L’utilisation d’Internet dans les PME, étude de l’impact sur les processus d’affaires

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Extrait

The use of Internet in SME. Its impact on business

processes

Hugues Boisvert‡, Ph. D., FCMA Abstract

‡

HEC – Montreal

CMA International Centre

Montreal, Quebec, Canada

[e-mail]

Abstract

Internet is a technology that enhances the value proposition offered by companies to their customers. To achieve this goal,

companies have to integrate the use of this technology within some of their business processes. They need to perform new activities,

modify the exercise of actual ones and eliminate some others.

So, in terms of the activities affected by the use of the Internet, we will present and define 6 configurations declined over two

levels of Internet integration and each one, presented within different contexts. We will describe how the activities are affected by the

use of Internet, the main Internet contribution to the value proposition, the related difficulties and success factors of Internet integration

into some business activities, some innovating Internet-based practices as well as lessons to be draw from the cases studied. The paper

discusses also the methodology used to achieved these results.

Keywords

E-configurations, E-integration, E-business practices, E-implementation, E-reengineering

1. INTRODUCTION

This study follows the one that was conducted in 2000-2001 [Bégin et al, 2001] where some 57 cases studies of Internet

integration were documented. The purpose of this second project is to go further and deeper in our description of the

impact of Internet on business processes in terms of additional activities, modified activities and eliminated activities. In

order to understand and to be able to interpret the data gathered from some 42 interviews with the people involved in the

implementation of the use of Internet in their company, we developed over the two years a conceptual framework

presented in the first part of this paper. In the second part, we describe a set of 6 configurations reflecting two levels of

Internet integration into business processes and, with respect to each configuration, we investigated the following

elements :

-

the activities affected by the use of Internet,

-

the main Internet contribution to the value proposition,

-

the related difficulties and success factors of Internet integration,

-

some innovating Internet-based practices and

-

some lessons to be drawn from the cases studied.

The use of Internet in SME Its.

Its impact on business process

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International Conference on Electronic Commerce Research (ICECR-5)

2 THE CONCEPTUAL FRAMEWORK

Our framework of analysis 2001 [Bégin et al, 2001] declines over three levels: Context and strategy on the first level,

Business processes on the second level, and Technology, namely Web site development on the third level. Figure 1

presents this figure.

Figure 1: Conceptual framework

Level one sets the tone by asserting that strategic deployment of e-commerce is based on knowledge of a company’s

specific business context and its ability to define the e-commerce strategy it expects to take. The emphasis on the analysis

of a company’s environment and business context illustrates our firm conviction that there is no single way to use the

Internet. On the contrary, the e-commerce deployment path appropriate for a company depends on a company’s

organizational resources (financial, human, and technological), the particularities of the industry or sector in which it

operate, and company executives willingness to invest in this area.

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Level two describes eight processes that make up a company’s value chain (as well as three support processes) and

provide the structure of client relations. Each of these processes is potentially impacted by the use of the Internet, which

can change, eliminate or increase some activities within these business processes. As these processes alone were the focus

of our research, the model only applies to the sell-side of a company and not to the production (in-side) or supply-chain

(buy-side) processes.

Level three shows the technological parameters. They could be the different means of information transmittal such as

EDI, e-mail, WWW, Intranet, Value-added network, etc. But, within the context of this particular study, we focused

mainly on the Internet considering the nature of a Web site development which could be solely Informational,

Promotional, Relational, Transactional or any combination of these.

3.

METHODOLOGY

For this particular project, the benchmarking methodology of the CMA International Centre was adapted as follows:

1

Planning for the project, which included the adaptation of a conceptual framework of analysis.

2

Web site analysis in order to be able to identify and select companies likely to be of interest given the

purpose of this study.

3

Development of a questionnaire with open questions to be used by the interviewers to conduct the

interviews, and also development of a framework to report the interview.

4

Training the team of interviewers.

5

Selecting and contacting companies for an appointment.

6

Conducting the interviews and reporting them.

7

Writing and validating the case study.

8

Development of a classification of configurations.

Those steps were mostly carried on chronologically, but steps 6, 7 and 8 were also carried on iteratively. In effect, we

held a Friday morning meeting with the team of interviewers during which we discussed the interviews that were done the

week before, the information that was reported from these cases, the additional information that we would like to get from

them, and also the evolving classification and the related definitions of configurations. These meeting could be qualified

as collective learning sessions through knowledge sharing.

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Its impact on business process

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International Conference on Electronic Commerce Research (ICECR-5)

4.

