Benjamin, R., & Wigand, R. (1995). Electronic markets and virtual value chains on the information superhighway. Sloan Management Review(Winter), 62--72.  Home/Search   Document Not in Database   Summary   Related Articles   Check

....will be tackled in this paper. To motivate the approach described in this paper, we first discuss some of the developments in the field of E commerce and Internet based technologies. E commerce refers to the enabling of purchasing and selling of goods and services through a communications network [5, 16, 28, 37, 40, 53, 57]. The ability to conduct business activities involved in marketing, finance, manufacturing, selling, and negotiation, electronically, is what E commerce is all about. One major objective of adopting E commerce strategies is to reduce costs and improve the efficiency of business processes by ....

R. Benjamin and R. Wigand. Electronic markets and virtual value chains on the information superhighway. Sloan Management Review, pages 62--72, 1995.

....efficiencies can be realized because of fewer stages in transaction process and a reduction in staff required for transaction processing ( 1] E commerce can lead to shorter supply chains. Thus significant reductions on the cost side are possible due to reduction of inventory and carrying costs ([2]) Several authors ( 3] 4] have argued that since modern computing and communication technologies reduce buyer search costs and other market inefficiencies, there should be intense price competition between sellers in electronic markets. The search cost represents the real and opportunity ....

R. Benjamin and R. Wigand, "Electronic markets and virtual value chains on the information superhighway," Sloan Management Review, vol. 36, no. 2, pp. 62--72, 1995.

....commerce environment, because they are most explicit goals of electronic commerce in general (Mowshowitz, 1997b) To develop a set of specific criteria for metamanagement support systems, we apply the concept of value chain. In virtual organizations a value chain is termed a virtual value chain (Benjamin and Wigand, 1995). A business process, coupled with the support information infrastructure, associates with a virtual value chain(s) The definition of value in a virtual value chain is given in the goals of the organization. Analyses of virtual value chains provide a basis for the meta management of the entire ....

Benjamin, R. and Wigand, R. (1995), "Electronic markets and virtual value chains on the information superhighway", Sloan Management Review, Vol. 36 No. 2, pp. 62-72.

....is an example of the former supply chain, while the Dell corporation on line business refers to the latter supply chain. In both cases significant reductions on the cost side are possible due to the absence of expenditures on the retail outlets and to the reduction of inventory carrying costs (Benjamin and Wigand, 1995). Finally, e commerce gives the possibility of head to head comparisons at low or zero costs. Comparisons of the products prices and attributes can be performed in a fast and often costless way, increasing 4 the market transparency and contributing to increased competition and lower price cost ....

....comparisons at low or zero costs. Comparisons of the products prices and attributes can be performed in a fast and often costless way, increasing 4 the market transparency and contributing to increased competition and lower price cost margins. The seller will have maximum choice at lower price (Benjamin and Wigand, 1995). Bakos (2000) similarly questions the link between higher intensity of e commerce and a greater extent of competition. In his model, higher competition only results if the costs of searching for prices are lower than the costs of searching for attributes. Otherwise, the extent of competition ....

Benjamin and Wigand (1995), "Electronic Markets and Virtual Value Chains on the Information Superhighway", Sloan Management Review, Winter, pp.62-72..

.... products and services are typically created by business processes, and workflow technology can be used for enhancing the flexibility and efficiency of these processes [14, 19] Corporations often operate across organizational boundaries, for example in E commerce and extended enterprises [11, 20, 27]. Consequently, workflows between organizations interorganizational workflows are becoming increasingly important [21, 12] Interorganizational workflows are typically subject to conflicting constraints of the organizations involved. On the one hand, there is a strong need for coordination ....

R. Benjamin and R. Wigand. Electronic markets and virtual value chains on the information superhighway. Sloan Management Review, pages 62--72, 1995.

....building in successful ECommerce strategies. 1. Introduction Using information technology to support online business can be advantageous to all parties. Sellers aim at reducing their transaction cost and at integrating the customer interface to their internal IT systems and processes [5] [3], 13] Buyers strive for easy access to product related information (such as price, availability, and terms) which will lower their search cost [2] Middlemen in this setting, electronic intermediaries, find niches for their expertise as well [2] 20] 26] However, to be truly advantageous to ....

