An organization is composed of people, resources other than people, and commitments
that are acquireGoals are desired results expressed in qualitative terms. For example, a typical
goal of profit-oriented firms is to maximize shareholder wealth. Goals are also likely
to be formulated for other major stakeholders, such as customers, employees, and
suppliers. In contrast, objectives are quantitatively expressed results that can be
achieved during a pre-established period or by a specified date. Objectives should
logically be used to measure progress in achieving goals. For example, one of ABN
AMRO�s goals is to become a leading bank in the euro. In pursuit of that goal, the
bank established an objective of having all of its systems euro-compatible by January
1, 1999, when the euro was introduced. The objective was achieved at tremendous
cost, but management believes that ABN AMRO�s new ability to offer harmonized
banking services throughout Euroland will be worth the investment.14
An organization�s structure normally evolves from its mission, goals, and managerial
personalities. Organizational structure reflects the way in which authority
and responsibility for making decisions is distributed in an organization. Authority
refers to the right (usually by virtue of position or rank) to use resources to accomplish
a task or achieve an objective. Responsibility is the obligation to accomplish
a task or achieve an objective.
A continuum of feasible structures reflects the extent of authority and responsibility
of managers and employees. At one end of the continuum is centralization,
where top management retains all authority for making decisions. Centralized firms
often have difficulty diversifying operations because top management might lack
the necessary and critical industry-specific knowledge. The people who deal directly
with the issues (whether problems or opportunities), have the most relevant
information, and can best foresee the decision consequences are not making the
decisions.
At the other end of the continuum is decentralization, in which the authority
for making decisions is distributed to many organizational personnel, including
lower-level managers and, possibly, line employees. In today�s fast-changing and
competitive operating environment, implementation of a decentralized organizational
structure in a large firm is almost imperative and typically cost-beneficial.
However, for decentralization to work effectively, there must be employee empowerment,
which means that people are given the authority and responsibility to make
their own decisions about their work. A decision to decentralize is also a decision
to use responsibility accounting, which is discussed in Chapter 18.
Most organizations operate at some point on the continuum other than at either
of the ends. Thus, a top management decision might be the location of a new
division, while the ongoing operating decisions of that division might lie with the
new division manager. Long-term strategic decisions for the division might be made
by the division manager in conjunction with top management.d and arranged to achieve specified goals and objectives.
Friday, August 6, 2010
ORGANIZATIONAL STRATEGY
In responding to the challenges of e-commerce and globalization, managers must
consider the organization�s mission and, correspondingly, the underlying strategy
that links its mission to actual activities. An organization�s mission statement
should (1) clearly state what the organization wants to accomplish and (2) express
how that organization uniquely meets its targeted customers� needs with its products
and services. As indicated in the following News Note, a mission statement
should be an organizational road map.
The mission statement may, and most likely should, be modified over time.
Not adapting the mission statement probably means the organization is stagnating
and not facing the ever-changing business environment. For instance, Hibernia Corporation�s
mission statement in 1994 was �to be recognized by 1996 as the best
provider of financial services throughout Louisiana.� By 1997, the mission statement
was �By 1999, we will be recognized by our customers, employees, and
shareholders as the best financial services company in each of our markets.�11 Only
three years yet a dramatic difference: the corporation had engaged in multiple bank
merger opportunities outside Louisiana and was looking for more.
Translating the organization�s mission into the specific activities and resources
needed for achievemedicates how the organizational goals and objectives will be fulfilled through satisfaction
of customer needs or wants reflects strategy. Strategy can also be defined as:
the art of creating value. It provides the intellectual frameworks, conceptual
models, and governing ideas that allow a company�s managers to identify
opportunities for bringing value to customers and for delivering value at a profit.
In this respect, strategy is the way a company defines its business and links together
the only two resources that really matter in today�s economy: knowledge
and relationships or an organization�s competencies and its customers.12
An organization�s strategy tries to match its internal skills and resources to the
opportunities found in the external environment.13 Small organizations may have
a single strategy, while large organizations often have an overall entity strategy as
well as individual strategies for each business unit (such as a division). The business
units� strategies should flow from the overall strategy to ensure that effective
and efficient resource allocations are made, an overriding corporate culture is developed,
and organizational direction is enhanced. For instance, at ABN AMRO,
the Netherlands Division strategy is to position the bank as a provider of integrated
banking and insurance products; the strategy for Central/Eastern Europe is strong
internal growth and selective acquisition; and the strategy for Asia/Pacific is to raise
the profitability of core corporate banking activities.
Exhibit 1�7 provides a checklist of questions that help indicate whether an organization
has a comprehensive strategy in place. Small businesses may need to
substitute �product lines� for �business segments� in answering the questionsnt is called planning. The long-term, dynamic plan that
consider the organization�s mission and, correspondingly, the underlying strategy
that links its mission to actual activities. An organization�s mission statement
should (1) clearly state what the organization wants to accomplish and (2) express
how that organization uniquely meets its targeted customers� needs with its products
and services. As indicated in the following News Note, a mission statement
should be an organizational road map.
The mission statement may, and most likely should, be modified over time.
Not adapting the mission statement probably means the organization is stagnating
and not facing the ever-changing business environment. For instance, Hibernia Corporation�s
mission statement in 1994 was �to be recognized by 1996 as the best
provider of financial services throughout Louisiana.� By 1997, the mission statement
was �By 1999, we will be recognized by our customers, employees, and
shareholders as the best financial services company in each of our markets.�11 Only
three years yet a dramatic difference: the corporation had engaged in multiple bank
merger opportunities outside Louisiana and was looking for more.
Translating the organization�s mission into the specific activities and resources
needed for achievemedicates how the organizational goals and objectives will be fulfilled through satisfaction
of customer needs or wants reflects strategy. Strategy can also be defined as:
the art of creating value. It provides the intellectual frameworks, conceptual
models, and governing ideas that allow a company�s managers to identify
opportunities for bringing value to customers and for delivering value at a profit.
In this respect, strategy is the way a company defines its business and links together
the only two resources that really matter in today�s economy: knowledge
and relationships or an organization�s competencies and its customers.12
An organization�s strategy tries to match its internal skills and resources to the
opportunities found in the external environment.13 Small organizations may have
a single strategy, while large organizations often have an overall entity strategy as
well as individual strategies for each business unit (such as a division). The business
units� strategies should flow from the overall strategy to ensure that effective
and efficient resource allocations are made, an overriding corporate culture is developed,
and organizational direction is enhanced. For instance, at ABN AMRO,
the Netherlands Division strategy is to position the bank as a provider of integrated
banking and insurance products; the strategy for Central/Eastern Europe is strong
internal growth and selective acquisition; and the strategy for Asia/Pacific is to raise
the profitability of core corporate banking activities.
Exhibit 1�7 provides a checklist of questions that help indicate whether an organization
has a comprehensive strategy in place. Small businesses may need to
substitute �product lines� for �business segments� in answering the questionsnt is called planning. The long-term, dynamic plan that
Business Planning with SAP NetWeaver BI
High End-User Productivity in
Planning
?? Common and uniform user-interface for
planning and analytics
?? Common and uniform processing logic for
both planning and analysis
Design of Planning Applications
?? User-centric and consistent design tools for
planning and analysis ( e.g. query design
and Web application design follow the same
approach)
?? Web-based and guided modeling and
administration environment for planning
applications
?? Shared persistency and integrated met � SAP AG 2005, SAP Business Intelligence and Analytics Conference / C2_Hagen / 8
�Planning-aware� BEx Tools
BEx Query Designer
?? Use query features in planning
applications
?? Set key figures in a query ready for
input
BEx Web Application Designer &
Excel application design
?? Combine editable grids for data entry
with other items
?? Buttons/ menu items for planning
functions and other commands
?? Charts & formatted reports
?? Navigation elements
?? Excel Application Designer for design
of workbooks
Planning
?? Common and uniform user-interface for
planning and analytics
?? Common and uniform processing logic for
both planning and analysis
Design of Planning Applications
?? User-centric and consistent design tools for
planning and analysis ( e.g. query design
and Web application design follow the same
approach)
?? Web-based and guided modeling and
administration environment for planning
applications
?? Shared persistency and integrated met � SAP AG 2005, SAP Business Intelligence and Analytics Conference / C2_Hagen / 8
�Planning-aware� BEx Tools
BEx Query Designer
?? Use query features in planning
applications
?? Set key figures in a query ready for
input
BEx Web Application Designer &
Excel application design
?? Combine editable grids for data entry
with other items
?? Buttons/ menu items for planning
functions and other commands
?? Charts & formatted reports
?? Navigation elements
?? Excel Application Designer for design
of workbooks
Standalone Components
The Content Server is a separate server instance that is used to store documents or other type of
content related to SAP applications. If your company operates on several locations, content can be
cached with the accompanying cache server. This reduces load on the wide area network when
working with documents.
