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Int. J. Innovation and Regional Development, Vol. 4, No. 1, 2012
Towards a systematic e-business excellence framework Loukas K. Tsironis* Technical University of Crete, Kounoupidiana, Campus, 73100, Chania, Crete GR, Greece E-mail:
[email protected] *Corresponding author
Alexandros G. Psychogios City College, An International Faculty of The University of Sheffield, 13 Tsimiski Str., 54624, Thessaloniki, Greece E-mail:
[email protected] Abstract: E-business is about more than just technology. It’s about thinking what your customers need and adopting web-enable and other information and communication technologies to increase business performance and success. Web-based technologies can be used to build relationships with customers, automate ordering, allow secure payment, speed processes and significantly reduce costs. Whatever the nature of the business and its deliverables (i.e., goods, services, or even parts to a factory), a coordination of its activities using technology is needed in order to make the most of streamlined and tightly integrated business processes. Therefore, it is essential for the e-business organisations to run in a business excellence environment. This paper seeks to present and explain a proposed systematic framework that enables organisations to develop self-assessment processes towards e-business excellence. Keywords: e-business excellence; excellence framework; self-assessment. Reference to this paper should be made as follows: Tsironis, L.K. and Psychogios, A.G. (2012) ‘Towards a systematic e-business excellence framework’, Int. J. Innovation and Regional Development, Vol. 4, No. 1, pp.28–43. Biographical notes: Loukas K. Tsironis is a Lecturer in Management Systems, in the Technical University of Crete. He holds a first degree in Forestry and Natural Environment (Aristotelian University of Thessaloniki) MSc and PhD in Engineering Management Systems from the Technical University of Crete. He is a Scientific and Project Manager in the Management Systems Laboratory. His research interests extended in the enhancement of TQM methodology with new technologies such as machine learning (ML) and knowledge discovery from databases (KDD), on which he recently published several articles in journals and refereed conferences. Alexandros G. Psychogios is a Senior Lecturer on Management and HR and Academic Research Coordinator in the Department of Business Administration and Economics of City College, International Faculty of the University of Sheffield. Moreover, he is an Adjunct Lecturer at the Hellenic Open University and Associate Researcher in GNOSIS Research Group of the Management Copyright © 2012 Inderscience Enterprises Ltd.
Towards a systematic e-business excellence framework
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School at University of Liverpool. His research interests are associated with quality management programmes/total quality management and their impact on HR, strategic HRM, knowledge management, organisational complexity, change, and development, and public services management.
1
Introduction
E-business excellence is the systematic use of quality management principles and tools in order to improve performance, based on the principles of customer focus, stakeholder value, and process management. The term e-business excellence, as it is used in the current article, includes not only a specific operation within organisations but it applies to describe an organisation as a whole. In other words, it describes an organisation which produces services based in e-business processes. Thus, organisations need to be able to measure the level of e-business performance and to decide on the right way to follow to reach the excellence. This is why an appropriate framework is needed. This framework can be used as a protocol of measurement indices. It does not propose, in normative terms, any guidelines of how the organisation should do things, but it can be used as an instrument to discover improvement opportunities, hidden weaknesses and to measure organisational performance in critical matters. The measurement of e-business excellence level is operational through the process of self-assessment. In the business management literature, there are several frameworks which measure the business excellence level. Some examples are the European Foundation of Quality Management Excellence Model (EFQM), the Malcolm Baldridge framework and the model developed by the W. Edwards Deming Institute. The idea is that you conduct a self-assessment by comparing your organisation to the model. The model presents a plausible logic. Business excellence refers to the application of quality management strategies, techniques and tools to achieve best-class performance in managing business. The best performance in business can be realised by identifying suitable performance measures and metrics, systematically measuring the performance, comparing the performance with the best-in-class performing companies and, eventually, determining the best practises and their effective implementation framework. Some of the best practises should include continuous and breakthrough improvement, proactive management, and management by objective and facts. Moreover, business excellence is a way of discovering improvement opportunities within the organisation. These opportunities might lead decision makers to direct organisations and/or processes to business process reengineering (BPR). In addition, web-based and information technology as well as computer systems evolvement changed the rules of the market. The results were obvious: business were affected as a coherence of a totally new coming era. Competition between businesses became stronger as each of them tries to find and to pursue new directions in order to become leaders in e-business field (Alshamlan, 2006). Taking as a fact the evolution of the information technologies (IT), it is obvious that new methods of BPR are created (Davenport and Short, 1990). Among the potential enablers of BPR is IT. IT manages obtain improvements in BPR, though not just by itself. IT can contribute in making changes promoted by reengineering, and, therefore, it can be considered as an enabler of BPR. There are several studies that show IT as a fundamental facilitator of process
