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.