You can store your document content either in SAP Content Server or in a database. If you have a
large amount of content to be stored, you can take the load off the database if you use SAP Content
Server. Depending on the CRM business object types, you can configure which documents you want
to store in SAP Content Server and which documents should be stored in the database. These business
object types are, for example product catalog, product, business partner, marketing campaigns,
and the solution database.
Search and Classification (TREX)
SAP NetWeaver Search and Classification (TREX) offers an integrated set of services. TREX services
include search and retrieval in large document collections, text mining, automatic document
classification, and search and aggregation over structured data in SAP applications. TREX can handle
text from documents in numerous formats, including Microsoft Office and Adobe formats (PDF),
and more than 30 languages. TREX search options, such as exact, boolean, fuzzy or linguistic search,
and classification options such as query-based or example-based classification, offer great power
and flexibility to end users.
Recommendation
For performance reasons, we recommend that you install TREX on a separate host.
Check carefully the hardware requirements. They depend largely on your individual needs. The
size and number of indexes, number of updates and inserts per day, number of parallel search
activities, your back up, and high availability strategy and other factors strongly influence the
hardware requirements.
SAP Groupware Connector
SAP CRM Groupware Connector provides access to important business information created in SAP
CRM in the most widely used groupware systems: Microsoft Exchange Server and Lotus Domino.
This version of SAP CRM Groupware Connector allows a server-based, two-way replication of CRM
business partners, contact persons and activities with the groupware contacts, appointments and
tasks. After an item is created, changed, or deleted in the SAP CRM system, the changes are sent to
the Groupware Connector that forwards them to the users' mailboxes. Users can immediately see
changes in their mailboxes, by using their favorite Groupware Client application, such as Microsoft
Outlook or Lotus Notes. This is an important step for increasing the employee productivity, because
now it is possible to see calendar entries received from colleagues via the Groupware server, and
business meetings with a customer, created in the SAP CRM system. Users can view contacts, mapped
from CRM business partners in their groupware client, or can quickly find a customer telephone
number without starting the CRM client.MapBox
This component is an XML-based mapping framework that is used by the SyncPoint (synchronization
technology, especially used for groupware integration). It uses a set of predefined rules to process data
that enters it. This type of predefined rule is known as a MapScenario.
content related to SAP applications. If your company operates on several locations, content can be
cached with the accompanying cache server. This reduces load on the wide area network when
working with documents.
You can store your document content either in SAP Content Server or in a database. If you have a
large amount of content to be stored, you can take the load off the database if you use SAP Content
Server. Depending on the CRM business object types, you can configure which documents you want
to store in SAP Content Server and which documents should be stored in the database. These business
object types are, for example product catalog, product, business partner, marketing campaigns,
and the solution database.
Search and Classification (TREX)
SAP NetWeaver Search and Classification (TREX) offers an integrated set of services. TREX services
include search and retrieval in large document collections, text mining, automatic document
classification, and search and aggregation over structured data in SAP applications. TREX can handle
text from documents in numerous formats, including Microsoft Office and Adobe formats (PDF),
and more than 30 languages. TREX search options, such as exact, boolean, fuzzy or linguistic search,
and classification options such as query-based or example-based classification, offer great power
and flexibility to end users.
Recommendation
For performance reasons, we recommend that you install TREX on a separate host.
Check carefully the hardware requirements. They depend largely on your individual needs. The
size and number of indexes, number of updates and inserts per day, number of parallel search
activities, your back up, and high availability strategy and other factors strongly influence the
hardware requirements.
SAP Groupware Connector
SAP CRM Groupware Connector provides access to important business information created in SAP
CRM in the most widely used groupware systems: Microsoft Exchange Server and Lotus Domino.
This version of SAP CRM Groupware Connector allows a server-based, two-way replication of CRM
business partners, contact persons and activities with the groupware contacts, appointments and
tasks. After an item is created, changed, or deleted in the SAP CRM system, the changes are sent to
the Groupware Connector that forwards them to the users' mailboxes. Users can immediately see
changes in their mailboxes, by using their favorite Groupware Client application, such as Microsoft
Outlook or Lotus Notes. This is an important step for increasing the employee productivity, because
now it is possible to see calendar entries received from colleagues via the Groupware server, and
business meetings with a customer, created in the SAP CRM system. Users can view contacts, mapped
from CRM business partners in their groupware client, or can quickly find a customer telephone
number without starting the CRM client.MapBox
This component is an XML-based mapping framework that is used by the SyncPoint (synchronization
technology, especially used for groupware integration). It uses a set of predefined rules to process data
that enters it. This type of predefined rule is known as a MapScenario.
Business Packages
Business Packages contain predefined portal content suitable for a variety of industries and for dozens of
user roles. The portal content includes everything users see and interact with in the Enterprise Portal,
for example real-time data from SAP applications and analyzed reports from the Business Intelligence
solution. These resources are displayed within the portal interface as iViews (portlets).
The roles are categorized on the highest level into content suitable for every user, for line managers,
and for specialists. A role provides access to a number of specific Worksets, which are clusters of related
tasks. iViews are the smallest units of information. Each workset contains those iViews that provide
access to applications, reports, services, and information required to complete the task.
The CRM User role is a generic role, that cannot be assigned to a specific scenario. It enables the
central access to all activities for CRM users.
It provides the following functions:
n CRM user homepage: Single point of entry for activities, tasks, and news
n Universal Worklist
n Employee directory
n E-mail transfer to CRM system
You cannot implement the CRM User role alone. You always have to combine it with other roles. To
implement the CRM User role, you have to install the following software units:
n CRM 5.0 Server (ABAP)
n SAP NetWeaver 2004s Enterprise Portal
n Business Package CRM 5.0
n SAP NetWeaver 2004s Search and Classification (TREX) (required for Knowledge Management
document search and the Top News iViews)
user roles. The portal content includes everything users see and interact with in the Enterprise Portal,
for example real-time data from SAP applications and analyzed reports from the Business Intelligence
solution. These resources are displayed within the portal interface as iViews (portlets).
The roles are categorized on the highest level into content suitable for every user, for line managers,
and for specialists. A role provides access to a number of specific Worksets, which are clusters of related
tasks. iViews are the smallest units of information. Each workset contains those iViews that provide
access to applications, reports, services, and information required to complete the task.
The CRM User role is a generic role, that cannot be assigned to a specific scenario. It enables the
central access to all activities for CRM users.
It provides the following functions:
n CRM user homepage: Single point of entry for activities, tasks, and news
n Universal Worklist
n Employee directory
n E-mail transfer to CRM system
You cannot implement the CRM User role alone. You always have to combine it with other roles. To
implement the CRM User role, you have to install the following software units:
n CRM 5.0 Server (ABAP)
n SAP NetWeaver 2004s Enterprise Portal
n Business Package CRM 5.0
n SAP NetWeaver 2004s Search and Classification (TREX) (required for Knowledge Management
document search and the Top News iViews)
Workforce Deployment
From a technical perspective, different software units are involved in Workforce Deployment. The
scenarios that include Workforce Deployment do not always require all of these software units: Some
are only optional and some are not required at all for certain process variants. For more information,
see the scenario-specific sections of this documentation. The following software units are used in
the area of Workforce Deployment:
n WFM Core 200 Add-On: You have to install this add-on on the CRM Server ABAP server by using
the SAP Add-On Installation Tool (SAINT). For more information, see SAP Note 830595
A prerequisite for the installation of WFM Core 200 is the LCAPPS_2005_700 add-on. For more
information, see SAP Note 836414.
n SAP NetWeaver 2004s liveCache (SAP LC/LCAPPS 50)
SAP liveCache is a database engine for managing complex objects in scenarios where large volumes
of data must be permanently available and modifiable. SAP liveCache is installed by using SAPinst.
Figure 6: Workforce Deployment in CRM scenarios, for example Channel Management and Case Management. For the other scenarios it is an
installation option. For more information, see the scenario-specific sections. The People-Centric User
Interface offers an easy, task and process-oriented access to CRM functionality. To ensure this, it has a
tailored range of possible interactions with the applications. Using SAP GUI, you can access the full
scope of functionality of an SAP transaction.