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redesigning (Naisbitt and Aburdene, 1985; Davenport and Short, 1990; Hammer, 1990; Harrington, 1991). Usually businesses integrate internet technologies in their processes and redesign them by adding elements, which will make them more competitive (Phan, 2003). The result is better communication in the interior of a business as well as with the suppliers, which contributes to better evaluation of new opportunities (Alshamlan, 2006). E-business refers to the rules according to which business transactions can be successfully completed, based on a steady, strong and wireless infrastructure network (internet). E-business is characterised by Kasmai and Iijima (2002): •
high connectedness
•
focus on transactions
•
value on information for goods and networks
•
high accessibility and information abundance.
As far as the different e-business categories are concerned, the following ones can be distinguished: business to business (B2B), business to consumer (B2C), consumer to business (C2B), consumer to consumer (C2C), people to people (P2P), government to citizen (G2C), citizen to government (C2G), exchange to exchange (E2Ε) and inter-organisation. Each transaction in e-business should be electronically completed, via computer systems and internet, apart from the face-to-face transactions. Furthermore, the main three categories of e-business applications are the following (Phan, 2003): 1
e-purchases or e-market places: buy and sell goods and services
2
inter-organisational systems: making more easy the inter and intra-organisation flow of goods, services, information, communication and cooperation
3
customer services: guidance, complaints and orders management.
E-business can offer many different opportunities such as the improvement of existing interior procedures as well as the reduction of transaction cost. More advantages can be found in the increment of opportunities inside a totally free market, all day services as well as immediate and accurate information exchange. In addition, there are disadvantages mainly related to the geographic placement of a business and internet’s capabilities (Alshamlan, 2006). In order a business to gain a competitive advantage, it is essential to invest on applications and procedures through which will enhance operational improvements. It is also essential to invest on new ideas enhancing organisational, capabilities that will improve customer satisfaction in turn. All this process can be summarised in the term e-business excellence. In other words, ‘E-Business Excellence’ is the principles and the procedures aiming at the fulfilment of business targets (customer satisfaction and loyalty, as well as profitability). The main factors involved are (Barua et al., 2000):
Towards a systematic e-business excellence framework •
systems integration
•
process automatisation
•
friendly IT systems – suppliers –human resource
•
friendly transaction systems – suppliers
•
processes which target to customers – suppliers.
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An organisation is important to continuously estimate, control and evaluate its status, and processes .Moreover, it is always important to re-approach its target and to re-schedule its processes. In this respect, the present study aims in presenting and explaining a conceptual systematic e-business excellence framework. The proposed framework consists of a 12 criteria. Each criterion consists of a number of sub-criteria. Each sub-criterion follows a specific measurement procedure. The proposed framework developed after a thorough review of the related literature.
2
The proposed framework
The proposed framework is illustrated in Figure 1. The framework constitute of 12 criteria. Each criterion is organised in a number of sub-criteria. Criteria and sub-criteria definitions were based on literature review and were oriented toward the formulation of a rich set of criteria and sub-criteria. The framework can be seen as a group of criteria that organisation should measure through a systematic self-assessment process. The 11 criteria are used by the organisation in order to describe and to measure the way of doing things and the last criterion (results) is used to measure the results of their attempts. Criteria and sub-criteria composing a systematic self-assessment tool. The elements that contribute to e-business excellence are interdependent and, thus, the definitions of criteria and sub-criteria are also interdependent. The author selected to work with a large set of criteria that allows users to find what they would like to see in a self-assessment. Nevertheless, the field lacks a standardised lexicon.
