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Assessing E-Commerce Technology Enabled Business Value: An Exploratory Research

Assessing E-Commerce Technology Enabled Business Value: An Exploratory Research
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Author(s): M. Adam Mahmood (University of Texas at El Paso, USA), Leopoldo Gemoets (University of Texas at El Paso, USA), Laura L. Hall (University of Texas at El Paso, USA), Francisco J. Lopez (University of Texas at El Paso, USA) and Ritesh Mariadas (University of Texas at El Paso, USA)
Copyright: 2003
Pages: 2
Source title: Information Technology & Organizations: Trends, Issues, Challenges & Solutions
Source Editor(s): Mehdi Khosrow-Pour, D.B.A. (Information Resources Management Association, USA)
DOI: 10.4018/978-1-59140-066-0.ch258
ISBN13: 9781616921248
EISBN13: 9781466665330

Abstract

Despite the recent demise of a considerable number of dot-coms, many traditional brick-and-mortar companies have invested and continue to invest heavily in eCommerce technologies. These companies will spend by 2002, according to one source, over $200 billion dollars on eCommerce business projects (Stuart 1999). While sizeable investments in eCommerce enabled initiatives are being made, it is extremely difficult to measure the benefits received from these initiatives mainly because of the difficulty involved in collecting data. Anecdotal evidence in the information technology (IT) productivity and business value literature suggests that these firms have achieved enormous performance and productivity gains by integrating eCommerce channels with their existing brick-and-mortar channels and thereby transforming themselves into a click-and-mortar business. Cisco Systems, Dell Computers, and Boeing Corporation are examples of large click-and-mortar organizations that have achieved a significant economic benefit by using eCommerce technologies. Cisco claims it is the single largest user of eCommerce in the world, with 90% of its 2000 sales which amounts to about $18.9 billion, coming online It also says that 82% of its customer inquiries are handled online (McIlvaine, 2000). Cisco’s revenues and net income have increased significantly since 1992 and its stock prices soared to the point that made Cisco a company with the highest market capitalization in the world in the early 2000 (Kramaer and Dedrick, 2002).

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