Benjamin, Robert; Wigand, Rolf (1995): Electronic Markets and Virtual Value Chains on the Information Superhighway, in: Sloan Management Review, Winter 1995, pp. 62-72.

....business to business commerce. My research is motivated by two reasons. Firstly, much of the extant electronic commerce literature focuses on the differences and conflicts between electronic and conventional channels and the areas where electronic channels are likely to supersede conventional ones (Benjamin Wigand, 1995; Bakos 1998; Sarkar et al. 1995 and 1998) While this research makes valuable contributions, it does not thoroughly address the issues that arise when conventional and electronic channels are employed in combination. Only few attempts (known to the author) have been made to investigate hybrid ....

Benjamin, R.I. and Wigand, R. (1995): "Electronic Markets and Virtual Value Chains on the Information Superhighway," Sloan Management Review, 36(2), 62-72.

....processing of purchase or service related information, has the potential of being advantageous to all participating parties. Sellers generally aim at reducing their transaction cost and at further linking the customer interface to their internal ITsystems and processes [Bloch Pigneur Segev 1996; Benjamin Wigand 1995; Klein 1997] Buyers, on the other hand, strive for easy access to product related information (price, availability, terms, etc. resulting into reduced search cost [Bakos 1997] and in the case of business customers for integration into their internal procurement process [Gebauer et al. ....

Benjamin, Robert; Wigand, Rolf (1995): Electronic Markets and Virtual Value Chains on the Information Superhighway, in: Sloan Management Review, Winter 1995, pp. 62-72.

.... reduce middle management and centralize decision power (Leavitt and Whisler, 1958) This vision shifted in the 1980s towards a focus on autonomous knowledge workers and empowered workers (Dawson and McLoughlin, 1986) and during the latest decade there have been predictions of virtual organizations (Benjamin and Wigand, 1995). In the following section ERP implementation will be discussed in order to give a background for the use of the proposed CVA based requirements specification framework. 3. ERP Implementation Approaches A problem encountered in ERP implementation is that many individual users in organizations ....

Benjamin, R. and Wigand, R. "Electronic Markets and Virtual Value Chains on the Information Superhighway," Sloan Management Review/Winter, pp. 62-72, 1995.

.... They address the issue of standards to enable workflow interoperability at a syntactical level (van der Aalst, 2000) A standard technology for product state models is not yet available (Shpitalni et al. 1998) The benefits usually associated with e commerce are transaction cost efficiencies (Benjamin Wigand, 1995). This suggests a revisit to business processes emphasizing production economies. Now, given the observations of Internet properties, the research question is therefore: how does E commerce improve not only transaction but production and business processes efficiency We suggest that ....

Benjamin, R. I & R. Wigand (1995). Electronic Markets and Virtual Value Chains on the Information Highway. Sloan Management Review, Winter, 62-72.

....of commercial specialization is that the exchanges discussed exist solely online. The purpose of these commercial limitations is that in most of the discussions traditional economic theory on subjects such as price setting and transaction cost is used for all electronic commerce (see for example Benjamin and Wigand, 1994). The applicability and purpose of these theories have yet to be tried and tested beyond the theoretical perfect market. The online exchange is also highly interesting for other reasons. One such reason is the fact that this area has a theoretical potential to become one of the major areas of ....

Benjamin, R. I and Wigand, R. (1994), "Electronic Markets and Virtual Value Chains on the Information Superhighway", Sloan Management Review, Winter 1994, pp 62-72.

....of content providers and other electronic community members, the electronic highway will comprise nothing more than a collection of limited, disconnected applications. Analysts have concluded that content will constitute the largest revenue generating component of the information superhighway [5]. It is also clear that unfettered access to content requires that content providers be able to maintain control over literary or copyrighted assets. Many analysts conclude that this will be one of the key bottlenecks in the implementation and deployment of New Media. 2 Information Commerce and ....

R. Benjamin and R Wigand, "Electronic Markets and Virtual Value Chains on the Information Superhighway," Sloan Management Review, Vol. 36 No. 2 (1995).

