E-business and organisational change: reconciling traditional values with business transformation

While much attention has recently been focused on the problems facing Internet start-ups, the challenge of e-business affects a much broader constituency of organisations. For established companies, the key challenge is one of change. Such companies must rethink fundamental aspects of company strategy, which may lead to a radical overhaul of existing ways of doing business, with company structure and culture becoming much more customer-focused. Resistance at all company levels may need to be overcome, with a need to build commitment and consensus around e-business strategies. However, companies must also deal with a paradox in e-business change. As the “dot.com” crash showed, there are many strengths in “bricks and mortar” companies. Evolving a new business model based around “e-enablement” must therefore avoid the “baby and bathwater syndrome”. Only by recognising and rising to these challenges and dilemmas, and devoting sufficient time, resources and expertise to them, will companies make a success of their e-business ventures.