《电子商务 E-business》阅读文献_E-business development for competitive advantages

INFARMATION MANAGEMENT ELSEVIER Information Management 40(2003)581-590 www,elsevier.com/locatedsw E-business development for competitive advantages a case study Dien d. phan Department of Business Computer Information Systems, St Cloud State University, St. Cloud, MN 56301, USA Received 5 July 2001; received in revised form 4 March 2002: accepted 20 July 2002 Abstract Electronic business(e-business)today plays a major role in the worlds economy. Forester Research estimated that, by 2003 the value of e-commerce of US and Europe will reach US$ 3 trillion. As the e-marketplace becomes more lucrative, it attracts new entrants and created turmoil in the market. There have been many spectacular successes and many failures This paper presents a study of e-business competitive advantage strategies using the s at Intel. After the initial deployment of its e-business pilot system in July 1998, Intel ramped USS I billion sales on e-business each month for the rest of the year. Intel became the fifth most profitable company in the Us in the year 2000, up from the rank of eighth in 1999. Despite the rapid decline in stock values of many Internet related companies and the recession, Intel is still successful. By the end of 2001, Intel was the seventh largest market capitalization company in the US C 2002 Elsevier Science B.V. All rights reserved. Keywords: E-business; E-commerce; B2B; Supply chain; Value chain: Competitive advantage; Strategy: Extranet 1. Introduction Gates, frequently expressed his fear that Microsoft is about 2 years away from failure, that somewhere out E-business has received much attention from entre- there is a formidable competitor, unborn and preneurs, executives, investors, and industry observers unknown, who will use better business models to cently. As information technologies (T) develop, put companies like Microsoft into obsolescence. novel ways of business process redesign succes emerged, creating turmoil in the industry. Organiza- probably those that can integrate Internet technology tions today frequently integrate Internet technology to to all activities of the enterprise-wide value chain ocesses in ways that strengthen their com petitive advantages. Success breeds imitation and Invites more entnes 2. Ebusiness concepts, strategies, and The rapid expansion of e-commerce values in the frameworks past few years convinced many people that a new economy has emerged. Chairman of Microsoft, Bill Based on various types of trading partners, there are many categories of e-business, for example: Business Tel:+1-320-255-2174;fax:+1-320-203-6074 to Business(B2B ), Business to Consumer (B2C) E-mail address: phan@stcloudstate edu(DD. Phan Consumer to Business(C2B), Consumer to Consumer 0378-7206/02/- see front matter c 2002 Elsevier Science B V. All rights reserved. PI:S0378-7206(02)00089-7

E-business development for competitive advantages: a case study Dien D. Phan* Department of Business Computer Information Systems, St. Cloud State University, St. Cloud, MN 56301, USA Received 5 July 2001; received in revised form 4 March 2002; accepted 20 July 2002 Abstract Electronic business (e-business) today plays a major role in the world’s economy. Forester Research estimated that, by 2003, the value of e-commerce of US and Europe will reach US$ 3 trillion. As the e-marketplace becomes more lucrative, it attracts new entrants and created turmoil in the market. There have been many spectacular successes and many failures. This paper presents a study of e-business competitive advantage strategies using the success at Intel. After the initial deployment of its e-business pilot system in July 1998, Intel ramped US$ 1 billion sales on e-business each month for the rest of the year. Intel became the fifth most profitable company in the US in the year 2000, up from the rank of eighth in 1999. Despite the rapid decline in stock values of many Internet related companies and the recession, Intel is still successful. By the end of 2001, Intel was the seventh largest market capitalization company in the US. # 2002 Elsevier Science B.V. All rights reserved. Keywords: E-business; E-commerce; B2B; Supply chain; Value chain; Competitive advantage; Strategy; Extranet 1. Introduction E-business has received much attention from entre￾preneurs, executives, investors, and industry observers recently. As information technologies (IT) develop, novel ways of business process redesign (BPR) emerged, creating turmoil in the industry. Organiza￾tions today frequently integrate Internet technology to redesign processes in ways that strengthen their com￾petitive advantages. Success breeds imitation and invites more entries. The rapid expansion of e-commerce values in the past few years convinced many people that a new economy has emerged. Chairman of Microsoft, Bill Gates, frequently expressed his fear that Microsoft is about 2 years away from failure, that somewhere out there is a formidable competitor, unborn and unknown, who will use better business models to put companies like Microsoft into obsolescence. And the most successful new business models are probably those that can integrate Internet technology to all activities of the enterprise-wide value chain. 2. E-business concepts, strategies, and frameworks Based on various types of trading partners, there are many categories of e-business, for example: Business to Business (B2B), Business to Consumer (B2C), Consumer to Business (C2B), Consumer to Consumer Information & Management 40 (2003) 581–590 * Tel.: þ1-320-255-2174; fax: þ1-320-203-6074. E-mail address: phan@stcloudstate.edu (D.D. Phan). 0378-7206/02/$ – see front matter # 2002 Elsevier Science B.V. All rights reserved. PII: S 0378-7206(02)00089-7

DD. Phan/Information &e Management 40(2003)581-590 (C2C), People to People(P2P), Government to Citizen close frequently, creating rapid changes in the market (G2C), Citizen to Government( C2G), Exchange to The prevalence of technical innovations may be Exchange (E2E) and Intra-business (Organization ular, sporadic, or seldom; these patterns of change Unit to Organization Unit). Without the use of face have different implications for business organizations to face operations, all e-business transactions are When innovations occur often, a niche may open up performed electronically by using computer and com- and the organization competes to take the advantage of munication networks. The three principal categories cost savings and market penetration that often results in better profits and market share 1. Electronic markets or e-marketplaces: buying and From the Is perspective, the value chain model [9] selling goods and services highlights interdependence activities in businesses 2. Inter-organizational systems: facilitatin where competitive strategies and intra-organization flow of goods, and where IS are most likely to have strategic impact nformation. communication, and collabor ( Fig. 1) As information technologies developed, novel ways ervice: providing customer service, of business process redesign emerged. Most organiza- ng complaints, tracking or tions today use Internet technology to redesign their processes in ways that provide new competitive 2.1. Information systems strategies for competitive advantage. Through the infrastructure of existing B2B exchanges in the e-marketplaces, many organi zations will eventually be able to integrate activities of their value chain encompassing suppliers, customers, Studying the evolution of business organizations and distribution channels within an industry or across has received much of attention in organization theory industries. The potential of e-business is so great that and MIs research [2, 8] cause organizations are not internally self-sufficient, they require resources from many believe that e-business is the new economy that the environment, and thus become interdependent decides the success of future business organizations with those elements of the environment with which Andy Grove, Chairman of Intel boldly stated in 1998: they transact. Organizational and ecological theorist ithin 5 years, all companies will be Internet com [6,7] argued that organizations develop internal and panies or they would not be companies"[4]. Despit external strategies which seek to minimize the uncer the fact this prediction was greatly exaggerated, this tainty arising from dependence on the environment for statement showed a strong belief in the potential of As the techno dvances and the e-business However, Porter [10] has argued that the ke market develop rows, market niches open and tion is not whether to deploy e-business now to take advantage of Internet technology, but how to deploy it Firm Infrastructure: Administration and Management Human resources Technolo OutboundMar Logistics and Sales Fig. 1. The value chain model

