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260 Part 2 Strategy and applications

Corporate
strategy

Business unit Regional Functional Typical e-business
strategies strategies strategies planning

Figure 5.1 Different forms of organizational strategy

There is limited research on how businesses have integrated e-business strategy into existing
strategy, although authors such as Doherty and McAulay (2002) have suggested it is impor-
tant that e-commerce investments be driven by corporate strategies. We return to approaches
of alignment later in the chapter. Box 5.1 illustrates some of the challenges in integrating
e-business into existing planning processes.

Box 5.1 Perspectives on senior management buy-in to e-commerce

Research of retail banks by Hughes (2001) suggested that, in the early phases of
e-business development, there is no clarity in e-commerce strategy at a senior level.
In one of the responding companies, interviewees comment that:
My perception would be that they are not leading e-commerce as actively as they
are other parts of change within the organisation.
(Organisation development manager, case 1)
Another comments:

There is a lack of understanding of the new technology and its implications by the
executive team: Whereas if it’s a life and pensions decision they can take that
because it’s in their blood. If it’s a technology decision, it’s much more difficult.
(Marketing manager, case 1)

However, problems in defining strategy can occur, even though clear control is evident.
In company 3 the importance of senior involvement is stressed:
The ability to drive forward a project without a very high level sponsor is doomed
to failure really. [In our organization] The allocation of budgets is decided at the
highest level.
In organization 3, three senior managers are responsible for driving e-commerce: the
chief executive, the head of the electronic channel and the technology director.
However, the marketing manager feels that the marketing function has not been suffi-
ciently central in e-commerce development:
What marketing is trying to do is say there should be a strong consumer voice within
there who can think about it purely from the marketing side. We’re trying to make
sure that we’ve got strong representation.