An Overview of Which E-Business is Right for Your Supply Chain?

In "Which e-Business Is Right for Your Supply Chain?" by Sunil Chopra and Jan A. Van Mieghem, it is stressed that not every e-business solution is right for every company. E-business solutions should be aligned with the overall strategy of the company and enhance performance of traditional business segments of the corporation. Many times there are trade-offs of using the Internet to Enhance Value versus using the Internet to Increase Efficiency. Successful e-business solutions will seek to do both.

Before a corporation decides on an e-business solution, a strategic framework is needed. In the article, the following guidelines are given:
1.Determine the firm's strategic position.
2.Determine which supply chain competencies are needed to facilitate the firm's strategic position.
3.Once core supply chain competencies are defined, determine how the supply chain will be structured.
Honest assessment of these questions will help align e-business strategy with the overall strategy of the corporation.

In determining the correct e-business solution for the corporation, revenue and cost impacts of e-business must be fully understood. On-line information allows for flexibility on price, a complete product portfolio, and allows for more effective, targeted promotions. In addition, certain aspects of e-business allow for segmentation of customers based on historical information making it easier to implement price and service customization. In effect, it will be easier to concentrate on top customers and allow a firm to ease effort on attracting new customers.

The article incorporates a scorecard that outlines opportunities to create revenue and reduce costs using e-business solutions. In addition, several well-known examples, such as PeaPod.com and Dell, are used to illustrate more effective uses of e-business technologies. Varied success was experienced by examples used in the paper.