2.1 Criterion 1: leadership The term leadership could be defined as: “The person or the persons who have the necessary knowledge about organization’s management and the processes that take place in it so as to guide the other managers” (Li and Huang, 2004). Proper leadership ought to give guidelines to employees and help them to perform following organisational vision. The contribution of web technologies in this process is critical (Huang et al., 2005). Capable leadership is an important factor for the success of an e-business. Business leaders are responsible for the integration of the existing processes in an e-business environment. Leaders should be conversant of the way an organisation is managed and ought to support process scheduling (Li and Huang, 2004). Dimensions or sub-criteria in leadership are summarised in Table 1.
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Figure 1 The proposed e-business excellence framework (see online version for colours)
Towards a systematic e-business excellence framework Table 1
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Sub-criteria of leadership
Sub-criteria
Definition
Vision
E-business successful approaches have been based on a clear vision which consist the starting point for the development and the implementation of strategic decisions (Fischer et al., 2001; Huang and Lee, 2005).
Setting goals and defining strategy
Every e-business organisation should adopt and evaluate new opportunities. These opportunities should be connected with strategic goals. A new strategy must be based in this new inbound information. In every case, the strategic planning is connected to information that comes from the internal (i.e., employees) and the external environment (i.e., competitors). This information should be analysed. By doing that, it is possible to watch the emerging new strategies that their competitors import. Thus, this can help a business to be at least one step ahead of their competitors (Li and Huang, 2004).
Personal involvement and commitment of top management
The impersonal implementation of strategy or the effort from a single department without having the guidance and the personal commitment of the leadership does not consist the most appropriate way of acting and drives e-business actions away from success and excellence (Kalakota and Robinson, 2000).
Define the role of management
The vision of leadership and the definition of strategy are closely connected to the top management. The management should organise all this ideas and strategies and define the competences and the responsibilities of the company and its members. An effective management can give a strong advantage in the system of e-business (Li and Huang, 2004). Managers possess key-posts in business. Thus, their selection is cardinal for successful organisation running. Manager’s role, their responsibilities and their competences should be explicitly defined. They should also define the role and the responsibilities of each member of their team (Li and Huang, 2004).
Process planning Planning of processes includes: definition of managers competences and obligations considering the confinements that a business goal and strategy will meet. Planning of processes contains every business activity. Leadership is responsible for the integration of business processes. Leadership should be aware about the information system abilities and should support the whole business cost, the requirements and the planning of processes (Li and Huang, 2004).
2.2 Criterion 2: strategic planning Strategic planning is an operation that allows the coordination and the control of business processes in order to achieve a specific goal. Every change in the organisation affects everything within it. Indispensably, organisations introduce and follow specific strategies that are depended on their goals. The best strategy is the one that is determined according to the potentials and the capabilities of an organisation. Besides this, a strategy can contribute to better understand the market, as well as to develop the direction that satisfies the objectives of e-business (Huang and Lee, 2005). Dimensions of strategic planning are summarised in Table 2.
34 Table 2
L.K. Tsironis and A.G. Psychogios Sub-criteria of strategic planning
Sub-criteria
Definition
Understanding of the internal environment
The strategic planning is based on the diagnosis of internal (e.g., employees, administration and processes) and external environment of business (e.g., collaborators, suppliers). The best strategy is defined according to the abilities and the potentials of a business and is driving market in such a way that the main objectives of the business to be accomplished (Huang and Lee, 2005).
Definition, selection and adaptation strategy
A successful e-business organisation presupposes the definition of its strategy (Sadasivam et al., 2002). The determination and the choice of a suitable strategy are essential processes for the development and the growth of an e-business (Huang and Lee, 2005). With reference to development of e-business strategy, it is important the examination of BPR methodology (Alshamlan, 2006). Moreover, e-business strategies must examine how organisation faces up these processes that enforce e-business: collaborators, employees, government, community and customers. E-business is strengthened by the improvement of business processes via the progress of technology, the knowledge management, the management of relations and confidence in direct transactions (Jutla et al., 2001).