(C2C), People to People (P2P), Government to Citizen (G2C), Citizen to Government (C2G), Exchange to Exchange (E2E) and Intra-business (Organization Unit to Organization Unit). Without the use of face to face operations, all e-business transactions are performed electronically by using computer and com￾munication networks. The three principal categories of e-business applications are: 1. Electronic markets or e-marketplaces: buying and selling goods and services. 2. Inter-organizational systems: facilitating inter￾and intra-organization flow of goods, services, information, communication, and collaboration. 3. Customer service: providing customer service, help, handling complaints, tracking orders, etc. [13]. 2.1. Information systems strategies for competitive advantage Studying the evolution of business organizations has received much of attention in organization theory and MIS research [2,8]. Because organizations are not internally self-sufficient, they require resources from the environment, and thus become interdependent with those elements of the environment with which they transact. Organizational and ecological theorists [6,7] argued that organizations develop internal and external strategies which seek to minimize the uncer￾tainty arising from dependence on the environment for resources. As the technology advances and the e-business market develops and grows, market niches open and close frequently, creating rapid changes in the market. The prevalence of technical innovations may be reg￾ular, sporadic, or seldom; these patterns of change have different implications for business organizations. When innovations occur often, a niche may open up and the organization competes to take the advantage of cost savings and market penetration that often results in better profits and market share. From the IS perspective, the value chain model [9] highlights interdependence activities in businesses where competitive strategies can be best applied and where IS are most likely to have strategic impact (Fig. 1). As information technologies developed, novel ways of business process redesign emerged. Most organiza￾tions today use Internet technology to redesign their processes in ways that provide new competitive advantage. Through the infrastructure of existing B2B exchanges in the e-marketplaces, many organi￾zations will eventually be able to integrate activities of their value chain encompassing suppliers, customers, and distribution channels within an industry or across industries. The potential of e-business is so great that many believe that e-business is the new economy that decides the success of future business organizations. Andy Grove, Chairman of Intel boldly stated in 1998: ‘‘Within 5 years, all companies will be Internet com￾panies or they would not be companies’’ [4]. Despite the fact this prediction was greatly exaggerated, this statement showed a strong belief in the potential of e-business. However, Porter [10] has argued that the key ques￾tion is not whether to deploy e-business now to take advantage of Internet technology, but how to deploy it. Fig. 1. The value chain model. 582 D.D. Phan / Information & Management 40 (2003) 581–590

DD Phan/Information Management 40(2003)581-590 Gaining competitive advantage requires building on salty, and e-trust. Because the use of e- the proven principles of effective strategy. Business commerce technology tends to reduce the switching enterprise can gain competitive advantage by opera- cost, it is important for e-business companies to build tional effectiveness, doing the same as your compe- its strategic position by focusing on e-loyalty which tutors do but doing it better, and by strategic encompasses good relationships and trust with value positioning, doing things differently from competitor chain partners. B2B procurement of direct go in a way that delivers a unique type of value to requires a relationship, usually long-term, with a customers. Key principles of strategic positioning who will deliver are: goals that aim at long-term return on investment, With mission critical buying, companies cannot just distinctive value chains, trade-offs for uniqueness in buy from anyone in the e-marketplace. If an order for the market, strategies that fit together, and continuity supplies goes unfilled, the missing goods could shut of corporate direction. down a production line or an entire factory. In B2B Porter also argued that Internet technology should procurement of direct goods, tight integration with be used as a"complement to "rather than a"cannibal major suppliers along the supply chain is absolutely of"traditional ways of competing. The companies essential that will be most successful will be those that use e Major success factors for e-business include business to make traditional business processes better [5,11,15 and those that invent and implement new combina- tions of virtual and physical activities. Without under- Internet technology fully integrated into the com- pany's overall strategy. standing how to deploy Intemet technology, entering Competitive advantage maintained in both opera e-business can bring disastrous consequences In recent years, the business community and the tional efficiency and distinctive strategic position public have been confused by distorted market signals of many dotcoms, such as the exponential growth in Basis of competition not shifted from traditional number of customers, artificially-low operation costs, competitive advantage, such as cost, profit, quality, and inflated revenues. Some companies even resorted service. and features. to dubious accounting methods to inflate revenues and Companys strategic positioning well maintained. deflate costs. Somehow these distorted signals have Support from top management. misled many people into a belief that the e-market- Buyer behavior and customer personalization places have rendered old rules of competition obso- Quick time to market. lete. As a consequence, many companies decided to Right systems infrastructure Good cost control ift their fundamental ways of doing business from quality, feature, innovations, service, and profits Good e-business education and training to employ toward mainly low price and revenue growth. Without ees, management and custom long-term profits, they failed. Customers and partners'expectations well-mana To succeed, companies will need to search and implement innovative strategies that capitalize on both Good products and services offered by e-business. the power of the Internet and the changes in both Current e-business systems expanded to cover entire supply chain. traditional and electronic markets. Companies that run New competitors and market shares tracked e-business should have tight supply chain relation hips with customers, suppliers, and distributors [12] Website of high quality that meets or exceed user In addition, the supply chain within e-business com- expectations. panies also continues to change. Businesses need to be Companys virtual marketplace established sure that customers and suppliers can easily gain access to their websites to gain important product 3. Intel and its e-business development strategies information for decision making. Currently, the major barrier to customersand Intel Corp. located in Santa Clara, California, is the suppliers access to the is ease and speed of world's largest producer of Integrated Circuits Chips

