help the customer hone technological capability against business need. In Acme's case the choice of "e-mail with customer" makes sense because it uses in-place technology to help Acme maintain a reputation as the company to choose when timeliness is critical.

It is clear that Acme has already made some important decisions about its EC strategy. It has identified priority business problems and made tentative commitments to technologies and business processes to address these problems. If Acme were to start from the beginning with a systematic planning exercise, would the company arrive at the same conclusions? Perhaps, and perhaps not. But even though Acme has already set its basic directions by the time the consultant has come on the scene, there is plenty of room for a systems view to help Acme capitalize on the momentum it has already generated.

Acme has taken the first step by deploying EC to solve an immediate problem. But the company knows it must do more because it is sure that in some way, shape or form, EC will transform its business over the next few years. Table 1 is a good start, but Acme wants to move from general objectives to a specific plan. To develop a plan, Acme’s consultant led Acme staff through a business problem priority exercise, and then conducted an audit of Acme's existing technology and employee skills.

As a result of looking at business need and technological opportunity, the consultant recommended a schedule that he believed was aggressive but manageable in light of: (1) the few people within Acme who can do this work, and (2) important given the business pressures Acme is experiencing. In it final form the recommendations seem simple and straightforward.

This seemingly simple plan, however, was based on a thorough analysis of solution choices, the feasibility of each, their costs, benefits and risks. The links in the "problem/solution" column detail the reasoning behind each entry.

Fast access to changes from customers, and preferably at lower cost. Speed is critical because of Acme's reputation as being able to produce under tight deadlines. It’s a big part of their competitive advantage. At the same time, costs for overnight delivery are high and getting higher. Resources for a solution are readily available because Acme has an e-mail system that can both read formatted messages and handle FTP. While employees don't know enough about using FTP, it should not be hard to teach them, or to develop an expert who can explain to customers what to do. Acme already has most of the skills and the technology. Further, implementing this solution carries little risk. The cost of the solution is low.

Return to consultant summary table.

Better coordination among departments regarding schedule changes. When it occurs this is problem is very troublesome, but its not that common an occurrence. On the other hand solving it would be easy because all employees have access to internal e-mail and know how to use it.

Return to consultant summary table.

Better coordination with suppliers. As with internal coordination this problem is troublesome when it occurs, but is infrequent. Because Acme has almost no influence over how their suppliers use networking technology, Acme is not in a position to help suppliers set up universal e-mail or truly useful Web pages.

Return to consultant summary table.

Reduce labor costs while simultaneously decreasing production lead time. Acme knows this is a long range necessity to remain competitive. They also know that doing so will require considerable effort at new technology acquisition, organizational change, and human resource management. Its important, but certainly no quick hit.

Return to consultant summary table.

Improve customer service by offering to help them re-use previously published copy. This would be an elegant service to offer, but there is only an occasional demand for it. Unless these requests grow very large, Acme's old method of filing hard copy works pretty well. Further, digital retrieval would work best if Acme's printing processes were fully automated and integrated, and they are not. Getting to that stage is an expensive, difficult and long range activity.

Return to consultant summary table.

Increase market share by making it easier for customers to understand printing options and pricing consequences. This is a high priority because Acme is worried about market share. They already have a Web page, which makes this option a bit easier. Still, they would need to design and maintain the system. Doing so would require putting staff to work to design it, and a Web expert to set it up and maintain it.

Return to consultant summary table.

Proper implementation requires deliberate attention to seven technology life cycle stages:

1. Awareness Training: Provides an understanding of what the technology is, a general sense of what it can do for a business, and how to begin implementation.
   
2. Business Analysis: It is easy to jump immediately from "awareness" to the details of "requirements analysis", but doing so is a mistake. To assure maximum value from EC, there must be a thorough understanding of how the new technology can help the business.
   
3. Requirements Analysis: Yields an understanding of what kind of EC functionality is needed to meet business requirements. As an example: business need = keep customers informed of changing product availability and price. Requirement = web based catalogue.
   
4. Design: Sets out specifics, e.g. Who are my potential vendors? By when do I need different parts of the system up and running? What will the system cost?
   
5. Implementation: The system becomes real. New technology comes in the door. Training is conducted. New business process begins to function. And so on.
   
6. Integration and Validation: Make sure the systems performs per its specifications.
   
7. Maintenance: Keeps the system running, deals with unforeseen circumstances, and plans for improvement.

The main reason to employ these stages is that failure to do so can result in wasted time, wasted money, and sub-optimal systems. While it is important to assure that all stages are invoked, the effort expended on each may vary greatly with circumstance. As an example, a company contemplating a Web based catalogue may have a critical mass of workers who have used the Web and who appreciate what it can do. In this case little awareness training is needed. It may be important to make sure that people involved have a specific appreciation of what Web catalogues can do, but certainly this situation does not require that great resources be invested in the Awareness stage. As a second example, a company may implement e-mail, a technology that draws on well proven off-the-shelf software, and which requires no complex system integration. While "integration and testing" must certainly be carried out, the resources invested in this life cycle stage should be relatively small.

Consultants will also find the life cycle perspective useful for other reasons.

First, a client may have a problem or an opportunity that clearly falls at a specific life cycle stage. In this case its useful to go right to the resources that are useful at that stage. As an example:

Second, consultants often need to help clients think through all the implications of moving into an EC environment. Both in terms of finding resources and showing the client what is involved, the life cycle view can be invaluable.