CONFIGURATIONS OF INTERNET INTEGRATION

A configuration defines an Internet integration in terms of the company’s activities affected by the use of Internet. It

describes the way the organisation uses Internet in its activities, that is, its business practices. Figure 2 presents a

classification of Internet configurations declined over the three levels of integration.

First level

C om m unicators-advertisers

C om m unicators

A dvertisers

T hird level

Full Internet integration

N

e

t

w

o

r

k

e

r

s

Second level

D evelopers-sellers

D evelopers

Sellers

Internet

Integration

axis

Figure 2: Internet Integration

The first level of Internet integration relates to complementary existing communicational and promotional activities.

Configurations at this level are generally supported by a site whose estimated cost usually lies between $5,000 and

$25,000 and which appears as a one-way communication channel. Two typical configurations were identified and

described at the two extreme of this level of Internet integration, namely Communicators

and Advertisers. All other

Internet configurations at this level are some combination of these two typical configurations.

The second level of Internet integration relates to new relational and transactional activities. The use of Internet allows the

business to gather and analyze information from customers, suppliers, partners and other stakeholders of the company,

and also to sell online products and services that would not be possible otherwise. Configurations at this level are

supported by a two-way communication (interactive) site whose estimated cost usually lies between $25,000 and a

$100,000. Two typical configurations were identified and described at the two extreme of this level of Internet

integration, namely Developers and Sellers. All other Internet configurations at this level are some combination of these

two typical configurations.

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The third level corresponds to a total integration of Internet into business processes in which it increases substantially the

value proposition. For the moment, we refer to configurations at this level as Networkers. The Web site of these

companies includes either an Intranet or an Extranet which has a substantial impact on logistics and supply-chain

management activities. The related configurations are the main objective of our forthcoming project. Table 1 summarizes

the characteristics of each integration level configurations.

Level 1 : Additional complementary activities

Web site

Investment

Related

activities

Configurations Added value

One-way

Communication

Less than

$25,000

Communication

and Marketing

Communicator

Advertiser

Communicator-

advertiser

Information on products

and services, company

expertise and realizations,

knowledge and savoir-faire

of its people.

Level 2 : Partial integration of Internet

Web site

Investment

Related

activities

Configurations Added value

Interactive

Between

$25,000 and

$100,000

Relations with

customers,

partners and other

stakeholders,

Transactions

(online order and

payment)

Developer

Seller

Developer-seller

Information gathered about

needs, tastes and so on from

customers and other

stakeholders in order to

develop new products.

Also, doing electronic

transactions.

Level 3 : Total Internet integration

Web site

Investment

Related

activities

Configurations Added value

Featuring an

Intranet and/or an

Extranet

More than

$50,000

Internal logistics

and Supply chain

activities

Networkers

(types to be

defined)

Greater efficacy and

efficiency of internal

logistics and supply chain

activities.

Table 1: Characteristics of each level configurations

So, regarding the 42 cases studied, we investigated the business context, Internet implementation related difficulties and

success factors as well as Internet-based innovating practices and lessons to be drawn from the cases studied. Figure 3

summarizes the classification of the cases studied.

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International Conference on Electronic Commerce Research (ICECR-5)

Figure 3: Classification of the cases studied

Figure 3 does not tell all about the practices of the companies identified to a configuration. In effect, on one hand, many

companies identified to a level 2 configuration feature also many interesting practices related to a level 1 configuration,

and on the other hand, some other companies also identified to a level 2 configuration have either an Intranet or an

Extranet or both, and as such are likely to feature level 3 configuration practices (that were not studied in this particular

project).

4.1

First level configurations

First level configurations are the Communicators, the Advertisers and the Communicators-advertisers. The companies at

this level often have limited human and financial resources and wish to experiment with a first level configuration before

investing into a second level configuration.

Internet allows the companies to communicate easily and economically throughout the world. Moreover, they can deliver

their message in a way (updated every minute, photos, videos, using links to other sites, etc.) that has never been possible

before. The main difficulties are getting a good ranking using the various search engines available, and also the human

and financial resources to insure a proper maintenance of the site.

4.1.1

Communicators

Communicators cannot sell products on line because they do not have any product to sell or because the product they sell

requires a technical evaluation, is subject to a quote or requires a financing. Communicators aim at promoting the

Developer

Seller

Internet integration

level

36

37

38

4

9

31

15

42

8

21

27

39

13

14

Advertiser

Communicator

5

11

29

26

30

32

33

2

3

10

20

1

16

6

17

19

23

40

28

Communicator-

advertiser

Direct

sale

Other

Developer-

seller

Second level

First level

Individual

Group

34

41

24

18

35

22

12

7

25

21

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company’s expertise rather than its products or services. Telling about its intellectual capital, its competencies as well as

its ethical, social and environmental conduct, contribute to develop a corporate image.