Gaining competitive advantage requires building on the proven principles of effective strategy. Business enterprise can gain competitive advantage by opera￾tional effectiveness, doing the same as your compe￾titors do but doing it better, and by strategic positioning, doing things differently from competitors in a way that delivers a unique type of value to customers. Key principles of strategic positioning are: goals that aim at long-term return on investment, distinctive value chains, trade-offs for uniqueness in the market, strategies that fit together, and continuity of corporate direction. Porter also argued that Internet technology should be used as a ‘‘complement to’’ rather than a ‘‘cannibal of’’ traditional ways of competing. The companies that will be most successful will be those that use e￾business to make traditional business processes better and those that invent and implement new combina￾tions of virtual and physical activities. Without under￾standing how to deploy Internet technology, entering e-business can bring disastrous consequences. In recent years, the business community and the public have been confused by distorted market signals of many dotcoms, such as the exponential growth in number of customers, artificially-low operation costs, and inflated revenues. Some companies even resorted to dubious accounting methods to inflate revenues and deflate costs. Somehow these distorted signals have misled many people into a belief that the e-market￾places have rendered old rules of competition obso￾lete. As a consequence, many companies decided to shift their fundamental ways of doing business from quality, feature, innovations, service, and profits toward mainly low price and revenue growth. Without long-term profits, they failed. To succeed, companies will need to search and implement innovative strategies that capitalize on both the power of the Internet and the changes in both traditional and electronic markets. Companies that run e-business should have tight supply chain relation￾ships with customers, suppliers, and distributors [12]. In addition, the supply chain within e-business com￾panies also continues to change. Businesses need to be sure that customers and suppliers can easily gain access to their websites to gain important product information for decision making. Currently, the major barrier to customers’ and suppliers’ access to the web is ease and speed of access, e-loyalty, and e-trust. Because the use of e￾commerce technology tends to reduce the switching cost, it is important for e-business companies to build its strategic position by focusing on e-loyalty which encompasses good relationships and trust with value chain partners. B2B procurement of direct goods requires a relationship, usually long-term, with a vendor who will deliver a known quality of goods. With mission critical buying, companies cannot just buy from anyone in the e-marketplace. If an order for supplies goes unfilled, the missing goods could shut down a production line or an entire factory. In B2B procurement of direct goods, tight integration with major suppliers along the supply chain is absolutely essential. Major success factors for e-business include [5,11,15]: Internet technology fully integrated into the com￾pany’s overall strategy. Competitive advantage maintained in both opera￾tional efficiency and distinctive strategic position￾ing. Basis of competition not shifted from traditional competitive advantage, such as cost, profit, quality, service, and features. Company’s strategic positioning well maintained. Support from top management. Buyer behavior and customer personalization. Quick time to market. Right systems infrastructure. Good cost control. Good e-business education and training to employ￾ees, management and customers. Customer’s and partners’ expectations well-mana￾ged. Good products and services offered by e-business. Current e-business systems expanded to cover entire supply chain. New competitors and market shares tracked. Website of high quality that meets or exceed user expectations. Company’s virtual marketplace established. 3. Intel and its e-business development strategies Intel Corp. located in Santa Clara, California, is the world’s largest producer of Integrated Circuits Chips D.D. Phan / Information & Management 40 (2003) 581–590 583

DD. Phan/Information Management 40(2003)581-590 today. Incorporated in 1968, Intel supplies the com- Access to the site was restricted to Intel's authorized puting and communications industries with chips, business partners and customers boards and systems building blocks that are Project teams that participated in the early devel to computers, servers, and networking and opment of the e-business system included: nications products. Its products are offered levels of integration, and are used by industry a project planning team that consisted of customer, bers to create advanced computing and communica- technical and logistical representatives was created to define the scope and objective of the pro tions systems. Today, the company has evolved from a. Business analysts were brought in during the early processor maker into a supplier of network and server ardware Internet hosting services, and other e-busi- stages to help define the business workflow and to mation was given to cu hess components. Its technological leadership ranges. Intels sales and marketing staff were told to study from microprocessor design to advanced manufactur and define how to work with customers via the Most of Intel's business is in the PC market. In past business system. years, it was under intense competition from other Intel's Planning and Logistics Group was included chip makers, such as Advanced Micro devices on the planning team to help the It department to (AMD), Texas Instruments, Motorola, and IBM. It develop the solutions to integrate the new e-busi ness with existing business activities then customized its paper catalogs and sent them to The it department was positioned as an"enabler potential customers along with product availability information. Until summer 1998, this process w of business. Its role was to implement the solutions performed entirely on paper. However in 1996, when from the Planning and Logistic Groups key value chain partners, such as Dell Computers and Cisco Systems, started their B2B e-procurement sys- 3.2. Intel's mission and goals tems, they pressured Intel to convert B2B activities on with over 50% of its revenues and many customers In 1997, Intel began to investigate the feasibility of coming from outside the US, the benefits of a global e- building an e-business system. The project started business system for Intel were too great to be ignored with the forming of a Virtual Worldwide E-Business To support over US$ 25 billion annual sales in 1998 Project Team. Because the project strongly empha- and a worldwide network of business partners, resel- sized customer market needs, Intel's sales and market- lers, and original equipment manufacturers(OEM), ing was given overall management responsibility. At Intel had to improve its efficiency by automating its that time, converting all operations to e-business for a business to business processes. Traditional business company with a large global operation was perceived processes at Intel at that time were too slow and thus a as a daunting task. Under the mandate from the chair- decision was made to deploy a web-based order man to make Intel an 'Internet company, Sandra management system. Morris, Vice President of Sales and Marketing Group, Intels early mission was to use Internet technology and Director of Internet Marketing and E-Commerce to improve the competitive advantage of its value at Intel stated: "a lot of people feel overwhelmed chain activities. The goals were to design and deploy ‘ The task a worldwide e-business solution for its current busi- ness, and build an infrastructure that worked with 3. 1. Project structure existing business processes. The intent was to inte- grate Internet technology into the company's overal From pressure exerted by many value chain partners strategy in order to gain competitive advantage in both who wanted Intel to play a leadership role, Intels operational effectiveness and strategic positioning management decided to advise customers that Intel In order to avoid potential software engineering was serious about e-business. It created an'e-business problems created by the enormous task of building program(a self-service extranet) which focused on a new Intels e-business system, Intel development rocurement and customer support for Intel products. teams started cautiously. Rather than cannibalizing the

