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Barriers to E-business adoption

Dr. Guillermo Aranda-Mena

school of property construction and project management


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Building Commissionof Victoria

Project Partners andDeliverables

Literature review report

Information BookletInformation Website5 Case Studies:

Qld. D. of Main Road

John Holland Building Commission of Victoria CH2 - Council Housing Melbourne

Newcastle University


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E-business environment


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E-business definition

The undertaking of business related transactions and

information exchanges utilising and electronic format andenvironment (e-MORI 2001).

The creation of networks that act as electronic supply chain

(NOEI 2001)

The creation of commercial efficiency with subsequentbenefits for all stakeholders (Ribeiro 2001).


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Process Description

e-procurement Procuring direct or indirect projects, parts, components, materials, plant services,experts and manpower, as well as handing added services. Disseminating andgathering information about projects, components, services or plant.

e-transactions Transactions across the space between the buyer and seller in the supply chaininvolving, projects, parts, components, materials or plant

e-logistics Delivering parts, components, materials, plant, information, energy to the pointwhere they are needed

e-collaboration Facilitates coordination of various decisions and activities beyond transactionsamong supply chain partners. Collaboration among teams in a virtual space such ascollaborative design, planning and project management. Information across businesspartners such as order, invoices or plans and specifications.

E-business process [NOIE 2003]


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Levels of e-business adoption

by sector[NOIE 2003]

All

M

anufacturing

Building&

Construction

W

holesale

Retail

Transport

Storage

Business

Services

Personal

Services

Use Computers 85% 81% 77% 81% 85% 94% 85%

Internet connected 61% 59% 50% 51% 60% 81% 59%

Place orders using the Internet 17% 14% 7% 17% 17% 22% 20%

Make payment on the Internet 12% 11% 6% 11% 10% 15% 12%

Receive orders using the Internet 15% 14% 6% 15% 25% 15% 20%

Receive payment using the Internet 7% 8% 2% 7% 8% 8% 8%


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Environmental Constrains / Barriers[as by project agreement]

These relate to impediments resulting from the nature of

industrial culture, economic structure, societal relationships and organisational profiles.

These have a direct impact on Technology adoption profile Procurement process Nature of its supply chain and industrial organisation Skills and organisational development Audits of technology and skills would show readinessto organisational uptake of e-business


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E-business environment


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Review of official web sites

Multiple sources both Nationally and Internationally Journal papers Conference proceedings Official websites Review support available including case studies, how to guides

and explanations of major issues (such as security) Government and corporate reports

ie: E-MORI, NOIE, OECD, e-Watch, PWCoopers, Eurostats: e-BI

web referencepaper reference


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Review of official web sites inc. sources of advice


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Government sites


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http://www.mmv.vic.gov.au/

Regional public sector


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http://www.tecc.com.au/tecc/default.asp

Regional private sector


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International

http://www.ebusiness-watch.org/


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International

http://www.itconstructionforum.org.uk/


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International academia

http://www.construct-it.org.ukDr. Guillermo Aranda-Mena

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International

http://www.dti.gov.uk/bestpractice/technology/Dr. Guillermo Aranda-Mena

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Generation of a searchable index ofsome 200 documents on e-businessadoption across sectors.

Academic papers Government reports

Business reports

General articles and reports

Paper review


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Indexing papers



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Content Coding


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Content Coding


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Content Coding


NDNu

Ins

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BarrierBooleanquerycriteria

Numberof

Documents

umberof

stances

Context for interpretation this column provides examples on howindividual instances from search results were contextualised and en relevanceassessed.

Confidence /Trust

confidence^ trust

81 662 Many privacy concerns stem from a fear of the unknown. Participation inelectronic transactions requires a leap of faith for many users. Trust isimportant as customers and SMEs feel they lose control of personalinformation when using electronic technologies for transactions (Brown2002). Lack of confidence and trust contributed to 29% for non-adoption to

an empirical survey and 17% were concerned with uncertainties in contract,delivery and guarantees (Colto 2001).

IT skillstraining /

literacy

Skills &(training |

development)

84 845 PricewaterhouseCoopers (2001) found that the lack of e-commerce skills andtraining were the main internal barriers to the deployment of e-commerce in

the UK consulting firms.

Culturalchange

Exact term 16 27 Improving staffs competence can motivate them to work harder and committo changes. New practices or changes will shake the status quo of the currentoperations. Without the commitment of staff, new culture cannot be aligned

with new common goals and objectives (Cheng and Love 2001).

Businessprocess change

Processchange &

changemanagement

11 16 Moving to digital delivery requires new specialist skills such as IT skills andorganisational change management skills and internal retraining and

updating skills in support of the business transformation (Laidlaw 2001).Dr. Guillermo Aranda-Mena

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Content Coding

Low impact (1) Value (2) Value (3) Value (4) High impact (5)

Authors comments,observations andopinions.

Single and multiple casestudy results.

Multiple case studyresults and descriptivesurvey.

Statement drawn frommultiple references.

Survey with statisticalsignificance.

Barrier impact level relationships were then assigned to the followingfour groups:SMEsSuppliers

ContractorsConsultants


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Content Coding

5 Point scale using GridSuiteBi-polar relational arrangement:Level of impact and organisational type.

The level of impact applies in variousdegrees according to organisational type.


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Content Coding


di

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Content Coding

Culturalchange

719

23 2

22

18

17 6

13

11 9

10

14 1

12 8

15

21

16 5

20 3 4

100

90

80

70

60

Priv

acyissues

Qualityofcurrentinfrastructure

Dissatisfiedwithperformance

Con

fidence/trust

Notsureofbenefit

Go

v.supportandinformation

Technologicalupdates

Initialfinancialcost

Needforfacetofacecommuni

cation

Un

certaintyoffinancialreturns

Serviceunsuitablefore-sale

Los

sofcurrentclients

Ma

nagementcommitment

Awa

reness

La

ckofreliablemeasurement

Go

odsunsuitablefore-sale

Ma

intenancerunningcosts

Us

erauthentication/fraud

Con

nectionspeed

Bu

sinessprocesschange

Re

liabilityofcurrentinfrastructu

re

ITskillstraining/literacy


C C di

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Content Coding

Cultural change

7

19

23

2

22

18

17

6

13

11

9

10

14

1

12

8

15

21

16

5

20

3

4

100 90 80 70 60

Privacy issues

Quality of current infrastructure

Dissatisfied with performance

Confidence / trust

Not sure of benefit

Gov. support and information

Technological updates

Initial financial cost

Need for face to face communication

Uncertainty of financial returns

Service unsuitable for e-sale

Loss of current clients

Management commitment

Awareness

Lack of reliable measurement

Goods unsuitable for e- sale

Maintenance running costs

User authentication / fraud

Connection speed

Business process change

Reliability of current infrastructure

IT skills training / literacy


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Outcome:

Adobe Acrobat Document Index

Industrial booklet preparation Framework to measure against case studies


Industry Information Booklet

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Industry Information Booklet

Providing insights into the current nature and use of

electronic supply within the Australian Construction

Industry [SMEs].

Aims to inform raise awareness and demonstrate the key

issues, concerns and advantages when conducting e-

business

It has a wider perspective on adopting new technologies 20-40 pages in length

Will be sent to 15,000 builders through the Building

Commission of Victoria


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