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Gunasekaran, Modelling and Analysis of Enterprise Information Systems (pp. 224-248), Hershey, PA: IGI Publishing. Yee, G., & Korba, L. (2005). Semiautomatic derivation and use of personal privacy policies in e-busi- ness. International Journal of E-Business Research, 1(1), 54-69. Zeng, C., Xing, C.X., Zhou, L.Z., & Zheng, X.H. (2004). Similarity measure and instance selection for FROODERUDWLYH¿OWHULQJInternational Journal of Electronic Commerce, 8(4), 115 - 129. Zhang, L-J., Chao, T., Chang H., & Chung, J-Y. (2003). XML-based advanced UDDI search mechanism for B2B integration. Electronic Commerce Research, 3(1/2), 25-42. Zhang, X. & Prybutok, V.R. (2005). A consumer perspective of e-service quality. IEEE Transactions on Engineering Management, 52(4), 461- 477. lxv About the Editor In Lee is an associate professor in the Department of Information Systems and Decision Sciences in the College of Business and Technology at Western Illinois University. He received his PhD from University of Illinois at Urbana-Champaign. He is a founding editor-in-chief of the International Journal of E-Business Research. He has published his research in such journals as Communications of the ACM, IEEE Transactions on Systems, Man, and Cybernetics, IEEE Transactions on Engineering Management, International Journal of Production Research, Computers and Operations Research, Computers and Industrial Engineering, Knowledge and Process Management, Business Process Management Journal, Journal of E-Commerce in Organizations, and International Journal of Simulation and Process Modeling. His current research interests include e-commerce technology development and management, investment strategies for computing technologies, and telecommunications planning and management. Section I Fundamental Concepts and Theories This section serves as the foundation for this exhaustive reference tool by addressing crucial theories es- sential to the understanding of human-computer interaction. Chapters found within these pages provide DQH[FHOOHQWIUDPHZRUNLQZKLFKWRSRVLWLRQKXPDQFRPSXWHULQWHUDFWLRQZLWKLQWKH¿HOGRILQIRUPDWLRQ science and technology. Individual contributions provide overviews of ubiquitous computing, cognitive LQIRUPDWLFVDQGVRFLRWHFKQLFDOWKHRU\ZKLOHDOVRH[SORULQJFULWLFDOVWXPEOLQJEORFNVRIWKLV¿HOG:LWKLQ this introductory section, the reader can learn and choose from a compendium of expert research on the elemental theories underscoring the research and application of human-computer interaction. 1 Copyright © 2009, IGI Global, distributing in print or electronic forms without written permission of IGI Global is prohibited. Chapter 1.1 Identifying E-Business Options Albert Boonstra University of Groningen, The Netherlands Bert de Brock University of Groningen, The Netherlands INTRODUCTION The past few years, many organizations have been using the Internet in quite arbitrary and experi- mental ways. This phase, which can be considered as a period of learning and experimentation, has created a need for a more systematic approach WRWKHLGHQWL¿FDWLRQWKHRUGHULQJDQGWKHDVVHVV- ment of e-business options. It is the objective of this paper to address this need by presenting a methodology that aims at supporting management in using alternative e-business applications in the ¿UVWVWDJHRIWKHdecision-making process. Figure 1 shows how a systematic decision-mak- ing process can be organized by using e-business options. The steps are based on Simon’s intel- ligence, design, and choice trichotomy (Simon, 1960). First, alternative e-business options have WREHLGHQWL¿HGDQGRUGHUHG7KHQWKHSRVVLEOH options have to be assessed and selected. After this stage the selected opportunities have to be VSHFL¿HGDQGGHVLJQHG1H[WLPSOHPHQWDWLRQ operation, maintenance, and evaluation may IROORZ,Q)LJXUHWKLVLVFDOOHGWKH³IRUPDOOLIH F\FOH´:HZLOODSSO\WKHZRUG³HEXVLQHVVRSWLRQ´ referring to the possibility to use an electronic network for a business purpose. An e-business RSSRUWXQLW\LVGH¿QHGKHUHDVDQDVVHVVHGDQG selected e-business option. In practice, different intermediate feedback activities, interrupts, delays and adjustments are often necessary to reconsider earlier steps (Mintzberg, Raisinghani, & Théorêt, 1976). This is—among other reasons—because decision-mak- ing processes of this kind take place in dynamic environments and decisions are made in political contexts (Pettigrew, 2002). Moreover, participants in decision-making processes are often lacking the necessary information to make well-considered decisions right from the start (Miller, Hickson, & Wilson, 1996). In Figure 1 these activities are FDOOHG³LQWHUPHGLDWHIHHGEDFN´ 2 Identifying E-Business Options The methodology presented in this article IRFXVHVPDLQO\RQWKH¿UVWVWDJHRIWKHGHFLVLRQ making process: the LGHQWL¿FDWLRQRIHEXVLQHVV options and the ordering of these options. Further, the focus is only on e-business options in the context of an organization and its current or new external stakeholders. The methodology helps identify e-business options, describe them in a global way by speci- fying each option in six dimensions, and order them according to organization- dependent pri- orities. Only after management has assessed and VHOHFWHGDQRSWLRQFDQ WKLVRSWLRQEHVSHFL¿HG more precisely in order to design an application (see also Figure 1). This methodology aims at contributing to practice as well as to theory. Practitioners, such as (e-business) managers and (e-business) con- sultants, can use the methodology to identify and order