. 14
( 15)


Packaging Delivery
Brand Installation Services
Color Guarantees
Styling Replacement
Attribute Finance
Instructions Manual Customer Training
Quality Customer Complaint
After Sale Services

(Offered to a customer)


Companies employ varying strategies to differentiate their products, requiring the need
for a different set of technologies and business processes.
A product involves its presentation to the consumer as a composite package. It refers
to a core product, the formal product, and an augmented product (Figure 1). As pointed
out by Levitt, the core product remains the same in an industry, what changes is the formal
and augmented product composition.
The formal product variables help customers differentiate a product from that of the
competitors. Hence, companies try and customize these attributes. Investment in
customization motivates a company to promise customers a certain set of distinct
attributes. These promises in turn influence the customer™s satisfaction.
The augmented product variables determine the competitive advantage of a company.
The level of on-time delivery, customer training, after sales services, guarantee and
replacement schemes, influences the customer™s satisfaction. Therefore, in order to have
competitive advantage in a particular market the manufacturers need to compete not only

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Corporate Strategies in a Digital World 363

in terms of what they produce in the factories (core product) but in terms of value-added
The role played by the technological development of the company plays a crucial role
at this stage. To date, companies have been adopting their customization strategy by
targeting selected variables of augmented and formal product sets. However, the
increased levels of competition and technology proliferation have forced companies to
look at the product as a whole. Moreover, for a sustained competitive advantage
companies need to orient their technologies in their operations and also use them to adapt
the variables in a product to a customer perspective. One way of achieving this is through

CRM - The Concept
CRM refers to the approach adopted by an organization to understand and influence
customer behavior through meaningful communication, so as to improve customer
acquisition, retention, loyalty and profitability (Deck Stewart, 2003).
CRM is a comprehensive strategy and involves technology and tools used to understand
customer needs and behaviors in order to develop stronger relationships with them. It
is a process that helps bring together previously dispersed pieces of information about
customers and their behaviors, strategies for sales and marketing, their effectiveness and
responsiveness and market trends (Raut, 2003).
In a macro sense, the main philosophy behind CRM is to ensure customer delight rather
than mere satisfaction by using services as a tool, to provide customers with a service
level that exceeds their expectation set. Moreover, having learned from their experiences,
customers now demand a product that matches their expectation logics exactly (Ziethmal,
n.d.). This involves the integration of data captured by various functions in a company
and blending the data to develop a comprehensive knowledge about the needs of the
consumer and the product.
The motivation behind companies™ efforts to understand their customers is the desire to
have a competitive advantage. The more capable a company becomes at understanding
its customers and giving them what they want, the more difficult it is for the competitors
to entice them away (Switching Costs).
Many corporations have exploited this tool successfully in developed countries. For
example Amazon.com, Tipper Tie, Hewlett Packard, Canada Post Corp., Student Advan-
tage, Dell Computers, Microsoft, McDonalds, Pizza Hut, Dominos, etc. These companies
are not famous for their advertising campaigns but their service level (Augmented
Products). The advancements in present day digital economies have however made some
of these technological advances and tools a mere necessity from their earlier status of
a highly valued choice.

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364 Kansal & Arora

Case Study: Tipper Tie (2003)
Tipper Tie Inc., owned by Dover Corporation, is a multi-billion-dollar entity publicly
traded on the NYSE (DOV). The Tipper Tie Inc. family consists of four companies Tipper
Tie, Tipper Tie-Net, Tipper Tie technopack and Tipper Tie Alpina. Their products
portfolio includes clippers, aluminum clips, aluminum wire products, electric fence
supplies and netting. Tipper Tie was selected as a small-to-midsize enterprise winner of
the Spring 2002 Gartner CRM Excellence Awards. Tipper Tie customers (in the food-
processing industry) use costly machines for packaging the food items. These packing
machines need service, new parts, and plenty of wire and clips. Tipper Tie is a customer-
oriented company and their field sales reps and service technicians make personal visits
to customers while call center fields their questions, requests and complaints. Believing
in the fundamentals of CRM (customer retention) the sales rep used to spend 75% of their
time dealing with old complaints and satisfying the old customers (Boeing Center, 2003).
This helped the company to increase its customer base and goodwill in the market.
Success stories like these motivate companies to strive for improved customer relations.
Therefore, in the past few years, companies increasingly invested huge amounts in CRM
infrastructures. The need for such tools has influenced the direction and the develop-
ment of technological advances needed to satisfy the needs of the companies.
The extensive use of CRM concepts and tools led to a modification of a customers™
expectation set.
This led to CRM transiting from its status of a competitive advantage tools to a mere
strategy. Therefore companies directed their efforts to look for competitive advantage
alternatives which could fill the void left by transition of CRM but do so cost effectively.
Companies having made extensive use of technology to further their cause via CRM then
turned to develop further processes and tools to gain competitive ground.
It is against this backdrop that the discipline and philosophy of logistics & supply chain
management moved into limelight.

Supply Chain Management “
The Concept
In 1954, Paul Converse, pointed out the need for academicians and practitioners to
examine the distribution side of marketing (Converse, 1954). Later Peter F. Drucker
indicated that physical distribution was akin to the “Dark Continent,” i.e., it was an area
that was virtually unexplored and hence unknown (Drucker, 1962). He said 50 cents out
of every dollar that a consumer spends on goods goes to activities that occur after goods
are made, i.e., physical distribution.
Physical distribution is a cluster of activities which creates time, place and form utility
through the movement of goods and persons from one place to another.

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Corporate Strategies in a Digital World 365

Over time physical distribution has been expanded to include total materials management
and information flows within a channel and is now called logistics (Kapoor and Purva,
Contributions in these areas from scholars like Heskett (1973), Shapiro (1984) and
Sharman (1984) have helped thrust logistics into the spotlight. These days logistics is
perceived as a tool for improving efficiency of customer service programs, decreasing
total costs and profit leveraging. For example, Michael Dell in his book Direct from Dell
(Harper Business) Stated, “In 1993, we had $2.9 billion in sales and $220 million in
inventory. Four years later, we posted $12.3 billion in sales and had inventory of $233
million. We™re now down to less than eight days of inventory [on hand] and we™re starting
to measure it in hours instead of days” (Allen, 2003). Similarly, logistics deals with
reorganizing material handling functions, determining equipment selection and replace-
ment policies, order-picking procedures and stock storage retrieval, etc. Today™s digital
world has seen a new dimension being added where the product does not have any
physical form and can be delivered electronically directly from the Web to the buyer™s
computer. Use of the Internet and various technologies has also reduced the communi-
cation gap between the businesses and consumers.
To synergize these cost reduction benefits, the term logistics has been further expanded
to supply chain management. Supply chain management has been defined as the chain
linking each element of the manufacturing and supply process from raw material through
to the end-user, encompassing several organizational boundaries and treating all
organizations within the value chain as a unified virtual business entity (Scott and
Westbrook, 1991).
Therefore, anyone or anything that influences a product™s time-to-market, price, quality,
information exchange, and delivery, among other activities is part of the supply chain.
The supply chain management aims at integrating efforts in terms of target 7R™s, i.e.,
creating the right product, at the right time and right place, in the right quantity and in
right condition for the right customer at the right cost (Kapoor and Kansal, 2003). A well-
planned SCM system helps an organization achieve
1. Lower costs
2. Competitive edge
3. Reliability of delivery
4. Order fulfillment accuracy
5. Flexibility in replenishment
6. Accuracy of documentation
7. Continuity of supply
8. Quality of company sales, technical and service representation.

