Case Study Summaries
This case study examines British TelecomÌs role in trying
to assist the CPD, a consortium that represents purchasing departments
for 1400 local governments in Southern England, with its implementation
of an EDI and X.400 messaging system for its various suppliers.
The CPD attempts to secure best prices and services for schools,
towns, and other governmental groups on items such as paper supplies
or catering services. In particular, the case study discusses
the history of the CPD Project from various stakeholder perspectives,
identifies the major issues surrounding the Project, and then
recommends specific changes that could improve the Project's
future. The problems detailed in the case revolve around 1) organizational
issues such as miscommunications, and 2) technical issues like
inappropriate technology. The recommendations involve 1) changes
to BT's organizational structure, 2) a discussion around
the appropriate backbone for EDI services (i.e., private network
or internet) , and 3) BT's internet vision.
Three key conclusions are drawn in this case study: 1) technology
and organizational design must be considered together if a project
is to be successful, 2) EDI projects that do not have a central
authority can only be successful with an internet backbone, and
3) scenario analysis can be a very useful tool in projects that
involve technology.
British Telecom: The BRICC Project
This case study examines British Telecom's efforts to make
the Broadband Integrated Communications for the Construction Industry
project a major success within the EU. The case study provides
a basic overview of the BRICC Project and its goal of making the
European construction industry more efficient via computer based
knowledge capture and dissemination products and services, a short
history of the Project's failure, as well as some commentary
on what could have been done to correct the failings. The recommendations
involve 1) BT should concentrate on being a telecom firm and not
a solutions provider, 2) good communications are very important
to any project, and 3) expanding the marketplace may sometimes
prove to be a better strategy than gaining market share.
The major conclusion from this project is: no matter how strategically
important a project may be, from a technological or political
perspective, a firm should only pursue those efforts that are
aligned with its core competencies.
Toyota USA
This case study examines American and Japanese car manufacturers'
use of the internet as a strategic communications vehicle. Specifically,
the paper first provides an outline of what the major US and Japanese
car manufacturers are doing on the Web, and then details Toyota
USA's electronic commerce strategy, and concludes with
some recommendations for improving that strategy. The case study
demonstrates that most car sites are pure image home pages as
opposed to commerce based sites and that some are better executed
than others. The recommendations revolve around the importance
of expanding the sites' features to include more information
gathering and commerce capabilities, as well as the need to integrate
the main Toyota Web Page to dealers' pages and other such
sites.
Three key findings are stated in this paper: 1) web sites can
play a strategic role in a company's marketing and sales
efforts, 2) most car manufacturers' home pages are remarkably
similar, and 3) tools such as the Web Presence Continuum can easily
help to map out where they may exist opportunities for differentiation.
DigiCash
This case study discusses the electronic cash industry with a
focus upon DigiCash. Specifically, the paper begins with a short
history about DigiCash and how its particular variety of ecash
works, then outlines the rest of the industry and their ideas
about ecash, and concludes with the strategic challenges facing
DigiCash.
The main features of this case study are its simple and straightforward
explanation about a) how electronic cash works, b) the industry's
history, and c) the different approaches that are now competing
to become the standard for ecash.
Blockbuster Video
This case study examines the video on demand industry in general,
technological trends, and how Blockbuster Video should position
itself for the future. Specifically, the paper begins with a short
history of Blockbuster, an overview of the industry and retail
store operations, then elaborates upon the various technological
trends affecting the industry, what new features and products
Blockbuster has created recently, and finishes with a scenario
analysis coupled with recommendations for Blockbuster. The recommendations
involve an increased commitment to new media via new products
and services that leverage internet based technologies, and a
shift in core competencies away from basic retail to technology
led delivery systems.
The authors articulate the following conclusions: 1) despite the
investment in new technologies in this industry, the consumer
is already quite satisfied with the current VCR based solution,
2) any launch of new products or services like video on demand
will be highly dependent upon other new technologies such as broadband
video maturing, and 3) Blockbuster can both prepare and help create
a future where the VCR is obsolete.
EDICAT, Extended Business Communities at British Telecom
This case study examines how British Telecom created the Electronic
Data Interchange Catalog, an EDI based system that attempts to
streamline the exchange of goods and services between UK based
purchasers and vendors. It outlines both the pros and cons of
using such a system for various stakeholders, and how the notion
of Extended Business Communities is affecting how BT looks at
its customers. In particular, the case raises two major questions:
1) should BT be selling EDICAT to individual customers or to collections
or federations of interested parties (e.g., the legal community)?
and 2) is BT selling a product or a solution?
The EDICAT case addresses three areas: 1) it reveals how a new
technology can force a company to truly revisit what business
it is in and why, 2) it introduces the notion of community versus
individual based selling, and 3) the paper underscores how the
economics of any commercial enterprise can be dramatically changed
by how it positions the product /service that it is providing.