To set up the People-Centric UI, the following software units are required:
n SAP NetWeaver 2004s Enterprise Portal which includes Knowledge Management
n Business Package for SAP CRM 5.0
SAP NW Enterprise Portal and the Business Package for SAP CRM 5.0 are installed by SAPinst in a
common installation run. To install further, industry-specific Business Packages, use the Java Support
Package Manager (JSPM).
n Portal: Offers a single point of access in a Web-based interface to SAP and non-SAP information
sources, enterprise applications, information repositories, databases and services across
organizational and technical boundaries ? all integrated into a single user experience.
n Knowledge Management (KM): Enables portal users to distribute, access, and manage unstructured
information within an organization through a heterogeneous repository landscape.
n Collaboration: Brings users, information, and applications together to ensure successful cooperation
and interaction in the portal
n Guided Procedures (GP): A framework for modeling and managing processes that involve access to
multiple backend systems.
scenarios that include Workforce Deployment do not always require all of these software units: Some
are only optional and some are not required at all for certain process variants. For more information,
see the scenario-specific sections of this documentation. The following software units are used in
the area of Workforce Deployment:
n WFM Core 200 Add-On: You have to install this add-on on the CRM Server ABAP server by using
the SAP Add-On Installation Tool (SAINT). For more information, see SAP Note 830595
A prerequisite for the installation of WFM Core 200 is the LCAPPS_2005_700 add-on. For more
information, see SAP Note 836414.
n SAP NetWeaver 2004s liveCache (SAP LC/LCAPPS 50)
SAP liveCache is a database engine for managing complex objects in scenarios where large volumes
of data must be permanently available and modifiable. SAP liveCache is installed by using SAPinst.
Figure 6: Workforce Deployment in CRM scenarios, for example Channel Management and Case Management. For the other scenarios it is an
installation option. For more information, see the scenario-specific sections. The People-Centric User
Interface offers an easy, task and process-oriented access to CRM functionality. To ensure this, it has a
tailored range of possible interactions with the applications. Using SAP GUI, you can access the full
scope of functionality of an SAP transaction.
To set up the People-Centric UI, the following software units are required:
n SAP NetWeaver 2004s Enterprise Portal which includes Knowledge Management
n Business Package for SAP CRM 5.0
SAP NW Enterprise Portal and the Business Package for SAP CRM 5.0 are installed by SAPinst in a
common installation run. To install further, industry-specific Business Packages, use the Java Support
Package Manager (JSPM).
n Portal: Offers a single point of access in a Web-based interface to SAP and non-SAP information
sources, enterprise applications, information repositories, databases and services across
organizational and technical boundaries ? all integrated into a single user experience.
n Knowledge Management (KM): Enables portal users to distribute, access, and manage unstructured
information within an organization through a heterogeneous repository landscape.
n Collaboration: Brings users, information, and applications together to ensure successful cooperation
and interaction in the portal
n Guided Procedures (GP): A framework for modeling and managing processes that involve access to
multiple backend systems.
CRM Handheld Integration
You can integrate different handheld devices with mySAP CRM, such as PDAs (Personal Digital
Assistant), PocketPCs and RIM Blackberry.
CRM Mobile Sales for Handheld (MSA for HH)
CRM handheld scenarios provide sales employees with the ability to keep track of their assignments
better as well as tackle sales related situations proficiently by using handheld devices. It allows
them to work outside the office and grants them wireless access to the application either by online
connection or by using synchronization when in the offline mode. Additionally, users' saved data
becomes available to the entire CRM. The CRM handheld scenarios utilize the business logic that
resides at the CRM server side. All read and written assignments and time specifications are consistent
with the CRM system and hence there is no risk of discrepancies between behavior and end results of
such operations.
The CRM handheld scenarios support PDA (Personal Digital Assistant)-type devices, including
devices such as the PocketPC.
The Mobile Infrastructure enables field personnel to participate in a business process in an occasionally
connected mode. "Occasionally connected" means that a direct connection (via WLAN, GPRS)
between mobile device and backend is only established at certain times - at synchronization, when
the Mobile Infrastructure Server (as part of the NetWeaver Server) and the Mobile Infrastructure
Client exchanges data in order to keep server and client updated.
18/
Assistant), PocketPCs and RIM Blackberry.
CRM Mobile Sales for Handheld (MSA for HH)
CRM handheld scenarios provide sales employees with the ability to keep track of their assignments
better as well as tackle sales related situations proficiently by using handheld devices. It allows
them to work outside the office and grants them wireless access to the application either by online
connection or by using synchronization when in the offline mode. Additionally, users' saved data
becomes available to the entire CRM. The CRM handheld scenarios utilize the business logic that
resides at the CRM server side. All read and written assignments and time specifications are consistent
with the CRM system and hence there is no risk of discrepancies between behavior and end results of
such operations.
The CRM handheld scenarios support PDA (Personal Digital Assistant)-type devices, including
devices such as the PocketPC.
The Mobile Infrastructure enables field personnel to participate in a business process in an occasionally
connected mode. "Occasionally connected" means that a direct connection (via WLAN, GPRS)
between mobile device and backend is only established at certain times - at synchronization, when
the Mobile Infrastructure Server (as part of the NetWeaver Server) and the Mobile Infrastructure
Client exchanges data in order to keep server and client updated.
18/
CRM Mobile Client Component
This group consists of a range of components that enable you to use marketing, sales, and service
functionality in an offline environment. Most of the components are based on Microsoft .NET
technology, some use Microsoft Component Object Model (COM) technology. Microsoft Installers
are used for the installation.
The installation of Mobile Client Components requires certain .NET installations. For more
information, see SAP Note 879643.
You must install the software described below to different machines that make up the mobile system
landscape. There are the following machines:
n Mobile Repository Server
Server designated for the central Mobile Application Repository and test application database.
n Mobile Development Workstation
Server, PC, or laptop designated for customizing and designing the Mobile Client Component:
Applications and for assigning user access definitions and templates, if required, for using the Mobile
Client Component: Application(s).
n Mobile Client
Server, PC, or laptop that sales and service people use for their work.
n Workgroup Server
Server designated for storing the central database to which the Workgroup Clients connect. The
server is connected to the CRM Server via the Communication Station.
n Workgroup Client
PC or laptop that connects to the Workgroup Server to use the same database concurrently.
For a complete landscape, a Communication Station, a backend server (for example, a SAP ECC
system) and a CRM Server are also required.
The following figure provides an overview of the machines in a mobile system landscape:
Mobile Client
Field Sales users have special mobile client software and an Internet Pricing and Configurator (IPC )
on their laptops, which enables them to work offline. CRM IPC Sales Pricing Engine (IPC-SPE) and
CRM IPC Sales Configuration Engine (IPC-SCE) are Java applications that are integrated with each
other and installed on the laptop. IPC-SCE and IPC-SPE have their own MS SQL Server database. They
are automatically installed during the CRM Mobile Client setup.
The Mobile Client applications run on an MS SQL database or MS Data Engine. They comprise Mobile
Sales High Tech (standard), Mobile Sales Consumer Goods, Mobile Sales Pharma and Mobile Service.
Note
Due to synchronization issues you cannot use groupware integration between the CRM Server and
the groupware server, at the same time as using client synchronization between CRM Mobile and
groupware. You can only choose one of these integration possibilities.
Mobile Application Studio
The Mobile Application Studio (MAS) must be installed on the Mobile Development Workstation. It
is an object-oriented, visual development tool that is tailored to the architecture of SAP mobile client
applications. It allows you to customize mobile client applications, delivered by SAP, according to
your specific business requirements, or develop your own applications.
Mobile Application Repository
The metadata of a mobile client application is delivered as the Mobile Application Repository (MAR).
This repository must be installed on the Mobile Repository Server (MRS) for each environment.
functionality in an offline environment. Most of the components are based on Microsoft .NET
technology, some use Microsoft Component Object Model (COM) technology. Microsoft Installers
are used for the installation.
The installation of Mobile Client Components requires certain .NET installations. For more
information, see SAP Note 879643.
You must install the software described below to different machines that make up the mobile system
landscape. There are the following machines:
n Mobile Repository Server
Server designated for the central Mobile Application Repository and test application database.
n Mobile Development Workstation
Server, PC, or laptop designated for customizing and designing the Mobile Client Component:
Applications and for assigning user access definitions and templates, if required, for using the Mobile
Client Component: Application(s).
n Mobile Client
Server, PC, or laptop that sales and service people use for their work.
n Workgroup Server
Server designated for storing the central database to which the Workgroup Clients connect. The
server is connected to the CRM Server via the Communication Station.
n Workgroup Client
PC or laptop that connects to the Workgroup Server to use the same database concurrently.
For a complete landscape, a Communication Station, a backend server (for example, a SAP ECC
system) and a CRM Server are also required.
The following figure provides an overview of the machines in a mobile system landscape:
Mobile Client
Field Sales users have special mobile client software and an Internet Pricing and Configurator (IPC )
on their laptops, which enables them to work offline. CRM IPC Sales Pricing Engine (IPC-SPE) and
CRM IPC Sales Configuration Engine (IPC-SCE) are Java applications that are integrated with each
other and installed on the laptop. IPC-SCE and IPC-SPE have their own MS SQL Server database. They
are automatically installed during the CRM Mobile Client setup.
The Mobile Client applications run on an MS SQL database or MS Data Engine. They comprise Mobile
Sales High Tech (standard), Mobile Sales Consumer Goods, Mobile Sales Pharma and Mobile Service.