However, learning from their experiences, the customers expect an offer to cater to
augment and formal variables of the product and to have a degree of customization at the
same time. This has made the task of exceeding customer expectation very difficult. In
present times, to satisfy a customer a company has to be “on its toes” at all times. It is

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366 Kansal & Arora

necessary for companies to make CRM and SCM work in synchronization, i.e., target both
a formal and augmented levels of the product cost effectively with a degree of customization
added to them. It is here that the challenge lies for the companies to utilize the tools and
the technologies available to integrate their processes enabling them to enhance their
customer satisfaction and retention.

Supply Chain Management and CRM:
An Interactivity Relationship
One hard fact of today™s cannibalistic market is that only the fittest can survive the
competition, i.e., a company which can acquire minimum variance between expected and
actual service will exist. However, to flourish actual service needs to exceed expected
service. For this approach we need to adopt an integrative approach to CRM and SCM.
Let™s revert to our Tipper tie example to illustrate this point.
Competition began heating up in late 1990, when overseas competitors entered the
United States. The competitors with their alternative packaging methods began enticing
Tipper Tie™s customers. Executives sought to protect their market share by developing
a strategy to respond earlier and more often to their customers.
Company recognizing the fact that it needed to provide easy access to up-to-date
customer data to its sales team, technicians and customer call center initiated a linking
system. Through this linking system its sales reps in the field and call center were
integrated into the same continually updated customer data view.
This helped Tipper Tie to trim the time sales reps had to spend listening to customer
complaints leaving them more time for selling. The reps were able to do their homework
prior to their sales calls by reading up on technical service problems the customer had
logged, machine repairs, parts sales histories and any gripes their call center had entered
into the company™s centralized system.
This increased efficiency in time and communication lead to decreased cost of generating
sales and increased sales revenues from its best customers.
Tipper Tie also implemented Siebel Systems™ standalone call center and sales-force CRM
modules. Since the system was installed Tipper Tie estimates that each sales rep has had
approximately 18 more days per year in face-time selling that they earlier were spending
on generating reports or dealing with peripheral issues. The company has also been able
to increase its sales territory without increasing its number of sales reps and has trimmed
a sales support IT jobs with the automated system in place (Deck Stewart, 2001).
Therefore, SCM and CRM, an interactivity approach would help not only improve
customer service but also lead to a decrease in cost. However, this approach would
require increased coordination and flexibility not only between various organizational
structure elements but also in customer and company relations. This would require
efficient communication so that the right information is available to the right person. This
information database would allow a company to develop a better understanding of

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Corporate Strategies in a Digital World 367

customer buying logics. All of this involves a sizeable shift in the companies™ strategies
to also employ technology as a tool to enhance the value generated from its operations
as against its earlier use to only further enhance the value of its operations.
Multiple variables work in conjunction to shape “customer buying logics” and a
consumer uses the standards as reference points to judge actual performance of a
company. Any possible bottleneck in understanding can lead to variance which would
in turn influence the customer satisfaction and delight level. Gattorna and Walters (1996)
describe different types of bottlenecks, which might lead to variance. These are:
• Gap between management perception and customer expectations will influence
product quality.
• Gap between management perception and organization system will impact on
product delivery.
• Gap between organization system and channel members would determine the actual
• Gap between actual commitment of channel members and promises made by the
company would determine the gap between promises made and delivered and thus
the goodwill of the company.

As illustrated in Figure 2, CRM helps reduce distance between customer and manage-
ment, which helps develop an understanding of customer expectations and therefore
increase product quality and customer satisfaction. However, for decreasing variance
companies require proper cooperation and commitment from employees and other
channel members. This would require management of relationships and resources along
the whole supply chain. Only then would a company be able to achieve an efficient
delivery process.
Therefore, an interactivity or integrated approach between SCM and CRM is essential
to achieve increased customer satisfaction. However, practically integration requires
phenomenal flexibility, which in turn can arise only from free flow of information. A few
decades ago this would not have been possible, but with today™s technology SCM and
CRM can be integrated to give SCM a customer orientation and CRM a supply process
In this IT-based approach to integrating SCM and CRM a company employs a wide array
of computers, workstations and servers operating with collaboratively developed
software. It is a dynamic channel with little friction among the channel participants.
Efficient data handling and response to customer choice are more important and therefore
to increase flexibility multiple activities are outsourced.
Technology allows customers and suppliers to be seamlessly linked together, through-
out the world, exchanging information almost instantly. The velocity of relevant infor-
mation flow is so fast that, as a result, responding to the inevitable changes in expected
vs. actual customer demand will mandate demand-driven manufacturing and supporting
processes that provide for faster changes in the actual material flow to match demand.
Thereby, helping to reduce the bottlenecks faced by companies (as discussed earlier) in
a buyer™s market while catering to “customer buying logics.”

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368 Kansal & Arora

Figure 2. Customer satisfaction, CRM and SCM: A relationship

DIG 2: Customer Satisfaction, CRM and SCM : A Relationship

Personal Past Corporate Image Promises made by Actual products
Needs Experiences Other Companies on offer

Expectation Set



(FOR THE PRODUCT) to Customers




VARIANCE Expected > Actual Dissatisfaction
Expected = Actual Satisfaction
Expected < Actual Over satisfaction = Delight

Past Experience (inturn influence the Expectation set)

* Adapted from J.L. Gattorna, D.W. Walters, “Managing Supply Chain: A Strategic Perspective”,
McMillan Private. Ltd., London, 1996, pg 50.

*Adapted from Gattorna & Walters (1996)

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Corporate Strategies in a Digital World 369

Fast access to relevant supply chain information can pay off handsomely in lower costs,
less inventory, higher quality decision-making, shorter cycle times and better customer
service. One of the biggest cost savings is in the overhead activity associated with lots
of paperwork and its inherent redundancies. The non-value added time of manual
transaction processing could instead be focused on higher revenue creation activities
without proportional increases in expense. Thereby differentiating between companies,
which acquire, in the future, or are acquired.

