E-Business Innovation: Cases and Online Readings
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E-Business Operations and Supply Chain Issues
Part 2: Supply Chains and Logistics in E-Business
Supply chain management represents a major managerial innovation of the 1990s. It has transformed our traditionally intrafirm orientation toward the management of physical flow operations into a strategic interorganizational perspective. The advent of e-business has helped to further extend the supply chain and operations management concepts to a global and real-time level. Many e-businesses ventures used the connectivity of the Internet to innovate in terms of transforming the global supply chains for both digital and physical products. The first case of this Part describes the context and entrepreneurial efforts aimed at the transformation of the supply chain of a service industry: Linux technical support. It also introduces readers to the growing “community-based” open-source movement for software development and to the operational business processes required for service provision over the Internet. The case can be used to illustrate how operational supply chain processes shape the functionality of the e-business engine developed to serve as a Web-based marketplace. The case also illustrates technical and managerial issues involved in the operational development of the e-business engine.

The second case focuses on the operational processes, technical development, and change management aspects of reengineering the supply chain practices of the fish and seafood industry. It provides a rich context for investigating trading models for business-to-business transactions over the Web by detailing the operational intricacies of Web cataloguing, auctioning, and contract sale business processes. Additionally, it discusses some of the legal and privacy issues involved in e-business operations and illustrates how these influence the design of the user interface and business processes. It also brings a process perspective to the supply chain to clarify the systems development approach used for developing the technical architecture. Given that change management issues are an integral component of e-business operations, the case provides material that can be used to explore the major risk factors in the implementation of e-business operations designed to transform an industry’s supply chain.

The readings for this Part provide a conceptual model and integration framework for exploring various issues pertaining to the link between e-business and supply chain management. These include demand and supply chain integration, information integration and the bullwhip effect, and supply chain collaboration activities pertaining to shared demand forecasts, capacity plans, production schedules, inventory status, and shipment schedules. Another key aspect that can be explored is the intertwined operational relationship between marketing, customer relationship management, and demand-supply chain management in e-business organizations.

Reading 1: Lee & Whang (1999)

Reading 2: Girard (1999)

Reading 3: Shankar (2001)