B2B E-Commerce Stages of Growth: the Strategic Imperatives

Transcription

1 B2B E-Commerce Stages of Growth: the Strategic Imperatives Caroline Chan School of Information Systems, Deakin University, Melbourne, Australia Tel: ; Fax: Paula M.C. Swatman Deakin Business School, Deakin University, Melbourne, Australia Abstract Stages-of-growth has been the most popular approach used for strategy development and implementation. The major stages of growth models such as Gibson and Nolan [1] have been widely discussed and are particularly useful in understanding the implementation of IS in organisations. These models might be more representative of e-commerce implementation, however, if they took into account more recent IS developments such as B2B e- commerce. Using a case study research undertaken in Australia, this study proposes a model of stages of growth based on the use of B2B e-commerce technologies and applications in Australian organisations. Four stages of growth proposed for B2B e-commerce implementation are (i) initial e- commerce; (ii) centralised e-commerce; (iii) looking inward for benefits; and (iv) global e-commerce. 1. Introduction Stages of growth models describe the maturing of the use of information systems (ISs) in organisations. Understanding the growing process of e-commerce implementation enhances the ability of organisations to plan and develop their information systems strategy. Unfortunately, little research has focused on this issue because of the lengthy time periods needed to undertake such investigations. Earlier studies, which propose the major stages of growth models such as Gibson and Nolan [1], Earl [2] and Galliers and Sutherland [3,4] have been widely discussed and are particularly useful in understanding the implementation of IS in organisations. These models might be more representative of e-commerce implementation, however, if they took into account more recent IOS developments such as B2B e-commerce. Until recently, there has been only anecdotal information, mostly in the form of consultants opinions, on how to manage B2B e-commerce implementation. Questions such as how organisations manage the evolving technology, however, or what difficulties and issues arise during the implementation, are often left unanswered. There is little information available concerning the stages of growth of B2B e-commerce technologies and applications. This paper attempts to address this lack of insight into the process of B2B e-commerce implementation over time by presenting empirical evidence of the issues experienced by organisations involved in such e-commerce initiatives. Such knowledge has significant value in both practical and theoretical terms. As Lee [5] has noted: certainly, research that systematizes and makes explicit what practitioners are already doing can be relevant by helping to promote the dissemination of successful practices (p. 29). We believe this knowledge has still more value in terms of enhancing theory through practice In this paper, we provide an overview of the stages of growth theories and then propose empirically-based theory for B2B e-commerce implementation. This theory is then explained and illustrated using case studies. 2. A review of stages of growth theories The stages of growth theories first emerged in the mid 1970s when researchers realised that IS had taken a special place in organisations and was continuing to grow and expand. Gibson and Nolan [1] wrote the seminal article on this subject and focused its investigation on data-processing (DP) technology. They believed that expenditure on DP by different companies had a similar pattern, called an S-curve, which described the pattern of learning and experience in IS implementation [6] /04 $17.00 (C) 2004 IEEE 1

2 These four-stages represent (i) phase 1 decision to invest and project initiation; (ii) phase 2 technology learning and adaptation; (iii) phase 3 rationalization and management control; and (iv) phase 4 widespread technology transfer or technological diffusion. Nolan [6] expanded this model to a more comprehensive, six-stage model to include two new stages between control and maturity integration and Table 1. data administration. It is of interest that, although the somewhat simplistic four-stage model is one of the most widely used explanatory models in the business world, the more comprehensive six-stage model has never achieved the same levels of acceptance and use. The description of Nolan s six stages of growth is presented in Table 1. Nolan s Six Stages of Growth (Source: Nolan 1979) Stage Stage 1: Initiation Stage 2: Contagion Stage 3: Control Stage 4: Integration Stage 5: Data administration Stage 6: Maturity Description In this initiation stage, technologies are introduced into the organisation for performing simple administrative functions, such as automation of payroll or general ledger. In this stage, the learning curve moves up sharply, as use of technology becomes widespread and the organisation becomes confident with the use of the technologies. Also in this stage, top management encourages line management to embrace computing and the DP manager follows industry trends. In this stage, managers realise the need for controls due to rising expenditure, late delivery