today. Incorporated in 1968, Intel supplies the com￾puting and communications industries with chips, boards and systems building blocks that are integral to computers, servers, and networking and commu￾nications products. Its products are offered at various levels of integration, and are used by industry mem￾bers to create advanced computing and communica￾tions systems. Today, the company has evolved from a processor maker into a supplier of network and server hardware, Internet hosting services, and other e-busi￾ness components. Its technological leadership ranges from microprocessor design to advanced manufactur￾ing and packaging. Most of Intel’s business is in the PC market. In past years, it was under intense competition from other chip makers, such as Advanced Micro Devices (AMD), Texas Instruments, Motorola, and IBM. It then customized its paper catalogs and sent them to potential customers along with product availability information. Until summer 1998, this process was performed entirely on paper. However in 1996, when key value chain partners, such as Dell Computers and Cisco Systems, started their B2B e-procurement sys￾tems, they pressured Intel to convert B2B activities on￾line. In 1997, Intel began to investigate the feasibility of building an e-business system. The project started with the forming of a Virtual Worldwide E-Business Project Team. Because the project strongly empha￾sized customer market needs, Intel’s sales and market￾ing was given overall management responsibility. At that time, converting all operations to e-business for a company with a large global operation was perceived as a daunting task. Under the mandate from the chair￾man to make Intel an ‘Internet company,’ Sandra Morris, Vice President of Sales and Marketing Group, and Director of Internet Marketing and E-Commerce at Intel stated: ‘‘a lot of people feel overwhelmed by ‘The Task’.’’ 3.1. Project structure From pressure exerted by many value chain partners who wanted Intel to play a leadership role, Intel’s management decided to advise customers that Intel was serious about e-business. It created an ‘e-business program’ (a self-service extranet) which focused on procurement and customer support for Intel products. Access to the site was restricted to Intel’s authorized business partners and customers. Project teams that participated in the early devel￾opment of the e-business system included: A project planning team that consisted of customer, technical and logistical representatives was created to define the scope and objective of the project. Business analysts were brought in during the early stages to help define the business workflow and to assess how information was given to customers. Intel’s sales and marketing staff were told to study and define how to work with customers via the e￾business system. Intel’s Planning and Logistics Group was included on the planning team to help the IT department to develop the solutions to integrate the new e-busi￾ness with existing business activities. The IT department was positioned as an ‘‘enabler’’ of business. Its role was to implement the solutions from the Planning and Logistic Groups. 3.2. Intel’s mission and goals With over 50% of its revenues and many customers coming from outside the US, the benefits of a global e￾business system for Intel were too great to be ignored. To support over US$ 25 billion annual sales in 1998 and a worldwide network of business partners, resel￾lers, and original equipment manufacturers (OEM), Intel had to improve its efficiency by automating its business to business processes. Traditional business processes at Intel at that time were too slow and thus a decision was made to deploy a web-based order management system. Intel’s early mission was to use Internet technology to improve the competitive advantage of its value chain activities. The goals were to design and deploy a worldwide e-business solution for its current busi￾ness, and build an infrastructure that worked with existing business processes. The intent was to inte￾grate Internet technology into the company’s overall strategy in order to gain competitive advantage in both operational effectiveness and strategic positioning. In order to avoid potential software engineering problems created by the enormous task of building a new Intel’s e-business system, Intel development teams started cautiously. Rather than cannibalizing the 584 D.D. Phan / Information & Management 40 (2003) 581–590

DD Phan/Information Management 40(2003)581-590 585 entire business structure, Intel project teams used an Because management, procurement, sales and iteration approach in building it first e-business sys marketing, and engineering functions tem. They first focused on building an extranet B2B chain partners and customers all have system to support direct customers on-line. We informational needs, Intel customized its websites picked one thing that we could build very quickly within customer accounts. being able to deliver and deploy to our customers, said Sandra Morris personalized information on-line allowed Intel to support multiple levels of the customer organiza- 3.3. E-business strategies for value chain tion in a manner that best met the individuals leeds. This makes it easier for every customer to Intel aimed to achieve its competitive advantage by do his/her own research and to take appropriate both operational efficiency and strategic positioning. action Customers visiting the intel extranet website 1. Operational efficiency: In order to improve effi- ow find their name and ciency, Intel helped its value chain partners connect available to them, based on their personal profile to the worldwide-web to access information on This user profile allows a customer to obtain con- line. to do this intel automated its order manage- fidential information important to him or her alone ment and information delivery system. The greates efficiency improvement in 1997 was to customers 3.4. E-business deployment who were not already electronically connected to Intel. By converting the"unwiredto " wired, The initial e-business pilot system launched in 1998 consisted of 240 one-stop shopping sites for customers PC-based on-line communication. By providing around the world. Using an iterative development access to real-time information, Intel allowed approach to build the system, Intel's e-business web customers to know more about of Intel products site was serving more than 350 top customer accounts and future direction. On-line access also made and thousands of individual users within the first year. customers feel more connected with access to more Personalized data and applications were tailored to Intel resources, and thus having a closer business users'needs to provide an individualized experience elationship Fig. 2 For Intel, having customers electronically ected brought multiple benefits. First, the com- 3.5. Quick deployment of access manager pany was able to move resources towards a more pplication efficient and productive technology. Second, sales people no longer needed to hand deliver con One of the early incremental development efforts at fidential product information as they had in the Intel after the launch of their e-business website was past. Third, potential sales were enormous, an Access manager application that automated the because Intel was dealing with billions of dollars creation of account user IDs and passwords to access of orders per quarter the unified environment known as the "landing 2. Distinctive strategic positioning in the value chain: Zone. In the past, Intel account supervisor often In 1998, Intel was well positioned with its Pentium spent over an hour in creating user IDs and passwords processor product lines and enjoyed a distinctive for a new customer. With the Landing Zone environ- strategic positioning in the market thanks to its ment, Intel customers may log into one place and have unique R&d programs and good supply chain access to many other intra/extranet sites; this conve- relationships with partners. To further strengthen nience attracted many users. "The people want to this position, Intel focused on building on-line come to the environment because it offers these relationships with direct customers, including common services of security and entitlement OEMs and distributors. Intel worked hard to commented M. Kantipudi, the B2B Platform and e convert its system and data from the old vendor- Content Application Manager of Intels Sales an centric model to the new customer -centric model Marketing Application Group

entire business structure, Intel project teams used an iteration approach in building it first e-business sys￾tem. They first focused on building an extranet B2B system to support direct customers on-line. ‘‘We picked one thing that we could build very quickly and deploy to our customers,’’ said Sandra Morris. 3.3. E-business strategies for value chain Intel aimed to achieve its competitive advantage by both operational efficiency and strategic positioning. 1. Operational efficiency: In order to improve effi- ciency, Intel helped its value chain partners connect to the worldwide-web to access information on￾line. To do this Intel automated its order manage￾ment and information delivery system. The greatest efficiency improvement in 1997 was to customers who were not already electronically connected to Intel. By converting the ‘‘unwired’’ to ‘‘wired,’’ Intel replaced traditional phone and fax lines to PC-based on-line communication. By providing access to real-time information, Intel allowed customers to know more about of Intel products and future direction. On-line access also made customers feel more connected with access to more Intel resources, and thus having a closer business relationship. For Intel, having customers electronically con￾nected brought multiple benefits. First, the com￾pany was able to move resources towards a more efficient and productive technology. Second, sales people no longer needed to hand deliver con- fidential product information as they had in the past. Third, potential sales were enormous, because Intel was dealing with billions of dollars of orders per quarter. 2. Distinctive strategic positioning in the value chain: In 1998, Intel was well positioned with its Pentium processor product lines and enjoyed a distinctive strategic positioning in the market thanks to its unique R&D programs and good supply chain relationships with partners. To further strengthen this position, Intel focused on building on-line relationships with direct customers, including OEMs and distributors. Intel worked hard to convert its system and data from the old vendor￾centric model to the new customer-centric model. Because management, procurement, sales and marketing, and engineering functions of value chain partners and customers all have different informational needs, Intel customized its websites within customer accounts. Being able to deliver personalized information on-line allowed Intel to support multiple levels of the customer organiza￾tion in a manner that best met the individual’s needs. This makes it easier for every customer to do his/her own research and to take appropriate action. Customers visiting the Intel extranet website now find their name and specific applications available to them, based on their personal profile. This user profile allows a customer to obtain con- fidential information important to him or her alone. 3.4. E-business deployment The initial e-business pilot system launched in 1998 consisted of 240 one-stop shopping sites for customers around the world. Using an iterative development approach to build the system, Intel’s e-business web￾site was serving more than 350 top customer accounts and thousands of individual users within the first year. Personalized data and applications were tailored to users’ needs to provide an individualized experience Fig. 2. 3.5. Quick deployment of access manager application One of the early incremental development efforts at Intel after the launch of their e-business website was an Access manager application that automated the creation of account user IDs and passwords to access the unified environment known as the ‘‘Landing Zone.’’ In the past, Intel account supervisor often spent over an hour in creating user IDs and passwords for a new customer. With the Landing Zone environ￾ment, Intel customers may log into one place and have access to many other intra/extranet sites; this conve￾nience attracted many users. ‘‘The people want to come to the environment because it offers these common services of security and entitlement ...’’ commented M. Kantipudi, the B2B Platform and e￾Content Application Manager of Intel’s Sales and Marketing Application Group. D.D. Phan / Information & Management 40 (2003) 581–590 585