....in new directions beyond the routine offerings: NetSeminar E.N.E.N. Shift #3: From IT Supported Intermediation to IT Shaped Cybermediation The literature suggests that the intermediaries will be under pressure as value chains reconfigure to take advantage of the electronic networks (Wigand Benjamin 1995). The logic behind this argument is that producers of goods and services will use new technologies, such as the Web, to forge direct links with the customers. This will create 31 value for both the producer and the customer by lowering costs related to transactions and coordination with ....

Benjamin, R. and Wigand, R. "Electronic Markets and Virtual Value Chains On the Information Superhighway," Sloan Management Review, (36:2), 1995, pp. 62-72.

....will be tackled in this paper. To motivate the approach described in this paper, we first discuss some of the developments in the field of E commerce and Internet based technologies. E commerce refers to the enabling of purchasing and selling of goods and services through a communications network [6, 16, 26, 34, 35, 47, 51]. The ability to conduct business activities involved in marketing, finance, manufacturing, selling, and negotiation, electronically, is what E commerce is all about. One major objective of adopting E commerce strategies is to reduce costs and improve the efficiency of business processes by ....

R. Benjamin and R. Wigand. Electronic markets and virtual value chains on the information superhighway. Sloan Management Review, pages 62--72, 1995.

....information technology (IT) EC transforms industry structure, improves organizational effectiveness and increases consumer welfare. However, the new electronic markets that occur on the Internet are different from traditional, physical markets, so new strategies and business logic are required [12, 65]. Consequently, there is a need to bring new theory to the problem of explaining how the competitive environment changes in the online world, and explaining what are the conditions for the success and the failure of new online players and established firms in an industry. A Motivational Example ....

....trading mechanisms with alternate trading mechanisms [28, 34, 79] that can be managed either by suppliers or by new, IT enabled intermediaries. However, since intermediaries significantly increase the costs of the products, there is a strong incentive for their elimination from the value chain [12, 60]. Tapscott [80] points out that those intermediaries that only process transactions without adding value are most likely to be eliminated by EC technologies. However, some transactions cannot be conducted fully online. For example, in industrial distribution, disintermediation is likely to occur ....

Benjamin, R., and Wigand, R. Electronic markets and virtual value chains on the information superhighway. Sloan Management Review , 36, 2 (Winter 1995), 62-72.

....explained the way in which conventional information technology permeates the valuechain and thus transforms the way value activities are performed. The Internet is today transforming the value chain further by opening up markets and reaching individual members of society (Benjamin and Wigand [2]) In order to benefit from the competitive advantages the Internet offers, each value activity within the value chain needs to be made Internet Ready . Alternatively, the infrastructure must be set up in such a way that organisations making use of valueactivities will gain an edge over other ....

Benjamin, R. and Wigand, R. (1995) `Electronic Markets and Virtual Value Chains on the Information Superhighway'. Sloan Management Review, 62-72, (Winter).

....Theory, Social Exchange, Social Network, and Knowledge Creation. 3 Explaining Cybermediation: An Organizational Analysis of Electronic Retailing Introduction One of the most common early forecasts for commerce in the information age was the elimination of stages in a firm s value chain [4, 26]. Disintermediation, or the removal of wholesalers, distributors, and other intermediaries, offered the prospect of greater efficiency in supply and marketing channels. For example, Tapscott predicted that Manufacturers could use the new [electronic] infrastructure to sell direct over the ....

Benjamin, Robert, and Wigand, Rolf. Electronic markets and virtual value chains on the information superhighway. Sloan Management Review, 36, 2 (Winter 1995), 6272.

....on the consumer side, principally search cost. The disappearance of consumer search costs in electronic markets puts vendors under increased price competition, resulting in converging prices and ultimately eliminating any extraordinary profits (Malone, Yates and Benjamin 1987; Bakos 1991; 1997; Benjamin and Wigand 1995). 1 However, it is well known that products with complex characteristics enable producers to avoid the outcome of pure price competition through product differentiation (Porter 1985) By offering 1 There is some anecdotal evidence that support this notion. For example, Chrysler s chairman, Bob ....