of projects and unsatisfied needs. At this stage, users feel frustrated about the systems. This stage is seen as an acceptance point, where the users start to accept the system and realise its benefits. At the end of this stage, users demand better control to provide more efficient systems. Data administration is introduced to enhance the control of the systems. In this stage, organisations begin to be confident in managing the technologies. Analysis of the experiences of a large number of companies using advanced data processing indicated the existence of these six stages. During the control stage (stage 3), it appears that a transition of focus happens. Organisations moving through this phase shift from being very much involved with the management of the technology toward management of their total data resources, including organisational restructuring and development of new management techniques. In other words, the first three stages (stages 1 to 3) focus on the technology itself and, in the later stages, this focus moves towards the management of the technology. Although Nolan s model is the most popular approach used for strategy development, some authors have criticised it because of its inability to represent the reality of IS implementation [4, 7], or to predict forthcoming change [8]. The major weakness of this model is its focus on centralised database technology which, according to a number of authors [4, 7], has little relevance for the current state of IS implementation. Additionally, Earl [2] argued that organisations would have different learning curves for different types of IT. Focusing on five factors task, objective, direction/involvement, methodological emphasis, and planning context Earl [2] described the stages through which he believed organisations move during the planning process (see Table 2). Galliers and Sutherland [3,4] argued that Nolan s model was inadequate and lacked organisational and management focus. They also criticised other early stages of growth models, including Earl s, pointing out that they only place an organisation at a certain stage in the growth process, without actually suggesting how the organisation might move towards a more mature stage. Galliers and Sutherland proposed a growth model that is based on Pascale and Athos 7Ss [9], to analyse organisational processes and management. The empirical study was originally based on four Western Australian organisations and was further refined during IS conferences and courses. Represented in six stages (Table 3), each stage is associated with the seven Ss of Pascale and Athos: strategy, structure, systems, staff, style, skills and super-ordinate goals. Like the previous models, this model also describes the stages through which organisations will pass with the use of IT and IS, and could provide indications as to how organisations should move from one stage to a more advanced stage. The advantage of Galliers and Sutherland s [3] model lies in the case study-based method used in developing the model which provides illustrations of the ways in which the model can be applied in realworld environments. Although, in the last stage of the model, these authors proposed three types of system suitable for a mature IS implementation, the fact that e-commerce technologies have since become available have made it less relevant to the current state of global IS implementation /04 $17.00 (C) 2004 IEEE 2

3 Table 2 Earl s Stages Model (Source: Earl 1989 ) Timeframe/factor Stage 1 Stage 2 Stage 3 Stage 4 Stage 5 Task IS/IT mapping Business direction Detailed planning Competitive advantage Objective Direction/ involvement Methodological emphasis Planning context Management understanding DP/IT lead Agreement priorities Senior management drive Firming up the IS strategic plan Users and IS mainly involved Bottom-up survey Top-down analysis Matching top-down and bottom-up, plus investigations and prototypes Inexperience/unaw areness Inadequate business plans for the purpose Complexity apparent Finding opportunities Executive management and users Inside-out processes Impatience IT strategy connection Integrating IS and business strategies Partnership of users, general management and IS Multiple method accepted Maturity Table 3 Sutherland and Galliers Stages (Sutherland & Galliers 1989 p.14) Stage Description 1 Ad hocery 2 Starting the foundation 3 Centralised dictatorship 4 Democratic dialectic and cooperation 5 Entrepreneurial opportunity 6 Integrated harmonious relationships In search of just such a relevant model for e- commerce implementation, we reviewed a number of Internet-based stages of growth models. Rayport and Jaworski [10] suggest a four-stage model of the evolution of Internet-based B2B e-commerce (Table 4). They believed that, in general, an organisation goes through these stages in utilising the Internet for its business-to-business activities. McKay, Prananto & Table 4 Internet-Based B2B Stages of Growth (From Rayport & Jaworski 2002) Stage B2B Description capability 1 Broadcast A web page creation to primarily static information to the customers such as companyrelated information, product and services. 2 Interact Using the Internet for interaction with customers such as s, customer survey and feedbacks. 3 Transact The use of the Internet to take, manage and support transactions with customers such as online ordering systems. 4 Collaborate The use of the Internet to provide inter-organisational activities, which can be accessed and utilised by the company and its trading partners. Marshall [11] also proposed a similar stages of growth model for Internet commerce. Both models, however, suggest that Internet-based e-commerce initiatives appear to be managed separately from other e- commerce initiatives such as EDI. This raises the question of where hybrid e-commerce solutions, such as Internet-EDI, lie. The present study investigated B2B e-commerce implementation, taking into account /04 $17.00 (C) 2004 IEEE 3

