Change in Business Processes Induced by E‐Commerce and E‐Business

Globalization has allowed or even led to new types of economic organization and firms to emerge. The driving factors are time and space shrinking. Companies launching e-commerce can expect it to have a lifecycle similar to that of most new products. Sales through this channel vary with expenditure according to an S-shaped curve. Profitability of an investment can be characterized by two parameters, i.e. the rate of return on investment (ROI) and the pay-back period of time. Business processes are changed when humans are substituted for server-enabled activities: upstream and downstream activities have to be adapted accordingly. As a result, information systems have to be modified to meet the requirements of e-customers and e-employees. Online Dutch auction processes are now widely used by purchase pools for consumer goods. An example of such a process designed and implemented in a high-tech manufacturing company is described in this chapter.