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Barriers to E-business adoption

Dr. Guillermo Aranda-Mena


school of property construction and project management
Dr. Guillermo Aranda-Mena
Building Commission
of Victoria
Project Partners and
Deliverables
Literature review report
Information Booklet
Information Website
5 Case Studies:
Qld. D. of Main Road
J ohn Holland
Building Commission of Victoria
CH2 - Council Housing Melbourne
Newcastle University
Dr. Guillermo Aranda-Mena
E-business environment
Dr. Guillermo Aranda-Mena
E-business definition
The undertaking of business related transactions and
information exchanges utilising and electronic format and
environment (e-MORI 2001).
The creation of networks that act as electronic supply chain
(NOEI 2001)
The creation of commercial efficiency with subsequent
benefits for all stakeholders (Ribeiro2001).
Dr. Guillermo Aranda-Mena
Process Description
e-procurement Procuring direct or indirect projects, parts, components, materials, plant services,
experts and manpower, as well as handing added services. Disseminating and
gathering information about projects, components, services or plant.
e-transactions Transactions across the space between the buyer and seller in the supply chain
involving, projects, parts, components, materials or plant
e-logistics Delivering parts, components, materials, plant, information, energy to the point
where they are needed
e-collaboration Facilitates coordination of various decisions and activities beyond transactions
among supply chain partners. Collaboration among teams in a virtual space such as
collaborative design, planning and project management. Information across business
partners such as order, invoices or plans and specifications.
E-business process [NOIE 2003]
Dr. Guillermo Aranda-Mena
Levels of e-business adoption
by sector [NOIE 2003]
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Use Computers 85% 81% 77% 81% 85% 94% 85%
Internet connected 61% 59% 50% 51% 60% 81% 59%
Place orders using the Internet 17% 14% 7% 17% 17% 22% 20%
Make payment on the Internet 12% 11% 6% 11% 10% 15% 12%
Receive orders using the Internet 15% 14% 6% 15% 25% 15% 20%
Receive payment using the Internet 7% 8% 2% 7% 8% 8% 8%
Dr. Guillermo Aranda-Mena
Environmental Constrains / Barriers
[as by project agreement]
These relate to impediments resulting from the nature of
industrial culture,
economic structure,
societal relationships and
organisational profiles.
These have a direct impact on
Technology adoption profile
Procurement process
Nature of its supply chain and industrial organisation
Skills and organisational development
Audits of technology and skills would show readiness
to organisational uptake of e-business
Dr. Guillermo Aranda-Mena
E-business environment
Dr. Guillermo Aranda-Mena
Review of official web sites
Multiple sources both Nationally and Internationally
J ournal papers
Conference proceedings
Official websites
Review support available including case studies, how to guides
and explanations of major issues (such as security)
Government and corporate reports
ie: E-MORI, NOIE, OECD, e-Watch, PWCoopers, Eurostats: e-BI
web reference
paper reference
Dr. Guillermo Aranda-Mena
Review of official web sites
inc. sources of advice
Dr. Guillermo Aranda-Mena
Government sites
Dr. Guillermo Aranda-Mena
http://www.mmv.vic.gov.au/
Regional public sector
Dr. Guillermo Aranda-Mena
http://www.tecc.com.au/tecc/default.asp
Regional private sector
Dr. Guillermo Aranda-Mena
International
http://www.ebusiness-watch.org/
Dr. Guillermo Aranda-Mena
International
http://www.itconstructionforum.org.uk/
Dr. Guillermo Aranda-Mena
International academia
http://www.construct-it.org.uk
Dr. Guillermo Aranda-Mena
International
http://www.dti.gov.uk/bestpractice/technology/
Dr. Guillermo Aranda-Mena
Generation of a searchable index of
some 200 documents on e-business
adoption across sectors.
Academic papers
Government reports
Business reports
General articles and reports
Paper review
Dr. Guillermo Aranda-Mena
Indexing papers
school of property construction and project management
Dr. Guillermo Aranda-Mena
Content Coding
Dr. Guillermo Aranda-Mena
Content Coding
Dr. Guillermo Aranda-Mena
Content Coding
Dr. Guillermo Aranda-Mena
Barrier
Boolean
query
criteria
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Context for interpretation this column provides examples on how
individual instances from search results were contextualisedand en relevance
assessed.
Confidence /
Trust
confidence
^trust
81 662 Many privacy concerns stem from a fear of the unknown. Participation in
electronic transactions requires a leap of faith for many users. Trust is
important as customers and SMEs feel they lose control of personal
information when using electronic technologies for transactions (Brown
2002). Lack of confidence and trust contributed to 29% for non-adoption to
an empirical survey and 17% were concerned with uncertainties incontract,
delivery and guarantees (Colto2001).
IT skills
training /
literacy
Skills &
(training |
developme
nt)
84 845 PricewaterhouseCoopers (2001) found that the lack of e-commerce skills and
training were the main internal barriers to the deployment of e-commerce in
the UK consulting firms.
Cultural
change
Exact term 16 27 Improving staffs competence can motivate them to work harder and commit
to changes. New practices or changes will shake the status quo of the current
operations. Without the commitment of staff, new culture cannot be aligned
with new common goals and objectives (Cheng and Love 2001).
Business
process change
Process
change &
change
manageme
nt
11 16 Moving to digital delivery requires new specialist skills such as IT skills and
organisational change management skills and internal retraining and
updating skills in support of the business transformation (Laidlaw 2001).
Dr. Guillermo Aranda-Mena
Content Coding
Low impact (1) Value (2) Value (3) Value (4) High impact (5)
Authors comments,
observations and
opinions.
Single and multiple case
study results.
Multiple case study
results and descriptive
survey.
Statement drawn from
multiple references.
Survey with statistical
significance.
Barrier impact level relationships were then assigned to the following
four groups:
SMEs
Suppliers
Contractors
Consultants
Dr. Guillermo Aranda-Mena
Content Coding
5 Point scale using GridSuite
Bi-polar relational arrangement:
Level of impact and organisational type.
The level of impact applies in various
degrees according to organisational type.
Dr. Guillermo Aranda-Mena
Content Coding
Dr. Guillermo Aranda-Mena
Content Coding
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Dr. Guillermo Aranda-Mena
Content Coding
Cultural change
7
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100 90 80 70 60
Privacy issues
Quality of currentinfrastructure
Dissatisfied with performance
Confidence / trust
Not sure of benefit
Gov. support and information
Technological updates
Initial financial cost
Need for face to face communication
Uncertainty of financial returns
Service unsuitable for e -sale
Loss of current clients
Management commitment
Awareness
Lack of reliable measurement
Goods unsuitable for e - sale
Maintenance running costs
User authentication / fraud
Connection speed
Business process change
Reliability of current infrastructure
IT skills training / literacy
Dr. Guillermo Aranda-Mena
Outcome:
Adobe Acrobat Document Index
Industrial booklet preparation
Framework to measure against case studies
Dr. Guillermo Aranda-Mena
Industry Information Booklet
Providing insights into the current nature and use of
electronic supply within the Australian Construction
Industry [SMEs].
Aims to inform raise awareness and demonstrate the key
issues, concerns and advantages when conducting e-
business
It has a wider perspective on adopting new technologies
20-40 pages in length
Will be sent to 15,000 builders through the Building
Commission of Victoria
Dr. Guillermo Aranda-Mena
Dr. Guillermo Aranda-Mena
Dr. Guillermo Aranda-Mena
school of property construction and project management
Dr. Guillermo Aranda-Mena

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