4 the issue of transformation from traditional B2B, such as EDI, to Internet-based B2B. 3. Methodology The objective of this study was to gain in-depth understanding of the process of e-commerce implementation over time. A two-phase case study approach was used for this purpose. In the first phase, a single case study was used to gain in-depth understanding of e-commerce implementation within a single organisation. Australian organisations with a significant history of e-commerce implementation were reviewed and BHP Steel was selected for this study due to its long experiences in e-commerce implementation. In the second phase, multiple case studies were used to provide a clarification, and possible validation, of the BHP Steel case experience [12]. Ten Australian organisations engaged in e- commerce implementation were investigated. The unit of analysis of the study was the organisations experiences in the past 15 years e- commerce implementation. In the BHP Steel case, data were collected using a variety of methods, including direct on-site observations, and document and archive analysis, as well as intensive interviews. In the multiple cases, the main source of data was intensive interview. Data were analysed using both within-case analysis, where the company s experience were written individually; and cross-case analysis where, based on the themes, data were tabled and compared. 4. Insight into B2B e-commerce stages of growth The growing process, in many ways, is similar to the ideas of Nolan [6], Earl [2] and Galliers & Sutherland [3] regarding the implementation of IS in organisations. However, in contrast to the suggestion that Internet-based B2B evolution should be viewed as a separate evolution of traditional B2B [10], we believe that such models should show an integration of traditional e-commerce initiatives with Internet-based e-commerce initiatives. The e-commerce growing process in BHP Steel extends over more than two decades. During this time, the company has implemented a variety of e-commerce initiatives which have contributed to the maturity of its approaches. Five types of growth have to be managed as the company initiative matures: a growth in the strategy and objectives of the initiatives; a growth in the structure of the e-commerce implementation within the organisation; a growth in the types of e-commerce technologies and applications used; a growth in the focus of the implementation; and a growth in the level of management involved in the implementation. Four stages of growth are proposed for each of this growth (i) initial e-commerce; (ii) centralised e- commerce; (iii) looking inward for benefits; and (iv) global e-commerce. Stages of growth Stage 1: Initial e-commerce (early e-commerce) Table 5 B2B E-Commerce Stages of Growth Stage 2: Centralised e- commerce (ETG) Stage 3: Looking inward for benefits (barcoding) Stage 4: Global e-commerce (global e-commerce) Strategy Cost-saving Competitive advantage Education Broad e-commerce coverage Structure Departmental Company-wide Corporate Corporate E-commerce technologies used PC VAN-based EDI Corporate gateway EDI (direct link, VAN-based EDI, EDI-fax) Barcoding, EDI Various, including Internet-based applications Focus Suppliers Customers Steel industry Broad coverage of trading partner (emphasis on customers) Personnel involved SPPD-supply department BHP Steel and BHP IT, consultants BHP Steel e-commerce group IS council (Steel GM +4 others), BHP IT /04 $17.00 (C) 2004 IEEE 4

5 Stage 1 Initial E-Commerce Initial e-commerce describes the first stage in which an organisation embarks on e-commerce implementation. During this stage, the particular needs of a particular department are addressed to improve its performance (for example, a purchasing department might need to save transaction costs and improve the efficiency of its business processes). In BHP Steel, this stage took place in the SPPD supply department. The process concentrated mainly on streamlining the supply chain through the utilisation of information technology to save costs in the purchasing processes (here BHP Steel was the customer). A simple, functional technology using a personal computer (PC) was used to realise this idea. At this point, management is often unaware of possible problems and the long-term effects of the implementation. As a result, few technological issues are apparent to hamper the process of implementation. In the case of BHP Steel, these issues were technology immaturity and a lack of knowledge. Technology immaturity was a