DD. Phan/Information Management 40(2003)581-590 He Edt View Favorites Tools Help ④图备 ④·回③只 Addressjahttp://developer.ntel.com/sites/developer/jindex.tm7id=corporate+header_developEra oGoLnks United states Home Select a Location Site Map I Contact UsI About * Home Computing"Business per·R Intels products .platforms Developer Site Technical Resources for Your Development Needs c Tools&Resources Community Services Most Popular Tasks Developer Product FAQs Developer N悲e性en a Download Irte software 8 drivers 且esmn nejm Deeper Form (DE End motherboard intommzion Intel2 Eectrorio Design Ks IDF Onine leaming Download Integ Pentium 0 4 Intel Press Technieal BookE hela CommunientiongseminanE s Literture Center Ite D(a Developer N经水 Fnd networking communications Sherman selector Guide eloper Network for processor Spec Ender s Product Chanee Notification Compare fertures of eE a integ Microelectronics serices □□● Internet Fig. 2. Intel,s developer site. 3.6. E-business infrastructure Application development: Intel provided a nu of applications that serve specific needs and has lumber In order to simplify system maintenance and sup- an effort to use off-the-shelf applications [14] port activities, Intel decided to standardize the e- business architecture to one hardware vendor, one 3.7. Deployment problems and challenges operating system, and minimized the number of data base and application vendors. In addition to lower For transaction security, Intel sites allow customers cost, the infrastructure was designed to be flexible and to place and track orders using standard web browsers scaleable as the system grew. with Secure Socket Layer(SSL)encryption. However, Servers: Intels initial e-business system infrastruc- the US government previously banned the export of ture was built around three main clusters of Pentium 128-bit encryption technology to foreign nations. To based servers: web-servers, database servers, and data maintain a strong encryption technology worldwide analysis servers. Standardizing on one hardware ven- without violating this export ban, Intel encouraged its dor simplified maintenance costs, made growth easier, customers to acquire a third-party 128-bit encryption and allowed Intel to interchange components as neces- application developed outside the US for their own try without compatibility issues. protection. Commenting about Intels success in the OS and databases: Intel,s e-business system was deployment of the 128-bit SSL encryption, Phuc standardized on Microsofts Windows NT. For their Than, General Manager of Intel Vietnam, stated: databases, Intel limited its operation to two vendors Intel,s customers in southeast Asia found the use

3.6. E-business infrastructure In order to simplify system maintenance and sup￾port activities, Intel decided to standardize the e￾business architecture to one hardware vendor, one operating system, and minimized the number of data￾base and application vendors. In addition to lower cost, the infrastructure was designed to be flexible and scaleable as the system grew. Servers: Intel’s initial e-business system infrastruc￾ture was built around three main clusters of Pentium based servers: web-servers, database servers, and data analysis servers. Standardizing on one hardware ven￾dor simplified maintenance costs, made growth easier, and allowed Intel to interchange components as neces￾sary without compatibility issues. OS and databases: Intel’s e-business system was standardized on Microsoft’s Windows NT. For their databases, Intel limited its operation to two vendors. Application development: Intel provided a number of applications that serve specific needs and has made an effort to use off-the-shelf applications [14]. 3.7. Deployment problems and challenges For transaction security, Intel sites allow customers to place and track orders using standard web browsers with Secure Socket Layer (SSL) encryption. However, the US government previously banned the export of 128-bit encryption technology to foreign nations. To maintain a strong encryption technology worldwide without violating this export ban, Intel encouraged its customers to acquire a third-party 128-bit encryption application developed outside the US for their own protection. Commenting about Intel’s success in the deployment of the 128-bit SSL encryption, Phuc Than, General Manager of Intel Vietnam, stated: ‘‘Intel’s customers in southeast Asia found the use Fig. 2. Intel’s developer site. 586 D.D. Phan / Information & Management 40 (2003) 581–590

DD Phan/Information Management 40(2003)581-590 of the 128-bit encryption technology a necessary step applications in the value chain model at Intel are to trust Intels e-business system, especially in nations presented in Fig 3. Major successes are where e-business is relatively new Intel moved uSs 1 billion dollars in revenue to its with the 128-bit encryption model resolved, the project moved forward to deploy the pilot system on-line e-business system in the first 15 days, During the first month of deployment, Intel found that surpassing the companys initial goal of doing this rypted file transfer was very sensitive to packet los in the first 3 months when using SSL security. When packet loss rate The company was able to eliminate most faxes to its exceeded 15%0, the download times for encrypted customers worldwide. For value chain partners in pages skyrocketed. It was critical for Intel to reduce Taiwan alone, this eliminated 45,000 faxes per the packet loss rate to successfully deliver its e-busi- quarter. This produced significant cost savings for ness system. In addition, most of the transmission Intel and its value chain partners in reduced inter- problems at customers national long distance phone costs. onnection between customer's workstations to end After the first month of deployment, Intel continued offices and tandem offices of the telephone compani to receive USS i billion value of orders on-line each One solution was to reduce the number of elements month for the rest of 1998 that had to be transferred through the network. this Independent customer surveys rated Intels e-bus ness at a 94% satisfaction level was done by using data compression and redesigning Intel became the eighth most profitable company in the web pages so that only compressed data had to be transferred. Another solution was to improve connec- the us in 1999 and climbed to the fifth in 2000 tion quality and increase bandwidth between custo- Amid the collapse of many dotcoms and click-and- mers sites and the tandem office. with some mortars in recent years and the 2001 recession, Inte incentives, Intel urged all of its value chain partners remains profitable and retained the value of its to upgrade their connections to ISP servers with high equity. For the year 2001, Intels income was bandwidth pipes and high speed network and routers. USS 1.29 billion. At USs 211 billion. Intel was Despite the strong encryption technology that was the seventh largest US company in market capita- used worldwide within Intels value chain of partner lization values at the end of 2001 [1, 16 ship, Intels choice of Pentium servers and windows Many of Intels employees who participated in the perating systems created some security concerns development of the e-business system continue to System security is only as good as the weakest link receive promotions many years after its successf in the security chain. At Intels e-business system, the deployment. Sandra Morris was promoted to the weak links include Microsoft Windows Operating Sys tems and windows nt networks. Problems caused by hackers on windows-based web-servers are common- 3.9. Lessons learned and success factors place. Fortunately, Intel conducts B2B e-commerce mainly among trusted partners via Virtual Private Net Despite thorough planning by Intel's worldwide works(VPN) and thus its security risks are reduced team, the most significant payoff from deploying the e-business solution was what the company learned 3.8. Success Key success factors ranked by level of importance an On 1 July 1998, Intel officially began taking orders tive strategic position in the market: Intel had the from oem and distribution customers using its new right goals, unique product lines, and was able to personalized websites. This system enabled approxi- deliver a value proposition that is equal or better mately 200 of Intel's customers in almost 30 countries than that of its competitors. Thanks to its distinctive to place orders for Intel products, check product trategic positioning, buyers continue to pay a pre availability and inventory status, receive marketin mium price for Pentium products. By building its and sales information, and obtain customer support in B2B system as early as 1998, Intel further strength real-time, 24 h a day, 7 days a week. Prominent ened its strategic position with value chain partners