Note
Due to synchronization issues you cannot use groupware integration between the CRM Server and
the groupware server, at the same time as using client synchronization between CRM Mobile and
groupware. You can only choose one of these integration possibilities.
Mobile Application Studio
The Mobile Application Studio (MAS) must be installed on the Mobile Development Workstation. It
is an object-oriented, visual development tool that is tailored to the architecture of SAP mobile client
applications. It allows you to customize mobile client applications, delivered by SAP, according to
your specific business requirements, or develop your own applications.
Mobile Application Repository
The metadata of a mobile client application is delivered as the Mobile Application Repository (MAR).
This repository must be installed on the Mobile Repository Server (MRS) for each environment.
Installable Software Units of mySAP CRM 2005
The software unit CRM Java Components (short form JCRM) consists of several Java applications,
for example used in E-Commerce. After JCRM installation you have to perform configuration steps
for those processes that you want to use in your CRM landscape.
As of SAP CRM 5.0, the CRM Server ABAP includes the software layer SAP Application Platform
(SAP_AP). In SAP_AP the previously separate Internet Pricing and Configurator (IPC) server
functionality has been integrated. That is, for example for pricing, you no longer have to install an
IPC server separately, because it is processed on normal application servers. In order to use product
configuration, you need to install the JCRM software unit. To be able to use the IPC functions, you
have to perform the necessary configuration steps.
The installation program SAPinst can install the CRM Server ABAP, CRM Java Components and the
underlying SAP NetWeaver Application Server in a single installation run. CRM Server ABAP and
JCRM can run in one system using the same database. You can also install the CRM Server ABAP
and CRM Java CompThis version of SAP GUI runs on PCs with Windows 2000, XP and 2003. SAP GUI for windows is
an implementation especially designed for the Windows operating system, providing a Windows
like user experience and integration with other applications, based on OLE interfaces or ActiveX
controls. In addition to the standard functionalities delivered with SAP GUI, it also provides tight
integration with Microsoft Office and application-specific extensions.
n SAP GUI for the Java Environment (SAP GUI for Java)
This version is a unified SAP frontend for multiple platforms (Mac OS X, Windows, Linux and
various other Unixes). It is installed as an application on the desktop computer (or browser based
installation) and communicates directly with the SAP NetWeaver Application Server.
We recommend that you use:
n SAP GUI for Windows 6.40 (or higher) with the latest patch level
SAP GUI for Windows 6.20 (as of patchlevel 57) is compatible with SAP CRM 5.0 as well.
n SAP GUI for Java 6.40 (or higher) with the latest revision
If you require BI Add-On or KW Add-On comprised by SAP GUI, you need SAP GUI for Windows
6.40 Compilation 4 (or higher), since the new BI and KW add-on components are only available
as of this compilation CDonents in separate systems.
Frontend
for example used in E-Commerce. After JCRM installation you have to perform configuration steps
for those processes that you want to use in your CRM landscape.
As of SAP CRM 5.0, the CRM Server ABAP includes the software layer SAP Application Platform
(SAP_AP). In SAP_AP the previously separate Internet Pricing and Configurator (IPC) server
functionality has been integrated. That is, for example for pricing, you no longer have to install an
IPC server separately, because it is processed on normal application servers. In order to use product
configuration, you need to install the JCRM software unit. To be able to use the IPC functions, you
have to perform the necessary configuration steps.
The installation program SAPinst can install the CRM Server ABAP, CRM Java Components and the
underlying SAP NetWeaver Application Server in a single installation run. CRM Server ABAP and
JCRM can run in one system using the same database. You can also install the CRM Server ABAP
and CRM Java CompThis version of SAP GUI runs on PCs with Windows 2000, XP and 2003. SAP GUI for windows is
an implementation especially designed for the Windows operating system, providing a Windows
like user experience and integration with other applications, based on OLE interfaces or ActiveX
controls. In addition to the standard functionalities delivered with SAP GUI, it also provides tight
integration with Microsoft Office and application-specific extensions.
n SAP GUI for the Java Environment (SAP GUI for Java)
This version is a unified SAP frontend for multiple platforms (Mac OS X, Windows, Linux and
various other Unixes). It is installed as an application on the desktop computer (or browser based
installation) and communicates directly with the SAP NetWeaver Application Server.
We recommend that you use:
n SAP GUI for Windows 6.40 (or higher) with the latest patch level
SAP GUI for Windows 6.20 (as of patchlevel 57) is compatible with SAP CRM 5.0 as well.
n SAP GUI for Java 6.40 (or higher) with the latest revision
If you require BI Add-On or KW Add-On comprised by SAP GUI, you need SAP GUI for Windows
6.40 Compilation 4 (or higher), since the new BI and KW add-on components are only available
as of this compilation CDonents in separate systems.
Frontend
Introduction to mySAP CRM
mySAP Customer Relationship Management (mySAP CRM) is a complete multi-channel suite
supporting all customer-facing lines of business across marketing, sales, and service, as well as
customer interaction channels such as the Interaction Center, the Internet, and mobile clients.
It provides you with:
n Cross-industry and industry-specific end-to-end Business Processes
n Flexible and process-based deployment options
n An open, adaptable technology platform, powered by SAP NetWeaver
At the center of mySAP CRM is the SAP CRM server, which consists of CRM Enterprise functions,
CRM Middleware, and various adapters. mySAP CRM enables communication channels between the
CRM system and Mobile Clients, Handhelds, the Internet, and telephones or E-mail. SAP ECC or R/3
systems can be used as backend systems, whereas Business Intelligence (BI) in SAP NetWeaver and SAP
Supply Chain Management enhance the spectrum of functions.
The business scenarios that are presented here serve as examples of how you can use SAP software
in your company. The business scenarios are only intended as models and do not necessarily run
the way they are described here in your customer-specific system landscape. Ensure to check your
requirements and systems to determine whether these scenarios can be used productively at your
site. Furthermore, we recommend that you test these scenarios thoroughly in your test systems to
ensure they are complete and free of errors before going live.
n This document does not contain information about industry scenarios. For information about
industry scenarios, see the corresponding Industry Solution Master Guide. You can find a list of Industry
Solution Master Guides in Appendix
supporting all customer-facing lines of business across marketing, sales, and service, as well as
customer interaction channels such as the Interaction Center, the Internet, and mobile clients.
It provides you with:
n Cross-industry and industry-specific end-to-end Business Processes
n Flexible and process-based deployment options
n An open, adaptable technology platform, powered by SAP NetWeaver
At the center of mySAP CRM is the SAP CRM server, which consists of CRM Enterprise functions,
CRM Middleware, and various adapters. mySAP CRM enables communication channels between the
CRM system and Mobile Clients, Handhelds, the Internet, and telephones or E-mail. SAP ECC or R/3
systems can be used as backend systems, whereas Business Intelligence (BI) in SAP NetWeaver and SAP
Supply Chain Management enhance the spectrum of functions.
The business scenarios that are presented here serve as examples of how you can use SAP software
in your company. The business scenarios are only intended as models and do not necessarily run
the way they are described here in your customer-specific system landscape. Ensure to check your
requirements and systems to determine whether these scenarios can be used productively at your
site. Furthermore, we recommend that you test these scenarios thoroughly in your test systems to
ensure they are complete and free of errors before going live.
n This document does not contain information about industry scenarios. For information about
industry scenarios, see the corresponding Industry Solution Master Guide. You can find a list of Industry
Solution Master Guides in Appendix
Resources,.Strategic.Alliances,.and.Value.Networks
Resources have been considered in a range of different literatures, and they play a particularly
central role in the resource-based view (RBV) of the firm and in the resource-dependence
literature. More recently, links have been established between the RBV literature and the role
of resources in strategic alliances (Erasmus, 2004; Das & Teng, 2000). We consult these to
arrive at a definition (classification scheme) of resources for our analysis of interdependencies
in value networks of mobile information and entertainment services.
The focus of the resource-based view (RBV) is the resources possessed by the firm. The
RBV stresses value maximisation through the integration of resources. Successful firms
are those firms that are able to acquire and maintain valuable idiosyncratic resources for
competitive advantages (Oliver, 1997).
The resource-based view has been applied mainly to the individual firm to analyse various
resources possessed by the firm but increasingly also in strategy research. Recently, the resource-
based view has also been linked to a network perspective, specifically by considering
the resource-based view in the context of strategic alliances (see, for example, a review of
studies by Das & Teng, 2000):
The application of the resource-based view to research on strategic alliances provides the
link with value network research in focus here. Strategic alliances can be regarded as a
category of inter-organisational relations and networks. The common premise is that it is
precisely the complementarity of resources that necessitates the formation and evolution
of both, strategic alliances and value networks, and that none of the actors can make all theA resource-based perspective of the actors therefore provides a relevant basis to examine
interdependence in the value network. From a resource-based perspective, paraphrasing
Das and Teng (1998) on strategic alliances, value networks are about combining resources
that an individual firm cannot provide all on its own, yet are critical for the provision of a
mobile service
necessary components available for product development or service provis
central role in the resource-based view (RBV) of the firm and in the resource-dependence
literature. More recently, links have been established between the RBV literature and the role
of resources in strategic alliances (Erasmus, 2004; Das & Teng, 2000). We consult these to
arrive at a definition (classification scheme) of resources for our analysis of interdependencies
in value networks of mobile information and entertainment services.