result of the use of electronic trading a new technology at the time (1980s). BHP Steel thus had to develop its own standard(s) based on the nature of the existing industry and business processes. Another issue was the learning curve resulting from the fact that there was no one in the company, let alone in the department, who understood the concept. This lack of familiarity became a critical issue, especially when the company had to develop its own systems, and was attempting to gain support from its trading partners but it ultimately succeeded. Having successfully managed Stage 1, a company moves to Stage 2 of the implementation. Stage 2 Centralised E-Commerce Initiative Stage 2 involves the expansion of the pilot e- commerce implementation to the whole company. Unlike the case in Stage 1, in Stage 2 management recognises a need for proper planning and strategy in the implementation. As a result, a centralised approach, rather than a departmental approach, is used for better control and management. This centralised approach to the implementation is often complemented by interdepartmental cooperation and collaboration in managing e-commerce projects. The company-wide nature of the project at this stage ensures that management has sufficient funding to develop the system, and is able to obtain assistance from business consultants and IT specialists. Because of the success experienced in Stage 1, and because of a better understanding of the technology, management often assumes that this stage has a better chance of success than Stage 1. This might not be the case, however, because there is significant difference of focus entailed in progressing from Stage 1, where the implementation focuses on suppliers to Stage 2 which focuses on customers. In the case of BHP Steel, this stage involved the implementation of a massive e-commerce initiative the Electronic Trading Gateway (ETG) project. Delighted with the success of the early e- commerce implementation, the company attempted to obtain more than merely technological benefits from the implementation, seeking additional strategic benefits a competitive advantage and closer ties with large customers. This transformation of focus created various business issues, especially those related to assessment of costs and benefits. The ETG initiative could no longer be justified by a mere cost/benefit analysis, but now had to include an assessment of the strategic impact of the implementation. As it turned out, customers did not enthusiastically adopt the system and, six years after the implementation, the ETG system was still not fully utilised and was still being subsidised in its operation. Regardless of this struggle to survive, the ETG initiative was nonetheless a very important e-commerce project both for the company and for Australia in general. Through this initiative, the company established itself as the country s major player in e-commerce implementation. BHP Steel was the first Australian organisation to provide an EDI X.400 communication protocol link to both valueadded network providers General Electric Information Services (GEIS) and Telecom Plus. Due to the large-scale, company-wide nature of the implementation in Stage 2, companies often have problems with the compatibility and complexity of the technology. In the case of BHP Steel, incompatibility with existing information systems in the company meant that the company and the department involved had to provide more resources to ensure effective interface between systems. Complexity associated with the existence of various communication types and document standards in different industries has confused some potential adopters regarding which standard to adopt especially those dealing with more than one industry. Stage 3 Looking Inwards for Benefits The combination of early successes and setbacks at Stage 2 generates a mixed atmosphere in the implementation of an e-commerce initiative. Usually management is fascinated by the potential of the e- commerce technology, whereas external participants, especially customers, are more reluctant to be involved. As a result, companies might decide to look for other opportunities offered by the technology. In the case of BHP Steel, the company expanded the implementation /04 $17.00 (C) 2004 IEEE 5

6 of the ETG system into various ETG-related ideas including the Test Certificate over EDI, a number of international EDI projects, such as the APEC project and, most notably, the bar-coding project. These initiatives again delivered both successes and disappointments. In Stage 3, management is searching for possible e- commerce technology solutions that work and that can be successfully implemented. Stages 1 and 2 of the implementation have provided important lessons about the capability of the technology and the nature of trading relationships in the context of the e-commerce implementation. In the case of BHP Steel, barcoding technology was found to be the perfect companion to EDI technologies because of its ability to capture the information digitally for later integration with EDI documents. However, to achieve the full benefits of this technology: (i) a uniform standard needed to be adopted; and (ii) the implementation needed to involve all departments