of the 128-bit encryption technology a necessary step to trust Intel’s e-business system, especially in nations where e-business is relatively new.’’ With the 128-bit encryption model resolved, the project moved forward to deploy the pilot system. During the first month of deployment, Intel found that encrypted file transfer was very sensitive to packet loss when using SSL security. When packet loss rate exceeded 15%, the download times for encrypted pages skyrocketed. It was critical for Intel to reduce the packet loss rate to successfully deliver its e-busi￾ness system. In addition, most of the transmission problems at customers’ sites were located in the connection between customer’s workstations to end￾offices and tandem offices of the telephone companies. One solution was to reduce the number of elements that had to be transferred through the network. This was done by using data compression and redesigning the web pages so that only compressed data had to be transferred. Another solution was to improve connec￾tion quality and increase bandwidth between custo￾mers’ sites and the tandem office. With some incentives, Intel urged all of its value chain partners to upgrade their connections to ISP servers with high bandwidth pipes and high speed network and routers. Despite the strong encryption technology that was used worldwide within Intel’s value chain of partner￾ship, Intel’s choice of Pentium servers and Windows operating systems created some security concerns. System security is only as good as the weakest link in the security chain. At Intel’s e-business system, the weak links include Microsoft Windows Operating Sys￾tems and Windows NT networks. Problems caused by hackers on Windows-based web-servers are common￾place. Fortunately, Intel conducts B2B e-commerce mainly among trusted partners via Virtual Private Net￾works (VPN) and thus its security risks are reduced. 3.8. Success On 1 July 1998, Intel officially began taking orders from OEM and distribution customers using its new personalized websites. This system enabled approxi￾mately 200 of Intel’s customers in almost 30 countries to place orders for Intel products, check product availability and inventory status, receive marketing and sales information, and obtain customer support in real-time, 24 h a day, 7 days a week. Prominent applications in the value chain model at Intel are presented in Fig. 3. Major successes are: Intel moved US$ 1 billion dollars in revenue to its on-line e-business system in the first 15 days, surpassing the company’s initial goal of doing this in the first 3 months. The company was able to eliminate most faxes to its customers worldwide. For value chain partners in Taiwan alone, this eliminated 45,000 faxes per quarter. This produced significant cost savings for Intel and its value chain partners in reduced inter￾national long distance phone costs. After the first month of deployment, Intel continued to receive US$ 1 billion value of orders on-line each month for the rest of 1998. Independent customer surveys rated Intel’s e-busi￾ness at a 94% satisfaction level. Intel became the eighth most profitable company in the US in 1999 and climbed to the fifth in 2000. Amid the collapse of many dotcoms and click-and￾mortars in recent years and the 2001 recession, Intel remains profitable and retained the value of its equity. For the year 2001, Intel’s income was US$ 1.29 billion. At US$ 211 billion, Intel was the seventh largest US company in market capita￾lization values at the end of 2001 [1,16]. Many of Intel’s employees who participated in the development of the e-business system continue to receive promotions many years after its successful deployment. Sandra Morris was promoted to the CIO position. 3.9. Lessons learned and success factors Despite thorough planning by Intel’s worldwide team, the most significant payoff from deploying the e-business solution was what the company learned. Key success factors ranked by level of importance are: Building and continuing to strengthen their distinc￾tive strategic position in the market: Intel had the right goals, unique product lines, and was able to deliver a value proposition that is equal or better than that of its competitors. Thanks to its distinctive strategic positioning, buyers continue to pay a pre￾mium price for Pentium products. By building its B2B system as early as 1998, Intel further strength￾ened its strategic position with value chain partners. D.D. Phan / Information & Management 40 (2003) 581–590 587

DD. Phan/Information Management 40(2003)581-590 Firm I ucture: Administration and management distributed financial and planning On-line personnel and benefits administration, sharing and dissemination of company informa time and expense reportin Technology Development rosettanet standard Common Access Manager with Landing Zone application for access control 28 Bit Third-party SSL Encryption and Global Server ID(GSID) vpn Collaborative product design nowledge sharing with value chain partners On line access of r&d information for sales and services Online direct payment and e-procurement via exchanges and market places. disoPeration Outbound marketing and ERP, integrated Integrated Real time Web based nformation ansactons collaboration n line customer ns ustomers and artners on entory On-line monitoring On-line access ofproduct info, and FOn-line collaboration On-line web ailable for sales elivery schedule features. nd knowledge sharin Online tracking Customer-centric, with value chain ocuremen On-line Id CRM that artner llaboration ers loaded On-line ordering and ustomer profi count website Web based ustomer account Web based order hedule, delivery ustomers account Fig. 3. E-business applications of Intels value chain. Building e-business to complement rather than tionships with value chain partners, Intel strength cannibalize traditional ways of competing: Intels ened its strategic market position e-business system was intended to strengthen its Support from top management: Thanks to the early market, profits, and competitive advantage. Intel sion and support from Andy Grove, all Intel e- was able to fend off lower cost substitute products business teams received necessary resources and with its Celeron products while maintaining good cooperation to develop and test the new system profit margins on its Pentium lines. By continuin Focusing on quality of connections: For a global to maintain innovation and tight supply chain rela company like Intel, connectivity can be a real