The focus of the resource-based view (RBV) is the resources possessed by the firm. The
RBV stresses value maximisation through the integration of resources. Successful firms
are those firms that are able to acquire and maintain valuable idiosyncratic resources for
competitive advantages (Oliver, 1997).
The resource-based view has been applied mainly to the individual firm to analyse various
resources possessed by the firm but increasingly also in strategy research. Recently, the resource-
based view has also been linked to a network perspective, specifically by considering
the resource-based view in the context of strategic alliances (see, for example, a review of
studies by Das & Teng, 2000):
The application of the resource-based view to research on strategic alliances provides the
link with value network research in focus here. Strategic alliances can be regarded as a
category of inter-organisational relations and networks. The common premise is that it is
precisely the complementarity of resources that necessitates the formation and evolution
of both, strategic alliances and value networks, and that none of the actors can make all theA resource-based perspective of the actors therefore provides a relevant basis to examine
interdependence in the value network. From a resource-based perspective, paraphrasing
Das and Teng (1998) on strategic alliances, value networks are about combining resources
that an individual firm cannot provide all on its own, yet are critical for the provision of a
mobile service
necessary components available for product development or service provis
Mobile.Information.and.Entertainment.Services
The mobile services discussed in this research are limited to mobile information and entertainment
services. As depicted in Figure 1, mobile information and entertainment services
(category 2) are a subset of the broader category of mobile services (category 1), which are
simply services made available to mobile users independent of the type of network (GPS,
public switched mobile network, etc.). As defined here, mobile information and entertainment
services require a connection to a network, which is in turn connected to the Internet.
Currently, the dominant mode of access is through the mobile telecommunications network
infrastructure connected to the fixed public switched network.
We define �mobile information and entertainment services� as the delivery of information
and entertainment from specially formatted content sources (e.g., Internet sites, SMS, MMS)
via the mobile telecommunication network to a mobile user. The terms �value added services
in mobile commerce� and �mobile information and entertainment services� are often used synonymously. What is important is that parties other than the network operator are involved
to make the service available to customers.
In this research we also consider information and entertainment services that are based on
location information. The use of location information has the potential to enable a whole
range of new services and requires the involvement of a new kind of actor such as geographical
information system (GIS) suppliers. In general location-based services can be offered
through the mobile telecommunications network (category 3), independent of this network
(4), and also in a fixed environment (5). Of interest to this research are services offered in
the domain of category 2 (mobile information and entertainment services) and category 3
(location-based mobile services) offered over the mobile telecommunications network
services. As depicted in Figure 1, mobile information and entertainment services
(category 2) are a subset of the broader category of mobile services (category 1), which are
simply services made available to mobile users independent of the type of network (GPS,
public switched mobile network, etc.). As defined here, mobile information and entertainment
services require a connection to a network, which is in turn connected to the Internet.
Currently, the dominant mode of access is through the mobile telecommunications network
infrastructure connected to the fixed public switched network.
We define �mobile information and entertainment services� as the delivery of information
and entertainment from specially formatted content sources (e.g., Internet sites, SMS, MMS)
via the mobile telecommunication network to a mobile user. The terms �value added services
in mobile commerce� and �mobile information and entertainment services� are often used synonymously. What is important is that parties other than the network operator are involved
to make the service available to customers.
In this research we also consider information and entertainment services that are based on
location information. The use of location information has the potential to enable a whole
range of new services and requires the involvement of a new kind of actor such as geographical
information system (GIS) suppliers. In general location-based services can be offered
through the mobile telecommunications network (category 3), independent of this network
(4), and also in a fixed environment (5). Of interest to this research are services offered in
the domain of category 2 (mobile information and entertainment services) and category 3
(location-based mobile services) offered over the mobile telecommunications network
Interdependencies.in.Value Networks.for.Mobile.Services
The advent of new electronic platforms is forcing firms from a range of industries to come
together in so-called �value networks� for the provision of innovative mobile services. Yet
the rapid evolution of mobile services has left many issues unresolved. The problems of
interest to us include uncertainty with respect to the complex networks that are involved in
delivering these services. In environments of increasing electronic interaction, the value chain
concept, where materials are moved sequentially down a supply chain, has been replaced
by the value network, which is a dynamic network of partnerships and information flows
(Bovel & Martha, 2000), changing as customer preferences change. This phenomenon is also
taking place in the telecommunications industry (Li & Whalley, 2002; Maitland, Bauer, &
Westerveld, 2002; Sabat, 2002). We aim to understand the interdependencies among actors
involved in delivering mobile services in general, and mobile information and entertainment
services and location-based services in particular in terms of their contribution to value
creation. To this end, we adopt a resource-based perspective.
We consider a number of innovative cases of mobile information and entertainment services.
Such services involve the delivery of information and entertainment content to a
mobile user. Since these services typically require collaboration of a range of actors across
different sectors, our analysis encompasses the entire �value network� of firms involved in
making the service available. Whilst research on value networks for mobile services could
be approached from several angles, including network formation, strategic management,
and so forth, here we focus on resources and interdependencies. We investigate the actual
constellation of actors: what are their resources, how are they interdependent, and what do
they contribute to the value network? Is content really king?
The chapter is structured as follows. We begin with a brief review of relevant literature to
provide a basis for our analysis of several mobile information and entertainment services. In
particular, we examine the interdependencies among actors in the value networks and how
their contribution to value creation determines their strategic position within the network.
These tools are then used to analyse each of the five case studies of specific services. In the
cross-case analysis, we collate and discuss the findings from the cases, paying particular
attention to the role of content and the position of content providers. We conclude with the
implications of our research for the literature on value networks and point to further areas
of research.
together in so-called �value networks� for the provision of innovative mobile services. Yet
the rapid evolution of mobile services has left many issues unresolved. The problems of
interest to us include uncertainty with respect to the complex networks that are involved in
delivering these services. In environments of increasing electronic interaction, the value chain
concept, where materials are moved sequentially down a supply chain, has been replaced
by the value network, which is a dynamic network of partnerships and information flows
(Bovel & Martha, 2000), changing as customer preferences change. This phenomenon is also
taking place in the telecommunications industry (Li & Whalley, 2002; Maitland, Bauer, &
Westerveld, 2002; Sabat, 2002). We aim to understand the interdependencies among actors
involved in delivering mobile services in general, and mobile information and entertainment
services and location-based services in particular in terms of their contribution to value
creation. To this end, we adopt a resource-based perspective.
We consider a number of innovative cases of mobile information and entertainment services.
Such services involve the delivery of information and entertainment content to a
mobile user. Since these services typically require collaboration of a range of actors across
different sectors, our analysis encompasses the entire �value network� of firms involved in
making the service available. Whilst research on value networks for mobile services could
be approached from several angles, including network formation, strategic management,
and so forth, here we focus on resources and interdependencies. We investigate the actual
constellation of actors: what are their resources, how are they interdependent, and what do
they contribute to the value network? Is content really king?
The chapter is structured as follows. We begin with a brief review of relevant literature to
provide a basis for our analysis of several mobile information and entertainment services. In
particular, we examine the interdependencies among actors in the value networks and how
their contribution to value creation determines their strategic position within the network.
These tools are then used to analyse each of the five case studies of specific services. In the
cross-case analysis, we collate and discuss the findings from the cases, paying particular
attention to the role of content and the position of content providers. We conclude with the
implications of our research for the literature on value networks and point to further areas
of research.
Path.to.Successful.Implementation.in.Small.and Large.Firms
There may be a giant step from initiation and adoption of innovations to successful implementation
of them. In particular, an Internet-based marketing channel may imply difficult
changes in internaThus, we were interested in the characteristics of those organizations reporting successful
implementation of interactive technology.
The correlations found in this explorative part of the analysis indicate that the explanations
for success or failure in implementation differ from the explanations for success or failure in
initiation and adoption. Willingness to cannibalize seems to be a less-important driverl procedures before interactive features make it useful to customer
These findings as well as findings from a related study of Internet banking indicate that
the adoption and implementation of Web technologies are complex processes that can be
understood as both technology push and demand pull processes, and they are subject to
disagreement (Flohr Nielsen, 2006). Conflicts grow out of structural differentiation or specialization
and are found at the inter-organizational, inter-departmental, and interpersonal
levels. Differences in the willingness to cannibalize do not necessarily develop into manifest
conflict, but opinions often differ between key people such as IT and marketing managers.