Process programming and integration
A system which will integrate the applications is essential. The integration procedure acts like a machine which manages, routes, and transforms the information (Kalakota and Robinson, 2000). The term integration is referring to a platform which facilitates the connection and use of the organisation’s software with its various departments (Norris et al., 2000).
Resource management
The successful resource management increases the efficiency of an organisation (Huang et al., 2005).
Adoption of changes
Change of attitude and fast response of an e-business to the new market trend (Huang and Lee, 2005; Viehland, 2000).
Outsourcing
Reduce of cost and time, creation of a virtual business (Viehland, 2000).
2.3 Criterion 3: processes E-businesses consist of many different processes and functionalities. The processes connect the corresponding department with suitable software and computer systems. Also, they work under specific tactics and make efforts to achieve specific goals (Madu and Madu, 2003). It is well-known that organisation’s attribution is increased when the gap between its customers, its internal processes and its suppliers is bridged (Kalakota and Robinson, 2000). So, it is necessary, every business process to be delimited and to be defined with regard to individual objectives of each activity. An ineffective process planning is resulted from the lack of comprehensive processes. E-business excellence is achieved when a good planning and support of business processes have been made. In addition, the knowledge of market is necessary and when changes are required, the organisation should reengineer its business processes (Li and Huang, 2004). The dimensions of processes are summarised in Table 3.
Towards a systematic e-business excellence framework Table 3
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Sub-criteria of processes
Sub-criteria
Definition
Development
The e-business must consecrate on a fast and efficient development process (Huang and Lee, 2005).
Integration
The term ‘integration of processes’ refers in suitable software, which renders an accessible communication among all software that individuals use in their departments for the collection of information on all their processes (Norris et al., 2000). Specifically, integration of processes work as an engine that manage, transmit and transform information (Kalakota and Robinson, 2000).
Control
The term ‘control of processes’ means how much effective is the planning and the management of processes. An organisation controls the way the information flows and the integration with other processes. In particular, through control actually attempts to detect possible faults on process evolution as well as if the processes correspond in the needs of e-business. The control reveals if processes need improvements.
Improvement
The processes that have been rejected by control are improved or rejected. The only way to improve a process is by re-defining its critical elements until they bring to the company a desirable result. The improvement of processes should be consecutive, because of the continual alteration of the market.
2.4 Criterion 4: marketing Marketing is the planning and the implementation of strategy of sales, the distribution and the support of a product or a service. It describes all the processes that accelerate the flow of goods or services from the constructor to the consumer. E-business excellence is strongly connected with marketing procedures. Dimensions of marketing are summarised in Table 4. Table 4
Sub-criterion dimensions of marketing
Sub-criteria
Definition
Knowledge of customers, market and products
Customers’ involvement in a marketing discussion is a main element for an increased loyalty and trust levels as well as the rapprochement (Andersen, 2005).
Planning and import of new products
Reduction of similar products and increase of efficiency (Gabrielsson and Gabrielsson, 2004; Webb, 2004).
Note: Dimensions form the sub-criteria identified in Figure 1.
2.5 Criterion 5: knowledge and information management Management of information is a key element for success in the era of information technology. Organisations, which are based on information, could be differentiated from competitors by the effective information management. The way of collection, management and the use of information render profit or loss. The information itself is not sufficient to make this happen. IT is also required (Viehland, 2000). Information management contains activities, processes, decisions, and transactions that occur into an organisation. The information accost to internal and external customers of every organisational department. The possibility of information to remain unexploited or to be
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exploited erroneously has negative consequences for an organisation (Kalakota and Robinson, 2000). In knowledge management it is conducive the integration of processes such as: collection, storage, analysis and distribution of information. It is true that information converts to knowledge. Knowledge is an advantage. So, knowledge is a result of suitable management and treatment of information that is collected by the market and the internal – external environment. Dimensions of Knowledge and information management are summarised in Table 5. Table 5
Sub-criteria of knowledge and information management
Sub-criteria
Definition
Business intelligence
Business intelligence is a strategy that information is converted to knowledge and then transmitted to the employees. The information is spread through organisation transactions with internal and external customers. This empowers the competitive advantage of the organisation (Kalakota and Robinson, 2000). The main target is the improvement of timeliness.
