DEVELOPING A MODEL FOR TRANSITION Adoption of an e-business strategy is not just a technological change.

Not only has the company itself, which initiated the e-business implementation, but possibly the whole industry around it needed reevaluation. E-business initiatives need to be carried on the level of the CEO, not just on the level of the CIO. Recent history has shown that lack of strategic vision or wrong vision could be disastrous for the company adapting e-business. However, not participating in the e-business transformation now could be a strategic mistake. Existing models are not appropriate for the whole process of e-business adoption by SMEs. An appropriate model would require both the definition of the strategy as well as the deployment of the ebusiness solution. To guarantee continuity the model should also stimulate reiteration. A new model based on these criteria has been developed which consists of a chronological set of steps that need to be taken when a SME is planning to adopt e-business. It contains a feedback loop, because e-business, like business in general, is a continuous changing process. The steps in the model are represented in Below:

Business Architecture and Infrastructure In order to make a transition from business to e-business, it is important to start with obtaining a clear view on the current Business Architecture and Infrastructure of the company. This view should not be limited to the company alone, but needs to include suppliers and partners. The companys place in a

value chain could be very important. This information will provide a basis for the transition to the target architecture. The following components of the Business Architecture should be described for the current and new situation: Customers (the customer value); Supply; Resources; Processes; Partners; Engines (profit and growth). Strategy and Model The e-business initiative must result from the target business architecture and infrastructure defined in the previous step. The level of the e-business initiative needs to be evaluated against the ladder of ebusiness initiatives. Because SMEs are relatively small it can be expected that a disruptive initiative, level 4, will be rare but not impossible. Thus, initiatives will likely be of level 1 through 3. It would be recommended to already define a goal at a higher level to get a proper perspective. The strategy will make sure the implementation to that level will be incremental, although the original design might have been radical. The reason for this is that e-business initiatives could span more than just the initiating company. It could be wise to already to determine the position of the company is a bigger perspective, like the industry or value Chain/business web. Technical Architecture and Infrastructure E-business initiatives of level 1 or 2 have limited impact on the business and Technological Architecture and Infrastructure. The introduction of the Internet mainly comprises the creation of a website with static or dynamic content, and either or not supported by e-mail services and newsletters. These types of solutions could be hosted by Application Service Providers, because the do not necessarily require integration with the business processes of the company. As soon as the e-business initiative is identified as level 3 or 4, integration will become an important aspect in choosing the required Technological Architecture and Infrastructure. Whether you want to call them processes, business events or services, integration should aim to create a system to manage all business processes, a Business Process Management System. Business process modelling could very well include processes that cross the borders of the company. Security and data integrity are important non-functional requirements that need to be high on the priority list. Small enterprises usually have limited automation. They probably require the introduction of off-the-shelf applications, like Enterprise Resource Planning, Customer Relationship Management or Supply Chain Management. From these applications special SME versions have been developed. Construction and Implementation It was already identified that the strategy could be an incremental approach to an already identified target situation. If this were the case, this phase would be repetitive. However, it is recommended to continue with steps 5 and 6, before continuing with the next iteration of this step. The benefit of that approach is that steps 5 and 6 test the chosen strategy and adapt it if necessary. Evaluation It should not be a surprise that the chosen strategy and solution implementation need to be evaluated. To get insight in the financial success of the solution evaluation should be based on measurement of Total Value of Ownership (TVO) and Return of Customer Satisfaction (RCS). In case the solution comprises transactions from customers via a Website, it is recommended to establish if customers are one-time or recurring customers. Recurring customers will provide a higher success rate of the total solution. A company will need to gain trust to make customers start ordering. Furthermore, appropriate service will make customers come back. Adjusting the Strategy Depending on the results of the evaluation the chosen long-term strategy might need to be adapted or even revised. With help from the new identifiers of success (TVO and RCS) it should be more likely that disasters, like many dotcoms experienced, could be avoided. Furthermore, to stay competitive a

company needs to keep up with the business and technological trends. For those reasons, it is recommended to implement this model as a continuing process.