Indian Scenario
Indian businesses, across almost all industries, have a common trait of multiple layers
or tiers of distribution between the brand and the consumers. Layers have thrived due
to an over-fragmentation of the social class of consumers, tactical location advantage,
or purely the liquidity power to hold stock.
There are three primary layers of intermediation:
1. Consignment & Freight Agents (CFA)
2. Distributor/Stockist/Wholesaler
3. Retailer/Dealer

This three-tier distribution channel system increases distance between manufacturer
and the customer. Therefore customers in India interact with channel members for
product delivery, service, problems, support or to give feedback. Thereby, increasing
distance between the manufacturer™s perception of customer logics. For example, in the
India market segment for luxury cars is defined as people who have a need to be driven
rather than drive. Yet all the car accessories controls are with the driver and not in the
back with the passenger. This gap, in turn, has a compound effect on bottlenecks outlined
by Gattorna.
Therefore, the bargaining power and control of channel members is more in India.
Moreover, each layer adds to the price burden of the product.
A company influences the expectation set of the customer by making certain product ad
delivery promises. However, lack of commitment, control and coordination from channel
members only leads to increase in variance and therefore making the price burden ever
more so evident to the customer.
Assume: Mr. Joshi plans to purchase a microwave oven. He has no specifics in his
expectation set. He conducts a market survey and collects information about the existing
brands. His expectation set is formed by the promises made by these brands. Influenced
by the communication, he buys a branded product. He was promised that a representative
would come to his house and install and demonstrate the use of the product. After
purchasing the product, Mr. Joshi contacts the dealer for a demonstration and he is told
that a person has to come from the company™s branch office and the dealer gives him the
number asking him to contact the company directly. While the company tells him that

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370 Kansal & Arora

they, as a policy, entertain the requests for demonstrations only from the dealers.
Resultant of this communication is a gap between promises made and delivered. Due to
which Mr. Joshi made sure that no one he knew ever brought the same product.
This is a normal experience in India. The problem emanates from the dealers™ short-term
objective of monetary gains and the customers™ lack of knowledge of their own power.
Customers in India have been introduced to the concept of “customer power” only
recently (after the liberalization of the Indian economy in the 1990s). They are still
learning how to use it and how to demand what they want from the manufacturers. This
has in turn made their expectation set very volatile. Therefore, SCM alone will not result
in an increase in market share. To satisfy a customer in India the manufacturer has to work
at reducing the gap between themselves and the customer and target the Gattorna
bottlenecks in totality. Thus it is not just the integration of the SCM and the CRM tools
but also the intelligent use of technology to minimize these bottlenecks that is crucial to
gaining competitive advantage.
An inspiring success story of this tool is in Public Sector, i.e., the Directorate of Supplies
and Disposal, Haryana Government, India. We have chosen a public department to
highlight the feasibility of this tool for developing countries. These Government
departments work in vertical structure due to which they have limited resources, are
plagued by operational inefficiencies, work delays, financial deficits, etc. Despite these
limitations, the Directorate of Suppliers and Disposals has been able to save Rs 60 crore
per annum in procurement. These savings are to be further complemented by reduction
in inventory costs, procurement time, paperwork, human resource, corruption and
unnecessary hassles.

Integration of CRM and SCM “ The
Use of Technological Tools: Case Study
The Directorate of Supplies & Disposals (DS&D), Haryana, is responsible for the
purchase of a large variety of items required by the various Government Departments
(customers of DS&D). It acts as an intermediary for the Government Departments and the
suppliers. This makes the distribution channel two or three-tier (depending on the
purchase to be made). The Directorate makes purchases of the order of Rs. 30000 million
per annum.
Functions of the Directorate are:
• To act as the purchasing agency for all the State Government Departments.
• To tender advice on matters connected to the purchase and disposal of stores to
State Government Departments, Public Sector Undertakings, etc.
• To arrange for disposal of surplus/unserviceable stores.
• To arrange for inspection of stores.

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Corporate Strategies in a Digital World 371

• To arrange for settlement of disputes between the suppliers and indenting depart-

The Present System (Highlighted in Figure 3)

Procurement of goods and services is done by:
• Ad-hoc purchases in which specific quantity and respective department mentions
• Tendering “ procurement exceeding Rs. 12,000 (twelve thousand) in value is
mandated to follow the tendering process. This is done so as to maintain transpar-
ency in the process and also ensure that the Government receives the best value
for the money. Tender invitations are published in leading newspapers and all
interested supplier or contractors who meet the eligibility criteria are free to submit
• Rate Contracts “ Rate Contracts are used for common user items where demand is
repetitive, item values are less, generally required by more than one department and
specifications have been standardized. It is an agreement between the respective
department and the supplier for the supply of goods at mutually agreed prices &
specifications, valid for a specific time period - generally having no quantity
• Purchase of material against rate contract arranged by Government of India “
Director General Supply and Disposals.
• Calling of quotations for proprietary items, which is made by only one company.
• Purchase from approved sources from the State as well as from the Central
Government Departments.

Following are the deficiencies of the current system. First, the present system is totally
manual and error prone. Second, at present 50 procurement officers manage the process.
Thereafter in excess of 10,000 suppliers and on an average 50 indents and two tender
inquiries per month containing 40-45 tenders inquiry cases. Therefore, the time lag
between placement of a requirement (with the DS&D), purchase, delivery and payment
is quite large. Moreover the department for whom the purchase is being made (consumer
department), is not allowed to change its specifications once they have been communi-
cated to DS&D. This is a major limitation of the present process. Due to the increased
time lag, the environment and expectations sets are prone to changes (expectations set -2). But
no provision has been made in the current process for such changes (decreased
Lastly, to make the procedure more complex DS&D is a department concerned with only
procurement. Therefore it has to make sure that there is no variance among the
specifications given by the consumer department (expectation set-1) and the product
received. The payment is released only after the consumer department has checked and

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372 Kansal & Arora

Figure 3. Present procurement process at DS&D

Indent A

Indent Approval

Enquiry Full Negotiation

Enquiry floated Purchase Order
in Vendors Proposal Approved

DS&D/ Receive Bids Purchase Order
Approved Release

Technical / Comm.
Scrutiny Status of
Risk Purchase

Purchase Commit
for Meeting
Release of Security


re-checked the product with its expectations set-1. Even after that the supplier has to fill
in a ton of paperwork to acquire the payment. This decreases the satisfaction level among
the channel members. (decreased cooperation).
To top it all the present system has following deficiencies in terms of specific activity
• Inventory Management
• Incomplete records of the stock in hand.
• No proper records as to when the inventory is used.
• Improper confirmation of supplies received from vendor “ there is a risk of

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Corporate Strategies in a Digital World 373

whether the actual supplies have actually been received from the vendor (risk
• Financial Management
• Financial planning does not exist and procurement is transactional not
• Timely release of funds from finance does not take place at the point of
receiving supplies despite formal sanctions. This adversely affects supplier
and Department relations.
• Quantifying the Spending
• Commodity codes don™t exist.
• Supplier codes don™t exist.
• Item numbers are not used for purchases.
• Spending analysis is a highly manual process and very tedious process.
• Leveraging Contracts
• Fragmented spending.
• Inadequate data available in market in order to leverage/control spending.
• Lack of contract metrics & measurement process.
• Developing Commodity Strategies
• Lack of established spending baseline.
• Long cycle time to negotiate contacts (and realize savings) “ typically two
months from Indent to placement of Supply Order.
• Limited resources.
• Limited savings realized to date from sourcing efforts.
• Unclear user measurements “ affects demand management.
• Buyer skills are transactional and not strategic.
• The earlier rates and specifications present available on files not easily
• Transaction Processing
• Total processing cost is very significant.
• Indenting system is manually intensive/redundant.
• Possibility of errors as system is manual.
• Excessive cycle time required for purchases.
• Buyers are busy reviewing and approving Indents instead of managing

