The Transforming Power of Business-to-Business Electronic Business

new business models emerge. The concept of virtual organisations21 is dominating current and near-term developments. The organisational structures and processes within and among firms and across Industries have changed in a way that they strongly resemble to computer networks (Intranet, Extranet, and Internet) and enterprise application programs providing the infrastructure (in a broad sense) for global electronic business. Modular and networked structural configurations and business models are most suitable to cope with the challenges of the e-Economy. Thus, the e-Business Transformation is an evolution toward organisational modularisation, not only in terms of technology and structure but also in terms of goals and strategies. This opens new dimensions of outsourcing and collaboration22 between companies. Channel partners as well as former competitors start to collaborate in ways and in fields which seemed to be impossible only a few years ago. On the one hand B2B e-Business powered by Internet technology is a new tool to reach longstanding goals. It lives up to the promises proprietary computer networks and Electronic Data Interchange [EDI] have not been able to fulfil for three decades. On the other hand, it enables us to set new unprecedented goals and create new strategies, structures, and processes to answer the challenges of an uncertain future. The reasons are the simple, flexible, modular, networked, low regulated and global character of the Internet and the relatively low costs involved (compared to e.g. EDI). B2B e-Business is not limited to the externalities of a firm. A company that wants to leverage the promising opportunities of B2B e-Business has to focus not only on its external relationships with channel partners along the value system. It also needs to adopt its value chain internally, to an appropriate extent. Consequently, the transition from the Old-Economy to the e-Economy is inextricably linked to the management of change (Kalakota & Robinson, 2000). However, the best way to deal with the necessary change is to view it as a chance for new competitive advantages and not as an imperative to sacrifice traditions and an assumed safe heaven. e-Business Transformation within an Old-Economy company is not an all-or-nothing game. Revolutionary e-Business Change just for the sake of change is not an [...]

be exchanged into Euros under constant conditions at all national central banks for another 30 years (Aktion Euro, 2001; Sparkasse, 2001; Spiegel, 2001). When the Euro was physically introduced and people got used to it on a day-to-day basis, it was not a new currency any more, but the one and only currency of the European Union. This sounds all too familiar if you think about electronic commerce and electronic business. If one replaces the ECU through EDI and the EURO through e-Business in this section. There are quite some similarities in the development and implementation of the Euro and e-Business, not only in terms of time but as well in terms of the underlying systematics and dynamics. Firstly, the ECU came into play around the time EDI representing the basic level of electronic business was introduced. Secondly, the introduction of the Euro was decided upon as the World Wide Web and the commercialisation of the Internet have initiated the Internet Revolution. Thirdly, the Euro was launched in 1999 when the dot.com era was entering its hot phase. The timeframe of the e-Business Transformation and the way it enrols are not yet clear cut, however, it will happen and the overall picture, the reasons and objectives behind are, in a lateral sense, the same as for the Euro; cutting costs, increase customer satisfaction and customer value to maintain or improve competitiveness. The history, development and introduction of the Euro stand as an example for the transition from the traditional Old-Economy and the traditional way of conducting business to the e-Economy and the new way of conducting business (electronically). In this sense, e-Business and its fundamental standards (e.g. TCP/IP) can somehow be seen as the single global currency in a globalized world and networked economy. [...]

4.2.2 The EURO metaphor Old Business and Networked & Globalized Business represent two different paradigms of business, the old and the new one. This situation can somehow be compared to the introduction of the single European currency, the Euro. It took quite some time to develop the idea and the means needed to introduce the Euro but the final steps enrolled rather quick. The foundations were laid with the Treaties of Rome creating the European Economic Community [EEC] which came into effect in 1958. The EEC was formed with a monetary union as an eventual objective. The first attempt for a monetary union started in 1971. Although the European Council and the member states took a lot of efforts it was given up during the mid 1970s. The next step was the introduction of the so called “Snake Currency” in 1972. In 1979 the European Council established the European Currency Unit [ECU], which was the first standardised and unified currency unit, used to simplify the financial affairs (e.g. budgeting) of the bodies of the European Community and the flows of money between the member states. Starting January 1st 1999, the European Monetary Union replaced the freely fluctuating exchange rates of the 12 participating European currencies through a system of fixed exchange rates (standardisation) with the Euro as the central calculating unit. Since this historical day the Euro has been in use within Europe and around the world as a legal currency and book money. However, the consumers on the streets did not realise at all that their own national currencies, in fact, was not existing anymore. As the transition continued, all companies, the very small ones as well, had to adopt their systems to the new currency standard or they would go out of business. The first contact between the consumer on the street and the new single currency took place January 1st 2002. After a two-month transition period the single valid currency within the European Monetary System has become the Euro. After this period the national currencies can [...]