IT-Intensive Value Innovation in the Electronic Economy: Insights From Marshall Industries1
El Sawy, Omar A., Malhotra, Arvind, Gosain, Sanjay, Young, Kerry M.
Management Information Systems Quarterly · 1999 · Volume 23 · Issue 3
Abstract
The emerging electronic economy is bringing with it new forms of IT-enabled intermediation, virtual supply chains, rapidly changing electronic commerce technologies, increasing knowledge intensity, and unprecedented sensitivity for time-to-market by customers. Customers are demanding more value, customized to their exact needs, at less cost, and as quickly as possible. The enterprises that will survive in such a demanding environment will need to innovate and invent new ways of creating value, and will require different enterprise architectures and different IT infrastructures. This article focuses on providing a framework for guiding an enterprise as it transforms itself to function more effectively in the electronic economy. Using the distribution industry in general and Marshall Industries in particular as a context, the article draws insights for transforming an extended enterprise's architecture and its IT infrastructure to enable new ways of creating value in the electronic economy. The article provides a staged junction box model for guiding the transformation and also articulates the elements of the new value logic for enterprises in the electronic economy.
Keywords
Electronic value chains, electronic economy, intermediation, distribution industry, supply chain management, intranet, extranet, Internet, electronic commerce, value innovation, time-based competition, fast response, CIO, IT architecture, strategic information systems, total quality management, systems approach, e-business, AF0101, AF10, AH05, CA09, DA06, DA10, DD0, DD05, DD0402, EG, EL06, FA, FB04, FC02, GA01, HA07
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