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