Thus, when identifying a firm�s willingness to cannibalize as an important antecedent
to early adoption and implementation of Internet-based marketing channels and Internet
banking, it must be understood that such willingness reflects an overall attitude that results
either from compromise between key actors� different attitudes or from the defeat of one
or more actors.
From an organizational change view this seems to have important implications for practitioners.
In planned change processes it has to be taken into account how conflicts are handled.
Often it may become necessary to include participative organizational development techniques
as well as conflict-handling interventions. When implementation success seems to
be very dependent on top management support, it is in line with a recent meta-analysis of
information systems implementation (Sharma & Yetton, 2003). This study shows that task
interdependence moderates the effect of management support on implementation success.
Since the activities connected to sophisticated marketing channels are highly interdependent
and cross-functional, it is important that management provides the resources and incentives
necessary to accomplish these projects.
However, the capability of organizations to fully exploit their current investments in installed
IT is generally an issue involving complex post-adoptive behaviors, and neither
prior use, habit, nor feature-centric views have been fully addressed in previous research
(Jasperson, Carter, & Zmud, 2005). Because of such deficiencies we can only cautiously
suggest that the successful implementation and use of Internet-based marketing may also
need interventions that induce members of the organization to engage in learning on these
IT-enabled work systems.
of them. In particular, an Internet-based marketing channel may imply difficult
changes in internaThus, we were interested in the characteristics of those organizations reporting successful
implementation of interactive technology.
The correlations found in this explorative part of the analysis indicate that the explanations
for success or failure in implementation differ from the explanations for success or failure in
initiation and adoption. Willingness to cannibalize seems to be a less-important driverl procedures before interactive features make it useful to customer
These findings as well as findings from a related study of Internet banking indicate that
the adoption and implementation of Web technologies are complex processes that can be
understood as both technology push and demand pull processes, and they are subject to
disagreement (Flohr Nielsen, 2006). Conflicts grow out of structural differentiation or specialization
and are found at the inter-organizational, inter-departmental, and interpersonal
levels. Differences in the willingness to cannibalize do not necessarily develop into manifest
conflict, but opinions often differ between key people such as IT and marketing managers.
Thus, when identifying a firm�s willingness to cannibalize as an important antecedent
to early adoption and implementation of Internet-based marketing channels and Internet
banking, it must be understood that such willingness reflects an overall attitude that results
either from compromise between key actors� different attitudes or from the defeat of one
or more actors.
From an organizational change view this seems to have important implications for practitioners.
In planned change processes it has to be taken into account how conflicts are handled.
Often it may become necessary to include participative organizational development techniques
as well as conflict-handling interventions. When implementation success seems to
be very dependent on top management support, it is in line with a recent meta-analysis of
information systems implementation (Sharma & Yetton, 2003). This study shows that task
interdependence moderates the effect of management support on implementation success.
Since the activities connected to sophisticated marketing channels are highly interdependent
and cross-functional, it is important that management provides the resources and incentives
necessary to accomplish these projects.
However, the capability of organizations to fully exploit their current investments in installed
IT is generally an issue involving complex post-adoptive behaviors, and neither
prior use, habit, nor feature-centric views have been fully addressed in previous research
(Jasperson, Carter, & Zmud, 2005). Because of such deficiencies we can only cautiously
suggest that the successful implementation and use of Internet-based marketing may also
need interventions that induce members of the organization to engage in learning on these
IT-enabled work systems.
Ownership.of.Technological.Innovation
Successful implementation of a strategy depends on employee commitment (Noble & Mokwa,
1999). Specific commitment to a strategy or an innovation is almost synonymous with the
concept of ownership (Argyris & Kaplan, 1994), or with the concept of user involvement
as used in information-systems literature (Barki & Hartwick, 1994). User involvement is
seen as the individual user�s understanding of the importance, for instance, of an information-
system project, and may in turn be established through user participation (Barki &
Hartwick, 1994; Ives & Olson, 1984).
Whenever achieved, the inherent feeling of ownership may not merely help in overcoming
resistance to change; rather, �owners� may play innovating roles themselves. Some may
even become "champions" of technological innovation, by acting as informal transformational
leaders contributing to the innovation by actively and enthusiastically promoting its
progress (Howell & Higgins, 1990). In information-systems projects users now often take
the lead because widespread decentralization has made information technology a powerful
business tool in the hands of end-users, including those who are responsible for satisfying
customers (Martinson & Chong, 1999).
Though intuitively compelling, the impact on performance of ownership, specific commitment,
and user involvement has not been well documented. The reported positive results
are often insignificant, and the literature on commitment still makes little comment on the
motivational impact of specific commitment (Becker, Billings, Eveleth, & Gilbert, 1996).
Even the reported positive impact of user involvement on information-system projects may
be questioned because of methodological problems (Ives & Olson, 1984).
In this chapter, "ownership" means employee commitment to the Internet project; ownership
is not limited to isolated individuals but may include all the employees working in a firm or
on a certain project. It is assumed that a strong feeling of ownership of an Internet project
will generally stand in opposition to any personal loyalty to existing marketing channels.
The effect of ownership on the adoption of Internet-based interaction with customers may
be mediated by the willingness to cannibalize. There may, however, also be a direct effect
because innovation is not always expected to cannibalize existing investments or because
the cannibalization effect is unimportant.
H4: The stronger the ownership feeling toward the Internet projects in a company, the
greater the company�s willingness to cannibalize.
H5: The stronger the ownership feeling toward the Internet projects in a company, the
more likely the company is to adopt Internet-based interaction with its customers
1999). Specific commitment to a strategy or an innovation is almost synonymous with the
concept of ownership (Argyris & Kaplan, 1994), or with the concept of user involvement
as used in information-systems literature (Barki & Hartwick, 1994). User involvement is
seen as the individual user�s understanding of the importance, for instance, of an information-
system project, and may in turn be established through user participation (Barki &
Hartwick, 1994; Ives & Olson, 1984).
Whenever achieved, the inherent feeling of ownership may not merely help in overcoming
resistance to change; rather, �owners� may play innovating roles themselves. Some may
even become "champions" of technological innovation, by acting as informal transformational
leaders contributing to the innovation by actively and enthusiastically promoting its
progress (Howell & Higgins, 1990). In information-systems projects users now often take
the lead because widespread decentralization has made information technology a powerful
business tool in the hands of end-users, including those who are responsible for satisfying
customers (Martinson & Chong, 1999).
Though intuitively compelling, the impact on performance of ownership, specific commitment,
and user involvement has not been well documented. The reported positive results
are often insignificant, and the literature on commitment still makes little comment on the
motivational impact of specific commitment (Becker, Billings, Eveleth, & Gilbert, 1996).
Even the reported positive impact of user involvement on information-system projects may
be questioned because of methodological problems (Ives & Olson, 1984).
In this chapter, "ownership" means employee commitment to the Internet project; ownership
is not limited to isolated individuals but may include all the employees working in a firm or
on a certain project. It is assumed that a strong feeling of ownership of an Internet project
will generally stand in opposition to any personal loyalty to existing marketing channels.
The effect of ownership on the adoption of Internet-based interaction with customers may
be mediated by the willingness to cannibalize. There may, however, also be a direct effect
because innovation is not always expected to cannibalize existing investments or because
the cannibalization effect is unimportant.
H4: The stronger the ownership feeling toward the Internet projects in a company, the
greater the company�s willingness to cannibalize.
H5: The stronger the ownership feeling toward the Internet projects in a company, the
more likely the company is to adopt Internet-based interaction with its customers
E-Business Strategies and Consumer Behavior Model
It is now conventional wisdom that both customers and manufacturers have strong incentives
to use Internet-based marketing channels (Alba et al., 1997; O�Cass & Fenech, 2003). It has
been argued that the Internet is changing the structure of marketing channels, especially in
industries such as retail banking, news media, and music, where an important part of the
output is in digital.form (Mols, Bukh, & Flohr Nielsen, 1999). However even many small
and medium-sized manufacturers have adopted and implemented Internet-based marketing
channels, though great differences can be observed in how these firms have actually gone
about this.
This chapter examines possible explanations of the adoption and implementation. Some of
the drivers of such radical innovations have been identified in previous research. Notably
willingness to cannibalize (Chandy & Tellis, 1998) and recent findings in the U.S. stress the
importance of the sense-and-respond capabilities of firms in e-business (Srinivasan, Lilien,
& Rangaswarny, 2002). As our study is based on a large European sample including several
small and medium-sized manufacturers, the intention is to allow more rigorous analyses using
structural equation modelling and trace how size may influence the models of adoption.
In continuation, the path to successful implementation is explored.
First, the chapter briefly reviews the literature on changes in marketing channels and on
organizational innovation. Then it proposes a basic research model for examining the adoption
of new channels, and the model and its 11 hypotheses are explained in detail. After
describing the methodology, we present the results of our survey of Nordic manufacturers,
stressing the role of willingness to cannibalize. Finally, the results and the theoretical and
managerial implications are discussed.
