The Future of Electronic Commerce: A Shift from the EC Channel to Strategic Electronic Commerce

Abstract

Poor business performance and lost equity values have cast doubt for some on the future viability of electronic commerce. Most of this attention focuses on the EC channel, just one aspect of electronic commerce. The paper examines the effectiveness of the EC channel for seven types of products and infers that for four of them, the EC channel is unlikely to be the best way to sell and deliver goods and services. Much of the value to be had from this channel has already been captured and overinvestment in it may result in continued contraction. A more mature EC model, the Strategic Electronic Commerce Model (SECM), is proposed that provides a framework for balanced EC investments across the value chain and continued opportunities for EC investment.

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