Information management
Information is dispread into organisation and come from internal and external environment. The management of information and the gain of knowledge is done be collecting and storing the information. The collection and storage can be done through an automatic way, with the use of computer systems, where information is marked. This allows their further processing (Kalakota and Robinson, 2000).
Utilisation of suitable technology for information’s elaboration
Expert systems, knowledge bases, helpdesk tools and various IT systems facilitate the processing and the management of the information.
Application of models for select data and data analysis
Suitable techniques elaborate and analyse the information that has been received (Kalakota and Robinson, 2000).
Effective use of information
Effective use of information can be achieved by using the appropriate tools that help a company to improve knowledge management and be closer to business intelligence (Kalakota and Robinson, 2000).
2.6 Criterion 6: technology E-business is the combination of business processes and information technology. If the e-business organisation wants to increase its profit, it is essential to have powerful and standardised informative infrastructure. Information technology should support the applications of e-business so that the process time is decreased and the collaborations become more efficient (Li and Huang, 2004). Dimensions of Technology are summarised in Table 6.
Towards a systematic e-business excellence framework Table 6
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Sub-criteria dimensions of technology
Sub-criteria
Definition
Information system infrastructure (evolution – swiftness – cost)
A good information system infrastructure succeeds reduction of functional cost since the electronic information is usually more precise, up-to-date and easily available (Lal, 2004). In this way, the competitiveness of organisations is strengthened, creating more powerful bonds between customers and organisations (Lal, 2004). Information technology should support the applications of e-business so that process time is decreased and better collaboration conditions are provided (Li and Huang, 2004).
System management and integration (process integration – communication)
Systems management and integration create favourable conditions of communication, directness, and comprehensible data that used by IT systems. A strong and reliable communication system is essential for the success of e-business (Lal, 2004; Dubelaar et al., 2005; Alshawi and Ingirige, 2003; Tan et al., 2005).
Visibility and flexibility
The lack of information visibility and technology flexibility pose a negative result on sales, on customers’ satisfaction and efficiency (Evgeniou and Pontil, 2002).
2.7 Criterion 7: security The security criterion includes the certification of operational transactions, the control of access in resources, such as the web pages for registered or selected users, the encryption of communications and generally the secureness of privacy and the effectiveness of transactions. It is also trust hath many potential customers express their concerns for the issue of security. Dimensions of Security are summarised in Table 7. Table 7
Sub-criteria of security
Sub-criteria
Definition
Transfer of information in intranet and extranet
The secure access in internal networks and applications is a need for all organisations. In order to achieve this, various techniques for data encoding are used (Waite, 2006).
Financial transactions
Commercial transaction through internet must be done in a highly safe environment. Information system security is one of the most important impediments (Chou and Yurov, 2005; Tsiakis and Stephanides 2005).
Customers/ co-operators personal information/data
The personal data of customers and collaborators should be safeguarded from the enterprises and should not be notified into third parties for any reason. Stable and long-lasting commercial cooperation’s were always based on trust (Tsiakis and Stephanides 2005).
Transfer of information in internet
It is required a guarantee of the information that is exchanged. This can be done only by suitable protocols of communication and algorithms of encryption that provide high levels of security.
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2.8 Criterion 8: orientation to customers Organisations try to achieve a successful relationship with their customers. Also, they spend time, money and efforts to ‘gain’ loyal customers. Customer’s satisfaction is very important (Harej and Horva, 2004). Organisation’s main objectives are the satisfaction of their customers, the increase of customer’s loyalty and the attraction of new customers (Madu and Madu, 2003). A successful e-business organisation ought to provide an acceptable environment to its customers. This is achieved via: 1
Giving value to customer.