Internet-based marketing channels may radically interfere with the work and communication
connected with getting products and services from producer to consumer. However
the literature on marketing channels stresses that distribution systems are usually rigid and
stable because of persistent inertia. Firms wanting to convert from one type of marketing
channel to another often face resistance, conflict, and customer confusion (Anderson, Day,
& Rangan, 1997; Weiss & Anderson, 1992). Thus, Stern and Sturdivant (1987) contend that
of all marketing decisions facing firms, those that concern the design of distribution systems
are the most far reaching, resource demanding, and time consuming. The right investments in
distribution channels have traditionally provided long-term protection against competition,
and few researchers have been concerned with proposing strategic design principles focussing
on the dynamics of marketing channels or on feedback mechanisms that continually
monitor the design of distribution channels (for an exception, see Anderson et al., 1997).
The economic approach to analyzing marketing channels has been concerned with under
to use Internet-based marketing channels (Alba et al., 1997; O�Cass & Fenech, 2003). It has
been argued that the Internet is changing the structure of marketing channels, especially in
industries such as retail banking, news media, and music, where an important part of the
output is in digital.form (Mols, Bukh, & Flohr Nielsen, 1999). However even many small
and medium-sized manufacturers have adopted and implemented Internet-based marketing
channels, though great differences can be observed in how these firms have actually gone
about this.
This chapter examines possible explanations of the adoption and implementation. Some of
the drivers of such radical innovations have been identified in previous research. Notably
willingness to cannibalize (Chandy & Tellis, 1998) and recent findings in the U.S. stress the
importance of the sense-and-respond capabilities of firms in e-business (Srinivasan, Lilien,
& Rangaswarny, 2002). As our study is based on a large European sample including several
small and medium-sized manufacturers, the intention is to allow more rigorous analyses using
structural equation modelling and trace how size may influence the models of adoption.
In continuation, the path to successful implementation is explored.
First, the chapter briefly reviews the literature on changes in marketing channels and on
organizational innovation. Then it proposes a basic research model for examining the adoption
of new channels, and the model and its 11 hypotheses are explained in detail. After
describing the methodology, we present the results of our survey of Nordic manufacturers,
stressing the role of willingness to cannibalize. Finally, the results and the theoretical and
managerial implications are discussed.
Internet-based marketing channels may radically interfere with the work and communication
connected with getting products and services from producer to consumer. However
the literature on marketing channels stresses that distribution systems are usually rigid and
stable because of persistent inertia. Firms wanting to convert from one type of marketing
channel to another often face resistance, conflict, and customer confusion (Anderson, Day,
& Rangan, 1997; Weiss & Anderson, 1992). Thus, Stern and Sturdivant (1987) contend that
of all marketing decisions facing firms, those that concern the design of distribution systems
are the most far reaching, resource demanding, and time consuming. The right investments in
distribution channels have traditionally provided long-term protection against competition,
and few researchers have been concerned with proposing strategic design principles focussing
on the dynamics of marketing channels or on feedback mechanisms that continually
monitor the design of distribution channels (for an exception, see Anderson et al., 1997).
The economic approach to analyzing marketing channels has been concerned with under
Contributions.and. Implications. of. this.Study
The most important contribution of this study is the representation of a process-based
categorization of B2B models and their assessment. This approach can also be used as a
benchmark for the evaluation and comparison of other new and upcoming B2B business
models and processes based on these models
The authors assume that similar studies or parts of these are used by consulting companies
in approaches to carry out analyses of models and process chains or SWOT analyses. The
process-based approach in this cross-sectional study is presented with some selected B2B
buy- and sell-side models. A longitudinal study could provide more meaningful and deeper
insights.
Future research in this domain could examine:
� Details.of.the.processes:.Lists introduced in this paper for the B2B fields of buyand
sell-side. A major goal should be to increase the depth for the classification and
refinement of existing models: A survey methodology could be used to determine the
frequency of these processes used by different B2B models in the marketspace.
� Expansion.of.the.process:.Lists to other models such as B2B-marketplaces, e-collaboration,
or to the extended supply chain. This could widen the universe for classification
of B2B models and lead to standardization in the categorization.
� Establishment.of.process.B2B.model.arrays:.(Showing models and processes in a
table format) for simplified analysis of similarities and differences between models.
Such matrices can also be used for fitting software products to different business models
or in the support of �Make or Buy� decisions in different stages of organizational
readiness.
categorization of B2B models and their assessment. This approach can also be used as a
benchmark for the evaluation and comparison of other new and upcoming B2B business
models and processes based on these models
The authors assume that similar studies or parts of these are used by consulting companies
in approaches to carry out analyses of models and process chains or SWOT analyses. The
process-based approach in this cross-sectional study is presented with some selected B2B
buy- and sell-side models. A longitudinal study could provide more meaningful and deeper
insights.
Future research in this domain could examine:
� Details.of.the.processes:.Lists introduced in this paper for the B2B fields of buyand
sell-side. A major goal should be to increase the depth for the classification and
refinement of existing models: A survey methodology could be used to determine the
frequency of these processes used by different B2B models in the marketspace.
� Expansion.of.the.process:.Lists to other models such as B2B-marketplaces, e-collaboration,
or to the extended supply chain. This could widen the universe for classification
of B2B models and lead to standardization in the categorization.
� Establishment.of.process.B2B.model.arrays:.(Showing models and processes in a
table format) for simplified analysis of similarities and differences between models.
Such matrices can also be used for fitting software products to different business models
or in the support of �Make or Buy� decisions in different stages of organizational
readiness.
Key. Issues.and.Trends. in. E-Business
Over the last decade, economic and technological advances have created a period of intense
globalization. A single world market is emerging in which the opportunities for global business
are enhanced by technical advances. These rapidly evolving new technologies enable
companies to reach their customers and trading partners around the world in just seconds,
regardless of geographic and/or time distances, political boundaries, and other barriers. The
growth of the Internet has intensified the speed of globalization and the need for companies
to implement effective global marketing and e-commerce strategies. With non-U.S. B2B ecommerce
spending projected to reach $2.8 trillion by 2004 (87% of total e-commerce), global
e-commerce is a major growth opportunity for U.S. companies (Saucini, LLC, 2002).
� E-commerce, and particularly B2B, is still in a rapid growth phase
� The domestic B2B e-commerce opportunity is dwarfed by the international opportunity
(European e-commerce revenues will surpass those of North America by 2005)
� Trends in e-commerce adoption are rapidly shifting the buyer base away from the
current North American, English language dominance
� Research indicates that B2B buyers are three to four times more likely to buy from
an e-commerce site presented in their native language
globalization. A single world market is emerging in which the opportunities for global business
are enhanced by technical advances. These rapidly evolving new technologies enable
companies to reach their customers and trading partners around the world in just seconds,
regardless of geographic and/or time distances, political boundaries, and other barriers. The
growth of the Internet has intensified the speed of globalization and the need for companies
to implement effective global marketing and e-commerce strategies. With non-U.S. B2B ecommerce
spending projected to reach $2.8 trillion by 2004 (87% of total e-commerce), global
e-commerce is a major growth opportunity for U.S. companies (Saucini, LLC, 2002).
� E-commerce, and particularly B2B, is still in a rapid growth phase
� The domestic B2B e-commerce opportunity is dwarfed by the international opportunity
(European e-commerce revenues will surpass those of North America by 2005)
� Trends in e-commerce adoption are rapidly shifting the buyer base away from the
current North American, English language dominance
� Research indicates that B2B buyers are three to four times more likely to buy from
an e-commerce site presented in their native language
Analyzing. the. Effectiveness. of.B2B
After the fallout of the dot-com companies and some unfulfilled expectations of the �B2B
hype,� the analysis of the effectiveness of B2B is important as it builds a base for understanding
the problems and actual trends in the area. Kaplan and Garciano (2001) state that B2B�s
key role is that of reducing transaction costs faced by buyers and sellers. They identify the
following five ways in which B2B e-commerce can potentially decrease transaction costs
and effectively operate in the post dot.com crash era:
1. By.changing.or.improving.processes:.Ariba reduces the costs of purchasing used
automobiles by not having to physically ship the product to an auction site.
2. By.changing.the.marketplace:.For both buyers and sellers it is less costly to search
for products over the Internet than having to conduct a physical search.
3. By.changing.decisions:.Indirect benefits may arise due to the reduced transaction
costs. As transaction costs decline, the buyer might decide to outsource a product as
opposed to producing it himself. Furthermore, �better information about future demand
through B2B e-commerce may allow a seller to improve its demand forecasts and
change its production decisions� (Kaplan & Garciano, 2001, p. 5).
4. By.changing.information.incompleteness.and.asymmetries:.The Internet changes
the asymmetric information buyers and sellers have about each other and their products,
leading to a transformation in the marketspace.