Building e-business to complement rather than cannibalize traditional ways of competing: Intel’s e-business system was intended to strengthen its market, profits, and competitive advantage. Intel was able to fend off lower cost substitute products with its Celeron products while maintaining good profit margins on its Pentium lines. By continuing to maintain innovation and tight supply chain rela￾tionships with value chain partners, Intel strength￾ened its strategic market position. Support from top management: Thanks to the early vision and support from Andy Grove, all Intel e￾business teams received necessary resources and cooperation to develop and test the new system. Focusing on quality of connections: For a global company like Intel, connectivity can be a real Fig. 3. E-business applications of Intel’s value chain. 588 D.D. Phan / Information & Management 40 (2003) 581–590

DD Phan/Information Management 40(2003)581-590 challenge, especially in parts of Europe and Asia. must be paid to the reliability of Intel's PC servers. After its deployment, Intel tested connectivity with Rapid improvements in technology and competitive nificantly in different countries, Intel network engi- to market without having thorough inn jiabi n ob. e6 customers in a real production environment on a environment have forced many software vendors frequent basis. Because performance can vary sig- shorten development cycle and rush software prod neers worked hard to help customers keep up their The decline of Windows system ty was network connections. While it was not Intels observed by Larry Constantine responsibility to install high quality connections between value chain partner's sites to local tandem When we look back over the evolut offices and ISPs, helping some partners to upgrade ware, we see fewer clearly defined landmarks, heir connection bandwidth was crucial to Intel,s and what dominates the landscape is the deployment success during the first year. le support and customer train- less reliable systems loaded down with a panoply ing: In order to promote e-business cooperation to of bewildering features of questionable utilit value-chain partners, Intel built an e-business case Ironically, even as hardware has become study website to educate its partners. Intel also increasingly reliable and dependable, software developed on-line training to reduce the number has become far less so. It has been years since I of support calls. Intel engineers also provided basic have had to deal with a disk crash, yet hardly training to its customers in many parts of the world day passes without the operating system and Deploying the best security protections: Despite the application software conspiring to crash one or export ban of the US government, Intel required more of the machines in my office. A 6-year-old 128-bit encryption technology to be used world machine that serves as our firewall sits with its wide from the start, ahead of many US companies disk spinning away 24/7 for years with nary a Along with firewalls, VPN, access restrictions, and glitch, yet Windows goes brain-dead if it is not security audits, Intel provided adequate security, booted at least once a week 3 privacy, and confidentiality to customers and value Second. pc workstations and pc-based networks chain partners in using its e-business system are more vulnerable to security break-in or virus attack Building and maintaining solid e-business archi- due to its relatively simple architecture. Reliability cture: A robust system will allow e-business to nd security are important factors in building trust move ahead quickly. By separating front-end func- from Intel,s B2B partners. A failure of delivery on tionality of the website from back office systems, mission critical products could shut down a factory of applications were developed for customers with Intels customers and cause them to look for substitute frequent updates without being affected by enter- products. An error in the database could cause incor rect parts to be shipped at the wrong time at an Following good e-business project management incorrect price. Therefore, using PCs as servers to strategies: Having clearly defined scopes, goals, support mission critical B2B operations is risk and requirements, and following an iteration Because it is in Intel,s interests to promote the use approach during the development of Intel's e-busi- of PCs it must take extra measures to maintain the ness system helped them to avoid many traditional reliability and security of its e-business servers software engineering problems, such as schedule delays, cost overruns, and failure to meet user requirements. Intel strategies of"build a little, test 4. Conclusions a little and"walk first. run later worked With rapid advances in technology, novel ways 3. 10. Room for improvement business process redesign, which include entering the e-business marketplace have emerged. Organizations Despite the successes, there is still room for today frequently redesign their processes in ways that improvement of Intels e-business. First, attention provide competitive advantage

challenge, especially in parts of Europe and Asia. After its deployment, Intel tested connectivity with customers in a real production environment on a frequent basis. Because performance can vary sig￾nificantly in different countries, Intel network engi￾neers worked hard to help customers keep up their network connections. While it was not Intel’s responsibility to install high quality connections between value chain partner’s sites to local tandem offices and ISPs, helping some partners to upgrade their connection bandwidth was crucial to Intel’s deployment success during the first year. Providing worldwide support and customer train￾ing: In order to promote e-business cooperation to value-chain partners, Intel built an e-business case study website to educate its partners. Intel also developed on-line training to reduce the number of support calls. Intel engineers also provided basic training to its customers in many parts of the world. Deploying the best security protections: Despite the export ban of the US government, Intel required 128-bit encryption technology to be used world￾wide from the start, ahead of many US companies. Along with firewalls, VPN, access restrictions, and security audits, Intel provided adequate security, privacy, and confidentiality to customers and value chain partners in using its e-business system. Building and maintaining solid e-business archi￾tecture: A robust system will allow e-business to move ahead quickly. By separating front-end func￾tionality of the website from back office systems, applications were developed for customers with frequent updates without being affected by enter￾prise-type applications. Following good e-business project management strategies: Having clearly defined scopes, goals, and requirements, and following an iteration approach during the development of Intel’s e-busi￾ness system helped them to avoid many traditional software engineering problems, such as schedule delays, cost overruns, and failure to meet user requirements. Intel strategies of ‘‘build a little, test a little’’ and ‘‘walk first, run later’’ worked. 3.10. Room for improvement Despite the successes, there is still room for improvement of Intel’s e-business. First, attention must be paid to the reliability of Intel’s PC servers. Rapid improvements in technology and competitive environment have forced many software vendors to shorten development cycle and rush software products to market without having thorough integration testing. The decline of Windows system reliability was observed by Larry Constantine: When we look back over the evolution of soft￾ware, we see fewer clearly defined landmarks, and what dominates the landscape is the relent￾less trend toward ever larger, more complex, and less reliable systems loaded down with a panoply of bewildering features of questionable utility ... ... Ironically, even as hardware has become increasingly reliable and dependable, software has become far less so. It has been years since I have had to deal with a disk crash, yet hardly a day passes without the operating system and application software conspiring to crash one or more of the machines in my office. A 6-year-old machine that serves as our firewall sits with its disk spinning away 24/7 for years with nary a glitch, yet Windows goes brain-dead if it is not rebooted at least once a week [3]. Second, PC workstations and PC-based networks are more vulnerable to security break-in or virus attack due to its relatively simple architecture. Reliability and security are important factors in building trust from Intel’s B2B partners. A failure of delivery on mission critical products could shut down a factory of Intel’s customers and cause them to look for substitute products. An error in the database could cause incor￾rect parts to be shipped at the wrong time at an incorrect price. Therefore, using PCs as servers to support mission critical B2B operations is risky. Because it is in Intel’s interests to promote the use of PCs it must take extra measures to maintain the reliability and security of its e-business servers. 4. Conclusions With rapid advances in technology, novel ways of business process redesign, which include entering the e-business marketplace have emerged. Organizations today frequently redesign their processes in ways that provide competitive advantage. D.D. Phan / Information & Management 40 (2003) 581–590 589