within the company (or, even better, throughout the relevant industry). In the case of BHP Steel, the first requirement was accomplished through the development of barcoding guidelines as a result of the corporate-wide barcoding initiative. The second requirement was more difficult to achieve because each BHP business unit had to be responsible for its own budget, and management could thus only encourage individual units through education and training. The large organisations which engage in B2B e- commerce initiatives of this sort frequently turn to ways of linking other technologies with their newlydeveloped e-commerce initiatives to provide further, sustainable benefits from the huge investments they have already made. Stage 3 is both a celebration of technical skill and a process of discovering the business processes which have the most to gain from integration with e-commerce. Stage 4 Global E-Commerce Once Stages 1 and 2 have been completed, a company has reached a mature level of e-commerce implementation. Technology is no longer an issue, but outdated system(s) are still an issue because the rapid development of e-commerce technology has created business and financial problems. Management recognises the requirement for continuing investment in the electronic trading system. In addition, the latest advances in the electronic trading initiative bring a new enthusiasm, producing a curve in the growth process, similar to those of Stages 1 and 2. This time, however, management remembers the painful experiences of earlier stages and decides not to be carried away by the hype of new technologies. As a result of this cautious approach, management approaches the new round of e- commerce with a broader approach in which it retains that which is good in the old technology while embracing new technology as appropriate. In the case of BHP Steel, the development of the most important e-commerce innovation the Internet was approached cautiously. Utilising a rather broad e-commerce strategy and taking into account a variety of e-commerce technologies, management considered the use of the Internet for its B2B e- commerce. At this time, however, on the advice of the company s IS Council (consisting of the steel general manager and four other managers), the firm undertook a major restructure of its e-commerce strategy, employing a broader-based approach which made use of a variety of potential e-commerce technologies for customer support and cost saving. Although no major initiative was taken during the development of global e-commerce, BHP managed to establish an e- commerce strategy with a focus on cost reduction and customer service. This strategy provided the company with a foundation for making decisions on a commitment to new e-commerce initiatives a strategy which continues today. Testing the B2B stages of growth model The process of e-commerce implementation in BHP Steel is a demonstration of the stages of growth model proposed in this paper; and investigations of other Australian organisations provide evidence of the validity of this model. Ten organisations from six industry sectors were used for this further investigation. Selection of the cases was largely based on the organisations willingness to participate in this study. All organisations selected are located in Australia, with four organisations (Cases B1, D1, D2, and D4) being based in Sydney, three organisations (Cases B2, D3, and C1) in Melbourne, and three (Cases A1, A2, and A3) in Canberra. One of the findings from the BHP Steel case was that e-commerce initiatives focus on particular trading partners. For example, early implementation in BHP Steel focused on suppliers, whereas the ETG implementation focused on customers. In the present study, the cases are grouped by industry and by the nature of the implementation (Table 6). Client-centric implementation describes e-commerce implementations which focus on client needs such as those undertaken in public-sector organisations. Customer-centric implementation describes e-commerce implementations targeted at customers. Supplier-centric implementation describes e-commerce implementations focusing on suppliers, and which streamline the company s own processes. Multi-directional implementation describes e-commerce implementations aimed at both customers and suppliers and, in one case, at regulatory bodies /04 $17.00 (C) 2004 IEEE 6

7 (Case D3). This classification scheme, while helpful to our analysis, should nonetheless be used with caution for two reasons. Firstly, some implementations were possibly undertaken to satisfy government regulation and policy, thus entailing participation only with a certain government agency. Secondly, although some organisations were involved in e-commerce initiatives with both suppliers and customers, they chose to focus on only one of these groups. In these cases (B1 and B3 fell into this group), the emphasis of the implementation was taken into account in our analysis. Table 6 Categories of Implementation Investigated Nature of e-commerce implementation Client-centric implementation Customer-centric implementation Supplier-centric implementation Multi-directional implementation Organisation (industry) A1 (government) A2 (government) A3 (government) B1 (transport) B2 (manufacturing) B3 (manufacturing) C1 (retail) D1 (manufacturing) D2 (wholesaler) D3 (finance) Of the five types of growth identified from the BHP Steel case study, strategy and objectives, structure of the implementation, types of e-commerce technologies, focus of the implementation and level of management, only two proved to be consistent across all the multiple cases the strategy & objectives and the focus of the implementation. The type(s) of technology being used were not of great importance to this study, and the remaining two growth types structure and level of management were inconsistent across the cases. The Strategy/Objectives of the E-Commerce Implementation Generally, e-commerce implementation in the organisations started from a simple initiative, and proceeded to a more complex implementation. Organisations started with a single document application such as a purchase order. As the company became confident with this operation, the implementation expanded to include other business and information documents, including shipment notices and payment instructions such as accounts payable and freight documents. The development of organisational strategy in information system (IS) implementation has previously been used to measure the maturity level of IS implementation [4]. The present study uses this approach to analyse the evolution of e-commerce strategy in the organisations studied. The four stages of growth suggested earlier are used as a framework for this analysis. Table 7 presents the e-commerce strategies and objectives which occurred during e-commerce implementation in the organisations studied. The findings suggest that, in general, the organisations strategies for e-commerce implementation were transformed from being merely transactional and strategic to include informational perspectives. Organisations no longer implemented e- commerce for mere cost-cutting purposes (transactional), or even purely to obtain a competitive advantage (strategic). They also aimed for better integration and control over information (informational). A1, A3 and C1 initially focused their strategies on cost cutting (transactional), but then concentrated on better integration and increased control (informational) in later e-commerce developments. A2, B1, D1, D2 and D3 initially had no choice but to implement e-commerce because of customer demands or as part of business-process requirements (strategic). Later, they focused on further cost cutting (transactional) and better integration (informational). In some organisations (B2, C1, D1 and D2), a collaborative supply-chain approach was used to gain this informational objective at an inter-organisational level a still more advanced level of strategy. These strategy findings are consistent with the earlier findings made with respect to driving forces [13]. However, an exception should be noted in relation to organisation B3, in which e-commerce implementation was used primarily for strategic reasons throughout all stages. This organisation implemented e-commerce purely to gain a competitive advantage that is, getting closer to its customers and thus retaining business. Until recently, the company was not interested in joining any wider global e- commerce initiative (with the exception of universal product numbering), but indicated that it would do so if customers requested it. Focus of the Implementation (Trading Partners Involved) This study also found that the focus of e-commerce implementation transformed from a single cohort of trading relationships to multiple, wider, and global business relationships. As with the previous analysis, the four stages of growth suggested earlier are used as a framework for this analysis. Table 8 presents trading partners involved during e-commerce implementation in the organisations studied /04 $17.00 (C) 2004 IEEE 7

8 Organisations implemented e-commerce in the first place with particular trading partners (which often demanded the initial implementation). For those organisations which initiated the implementation (such Organisation Stage 1: Initial e-commerce Table 7 as A1, A3, and C1), implementation started with targeted clients or suppliers. For other organisations, the implementation started with major customers. Organisation s Strategy in Implementing E-Commerce Stage 2: Centralised e-commerce Stage 3: Looking inward for benefits Stage 4: Global e-commerce A1 Cost cutting Cost cutting and innovative services better integration better integration A2 necessity necessity and cost cutting necessity and cost cutting necessity and better integration A3 Cost cutting Cost cutting and innovative services better integration better integration B1 necessity necessity Cost cutting and flexibility necessity and increased control B2 Innovative services Improved service and flexibility Flexibility and better integration better integration through collaborative supply chain B3 Competitive advantage Competitive advantage Competitive advantage Cost cutting and better integration C1 Cost cutting Cost cutting Better integration and increased control better integration through collaborative supply chain D1 D2 D3 Competitive advantage Competitive advantage necessity Cost cutting and innovative services Cost cutting