2
Offering service and satisfaction to customers.
3
Offering personal attention. The personalised websites, the market proposals and the personalised special offers can replace the interpersonal human interaction of a traditional enterprise.
4
Enhance contacts with customers.
5
Enhance methods of self-service.
6
Provide available information, advices, alternative solutions and facilitation about the delivery of products.
The Dimensions of Orientation to customers are summarised in Table 8. Table 8
Sub-criteria of orientation to customers
Sub-criteria
Definition
Customer understanding
An organisation should always analyse customer’s trends and needs as well as to be aware what a customer wants. Customers’ characteristics have been differentiated as well as market needs. Customers require more (Jutla et al., 2001; Harej and Horvat, 2004).
Customer relationship management
CRM includes all the processes and activities that have as a result the customer’s satisfaction. Processes contain the handling of information about customers and suppliers (Barua et al., 2001). CRM uses the technology, so that business coordinates its interaction with customers. The long-term goal of organisation is to keep the faith of their customers (Harej and Horvat, 2004; Jukic et al., 2002).
Quick response
Respond quickly in customers’ requirements is an element that enforces the loyalty and attraction of customers in an organisation (Barua et al., 2001; Huang et al., 2005). Ability to follow an order and deliver it on time. An appropriate IT system is used where it handles all orders, so that most customers are satisfied (Kalakota and Robinson, 2000).
Customer service and support
Customers support and service is demanded so that organisations will operate effectively. Thus, it is important the existence of channels between organisations and customers.
Loyalty and maintenance programmes
Customers’ knowledge allows organisation to face each customer individually. By knowing their customers, organisations achieve to find ways and programmes of loyalty and retention.
Towards a systematic e-business excellence framework
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2.9 Criterion 9: orientation to collaborators Information technology gives the opportunity to organisations to approach suppliers as well as customers. The key is the exchange of information. Organisations should impose a total of strategic changes in their processes, in order to create an environment of reciprocal confidence (Barua et al., 2001). Unfortunately, few organisations have developed effective ways of information exchange via the internet. For example, there is research evidence confirming that only 27% of the organisations share information with suppliers, while only 33% of them have concrete tactics of information exchange with the suppliers (Barua et al., 2001). Dimensions of Orientation to collaborators are summarised in Table 9. Table 9
Sub-criteria of orientation to collaborators
Sub-criteria
Definition
System integration
Supplier integration leads to cost reduction (transaction-production cost) as well as the increase of the effectiveness and trust (Das et al., 2006; Barua et al., 2001).
Improvement of collaborations process
System integration between an organisation and the collaborators creates high perspective for an efficient and better cooperation. The aim of technology is the improvement of existing processes in order the organisation to achieve more efficient collaborations, and in parallel to increase readiness of customers and suppliers (Barua et al., 2001).
Quality of associations
In a competitive environment, effective collaborations constitute one of the most important reasons for success. The responsible behaviour of both sides (organisation-collaborators) can create solid relationships and therefore to focus in commonly beneficial objectives.
Training
In order to cooperate with technology, employees and collaborators should learn the way technology works and should always be informed about the new trends. The only way this can be succeeded is by the frequent training of all parties involved in a company.
2.10
Criterion 10: human resource management
Human resources management (HRM) is a key organisational action. The orientation to human resources constitutes investment for an e-business organisation (Gruman, 2005). HRM includes the establishment and the implementation of rules and activities that help relations between the employees and the organisation. The determination of roles is necessary. Also, the alignment of the strategy of HRM to the business goals is essential. Dimensions of Human resource management are summarised in Table 10.
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Table 10
Sub-criteria of human resource management
Sub-criteria
Definition
Maintain and satisfied human resources
Finding capable employees is a key element in organisational success. Innovative ideas from employees are most times the key to success (Fischer et al., 2001; Alshamlan, 2006).
Explicit determination of roles, responsibilities and relevancies
The roles, the responsibilities and the competences of people that compose the human resources of a business should be determined explicitly. The determination of roles is done by leadership, strategic planning and human resource management. The explicit determination of roles and responsibilities provide rapid excellence in a business.