e-business options in a systematic rather than an intuitive, imitating or precedent-based way. This methodology can also be used to chal- lenge certain e-business strategies or to consider unconventional alternatives. The contribution to theory is based on the fact that many existing e-business frameworks are directed at the assessment of certain e-business alternatives, but that general approaches address- LQJWKHLGHQWL¿FDWLRQRIHEXVLQHVVRSWLRQVIURP scratch, are still scarce. This argument will be explained in the next section. BACKGROUND Although Chung-Shing Lee’s contribution (2001) of providing a framework to evaluate e-commerce business models is useful, evaluation can only take SODFHDIWHUWKHLGHQWL¿FDWLRQRIRSWLRQVZKLFKLV the focus of this article. formal life cycle intermediate feedback Implementing, operating , m aintaining and evaluati ng e-business opportunities Assessing and selecting e-business options Specifying and designin g e-business opportunitie s Identifying and ordering e-business options F ocus of the article Figure 1. Focus of the article in the light of the desicionmaking context 3 Identifying E-Business Options Barua, Konana, Whinston, and Yin, (2001) introduce an e-business value model that supports management in determining where to deploy RUJDQL]DWLRQDOUHVRXUFHVE\KLJKOLJKWLQJVSHFL¿F areas of opportunity. Barua et al. also emphasize that organizations should not merely concentrate on the existing products or services. They sug- gest that the Internet may open up opportunities to reach new customers and to introduce new products or services. The ideas of Barua are in line with those of $ QV R I I    Z K R L G H Q W L ¿H V S U RG X F W P D U NHW D U H D V  to be focused on by organizations. Ansoff suggests that two important strategic questions of organi- zations are: (1) whether they should focus only on their existing markets and customers or also on new markets and customers, and (2) whether t h e y s h o u ld m e r e l y fo c u s o n e x i s t i n g p r o d u c t s a n d services or also on the development of new ones. With respect to e-business these two fundamental questions are highly relevant, since the Internet makes many organizations rethink their product- market combinations fundamentally. Therefore, these two questions are addressed in the approach as described in this article. Straub and Klein (2001) build on these ideas by stating that e-commerce can produce three FDWHJRULHV RI HIIHFWV ¿UVWRUGHU VHFRQGRUGHU and third-order effects. First-order effects in- volve reducing costs and increasing productivity. Second-order effects concern the pursuit of new markets and improving services, and third order effects lead to far-reaching transformations af- fecting goods and services, ways of targeting as well as distribution (Andal, Cartwright, & Yip, 2003). These issues are also addressed in the methodology as described in this article; they ZLOOEHLGHQWL¿HGH[SOLFLWO\ We can conclude that there are already a considerable number of models that can be used to assess and evaluate current e-business applica- tions and measure their readiness for the future. However, there seems to be a lack of approaches that can help analysts generate options and fu- ture directions regarding utilizing the Internet. The approach as described in this article aims at making suggestions with respect to how such a methodology could take form. METHODOLOGY Dimensions and Elements Organizations can use the Internet as a means of communication with the outside world in different ways. These different ways can be analyzed by distinguishing among the following dimensions: stakeholders groups, stakeholders’ statuses, chan- nel strategies, communication modes, product/ser- vice groups and product/service statuses. These dimensions are derived from the elemen- tary notion that organizations can be perceived as open systems. In order to survive, good rela- tions have to be established with parties in the outside world. For that reason, organizations exchange information to relevant parties in that outside world. These communications may lead to transactions. See Figure 2. In order to generate potential e-business op- WLRQVLWKDVWREHLGHQWL¿HGZLWKZKLFKSDUWLHV in the outside world the organization intends to exchange information. These can be current or new parties, since electronic networks can also be used to extend the reach of organizations. When WKLVRXWVLGHZRUOGKDVEHHQLGHQWL¿HGWKHZD\RI using electronic networks has to be considered. Here we can identify communication modes, chan- nel strategies and (current or new) products and services. These dimensions are further explained in the next paragraph. Dimension #1: (External) Stakeholders Groups Organizations exchange information and com- municate with all external stakeholders, who can be divided in business partners and other . & Lee, H.G. (2003). Business value of B2B electronic commerce: the critical role RILQWHU¿UPFROODERUDWLRQ Electronic Commerce Research and Applications, 2(4), 350-361. /L&/LQJ7$%DVLVIRUWKHVHPDQWLFZHEDQGHEXVLQHVVHI¿FLHQWRUJDQL]DWLRQRIRQWRO- ogy. 350-361. /L&/LQJ7$%DVLVIRUWKHVHPDQWLFZHEDQGHEXVLQHVVHI¿FLHQWRUJDQL]DWLRQRIRQWRO- ogy languages and ontologies. In A. Salam; J. Stevens, Semantic Web Technologies and E -Business: Toward the Integrated Virtual Organization and Business Process Automation. opportunism and radical technol- ogy adoption: An application to e-business. Journal of Marketing, 66(3), 47-60. lxiii Standing, C. (2002). Methodologies for developing Web applications. Information and