and innovative services necessity Flexibility and better integration Flexibility and better integration necessity and cost cutting better integration through collaborative supply chain better integration through collaborative supply chain necessity and cost cutting Table 8 Trading Partners Involved in the Implementations Organisation Stage 1: Initial e-commerce Stage 2: Centralised e- Stage 3: Looking inward for Stage 4: Global e-commerce commerce benefits A1 Clients clients clients clients, and industry A2 Government agency (A1), clients Government agencies and clients Government agencies and clients clients, and industry A3 Clients Government agencies and clients Government agencies and clients clients, and industry B1 Government agencies Government agencies and customers Government agencies and customers customers, and industry B2 Customers Customers Customers Customers and industry B3 Customers Customers Customers Customers C1 Suppliers Suppliers Suppliers Suppliers D1 Customers Customers and suppliers Customers and suppliers Customers and suppliers D2 Customers Customers and suppliers Customers and suppliers Customers and suppliers D3 Government agencies customers, suppliers, and industry customers, suppliers, and industry customers, suppliers, and industry /04 $17.00 (C) 2004 IEEE 8

9 The findings suggest that the majority of organisations extended their e-commerce implementation to other trading partners to cater for a wider range of business relationships. In some cases, organisations expanded the implementation to a broader industry group (that is, import/export, transport, finance) than that originally targeted. The success of such expansion was, however, often dependent upon the industry environment. For instance, in the finance industry, there are two types of share markets listed and unlisted. For the listed market, the majority of transactions are undertaken electronically whereas, in the unlisted market, the majority of transactions are paper-based. Similar situations also occurred in the transport industry, where the majority of transactions undertaken with the Australian Customs Service and with the banks were electronic, whereas the majority of transactions made with customers were manual. As a result of these differences, organisations had limits to what they could and could not do in terms of expanding e-commerce initiatives. Exceptions can be made in the cases of organisations B3 and C1 in terms of the focus of the trading partners involved. B3 had an e-commerce implementation with both suppliers and customers, but the supplier side was managed separately as a result of the parent organisation s directive on the matter, and B3 had no say in the development of the system. Therefore, the focus of e-commerce implementation in Australia had to be on the customer side. C1 was a retailer with a large number of suppliers. The implementation was mainly undertaken to streamline supply-chain management. Therefore the focus of the implementation was on suppliers. The organisation, because of its large scale in the country, later agreed to be involved in an e- marketplace initiative, but this did not change its supplier focus for its B2B e-commerce implementation. With these exceptions, the broader group of multiple cases studied confirmed the stages of growth we had found within BHP Steel. Naturally, the types of e-commerce technology used differed significantly from one case to another, depending on the industry sector involved (the reason why we were not particularly interested in this factor for the multiple cases). The two remaining areas of growth, the structure of the implementation and the level of management, again differed significantly from one industry sector to another, and from one type of organisation (for example public vs. private sector), making comparisons both extremely difficult and far less useful. Conclusion In this paper we have suggested a stages-of-growth theory which incorporates the transformation process of traditional B2B e-commerce initiatives such as EDI into Internet-based e-commerce initiatives. Our model further highlights the evolutionary nature of e- commerce implementation, which is illustrated by means of the four stages of growth identified: (i) initial e-commerce; (ii) centralised e-commerce; (iii) looking inward for benefits; and (iv) global e-commerce. These stages are described and validated by means of a selection of both single and multiple case studies our more limited multiple cases have provided solid confirmation of the findings from the in-depth single, revelatory case of BHP Steel. An important trend noted in this study is the global perspective which has been taken by organisations in their e-commerce implementation. Firms seem to take a wider view of the role of e-commerce, both within their own industry and across industry sectors, in influencing the uptake of e-commerce initiatives, as well as taking a more collaborative approach to their trading partners and becoming less involved in the imposition of standards and technologies on their suppliers. It is possible that this more mature and collaborative view is merely a function of experience, but we are led to wonder whether the successful experience of e- commerce in itself