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374 Kansal & Arora

Figure 4. Functional view of end to end solution

•Order Inside
Order/Indent status
E- Catalogs

Directorate Supply &
Buyer Side
/State Govt Sellers/Supplier Side
SCM,Invetory Mngt
E-procurement, Security
Analysis & Data mining

Solution View
Govt. Employees

Supplier 1
Catalog Procurement and supplies/
delivery status
Catalog Based Tender
Procurement Enquiry

Indent Indent
Supplier 2
Management Management
Catalog Procurement and supplies/
Documents delivery status
Purchase Inventory
Order Management

Finance Invoice &
Planning Payment Supplier n
Catalog Procurement and supplies/
delivery status
Workflow Management

Data Analysis & Business Analytics

Procurement System Supplier Enablement Soln.

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Corporate Strategies in a Digital World 375

• Too much time reconciling invoices to Purchase Orders.
• Systems are not real-time (mainly manual).

The Proposed System

An integrative approach has been proposed for DS&D. The proposed system will consist
of e-procurement and e-supplier enabled solutions. This would help increase flexibility
of orders (for consumer departments), reduce procurement time, decrease paper work,
and increase communication and coordination. This would help increase satisfaction of
all parties concerned.
Buy-Side Procurement “ eProcurement Solution for the Government Electronic Pro-
curement (eProcurement) represents the most significant opportunity for the Govern-
ment to continue to improve operational efficiency. The ability to automate the entire
supply chain for goods and services has the potential to deliver enormous cost savings
that directly impact the bottom line. In addition, operational efficiency is improved by
cycle time reduction, control of purchasing activity is increased, and purchasing
professionals can focus on more strategic projects rather than day-to-day transactions.
Sell-Side Procurement “ e-Supplier Enablement Solution to have the suppliers inte-
grate with the e-procurement Solution. The success of any procurement system depends
on its ability to attract Suppliers.
A functional view of the solution of the proposed system is shown in Figure 4.

The Conceptual Framework of the Solution

• Views. The processes as covered in the “Solutions View” (Dig 4) shall be
automated and a mix of “Web” and “Desktop.” Interface shall be provided to
facilitate the transactions happening at the front office and back office;
• Portal and Sections. An Interactive Portal consisting of separate Sections for the
Government Departments, Boards and Corporations, i.e., the buying side and the
Sellers/Suppliers on the supplying side shall be created to facilitate separate
sections of the supply chain;
• Codification. The present system lacks proper codification for the Departments,
Suppliers and the Products/Specifications. Accordingly, the Departments, Suppli-
ers and the Products/Specifications shall be codified in the new system to maintain
data integrity and to enable analysis on various parameters;
• Global Tendering and Participation. The new system shall enable global tendering
and shall invite participation from suppliers from across the globe. This will provide
better pricing and quality of the products to the State Government Department.

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376 Kansal & Arora

Government Side

• Departments™ Web Access. The Departments can Log On to the Web site using
the Web Interface and know about the status of their Indents placed with the DS&D
and the purchase/delivery status of the goods placed in the Indents can be taken
online using the Internet. Also, the Departments can update the Tenders and
Notices in the concerned section available on the Web site (increase product
• Indents and Inventory Control Mechanism. The Departments shall be provided
with authentication-based access rights to place the indents and update the
inventory levels of different indenting items as to how much is available in store
and how much has been consumed. This will facilitate not only the Departments
in maintaining proper inventory, but shall also facilitate the Government in
maintaining a check on the purchases made by different Departments (efficient
product delivery system);
• Budgetary and Financial Planning. The Government can carry out better budget-
ary and financial planning as the inventory information along with the indent
information shall be available collectively from all the indenting Departments. The
budgetary control in terms of the available budget vis-à-vis the purchase price can
be monitored on line on a day-to-day basis, which will also result in better financial
planning on the part of the Government (decrease cost burden despite multi-tier
• Product Information and Catalogues. The Departments can access the information
about the Catalogue of products offered by different vendors as well as the quotes
for these products finalized by the Competent Authorities. Sometimes, the Depart-
ments place indents for various products having specifications that are not existing
or are outdated. The eCatalogues hosted by different vendors shall help in
formulating the right specifications and selecting appropriate products (increase
product quality);
• Testing and Inspections. The test and inspection reports can also be updated on
the dynamic Web site to provide proper access to the user Department. Also, the
schedule of tests and inspections to be carried out can be covered on the Portal
to provide instantly updated information (increase communication and definition
of product quality);
• Penal Clauses, Risk Purchases and Debarring. DS&D can impose the penalties
as per the terms and conditions of the contract, which can be in-built in the software
meant for the e-procurement System. The delay in risk purchases results in loss of
revenue/working of the concerned Department. Accordingly, the risk purchase
notices, etc., can be expedited by customization depending upon the requirement
and can be automated on the basis of delivery period/inspections, etc.;
• Parameterized Search Facility. The Government Section shall provide Products
Based, Catalog Based, Tender Inquiry Based, Indent Based, Purchase Order Based

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Corporate Strategies in a Digital World 377

search facilities in both normal as well as Boolean parameterized mode to the user
organizations (increase channel coordination);
• Workflow and Backend Operations. DS&D shall have an automated workflow
system at the back-end using the Desktop Interface to keep track of the indents,
purchase orders and invoicing, financial planning, payments and inventory man-
agement. The mail messaging and database-driven access control system shall be
used to establish the internal Work Flow;
• Analysis and Data Mining. Online Analytical Processing (OLAP) Application
shall be used for Data Mining and to analyze the purchases done over a period of
time on different parameters (increased channel management).

Supplier Side (Better channel management to increase Bargaining
power of DS&D)

• Supplier™s Web Access. The Suppliers shall be able to access the details of the
inquiries floated by the DS&D for different products and Departments using the
Web Interface;
• Classification of Suppliers. The suppliers will be classified into two broad
categories: Class ˜A™ and Class ˜B™ Suppliers. Class ˜A™ Suppliers includes all those
suppliers who had been doing regular successful business with the state govern-
ment in the past three years and meet defined parameters like annual turnover,
Suppliers Financial and Market standing, Suppliers performance and Business in
other state governments, etc. All other suppliers will be considered under Class ™B™;
• ECatalogs and Brochures. The ˜A™ Class Suppliers shall be given space on the
Web site to maintain their Web Catalogs and Brochures; however, other suppliers
shall be provided only the limited access to the Tenders and Notices issued by the
Department. These Web Catalogs shall contain the detailed information on various
products offered by the registered suppliers;
• Regularly Updated Product Information. The eCatalogs shall be updated online
by the ˜A™ class vendors to provide updated information to the buyer™s side, i.e.,
the Government;
• Updating of Status. The Suppliers that have been given orders by the Department
shall be provided access rights to update the status Online about the deliveries,
inspections, testing, etc., to facilitate the Indenting Departments. This system will
facilitate the Suppliers and shall be called as the Supplier Enablement System.