DD. Phan/Information Management 40(2003)581-590 However, gaining competitive advantage requires building on the proven principles of effective strategy. Key success factors include maintaining distinctive Digital Markets, McGraw-Hill. New York, 1998. strategic positioning, using e-business technology to [6] J Pfeffer, G.R. Salancik, The Extemal Control of Organiza improve efficiency and competitive advantage, main- tions: A Resource Dependence Perspective, Harper Row taining support from top management, putting empha New York, 1978, pp. 92-184 is on the quality of e-business op [71 J. Pfeffer, Organization and Organization Theory, Pitman, maintaining good oston. 1982. [8 DD. Phan gel, J.F. Although one can argue that the spectacular suc- field survey and OS/ cesses of many e-businesses may be due to the study, Information and Man 28,1995,pp.271-28 advance of e-commerce today, we have seen that those 91 M. Porter, Competitive Advantage, Free Press, New York, who abandoned fundamental ways of competing even 1985 tually fail. Good e-business strategies have contribu [10] M. Porter, Strategy and the Internet, Harvard Business Review, March 2001, pp 63- ted to Intel's long lasting and solid financial success [11 w.D. Raisch, The e-Marketplace: Strategies for Success in By using e-business to enhance its distinctive posi- 2B. McGraw-Hill. New York, 2001 tioning, operational efficiency, and competitiveness [12] M. Scarborough, J. Spatarella, Getting behind the business of Intel has continued to strengthen its strategic position ectronic commerce, Joumal of Cash Management 18(4) in the global market. 1998,pp.42-46 [13 J.A. Senn, Capitalization on Electronic Commerce, Inform The strategies and success factor on Systems Management, Summer 1996. can help managers to develop and integrate e-business [14] P.T. Than, in: Proceedings of the IT@Edu2000Conference technology into their overall business on Intel Corporation: The E-Business Payoff, Ho Chi Minh City, Vietnam, 6-7 January 2000, p 202. [15] E. Turban, J. Lee, M. Warkentin, H. Chung, Electronic Commerce 2002: A Managerial Perspective, Upper Saddle Acknowledgements River, Prentice-Hall, Englewood Cliffs, NJ, 2002 [16] The Wall Street Journal, The 100 biggest companies in this The author would like to thank mr. phuc t. Than years scoreboard, The Wall Street Journal, 25 February 2002 General Manager, and his staff at Intel Vietnam, in collaboration with the Information Technology Department, College of Natural Science, Ho Chi Minh Dien D. Phan is a professor at the Business Computer Information System City National University, Vietnam for the help to t. Cloud State University and Nicole onduct this stud Maria Stata visiting professor in MIS at the School of Business, University of Vermont. He received the bs degree from St Cloud State University, the MBA from References the University of Minnesota, and the PhD degree from the Ur [1 Bus ek, Corporate Scoreboard, Business Week. Before joining the faculty of the Minne- 2001,p.60. ota State University System, he worked [2] G.R. Carroll, Organizational Ecology. Annual Review of at IBM er. mn. as a software architect in the IBM Management Architecture Group. His interests 13 L. Constantine, Back to the Future. Communications of the ngineering, project management, group collabora- ACM, March 2001, Pp 126-129 tion. and e commerce

However, gaining competitive advantage requires building on the proven principles of effective strategy. Key success factors include maintaining distinctive strategic positioning, using e-business technology to improve efficiency and competitive advantage, main￾taining support from top management, putting empha￾sis on the quality of e-business operations, and maintaining good system security. Although one can argue that the spectacular suc￾cesses of many e-businesses may be due to the advance of e-commerce today, we have seen that those who abandoned fundamental ways of competing even￾tually fail. Good e-business strategies have contribu￾ted to Intel’s long lasting and solid financial success. By using e-business to enhance its distinctive posi￾tioning, operational efficiency, and competitiveness, Intel has continued to strengthen its strategic position in the global market. The strategies and success factors discussed here can help managers to develop and integrate e-business technology into their overall business. Acknowledgements The author would like to thank Mr. Phuc T. Than, General Manager, and his staff at Intel Vietnam, in collaboration with the Information Technology Department, College of Natural Science, Ho Chi Minh City National University, Vietnam for the help to conduct this study. References [1] BusinessWeek, Corporate Scoreboard, BusinessWeek, 26 February 2001, p. 60. [2] G.R. Carroll, Organizational Ecology, Annual Review of Sociology, August 1984. [3] L. Constantine, Back to the Future, Communications of the ACM, March 2001, pp. 126–129. [4] Intel Corp., http://www.intel.com/eBusiness/estrategies/en￾abling/, January 2000. [5] W. Mougayar, Opening Digital Markets, McGraw-Hill, New York, 1998. [6] J. Pfeffer, G.R. Salancik, The External Control of Organiza￾tions: A Resource Dependence Perspective, Harper & Row, New York, 1978, pp. 92–184. [7] J. Pfeffer, Organization and Organization Theory, Pitman, Boston, 1982. [8] D.D. Phan, D. Vogel, J.F. Nunamaker, Empirical studies in software development projects: field survey and OS/400 study, Information and Management 28, 1995, pp. 271–280. [9] M. Porter, Competitive Advantage, Free Press, New York, 1985. [10] M. Porter, Strategy and the Internet, Harvard Business Review, March 2001, pp. 63–78. [11] W.D. Raisch, The e-Marketplace: Strategies for Success in B2B, McGraw-Hill, New York, 2001. [12] M. Scarborough, J. Spatarella, Getting behind the business of electronic commerce, Journal of Cash Management 18 (4), 1998, pp. 42–46. [13] J.A. Senn, Capitalization on Electronic Commerce, Informa￾tion Systems Management, Summer 1996. [14] P.T. Than, in: Proceedings of the IT@Edu2000 Conference on Intel Corporation: The E-Business Payoff, Ho Chi Minh City, Vietnam, 6–7 January 2000, p. 202. [15] E. Turban, J. Lee, M. Warkentin, H. Chung, Electronic Commerce 2002: A Managerial Perspective, Upper Saddle River, Prentice-Hall, Englewood Cliffs, NJ, 2002. [16] The Wall Street Journal, The 100 biggest companies in this year’s scoreboard, The Wall Street Journal, 25 February 2002, p. B8. Dien D. Phan is a professor at the Business Computer Information Systems, St. Cloud State University and Nicole Maria Stata visiting professor in MIS at the School of Business, University of Vermont. He received the BS degree from St. Cloud State University, the MBA from the University of Minnesota, and the PhD degree from the University of Arizona. Before joining the faculty of the Minne￾sota State University System, he worked at IBM Rochester, MN, as a software architect in the IBM’s Distributed Data Management Architecture Group. His interests include software engineering, project management, group collabora￾tion, and electronic commerce. 590 D.D. Phan / Information & Management 40 (2003) 581–590