contributes to this growth a possible virtuous circle of e-commerce use. The organisations strategies in e-commerce implementation were transformed in nature from being merely transactional and strategic to being informational. They no longer implemented e- commerce merely for cutting costs (transactional) and competitive advantage (strategic), but also to enable better integration and control over information (informational) which has the potential to deliver significant change and benefits for the overall organisations. The focus of e-commerce implementation has been extended. From a concentration on a single trading partner grouping (such as suppliers), the organisations had moved to a wider community of trading partners. Other researchers [See, for example 14] have also confirmed such finding. In some cases, organisations had expanded their implementation to include the entire industry (that is, import/export, transport, and finance). This approach was deemed to be necessary because some industry sectors had such strong influence. In some cases (such as transport and finance) /04 $17.00 (C) 2004 IEEE 9

10 collaborative working parties were required to develop the agreed document messages required for the implementation. While the literature clearly identifies the benefits of supply-chain integration (see, for example 15, 16, 17, 18, 19, 20 among many others), this study suggests that such an initiative is quite complex. The diversity of trading platforms and processes, and the organisation s level of systems capability, are all factors which can hamper the integration initiative. Although the organisations reviewed often had a high level of integration within their own initiatives and processes, global supply-chain integration involving trading partners and across industries was minimal. Regardless of this issue, it is certain that a collaborative strategy is needed for successful future e- commerce initiatives and equally certain that the level of maturity of the organisations involved in that collaboration plays a major role in the success of the initiative. A stages of growth model for e-commerce has a potentially major role to play in the development of both theory and practice in this area. References [1] C. F. Gibson and R. L. Nolan (1974), Managing the Four Stages of EDP Growth, Harvard Business Review, 52(1), [2] M. J. Earl (1989), Management Strategies for Information Technology, Burr Ridge, ILL, Irwin. [3] R. D. Galliers and A. R. Sutherland (1989), Information Systems Management and Strategy Formulation: Applying and Extending the Stages of Growth Concept in Strategic Information Management. [4] R. D. Galliers and A. R. Sutherland (1991), Information Systems Management and Strategy Formulation: the Stages of Growth Model Revisited. Journal of Information Systems, 1, [5] A. S. Lee (1999), Rigor and Relevance in MIS Research: Beyond the Approach of Positivism Alone, MIS Quarterly, 23(1), [6] Nolan (1979), Managing the Crisis in Data Processing, Harvard Business Review, 5(2), March-April, [7] P. M. C. Swatman (1993), Integrating Electronic Data Interchange into Existing Organisational Structure and Internal Application Systems: the Australian Experience, PhD thesis, School of Computing, Curtin University of Technology, Australia. [8] I. Benbasat (1984), An Analysis of Research Methodologies in the Information Systems Research Challenge, F. W. McFarlan, Boston, Harvard Business School Press: [9] R. T. Pascale and A. G. Athos (1981), The Art of Japanese Management, Harmondsworth, Penguin. [10] J. F. Rayport and B. J. Jaworski (2002), Introduction to E-Commerce, Boston, McGraw Hill. [11] J. McKay, A. Prananto and P. Marshall (2000), E- Business Maturity: the SOG-e Model, Australian Conference on Information Systems, Brisbane, Australia. [12] I. Benbasat, D. K. Goldstein and M. Mead (1987). The Case Study Research Strategy in Studies of Information Systems. MIS Quarterly, 11(3), [13] C. Chan and P.M.C. Swatman (2003) International Examples of Large-Scale Systems - Theory and Practice IV: B2B E-commerce Implementation in the Australian Context, Communications of the AIS, 11(23). [14] L. Wilkins, P.M.C. Swatman and T. Castleman (2003) Governance and Related Competencies in Virtual Environments, Proceedings of the 11th European Conference on Information Systems, Naples, Italy, June [15] J. Gattorna (1998), Strategic Supply Chain Allignment, Gower. [16] T. J. Strader, F.R. Lin, and M.J. Shaw (1999), Business-to-business Electronic Commerce and Convergent Assembly Supply Chain Management, Journal of Information Technology, (14), [17] R. Alt, K. M. Grunauer, and C. Reichmayr (2000). Interaction of Electronic Commerce and Supply Chain Management - Insights from The Swatch Group, Proceedings of the 33rd Hawaii International Conference on systems Sciences, Hawaii. [18] L.E. Gadde and H. Hakansson (2001), Supply Networks Strategy, Chichester, John Wiley. [19] M. C. Kocakulah, A. Foroughi, and M. Lannert (2002). Streamlining Supply Chain Management With E-Business, the Review of Business Information Systems, 6(2), 1-7. [20] Burt, D. N., D. W. Dobler, and S.L. Starling (2003), World Class Supply Management - The Key to Supply Chain Management, Boston, McGraw Hill /04 $17.00 (C) 2004 IEEE 10