Analysis of the Results
The interactivity approach will allow Governments to slash printing and mailing budgets
by 75%, and that™s an immediate savings. By streamlining the work processes associated

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378 Kansal & Arora

with purchasing, governments can cut the cost of administering a purchase order by 50%.
To add further, the benefits of the e-procurement and the Supplier Enablement solution
• Cost Efficiency
• Lower prices via aggregated buying and increased competition
• Reduction in inventory and supply chain cost via a reduced average PO line
item order value
• Reduced transaction costs
• Reduced Inventory Costs “ management of inventory and strategic buying would
reduce inventory in hand and will result in significant savings for DS&D and other
Departments down the value chain.
• Better Financial Planning and Control “ management of indents and the inven-
tory will result in better financial control and planning. The integrated system of
indents and the budget shall help in reducing the cost overruns beyond the
budgetary sanctions.
• Process Efficiency
• Lower procurement cycle times
• Automated transactions (Indent, Ordering, payment)
• Supplier and procurement process measures and management
• Increased flexibility and customization options to the customer departments.
• Ensure that goods and services are in accordance with the expectation set (evolved
or old) and at best prices.
• Smart governance “ Make the entire process transparent, this will result in
effective customer satisfaction by sharing the channel control with them.

Each of these in turn would help remove the bottlenecks of the old system, while making
the expected set equal to actual set in minimum time possible and in a cost effective way.
Thus, increase the satisfaction level of the consumer department.

The DS&D department predicts that the benefits of their integration efforts will lead to
• Significant reduction in the DS&D Human Resource requirements.
• Reduction in cycle time from two months to less than a week.
• Reduction in the cost of goods due to better negotiation and volume purchase. It
is estimated that the Government will save a minimum of 2% off.

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Corporate Strategies in a Digital World 379

• Inventory and its carrying cost will be reduced to the extent of 10-12% by optimizing
the inventory system.

Thereby, providing a strong argument for adopting an integrated approach of SCM and
CRM in developing economies. The investment in IT is more than the manufacturers of
these countries might be willing to make but in the long-term the benefits would outweigh
the initial investment. Moreover, in today™s competitive environment where the bound-
aries are shrinking and spillover effect is leading to increased customer awareness can
a manufacturer afford not to cater to customers what they want?
However, the company should not ask themselves if they want to adopt this approach?
What they should wonder is if in today™s progressively liberalizing developing econo-
mies, where cross-border competition is educating customers about their powers, can
they afford not to adopt this approach?

Chen, J. (2002). Logistics Customer Service. APO Seminar on IT Application for Logistics
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Boston Conference on Distribution, Harvard Business School.
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Web: www.bctim.wustl.edu/articles/pdf/CRM-Success_Stories.pdf.
Deck Stewart. (2001). CRM Made Simple. CIO Magazine, September 15, 2001. (Electronic
Version). Retrieved May 13, 2003 from the World Wide Web: http://www.cio.com/
Deck Stewart. (2001). “What is CRM?” Retrieved May 13, 2003 from the World Wide Web:
Drucker, P.F. (1962, April). The Economy™s Dark Continent. Fortune, 65(103), 265-270.
Gattorna, J.L. and Walters, D.W. (1996). Managing the Supply Chain. London: MacMillan
Gemmy, A. (2003). Module 8: Distribution. Retrieved May 20, 2003 from the World Wide
Web: http://ec.mvc.dcccd.edu/IC/module_8.htm.
Heskett, J.L. (1973, March-April). Sweeping Changes in Distribution. Harvard Business
Review, 51(2), 123-132.
Kapoor, S. and Kansal, P. (2003). Basics of Distribution Management: A Logistics
Approach. New Delhi: Prentice Hall of India.
Kapoor, S. and Purva, K. (2003). Marketing logistics: Supply Chain Approach. New
Delhi: Pearson Publication Private.

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380 Kansal & Arora

Kotler, P. (1998). Marketing Management. (9th Edition). New Delhi: Prentice Hall of India.
Levitt, T. (1969). The Marketing Mode. New York: Tata McGraw Hill.
Raut, P. (2002). Ensuring Customer Delight. Retrieved May 13, 2003 from the World Wide
Web: www.crmguru/features/2002a/0124pr.html.
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International Journal Physical Distribution and Logistical Management, 21(1),
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62(3), 119-127.
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Across the Firm. New Delhi: Tata McGraw Hill Publishing.

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permission of Idea Group Inc. is prohibited.
About the Editors 381

About the Editors

Harbhajan S. Kehal is a Senior Lecturer in Economics at the University of Western
Sydney, Blacktown Campus, New South Wales, Australia. Previously, he completed his
Ph.D. at the University of Western Australia, Perth. The author of chapters in various
books, which have been published in Australia and other countries, Dr. Kehal has
received international recognition for his achievements in various facets of life. A well-
travelled person, he has been a Visiting Fellow and Visiting Professor in many overseas
Universities and Research Institutions. His research interests center around digital
economy, foreign investment in developing countries, economic relationships of Aus-
tralia with Japan and other countries. An Academician, Researcher and Philanthropist,
his name has appeared in Australasian Who™s Who since 1987, Who™s Who in the World
since 1995, Directory of International Biography since 1996 and many other publications.
He is an Eminent Fellow of the American Biographical Institute. He is a member of a vast
number of economic societies and is well known in the contemporary economic world for
his leadership and active participation in international conferences. His recent confer-
ence travels have taken him to Hawaii and Cancun in Mexico, among his trips to Asia and
the US.

Varinder P. Singh was born in 1974 in India and earned a Master™s in Commerce,
specializing in Information Systems from the Faculty of Management, the University of
Western Sydney, Australia (2002). Earlier he received his bachelor™s and master™s
degrees in Biochemistry from Panjab University, Chandigarh, India. Being exposed to the
field of digital economy during his commitments with this book, in the future he intends
to pursue research in the less explored field of health economics emphasizing on the
financing and delivery of medical services, with extensive emphasis on federal and state
legislation of current policy issues.

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permission of Idea Group Inc. is prohibited.
382 About the Authors

About the Authors

Keshni Anand Arora has an M.Phil. from Panjab University, Chandigarh, and an M.B.A.
from the University of Western Sydney. She is currently working in Indian Administra-
tive Services (IAS-1983 batch). Her experience portfolio includes supply chain manage-
ment for Directorate of Supply and Disposal Haryana, Administration of Haryana
Industries and strategy formulation for development of rural India. She has presented
papers in these areas both at the national and international level.