5. By.changing.the.ability.to.commit:.By standardizing processes and by providing an
electronic trail, the Internet has the potential to increase the ability to commit, thus
reducing imperfect commitment costs.
Finally, Kaplan and Garciano (2001) conclude that in order to succeed future B2B business
models must include �measurable benefits and charge customers as a function of those benefits.�
Similarly, if a company cannot secure a customer�s commitment when allowing or
facilitating price discovery, it is likely to fail since its customers will likely use its services
to define a market for the product/service and go elsewhere to complete the transaction.
hype,� the analysis of the effectiveness of B2B is important as it builds a base for understanding
the problems and actual trends in the area. Kaplan and Garciano (2001) state that B2B�s
key role is that of reducing transaction costs faced by buyers and sellers. They identify the
following five ways in which B2B e-commerce can potentially decrease transaction costs
and effectively operate in the post dot.com crash era:
1. By.changing.or.improving.processes:.Ariba reduces the costs of purchasing used
automobiles by not having to physically ship the product to an auction site.
2. By.changing.the.marketplace:.For both buyers and sellers it is less costly to search
for products over the Internet than having to conduct a physical search.
3. By.changing.decisions:.Indirect benefits may arise due to the reduced transaction
costs. As transaction costs decline, the buyer might decide to outsource a product as
opposed to producing it himself. Furthermore, �better information about future demand
through B2B e-commerce may allow a seller to improve its demand forecasts and
change its production decisions� (Kaplan & Garciano, 2001, p. 5).
4. By.changing.information.incompleteness.and.asymmetries:.The Internet changes
the asymmetric information buyers and sellers have about each other and their products,
leading to a transformation in the marketspace.
5. By.changing.the.ability.to.commit:.By standardizing processes and by providing an
electronic trail, the Internet has the potential to increase the ability to commit, thus
reducing imperfect commitment costs.
Finally, Kaplan and Garciano (2001) conclude that in order to succeed future B2B business
models must include �measurable benefits and charge customers as a function of those benefits.�
Similarly, if a company cannot secure a customer�s commitment when allowing or
facilitating price discovery, it is likely to fail since its customers will likely use its services
to define a market for the product/service and go elsewhere to complete the transaction.
E-Procurement. Supplier. (EPS). Portal. in.B2B
The implementation of stage one was based on the results of an analysis of supplier-related
processes and the successful development of a process and functional concept for the supplier
portal for CLAAS prepared in advance of the implementation. The implementation included
installation and configuration of hardware and software, development and implementation
of defined functionalities, and deployment and testing of the application.
The processes for order, delivery, proposal, and invoice have been implemented based on
the standard described from the VDA (German Association of the Automotive Industry)
The EPS system represents one of the purest forms of Web-EDI e-business models for B2B.
There is no EDI server needed. The data interchange between the Web-EDI-server and the
SAP-Systems are transferred via a WebSphere connector using XML (Steinert, 2002). IBM
Global Services consultants state that a return on investment for a Web-EDI project using
EPS can be achieved in approximately two years on average.
The goal of the project was the successful implementation of the supplier portal for
e-procurement and supplier collaboration for CLAAS, a leading manufacturer of
agricultural engines in Germany with customers around the world. This supplier
portal supports sourcing and procurement processes of the company by providing
a web-based interface to suppliers and enabling efficient data interchange over
the Internet. The implementation approach divided the implementation of the
system into three stages with each stage containing a subset of functionalities
of the total planned scope of the project.
processes and the successful development of a process and functional concept for the supplier
portal for CLAAS prepared in advance of the implementation. The implementation included
installation and configuration of hardware and software, development and implementation
of defined functionalities, and deployment and testing of the application.
The processes for order, delivery, proposal, and invoice have been implemented based on
the standard described from the VDA (German Association of the Automotive Industry)
The EPS system represents one of the purest forms of Web-EDI e-business models for B2B.
There is no EDI server needed. The data interchange between the Web-EDI-server and the
SAP-Systems are transferred via a WebSphere connector using XML (Steinert, 2002). IBM
Global Services consultants state that a return on investment for a Web-EDI project using
EPS can be achieved in approximately two years on average.
The goal of the project was the successful implementation of the supplier portal for
e-procurement and supplier collaboration for CLAAS, a leading manufacturer of
agricultural engines in Germany with customers around the world. This supplier
portal supports sourcing and procurement processes of the company by providing
a web-based interface to suppliers and enabling efficient data interchange over
the Internet. The implementation approach divided the implementation of the
system into three stages with each stage containing a subset of functionalities
of the total planned scope of the project.
Standards.and.Architectures
munication
standards to be used. With the increasing use of EDI, however, this procedure
has proven to be too difficult to practice. The Web-EDI standards are mainly driven by
different organizations that have relationships with different industries. For example, in
Europe the VDA standard of the German Association of the Automotive Industry is one of
the commonly accepted descriptions of Web-EDI and is based on the well-known EDIFACT
standards. Some Web-EDI software products based on these standards are implemented
several hundred times in Europe
Newer trends and solutions in Web-EDI (IBM, 2003b) ignore the need for EDI and the
EDIFACT standard and provide direct ways to connect the ERP-system of an enterprise
with a web-EDI portal using a Web-EDI server ().
The trend is that an explicit EDI server with translation to the intermediate format of EDIFACT
or ODETTE is considered unnecessary for small- and intermediate-size organizations since
an XML-interface performs the same service. illustrates an example describing
this model (EDI Comp., 2003b).
standards to be used. With the increasing use of EDI, however, this procedure
has proven to be too difficult to practice. The Web-EDI standards are mainly driven by
different organizations that have relationships with different industries. For example, in
Europe the VDA standard of the German Association of the Automotive Industry is one of
the commonly accepted descriptions of Web-EDI and is based on the well-known EDIFACT
standards. Some Web-EDI software products based on these standards are implemented
several hundred times in Europe
Newer trends and solutions in Web-EDI (IBM, 2003b) ignore the need for EDI and the
EDIFACT standard and provide direct ways to connect the ERP-system of an enterprise
with a web-EDI portal using a Web-EDI server ().
The trend is that an explicit EDI server with translation to the intermediate format of EDIFACT
or ODETTE is considered unnecessary for small- and intermediate-size organizations since
an XML-interface performs the same service. illustrates an example describing
this model (EDI Comp., 2003b).
Web-EDI
Web-EDI uses technologies and standards such as HTML, Java, CGI, or ASP for electronic
data interchange over the Internet (Thomas, 1999). The supplier of a Web-EDI system provides
its business partners with a Web site on which they can electronically transact business by
means of a conventional web browser that communicates with a Web-EDI server. The target
user group for Web-EDI is small and middle-sized business partners who cannot afford their
own traditional EDI system due to initial cost and/or ongoing maintenance costs.
Web-EDI systems are transaction-oriented; that is, the processes on the Web-EDI server
are steered by business transactions like orders or accounting. The user must complete the
authentication and authorization process on the website in order to mail an order or retrieve
and print an order. If the user has filled out the corresponding HTML form completely, he
can send the data back to the Web-EDI server. The transmission of data by the Web-EDI
server is carried to the in-house system of the supplier automatically. The integration of the
data into the supplier�s system can be carried out by direct correspondence with its import
interfaces or its EDI converter.
If a supplier already has a traditional EDI system in use, conventional EDI methods are
preferred in order to avoid the additional efforts resulting from conversion into Web-EDI
formats. These in-house systems can normally be used with different EDI partners due to
the ability of the most EDI products to route information. The Web-EDI server is simply
a new data source for the converter. After the data arrives at the converter, the handling of
orders is the same as conventional EDI orders, and the translation process is completely
transparent to the end user.
data interchange over the Internet (Thomas, 1999). The supplier of a Web-EDI system provides
its business partners with a Web site on which they can electronically transact business by
means of a conventional web browser that communicates with a Web-EDI server. The target
user group for Web-EDI is small and middle-sized business partners who cannot afford their
own traditional EDI system due to initial cost and/or ongoing maintenance costs.
Web-EDI systems are transaction-oriented; that is, the processes on the Web-EDI server
are steered by business transactions like orders or accounting. The user must complete the
authentication and authorization process on the website in order to mail an order or retrieve
and print an order. If the user has filled out the corresponding HTML form completely, he
can send the data back to the Web-EDI server. The transmission of data by the Web-EDI
server is carried to the in-house system of the supplier automatically. The integration of the
data into the supplier�s system can be carried out by direct correspondence with its import
interfaces or its EDI converter.
If a supplier already has a traditional EDI system in use, conventional EDI methods are
preferred in order to avoid the additional efforts resulting from conversion into Web-EDI
formats. These in-house systems can normally be used with different EDI partners due to
the ability of the most EDI products to route information. The Web-EDI server is simply
a new data source for the converter. After the data arrives at the converter, the handling of
orders is the same as conventional EDI orders, and the translation process is completely
transparent to the end user.
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