....large numbers of buyers and sellers; a homogeneous good; and no switching costs. In the context of electronic markets, Bakos (1991) argues that the provision of price information leads to a reduction of buyers search cost that reduces sellers profits and increases consumer welfare. Benjamin and Wigand (1995) termed this effect the market maker effect, in which . the consumer does very well, producers lose their profit margins, and the market makers gain the remaining profits. p. 66) While there is some anecdotal evidence for such an effect, this has not been confirmed in initial empirical 4 ....

Benjamin, R. and Wigand, R. "Electronic Markets and Virtual Value Chains on the Information Sloan Management Review, Winter 1995, pp. 62-72.

....waiting times, and elimination of travel time. The reduction in consumer search costs in electronic markets puts vendors under increased price competition, resulting in converging prices and ultimately eliminating any extraordinary profits (Malone, Yates and Benjamin 1987; Bakos 1991, 1997; Benjamin and Wigand 1995). 1 1 There is some anecdotal evidence that support this notion. For example, Chrysler s chairman, Bob Eaton, estimates that in 1998, 25 of all American car buyers will use the Internet to acquire information about the true costs for each model and subsequently bargain with dealers about the ....

....large numbers of buyers and sellers; a homogeneous good; and no switching costs. In the context of electronic markets, Bakos (1991) argues that the provision of price information leads to a reduction of buyers search cost that reduces sellers profits and increases consumer welfare. Benjamin and Wigand (1995) termed this effect the market maker effect, in which . the consumer does very well, producers lose their profit margins, and the market makers gain the remaining profits. p. 66) While there is some anecdotal evidence for such an effect, this has not been confirmed in initial empirical ....

Benjamin, R. and Wigand, R. "Electronic Markets and Virtual Value Chains on the Information Superhighway," Sloan Management Review, Winter 1995, pp. 62-72.

....Suppliers Figure 1. Traditional vs. Electronic Markets: The Disintermediation Hypothesis There are indeed strong economic incentives for both producers and consumers to drive intermediaries out of the value chain. Intermediaries have been known to add significant costs to the value chain (Benjamin and Wigand 1995), thus suppressing the profit margins of producers while at the same time resulting in higher final prices for consumers. Advanced uses of Information Technology and the evolution of electronic marketplaces have been hypothesised to reduce the transaction costs for producers, thus enabling them to ....

Benjamin, R. and Wigand, R. (1995) Electronic Markets and Virtual Value Chains on the Information Superhighway, Sloan Management Review, 36:2, Winter, pp. 62-72.

....of customer or suppliers with which a principal deals, thus avoiding information overload for the principal. Today, examples abound in which these mediating roles have been replaced or eliminated because information technology permits the principals to manage the relationship directly (e.g. Benjamin and Wigand, 1995; Wigand, 1997; Wigand, et al. 1997) For example, Benjamin and Wigand (1995) and Wigand et al. 1997) show how entire levels within a market hierarchy (e.g. wholesaler, retailer) might be replaced by direct communications between a manufacturer and customer. More generally, they suggest that an ....

....overload for the principal. Today, examples abound in which these mediating roles have been replaced or eliminated because information technology permits the principals to manage the relationship directly (e.g. Benjamin and Wigand, 1995; Wigand, 1997; Wigand, et al. 1997) For example, Benjamin and Wigand (1995) and Wigand et al. 1997) show how entire levels within a market hierarchy (e.g. wholesaler, retailer) might be replaced by direct communications between a manufacturer and customer. More generally, they suggest that an evolution from single source channels to electronic markets is already ....

Benjamin, R. and Wigand, R. (1995). Electronic markets and virtual value chains on the information superhighway. Sloan Management Review(Winter), 62--72.

No context found.

Benjamin, R., & Wigand, R. (1995). Electronic markets and virtual value chains on the information superhighway. Sloan Management Review(Winter), 62--72.

No context found.

Benjamin, R. and Wigand, R. Electronic markets and virtual value chains on the information superhighway, Sloan Management Review, 1995, p. 62-72.

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R. Benjamin, and R. Wigand, "Electronics Markets and Virtual Value Chains on the Information Superhighway", Sloan Management Review, Winter 1995, pp.62-72.

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Benjamin R., Wigand R. (1995): Electronic Markets and Virtual Value Chains on the Information Superhighway, Sloan Man Rev, Winter, p.62-72.

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