Parthasarathi Banerjee is a Scientist with NISTADS (National Institute of Science,
Technology & Development Studies), New Delhi (India). He has research interests in
the areas of economics of technological change, innovation studies, strategy research,
ethical and other issues. As visiting faculty, he teaches several papers relating to
strategy, ethics and business process. He has nine books and several papers, has
organized conferences, advised industrial firms and has undertaken several sponsored
research projects. Currently, he is working on knowledge economy and his forthcoming
book from Palgrave-Macmillan (London) is Indian Software Strategies, 2004.

Saundarjya Borbora is presently Head of the Department, Department of Humanities and
Social Sciences, Indian Institute of Technology Guwahati and is an Associate Professor
in Economics. Dr. Borbora completed a Master™s in Economics (1983) and then completed
a Ph.D. (1993). Dr. Borbora started teaching in 1985. In 1995, Dr. Borbora was selected
by the Government of India on deputation under Colombo Plan to work in Bhutan, and
served for about three years. In 1998, Dr. Borbora joined IIT Guwahati, has published
a number of papers/chapters at national and international levels, and has attended
conferences and seminars in India and abroad.

Stanley D. Brunn, Professor of Geography, University of Kentucky, Lexington (USA),
has wide interests in human geography. These include electronic human geographies,
innovative time-space mapping, visualization, and electronic scholarly communities and
communication. He has written chapters and edited books on e-commerce, information
and communication, political geography, social geography, ethnicity, world urbaniza-

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permission of Idea Group Inc. is prohibited.
About the Authors 383

tion, the geopolitics of 9-11, and disciplinary history. His co-edited Geography and
Technology (Kluwer, 2004) contains 25 chapters that examine how advances in various
technologies have changed the production and dissemination of geo-information. He
has taught at the University of Florida, Michigan State University, and many European
and Central Asian universities.

Narendra S. Chaudhari has been with the Division of Information Systems, School of
Computer Engineering (SCE), Nanyang Technological University (NTU), Singapore, as
an Associate Professor since December 2001. He obtained his Ph.D., M.Tech. (Computer
Science), and B.Tech. in Electrical Engineering (with Distinction) from IIT, Bombay (1988,
1983 and 1981, respectively). He has been a Fellow for the Institute of Electronics and
Telecom Engineers (IETE), India, since 2000, and member of many professional societies.
He has a varied experience in industry and R&D organizations, and had been with Devi
Ahilya University since 1988. He has been Professor of Computer Science since June
1990. He has been on various committees of the University and he had been a Dean with
the Faculty of Engineering Sciences, Devi Ahilya University, Indore (1995-1997). During
this period, the University started the Institute of Engineering and Technology (IET),
which currently offers B.E. programs in electronics and comm. engineering, computer
engineering, and mechanical engineering. He has more than 80 publications and two
books to his credit. He has successfully guided eight Ph.D.™s in Computer Science and
Engineering. He had been Chairman with the Computer Society of India (CSI), Indore
Chapter (1997-1999). He has been invited by various universities abroad to deliver
colloquium lectures/research talks, as well as teaching assignments. The list of countries
he has visited includes America, Australia, Germany, and Japan.

Alev M. Efendioglu is a Professor of Management and Information Systems at the School
of Business and Management (SOBAM), University of San Francisco (USF) (USA).
Having joined USF in 1977, he has served at various times as Chair of SOBAM™s many
faculty committees (including Peer Review and Academic Standards Committees), as
Coordinator of the Management Teaching Area, and as the Coordinator of the USF-
EMBA Program for Guangdong Enterprises in China (Hong Kong, Shenzhen, and
Guangzhou). He has extensive consulting experience and has authored two books,
chapters in two books, and articles in numerous professional publications. These include
Business Horizons, Journal of American Academy of Business, Journal of Asia-Pacific
Business, and Journal of Small Business Strategy. His research “Acceptance and Use
of Information Technology among Small Retail and Service Businesses,” was awarded
“Best Paper in the Small Business/Entrepreneurship Track” at the Western Decision
Sciences Institute, 26th Annual Meeting (March 25-29, 1997). He has also earned
“Outstanding Research” and “Service” awards from the School of Business and Man-
agement, University of San Francisco. He is a member and holds administrative positions
in a number of domestic and international professional organizations, including the
Academy of Management. He also serves as a member of the board of directors of
Ameristock Mutual Fund companies. For more detailed information on Dr. Efendioglu,
please visit his Internet home page (http://www.usfca.edu/alev/alev.htm) (developed
and maintained on an ongoing basis).

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384 About the Authors

Kai M. Grebe was born in Lich, Germany in 1976. After his school leaving examination
and military service, he took up studies in business administration at the University of
Bayreuth (German) in 1997. In 1999, he passed his intermediate examinations. His focus
as Research Assistant at the Chair of Economic Policy is primarily on Information
Management. In 2002, his diploma thesis interrelates specific aspects of electronic
commerce to transaction cost economics. At present, he is about to complete his degree
and intends to continue research on this subject area as an Assistant Lecturer.

Irene Henriques is an Associate Professor at the Schulich School of Business, York
University, Canada. Her research interests span both economics and management and
include the economics of R&D, industrial organization, environmental economics and
environmental management and sustainability. She has published numerous articles in
these areas. In 1997, she was the recipient of the Schulich School of Business Research
Award. In 2003, she was won Best Paper Award for the Strategy Division of the
Administrative Sciences Association of Canada for “Stakeholder Influences and
Sustainability Practices in the Canadian Forest Products Industry.” She is currently a
member of the advisory board for the Haub Program in Business and Sustainability and
is a member of an OECD working group on environmental policy and firm level manage-

Purva Kansal is a faculty member at the University Business School, Panjab University,
Chandigarh (India). She has an M.B.A. from the International Institute of Management,
Himachal Pradesh University, Shimla (1998) and completed her Ph.D. from Panjab
University Chandigarh (2002). She is a co-author of Basics of Distribution Management
(Prentice Hall of India) and Marketing Logistics (Pearson Publishers). Her areas of
expertise include logistics, SCM, and marketing. She has published articles in the areas
of marketing and logistics. She is also actively involved with local industry in their
strategy formulation activities.

Yutaka Kurihara is a Professor of International Economics at Aichi University, Japan.
He was a Lecturer and Associate Professor at Koryo International College. He majors in
international economics, finance, currency integration, market integration, US-Europe-
Asia-Japan economic relationship, managerial economics, education, and digital economy.
His recent published books are, Business & Policy Design in the Globalization (2003),
Intellectual Skills for Freshmen (2003) and EU Currency Integration (2000) (in Japa-
nese). He is a member of the American Economic Association, Business & Economics
Society International, European Economic Association, and some academic associa-
tions of economics, business and education in Japan.

Milind J. Mahajan has obtained his Bachelor of Engineering (electronics) from Pune
University (1988), and a Master of Business Administration (MBA) from the University
of Indore (1993). He has more than 15 years of experience in the IT industry and he has
been Founder Director of three companies: (i) Sunind Systems Pvt. Ltd. “ Pune based
company, (ii) Mirash Infotech Pvt. Ltd. “ an Indore based company, and, (iii) Milman

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permission of Idea Group Inc. is prohibited.
About the Authors 385

Power Technologies Pvt. Ltd. “ an Indore based company. He has been involved in the
development of educational systems using Java-based web technologies, and is in-
volved in systems analysis and design, as well as monitoring implementation of
educational solutions developed by Sunind Systems Pvt. Ltd. His other areas of interest
include high power electronic circuit designs, and ERP solutions. He has been on the
board of directors of Co-operative Bank at Indore, and has been a member of the Board
of Governors, Computer Society of India™s Indore chapter.