PartLINK Project
This case study examines British Telecom's effort to develop
and market an EDI based product that links auto parts wholesalers
and retailers with manufacturers. In particular, the paper begins
with a synopsis of the current state of PartLINK, the UK auto
parts industry, BT's strategy in this market, and the technical
process involved in PartLINK. The study then provides a history
of the PartLINK and a comparison of this effort with similar American
EDI tools. Finally, the paper discusses lessons learned including:
1) end user input is important in designing one's offering,
2) management plays a crucial role in a project's success,
and 3) technical support is critical when a product is sold to
unsophisticated consumers.
The results of this study are: 1) when developing an electronic
commerce product or service, a low cost strategy is not appropriate,
and 2) three key success factors exist in the EDI world - a) build
commitment from at least one segment of the value chain, b) combine
an easy to use product with high levels of customer support, and
c) minimize the cost to the end user.
Agents, Inc.
This case study examines the current business situation facing
Agents, Inc. from a market opportunity and risk perspective. Specifically,
the paper provides a short introduction to collaborative filtering
technology and the firm's history and business model. It
then documents some potential scenarios for growth such as upgrading
or proliferating its Firefly technology, becoming an ad broker
or data miner, and licensing. Finally, the paper concludes with
the product and industry risks associated with a duplicable technology
and some recommendations.
The key finding in this case study is how collaborative filtering
technology's value is only maximized if it becomes part
of the infrastructure that maximizes the value of the internet.
In other words, in isolation, this technology is very interesting
but, in ubiquity, this technology becomes crucial.
Recreational Software Advisory Council
This case study examines the RSAC internet site rating system,
the technical and political challenges facing the group, its history,
and finally the major strategic issues facing the organization.
Specifically, the paper discusses various revenue generation models
(i.e., rating fee, subscription fee, connection fee, ads), intellectual
property rights and branding, as well as international and partnering
issues.
Highlights from this report include: 1) an internet rating system
will come eventually but may take a long time due to technical,
legal, political, and business reasons, 2) no one revenue model
seems to work for the internet, and 3) the specifics idiosyncrasies
of the internet (e.g., open, global, etc.) make it a difficult
forum to rate.
CUC International: Shoppers Advantage
This case study examines how CUC International: Shoppers Advantage
might leverage the internet to expand its business. In particular,
the paper begins with a short history about CUC, then describes
the Shoppers Advantage business model, and concludes with an opportunity
- risk assessment for the firm about Web based offerings. The
authors recommend that, although much can be gained from adding
Web based capabilities to their current Shoppers Advantage service,
a completely new Web based service is a potentially superior answer
because it is not constrained by an older business model.
The two major conclusions in this paper are: 1) there are many
easy ways to extend an already electronically based shopping service
onto the internet via a traditional 4Ps for the internet methodology,
and 2) duplicating a traditional business on the internet implies
constraints therefore, creating an internet only solution is the
right answer if one truly wants to start an internet based business.
DealerNet
This case study examines how one entrepreneur created a virtual
car showroom on the internet by linking various car dealerships
together under one service. Specifically, the report begins with
an automotive industry scan focusing upon the dealer portion of
the value chain, then documents the DealerNet business model along
with a summary of its major competitors, and concludes with a
set of recommendations to improve DealerNet's current competitive
situation. In particular, the study finds that DealerNet is a
very precarious success heavily dependent upon a strategic partner,
at the mercy of search engines, and without a very sustainable
business model. The authors recommend that DealerNet aggressively
pursue further technologically based advantages while both expanding
its service offering and increasing the involvement of its dealer
partners.
Some points raised in this paper include: 1) extending a traditional
business onto the internet without exploiting the technology does
not provide much competitive advantage, 2) search engines and
other such strategic partnerships are crucial for the success
of certain types of brokerage services, and 3) a marketing presence
is usually the first and one of the least value added steps most
ventures pursue when establishing part of their value chain on
the internet.
CUC International: Auto Vantage
This case study examines CUC's attempt to broker used car
sales on the internet. The paper first provides overviews on CUC,
the auto retailing industry, Auto Vantage, other competitors,
and then concludes with recommendations about how Auto Vantage
can best improve its current market position. In particular, the
report cites the importance of being marketed effectively through
search engine advertising and differentiating the offering versus
competitors.
Two major insights in this paper are: 1) it is important to integrate
on-line service offerings (e.g., AOL) with one's internet
presence in order to best leverage one's electronic commerce
positioning and 2) marketing communications on the Web is still
heavily dependent upon search engine advertising.
Oasis
This case study examines a project by the Motor Industry Marketing
Group and British Telecom to establish an EDI based service that
makes the relationships between automobile fleet leasing companies
and repair garages more efficient and economical. Specifically,
the paper begins with an overview of the various stakeholders
and competitors, a description of Project Oasis, and concludes
with an analysis of the pros and cons of using EDI versus an internet
based EDI solution. The report recommends that Oasis aggressively
pursue vendors to support their EDI service first before competitors
establish any true economies of scale in this market.
The two conclusions from this paper are: 1) traditional business strategies are still very appropriate for electronic commerce based markets and 2) the car servicing and leasing industries in the UK could be dramatically affected by e-commerce.