Internet use

The objective of a Communicator using the Internet is to develop a corporate image. The company wants to generate

confidence and to establish customer loyalty. So, any elements that contribute to increase the web surfers confidence are

important. A list of well referenced completed projects, evidence and testimony from satisfied customers, prizes and

distinctions won by the company, enumeration of partners and well-known suppliers should contribute to the success of

this configuration.

Successful practices

-

Showing the company main realizations.

-

Making available the testimony of satisfied customers.

-

Providing specialized information that a surfer could get only from an expert or in specialized literature.

-

Giving technical and practical advices.

-

Having a search engine related to a problem or a question.

-

Using links to other sites to provide added value information at no cost.

-

Providing with a list of business partners and suppliers.

-

Communicating regularly with the virtual communities of customers.

Lessons to be learned

With a relatively low investment, ranging from $5,000 to $25,000, a company can successfully

implement a

Communicator configuration. In effect, by showing concrete projects realizations, a Communicator can diffuse an image

of expertise and of good social, ethical and environmental behaviour. Links to other sites, technical and expert advices as

well as list of partners and well known suppliers are also effective ways to increase the surfers’ confidence.

Examples

A building contractor presenting his last projects and showing testimony of satisfied customers.

A business offering a tailor-made product, specialized, which tell the surfer about all the technical features of its products

and after-sale service.

An organization in the field of research presenting its numerous research reports, and provide the community with a list of

technical and professional advices regarding its field of expertise.

Another organization offering professional services having a search engine from which you can find an answer to your

questions and problems.

4.1.2

Advertisers

Advertisers are characterized by a promotional strategy aimed at promoting the company products and services. The

message focuses on the quality of the products and services rather the company’s competencies, or its ethical, social and

environmental conduct.

Internet impact

The objective of an Advertiser using the Internet is to promote its products and related services. Depending on the type of

products, the quality of the pictures, the technical descriptions, the prices and other useful product information (related to

storage, maintenance, safety, etc.) are important. Integration with an up-to-the-minute inventory and responding within

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the minute to questions from the surfers will insure the success of this configuration. Offering weekly or even daily

promotions will regularly bring back surfers to the site.

Successful practices

-

Presenting an online product catalogue, including pictures, prices and complete technical and useful

information.

-

Integrating an online inventory.

-

Responding within the minute to any inquiry.

-

Offering to download a software to illustrate the product functionalities.

-

Projecting a video to show the product usage in the context of various conditions.

-

Possibility of a virtual visit of a location.

-

Delivering a course with respect to the product utilization.

-

Communicating regularly new

promotions.

-

Offering joint promotions with suppliers.

-

Locating the closest store.

-

Outsourcing transactional functionalities.

-

Having a search engine to make suggestions to the surfers questions

-

Computing the discounts and bonuses to the salesmen and distributors.

-

Registering on portals to get more visibility.

-

Choosing key words related to problems rather than products to obtain a better positioning on search

engines.

Lessons to be learned

Even when a product cannot be sold by Internet, practices such as demonstration software and virtual visits are useful to

prepare and accelerate a sale. An electronic catalogue integrated with an on line inventory is sometimes the only mean to

have up-to-the-minute information on the products for sale. Generally, factors that are helpful in finding the right product

are more important to a customer than the way the transaction is made.

Examples

A company which clientele is handicap people, and who describe through its site how its numerous lines of products can

adapt to peculiar client conditions.

A company whose product is being used in specific weather conditions.

A store which sell art works can show what is available at the time of the visit.

A company which sell a product such to do cleaning maintenance through a chain of stores show how to use the products

in different conditions and also identify the nearest store.

4.2

Second level configurations

Second level configurations are the Developers, the Sellers and the Developers-sellers. The companies at this level have

already integrated the practices of a first level configuration and have also develop interactive Web site functionalities

either to exchange information with various stakeholders or to make transactions or both.

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International Conference on Electronic Commerce Research (ICECR-5)

4.2.1

Developers

Developers do not sell, neither they accept payment on line, although the submission and discussion of quotes accelerate

the process of sale. They use the Internet to personalize their relations with their clients, their business partners as well as

other stakeholders. In order to achieve their objective, they systematically analyse the information that they get through

the various interactive functionalities.

Internet use

The objective of a Developer is to develop its market, its niche and also to establish customer loyalty, suppliers

confidence, shareholder interest in the company, employees satisfaction and so on. Hence, additional complementary

services and information provided through the site to the various virtual communities will insure the success of this

configuration.