Simon Mowatt is a Senior Research Lecturer at Auckland University of Technology (New
Zealand). He is Visiting Fellow to the Centre for International Business History at the
University of Reading (UK), has worked at the Centre for International Business Studies
at South Bank University (UK), Loughborough Business School (UK), and has been a
Professor Becinario at the Universitat Pompeu Fabra in Barcelona (Spain). He has
published in journals such as Industrial and Corporate Change and Industry and
Innovation. Technology, innovation, networks and business history are his main areas
of interest and he was awarded the 2002 IBM e-Business Conference Best Paper with
Howard Cox.

Chipo Mukonoweshuro is currently conducting doctoral research at Durham Business
School, University of Durham, UK, where she gained her M.B.A. (2002). Her research is
concerned with the internationalization of Southern African financial service firms. Her
professional experience includes employment with PricewaterhouseCoopers in Southern
Africa as a Management Consultant, helping key high profile clients to maximize their
business performance by integrating strategic change, process improvement and tech-
nology enhancement solutions. She has also worked for the Merchant Bank of Southern
Africa, participating in various mandates including capital reconstructions and

Donghyun Park, Associate Professor, has been with Nanyang Technological University
in Singapore since June 1995. He has a Ph.D. in Economics from UCLA. His general
research interests include international economics, development economics, political
economy, applied microeconomics, and East Asian economies. His specific research
interests include East Asian financial reform and restructuring, international income
distribution and convergence, and the effect of scale economies on firm behavior and
international trade. A/P Park has published his work extensively in refereed international
journals and presented his research at many international academic conferences. He has
taught economics courses at both the graduate and undergraduate levels.

Kyonghwan Park received his M.A. in Geography Education from Seoul National
University (2000) and is currently a doctoral candidate in Geography at the University
of Kentucky (USA). Drawing on poststructuralist studies of the Internet and cyberspace,
he is interested in cultural geographies of contemporary digital economy. He is complet-
ing his doctoral work on the development of South Korean transnational economy and
its relation to urban spatial changes in the Asia-Pacific region since the 1997 Asian
financial crisis.

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386 About the Authors

Thomas Pfahler was born in Treuchtlingen, Germany in 1965. After his schooling he
attended the University of Bayreuth (1984-1990) and graduated in Business Administra-
tion and Political Economics. His main research interests are in the labor market,
transaction cost economics and growth theory. He became an Assistant Lecturer at the
Chair of Economic Policy (1990) and was awarded a Ph.D. for a thesis on hysteresis and
unemployment policy four years later. In 1999, he qualified as a university lecturer and
was then appointed assistant professor. To date he has published several papers,
textbooks and a monograph on human capital and efficiency.

Sougata Poddar is on the faculty of Economics at the National University of Singapore.
He has received his Ph.D. from CORE (Centre for Operations Research and Economet-
rics), Belgium. His areas of research interest include industrial organization, imperfect
competition and applied game theory. He has held positions as Research Fellow at the
Institute of Economics, University of Copenhagen and CORE, Belgium. He has taught
at the Indira Gandhi Institute of Development Research (IGIDR), Mumbai. His has written
and co-authored articles in the International Journal of industrial Organization,
Economic Theory, Review of Economic Design, Economics Letters among other publi-

Joanne Roberts is a Lecturer in International Business at Durham Business School,
University of Durham, UK. Her research interests include knowledge intensive services,
new information and communication technologies and knowledge transfer, and the
internationalization of services. She is author of Multinational Business Service Firms
(Ashgate, 1998), and co-editor of Knowledge and Innovation in the New Service
Economy (Edward Elgar, 2000) and Living with Cyberspace: Technology and Society in
the 21st Century (Continuum, 2002). She is also co-editor of the new journal Critical
Perspectives on International Business, published by Emerald, which will be launched
in 2005.

Fjodor Ruzic is Doctor of Information Sciences at the University of Zagreb where he is
Lecturer in New Media and Interactive Multimedia Systems. He is currently at the
Croatian Government Office for Internet Infrastructure Development as a consultant in
information-communications systems, interactive multimedia, and information services.
His recent research activities are covering the integration of information content and
integration impacts on development of information theory and practice. He has worked
in information sciences since 1975, and as an active participant, he is a member of many
national and international bodies relating to telecommunications systems integrity,
information resources management and multimedia system environment. He was worked
on both research and implementation sides of networked databases, educational mate-
rial, and digital media. He published more than 110 scientific and research papers in
various international journals and he is author of four books dealing with graphical user
interfaces, multimedia and the Internet.

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permission of Idea Group Inc. is prohibited.
About the Authors 387

Perry Sadorsky is currently an Associate Professor in the Schulich School of Business
at York University in Toronto (Canada). He has previously taught at the University of
California, Riverside, and has been a Visiting International Scholar at the University of
California, Davis. He specializes in modeling, simulation and forecasting in economics
and finance. His research interests include financial markets and the economy, energy
trading and risk management, corporate commitment to the natural environment, and
globalization, technology and international trade and finance. He has published exten-
sively in these areas. He is a member of an OECD working group on environmental policy
and firm level management.

Gary P. Schneider is an Associate Professor of Accounting and Information Systems
at the University of San Diego (USA), where he teaches courses in electronic commerce,
database design, supply chain management, and management accounting. Gary has
published more than 40 books and 70 research papers on a variety of accounting,
information systems, and management topics. His books have been translated into
Chinese, French, Italian, and Korean. Gary™s research has been funded by the Irvine
Foundation and the Office of Naval Research. Gary is a licensed C.P.A. in Ohio. He holds
a Ph.D. in Accounting Information Systems from the University of Tennessee, an M.B.A.
in Accounting from Xavier University, and a B.A. in Economics from the University of

Sushil K. Sharma is currently Assistant Professor in the Department of Information
Systems and Operations Management, Ball State University, Muncie, Indiana (USA). He
received his Ph.D. in Information Systems from the University of Pune. Dr. Sharma has
a unique distinction of having been conferred two doctoral degrees. Prior to joining Ball
State, Dr. Sharma held the Associate Professor position at the Indian Institute of
Management, Lucknow (India), and Visiting Research Associate Professor at the
Department of Management Science, University of Waterloo, Canada. Co-author of two
textbooks in IT (Programming in C and Understanding Unix), and four edited books,
Dr. Sharma™s research contributions have appeared in many peer-reviewed national and
international journals, conferences and seminars™ proceedings. Dr. Sharma™s primary
teaching and research interests are in e-commerce, networking environments, network
security, ERP systems, database management systems, information systems analysis &
design and knowledge management. Dr. Sharma has been a reviewer and a special editor
for many renowned journals in information systems area. Apart from teaching and
guiding students for various innovative IS related topics, Dr. Sharma has wide experience
of consulting in information systems and e-commerce area, network security and has
served as a advisor and consultant to several government and private organizations
including World Bank funded projects. Dr. Sharma has also conducted a number of
Executive Development Programs for corporate world and Government organizations on
e-commerce, Networking Environments, and database-related subjects.