Human resource participation and obligations
Human resource’s obligation can be achieved if leadership and management accomplish to inculcate business vision to human resource.
Apperception of skills and efforts for personal growth
Organisation should conceive that the employees need personal recognition, development and growth.
Continual training
Organisation should be interested in human resource training (Li and Huang, 2004). Business should diagnose and appreciate the need and demand of human resource for training in combination with its objectives.
2.11
Criterion 11: research and development
Extended research of the market is required as well as research for the requirements of customers, of raw material as well as of all processes that are related to a product. Creative work in a systematic basis is also required in order to increase the amount of knowledge. The research and development is a component of the wider concept of innovation. Dimensions of Research and development are summarised in Table 11. Table 11
Sub-criteria of research and development
Sub-criteria
Definition
Development of new products
The fundamental role of research and development is the creation of new products, that constitute the basic means for the creation of medium-term and long-term profits for an organisation.
Enrichment of existing products
The commercial life of a product can be increased. For example the improvement of its appearance, the reduction of its price or the functionality. Therefore, it is possible for a product to last many years in the market while at the same time money can be saved.
2.12
Criterion 12: results
The way that the organisation performs by following the previously identified criteria and sub-criteria, is evaluated and measured by the results criterion. The results are qualitative and/or quantitative measures that reflect the total productive of the enterprise. We consider that the criterion of results is constituted by the following basic sub-criteria that lead an enterprise to excellence:
Towards a systematic e-business excellence framework •
quality of products and services
•
financial results
•
HRM efficiency
•
cooperations efficiency
•
other indices.
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The outcome of this criterion is related to the total evaluation of the organisation, because it evaluates the performance of the activities that take place in order to apply the previous 11 criteria.
3
Conclusions
This paper addressed the composition of a potential e-business excellence framework. The proposed framework can serve as guidance for self-assessment in e-business organisations. The framework consists of 12 criteria which identify the corresponding organisational areas that concerned under assessment. Each criterion decomposes in several sub-criteria. Each sub-criterion introduces specific measurement context. Self-assessment is a critical process in achieving excellence levels, because it can serve as an effective driver for continuous improvement of performance. By focusing on the satisfaction of the stakeholders (owners, customers, employees, suppliers and society) it enhances the competitiveness of the organisation. Business excellence is the overall objective for the activities, focusing on the journey and not a destination. It is not a state but a good habit that can be established by using self-assessment as a total quality approach for improving performance. Therefore, the proposed e-business excellence model can be seen as a self-assessment framework for measuring the strengths and areas for improvement of an organisation across all of its activities. The term ‘excellence’ is used because the model focuses on what an e-business organisation does, or should do, to provide an excellent service to its customers, service users or stakeholders. The proposed framework is non-prescriptive and does not involve a strict set of rules or standards, but provides a broad and coherent set of assumptions about what is required for a good organisation and its management. Each organisation can use it in its own way to manage and develop improvement, under the control of those who use the methods rather than an external evaluator. Among its possible benefits the following can be noticed: •
The excellence model provides a holistic framework that systematically addresses a thorough range of organisational quality issues and also gives attention to impacts through the ‘results’ criteria.
•
It provides a clear diagnosis of an organisation’s activities and is useful for planning as it makes links between what an organisation does and the results it achieves, highlighting how they are achieved.
•
It seeks to develop a culture of continuous improvement.
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•
There is no requirement for external validation and the excellence model can be used as an internally driven self-assessment tool allowing an organisation to be as honest and open as possible in gauging its performance.
•
‘Scoring’ can provide an organisation with an internal benchmark for its next self-assessment, in order to capture trends. It can also be used among organisations for some external benchmarking and comparison.
•
The excellence model stresses the importance of consensus in assessing an organisation’s strengths and areas to improve.
Beyond the above arguments, more research is necessary in order to bring evidence that can support the application of such a model. Future research can focus in an investigation of the application of each criteria separately or of the holistic implementation of the framework.
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