Successful practices

-

Having sections of the sites dedicated to the various virtual communities.

-

Featuring a virtual try out gallery which allows the customer to visualize himself wearing a piece of clothe

before orders it.

-

Using an interactive game to illustrate the utilization of a product.

-

Testing promotional programs.

-

Using a software to allow customers to design their own products.

-

Using the Internet to see and to approve prototypes and other proofs before the production begins.

-

Organizing a discussion forum to exchange ideas on products and services.

-

Facilitating transactions between customers.

-

Making possible the consultation of the previous acquisitions and of the statement of accounts in order to

facilitate the renewal of an order.

-

Activating links to partners, suppliers and other stakeholders websites to increase the value of its own site.

-

Making possible online transactions of accessories and supplies to support the traditional sale of the main

product.

-

Preparing documents to be used by representatives and distributors.

Lessons to be learned

With an investment ranging usually between $25,000 and $100,000, a company can successfully implement a Developer

configuration, although a SME may sometimes develop a relational site for less than that amount through the personal

implication of an associate or a friend. Such an involvement appeared to be highly risky in the long run, because when

that particular resource is no more available, the company cannot afford to maintain the site.

The priority of a Developer is to personalize its relations with some targeted communities by the way of exchanging

information through various interactive functionalities. To this effect, Internet is an ideal mean to recruit candidates, to

animate virtual communities of customers, to support its employees and distribution network. The next step of evolution

of a Developer is to implement a third level configuration by using an Intranet or an Extranet.

Examples

An editor who animate a community of readers with a bulletin and a discussion forum.

A company selling a custom-made product who offer its customer to design their own the products through some

websites functionalities.

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International Conference on Electronic Commerce Research (ICECR-5)

A company having developed for its customers a whole set of practical advices and also who animate a forum of

discussion.

A chain of stores using the Internet to exchange information with its managers regarding promotions and also testing

promotions with various virtual communities.

4.2.2

Sellers

Sellers make transactions on line. Either they sell products that they would not be able to sell by the traditional channels,

or they substantially add to the value proposition (reducing the paperwork, the delay of transaction, easing the payment

with foreign currency and so on) selling a product that is still sold the traditional way.

Internet use

The objective of a Seller is to sell. So, a Seller has necessarily a product that can be sold through the Internet. Its objective

then is to use the Internet to make the whole supply chain activities more efficient, and also to make it secure and user

friendly.

Innovating practices

-

Offering a niche product difficult to buy through traditional channels.

-

Using a carrier for delivering the product which allows the customer to know exactly and anytime where his

package is.

-

Integrating the online sale system with the management system.

-

Developing a line of products specific to online sales.

-

Receiving the order and the payment, then immediately contacting the company suppliers to deliver it to our

customer. So a just-in-time process.

-

Transforming the role of the sales team into a management of sales team.

Lessons to be learned

Successful Sellers usually have a site quite developed, and in particular, have develop other functions, namely the

contract function [Boisvert and Bégin, 2002] as well as the relational functions to some extent. In effect, Relational-

transactional sites seem to be more supportive of a Seller configuration than a purely Transactional site. Also, a company

should renew its site regularly to be successful.

For SME, they can outsource the payment function which is expansive to develop. They should also feature some first

level configurations practices such as integration with the supplier inventory and links to other sites to generate added

value information.

A company should manage carefully the process of change when some traditional tasks are eliminated and should invest

in the training of people toward this purpose.

The importance of relational functionalities comes from the fact that personalized relations with customers generate more

sales.

Speed of information exchange makes possible a just-in-time management system.

Examples

A SME that sells a niche product available only in specialized stores found in major cities.

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A SME that sells worldwide a specialized product used by a given community such as one type of musicians.

Conclusion

We described the use of Internet in SME, its impact on business processes through 42 cases studies over a five month

period. We could identified 3 levels of Internet configurations and described configurations related to the firs two levels.

This study opens up the development to a guide to Planning the Internet use in organizations.

References

[1.] Bégin, Lucie and Boisvert, Hugues, Working paper Cicma 02-01, Analyse du contenu des sites Web: niveau de

développement et typologie des profiles d’utilisateurs, HEC Montréal, Chaire internationale CMA, April 2002, 48

p.

[2.] Bégin, Lucie, Tchokogué, André and Boisvert, Hugues, Strategic Deployment of E-Commerce, Isabelle Quentin,

éditeur, The Communicators Collection, 2001, 154 p.

[3.] Boisvert, Hugues, Working paper Cicma 02-05, Impact de l’utilisation d’Internet sur les processus d’affaires, HEC

Montréal, Chaire internationale CMA, September 2002, 40 p.