Helen Thompson is Manager of the Centre for Electronic Commerce and Communications
(CECC) at the University of Ballarat, Australia. Through education, training, research and
consultancies, CECC promotes the advancement of electronic commerce, particularly

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permission of Idea Group Inc. is prohibited.
388 About the Authors

through its practical application. Ms. Thompson has extensive experience in regional
development and in managing portal and web-based development projects. In her
doctoral research, Ms. Thompson has examined the concept of rejuvenating and
sustaining regional and rural communities. She has also explored how community
informatics initiatives can be developed in different regional and rural contexts. Ms.
Thompson has contributed chapters in several books, published refereed articles and
conference papers, and authored a number of reports in her areas of research interest
which are primarily related to the role of clustering and of information and communication
technologies in a regional and rural development context.

Sunil S. Umrani has obtained his Bachelor of Engineering (electronics) from Pune
University (1988). He was actively involved in engineering education at Maharashtra
State where he worked in the Vishwakarma Institute of Technology, one of the engineer-
ing colleges, as a Lecturer from 1989-1995. At this institute, he has been the recipient
of the Best Lecturer Award (1993). From 1995-1997, he worked with a software consultancy
firm, ATIC, Pune. Bringing together the unique experience in the field of engineering
education as well as web-based solutions, he has been involved with conceptualizing
the web-based portal “engineeringcampus.com” since 1998. Currently, he is CEO of
Sunind Systems Pvt. Ltd. (India), a Pune-based company having a main focus on web-
based engineering education, specially geared for requirements of thousands of engi-
neering students in Maharashtra State in India.

Vincent F. Yip is an International Lecturer and Consultant with wide global experience
and contacts. He received his Ph.D. in Materials Science (USC ™73) and M.B.A. (USD ™76).
He was the Chief Scientist and Administrator of the Singapore Science Park (1980-1989)
and served as Singapore™s Deputy Ambassador to the EC (1989-1991). He consulted in
China, the US, Europe, Mexico and Egypt for clients such as World Bank, Asian
Development Bank, and UNDP. He was awarded the prestigious French Government
Decoration Palmes Academiques in 1989 for important contribution to France™s scien-
tific/technology fields. Vincent F. Yip has been a Visiting Professor at Northwestern
University™s Kellogg Graduate School of Management and Adjunct Professor at Qinghua
University and the University of San Francisco. His teaching and research fields include
technology policy, cross-cultural management, international talent flow, product man-
agement and project management. He is a sought-after international speaker and has
written numerous articles for magazines and business journals, and is the author of three

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permission of Idea Group Inc. is prohibited.
Index 389


Baudrillard, Jean 288
Bauer 141
academic publishing 165 biometrics 121
access to government 218 borderless economy 3
advantages of digital cash 88 bounded rationality 149
advertising revenue model 161 branded manufacturers 142
advertising-subscription combination broadband 291
model 162 BTX 68
advertising-subscription combined building regional capacity 218
revenue model 162 bundles 160
affirmative act 114 bundling 13
Africa One 261 business circuits 22
American depository receipts (ADR) 46 business functionality 169
AOL-Time-Warner 141 business models 99
application logic 169 business processes 62
Ararat Online 224 business transactions 22
audio recordings 155 buy-side procurement 375
Austrian theory 21 buyer power 142
authentication 111
automatic teller machines (ATMs) 261
cannibalization 161
capital asset pricing model (CAPM) 44
bank transfers 63 capital cities 200
banking in Africa 254 case studies 217
barter strategies 157 Casson 149
batch deliveries 143 certificate of deposit (CD) 87

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permission of Idea Group Inc. is prohibited.
390 Index

chilled ready-meals 144 customization 361
classified advertising 163 cybercommunity 300
classified advertising sites 163 cybercrime 107
closed loop transaction 86 cybersecurity 107
Coase transactions 27
collaborative relationships 149
communities of interest 218 data entry 242
community-building activities 223 data warehousing and mining 138
community empowerment 217 delivery of banking services in Africa
community informatics initiatives (CI) 259
217 demographic information 161
community-level impacts 13 Dennis and Future Publishing 140
community portals 220 deposit currency 87
competition authorities 142 desktop publishing systems (DTP) 140
competition commission 142 development of e-commerce 273
competition in the digital age 137 dhabas 240
complimentary assets 148 differential pricing 157
computer games 155 diffusion rates 72
computer kiosks 240 digital brands 137
consignment & freight agents (CFA) digital cash 84, 85, 86
369 digital cash system 89
consumer 275 digital certificate 113
consumer behaviors 278 digital contents 286
consumer-driven competition 136, 139 digital contents industry 288
consumer-driven life-span competition digital data highways 64
148 digital divide 5, 39, 43, 238, 287
consumer-facing firms 137, 138 digital economy 1, 3, 98, 99, 136,
consumer protection 107 201, 252, 288
consumer responsiveness 142 digital economy environment 98
contact cards 118 digital engineering campus 344
contactless cards 118 digital identity 105
continuous innovation 137 digital processes 63
contract journalists 145 digital product elements 160
convergence 100 digital products 154, 155
corporate strategies 359 digital revolution 63, 99
cost model 63, 66 digital signature 110, 112, 115, 125
cost-of-equity values 39 digital signature creation 116
credence goods 156 digital signature verification 116
credit cards 279 digital solution 351
criticism 66 digital technology 137, 175, 203,
cross-border banking networks 252 252, 254, 259
cross-border expansion 252 digital world 359
“customer buying logics” 366 digitally mediated symbol 111
customer relationship management Directorate of Supplies & Disposals
(CRM) 359, 360 (DS&D) 370
customer selection 89 disadvantages of digital cash 89

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Index 391

document authentication 109 electronic tools 219
downside risk (DR) 48 electronic transactions and contracts
E EMAP 138
embedded social relationships 150
e-auction 290
empirical considerations 72
e-bookstore 290
employment ad sites 163
e-business 98
end-consumer 136
e-business legislation 106
eProcurement solution 375
e-cash 85
equity 52
e-commerce 1, 2, 4, 21, 22, 43,
equity of service 217
63, 85, 201, 274, 290
escrow payment services 104
e-commerce activity 277
European Union 202
e-commerce consumption 21
experience good 156
e-commerce development 273, 275
e-commerce in China 273 F
e-commerce in different environments
274 file sharing 178
e-learning Initiative 346 financial capital 40
e-mail service 157 financial industry digitization 91
e-marketplaces 100 financial institution management 90
e-money 85 financial instruments 155
e-privacy 103 financial management 372
e-shopping 290 financial market reports 155


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